tv Countdown to the Closing Bell With Liz Claman FOX Business May 20, 2019 3:00pm-4:00pm EDT
once thought of as being close to death are not only back up but will do very well in the near future. charles: always a pleasure. thanks, man. >> thank you. charles: liz, going to hand it over to you. dow has sort of been drifting this hour, grappling, if you will, for direction. liz: we might give it direction with news but i don't know if it's the right direction, depending if you are a bull or bear. breaking news, sprint is now trading again. after being halted in the last few minutes on a report that the department of justice is now leaning against t-mobile's takeover. while still higher, you can see this infraday chart. t-mobile and sprint shares off earlier spikes that had gotten a huge thumbs-up this morning from the head of the federal communications commission for the $26 billion t-mobile/sprint marriage but news is jerking the stock all over the place. we've got charlie gasparino here along with the man you need to hear from. that's rod mcdowell, the magic
merger man, here in a first on fox business interview. he is t-mobile's outside counsel on whether there's any credibility to this report from bloomberg which would stop the creation of the third largest wooil wi wireless operator in the u.s. at this hour, several major american tech giants who do business with huawei are slamming the door on president trump's blacklist order from google to momentum and a huge number of u.s. chip makers, there are all kinds of reports they can no longer do business and it's going to hurt their revenues. we have the latest chapter in the huawei saga. speaking of slamming, the nasdaq bulls are slamming into a wall and it's bigger than just huawei. the tech-heavy index is down 121 points or a loss of 1.5% because this overall trade war with china shows no obvious signs yet of any resolution. with exposure to china, you know apple's a big story. we are about to show you shares of that. but there is good news here.
with summer just days away, how do five days in an oceanside hotel and palm trees waving in the breeze for under $1,000 sound pretty good for you right now? the priceline ceo is here in a fox business exclusive to show you amazing summer travel deals to grab right now. plus, the two words one analyst used that are now driving tesla shares to a two and a half year low. the trade war high seas drama and stock picks our closer says will have you on cloud nine. less than an hour to the closing bell on this monday. let's start the "countdown." liz: and we have this breaking news, folks. catastrophic tornadoes are headed right now toward parts of the texas panhandle but also we understand oklahoma, the national weather service is warning more than two million people are in harm's way right now with quote, significant threat to life and property.
over the weekend, that is obviously just the radar but here are real pictures of terrifyi ining twisters spinnin across texas as 52 tornadoes, as if one weren't bad enough, 52 were reported across seven states. you're looking at the damage left over in geronimo, oklahoma from a tornado that struck there saturday. it is a terrible situation right now. we will try to keep everybody posted. if you are in harm's way, please take care and get to a safe area. to the markets for the moment. the damage from the u.s. ban on chinese smartphone giant huawei thursday still has investors reeling. tech stocks in particular taking it on the chin. dow jones industrials down 131. we have a few tech stocks there but as i have already mentioned, the nasdaq is the real problem because it has huge exposure. the ban is not helping apple's cause at all. by the way, apple, a member of the dow, the nasdaq and the s&p. that stock hitting a two-month low. apple down nearly 3.66% or $6.98
to $182.02. throw into the mix a bearish note from hsbc as the firm cut its price target to $174 per share, warning investors that yes, the trade war will continue to take a bite out of apple as it has quote, an impact on how chinese consumers perceive u.s.-branded products, chiefly the iphone. hsbc says the region accounts for 18% of apple's sales. speaking of phones, code red. those are the two words on tesla that have driven the stock down the a two and a half year low. friend of "countdown" and top tesla analyst, dan ives of wedbush cut the price target to $230. we are below that right now for tesla. he had $275 so it is a big cut. keeping a neutral rating on the electric vehicle giant, citing concerns about tesla's growth prospects and underlying demand for the model 3 in the u.s. here's the quote. this is what dan said.
code red situation at tesla. musk and company are expanding into insurance, robotaxis and other sci-fi projects. that is really obnoxious. okay. he's talking about having a good time, you know, with spacex, et cetera. listen, those are serious projects that nasa is dealing with. when the company instead should be laser focused on shoring up core demand for model 3 and simplifying its business model and expense structure, in our opinion, head winds abound. tesla's stock is off the lows, actually, but still down about 4% but heading back down. >> what did i tell you about this? liz: this is what i live with every day. charlie, what did i tell you? i know you are, but what am i. >> the numbers don't add up. liz: tesla at $202. in a classic case of it ain't over til it's over, t-mobile and sprint, can we show intraday? they are wildly gyrating here. first up dramatically this
morning, intraday, please, after the chairman of the federal communications commission gave the merger of the two telecoms a thumbs up. minutes ago, shares of sprint were halted for volatility and then once they started resumed trading they moved off their highs, this on a bloomberg report that the department of justice, a separate regulator, leaning against the $26 billion merger. charlie gasparino has been out front on this story. he and i are joined first on fox business by t-mobile's outside counsel and former s.e.c. commissioner robert mcdowell. robert, thank you for coming. what's going on? >> it's a very good news day for the merger. first of all, we have the fcc or chairman of the fcc, ajit pai, my friend and former colleague, putting the full weight of his support behind this deal with the conditions that were really written by all the parties involved. keep in mind you have the
department of justice, you have states with a public utilities commission and state attorney general, a lot of regulators have a bite at this apple. there are a lot of concessions there that i think will pave the way and propel this to final approval. you already have two fcc commissioners voicing their support this morning. you just need one more. of course, the order has to be circulated. >> okay. the big kahuna obviously now is doj antitrust. the staff obviously has some issues with this. is that fair? >> from day one. just so folks know who are watching, when any deal of this magnitude is announced, the first thing an antitrust trial attorney at the doj does the next morning is fire up their computer and start filling in, populating a complaint. that's their only remedy. they are very litigious about these things. from a pure narrow antitrust perspective, there will be -- >> 4-3? >> that's their view. it's really from two to three.
you have two healthy vibrant national carriers, verizon, at & t you now you will clean up and have a third competitor, you will be able to front-load capital expenditures for 5g buildout and reare going we aren the race to 5g. >> you are having a difficult time convincing the staff of that, i would assume. >> which is common. in fact, it's usually the case. i was at fcc during nbc/comcast universal. the staff had a hard time with that one. sirius xm. doj had a hard time with that but they got done at the end of the day. >> so the real issue here is making delharim, the antitrust chief, it's his call, right? >> at the end of the day, it's his call. they are making that decision. it's their decision at the end of the day. >> what do you think they will decide? >> i think they will approve the deal. >> why? >> so what the fcc has done is
both what we call behavioral remedies and structural remedies. he has said he likes doj to engage in structural remedies but not behavioral. so the fcc has done the heavy lifting in that regard. plus there are price controls, rural buildout, 5g buildout overall and also, a deal to help strengthen cable as a wireless competitor. >> when was the last time an antitrust chief -- i mean, they obviously talk all the time, right? i mean, this must have been coordinated to some degree. >> first of all, ajit and he have known each other for a long time. they are friends. they talk often not just about this deal but about other deals and other things going on. so i know that they are talking and have been for some time. i don't want to speak for either one of them. but this is not any kind of blindside. liz: i do want to just clarify. when you say i think they will approve the deal, that's the
doj? >> doj will give this a green light. their only remedy, is to sue to block. liz: when you hear this report they are leaning against it, is that sort of -- let's just protest a little bit, then we will back away? >> well, a lot of people are in the antitrust division. there will be career staffers and the principals. liz: which side hates this? >> the staffers. career staffers. some of them are not that much in favor of the deal. i think they will come along. >> you have buy-in from the policy guys, correct? larry kudlow? >> absolutely. he has said publicly, larry kudlow, that he's in favor of this. he gets the frontloading of capx to accelerate america's 5g buildout so we win the global race to 5g which has huge implications for the next generation, the next 20 years of our economic viability in this country. >> would ajit have approved the deal if he thought makem was
dead set against it? >> i don't want to speak for him. i want to make sure he stays my friend. i would bet on ajit to have persuaded anyone who needed persuading. liz: one last question. t-mobile and sprint have made all kinds of concessions. so that it will be palatable to the regulators. if they concede and say no increase in fees and no price increases, how do they get the money to build out 5g? isn't that a costly endeavor? >> they are clearing up a balance sheet. you have a ton of cost synergies by combining the infrastructure of sprint -- liz: does that mean firing people? >> no. actually, there's going to be net job expansion. a lot of the folks who are skeptical of those claims when t-mobile bought metro pcs, that's the perfect example. employment at metro pcs tripled because you have to look at the growing pie. this is really the way supply side economics, this is you are going to have a big economic expansion due to 5g. that's going to cause almost a
virtual cycle. not a big believer in true virtual cycles but a tremendous ecosystem will blossom and that will cause net higher employment and more jobs. liz: great to have you. you made the right first stop. charlie has been ahead of this story from the beginning. >> lydia did a great job. liz: yep. thank you so much. rob mcdowell, come back again. when this whole situation -- >> how do you say his name? >> leger. and ajit pai. liz: and rob mcdowell. >> sometimes i get ronald mcdonald. liz: come back again. thank you. >> be happy to. liz: the outside counsel for t-mobile. will the sprint/t-mobile marriage create a formidable competitor and if so, why are the competitor shares not shaking in their shoes? investors are actually piling into at & t and verizon.
the thinking being the t-mobile/sprint deal could lead to better pricing in the u.s. wireless market which might mean more customers for all. all right. when we come back, the one, the only floor show. we take it to the traders. dow jones industrials down 156 points. much more ahead on "countdown." termites, feasting on homes 24/7.
liz: there are multiple phone and semiconductor stocks in all three major indices but it's really the chip makers that semiconductor chips that are in the brains, that are the brains of these phones, that are getting hit the very hardest in this final hour of trade, after the white house's order last week barring u.s. companies from doing business with chinese tech firm huawei. already, the action is pretty severe. if you take a look at these chip makers who sell to huawei, qualcomm, lamb research, everybody is done. qualcomm is down 6.5%. not a pretty picture. then you have two companies complying with the ban that aren't necessarily a phone or chip company. google was forced to revoke huawei's android license in compliance with the new rules. that's down about 2%. and lumentum, who makes facial id and optical products that go in phones, it has halted all shipments to huawei which needs
its products for its phone. let's get to our traders. where do we stand on the white house putting a ban on huawei and how badly is this going to hurt the chip sector and our investor viewers in the long run? scott, you first. >> when the news came out on sunday that they were actually instituting the ban, all of a sudden reality hit. that's why you are seeing a lot more downside today. the chips have been pretty much in a bear market for a couple weeks now so maybe this is the last stage of it. i would say for investors, i don't like to buy low, i like to buy high and sell higher, but i do think intel could be an opportunity. it's $42 to $43 area for longer term investors after a 25% move lower over the course of the past quarter, i think is a good spot and for more active traders like myself, i would look at qualcomm in the next day or so. it just came in from 90, is trading around 76. there's a gap there, i think in the next day or so we might be able to get a tradeable -- liz: i'm looking at intel right now. it is down 3%.
at $43.54, that's just hovering above the 52-week low. can we show intel? intc. that's not a bad picture there, if you're looking to buy low. what was the second one you mentioned? >> qualcomm. liz: okay. we have already seen that one. we can put it up again. that's getting hammered, down 6% and change. phil flynn, my question to you, the trump administration, for people who don't understand, say they banned huawei, they blacklisted it for safety and security reasons. these are chinese telecom equipment companies that make the 5g networking and ostensibly they say if you are letting them lay the groundwork here in this country they could spy on us. was there an example of this and maybe the administration doesn't need an example. >> i think there is one example they are saying. one of the companies that provides drones to the united states for taking pictures, the justice department is saying
right now that they have evidence that these drones are actually being used to collect data from the united states. there's a lot of small chinese technology companies that have been selling small products to the u.s. for some time, things that tie into alexa, for example, that can feedback data to chinese companies. i think it's a risk. you stand up now and it's really about the new frontier of 5g. this is what this is all about. we have to do it safely. liz: dhs, the drone company was apparently, yes, stealing data -- dji, rather, i'm sorry. dhs was accusing dji of that. scott, investors are getting hurt today but you can also look at it as the investors who wanted to get into these stocks have an opportunity but is there a safer area at this point that doesn't have exposure to china where you would go? >> some are looking for companies that don't have exposure but when the market is going one direction, usually everything gets hit. if you are looking for some
relative strength, some people are looking at facebook because they actually don't do business in china and they can't get tech. even the financials had a little bit of a bid today. at this point, until technology stops going down, until we ged this trade war situated, a lot of traders are signatutting on sideline waiting to see where we are by the g-20 where he might actually meet with the premier of china or if we send a u.s. envoy to china at the end of may, maybe we see a relief rally. until then, traders are being defensive. liz: good to see you both. thank you very much. we will see you guys next time. ford is backfiring right now. this is an interesting behavior of the stock. with the closing bell ringing in 39 minutes, the stock is down half a percent. the news is terrible for the workers but often when you see a company cutting jobs, investors pile in because they feel that it is going to be leaner and meaner and certainly might make more money. that is not the case today, after the automaker announced
it's cutting 7,000 jobs, equals about 10% of its global work force, and that will be done by the end of august. ford says it will save $600 million per year on the move. ford is down a nickel right now. up next, the summer travel season just days away. whether you are driving a ford or flying in a plane, we have got the dream of a hawaiian holiday or disney family vacation in front of you. what's the best strategy to get the most bang for your vacation buck? the priceline booking ceo is here exclusively to tell you when and how and where, when "countdown" comes back. i'm working to keep the fire going for another 150 years. ♪ for beauty that begins with nature.
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and boy, are you going all out. if budget is a concern and if you are smart, i don't care how wealthy you are, budget should always be a concern, according to priceline, here's the top wallet-friendly destinations this weekend. today, the travel site launched a new way to do one-stop shopping when it comes to getting out of town. priceline ceo bret keller is joining us in a fox business exclusive. priceline is a unit of booking holdings which is publicly traded. ticker symbol bkng. thank you for joining us. what are people doing this weekend? >> people are absolutely getting in their cars and driving. what we are seeing is that people are going to very high, dry destinations so texas is very hot this weekend. both dallas and houston are big drive-to markets. there's great value there. the business travelers have cleared out for the weekend and there's a lot of available inventory which leads to some great deals for travelers. liz: let's talk about how bullish you are on people, whether they are flying or driving, to upping their game. when i'm talking about, you
know, room value per available room or whatever you call it. as you look at people and what they are spending, it's a good indicator of how the economy's doing. what are you seeing? >> we are seeing that people are traveling and travel is up. aaa said on average, travel has been up 3% to 4% on the hotel side. flights are obviously pushing heavily right now. we are seeing that. and people are, however, a little conscious of price. gas prices are going up and with the big drive destination they are looking for ways to save money. priceline, that's one of the reasons we launched our trip builder product which allows you to bundle things together to deliver savings. even if you are driving and want to stay in a couple destinations you can find a couple hotels, bundle them together which leads to a lower price. liz: that's called the trip builder. people can go on that, plug in whatever they want and it will then aggregate and spit out exactly what they want to do, hopefully. >> absolutely. liz: at the best price. >> it's a very flexible system. that's what travelers are really trying to do today. in the past you used to book one
hotel, one round trip flight and that was your trip. today, people are much more inventive. this product helps them to package things together. liz: i'm so interested in some of your further destinations. we went on the website and we just put in a random week in august in cabo san lucas. cabo of course is right on the ocean. look at this. for hotel and flight, for several days, i see $783 in august which isn't necessarily the high travel time, but if you were to then book that piecemeal on your own, it would cost, i don't know. do we have that? what it would take? >> you would spend another $200 or so. liz: more than that. double, almost. >> absolutely. again, packaging is where the hidden discounts sit in the travel industry. because the suppliers, they don't want to share their best prices outside of, you know, they want to sell the prices they want to sell but they are willing to discount in a package
format. liz: google is moving into the travel-related business products and amazon, amazon will do whatever it can to have its fingerprint on and in every single thing out there. how do you absorb that? do you get nervous when you think about amazon getting in your business? >> we get nervous about any competitor trying to get into our business. clearly amazon is a very big player. amazon has taken a couple shots at travel over the last 20 years. we have seen that happen in our industry. but like google, they could potentially be a very strong partner as well. google is a very big partner of ours. they produce significant leads to our travel website which then lead to consumer purchases. google has been in travel for 15 years. liz: i would think that that is actually a positive, when you look at what google might do. i'm very interested to know about the 737 max drama. that jet has been grounded and we have had hundreds and hundreds of flights canceled, and we don't see a real end point on the calendar as to when those jets, after two horrific crashes, will be back in the air. what have you seen at priceline
regarding that? >> well, we haven't seen it necessarily impact consumers' willingness to fly, especially in north america. people are still flying. the airlines who obviously are having to work around that by bringing different fleet in to backfill, they have done a nice job of finding inventory or supply quickly to take the place of that. on our website, we obviously show you what you are going to fly before you purchase so that you know what equipment it is that you will be flying on. liz: i have to ask before we go, what is your favorite most recent vacation you have taken and where? you are the ceo of the vacation let's make it real website. >> we just got back from greece just a few weeks ago with the family. we stayed on the main island and just enjoyed, really not the main island, the country itself and went to island to island, day trips back and forth. it's beautiful there. liz: it's coming back. coming back after a tough time. good to see you. thank you so much. bret keller of priceline.
breaking news, the justice department's legal opinion that's apparently finding that congress cannot compel ex-white house counsel don mcgahn to testify about the mueller report findings. pat cipollone, counsel to the president, informed the judiciary committee that mcgahn has been directed not to appear before the committee tomorrow. not sure but i believe mcgahn can make the choice on his own but he cannot be compelled by congress to do so. beijing or botswachna. forget the u.s./china trade war. so says our next guest, put it behind you. your investment dollars will be better spent focusing on africa and other emerging markets. he means for businesses who have been doing business with china. time to move to the land of elephants and tigers and lions. don't forget to download my new
podcast, everyone talks to liz claman. it's on apple podcasts, if you have a tesla, it's on the tune-in podcast area. first episode available right now. we have a new one dropping on wednesday. "countdown" is coming right back. your daily dashboard from fidelity. 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. it's either the assurance of a 165-pointor it isn't.on proces. it's either testing an array of advanced safety systems. or it isn't. it's either the peace of mind of a standard 5-year unlimited mileage warranty. or it isn't. for those who never settle,
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billion a year, just 1.4% of global trade by value. let's bring in the guy who wrote that op-ed and find out why he says the u.s./china trade war is not the game that should be played in town. banyon hill senior research analyst and economist, ted bowman. the way i have been hearing it, everybody uses products and materials in their products and materials from china. you're saying no? >> well, thanks for having me on, liz. i think one of the key issues is that a lost trat of trade these takes place between countries that are not the u.s. or china. i think increasingly, what we are going to see going forward is that countries like african countries will be trading with countries in southeast asia, in south asia, in latin america and they are going to be building supply chains amongst themselves. and really if you look at the demographics of the situation, that's where the big growth in the long term has got to come from.
liz: right now, let me just interrupt. right now we have vietnam and africa exchange traded funds on the screen. we are doing that because if people are looking for an investment angle as a business network, that's exactly what we are always trying to offer. what's that trade. but you need to make the case here for our viewers, you say that people are now, companies are doing business with african nations. what is the infrastructure like there? because that's sort of been the lagging issue in that china has leapt quite far ahead when it comes to development and industry. >> well, i think you're right. i think infrastructure is a major issue in africa in particular, but that also presents an opportunity. i think in addition to the inherent demographic potential of a continent like africa that's expected to essentially double in population by 2050, and where gdp per capita will probably treble over the same period, infrastructure is one of the kick-starters that pushes people into the global market.
so i think the critical thing is to position yourself to take advantage of gains yet to come. that's why i think the important thing is to understand how cheap assets are in the developing world right now, those kinds of etfs that you mentioned are at historical lows relative to u.s. equities. liz: wayne gretzky always says go to where the hockey puck is going to be, not where it is. you say the real drivers of change on your screen, agriculture, minerals, i'm always thinking rare earth because a lot of african nations have the rare earth, there are obviously dozens and dozens of african nations. which ones are most developed and the safetiest y es safest i business or place some bets? i often think of south africa or tanzania but where else? >> i think right now, south africa is probably one you would want to give a little space to because of political issues there. but certainly, kenya is positioning itself to be the
economic and technological hub, not just for east africa but really for the indian ocean basin. very highly educated work force, a government that's very forward-looking in terms of the right conditions for business, and also just positioning itself as a hub for things like internet connections across the continent, travel and so on. and also, they are the continental leader in e-payment systems which is the most highly -- africa is the continent where the highest penetration of mobile phone based banking in the world. really led by kenya. liz: it is fascinating. i have studied a lot about global payments. they never had storefront banks so they had to go to mobile payments through their phones. just fascinating. great to see you. thank you. we will wait to see if africa really plays out. i have been hearing for decades about this, ever since i started doing business news and waiting for it to actually happen. you say it's happening.
>> it's right on the cusp. liz: ted, thank you very much. google is caught in the trade war pickle. we have been talking about that the last 41 minutes. with just 19 minutes to go before the closing bell rings, the dow well off its lows. we are down 81 points. we have been down 203 earlier. the tech giant forced to slash ties with chinese phone maker huawei after team trump ordered new restrictions, as we have already told you. we will take you live to the nation's capital for details on the trade war's impact on big business and small. "countdown" will be right back. heading into retirement you want to follow your passions rather than worry about how to pay for long-term care. brighthouse smartcare℠ is a hybrid life insurance and long-term care product. it protects your family while providing long-term care coverage, should you need it. so you can explore all the amazing things ahead. talk to your advisor about brighthouse smartcare.
a report that chinese-made drones may be sending quote, sensitive flight data to their manufacturers in china, where it can be accessed by the chinese government. u.s. officials have raised national security concerns regarding chinese-made drones in the past. in fact, the u.s. army issued a ban of dji drones back in 2017. meanwhile, as trade tensions continue to escalate between the u.s. and china, chinese president xi jinping visited a rare minerals producing plant in china, sending mixed signals to the u.s. edward lawrence is in washington, d.c. and you have to get us from point a to point b. what big signals here? reporter: the trade dispute is escalating as you said between the u.s. and china here. now, experts worry that that visit could be a signal that china may ban the import of rare materials to the united states. as some of those materials are used or minerals are used in low carbon technologies like
electronics and smartphones also. now, this may be in response to the president banning u.s. technology, getting into the hands of chinese telecommunications giant huawei. on that front, google announced it would restrict some features on huawei android phones because of a new executive order that was signed by the president last week. now, in a statement today, a google spokesperson told me that quote, we are complying with the order and are reviewing the implications for users of our service, google play and the google security protections from google play protect, will continue to function on the existing huawei devices. now, for its part, a spokesman for huawei says that they're collateral damage in a trade dispute. >> trade war issue where the united states and china are right in the middle of a trade war, the timing of the executive order which came out last week is cynical and is clearly aimed at maximizing the damage to huawei at a critical point in the trade negotiations.
reporter: and a statement from the company says that they will continue to build a safe and sustainable software ecosystem. tech experts say that the ban on american products may slow the rollout of 5g, that huawei is doing worldwide. neither side is talking about this. i can also tell you that late today, we got word that 170 shoe companies actually sent a letter to president trump asking him to remove footwear from the latest round, the next round of tariffs to be put into place. that's $300 billion worth of products, up to 25% that could be next which is everything else china imports. so big names on this list here. nike is supporting it, adidas supporting it. it's coming from dsw and foot locker, some very big shoe brands worried about the increase of prices should that next tranche of tariffs go into effect. liz: i just find it strange, nike is down 2%. reporter: yeah. and they're worried. people are concerned about the next tranche which could be 25%. it seems that we could be headed that direction.
liz: okay. reporter: if you look at the timing of this, june 17th is the public hearing. the president could impose those tariffs on everything else china imports by july. liz: you have to go back to the depression era smoot-hawley tariffs which included footwear. so this would be almost a double hit for them. very tough business. thank you, edward. edward lawrence. well, get your head out of the clouds. the closing bell ringing in ten minutes, dow is down 79 points. today's "countdown" closer is about to give you his tech picks that he says could send your portfolio sky-high to the cloud. "countdown" is coming right back. termites.
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it is down 18. nasdaq at its low is down 137. still down suffering. earlier this hour t-mobile outside counsel robert mcdowell, came here on fox business and what he said about the department of justice how they will or will not accept the t-mobile-sprint merger deal. when you say i think they will approve the deal, that is the doj? >> the doj will give this a green light. their only remember to sue to block. they will decide not to sue to block absolutely. liz: he is confident. this after sprint right before this hour had been halted on news that the doj was leaning against the merger. right now the both stocks are up but off their earlier highs. t-mobile up nearly 4% and sprint is up 18% climbing back up. you can see where the drop came where it had been halted. piping hot luckin coffee
shares cooling off. second day of trade, down 9%. i want to get to susan li live on the floor of the new york stock exchange. i want to try this thing out. where are they? i need to try this. susan: right now they're only china. that was a question asked them when are you getting in other market. this might work in cities but not where there are high labor costs and high rent like new york. the stock was up 47% on day one. falling back down to earth today. ipoed $17 a piece. some people look a look at the financial metrics. yes there is huge growth when it comes to the company. they will overtake starbucks with number of stores which is pretty impressive for company open 18 months which starbucks has been in china for 15 years.
they are not making losses. they quadrupled costs. in luckin's case, show me like uber and lyft and other unprofitable markets. liz: double cafe whip latte. susan: got it. liz: could the future of technology stocks be in the clouds? we have sarge guilfoyle, and our superstar trader. i've been hear about cloud stocks for a while. why are they the place for people to have a portfolio moment? >> not suddenly. they have been a bright spot for a while. with semiconductors with exposure to the china a lot of cloud babies are being thrown out with the same bath water. their underlying customers may
have exposure. they're better off than technology. liz: you hear that folks? sarge has done the work. the ones we're putting up lear, are ex-chain -- ex-china. >> almost completely ex-chain. liz: go with favorites. >> adobe, that is pdfs, acrobat. my clear favorite. price is 314. i like service now. service now is great clue ant management company. target price of 200. those two i am long. liz: service now is 264? >> that's right. panic price is 235. i have a panic price for every stock. i'm long sales force which is on this list, hit its panic price, 154. i sold some. we are disciplined trader. when something hits target price or panic price you do something. liz: you are very disciplined
like buffett more of a trader sentiment. >> he is an investor. i'm a trader. liz: you are definitely specific about the panic points and buy point. >> you have to honor your own rules. if you don't honor your own rules you won't make money. liz: spoken like army ranger. >> i was in the marines. liz: david has a son in the marines. he says don't mix them up. where do you think some these names adobe now and -- >> that is name this week. i'm not long that name but i have a bull call spread on which is options play. i'm short puts which is different options play. i'm trying to provide revenue while taking a limited risk chance to the upside. if the stock goes down i won't make any money. if it goes up i have a limited risk gain with higher probability than just laying out a lot of money for the equity. liz: a week ago today the market was plummeting.
tuesday was bad as well. tell me as a trader what do you do, such gulp in your stomach and it doesn't feel so good? >> like i said, i act when stocks hit my prices but i also raise cash. this what people have to understand at home of the best way for you who might not be a expert to tamp down volatility in portfolio is raise your cash level. if anything makes you nervous, take something off. you don't have to get out of the stock completely. take something off when you look at little jane and johnny in their beds you wonder if you can feed them. you have protection. you don't have to rely on financial adviser may or may not be telling you the trying. liz: on a day the market my be spiking. i was old school with handwritten notes. sarge comes in here. i feel so good. >> this is the sarge folio. liz: young kids are way bigger on technology. hold it up and show it.
>> every stock with a target price, panic point, and pivot point. liz: two of us are old school. you got that? great to see you, stephen guilfoyle. thank you for your picks. [closing bell rings] the dow still down but moving. we'll see you tomorrow. connell: trade tensions weighing on wall street again and also on the 2020 race for president which we'll talk about. all three major averages in the red. we'll see that second day in a row. lower by 87 point, off the session lows as the chart will show you. good to be with you on a monday. i'll connell mcshane. melissa: i'm melissa francis. this is "after the bell." the s&p 500 and the tech-heavy nasdaq ending in negative territory after two work of losses. the nasdaq closing down more than 1%. more on the big market movers, but first here is what is knew at this hour. ♪ focusing on one of the states