tv Countdown to the Closing Bell With Liz Claman FOX Business May 21, 2019 3:00pm-4:00pm EDT
was kind of catchy. liz: we have one that huawei put together of little school children holding up hey wuawei saying how great the phones were. they're creative, right? charles: it's a public relations battle as much as anything else. liz: absolutely. breaking news. while we were hearing that catchy tune, folks, we have gotten a sudden flurry of activity right now on capitol hill that is already moving the markets. here is the news, just out in the last few minutes. senate majority leader mitch mcconnell moments ago appeared before cameras and said he hopes there will be a budget deal and wait, he put a time on the clock. by the end of the day? yeah. he says by the end of the day, we will have something we have not had in years. a two year long bipartisan deal that could include the raising of the debt ceiling. we are going to take you straight to capitol hill for the very latest on that. markets then popped to session highs on the news, adding to gains from what
earlier relief rally in technology after the trump administration backed down from blacklisting chinese telecom giant huawei. now the government says u.s. firms that sell components to china's largest phone maker will get a 90-day grace period before the order to stop all shipments to this gigantic customer kicks in. but it's more than a nagging question u.s. suppliers of quite frankly stocks you might own are now faced with. will that order to freeze out huawei force the extinction of china's largest smartphone maker but could that in turn force the death of huawei's american suppliers and then they become the real victims? the u.s. tech sector inside man, gary shapiro, ceo of the consumer technology association, is here in a fox business exclusive to get you the odds on that. and saving the soul of retail. as one segment of the industry screams out that it's getting bigfooted by donald trump's tariffs. why schoomakers are kicking and
screaming over the latest shot across the bow in the trade war with china. plus more aid coming for farmers in the form of pennies? is there an analogy between ghosts who ran wild on manhattan's east side this afternoon to weeding out your portfolio? yes, we have video. charlie breaks on it the detod details of the t-mobile/sprint regulatory roadmap. less than an hour to the closing bell. let's start the "countdown." liz: we are getting this breaking news. the state of california is suing the u.s. transportation department after it pulled the plug on funds for that high speed rail project that would connect san francisco to los angeles. the lawsuit governor gavin newsom's administration filed in san francisco federal court attempts to recover nearly $1 billion from the contract that the trump administration
canceled last thursday. the state also plans to file a request for a temporary restraining order which will ask a judge to block the administration from using that money that was supposed to go and what is granted for this high speed rail and then take it and use it for other purposes. the federal railroad administration claimed california had not made reasonable progress on the project which you see being built right here, and they named that as the reason for yanking the funding. 72 hours after it kicked in, we go to the huawei hangover which is finally wearing off for investors. first day of gains in three sessions here as the united states temporarily lifted its foot off the trade brake on the chinese telecom giant. stocks that at this time were dropping are now curving upwards. which are we talking about? we are talking about everybody from broadcom to qualcomm to, of course, apple. apple is one of the big dow components that's on the move here. united healthcare, boeing and
caterpillar, put all four together and they account for half of the dow's advance. so apple did get that reprieve from speculation that china could target the u.s. tech giant in retaliation against huawei's restrictions. which brings us now to the semiconductors i was just mentioning. they're looking particularly chipper on the huawei reprieve. first they can still export chips at least for another 90 days, and other technology, everything from optical lenses to screens. you've got qualcomm chips with momentum which was absolutely getting hammered yesterday, regaining about 1.75%. xilinx is up 4.5%. many of these companies depend on huawei's purchases of their products for revenue which in turn makes the stocks go higher here in the u.s. secondly, this move to put it all off for 90 days eases trade wars tensions which would have forced chip companies to reduce
capital expenditure. we have intel, cree, broadcom, applied materials and lam research all green on the screen. so yes, we are going back to congress here. we have this breaking news. congress closing in on a budget deal. here's what happened just a few minutes ago. mitch mcconnell, chuck schumer, nancy pelosi and kevin mccarthy met today to hash out the nation's fiscal future, working to avoid another government shutdown. senate leaders on both sides of the aisle actually expressed optimism moments ago on capitol hill for a deal to not only raise budget caps but also boost the debt ceiling. so much is at stake here, particularly in the market sentiment about all of this. without action by congress there would be a mandatory cut of $71 billion to defense spending and another $55 billion to domestic programs. let's get to hillary vaughn on capitol hill. i can't believe this. we got them to put their differences aside and get something done, and mitch
mcconnell, correct me, says by the end of the day? reporter: that is exactly right. by the end of the day. that's what majority leader mitch mcconnell said moments ago when the press was standing around asking him questions about what happened during the meeting, and he said he's optimistic that they are actually going to get a deal done by the end of the day. they are meeting again at 4:00 p.m. with the big four so mcconnell, schumer, pelosi and mccarthy, along with two reps from the white house. stephen mnuchin and chief of staff mick mulvaney as well will be in the room. that's really rare to have made up so much common ground in just a few hours this morning. so by the end of the day, we will see if mcconnell is good in his prediction of that. here's what he had to say about what happened in the meeting. >> i was encouraged by the beginning of the meeting today and we are going to resume at 4:15. i'm hopeful and optimistic the secretary of the treasury speaks
for the president in these discussions and that we will hopefully soon reach an agreement. reporter: so part of that is he says is the best option is to negotiate with house democrats because the other two options are sequestration or arguing over the length of a c.r. with democrats. he says this is really the best option that they have. chuck schumer saying after mcconnell that he thinks there are still some details to be worked out. he says they need to work out spending, particularly domestic spending. that is probably what's going to be discussed at 4:00 p.m. he also says that this will include raising the debt limit in this same package. a lot of details still being worked out, but it does seem like while those details are up in the air, they are confident they will be able to work them out by the end of the day to spput something on the president's desk. the key is do mnuchin and mulvaney speak for the president because congress did put a deal on the president's desk before,
he decided not to sign it and mcconnell and schumer are saying trust but verify, wait and see. liz: isn't it fascinating that depending on who's in power, the other side has been very hesitant to raise the debt ceiling and both sides are guilty of digging in their heels and suddenly now both sides are for it. that will be very interesting to see. hillary, thank you. hillary vaughn. we've got two major discount retailers, you may own their stocks and they are plummeting. we have jc penney and kohl's. kohl's is down 11%. jc penney down 8%. they missed same store sales expectations. kohl's is looking at dropping here and jc penney reported a drop of 5.5% during the first quarter. kohl's, for its part, blamed unusually cool spring weather but also competitive pricing for its miss, read amazon, while jc penney was hurt by its decision to stop selling major appliances. while other retailers have recovered slightly, these poor
reports follow several store closure announcements over just the last week. yesterday, dress barn, you know them, said it would be closing not some, all 650 store locations. last week the children's place said it will close between 40 and 50 stores in 2019, then fred's announced it will shutter more than 100 stores across the u.s. what do we blame this latest round on? is it tariffs? is there something else at play? is this the amazon effect or a change in consumer tastes and spending habits? let's get right to our traders here. john corpina, this trend is not just dress barn. you have the children's place, fred's and what happened the past two years with the retail ice age and you wonder why do i go into these stocks. >> you know, it's a tough area to really get into. when you take a step back and look at the whole industry, everyone focuses on amazon, on walmart, and the things they are able to do. the money that they have behind them, they can get into any
section of that business they want and they can outlast any of their competitors. when you look at some of these stores like we saw some of these stores on your lead-in that are closing, they have become the mom and pop stores in the local neighborhoods and they just can't fight this big battle. we are going to continue to have this conversation. there will be some quarters where it makes sense and we see the numbers do stabilize but i think in the long term, brick and mortar, it's really really tough for people to compete with. liz: yeah. although i'm looking at tj maxx which is tjx, owner of ross stores as well, they are standing at about $53 a share. their annual high is just $56 so very close to highs. i'm wondering, scott bauer, if you get the right mix, the right recipe for what people want which is competitive pricing and fresh inventory every other week or so, then maybe it really works. there are some good names here. >> there are a few. it's very few and far between, though. the big box retailers have such incredible, incredible head
winds coming at them all the time. and you know, you got these reports today and at the end of the report of kohl's, they actually mentioned something about tariffs. with home depot also, home depot's numbers were not so bad, same store comps were down a little bit, they also mentioned something about tariffs. so i don't know that that really played into these quarter's numbers. these numbers are weak in and of themselves. going forward, though, the tariff issue is only going to hurt these big retailers and again, i think it's going to be the outlier, maybe a best buy that actually reports some good report, but it's a tough go here. these headwinds are really brutal for most of these big retailers. liz: phil, if somebody says i don't want to sit here and guess which one is going to get the right recipe and draw in customers. where else do you think is a better place, a better sector to invest in? >> just about anything else. pick one.
you can just go anywhere, to energy, to commodities. this is a very tough space but it's also very exciting space. there are going to be winners in this space. you just have to pick the right one. really, we are in an environment, adapt and die. we have seen some companies do it. kohl's chart, i was looking at the chart, it was scary. it was very, very bearish. i think at the end of the day they had the right idea. if you can't beat amazon, try to join them. work into this quasi kind of world where you have brick and mortar but at the same time, you have the flexibility to have the best of both worlds. really, i think when it comes to retail, you really have to set yourself aside. you really have to have a product and excitement to get people out of the house and away from their computer. that's the only way to survive in this space. liz: got to give them an experience. like a yoga class in the back when you're selling yoga clothes. >> there you go.
>> great idea, liz. >> yogurt. either way, it works. liz: you got it. >> we live in an instant gratification society now. people want things now. that's the issue we face. liz: gee, you sound like my children. thank you very much. john, scott, phil, thanks, guys. with the dow up 189 points, china's eye in the sky. american companies using drones to solve problems but just to get shots like these, is it worth it? the world's most popular unmanned arircraft turning intoa tool for chinese spies. and who are these guys? we will tell you who they are and what they did to force a major set of retailers make a strong case against the trump administration's china trade tariffs. those two right there, boy, did
already, another 25% would be a 45% tariff on a $130 running shoe. it's not affordable. we had to make a decision in january. we are de-emphasizing china. we are still going to have an r & d center there and some small production capability but the volume is going to vietnam. we will add a third country we will name next year. liz: did you do that math? the 20% tariff on footwear that brooks running ceo jim weber referred to dates back to those two guys on your screen and 1930. those two are two lawmakers by the name of reed smoot and willis hawley. those two together raised tariffs on 20 or was it 30? 30,000 imported goods coming into the u.s., and many say that extended and exacerbated the great depression of 1929. those tariffs, still in place for the footwear industry. now shoe makers, footwear makers
and sellers are putting their foot down urging president trump to remove footwear products from his latest tranche of tariffs which would lead to an additional 25% in duties in shoes and sundry. a retail analyst joins us right now, a woman who loves a great pair of shoes, no doubt. >> no doubt. especially when it comes to running shoes. liz: running shoes, but you see what they are up against. they already had for many years 20% tariffs and now, if they get the 25% slapped on, 45%? untenable. >> we are talking about a pair of running shoes that maybe costs $159 will essentially go up to somewhere around $195, pushing $200. right now, with these impending tariffs, this might cost a family of four about $500 a year, if it goes up it would go into the thousands. liz: kids' feet grow very quickly. so one minute you've got your kids in a 7, next thing you know
it's wait a minute, 8 1/2. here's what, just so everybody knows, what the footwear giants have done. they put their names on a letter and they have sent it to president trump. we can show you some of this letter. it is very strongly worded. the letter to the president on the impact of a tariff hike on footwear. here's what they say. the proposed additional tariff of 25% on footwear would be catastrophic for our consumers, our companies and the american economy as a whole. and folks, i need you to listen to this part. there should be no misunderstanding, it is u.s. consumers who pay for tariffs on products that are imported. it is an unavoidable fact. >> so what is also very interesting about this, i think people are saying it's very easy for these companies to leave china to relocate their manufacturing, there are countries like vietnam close by or even manufacturing in africa. it's very difficult to up and move your manufacturing that quickly.
in some cases it's taken years. there are companies like under armour and nike that have been in the process of trying to move that manufacturing but this takes a very long time. so this isn't something that can happen immediately so that these companies like these footwear manufacturers can avoid the tariffs and ostensibly pass that along to the consumer. it's going to overlap and the consumer is going to end up paying for that. liz: the who consumer, chinese or u.s.? >> the u.s. consumer. yes. they are correct. the consumer pays for the tariffs but it comes in price hikes. that gets translated into what we end up paying for those shoes, for those accessories that are going to get tariffed. liz: it's amazing because jim weber of brooks running saw the writing on the wall and said we could not wait around. we could not wait around to see how this trade war would play. they had to take a huge investment. they are lucky berkshire hathaway is their parent. they had the cash flow and they had to move.
it took months to vietnam. >> right. he had the ability to see around corners in that instance. what about the companies that are just, you know, maybe starting out, there are companies that are smaller that have manufacturing in china, that can't just get up and move that quickly. liz: they employ people here in the u.s. >> thousands of jobs we are talking about. liz: okay. all right. thank you very much. so that was your lesson of the day. smoot-hawley. those two guys, 30,000 different products with tariffs slapped on them back during the depression and many say it extended the great depression. we've got to watch this very closely. we have to watch this, too. the $1 billion drug problem. with the closing bell ringing in 38 minutes, drug maker tumbling at this hour after filing a lawsuit against the department of health and human services. what's it challenging? we are going to tell you in just
a minute. it's the sales of acthar gel, a multip multiple sclerosis drug. the stock is down 25% right now. more aid could be coming for american farmers hurt by the trade war with china. what can farmers expect to see in the aid package? we have it right now. we will take you straight to the white house for the answer when "countdown" comes back.
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liz: more breaking news. the trump administration has just told fox business it could release a farmers aid package by friday. the president has been promising to help out u.s. farmers that have been caught in the trade war crosshairs with the u.s. and china's tariffs and then retaliatory tariffs, then other tariffs. let me get to blake burman, who just got this scoop. blake? reporter: hi, liz.
we are hearing according to sources that this aid package toward farmers could potentially be coming at some point this week. to be clear, we do not have a specific date in mind, though this does appear to be coming into focus -- liz: oh. okay. we lost blake for a second there. i can just flesh this out just a little bit. there you are. go ahead. reporter: i think you got me. i don't know what you got there. let me just start from the top. we are going to know soon here about this second aid package to farmers. don't have an exact date, liz, but we are hearing this could come as soon as this week. here's the guidance we got from usda a little while ago. a statement from a spokesperson says as follows. quote, details on the new trade mitigation program will be forthcoming shortly but we want to be clear the program is being designed to avoid skewing planting decisions one way or another. the administration has yet to provide details on what this program may or may not look like, though as you know, the
president has talked about potentially going up to $15 billion in aid to farmers by buying their product and then giving that product as assistance to poorer countries. for example, here was the president a handful of days ago. >> we love our faerfarmers. we take care of our farmers. our farmers have been incredible. no countries can get in the way of our farmers. our farmers are great patriots. they have done a fantastic job. our farmers are going to be very well taken care of. reporter: if and when this happens, this will be the second bailout from the administration for farmers. as you will remember, last year, the usda pledged up to $12 billion in help for farmers as a result of this ongoing trade war. i will send it back to you. thanks for jumping on in there. always good to have someone who's got your back. liz: right. um-hum. the gerbil fell off the treadmill. we are just getting some numbers here. okay. here's what we're hearing. four cents per bushel.
they are calling this trade mitigation. reporter: right. trade mitigation. liz: four cents per bushel for corn, 63 cents per bushel for wheat and then $2 per bushel for soybeans. reporter: let me jump in and tell you that i have asked about those numbers. i didn't specifically get those numbers or was told that would exactly be it. so we don't know that that's going to be the final plan or the final numbers. but the point here is they are calling this trade mitigation and it is coming here soon. liz: yeah. you're right. this according to bloomberg. we will be watching it. blake, thank you very much. blake burman. well, look, soybeans down, corn up about 1.33%. wheat is up a fraction. it's newton's third law of physics. with the closing bell ringing in 30 minutes and the dow still up 195, nasdaq up 88, here it is, right? for every action, there is an equal and opposite reaction. right?
thank you, austin. the same seemingly true for trade. team trump says you can't do business with huawei. stocks flip out. then a stay of execution, stocks rebound. but how are u.s. tech companies dealing with the china trade roller coaster ride? gary shapiro has his pulse on everything tech. he is the ceo of consumer technology association, here exclusively on what they are all saying in tech land, next on "countdown." what he says needs to be done. ♪ can i get some help. watch his head. ♪ i'm so happy. ♪
russell. the russell is jumping, the largest percentage here, up 1.25%. that's a gain of 19 points for the small and midcaps. the nasdaq up 90. that's a 1% gain. all right. when the u.s. government says cease and desist doing business with company x, you better but you also better be ready for the collateral damage fallout, unintended consequences, whatever you want to call it. here's one. after the administration issued an order on sunday for u.s. companies to stop selling parts to chinese telecom huawei, google shut out huawei from its apps and services. well, here comes the reaction. huawei has an answer for losing google as its smartphone operating system. the ceo of huawei saying moments ago, it is going to have its own operating system no later than next spring. that of course does not eliminate its total reliance on u.s.-made components for its phones, but remember this. trying to break u.s.-made
corning, maker of gorilla glass, back in 2015 at ces, they make screens that can't be broken, i'm standing on them and jumping around on them with my high heels, well, the screens for huawei's p30 pro phone, they have been on there and they were a huawei supplier for many of the other recent phone screens. will huawei have to resort to using a different provider or make one of its own? at the moment, because many of these companies got a 90-day reprieve or stay of execution, they can still trade with huawei until august, these stocks are up. corning up 2.66%. look at micron, u.s. based chip maker built into huawei's p30 pro phones, they are up 3%. yesterday, it was an ugly story as many of these names fell because, yes, they provide to huawei. huawei now say we don't need you guys and they will create their own storage moving forward. we bring in the president and
ceo of the leading tech trade association of producers, the author of "ninja futures, secrets to success in the new world of innovation." gary shapiro here in a fox business exclusive. i'm wondering if we didn't poke a sleeping bear or sleeping tiger to say you know, they're going to innovate on their own. >> thanks, liz. it's great to hear you and see you. i haven't seen you at ces, since ces, when you did a great job. this is a big sleeping dog. there's a lot going on at once and it created a bit of an economic crisis in our industry. on top of the 10% tariffs, now we are facing 25%, we are facing all products but we are also facing this huawei issue. look, we are 2,000 american technology companies. we are great patriots. we believe if there's a national security problem, we should address it. but the ramifications of this one, they go very, very deep. a lot of companies sell to huawei.
a lot of the chip companies do. if you think about it, how an apple phone is made, for example, china says only $4 of the product is added in china but the other $100 or $200 comes out of the u.s. and other countries from our chips, our components, our i.p. which we lead the world in. we are taking away a major market from our american companies. of course the stock market, the stocks are going down. liz: so today, all of these names have been in the red yesterday, qualcomm, cree, momentum, lam research. lamentum is not on this, i don't know if we can get it up, but it was crushed yesterday. today, it is having an outsized jump because of this 90-day reprieve. you do understand what president trump says is very important to do here, and listen, the australians were ahead of the united states on this. they went and investigated the whole situation and realized that if you let the chinese set up a whole 5g network in your country, i believe the way they put it was that you open the
door to the spymasters from beijing. that they could come in and cause major havoc. we certainly don't want that to happen. but we also don't want our companies like broadcom and the other names to be suffering when one of their largest customers is pulled right out from under them. what's the answer? >> well, i don't have the national security clearance and i have spoken to people who do. they are absolutely convinced there's a problem here. at the same time, look, we are cutting off our nose to spite our face. we already put $1 billion in tariffs on 5g products coming to the u.s. we have slowed down our country and its competition with china. when i talk to our members, they agree with president trump in the concept that what china is doing is not fair. we have to do something about it. but we have other alternatives in terms of what they're doing. although we keep talking about huawei this week, the executive order released by the president is so broad that we're not sure whether it even stops us as americans from using our buying any chinese product. it's just not there yet. it's an emergency power.
it's a very unprecedent ed sinc world war ii and it's not narrow. if you want to go after a real problem, make it as narrow as possible, focus on the issue, focus on 5g products from huawei but don't cover every product -- liz: ban huawei products but don't ban u.s. companies from selling to them. i need to ask about these chips because my question becomes the unintended consequences. will these two chinese chip makers and nobody has ever heard of them, certainly not in the u.s., are they going to step up their game and build home-grown supply chains where nobody over in china will need a qualcomm chip? >> the huawei debate and the whole tariff debate with china is forcing china to be more competitive with us. it's forcing them to create a home-grown industry. it's putting an economic fence
around the united states and saying we want to isolate, we don't want to do business with the rest of the world. look, last week canada was a national security threat and thankfully they're not this week. but our allies are threats? china is a threat? others are threats and we are telling the rest of the world, look, the u.s. wants to go alone. that is not a healthy thing for any american company. we are leading the world now in innovation. we have the best companies in the world, we have the best strategy and we are stepping on it, we are hurting our highly skilled immigration, we are imposing tariffs on our companies and on americans. we are affecting the stock market is more volatile than any time, up, down, up, down, depending on tweets. it's not a great situation. we are creating false emergencies. on the other hand, china is unfair, we have to do something but we have alternatives. liz: i know. before you go, gary, i have to bring up another chinese company that is certainly in the crosshairs. dji. this is a consumer electronic drones. and the issue is that these drones, popular drones, there
are reports that made in china, they may be sending sensitive flight data to their manufacturers in china where it can be accessed by the government there. do you feel the chinese made drones pose a national security threat? >> i think if our government says there's a national security threat, there is. but it should be highly specific. for example, drones going over areas that should be secure in the u.s., we should not allow. i'm not aware of any factual instance that's been release toreleased to the public of their drones doing what they say. maybe it's classified but the government has to take the steps they view necessary and we have to trust our government. my only urging is don't throw away american industry, all these great things we are leading the world in, as part of this effort to become economically self-sufficient and isolationist. it's really not worth it. we are going to suffer and our kids are going to suffer in the long run for the short-term gain of punishing china. there are other alternatives. several of them. liz: gary, always a pleasure to have you. thank you very much.
the voice for technology in america. thank you so much. good to see you. the road to regulatory success. closing bell ringing in 16 minutes. dow is still up 195 points. it's a nice day for the bulls. t-mobile and sprint making their full court press. up next, we've got exclusive details on what the fcc and now the doj are doing right now that could signal a clearing of the lines for telecom titans to join forces. charlie's breaking that. and download my first ever podcast, everybody talks to liz. it's available at fox news podcasts.com. apple podcasts, all of the podcast references you can find. listen to my interview with a businessman who is a drug addict turned multi-millionaire, author of the book "i forgot to die." get ready. the second one drops tomorrow. wait until you hear who we've got. "countdown" will be right back. e and manage my portfolio.
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liz: well, the road to regulatory success for the t-mobile and sprint merger is suddenly turning a little bumpy. look at shares of t-mobile and sprint. they are slipping into the red on news that charlie gasparino has right now. charlie? >> yeah. i mean, looks like i moved it down. not like i was trying to. here's what we know. this is interesting and let me just explain it a little bit. there's the doj antitrust review that needs to happen. also, there are states looking at this. new york and california, to possibly bring a case. we clearly know that state ags may bring a case. liz: rob mcdowell sat here and said this. >> we should point out if the doj doesn't bring a case and the states do, the merger is basically going to go through although it will be costly. but doj joins the states in any
case. that's where this thing gets really nasty. what we do know is this. we do know that the doj antitrust has spoken with ags in at least two major states that could bring a case, new york and california. here's the rub. we don't know what they said. i have no information on exactly what's going on. i do know that there's been outreach between the antitrust division of the u.s. department of justice and the state ags in those two states, and here's what's interesting about this. again, the markets are interpreting this story, because you can see the stock took another leg down when i tweeted this out, they are interpreting this as, you know, they are joining a case, that the doj antitrust is going to join a case. look, it's still going down. is going to join a case with new york and california. just so you know, i don't have that information. this could simply be makam
delrahim from the u.s. department of justice going to those state ags saying look at the terms that t-mobile and sprint have agreed to, look at what ajit pai agreed to approve, the various divestitures, including the boost, the prepaid wireless market which is essentially for less affluent people. look at some of the priced stuff they are thinking of doing, price freezes for three years, look at the fact they can probably, you know, a stronger combined company can engage in price competition. you know, we don't know if he's given them the pro argument or saying let's get together and -- liz: can we put intraday of sprint up. this is why. i'm seeing now hitting the reuters wires. nyse, new york stock exchange order in balance for sprint, 375,000 shares on the sell side. >> yeah, that's -- i think that's on our story. i could be wrong. liz: it just hit. >> it could be something else. liz: literally just hit. >> that's kind of what you've
got here. listen, i will say this about this stock. i don't go out of my way to move stocks just so you know. it's nice to have impact and influence, but these are very volatile stocks. and if you're the average guy out there and you're thinking you want to trade around on this stuff, you know, you know, just be prepared for wild swings on every bit of news. i would say take a long-term view of this. do you think it's going to happen, you think makan delrahim is going to approve this deal? then buy it. liz: i would say to our viewers, why do you have to watch charlie's segment aside from his imitation of dr. evil? >> yes, very well. liz: yesterday's interview with rob mcdowell, the outside counsel -- >> former fcc commissioner. liz: hit bloomberg, politico, kansas city business journal and cable facts. everyone picked up -- >> that's an interesting publication. people should read it because it does find amazing inside information about the cable
industry and some of these issues. i will say this. rob thinks makan delrahim will approve it. why does he think that? maybe selling more of the prepaid. why does he think that? because he doesn't think he will buck ajit pai, the fcc chief, that he will buck some of the people inside the white house. liz: i've got breaking news i need to show you right now. let's take that -- with the closing bell ringing in seven minutes, this was happening. this afternoon on manhattan's west side -- >> you stopped my stuff? liz: a pack of goats. look at this. the poison ivy. >> i was moving stocks. liz: you had your five minutes. these are goats. >> these aren't even bulls. liz: they are goats. they were released on manhattan's west side to weed out the area and today's "countdown" closer will help you weed out your portfolio. >> i was in italy once and i was attacked by goats.
can't see what it is yet.re? what is that? that's a blazer? that's a chevy blazer? aww, this is dope. this thing is beautiful. i love the lights. oh man, it's got a mean face on it. it looks like a piece of candy. look at the interior. this is nice. this is my sexy mom car. i would feel like a cool dad. it's just really chic. i love this thing. it's gorgeous. i would pull up in this in a heartbeat. i want one of these. . .
♪ liz: too many toxins in weed killer? release the hounds, i mean the goats. look what they did. this is manhattan. they brought in a bunch of goats. they released them at riverside park. so that's right on the west side for those of you who don't know, overlooking the hudson river to start eating up all the weeds. i like this. i think that is a natural way of fixing a problem. but today's "countdown" closer we figured let's bring in somebody who has advise how to weed out the portfolio. no stocks inches allowed. joining us tim chubb, the chief investment officer at gerard. you have to listen to him. he has 3.3 billion in assets. so he is doing something right. tim, what are we doing? don't we need to make sure we have all the weeds out for the
nice summer garden? >> absolutely. real quick, thanks for the goat reference. we have actually quarterback down here in philadelphia who aspiring a goat. you can send him down here to philadelphia. liz: i see. >> i have a couple stock picks today. i think it is important for investors to take a hard look what they own, look at the chinese exposure looks like. i thought i would bring a couple companies really focused on that in the portfolio, that don't have much exposure to china. first, bank of america. i know we've had our struggles with the big banks over the years but bank of america has done a great job cleaning up their balance sheet. they made it through all the fines, issues with the acquisitions they made over the last couple years, throughout the financial crisis. now they're returning capital to shareholders. they have reduced head count, they have reduced branch count.
they are lean, mean, ready for responsible growth as moynihan likes to say. liz: you have news on home depot. i guess the last hour 1/2 rbc cut its price target. that doesn't concern me so much. the stock annual high, 215. right now at 191. where do you see if the housing market going? we got april existing home sales, the second straight month where we saw a downward move not for bad reasons, just tight inventory? >> yeah i think home depot is going higher just because it has a unique structure it's a duopoly. there are two companies, one competitor in loews. there is a lot of pro trucks out sidelined up to pick up supplies with the professionals. 15, 20 trucks. they really cornered that market. that has is excited about the stock.
liz: tim chubb be 3 billion in assets. [closing bell rings. that does it for "the claman countdown". u.s. was lifting some trade restrictions on the chinese company huawei. so the dow settles in higher by nearly 200 points, 197 points, right around session high. good stuff, good to be with you i'm connell mcshane. melissa: i'm melissa francis. this is "after the bell." tech-heavy nasdaq ending in positive territory. nasdaq closing up 1%. we have more on big market movers. here is what is new at this hour. connell: breaking news at this hour on capitol h