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tv   Countdown to the Closing Bell With Liz Claman  FOX Business  April 24, 2019 3:00pm-4:00pm EDT

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i would pay attention to those who benefit from that. microsoft is obviously a big one, sales force is a big one. charles: thank you very, very much. dow only off 21 points. it's been a side ways session, liz claman, but you can feel investors are still just waiting for the earnings to come in. liz: they are. look at the nasdaq. while you were doing that interview it popped up into positive territory. we are watching it right now. we are also watching this. breaking news. quite a few pharmaceutical stocks need a little headache medicine after president trump just made a promise at an atlanta summit on drug and pharma abuse. he and the first lady are apparently just departing from atlanta. we will take you live to the white house to tell you what exactly the president said that's got pharmaceutical and biomedical investors turning tail. we are bumping up, as charles mentioned, against a huge afternoon for earnings. two tech titans with billionaire founders facing pretty significant controversies. facebook's mark zuckerberg and tesla's elon musk, who just, by
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the way, put out a news-breaking tweet that we are going to get for you. will their battles with the s.e.c. and privacy advocates derail the financials? not so fast. we will take it up with silicon valley super venture capitalist in a fox business exclusive. he's an early investor in some of the biggest names on the nasdaq. "countdown" has secured the video and we had to go to australia to get it. wing, google's drone delivery moonshot, gearing up to take flight here in the u.s., as its delivery program gets the first thumbs up from the faa to deliver packages to your doorstep. what we are going to do is examine the challenges of flying the friendly skies. we've got another drone ranger to talk about it. on wall street, the nasdaq in a heated battle between the bulls and the bears to make it two days in a row of record highs. consumers leading and telecom lagging right now. the dow is down 16. s&p is about flat. it could turn positive right
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now, we're watching it very closely and the nasdaq, as i said, up three points now. plus, boeing's cloudy forecast. ex-cons equal profits for stocks? and charlie breaks it on cbs' potential reunion. less than an hour to the closing bell, let's start the "countdown." liz: we have this breaking news. let's take you to vice president mike pence who is right now speaking to auto workers in detroit at motor city solutions. what he did earlier was tour a ford plant in dearborn, the vice president making a push for usmca or nafta part deux agreement. we will bring you any headlines that come in. of course, we are still waiting on congress to give its thumbs-up vote and approval of the usmca. to the markets. taking you could say a bit of a pause for the s&p but i don't know, let's keep this up and see
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if the s&p is about to turn positive. it is barely down a teeny tiny fraction. the nasdaq up three and a half, so that's two days in a row of all-time records. any gain for the s&p or nasdaq brings it into the history books once again. any gain for the tech-heavy index, that record really kind of goes for the s&p, so what we will do is watch it all hour, all this hour, to see if we can make it back into the green. okay. as we wait for that s&p, we will keep it on the lower band here, let's flip it to boeing. boeing is still reeling from the fallout of the boeing 737 max crisis. the stock is up a third of a percent, but the substance coming out of the company is worrisome. airplane maker missed on first quarter earnings since its first quarterly earnings miss since the airplane was grounded. production revenue falling 17% and revenue dropping 9% as well. boeing announced it has suspended its forecast now, so putting out how we think we're
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doing due to uncertainty surrounding the 737 max planes, and it will pause any share buy-backs. nonetheless, shares are hanging on at the moment at $375.57. that's a gain of $1.55. in just a few minutes, we will fly you live to seattle for a deeper dive into the earnings report and what was specifically said on the boeing call, because could be, who knows, a buying opportunity. but in the meantime, let's get to this. a bidding war could be on the horizon in the permian basin. we have ourselves a little war here. no counteroffer by chevron but analysts expect we will see that coming up. according to occidental's ceo, anadarko ignored two offers it made in the weeks before its agreement with chevron.
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shares of anadarko jumping nearly 12%. you would expect that. you would also expect the would-be acquirers would fall. not too big of a ding here. occidental down 1%, chevron down nearly 3%. back to the president, who just delivered this speech in atlanta. this they call the rx drug abuse and heroin summit. take a look at this. pharma names like celgene, biogen, all in the red along with other major biotech names. the difference between biotech and basic pharmaceuticals is that biotech, they are in the business of creating brand new drugs and taking real moonshots here. well, the president has proclaimed his administration has secured $6 billion in new funding to combat this overwhelming opioid crisis. the highest death rates due to opioid overdose is in the u.s., put it on your screen, do you live in west virginia? how about ohio?
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d.c.? new hampshire, maryland. those are the worst ones getting hit right now, but blake, we also know that florida has been hammered, new hampshire. this is a nationwide crisis here. we can meld it with our business audience because we've got to figure out the ones that are really at the forefront of development for this. reporter: it is an issue indeed all across the country. you talk about west virginia and ohio. the trump administration today touting those two states along with pennsylvania as states that have seen a drastic turn in opioid-related deaths. the administration said in those three states over the past 12 months, opioid-related deaths have dropped some 20%. nationwide as a whole, 5%. this is an issue that not only has been at the forefront for president trump, but also for the first lady melania trump as well, trying to get rid of opioid addiction and opioid related deaths. they went down to atlanta, georgia today for a summit there to discuss the issue. it also gave the president an
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ability to talk about the need as he sees it for a wall along the southern border and the president laid into democrats in congress. watch here. >> congress must also act to fix, however, our horrible, obsolete, weak, pathetic immigration laws. we could solve the entire problem i say 45 minutes but it could go a lot quicker than that. let's bring it down to 15 minutes. if the democrats would agree to do certain basic common sense things. reporter: the administration, the president today also using this event to highlight national take-back day which will take place on saturday. that is an avenue in which millions of americans from all across the country can take their unused prescription drugs, turn them in, dispose of them in the safest manner possible. i bring that up in part as well because kellyanne conway
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revealed earlier today that both google and twitter have been working with the administration in the recent days to highlight this initiative that is taking place over the weekend. liz? liz: blake, thank you very much. we only have two names higher, eli and pfizer. to the markets, and there's pretty much no denying that what happens after the bell in about 52 minutes will set the trading tone for tomorrow. why would we say that? because mega-names in the tech world are about to unleash their numbers and the releases could be paired with pretty wild ceo conference calls afterward. from payments giant paypal to xilinx which makes silicon chips to facebook and tesla, when it comes to the calls fleshing out the reports, the big question is will ceo mark zuckerberg be in the cross-hairs or cheered by analysts and will chief operating officer sheryl sandberg be on the earnings call. as we await that, the powerful performance the markets gave yesterday helped clock record highs as we said for the s&p and
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nasdaq. to be sure, it's driven by impressive earnings. s&p earnings were expected to show an ugly contraction of 2.4% this quarter, but we're not really seeing that. so where are all the fear factors like brexit and the u.s./china trade dispute? to the floor show traders. teddy, start with you. fear factors, are they gone with the wind? >> they are all out there, liz. as we know, markets like to climb the proverbial wall of worry. there are folks out there that are always going to tell us the glass is half empty for whatever reason, but the stock market never lies, and the market is basically telling us i think that the lines of least resistance continue to be up, not down. liz: todd, i agree with teddy. i think only when we do see very strong earnings reports, and we certainly got that from, say, twitter which set a great tone for technology and social media yesterday, caterpillar, not so much. we will get to that in a minute. tell me what you think about
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what happened to all of this overwhelming fear that was jerking around the markets on a daily basis with that headline? >> well, i think that the china trade fears turned into more optimism when you get headlines of meetings and possible resolutions. likewise, brexit becomes just this enigma wrapped in a puzzle as we still have no clarity there and we won't for some time. i think ultimately that the stock market climb will continue, we will continue to see investors pile in but as stocks make new highs, make no mistake, the bond market is giving you a much different signal as yields continue to kind of drift lower here. right now, i would be more concerned about lower yield than i think joyous about higher stocks. the two can't continue on that path indefinitely. the bond market i think right now is telling you a much different message than that of the stock market. liz: we should show the ten-year yield which is at about 2.55%. again, when we talk about the flattening of the yield curve and say the two year, 2.32, we
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don't really have that at the moment, luke, but we also have a very very sort of meaty story out of the oil market that has oil names kind of propping up this market, too. >> yeah. this play with anadarko will get really interesting. i think you got to start looking at some of the secondary names in oil, some of the second tier companies, and think if i don't get anadarko or maybe it's a good idea for me to go get another company or another company says i've got to own something else as well, so you got to start to watch that and look for exxon, they have been kind of quiet, who knows what they are going to do. oil has been doing okay. the prices have been going up. but make no mistake, there's still plenty of oil in the world. the reason we are seeing these oil prices, because the saudis have cut back. they can fill the gap. that's why i don't think we are going to go much higher if there's no political risk or war or anything, just on a supply basis there's plenty of oil. liz: teddy, before we go, i have to ask you, because we are waiting on these big names,
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microsoft is coming out after the bell, as we said, tesla and facebook, you know, the conference calls tend to move the stock around. explain to our viewers why and how that works. >> well, because we look at the earnings, it's always a trifecta of top line, bottom line and guidance. it's the conference calls that reinforce the guidance, good, bad or indifferent. the guidance is very important. so these conference calls therefore are very important. but if you just look at facebook alone, the options are implying a possible 9.5% move one way or the other, depending on what the earnings are, and in the last eight quarters for facebook, the median move, no matter what the earnings, has been 3.5%. so certainly there's going to be volatility with facebook and i suspect with the others also. liz: teddy, todd, luke, so good to see you guys. thank you. keep it right here. at the top of the hour, all the breaking details on earnings. as we said, facebook, mr.
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softie, tesla. connell mcshane and melissa francis will have it all after the bell. well, the cat's out of the bag and stuck in a trade war tree. closing bell, 48 minutes away. dow jones industrials down 11 points. caterpillar is among the biggest drags on the dow, after reporting it has to pay $70 million in tariffs for its materials it buys from foreign sources and in turn, manufacturing costs jumped $375 million. labor was part of that but caterpillar said lukewarm sales in the asia-pacific region also sent investors scurrying. cat down $3.80 a share. up next, at exactly this time yesterday, "countdown" broke the news that google's drone units now become the first to get faa approval to deliver product to customers but how will they do it? we have just frozen the video. the package is attached to the bottom of that drone.
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when we come back, we will show you the ingenius delivery system google's brain trust devised and what it means for the drone industry, next on "countdown." i'm working to make each day a little sweeter. ♪ to give every idea the perfect soundtrack. ♪ to make each journey more elegant. at adp we're designing a better way to work, so you can achieve what you're working for. that's where i feel normal.
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liz: to australia, where team "countdown" has secured this video that shows exactly how google's planning, there it goes, to get your products from its drone safely down to your doorstep. as you see, there appears to be -- it's not exactly a winch, but these are the fruits of project wing, the autonomous delivery drone service just approved yesterday by the faa or at least it was revealed by google that that happened, so what can it do? google's solution to avoid having to land the drone, placing it of course in potentially harm's way from thieves or car smashing it or having to drop its payload potentially damaging it, as you can see, the suggestion was and the solution that this almost magnetic hook that holds on to whatever it is that you're delivering, then suddenly releases it all the way down and gently lets it go. well, now that wing has the same certification smaller airlines even get, the company is looking to start running deliveries of smaller items in two rural
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communities in virginia within the next few months. could this be an investment boon? robert wolf is already one step ahead. co-founder and chairman of measure, a drone service company that helps corporations deploy drones at scale. great to see you. drones are already a multi-billion dollar industry, but first, i need to get your gut reaction on what google has achieved with wing. >> i think it's great. i think you are going to see amazon, uber, lyft and others follow and we will see what fed ex and ups does. it's in the delivery system business. i want to be clear, we are not going to have the jetsons in new york city overnight. this is really for rural areas or last mile delivery. it's not going to go to urban areas, where privacy and urban but they have spent a long time getting it and i'm glad regulators have done something in this space. liz: google got an air carrier certification and what that enables them to do with these
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drones is state to state delivery as well as overseas. these are electric drones so i don't know what the charge is and how much, how far they would be able to fly, but what does it do for a burgeoning industry that we would love to see because it is of course, a job creator, a capital creator, but do we want to see the skies over america look like, you know, the movie "the birds"? >> there is a lot of different questions in there. one, it's good for commerce because it's less expensive than a truck driving miles out to deliver one package. they got permission to do things that other drone carriers are not allowed to do because they didn't want to go through all the different faa requirements that other drone companies want to be. number two, i mean, i think it's the good and the bad with respect to jobs, right? it's disintermediating field service but adding a different technological service. i think what you are going to
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see is a lot of former military pilots, what we do at measure, get into the drone space. that's a great idea for all these pilots. as far as autonomy, autonomy is really in quotes. it's a geosphere mapping but you still have someone with a joystick. liz: that's where you come in with measure. you have a lot of official pilots who know exactly what they are doing here. how do you see your business benefiting from this? i do also have to ask you, did amazon have a gut punch moment when they saw that google got faa approval? because amazon has been for years working on drone delivery. >> my guess is amazon's not that far behind. liz: but they're behind. >> no one is going to short amazon on something like this. yeah, i think google is first but i think also, you have to think there's every other delivery and car service company that is looking at this. liz: i do have to -- >> you asked me about measure. liz: oh, yeah, go ahead. >> what we are doing is much more on enterprise. we are looking at solar farms,
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wind turbines, transmission lines and architecture. so our idea is how do you really inspect and use that imagery for data analytics. liz: because you were a big supporter and adviser to president obama, and you are in the political world -- >> i am. liz: -- tomorrow is a big day for vice president joe biden. tell me if we're wrong here but it looks like there's a littled. it was supposed to be today and tomorrow it's by video. we have known all along this is a possibility. >> irrespective of the day, we know he's getting in and when he gets in, that will be a good day because many people think he's the best candidate to beat president trump in the democratic party. that being said, getting through 20 people is going to be like, you know, running through the jungle. we have no idea how this is going to end up. i think i'm proud that joe's going in. i hope, i wish he went in in 2015 and '16 but obviously with
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his son he just wasn't ready. now you have both his heart and mind ready to go. liz: recent polls right now, talking about realclear politics, have him at nearly 30%. closest is bernie sanders at 23%. >> well, i like that poll because i'm friends with five of the six, so i'm okay with most of them. listen, as you know, i'm not on the populist left. i think there's a whole debate within the party. many people think bernie's the front-runner, not joe biden, and joe biden has best name recognition, but you cannot underestimate what bernie sanders did with raising money and his grassroot following. liz: robert wolf, thank you so much for talking drones and politics all together. >> two different things. liz: good to see you. sirius opens pandora's box. with the closing bell ringing in 37 minutes, the satellite radio home of shock jock howard stern and others sees its first
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quarter net income falling 44% after its purchase of pandora media. net subscribers also fell by nearly a third. investors, not thrilled. sirius is the biggest drag on the nasdaq. it's at $5.77, at this moment down 6%. up next, we know the human cost of boeing's two fatal crashes of its 737 max jets but today, the financial cost to america's aerospace giant. we will jet you straight to seattle for a live report when "countdown" comes right back. f. a visual snapshot of your investments. key portfolio events. all in one place. because when it's decision time... you need decision tech. only from fidelity. you need decision tech. craftsmanship and technology that have made the rx the leading luxury suv of all time. lease the 2019 rx 350 for $409 a month for 36 months. experience amazing at your lexus dealer.
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liz: hold on. i'm just looking at boeing's stock. the aerospace giant has just said in the last hour it cannot quote, reasonably estimate the current and potential financial impact that the two 737 max crashes have had on the company. boeing already taking a hit today from, of course, still the ongoing aftermath, this contrail
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of bad news. it's revealed it's cost at least $1 billion to the aerospace giant so far but boeing says it is nearing a software fix for its problematic jets and that the cost will not be that dramatic. let us take you to seattle, where dan springer is. dan, how soon does boeing expect the software fix gets out to the public and no matter when, we still have airlines like american saying we won't start flying these things until august, maybe september. reporter: yeah, that's right. a lot of questions but i can tell you at least investors were expecting worse news out of the earnings report from boeing. at one point the company stock was up five bucks a share. still, it's been pulled back a little bit but still in positive territory. meantime, today boeing could not say when it thought the software fix would be approved, and the grounding of the 737 max planes lifted, and that uncertainty as you said led the company to suspend its stock buy-back program and not issue any guidance on future earnings. two very unusual things for boeing. after a record-breaking year last year, boeing is down across
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the board. sales hit $22.9 billion, a 2% drop from the first quarter last year. net earnings were $2.1 billion, a drop of 13%. earnings per share which of course is what investors look at, is down to $375 a share and cash flow is off 11%. this is the result of the grounding of the 737 max, which happened in march. a few days after the second of the two fatal crashes. since then, boeing has continued producing the planes, but at a slower pace. here's the key. during the grounding, boeing is unable to deliver any of the planes customers have asked for so they are just piling up and not bringing in any revenue. boeing puts the cost of the grounding so far at $1 billion and that does not include any penalties they will likely pay the airlines for having to take those planes out of service. on a conference call this morning, boeing's chief financial officer left the door open for a lot more pain.
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>> we expect our financial results to continue to be adversely impacted until we safely return the 737 max to service, ramp up production rates and resume deliveries to customers. reporter: right now, boeing's 787 dreamliner in all of its defense and aerospace business has offset some of the lack of revenue from the 737 max but over the weekend, the company got hit with a negative report in the "new york times" which quoted past and present employees at the dreamliner assembly plant in south carolina, some allege boeing had sloppy and shoddy production practices. the company disputed that report, but the key for boeing is getting those 737 max planes back in the air and to that end, reuters is reporting that that could happen in july, and that's actually good news, as analysts had been predicting it could be as far off as october for that grounding to be lifted. liz? liz: yeah. i was thinking september. that was bad enough. october, maybe, but now possibly july, we will watch it develop.
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thank you very much. dan springer in seattle. leave it to elon musk. he's already stealing the earnings spotlight, even before he reports after the closing bell, which rings in 28 minutes. he will have to battle facebook's mark zuckerberg for attention, though. either way, the social network and electric vehicle giant charging their batteries for what could be two of the most controversial earnings reports of the season. tech insider and investing stock guru eric hippeau outside the studio. what he has to say about the ceos everybody loves to hate or loves to adore. plus his take on what we are calling ipo phobia. "countdown" will be right back. was ahead of its time.
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liz: whoa. check this out. breaking news. shutterfly was halted and just resumed trading. it was briefly halted minutes ago for so-called volatile trading. right now it's spiking 8%. it jumped up more than 12% as soon as it started trading again. why? well, it reports earnings tomorrow but ahead of that, bloomberg is reporting that apollo and serberus are weighing bids for the photo publishing company best known for its photo book line. elon musk never disappoints. he tweeted within the last hour, and here it is, about the possibility of building a factory in germany. now, somebody had tweeted to him how about building a factory in germany, and he replied considering. we have no doubt he's probably driving his legal staff absolutely crazy because the s.e.c. has asked him, actually
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told him do not tweet unless it's approved by your board. we have a call in to tesla and the s.e.c. on whether this is a violation again on this but at the moment, he and the s.e.c. are trying to come together for an understanding, let's put it that way. let's get to facebook. will it be the elon show or the zuckerberg showdown after the bell? ahead of earnings, we have both stocks moving lower. tesla down 1.5%, facebook down half a percent. my next guest intimately knows both companies. he was also the big money name behind yahoo! having served as an early investor. eric hippeau here in a fox business exclusive. facebook, the revenues are expected this time around to jump more than i believe 25% year over year. business appears to be great at this company. >> business is great. it's still the very best place with google that you can place
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ads and microtarget and you get tremendous results. the platform works extremely well for advertisers, but that's on the back of violations of privacy. the only way this works is if they take your data, sometimes without your knowledge, and use it to package the ads. so there's a disconnect between what's happening with the user base where, in the united states, the user base is shrinking, people are using facebook less. this is particularly true with younger people, the 18 to 25-year-olds who are basically abandoning the platform. but the platform keeps growing in developing countries, indonesia, brazil, places like this. so the overall effect is one of growth but they have problems at the core. liz: thank you. you are the kind of person who would understand that and lift off the veil or peel the onions to mix metaphors. one year ago this month was the
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cambridge analytica data scandal. that now appears, if you look at a year over year chart, to have been a brilliant buying opportunity because the stock is up significantly since then. does that surprise you, and is that a lesson to our investor audience that just when you think a great name is going through an awful time, is the time to get in and buy it. >> you know, i'm not a stock picker because i'm a private investor so thank god, i don't have to go and make those calls. but the thing to focus on is that advertising is a lagging indicator. advertising will continue to grow, it's what's true in magazines, in newspapers, in television, even when the audience is declining. that's because people in advertising keep doing the same thing over and over again until they realize that the audience has gone somewhere else. liz: let's move to tesla, because it seems to be at the moment a focus in many regards. number one, actual fundamentals, numbers on what they can produce, but year over year, the
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revenue's expected to come in around $5 billion for a 50% gain. if they get somewhere around that, what does that say about the business, especially at a time when elon musk is rope-a-doping with the s.e.c.? >> you have to really separate elon musk from tesla. liz: a little hard to do. >> elon musk is a treasure in the business community. he's someone who speaks his mind, he's obviously brilliant. remember that he has tesla and spacex. he's really kind of a genius and so i kind of enjoy having him freely do what he wants to do on twitter. obviously his board and the s.e.c. doesn't like that as much. liz: problem. >> but the business is strong. this is the fourth year of the model 3. you are seeing the results of the model 3 really picking up the pace. the issue is there are signs that the demand is softening a little because the tax breaks of the federal government are being
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phased out. that's $7500 a car. liz: we have both sides of the aisle hoping to extend those tax credits. eric, i want to get to this ipo phobia that some people see with startups now. if you look at what happened with lyft, it comes out in this brilliant firework, then the stock tends to come back to earth. does this, for a guy who gets in in early stage investing, does this put a chill or bit of a phobia on companies, for example, casper? you have been, you are the big guy over at casper, this mattress disruptor in the mattress delivery area. does it put a freeze on companies like that? >> i don't think so. if you look at all the other ipos, pinterest and zoom and all that, they are all kind of up. but i think the key number, though, is that despite the fact lyft is down 20% or so from its ipo price, it is still valued more than it was valued as a
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private company. so i think that that's the key metric here. there was a lot of concerns, a lot of talk about all these unicorns, all these companies raising a billion dollar valuation in the private market, and could they, you know, do better in the public market and all of them so far including lyft have been doing better. liz: eric hippeau, great to see you. we will be watching it all. thank you for giving us the inside scoop about how these companies think and feel. again, earnings after the bell. when we come back, charlie gasparino on cbs and in 48 hours, marvel's a"avengers end game" unleashed on the world stage. "countdown" has learned what the box office whisper number is for the super-sized movie and how it could smash all records. we will reveal that number next. i'm working to keep the fire going for another 150 years.
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liz: superhero fans and investors, get ready to be awesomeized. friday, "avengers end game" could be the biggest opening weekend in any movie in box office history. last night, i got to see a new york city sneak screening. relax, austin. i will not spoil it. three hour long epic. it is exhilarating, i have to tell you. stellar early reviews and a 97% rating on rotten tomatoes adding to the film's hype which picks up where "infiniti war" left off. afl the guardians of the galaxy have been vaporized. the remaining superheroes must band together in an effort to turn back time and get them back. but it's the box office bucks that could be more than huge. stories telling fox business and fox business has confirmed that
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the whisper number for opening weekend worldwide coming in at a breathtaking $850 million. that whisper number, i was told in the last hour, is actually rising. that would far surpass the original "avengers" which currently tops the list, bringing in $640 million in its opening global weekend last year. investors take note. disney stock, parent company of marvel, already up 21% month to date, could be among the biggest beneficiaries but do not ignore the theater companies. talking about amc, which is up 4% in april, and imax, up about 10% in the month. they already have sellout crowds well beyond opening weekend. here's who dies. just kidding! from box office action to behind the scenes plot twists, faithful "countdown" viewers probably not surprised by cbs' decision to extend the interim ceo, joseph
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ianniello amid redstone's push to reunite it with its sister company, viacom. charlie gasparino set the stage last week. >> right. let's be real clear. this is a six-month contract extension. doesn't sound very appealing. sources are telling us he's not happy with this, because here's what it says, and it basically confirms what we reported last week. there are ongoing merger discussions inside cbs. we have reconfirmed that today. those merger discussions largely involve the viacom putting together the two properties that are controlled by the sumner redstone family, putting them together. that's what the cbs board is talking about right now. there may be other potential mergers in the wings but here's the problem. if you are going to do a deal and it looks like they are moving forward with this, that doesn't mean it will do it. i'm just saying that they are talking seriously. you could not get a ceo in there permanently. you really have a problem either recruiting someone from the
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outside or even asking someone from the inside to stay longer, because they may not be ceos in six months. so hence joe ianniello has a six-month extension from the june date when his current contract ends. theoretically, he could leave in june if this thing does happen. liz: don't buy green bananas. >> what does that mean? i don't know what that means. in any event, what we do know is this and i want to be real clear here. not saying this is going to happen. i'm told this is a fluid situation. but the six-month contract extension which is pretty meager is a direct result, we understand, from the fact that the bored f board of cbs is tal merger. the primary merger candidate as of now, it may change, amazon might swoop in for all i know and throw a lot of money at them, the primary goal is something with viacom. if that viacom thing happens, then it does become a question of who becomes ceo. is it bob bakish or ianniello.
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the talk inside of cbs says it's likely to be bakish based on his relationship with shari redstone who now controls national amusements. liz: what is the strong case for the cbs board to say sure, let's merge with viacom. nickelodeon ratings are tanking, mtv is not what it used to be and this board independently before the new members were put on, they had pushed it away. >> it's a great question. but you are assuming that cbs is in a very strong position. just so you know -- liz: it was. >> it was. every broadcast network out there has come under the pressure from cord cutting. cbs is coming under that pressure. just point of fact. the reason why the fox regional sports networks which are being auctioned, we heard as of late last week, sinclair is in the lead, they were thinking of getting $20 billion for all of them. they are going to come in at $13 billion. it's a simple fact that people are consuming programs differently, particularly, you
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know, millenials and younger people. they don't watch tv. liz: what about elon musk? you saw the tweet in the last hour. >> i don't know why he keeps tweeting but i'm just going to say this. liz: he even just replied. he should not read other people's tweets. somebody asked how about building a factory in germany. he replied considering. >> i don't think that in and of itself is bad. the question is -- liz: but did he check with the board? is he supposed to? >> is he? i don't know. i was at the court hearing when the s.e.c. wants to keep putting him in contempt for the other tweets that didn't get approved. the judge was like well, could be the material, there's a whole -- i think they are going to have to work something out with the s.e.c. where he knows what he can tweet and what he can't. i will say this. tweeting is going to cause the next world war. liz: thank you very much. we are coming right back. we are down 51 points now. ♪
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can i get some help. watch his head. ♪ i'm so happy. ♪ whatever they went through, they went through together. welcome guys. life well planned. see what a raymond james financial advisor can do for you. . .
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♪ liz: earlier it looked like the nasdaq had a chance to break yet another record and close at a new historic high. not quite. we're down about 10 points for that. s&p down 4. any gain for either of those two indices will be a new historic record. democratic presidential candidates, bernie sanders, elizabeth warren, you heard about this, they have spoken about their belief all u.s. citizens, convicts, murders should be allowed to vote but today's "countdown" closers said influx of ex-cons who served their team entering workforce, will be a boost to the labor force, boost to your portfolio. we love this idea. he is the chief investment strategist at fifth third bank. really interesting here. these people served their time, correct? >> absolutely. liz: what are they doing to affect the workforce, in turn stocks? >> the best things we're seeing coming out of the private sector. the business community is stepping forward to start to
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solve some of the social ills. people with criminal record have great difficult entering the workforce, no matter how much they want to, no matter how qualified they are. business leaders are stepping up developing models of success work not just for society, more importantly work for the bottom line of these businesses. liz: it is almost win-win because there is a shortage of labor and what i had read there are ex-cons invited to work on assembly lines, make money, contributing to society, which x's out some rate of recidivism. how does that translate to stocks? >> for stocks this means our labor shortage is not as bad as we think. which means if this economy, ultimately most cycles dies when it runs out of room to grow, we have more room to grow. we think this economic expansion can go longer and be stronger than the market is assuming.
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liz: with ex-convicts coming back to the workforce? >> over 16 million of americans outside of prisons with a felony conviction. that gives you a sense of vast numbers. some are in the labor force. some are too old. i would venture to say all are underemployed. liz: talk how it dovetails to the sectors. consumer discretionary? >> if we have larger labor force than we think, still getting decent-sized wayne increases that is a benefit for consumer discretionary. communications service we like the industries that benefit for a stronger consumer. content providers, some prescription services. those are small ticket luxuries. those are beneficiaries when you broaden out your labor force. liz: jeff, great to have you. an interesting perspective we thank you for being on the shore
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tell the fifth third when i used to bank in ohio. wsyx. >> thank you. [closing bell rings] liz: group of names on top coming up in a few minutes. you can miss it. across the board red on the screen. we'll wait for elon and company along with facebook. connell: we have major moves. some of the biggest names in tech happening moments from now. minutes away literally for results coming in from facebook, tesla, microsoft all today, all numbers that will impact your money tomorrow. dow settling lower as we move into the close here. only 200 points from record territory. we thought s&p, nasdaq closing at record highs. they faded into the close. we have a very busy hour ahead. i'm connell mcshane. melissa: i'm melissa francis. here is

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