tv Countdown to the Closing Bell With Liz Claman FOX Business May 31, 2019 3:00pm-4:00pm EDT
trying to find some equilibrium here. hard to imagine we could rally into a weekend like this but liz claman, it's been a strange market that has done everything opposite of conventional wisdom. liz: yeah. one of our producers said it's not whack-a-mole, it's whack-a-bull. the month of may has been really tough. let's head into june. thank you so much, charles. breaking news. mexico vowing at this hour to fight back. the mexican deputy economy minister just announced that mexico will defend itself against the sweeping tariffs president trump just announced last night in a tweet, adding that president trump quote, uses trade like a pinata that he hits to solve any problem. the bombshell 5% tariffs on mexican exports, threatening to upend the new united states mexico canada trade deal. the mexicans aren't the only ones shoving back. you would expect them to. but u.s. business groups and members of the president's own
republican party and administration are crying foul over his decision to impose tariffs that would kind of stair-step higher by 5% increments all the way through october. the u.s. chamber of commerce, the latest to oppose the move saying it will do little to solve the problems at the border and will only hurt american companies doing business with our nation's third biggest trading partner. stocks started taking it on the chin overnight and then continue as you see right now into this final hour of trade. the dow losing 289 points. the s&p down 31. the nasdaq down 99 points right now. tech, energy, auto makers are all tumbling on this last trading day of the month. going into today, it was already the worst trading month all year. farmers taking the news particularly hard after struggling with current tariffs and mother nature's wrath. could silicon valley step in to be agriculture's knight in shining armor? the ceo of something called the farmers business network is
already saving farmers hundreds of thousands of dollars individually just when they need that money the most. this is a fox business exclusive. the top tech analyst to grab all the attention after saying tesla is in a code red situation is ready to pronounce how he feels now about uber, deciding to buy or sell uber stock? wait until you hear what dan ives reveals before you do. plus, if costco is known for discounting everything under the sun, why is it now offering one very small product that costs $400,000? we will show that to you. and we will show you exactly what traders, one of our top floor show traders did and the trades he made when he woke up this morning. and charlie breaks it on the t-mobile/sprint telecom tango. less than an hour to the closing bell on this friday. let's start the "countdown."
liz: okay. for the moment, we don't want you to be distracted by the dow which is losing about 300 points right now. look at the small cap russell 2000 index for the month of may and the dow transports. what an ugly may it's been for these two indices. we have the russell 2000 down nearly 8% just for this month, then the transports getting clocked 10% to the downside for the month of may. the bears come out growling and clawing their way through the final hour of trade. here we are on this week where we are looking at may, as we just said, it's whack-a-bull month. president trump's mexico tariff threat was the mallet used to strike the final blow to stocks on this last day of trade for may. the dow is posting its first monthly decline in 2019 and the longest weekly losing streak in eight years. the reaction to the threat of duties on goods coming south of our border was very swift. the mexican peso fell sharply to its weakest level in more than two months against the u.s. dollar. if we show you the mexican peso,
we want to quickly, you see that, it's sort of a three-month picture. it doesn't quite tell what we are trying to tell you here. let me categorize this here. there are 19pesos that will buy you a single u.s. dollar. it fell 2% over this 24-hour session. european markets promptly tanked the minute they opened. oil, closing down nearly 6% to $53.50 a barrel. right now it's $53.37 so it's going even lower in the aftermarket session on fears that this lucrative cross-border energy trade with mexico is now in jeopardy. what are we talking about here? did you know the u.s. imports 680,000 barrels per day of mexican crude and the u.s. also exports more refined fuels to mexico than any other country. there is a very symbiotic relationship. adding to the misery, china's retaliatory tariffs on u.s. goods taking effect just hours ago. again, china, not mexico.
plus there is a threat of a chinese black list of u.s. firms being put together after the u.s. put huawei on a blacklist for companies here that were selling to huawei. take a breath. let's check out the big tech news on amazon, apple, google, facebook and microsoft. they are all down. down anywhere from 1% to nearly 3%. facebook is getting killed, down about 3%. we have amazon down 2%. apple has really struggled over several days. today down 1.33%. just when we thought we might be on a clear path to replacing nafta because we have the usmca deal, members of president trump's own republican party are pushing back, saying it's now imperilled due to the fact president trump tweeted last night about instituting new tariffs on mexico. senate finance committee chair chuck grassley slammed the president's new tariffs on mexico saying quote, trade policy and border security are
two totally separate issues. quote, this is a misuse of presidential tariff authority and counter to congressional intent. now to the democratic side. speaker nancy pelosi had indicated before the president's tweet came out that yes, everybody was on track for signing the usmca, saying just yesterday quote, we are on a path to yes, but it must be a path that leads to an agreement that delivers positive results for american workers and farmers. u.s. tariffs on mexico would officially start on june 10th. these are the ones the president announced last night. at 5%, where they will then steadily increase the first of each month all the way to 25% by october 1st, and he instituted these, he says, because he wants mexico to stop the flood of migrants across the border. to edward lawrence. edward, i know you're there at the white house. the trump administration asked congress to help fix the problem.
where do we stand right now? because both sides of the aisle are not thrilled. reporter: yeah, exactly. there's a lot of pushback from republican allies of this white house in congress. the acting white house chief of staff mick mulvaney said this administration asked congress to help. congress did not help and went on break, he says, so then he says now that they are going to ask the mexican government to help stop the flow of illegal immigrants to our southern border. white house press secretary sarah sanders reiterated this is a crisis. >> we are asking mexico to enforce their own laws to help stop the people coming in from central america. we have seen a massive influx of people coming from that region and they have certainly the ability and the legal authority in which to deal with it. we are simply asking them to do that. reporter: the mexican president sent a letter to president donald trump saying they don't want a confrontation over this, but mexico will honor human rights, they said. the trump administration says that there are ways to avoid these tariffs for mexico and outlined three of those. the acting secretary of homeland
security says one, step up security efforts on their southern border with guatemala which he says is a natural choke point. two, target trans-national smugglers and arrest them. and the third is to align the asylum policy with the united states, allowing asylum seekers to stay in mexico while they wait for asylum in the united states. now, while the white house is dealing with all of this and the fallout, they are also dealing with escalating tensions and retaliation from china. the chinese are now seeing their own version of a blacklist. they are calling it an unreliable entity list. basically, this could do or could target u.s. companies. it's much like what the u.s. commerce department did with huawei, as you mentioned, putting huawei on our list. that banned u.s. technology being used for huawei as well as our technologies for huawei rolling out the components of 5g. the chinese, this could set up the chinese to go after big companies like apple. if it goes on that list, apple has a huge footprint in china,
four r & d centers in chinese cities. they also make production of the iphone there in china. the chinese could use this as a negotiating tool. as you mentioned, today is saturday in china so there is increased tariffs in place. back to you. liz: i do want to just clarify something because earlier in the day, there was a report from the "wall street journal" dow jones that robert lighthizer, the trade representative, has basically argued that slapping fresh tariffs on mexico could imperil the new nafta and he has discounted that, is that correct? he says that's not true? reporter: it's a little muddied. robert lighthizer has testified to the fact that additional tariffs, whatever they are, not specific these tariffs, additional tariffs are a hindrance to getting the ratification of usmca. today, the "wall street journal" is reporting that lighthizer was not happy about this move going forward. i can tell you when the foreign minister of mexico comes here, he is not going to meet u.s. trade representative robert lighthizer, the u.s. trade representative's office says there's no plans for that to
happen. liz: we will be watching it. thank you very much. the tariff nightmare could drive traders and investors to drink but there, too, a bad hangover awaits. booze makers constellation brands, budweiser and heineken all in the red at this hour, a loss of 1% to anywhere to 6% for constellation brands. these companies depend on mexican brewers to make what they sell in the united states. to constellation's point, they make corona beer. in fact, constellation imports nearly all of the beer it sells in the u.s. from mexico. brown forman's tequila brands come from south of the border as well. while you, the investor, might be drowning your sorrows in patron silver, let's look at actual gold. the precious met yal climbing ta seven-week high, up 1.5% or 18 bucks per troy ounce. $1,311 is what a single troy ounce would cost right now as investors flee to the safe haven commodity.
what are traders doing? they are not running from the cameras. tim anderson, you are taking a contrarian approach, i hear. >> i just think you have to in this kind of market unless you want to go hide in utilities or the bond market, because that's where you really get the extreme overreactions to the downside and that's where you are going to get the fastest recovery when a lot of these problems go away. liz: phil, tell me what you are doing. oil is such a big story today. obviously it's the biggest monthly drop in six months we have for the month of may. on top of it, we do all this refining, importing, exporting crude across the border there in mexico. is that what's at work and not that i mind as a consumer oil at this level, about $53, that's great, but tell me how this is going to show spasms within the actual market. >> well, kind of interesting, the relationship between the u.s. and mexico. it's kind of crazy because when you think about it, mexico owns
some of the biggest oil reserves in the world, yet they fail to produce enough really to supply their own people and yes, they do export oil to us, mainly so we can turn it into gasoline and sell it back to them. so if we are going to tariff, for example, the oil coming into this country, you know, we will sell it back to them, they are going to have to buy it back at a premium. i really don't think that's a major impact because it's going to go around in a circle. natural gas is another thing that we send a lot of that to mexico as well. i think what's going on with the oil is more about the fallout from the trade war situation and how it's going to slow the economy globally. that's what the market's pricing in. they are also pricing in that the trump administration seems to change their mind every five minutes. there's a lot of concern in the market that the trump administration is going to grant some type of waivers to buyers who buy iranian crude. i think all of those things
coming right now are really pressuring price. having said that, i think oil's ridiculously cheap right now. oil prices are now pricing in a major slowdown in the economy that we are probably not going to see. we are actually going into the highest demand period of the year for u.s. oil supplies. refiners are going to need a lot of oil so this is great news for gasoline prices. how do you plan? right now, we close below the major support today so there could be more downside. buy puts and calls. i'll tell you, the market's going to make a big move next week. i think it's going to be to the upside. but i have to respect that we close below support, you know, to play it both ways and i think you make money. liz: okay. chris, you have to tell me because as we look for the end of the month numbers here, the volatility index, the fear index, is up 40% for the month of may. tell me, isn't anybody going into this weekend long? >> oh, yeah. i think people are going in long but they have taken protection.
that's one reason why we have had the pullback we've had. i think a lot of people, again, a lot of people missed that 5,000 point rally which started at christmas. we were down around 21,500, rallied up to 26,500. if you have been waiting to buy, you need to buy on the dips. so the big levels everybody is looking at if we get there, is around 24,100, that would be halfway back. i think there's a lot of people waiting to open their checkbooks there. so if anybody is long, i think they have already got their projection on for the weekend. liz: tim, phil, chris, get your protection on for the weekend. trading protection. okay. never mind about that. all right, gentlemen, thank you very much. we are coming right back with a story, help for the farmer from silicon valley. dow jones industrials down 302 points.
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liz: this just hitting the tape. breaking news from mexico's national farm council, saying moments ago that it supports quote, surgical application of retaliatory tariffs now aimed at u.s. and states that support president trump's republican party if tariffs are enacted. let us not understate what that means. this is getting extraordinarily
political. last night, president trump said he will start implementing 5% tariffs that stair-step up throughout to october from 5% to 25% and now we are hearing from the mexican farm bureau they are encouraging retaliatory tariffs. they also say that quote, exports to mexico including grains, pork and apples could form part of a new list of possible mexican targets for retaliatory tariffs. well, our farmers here in the u.s. have been on the front lines taking all kinds of hits in the trade war from the beginning. look at how far soybean prices have plummeted since the trade war was announced a year ago in march. down 15.33%. the exports are way down, 8%, 8.2% from first quarter of this year to last quarter -- first quarter of last year. that goes from about $5 billion now down to $4.6 billion. china, mexico and egypt, the top three importers of american
soybeans. trade talks with china, of course, falling apart in recent weeks and now president trump has threatened blanket tariffs on mexico. the trade wars cutting farmers off from customers and they are raising prices on supplies but could technology come to the rescue and save farmers, not just a couple of bucks, but hundreds of thousands of dollars? somebody is doing it. it's called the farmers business network, bringing silicon valley smartness to the farmers valleys. it's attracted the support of big name tech investors like gv, formerly google ventures, and t. rowe price. the farmers business network yesterday launched a quote, prevent plant return on investment calculator that factors in markets, federal relief, yield potential and the weather to help farmers decide what to plant and what not to plant. could it have predicted president trump threatening mexico with new tariffs just last night? let's bring in the guy who founded it. he's the ceo of the other fbn,
we like to call it, the farmers business network. thank you for being here. let's right off the bat explain to our viewers what farmers business network has already done for farmers. give us an example so we have an idea of what you do. >> yeah, absolutely. farmers business network is a network of farmers and their information, and we want to empower farmers using a wide network of analytics and information. what we do is we provide commerce opportunities for farmers. an example of this is we launch our own brand of hybrid seed genetics to give farmers an opportunity to buy products at a much lower price than what they would have to buy from a monsanto or major player. i was talking to farmers just a few weeks ago who this year saved in some cases hundreds of thousands of dollars by switching to these seed genetics and not having to pay royalties, pay premiums for products in a year where commodity prices could easily be depressed and it could be a tough economic
environment. liz: how are you reaching out to them? these guys are in the heartland, many of them. how do you come to them and say look, use our service, use this app, it's an app, correct? >> well, there is an app, but we obviously do a lot of commerce with the farmers so they can transact with us through a mobile app, they can transact online through our internet store. we have the most active internet presence in the agricultural sector so there's multiple ways for a farmer to interact. we find them through social media and through people in the field. we have actually hundreds of people in the field in the u.s. and canada who make farmers aware of our services and then many times, farmers will choose to buy through our technology or sometimes they will purchase directly to our people who are out in their communities. liz: you are obviously out there talking to a lot of farmers. what are they more fearful of, floods and tornadoes or the random, seemingly random tariffs that are being slapped right and left or threatened by the administration? >> they are both equally challenging.
farmers deal with the weather all the time. it's something that they are very accustomed to. i think when tariffs are imposed, especially when it's a surprise, that adds something new into the mix. it makes a complicated equation in terms of marketing your grain or running your farm, all the more complicated. so weather has been really bad this year for planting. the worst in half a century. but the tariffs compound that problem and make it even worse. liz: thank you very much. it's called the farmers business network. good for you for helping farmers out during a very difficult time, whether it's mother nature or man-made at this point. we are watching it. thank you so much. >> thank you for having me on. liz: we are heading back down to what appears to be session lows with the dow jones industrials down about 324 points. the low is down 347. we have got our eye on it for you. we have your back. and banging pots and pans and bucking the trend. william sonoma rallying at this
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liz: breaking news, folks. we've got a bit of a pile-on in the commercial break. when i say pile-on, i mean a bunch of companies in a flurry of headlines hitting the tape. number one, chevron. chevron moments ago coming out to say that the imposition of new tariffs on mexico may quote, impair development of new markets. shares of chevron down 1% but we should also remind you that companies like shell, valero and chevron are basically the companies that could really see havoc wreaked on them because they are the ones who use the most when they import mexican
crude. then you can look at phillips 66 and marathon petroleum. they could face challenges and this is a big if, if mexico counters with retaliatory tariffs on gasoline exports. now flip it over to chipotle. this just in. chipotle mexican grill saying just moments ago if tariffs on mexico are enacted they would quote, negatively impact company costs. the company added that they are monitoring the situation with suppliers to minimize the impact of new tariffs on mexican imports. i'm quite sure they impact a lot of avocados and certainly tomato crops. we are watching all this as it develops. chipotle down 3%. let's flip it to shares of one of retail's most well-known names, sliding to their lowest level in more than four years. shares at banana republic, gap and the soon to be spin off old navy, falling in the company's fiscal first quarter challenged by bad weather and tariff tensions. gap is down ten full percentage
points but across the pacific, it's a totally different story, where the retailer is still focused on expanding its brick and mortar presence through its flagship brands and its lululemon competitor, despite ongoing trade wars. gap is down about $2.09 to $18.51. gap is not the only retailer feeling the pain as stocks tread this sea of red. costco also under pressure. let me get to kristina partsinevelos, she's got the details from the floor of the new york stock exchange with headlines hitting right and left. reporter: you have costco warning prices could increase due to the ongoing tariff wars. this comes after the retailer missed on its same store sales target in its latest quarter. things could have been a lot worse for costco if not for one major sale. richard galante confirming the purchase of a diamond ring reportedly costing in the $400,000 range on yesterday's
analyst call. no word yet on who made the purchase or where it happened. costco shares at the moment are down $1.30. the winter season, though, is also taking its toll on casual dining. red robin shares flying south this hour after the company lowered its full year forecast due to slumping sales and growing wage rates. red robin currently trading right now, look at that, down over 17%. that's the lowest close we are seeing since 2011. we also have to talk about dell. dell shares are in the red. the computer and equipment maker getting the cold shoulder in china. dell with its first decline in ten quarters. shares, you can see, also dropping quite a bit, down 11%. coming up, superstar tech analyst dan ives.
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liz: we've got this breaking news. mexico's foreign minister is saying just moments ago that the process of negotiation has quote, started. now, there are reports that he has spoken by phone with jared kushner along with mike pompeo, the secretary of state. mexico's foreign minister says he heard quote, interest and respect on the call about the letter from mexican president to president trump. mexico's foreign minister is about to board a plane for washington. we are not sure with whom he will meet. we were told it was not lighthizer. robert lighthizer, the u.s. trade representative. but what we will do is continue to monitor the flurry of trade
headlines and nobody better than our d.c. team of blake burman and edward lawrence so please just stay right here, because the dow is now down 336 points on all of this news. and how is it affecting general motors, ford, toyota and fiat chrysler? well, just look at the shares. they are getting crushed at this hour by president trump's threat of 5% tariffs against mexico that will be expected to start june 10th unless, as the president says, mexico does something to stop the flow of migrants across the southern border. it is not just the auto makers getting slammed here. makers of car parts are under immense pressure at this hour. you've got stoneridge, dana holdings, choice point, car parts makers are getting slammed. the companies have supply chains that rely heavily on cross-border trade with mexico so as we continue to monitor these stocks, let's just dovetail to another car story. the ride hailing name we have our eye on at this hour, uber.
uber is up just about a third of a percent after the company reported a $1 billion loss in its first quarter results yesterday. our next guest, though, is not losing any sleep over uber. in fact, he's calling it quote, the amazon of transportation. wedbush managing director dan ives joins us now. i'm having a flashback to the dot-com era where people said no problem, a billion dollars in losses, that's a good thing. explain how you vision that. >> well, that continues to be sort of why it's a battleground stock between the bulls and the bears, because we know profitability [ inaudible ] that's how you evaluate. we view it similar to how we viewed amazon a decade ago, in terms of amazon transportation on some of the parts because you have to view it on ride sharing and autonomous. no doubt it's been a disaster so far since the ipo as well as
with lyft but we are starting to see legs. last night was a start in the right direction. liz: you called it a disaster so far. this is a stock that ipo'ed at the list price of $45. we are certainly well below that right now, at $39.99 at the moment. well, $40 even just a second ago. as we just want to let our viewers know, we just hit a brand new session low, down 350 points for the dow jones industrials. they are dealing with a lot of price cuts, discounts, incentives, and that's hurting revenues. how are they going to put that genie back in the bottle and start raising prices? >> that's really going to be the line in the sand, especially when it comes to a price war with lyft. i think what you saw last night is that price war is really sort of starting to diminish a bit. what they are getting is a percent of rides, that's about 20% in line. that's going to continue to increase but that's a balancing act with drivers because ultimately, drivers are the lifeline of uber and lyft. if you look right now, i
continue to think this is one, it's an execution story. it's really about eats. can they monetize the platform. we call it the amazon transportation because they have a unique opportunity with 100 million consumers to monetize, which in my opinion, you count on one hand the amount of stores i have seen over the years that can do that. liz: but isn't the competitor slicing into profits in south america and grub hub doing the same thing here. there are other competitors out there. i begin to wonder what happens when the core business, the ride hailing business, gets faced with what could be a negative game changer. have you modeled for when waymo, the autonomous ride hailing plan spun off from google, enters the market? >> that's the x variable. when you look at where waymo is, it's clearly well ahead of where uber is. uber being number two. then you look at tesla and others. right now, autonomous, that's sort of an x variable i think investors are trying to get
their arm around. that's the cherry on top of the sundae in terms of what this could be in valuation. this will be an uphill battle for the stock to move higher on uber, just given -- liz: can i dovetail to tesla? tesla has faced an uphill battle recently. in fact, its stock is touching fresh recent lows. you had said may 20th that it was a code red situation for tesla. here we are ten days later. what is it now? if not a code red? >> this continues to be -- it continues to be not just a code red but i think alarm bells are going off just because there's worries about what unit growth will look like in the u.s. the big issue is can they be profitable in the second half. i think that's a problem. right now that continues to be a challenge. if they can be profitable in the second half, they don't hit those units, they will have to raise $2 billion more in capital. that's why right now the bears, they smell blood in the water. i think the doomsday scenario is
a little over the top but no doubt right now, this is going to be the defining chapter for musk and tesla if they can get through this. liz: we had two leaked e-mails from elon musk indicating some positive notes. does that concern you, or encourage you? concern because who is leaking e-mails of positive news? i'm not arguing that this is market manipulation, but that's news that somebody out there wants to get out. do you believe that news? >> look, right now it's been hurricane-like headwinds. they need to do things in terms of both employees as well as even investors out there to try to make them feel like there's a pilot in the plane. no doubt the focus has been on expenses as well as on demand but right now, it's a prove-me situation. until early july, until we start to the coming weeks, you won't know what unit growth looks like. right now they are tracking under expectations. liz: under expectations for unit
growth. one-word answer. your call on tesla now? >> right now, avoid it. i think it's a yellow light right now. i don't view it as red but it continues to be a step down. liz: went from code red to now yellow light. finally, your call on uber? >> you buy it and ultimately if you have a long term time horizon, i view it similar to amazon a decade ago. liz: good to see you. dan ives. he is one popular or unpopular, depending on whether you own the stock, analyst. thank you. glad you're here. amazon, speaking of amazon, looking for a boost with the closing bell ringing in 17 minutes. the e-commerce giant reportedly looking to add sprint's boost brand to its dance card. but that deal only possible if t-mobile and sprint are allowed to pair up first. up next, gasparino, the man, the myth, has new exclusive details on the next move in this telecom tango. termites.
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liz: amazon eyeing the tech jungle and before we get to that, i do just want to tell you, we are down 316 points. the market did gap down a bit more earlier. we are slightly off the lows but still an ugly final 12 minutes to trade. we are going commercial-free now, folks, because we aren't sure what headlines are going to hit the tape and how it will affect your stocks. jeff bezos' online behemoth interested in pairing up with boo boost. earlier, comcast was like no, thanks, boost, we don't want it. we're not interested. joining us, charlie gasparino. charlie, all amazon and comcast aside, what's next for t-mobile and sprint? >> i will give you some headlines. i think we moved the stock a little bit off its lows with
some of this since i tweeted it out. couple of things. there's been a lot of talk about comcast -- sorry, comcast on the brain here, t-mobile and sprint creating a fourth wireless network as a condition to get it through doj approval. why does the doj ask for much more conditions and concessions for them? quite frankly, it's -- i got this confirmed today, liz and i were reporting earlier in the week, they were worried about separate suits from the state attorney generals that could win possibly in lower federal courts that make them look bad and could drag this thing out for years. so they are trying to get more concessions out of sprint and t-mobile. one of those concessions is not, at least from the company's standpoint, from what i understand, from people close to them, is the creation of a fourth network. it is to sell wireless to maybe back to the government to do some sort of sale to somebody else, to do an auction, but to sell wireless out of its network. now, does that create a fourth
network, fourth wireless carrier, like at & t and verizon, does that create a fourth? possibly. does it do something else? possibly. it is not their intention, though, and this is where i think some of the media has missed this, to necessarily create a fourth wireless carrier. it's not there. even -- liz: so i'm sorry. sprint and t-mobile are supposed to help somebody else create a fourth competitor? >> that's the whole thing. and they're not. liz: that's crazy. >> they contend they're not. they contend they may divest some spectrum, that may lead to a fourth wireless carrier or somebody else. listen, charlie urgan could get into the game. liz: let him on his own decision and his own two legs. >> right, right, that's the whole point here. i think we should -- i would say a couple things about some of the reports coming out. some of them make sense, some of them don't. i will say this. we are in the final innings. this thing could be any day now. could be next week, for all i
know it drags on for three weeks but clearly we are in end game time. it could happen next week. i'm going to say this. they are meeting every day. there is a certain limit to what they're not going to do. i think selling spectrum depends on how much, is in the ballpark of what they will do to make the deal work. depends on how much. they contend, now, this is what i'm hearing from them, this is not about creating a fourth network which may come. but i want to again emphasize, why are they doing this. makan delrahim, even though he's under pressure from the trump economic people to approve this deal because they think this is good for 5g, the trump economic people don't think it's an antitrust concern, he is worr d worried, the antitrust chief, worried about state ags suing and because you are going from four to three carriers, they get a lower federal court to agree with them, and this thing is de facto held up, that you know, he could have had a role or say in,
so that's what he's doing. he's looking literally, my sources are telling me, makan delrahim is literally looking to thread that needle, to get the deal through, but make sure there isn't a sale. might not be able to compromise, those two in the end. just so you know. i'm not saying this deal is going through but that what is he's trying to do and look, the stock is moving up off its lows based on our report. so i would just say this is imminent. could happen next week, for all i know it's going to happen monday or later today. here it's end game time. they are meeting daily. concessions on the table, from what i understand, is getting rid of -- is selling wireless spectrum, however that's done and how much. it is not these guys sitting around oh, let's create a new company. at least that's what they're telling me, okay? i can only go by my sources. liz: charlie, thank you. charlie gasparino. we wanted you to take a quick look at some of the s&p 500 companies that rely the most on revenue from mexico.
we could start with kansas city southern. this is a railroad. it has nearly 48% of its revenue coming in from mexico. that stock down 4.5%. union pacific, sempra energy, borg warner, these are auto parts, down or flat. we do have borg warner down 3.25%. one name we didn't put up, i don't know if we can, mpaa. this is motor car parts of america. those shares are getting crushed, down about 6.6%. hanes brands, pepsi, the list goes on. >> can i ask a stupid question? you can ask the guys at the floor show. is this unusual volume or is this a sunday -- a friday selloff that's perpetrated by some headlines, trade headlines that don't have a lot of volume -- liz: tim, can you hear us? tim anderson, are you hearing
charlie and i? we want to know as we go commercial-free here because the market is very, very shaky, what's the volume on the floor of the nyse? >> volume is not extraordinarily high. we are going to run maybe about 600 million, maybe a little bit more than that by the time we close. that is not extraordinarily high volume. clearly, the trade headlines this morning are a major contributor to the selloff but the market's been in a little bit of a downward bias, even coming into today. so i think there are some other issues out there also, some slowing global growth numbers although the u.s. economic numbers we have had the last couple days have been constructive. chicago pmi today for april was up a little bit. vis a vis the previous month. personal spending and income were strong. employment market continues to be strong. liz: okay. we also, i need to bring this up, folks. we need to get a ten-year
treasury yield up. it has now gapped down again. it had been at 2.14%, below 2.15%. now it is at 2.13%. there is a serious flight to quality happening right now with five minutes, five minutes left before the closing bell rings. again, commercial-free because now we are down 340 points on the dow jones industrials. nasdaq getting crushed. gold is up $18. now we are actually seeing thin volume or not, some real flight to quality. here's the ten-year yield, 2.13%. todd colvin, tell me what you are hearing and seeing down there. >> well, the ten-year note yield trade didn't come overnight. we have been seeing it head south since march, while the equities have kind of been living i think in lalaland. if you look at the vix index, vix index never got above 20 at least during the day session. while we have seen bond volatility hitting year to date highs. yes, there is something, there is smoke and what we are seeing right now in the bond market is demand and scarcity in how the
two meet and you are seeing yields being pushed down to 2%. the likelihood of a fed rate cut now you are hearing from certain economists is that it could come as soon as september. now, the bond market's been telling you that's probably way late and i think at this point, bonds are going to continue to see yields go lower. equities have kind of become the second afterthought and now you have to shift your focus on what happens to the economy, what happens to growth with these tariffs, what happens with any sort of, you know, mixup with europe, their politics and economics are also adding to some of this mix. likely, the trend now becomes where do ten-year yields become too liz: look at fed funds futures for june. 83% probability of a rate cut. we got to give props to peter schiff, europacific capital. he said it hear, half a year ago here, many, many months ago. when it didn't appear at all like we were going to see rate
cuts. we were expecting three to four rate hikes in 2019. he said the fed will have no choice but to cut rates in 2019. we're three minutes away from the clock closing out the month of may. it is the worst month of the year about to come to a close. the dow is down 6 and 2/3. nasdaq down 7, almost 8%. transports are even worse. transports down 10%. kristina is in the chair. you're on the floor of the nike, you're standing, you're running around. let's get to winners here. reporter: take two gaming company. they're trading higher. a beauty company, koty. up 14%. a lot has to do with earnings. total systems services up almost 21%. yay some winners, despite the dow down 335 points.
we have to talk about losers. mylan pharmaceuticals. the reason they're down because of a lawsuit. kohl's, look at that drop, a lot has to do with entire retail sector, lower due to tariffs. investors are expecting a further drop. i will throw it back to you. liz: thank you very much. when we talk about traders, some wake up to trade for themselves with their own capital. bring in todd horowitz. he is known to bubba for us. todd, our producers were calling you what to say at 3:58 today. you said i'm too busy trading. what were you doing starting this morning early? >> i started last night, liz. i was trading the futures. that big selloff came as soon as the tariff announcement came out. they became very active and volatile. i traded almost all night. was getting set up for this morning because i knew i would be buying stocks. i had to wear both hats once
actual equities open. i have to wear the investor hat i always buy equities to hold for long term which i recommend all investors do. don't look so much. stay invested. long-term you make money. as trader i was selling grain, coin, soybeans and wheat to take profits i'm short oil. i covered my short oil. short equities futures i'm not covering. i still think we have a lot of room to the downside. any product with liquidity and moves i trade it. that is what we did on the floor. hedging my equity portfolio. so i'm always 100% invested. cutting out premium for options. bought western digital there. bought baidu, apple, facebook. there is whole laundry list of. i see it coming in. it has been a wild day. at least i have my voice. you would think i wouldn't have a voice right now. liz: about to lose it in 15
seconds. great to see you. [closing bell rings] todd horowitz. on the tweet heard 'round the world. sell in may is true. the worst month of 2019 so far. have a good weekend if you can. that will do it for the "claman countdown." connell: president trump threatening tariffs on new imports from mexico if mexico does not take sufficient action stopping illegal immigrant from the u.s. border. >> it is just a tweet. it is just a tweet. connell: tell that to wall street. reaction in the markets, down 350 plus points on the dow. that is just 1.4% for the average. we finish down in the red for six straight weeks. longest streak we've had in eight years. just a tweet. s&p 500 and nasdaq ending in negative territory as well. s&p down 1.3%. nasdaq is 1 1/2%. we'll put it all together.