tv Countdown to the Closing Bell With Liz Claman FOX Business May 24, 2016 3:00pm-4:01pm EDT
clinton ought to be worried about losing democrats right now to donald trump? like my facebook page at trish intel, and you can tell me what you think. i look forward to it. in the meantime, we've got heck of a going on here. up 313 points, liz is taking you through it. liz: hi, trish, the bulls are back stampeding on wall street, the final hour s&p 500 on track for their biggest gains in two weeks. and, by the way, we're hitting the highest out of seven sessions. so we are looking good up 211 points. why? well, we got positive economic data this morning adding fuel to the fire for the possibility of a june rate hike. sales of new homes surging to an eight-year high in april. rising more than we've seen in 24 years. is it time for interest rates to take a hike literally? and if so, where would be the best areas of investment when the fed decides no more head fakes? what would wilbur do? one of the gutsiest investors
on the street never want to shy away from a challenge will open his playbook and decide what he plans to do. by the way, has just named to donald trump's fundraising machine. wilbur ross here on fox business life. we'll talk to him about the markets and trump and more. the flight after the iraqi military began its assault on isis. we'll let you know how it's going. and will the u.s. need to lend a hand? and two secretary of state assessments up to the minute. twitter right now spiraling out of corollas it hits a new record low and the halted stock that got investors attention. gallery chance with information on all three of these names. less than an hour left, the bulls are on the run so let's start the countdown. ♪ ♪ . liz: okay. breaking news. you could call it a slight stabilization but the floor
dropping out from under twitter, even after the little bluebird announced today that it would drop video and photos from the 140 character limit. so arguably people would have loved that. but investors did not. the stock is getting slammed. now, just after the opening bell, twitter hit a record low of about $13.72. right now you can see it's up off that floor. but still just at $14.07 still down about two and a third percent. this as other social media names, i was checking facebook and groupon, they are moving higher. and analysts, downgrading it from a sell to a neutral, so that stock not doing well right now. rejected, turning down buyers take over offer, the american seed maker says it is still open to talks but claims it's worth way more than $62 billion. right now shares are still moving higher by two and two-thirds percent. probably on the belief that buyer might continue to come back with a better rate here. right now buyer is moving
higher by three and a third percent. and gopro stock suddenly waking up. the wearable camera company getting a caffeine boost after agreeing to a partnership with energy drink maker red bull. now, if you look at shares, you would think wow this is great. it's up five and a quarter percent. well, that's great if you bought it in the last week. but this was a $65 stock this year. it has been slashed some 90% from all-time highs. standing at $9.75 right at this moment. the dollar, by the way, hitting an eight-week high against the euro today as expectations continue to rapidly grow that the federal reserve could raise interest rates sooner rather than later. right now fed fund futures indicating there's a 36% chance of a june rate hike. by the way, a week ago monday, that stood at 4%. so how are the experts looking at this and playing with it? we'll talk to billionaire wilbur ross in just a minute. and of course we're looking at tim anderson at nyse.
is this a great housing number we got? good home sales for these brand-new homes or is it the belief that, you know, what? good news is actually good news today. we're fine with a quarter rate hike in june. >> you know, liz, it's pretty much everything. you've got a number of different data points and pieces of information coming from different directions. the housing sales certainly is a potentially a really big deal for the economy. because so many other jobs ripple through the economy. when the housing sector really gets going including plumbers, electricians, random carpenters, you see it a lot more in the economy than you do in the stock market because so many of the housing stocks really aren't that high cap issues. but the banks are doing well on the stronger dollar. and just tech is having a really good day up 2%. the only real signs of weakness some energy stocks that had really strong runs
the last couple of months. and the metals and minors. liz: let's go to energy, elliott. you continue to say what actually i personally believe and that is there's just too much supply. but this morning oil was down. it suddenly reverses, it's up marginally at the moment. but this unbelievable excess, tomorrow we're getting the inventory numbers. what are you expecting tomorrow and what do you think oil does? >> you know, liz, last week we looked at crude, and it was right around here. we see the same thing. there's plenty of oil and still people looking for a reason to rally, and they're still itching to sell as much as they can and everybody else is looking to sell it. the way i see crude, it's just not going anywhere. we're right where we were last week, and we're going to be right where we were -- liz: you know, i agree, the iranians said we're not in it to make anybody at opec happy. we're going to pump more and more, at 2 million barrels per day today, they want to go to 2.2 million barrels by
midsummer. we were talking on the show and one of the experts said, no, that's not going to happen. they don't have the ability to pump that much. sounds like they do. >> i can't speak to that. it seems like they have the capacity to pump the oil. another to look at is natural gas, i would keep an eye on that. liz: keep it cheap. my house is on natural gas so is my generator. dow is up 218 points. what do you think continues this as a driver going into the long hollywood weekend here? do people go in long, short, or neutral? >> probably not short. you know, you're going to have some lighter volumes going into the end of the week that you typically have. although we are going to get the first provision of q1 gdp on friday morning. liz: and janet yellen speaking on friday morning. >> that's correct. people think maybe there's not
going to be a lot of policy involved in that speech, getting an award up at harvard. we've got plenty of other fed speakers tomorrow and thursday i believe. so clearly the -- any hints we get from the fed on the rate hike, the market would love to absorb. but right now, the market is cooperating with the fed perfectly. they love to hike when the liz: . is acting well. . liz: well, i can tell you, i'm sure a lot of our viewers were looking at the intraday for the nasdaq. it is unbelievable. if you look at the nasdaq, it is jumping pretty exponentially right now. and you just looked at the percentage names. zilinks is jumping and also western digital so anybody in the hard drive or solid state is very interesting right now and the nasdaq is something to keep an eye on because that is looking very healthy right now as is the s&p up 27 points.
tim, elliott, great to see you. thank you so much. >> thank you. liz: to politics, hillary clinton has taken the stage, about to in commerce, california ahead of the state's crucial primary, that's just two weeks from today. this is hillary clinton turned down a fox debate with competitor bernie sanders who said sure bring it on. hillary's communication director wrote we believe hillary's time is bess spent campaigning and meeting directly with voters across california and preparing for a general election campaign that will ensure the white house remains in democratic hands. let's bring in democratic strategist joe and fox news contributor along with executive editor of weekly standard fred barns. you know, i could tell you, gentlemen, grand announcements made in the past to come back and bite you. hillary clinton saying you know what? i'm looking ahead, i'm going to do that. but, joe, she had said back in 2008, we dug this up. you have to be willing as a candidate to debate any time,
anywhere. could the refusal today end up hurting her? >> no. this is done. this race is done and what they have decided is they're moving forward because there's no statistical possibility that bernie sanders can win this. in fact, she could have this wrapped up with the amount of delegates needed by the time new jersey polls close and even before california closes. so as she and her team has looked at the field, they realize the fight ahead of them is donald trump. it's time to get started on that. she's been in that mode in transitioning in that mode for a couple of weeks now and good on her. that's what she should be doing. liz: okay. conventional wisdom, i would agree with you. but, fred, you still have this -- it's derogatory to say a gnat flying around, but something in the form flying around bernie sanders. he's walking this back, by the way, at this hour. but he said that the convention would be quote messy. now, you could interpret that different ways. democracy is a messy process or violence gets messy.
all right. has here's how i interpret it. i think what he's using is his leverage. you know, here, his campaign's on a roll. hillary's is spurting. she's going to wind up with the nomination anyway, but she doesn't look good. everybody acknowledges that she's a terrible candidate, a bad speaker. i think she ought to have a debate. that's one thing she does well. she's a tough debater. very smart, knows the issues as well as think about anybody. but at the moment campaign winning primaries, bernie sanders has some leverage. and is starting to pay off, and he was just granted a whole bunch of seats on the platform is committee and then he'll have some impact on the platform, so there's no reason for him to drop out. liz: let me jump in here because donald trump would love for him to remain in. but donald trump has his own issues. does he not, joe? you now have this primary coming up on june 7th. it's not just california. new mexico is in there too and new mexico's government --
governor susana martinez has not yet endorsed donald trump, so she joins the paul ryan group here in saying. >> yeah. liz: you know, not quite there. so they don't like certain things about them and they're not ready to jump in just a few months from the convention. >> yeah. this is amazing to me that party leaders are not endorsing the members to pick as their nominee. this is very uncommon. if paul ryan was to endorse donald trump, it's not a big story. paul ryan is not going to endorse hillary clinton. the fact that paul ryan and the governor of new mexico are sitting this out are very bad optics for donald trump, and he's got to do some repair modes, the problem is he's the antiestablishment candidate. he's been railing against these people for months. if you want to talk about words that are coming back to bite somebody, they have been going after trump, including the governor of mexico. don't forget. she's a big rubio endorser,
went after trump. and now has to eat those words now. liz: well, yeah. believe me. a lot of people eat words in politics on both sides. >> all the time. liz: because they have to. but -- >> people in journalism eat words. liz: indeed or they retract. they use retraction. but looking at donald trump as he continues to move forward and make pretty grand comments, he was taking on the climate change people and. and you see the cover of the daily news with the headline earth, wind, and liar. because it turns out a golf course that donald trump owns in ireland has applied for a permit to build a wall -- yes, can we hear an echo here? build a wall to prevent the rising seas from encroaching on the golf course. and the rising seas, the trump organization attributed to not just climate change -- they
wrote global warming in the permit. so, again, the hypocrisy. but what does donald trump do about that or just keep forging ahead? >> i think he keeps forging ahead? hypocrisy? who cares about hypocrisy? it's not a big factor in this rarity. there are people hanging back. joe's right. paul ryan is and so is the governor of new mexico. i think they'll get in line. but trump has done very little for them. started to do some stuff for paul ryan. the best thing trump has done is actually started being nice to some of his critics in the republican party instead of pounding them. >> this is how it goes in politics they move on and join hands. joe and fred barns, thank you. if you could reach over and join hands to your respective cameras, that would be great. because it was a great segment. while we were talking, the dow hit a high up 227 points with
the closing bell just 47 minutes away. we're watching that and electronics retailer best buy, i guess the day can't soon end enough for that stock. despite strong online sales in the second quarter, shares tumbling after the home of the geek squad issued a much lower than expected outlook disruption in supply due to a japanese earthquake that also cost sony on the production front. that's to blame. so as we look at best buy shares, they're currently falling at the moment, down 7.33%. and in the broader market, been more than a year since the last 52-week high we saw. the all-time high and not this 1995 has a bull market gone a whole year without making a new high. what kind of signal is that? a bad one? what would wilbur ross do? the billionaire investor standing by to tell us all of his latest investment moves. just been named donald trump's big fundraising committee. we'll ask him how he's going
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groundswell movement to the upside and this is the biggest gain since march 1st. so stocks are rallying big time as we head to the close. also in rally mode, the homebuilder crushing at expectations and not a one-shot deal. third straight quarter of revenue gains surging home sales, higher housing price, another sign of steady growth in the u.s. housing market along with today's booming new home sales report for the month of april up 17%. toll brother shares up 8.5%. looking pretty good. okay. so you have a lot of cross currents here. you have good data, you have the if he had certainly on the horizon. so what do you do with the money that you might have in your portfolio? follow the smart money and ask what would wilbur do? the markets may be rallying today. but, again, it's been more than a year since the dow hit the record high. same with the s&p 500. so what are the billionaires doing? wilbur ross joining me now on a first on fox business interview and the breaking news with you, wilbur, you were just announced as a
presidential trusty on donald trump's victory leadership team. which, to me, is a fancy way of saying is you've got to raise a billion dollars for his presidential campaign; right? >> oh, i think he's going to run a low budget campaign just like he did before. but there will be more money needs for organization and all the various states. and the committee's going to try to do whatever it can to help him achieve his victory. liz: he says he can raise a billion. do you believe that? >> i wouldn't doubt it. look at how much bernie sanders has raised in little tiny amounts from young people. liz: is that how you guys will go? is that a strategy where you'll ask for, hey, whatever you've got underneath the sofa kind of thing. >> well, i think everybody has their own means. i'll get stuck more than the average person. liz: just how people say taxes should go. even donald trump.
i have to ask, the wealthy families, i'm thinking the rickets family or the coke brothers who have not yet committed, they're giving their money to smaller races. they are not sold on donald trump right now. >> well, they're certainly not sold on hillary clinton. i think what the cokes have always done is be in the senate races. if you look over the years, that's been their biggest single focus. so i don't think that's that surprising. what i am surprised is it has taken so long for the republican establishment to catch onto the fact he is going to be the candidate. he's the only candidate, and i don't understand, unless they want hillary clinton to win, why they wouldn't support him liz: does it back and forth you or give you pause perhaps? because you are an investor who goes into whatever country you see as an opportunity that he has called for tariffs, trade tariffs.
how would that affect your personal investments and do you think that's a problem with you? or would you like to talk to him about it? maybe change his mind? >> well, i think the front-page story in today's washington post is a more important explanation of trump's appeal. and it made the point that people in a town i never even heard of called syria, virginia, were polled about his attitude on muslims. and, well, we may not agree with the particulars, they said it's the red reich that we like. the it's the direction, the attitude, rather than the exact policy things that he comes up with. i think what he says he's going to raise the tariffs a lot, what he's talking about is a negotiating chip to resolve some of the trade deficits we have. liz: to the markets. you ventral no problem answering what i like to call distressed calls.
you did it with coal, you made a fortune, you did it with steel, the ireland banks, you were able to make real coin off of that. what distress calls do you see right now that might look interesting if not now down the road. >> well, the thing we're looking a lot on a very large transaction is not a distress company, it's one that's actually improving. we're acquiring a large chemical distribution business into wl ross holding. so it's a little bit of a departure for us, but it's a company that has some more work to do. liz: that's something, like, i'm just going to throw this out there. venezuela. venezuela right now feels that it's at the crux of a major flare-up tipping point something is going on there. you see rise in the streets, you see people who would love to run against the current administration, socialist administration, and you have capitalism down for the count. coca-cola announcing it has to shut down operations there. bridgestone getting out,
coca-cola says there's not enough sugar in that nation. >> right. liz: would venezuela ever look interesting to you? >> sure. there's no inherit reason. liz: sure? >> that venezuela shouldn't, i a successful country. it just needs a change in management. a very radical change in management. liz: so if you saw a new government go in, you would consider -- >> oh, absolutely. because it has natural resources, it has huge oil reserves, it has all kinds of good things. and so i think venezuela could be turned around. but it has to take a popular uprising to do it. i think the sad thing, remember after the last regime came in, the military put them out briefly and then somehow let them back in. and i could never figure out why they did that. it's sad for the country, and it's very sad for the people of venezuela. liz: great to have you. thank you so much. when you're ready to dive into venezuela, come to us first and tell us. >> okay. liz: because that looks scary to me.
but that's how he's made his billions, folks. wilbur, great to see you. >> good to see you, liz. liz: we want to take you to commerce, california, where hillary clinton is taking the stage right at this moment. breaking news, as she speaks, she's doing quite the tour of the state of california in advance of the june 7th california primary where a bunch of other states are in there together as well. you have supporters there behind her. she still has to fight a two-prong battle against both bernie and against donald trump. i mean this is a tough one, wonderfu wilbur, don't you think? >> well, she's got problems as a candidate within her own party. that's a very serious problem. liz: yeah, it seems like she would love to just go head-to-head nose to nose against donald trump, but she's got bernie sanders still right there. he's also campaigning in california. dow jones industrials hitting brand-new highs. i think about two or three times while wilbur and i were
. liz: we've got a fox business news alert right now. the city of chicago has finally reached a pension deal with laborers. this is an agreement that couldn't come soon enough as the city's total pension debt has surpassed a record $30 billion. we've got jeff flock standing by in chicago with the latest. i guess this is for one specific pension fund but does it pave the way for settling all the debt? >> i don't think it necessarily does, liz. this is the smallest of the pension funds. you know, we had the big protest here a couple of weeks ago in chicago people saying, listen, we've got to raise taxes here because we need more revenue. i think they do need more revenue for these pensions. take a look at the four pension funds.
there are four municipal pension funds in the city of chicago. labor webs that got fixed yesterday. that's not a total done geological diehl but in the best shape. about 50% funded. municipal workers, that's the third one, and police and fire worse than that. the biggest toll, though, is in municipal workers fund. that is -- well, it was 7 billion in the hole. well, now new accounting rules this year which require municipalities to not be so rosy in how their investments are going to go down the road. well, that means the fund is now $18 billion in the hole. we say these numbers but i don't think they mean anything to anybody. let me approach it from this standpoint. what would it cost each individual around the country to cover that shortfall? in alaska, every man, woman, and child would have to contribute $20,000 in order to cover the short call after all. in illinois about $15,000. can it -- nebraska is actually
in the best shape, liz. you would only have to pay $386 in nebraska to cover the shortfall there. almost all of the nation's pensions, municipal pensions are under water. not a pretty sight. liz: not at all. and you worry about people who paid into it and now be told it's just not there. jeff, thank you very much. i suppose it's a start. looking at dow jones industrials that are just off highs of the session. up 254 points we're getting real rock 'n' roll activity in the last couple of minutes. you guys need to stay and watch with me. because at this moment the dow is up 2731 points. again, great new home sales for the month of april. that's powering it. and maybe the belief that this economy as wilbur ross just said can with stabbed a quarter of a point rate hike if that were come to pass in june. and let's get to today's technology, tech on a tear today. lori rothman has more on a raid at's headquarters in
france. what happened, lori? >> that's right. dozen of investigators swooped into google's offices in central paris. the move escalates where french authorities are trying to recover over $1 billion from the tech giant. now, the prosecutors do say the raid is part of a annual discovered probe. a google spokesperson says they are cooperating with french authorities. take a look at facebook shares. face displays trending topics after a report alleged that they suppress conservative stories. an internal investigation found no political favoritism so they're dropping the release on news outlets to help what gets posted as a trending topic on the social media's giant's website. all right. let's have a look at this stock. the facebook having a pretty good day. up 1.3% in the broad market rally. the countdown with the closing bell with liz claman will be right back. stick around it's more than a network and the cloud.
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. liz: we just pulled back by 25 points off the highs of the session but still up about 225 points for the dow jones industrials. big market rally happening right now. you see the s&p, the nasdaq, the russell, the dow, everything seems to be up except gold, which is pulling back by about $22 at the moment. we have this now. breaking news. egyptian authorities are now at this hour arguing with each other as they try to discredit a key theory regarding exactly what happened to egypt air flight 804. they have found lots of debris. but egypt's head of forensic after looking at the debris is shutting down any discussion of an explosion having taken place onboard the plane before it crashed. this is in direct contradiction to an earlier
report made by one of the country's senior forensic investigators. egypt's forensic medical department posting this statement on its facebook page stating quote everything published about this matter is completely false and mere assumptions that it did not come from the forensics authorities. so there appears to be real verbal war going on here at the moment. we'll keep you posted. we have more breaking news, the last few minutes on capitol hill, take a look at the live pictures off the intense talk on capitol hill. this is the house foreign affairs subcommittee and investigating in essence to what degree saudi arabia has been cooperating in u.s. counter terror measures and perhaps more importantly what role if any the saudi arabian kinked may have played in financing the 9/11 terrorist attacks. former 9/11 commissioner tim roamer is at the hearing. going to serve as a witness with, we're watching it closely. but they as some lawmakers
call for a declassification -- and we've talked about it, a 28 page report from the 9/11 commission report that some believe tie the saudi government to the attacks. also comes on the heels of the u.s. senate that would expose the house to legal claims from family members of those who lost loved ones on 9/11. but the saudis have been an important trading partner for the u.s. doing more than $41 billion in trade in 2015 alone, including of course crude oil movements. we have two former officials larry to join us now to talk about whether lawsuits against the saudi kinked could potentially hurt u.s. foreign policy trade, and i think more importantly, gentlemen, any kind of relationship that we've had over the years. to you first, larry, and, by the way, both of you gentlemen very proudly served in the navy. so you know of what you speak. larry, when we look at what's going on, we could be at the crux with a very big ally,
could you not with saudi arabia? >> well, there's no doubt about it, and this is not the first time we've had problems with them ever since 9/11. because basically they didn't want us to get rid of saddam hussein because he's a sunni and they were concerned about iran. in syria, they're more concerned with getting assad than going after isis. the good news is much more energy dependent, we're not as whole to the saudis as we used to be. liz: does it look, peter, to you, that we are taking away the bridge between our two nations almost brick by brick and some of those bricks to form a bridge with iran, which is needless to say a big enemy of saudi arabia. >> yeah. well, first i think we need to see what this report says. you know, ver very few people have seen this. we may learn more from this hearing going on at the hill right now.
we want to hear what that says. but the relationship between isis and saudi arabia is important. but larry pointed out some very important facts about it and especially the energy issue. but they are a leader. they are the leading and most powerful country in the middle east. liz: uh-huh. >> and if the united states wants to have influence in that part of the world, it's hopefully going to have a positive relationship with saudi arabia. but that relationship has had its share of problems. as we all know. i don't think united states is going to build a bridge to iran because i don't think iran wants to build a bridge to the united states. we've seen in the aftermath of this nuclear deal some of the things that the iranians have said. and they're trying to take what they can. they've gotten the money, et cetera, et cetera, but i don't think that -- the current leadership is interested in reaching out to us. liz: and, larry, we need to point out something that was happening at this hour yesterday and that's the iraqi military was going to advance and try to take back. they have succeeded at this hour. this is what we're hearing.
they have succeeded in taking back parts of the isis-held city. some vigils have finally gone back to iraqi military right now. do you believe they're going to take back? >> oh, i think they will, and i think important psychologically because it undermines the narrative that they're the future caliphate. also important because it's less than 30 miles from baghdad and we know some of the car bombs in baghdad that went off actually came from there. so i think it is important, i think they will take it back. but it's not just taking it back. the question is now who's going to run it? is it going to be sunni? how are they going to divide up power and that's the key issue. liz: the age-old problem, we've got breaking market news, thank you for coming on. peter, larry, lovely to have you and, again, we do have the dow jones industrials up 229 points. we started to see some real activity about two minutes after the top of the hour. we started spiking. and if you look at intraday
charts, you can see while we were already up more than 200 points, suddenly at the top of the hour, we spiked up to about 250 points. there you see that that green dot the high of the session. and we pulled back slightly. but it is a very solid day for the bulls and the bull run. i'm going to start pulling up some of the big names that are running here. and i find it almost interesting considering that the big sector is certainly doing well. and that would be banks and of course technology. these are the big -- these are the big nasdaq leaders. you've got zilinks, western digital, vertex, netflix doing well, viacom b, so viacom, again, is this embattled name over the past couple of days but it appears right now the stock is one of the big percentage gainers on the nasdaq certainly. the one lagger here appears to be gold, down $22. but there's viacom, and you can see that it is jumping about 3.5%, perhaps some more clarity. it's been such a soap opera there over summer redstone,
the executive chair who had stopped getting paid and of course the ceo of viacom being removed from the board and certainly as a trusty. let's get to lori rothman, because you look at many of these names moving higher, everything down at the nyse. what are traders saying that is sparking the market at the moment? >> liz, i've got great news for you. server buzz. the eu -- i'm sorry out of europe, i was looking at different notes. i apologize. there was a survey taken in europe about whether or not the uk is to leave the eu and to get my thoughts organized here, and it basically suggested the result of that survey was that the uk should remain in the eu. so that was obviously very positive. so that really set the tone. and you've been talking about the u.s. housing, home sales crushed expectations. so that gave rise to the homebuilders. and you also have crude oil helping today's rally.
and then an interesting perspective as well. some of the groups that have been beaten down like technology and financials are the leaders today. which suggest many here on the floor that this rally may be in large part due to short covering. especially when you consider the fact that we're so close to a fed. and there's so much talk of late about whether or not we'll see that interest rate hike next month or in july. liz: hey, lori, i'm so glad you brought up that news. so there's a survey out, folks, that indicates that most people -- >> barrel got that out. liz: most people believe the european union will hold onto its grip with the relationship it has with the uk. and, by the way, european shares did close at four-week highs. we had in all of these -- up about 2.5% in france, the dacks up 2%, so big moves. the footsie 100 was up 100 -- >> by the way, i would say when bank stocks are up also, you do have this theory that's because they're pricing in a
fed rate increase. why is that? well, if you think about it, what banks do is they pay -- they charge for loans, and they -- they give people interest. the interest they pay out is sticky downward, it doesn't move when the fed moves. that's how they make their money. but it charges people when the fed raises rates. liz: so saviors won't get rewarded right off the bat. >> right. and that is a market play here. so i'm not -- i'm not saying janet yellen is going to raise rates. i don't know. i kind of think she won't. but when you see bank stocks in unison go up like that, there's a theory that the fed is going to raise rates, net, net, good for bank earnings going forward. liz: all ten s&p sectors including financials are higher, including energy. i want to get to phil flynn at the cme. how much can you credit oil from what do we do seeing on the screen across the equities stage here? >> i think you can credit that we have the highest close that
we've seen for the year since last october. and if you remember of course, oil seemed to be a barometer for the oil economy. earlier in the year when stocks getting hit, following the oil prices down. now that oil prices are strong, oil is back up. but i think lori hit the nail on the head. one of the biggest problems going forward was the vote. this was a big donor traders. they thought that it would be a replay of what we saw last summer when greece decided to vote to leave the eu. it put the eu back into the recession. with that risk, seemingly diminishing as time goes on, that's very bullish for our market. and now the market is looking past the fed raising interest rates at the negative stocks as a positive. because it won't impact of course the relationship between the u.s. strength and europe as much. liz: let's keep all of these voices in play here. i just want to let all of you guys know that there's not a huge amount of conviction in this rally.
as good as it looks, trading volume is trading about 16% below the monthly average. so at the moment, charlie, it's not like every bull in the world is charging off the sidelines and coming into the game. >> no. and -- you know, there's some interesting deal news out there that i think is propelling the market a little bit. we should get into -- i think there is a market -- liz: it was faulted. >> it was faulted because they -- they did a soft rejection of the deal. and this is where it gets kind of interesting particularly as a journalist. and if you're following the market. they didn't say, no, never. they said we don't think your bid is good enough. we still want to talk to you. and if you notice, the stock has been up since then. up to 109. it was up at 108 or so. liz: you look at both of the names. buyer as well. so do investors believe that monsanto will hold firm and buyer will come up in its bid? >> i think so and let me just give you some headlines out there from some of my sources. and you can play the arb if
you like. they expect to hear back from bear like a second time something, either tonight or tomorrow. they think it's going to be sweet in terms. and that's what they're looking for. they're looking for sweetened terms. they think that, you know, this thing is worth more than $122. priced at $122 based on what's going on right now in commodities, which is a depression in commodities somewhat; right? so they think they're actually worth more going forward. we should also point out that bear in the past, in these negotiations has threatened holster. okay? against mo monsanto. is it a real threat or one of the negotiating ploys? i will tell you the people inside monsanto think it's a hollow threat, there's no way -- it was purely a negotiating ploy that they won't go there. but that's some of the inside details things.
i think the problem that monsanto has is that it's hard for bayer to put a lot more money on the table. liz: we started this discussion on friday, the monsanto market cap was 44 billion. it's now standing right this second at about 47 billion. 47.7billion. >> right. and if they -- liz: and then i want to get to twitter. but go ahead. >> yeah. and if they bought the deal, it would be up to 60. it's $122 a share deal. i will say this. analysts say additional bidders, this is one of the thing that monsanto. ba commenting but these are bankers that know the bank so to speak and what they're telling me is that they are looking for additional bidders. but when you look to analysts, there are few and far between. i found -- my producer brian
schwartz asked an analyst today, could come up with one name bigger than bayer. bhss. not a german company that could diinject response. liz: and you're looking big financials among them, jp morgan, i have to ask you what do you think is worth right at this hour? >> well, i think it's a lot to do with the survey that you just talked about in terms of the thinking that great britain is not going to leave the eu. and, look, i also believe that the market looks forward, and it's looking for a second half in which the earnings picture is better than it's been for the preceding four quarters because the dollar's not as strong. oil prices are up, and comparisons are going to be much easier. so all of that combined -- and plus we've had a lot of negative sentiment this year, and i think that low volume you talked about, liz, is
reflective of a lot of negative sentiment and a lot of anxiety and a lot of doubt. that's good for a bull market. >> how about, brian, what do you think about the notion that the bank stocks are up because of a fed rate hike? it's somewhat counterintuitive, and i know it is, but i talked to a lot of people at the banks, and they say they would welcome a bank rate hike and the reason why is that spread between what they lend and what they -- and what they charge actually wide generals because they don't raise what they -- what they -- what they're paying their depositors, but they immediately raise what they charge. you know, people that are borrowing from them. >> yes. i agree with you. and i agree with what you said a little bit earlier that i don't think we're going to get a rate hike in june in front of the -- of the vote on leaving the eu. i think we're going to get it in july. >> oh, july. >> and then december. >> interesting. july. liz: and then you believe what might happen, the names that
you should say those are the ones that should be in a portfolio? can you throw out some? because our investment viewers are saying what has he got? >> sure. so stick with the highest quality banks. those are jp morgan and wells fargo. clearly the highest quality banks in the united states, if not in the globe. 3% dividend yields, very modest valuations. and combine it with another blue chip high quality company that's selling 20% off its lows and that's disney. we think those are three very good picks right. liz: yeah, they're all moving higher. jp morgan jumping about 2%. >> purely gossip. number one you hear a lot of talk coming out of viacom that sherry redstone, they want out of viacom. what i hear is that they would have less run cbs who run the whole thing. that sherry redstone gets along with him very well. and that's one bit of gossip.
the other bit of gossip is we're going to be hearing a household name once bayer mon santos gets done and his name is michael cramer. liz: and, by the way, -- not to keep ping-ponging back but this news flow is very quick, guys. if you put up cbs, which has run, cbs has outperformed -- one would argue overweight years, what viacom has done. in a very good position. in fact, you want to talk scuttlebutt, has learned that was seen at michael's restaurant. for those of you who don't know, it's where all the media titans go. >> and he probably eats there -- liz: but he was at a front table today. >> let me just explain -- liz: kind of interesting. >> as someone who has been to michaels a few times. probably there every other da d. liz: okay. i'm just saying. he wasn't hiding. let's put it that way.
>> not at all. . liz: in a good position. >> yes. and sherry red stone really likes. really despises philip. going to be controlling that company now it looks like. . liz: well, somebody has got to get control because names like fox a, which of course is the parent company of us, 21st century fox, names like time warner have outperformed viacom over one year, three-year, five-year, ten-year. >> by the way, i heard from my sources that fellowship was eating at tad steakhouse. liz: don't be dissing tad steakhouse. >> no. cavuto loves it. liz: we're up 219 points. but, folks, up 250 at the moment. lots of green on the screen. i don't know if we can switch around the camera for the moment and take a look at the hot chart. what we have here the dow -- can you switch that around?
maybe. twirl it around? dave? yeah. because i want to get this -- our heat map as we like to call it. every name but boeing on the dow 30 is moving higher right now. boeing is the only lagger at the moment. a big bump yesterday on 100-jet order for vietnam. >> did you ever notice that every time the market hits 18,000, it bounces back down. there's something world here. liz: the ceiling i guess. >> but what is this? how do you make money out of this? brian, how do you make money on this? . liz: it's hank. >> hank, i'm sorry. how do y >> so far you have to buy on the dips, for sure, if a trading focus, but we're long-term investors and we continue to favor equities over alternatives being cash and fixed income which pay you nothing to very little. and the play in equities is really a yield play. you can get better yields in equities than you can in fixed income, and that is an opportunity that for this entire
bull market. >> you're looking for dividend stocks essentially? >> absolutely. >> there you go. >> get yield -- liz: let me show you, 10-year yield 1.86. i bet you could find a host of stocks out there that look good, that have great yields. abbott labs is one of them people always tend to look at. a lot of pharmaceutical names. you have got yields certainly considerably higher than that. >> over 50% of the s&p 500 companies have dividend yields greater than the 10-year treasury. that is it remarkable given that we're in the 8th year of a bull market. >> how about that great yield on twitter? [laughter]. liz: speaking of twitter -- >> just had to throw that out there. liz: twitter hit a record low as soon as market opened it had good news that would arguably please people that use twitter like charlie. >> i use twitter all the time. how come it isn't higher? liz: you see the tiny red dot at bottom of the chart.
it tried to climb higher. it is $14 stock. it has been a tough year for twitter. high of the year was 38 bucks. this stock a year ago was 60, 70. >> all the people troll me don't have money. they don't buy stocks or advertising. i'm trolled by poor people. liz: i'm waiting for pied piper to go public [laughter]. >> i think they bought pets.com. liz: we have got 20 seconds. >> look i think you stay in diversified portfolios balanced with defense, consumer staples and health care and some offense, industrial, basic material, financials the banks but you have to have this balance. we're in a slow growth, low-yield economy and that will be continue for several years to go, to come. liz: great to have all of you. thank you so much. a win for the bulls.
a win for tech. a win for homebuilders and banks. [closing bell ring] dow high at 250. we're closing up 210 points. we'll hand the crazy day over to david and melissa. david: we'll take the crazy day. we end the day with big rally on wall street. all three major averages up more than 1%. the dow was up 250 points. i'm david asman. melissa: i'm melissa francis. this is "after the bell." we've got you covered on the markets. first here is what else we have for you this hour. david: republican voters heading to the polls in washington state today as donald trump and hillary clinton trade barb as on the campaign trail. giving us a taste how nasty thing will get if the two go head-to-head in the election. tsa benching head of security amid