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tv   Closing Bell  CNBC  April 29, 2016 3:00pm-5:01pm EDT

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3:00 p.m. eastern. we'll bring you the headlines as soon as they cross. >> all right, josh, we'll be following that story presumably for the rest of the afternoon, as protesters i would say looking provocative with respect to law enforcement there. and hopefully everything will resolve in a peaceful way. kayla tausche, thank you for joining me on "power lunch." thank you to you. good to be with you. thank you all for viewing as well. "closing bell" starts right now. all right, tyler, thank you very much. bill griffeth and kelly evans, getting ready for the last hour of trading for the month with the dow down 133 points. we continue to watch the developments there in burlingame, california, as they await the arrival of donald trump for a rally at the grand hyatt hotel that already is finding some controversy, sue herera as the protesters try to
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make their statement before trump gets under way there. >> absolutely, bill, here's what happened. they started to gather north of the silicon valley region. for those of you unfamiliar with that part of california. the police were put on high alert earlier this morning. specifically because of what happened in southern california. costa mesa last night. there was a trump rally, it turned violent. a number of cars that were damaged. riot police were brought in. given the fact that mr. trump is scheduled to speak shortly at that location in burlingame, specifically the hyatt regency, the police were put out early at that particular location. they have barricades up. you can see them just past those people we saw walking. a large contingent -- there are hundreds and hundreds of people at that particular hotel. they pushed against the
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barricades and then they tore them down and rushed the hotel. at that point, the riot police which were standing to the side moved in and pushed the protesters back. i did not see anyone hurt. they did go back behind the barricades. as they widen out on this live picture, that's a look at the hyatt regency and the grounds. but it was fairly well organized at that point when they tore the barricades down. most people there that i saw had anti-trump posters but we understand that there are some pro trump supporters as well, and sometimes that's where some issues develop. that's a live picture so the helicopter is obviously pulling out and that could be the trump motorcade coming. i don't know that. but if the helicopter moved and it seems as though that road is closed, and there are suvs there. so that could be the trump motorcade arriving. so we'll continue to watch this particular development because
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as he gets closer to the hotel, we'll see whether or not we have more altercations with the police. obviously security is very, very tight. there are a lot of police officers. they're all in riot gear. and the protesters have tried -- and succeeded in tearing down the barricades once that we have seen and have rushed that hotel. >> all right. sue, thanks. let's go to josh lipton who's on the ground there outside the grand hyatt. we can tell you, josh, that depending on how fast and how far away they are, you're moments away from the arrival of trump there. >> yeah. it does look like trump was arriving. remember, he was scheduled to speak here at 3:00 p.m. eastern. so right behind me at the hyatt in burlingame, california, north of silicon valley. trump has a lot of support in california, among republicans. but there are hundreds of protesters here now and the police also out in full force.
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they were here very early this morning. you've got a lot of police in riot gear. it was a few minutes ago it looked like some of the protesters tried to storm their way into that hyatt where trump was speaking. i then saw all of the cops move in in riot gear and push them out. trump is scheduled to speak any him here. so we'll bring you those headlines as they do come, guys. >> all right. things settling down though for the moment. but it will be very interesting to see what happens depending on where they drop mr. trump off. probably in that little plazaary there, near where you are, right? >> right near me. so right behind me there's the hyatt. and toward the left there is where protesters -- listen, they're trying to figure out where trump is going to be coming in. so they stormed back towards this way a little while ago. they tried to storm the hotel. now moving up this way. that's where it looks like trump is coming in. >> very good. thank you, josh. let's get to the markets.
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the dow down 128 points. >> it's been a rough 24 hours and i want to show you the s&p 500 we were tooling along here. middle of the day yesterday we sort of drooped. you see we're down 2%. icahn and a -- he had a little bit to do that. and apple dropped noticeably. let's look at the markets today. be very careful about complacency in the market right now. we dropped 2% in the last 24 hours. 2 to 1 decline and the buy-in is heavy. it's the end of the month. vix is at a one month high. all of the biotech and exploration and production stocks, they're normally moving on a market moving day. they're the ones moving the most today. so we're getting a little volatility at the end of the month. i want to point out, on the earnings front, exxon was up throughout the whole morning. it is negative slightly here. but not bad considering the market overall is down.
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the important thing was their earnings. this is what a big diversified energy business will do for you. they're big in chemicals. their chemical business was terrific. it was up 38%. the downstream business is basically gasoline refining, that was strong. they had a loss in the upstream, but not as much as expected. a pretty good report and the question, bill, is whether or not we're at trough earnings for some of the energy companies. for exxon that may be the case. back to you. >> thank you, bob. now to amazon stocks on the back of the earnings. dominic chu looking at the game of thrones style fiefdom. >> if you look at the game of thrones theme we have got here, it reminded us of the tech landscape. a lot of the major ones are battling for the iron throne. if you're not a game of thrones fan, think of it as a board game
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like risk. now let's look at for instance all of our houses here. we have the google, a microsoft, netflix, a facebook and an amazon. they're strewn across the tech landscape and they're all starting to encroach on everyone else's territory. all of the companies do multiple things but we put a couple of them to give you an idea of the landscape that we're talking about here. first of all, check it out. google and microsoft may be soft where you can say netflix and facebook and cloud computing, well netflix and amazon are competing. not on the other basis but original content as well. and now take a look at another perhaps battle that's developing with regard to some of these. you have an advertising giant like google. now, it's kind of facing off against facebook that's trying to make forays into the online video. google/alphabet owns youtube. so those guys are becoming strange enemies on that front.
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then you have another perhaps conflict developing here with microsoft. big software giant, applications. going against amazon in terms of cloud computing. microsoft wants to put it out there as one of the big offerings. amazon a big player there. take a look at this one as well. if you look at the overall view of how the guys are interacting with each other, google and microsoft going after each other as well in terms of some of the offerings that they have. all of these tech companies are trying to jockey for position and encroaching on everybody else's territory. just so they can have that supremacy that they want in technology. so it may not be exactly like game of thrones but it's certainly playing out where some of the companies are becoming either strange bedfellows or frienemies and trying to battle for supremacy, game of thrones style. >> i want to know if john snow is alive or not. >> i won't say anything. >> i guess you won't. thank you very much.
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that was interesting. two investing companies and carl icahn and warren buffett sounding off. >> you can't have a federal reserve give low interest -- negative interest rates without creating tremendous bubbles. i do believe in general that there will be a day of reckoning unless we get fiscal stimulus. >> well, there were probably -- this is the most wild guesses. there were probably 50,000 or more that bought stocks today or 50,000 that sold. i don't know if i would put too much weight in what they did. >> let's talk about this market. closing bell exchange, we have jim lowell and trader stephen guilfoil with us at post 9. rick santelli joins us from chicago. two different points of view there from carl icahn and warren buffett. icahn wringing his hands a bit over the future of the market if
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we don't get fiscal stimulus and if the fed doesn't get off the dime where warren buffett is taking things in stride here. break the tie for us. >> i don't know. i do think that the -- you know, the stimulus is the market's opioid of choice, clearly very addicted to wanting more of it. we saw when the bank of japan did not provide more stimulus, that the global markets didn't get it. sold off as a result. i think what we also saw is back in september, the fed moving from the first dealer of stimulus on the block to trying to dose in some rate hikes. basically, to begin to back away from the massive stimulus efforts that were successful. initially, we met with a sell-off. then i think as the markets believe more stimulus was coming they definitely rebounded. a false high. it's important for the markets to be able to stand on organic growth, not stimulated growth. we're not there yet. that's what this last few trading days are telling us. >> it will be interesting,
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sarge, to hear what the oracle has to say tomorrow. that shareholder meeting for berkshire hathaway. he's someone who can come into the market and try to talk people off the cliff so to speak. >> he tends to be a positive force. and this being the last day of the month as a trader, we're thinking a little window dressing tonight. maybe a little pop on monday. guys usually go home flat. now they have been given a discount, probably will go home with some loans on the table. >> because you think we'll be hearing the good news comments from warren buffett over the weekend? >> i think there will be some cheerleading. they tend to be positive for the s&p 500. >> does it matter it's a may month about to be kicking off. we hear that old proverb about buy in may it goes away. >> it's generally more times to sell your portfolio and may -- that old adage was for the end of may, not the beginning of may. if you're selling because of an
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old wive's tale, you're crazy. >> the dollar continues lower, energy has been the big winner this month. gold continues higher. what are your expectations as we head into the month of may? >> well, i think what i look at is that the s&p 500 is about a half percent positive territory. the dow is about a percent and half. remember how many times those equity markets and those stock indices knocked on unchanged before we finally broke through to the other side? well, i think coming down i would suspect those areas will be decent support. i think that what's going on in europe, a little extra growth caught some off guard. maybe that took some buyers out of the market. but i'm convinced warren buffett aside that the land of negative rates will continue to lose their investors to economies like the u.s. i think that will be a bright spot and i think the drop in interest rates after the meetings made sense, but i'm not sure that that drop's going to get a lot of legs, you want to
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pay close attention to the 175 level in tens. i think carl icahn's comments was the timing. as an activist with liquidity all around the globe. could you find a better time to try to extract companies to invest in their own stock and then pay it out in the form of dividends? it's a wonderful thing. he's in the perfect business, but the timing of his comments i think are very important. because i think a lot of that may have run its course. >> jim just briefly, are you guys looking, you know, to pick sectors here in other words? when we have been debating whether, you know, debating the merits of technology versus energy versus health care. are you going company specific? what are you doing here? >> we're clearly looking at health care. knowing our managers are buying on dips and we think the
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financials especially u.s. banks, like they have financial books like in 2008 they're in much better shape. in technology space it absolutely is creating some bargains especially on days of significant sell-off. we're long term investors. we think our risk days create long term opportunities for us. >> all right. we are coming back. what's the one level you are watching right now, sarge? >> the panic, i don't think we'll have a sharp selloff. i want us to get above 1263 on the s&p. oil went above $46 while we were sitting here. >> you think that supports -- >> well, with oil and gold moving that's what investors are focusing on. >> we have to go at this point. thank you, all. have a good weekend. >> thanks. about 45 minutes to go in the market here. keeping an eye on a decline for the dow. the s&p is down 16 points. transportations are down 110. and the nasdaq is down 40. >> main street investors will sound off and we'll get their picks to see if apple is worth buying on the latest dips.
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up next, we'll go live back to silicon valley where donald trump is on a mission to win the hearts and minds of some voters he may have alienated. protesters disrupting the rally a few minutes ago. we'll bring you the latest. you're watching cnbc, first in business worldwide. nothing unleashes power... quite like the human foot. introducing the 241 horsepower lexus is 200 turbo. with almost twenty percent more base horsepower. once driven, there's no going back.
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well, with the markets trying to come off the day's lows, let's show you a couple of other movers at this hour. seagate tumbling on the earnings miss. the data storage maker issued disappointing guidance for the current quarter and flat gross margin growth as well. that was during the conference call with analysts today. also on the flip side we had monster beverage one of the biggest gainers in the s&p today. the energy drink maker reporting better than expected earnings thanks to distribution deal with coca-cola that's helping to boost sales. monster announced a $2 billion stock buy back program via a
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modified dutch auction tender offer. now california is playing a key role in picking the republican party's presidential nominee. our josh lipton is out at the california gop convention where front-runner donald trump just arrived and maybe jumped a fence amid a number of protesters? what's going on? >> yeah. absolutely. donald trump we're hearing did just arrive. he's going to be speaking at this hyatt right behind me here. we're in burlingame, california, which is just north of silicon valley. listen, we know trump has a lot of support among california republicans. he's leading senator ted cruz by more than 17 percentage points. but there are hundreds and hundreds of protesters here as well. i can tell you emotions are running high. earlier today, we saw a trump supporter going at it with some trump protesters. a scuffle breaking out. luckily it did not look like anybody got hurt there. and then just a few minutes ago it did look like a group of protesters tried to barge their way into the hyatt where trump
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is scheduled to speak. you had police then move in in riot gear and push them back. i did catch up with both sides here, i spoke with trump fans and critics, trying to get their sides. take a listen to what they had to say. >> we have already seen him turn the establishment upside down and stand up for the american people. he has the strength and the determination to make this country great again. >> we can't sit back and allow all the violence and all of the -- just the silly things he's saying take place. >> i like his business leadership. i think our country needs that. you know there's no perfect candidate but he's certainly better than what we have. >> we don't have a friend in hillary clinton, however, donald trump is definitely the worst of two evils. >> now, as we said trump did just arrive here a few moments ago. he's going to speak at the hyatt and we'll bring you guys those headlines as soon as they come. back to you. >> josh, by the way it's
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interesting because you're talking to a lot of the public there. people who are coming in for rally. california like any state, the mood in the city is very different than the mood across much of the interior. i'm just interested to know whether the -- you know, kind of the aggressive rhetoric out of silicon valley from mark andreessen and the other guy, does that resonate with people or does that make them feel more -- you know, supportive of what they like about trump? >> well, listen, i mean, you're right to point that out. donald trump has a lot of support among republicans in california. he has that double digit lead over senator cruz. among silicon valley elites you're right to highlight that. we saw mark zuckerberg of course suggest that he was a -- he was coming out in opposition of trump and that decision to build that wall between us and mexico. and it's not just ceos of course. you have had a number of right leaning vcs come out trump. mark andreessen suggested he
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would vote for clinton. you have keith he boyd coming out, so there's that divide, kelly, you're right to highlight it. >> josh, thank you. keep us updated there out of burlingame, california. let's take a break here. we're about 40 minutes to the close, but the dow is down 103 points as we start to close out the month of april. and then we got into may. coming up, retail investors are telling us whether this pull back is scaring them out of the market. >> also, amc entertainment ceo adam aron is telling us how the block busters will impact the bottom line and if they have any acquisitions coming. >> we'll ask. >> yes, we will this time. coming up. [ soft music ]
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e.t. phone home. when you find something you love, you can never get enough of it. change the way you experience tv with xfinity x1. welcome back. we've got about 35 minutes left in the trading session here with the dow down about 101 points. focusing on the transportation stocks, we were just talking about that with sarge guilfoil. he was saying maybe might be time to buy some railroads right now, but the airlines we have been focused on those today. the transports are down 114 points right now as oil tries come back. >> united continental, watching all of those for you. but joining us right now is supermodel christy turlington.
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she's representing your organization, every mother counts. i'm impressed you're still standing because you did did the boston marathon. >> yes, over a week ago. >> tell us about the organization though. you have been doing this for a number of years now. the orange rose -- >> yes. the orange rose is new, actually. it's a new symbol for maternal health we're introducing this year. i started the foundation in 2010. and basically, we're a campaign that's trying to make pregnancy and childbirth safer for women ever everywhere. >> how do you do that? >> transportation is one of the ways to do it. some women live so far away from maternity care so i try to make it easier to have access to the services and care during, throughout and after pregnancy. >> so many different aspects you could focus on in that whole process. that would be one of them, i imagine. >> yes, education is another. we're training lots of health care providers. community health workers and even obstetricians.
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then we're trying to provide basic supplies. supplies that we would take for granted here. cotton, just hygienic, clean places for people to deliver their children. >> we take that for granted. some of those basic elements of the whole birth process. >> we throw them all away in the hospital. there's so much products that go to waste because we don't necessarily need all of the things that are in the hospital room. but there are people that don't even have access to a bar of soap let alone a clean -- you know, instrument. >> so you're a 5013 c. how do people make donations? >> so every woman counts is our website. if you're late to the table, you can find us there. they all benefit the programs around the world. we're working here in the u.s., in new york. in florida, and haiti. uganda, and in tanzania, india and bangladesh. >> looking for any stock tips down here? >> i just hope that you guys
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finish the day and still have smiles on your faces. >> we always do. >> good. >> good to see you. thanks for joining us. christy turlington. have i mentioned i love my job? joining us here -- >> enjoy. thank you from all of us. keeping an eye on the markets though. we are under pressure with some frowns, the dow is down as we head into the close. a leading trader will tell us what he's watching. >> when we come back on "closing bell." here at the td ameritrade trader group, they work all the time. sup jj, working hard? working 24/7 on mobile trader, rated #1 trading app on the app store. it lets you trade stocks, options, futures... even advanced orders. and it offers more charts than a lot of other competitors do on desktop. you work so late. i guess you don't see your family very much? i see them all the time. did you finish your derivatives pricing model, honey? td ameritrade.
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welcome back to "closing bell." i'm sue herera. here's what's happening at this hour. we'll show you live pictures from burlingame, california, at the republican california convention there where protesters are on site and mr. trump is expected to speak. he's arrived at the convention, but he had to go through the back door after protesters blocked the entrance. police in riot gear are on the scene. we're continuing to monitor the situation. some protesters have gotten through the barricades and they are literally at the front door of the hyatt regency there. meantime, in washington, d.c., the white house announcing
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president obama will use the power of his office to push for adoption of so-called smart gun technology that would eventually limit the use of the firearm to the owner. he is offering grants to spur the technology. nissan recalling 3 million vehicles over faulty air bags. it includes the pathfinder, the altima and the maxima. on a lighter note it's game on. the white house has thrown down the gauntlet to the house of windsor for the upcoming invictus games. see what was posted today on instagram. >> hey, prince harry, remember when you told us to bring it it a the invictus games? >> careful what you wish for. >> oh, really? please. >> boom. >> the invictus games celebrate the athleticism of injured and sick soldiers and veterans
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around the world and prince harry champions that. boom. that's the news update this hour. back to you two. >> i love it. the queen is the hippest 90-year-old out there. >> she really is. >> thank you, sue. look at this. we are coming back as we head into the last half hour of trade. the dow now down just 70 points. it was down well over 100 points and the nasdaq, the laggard today, is down 34 points. i want to tell you about valeant pharmaceuticals, it's falling big time. the struggling drug maker finally releasing its annual report to meet a key deadline with the s.e.c. for creditors. but the report unveiled among other issues that north carolina is investigating valeant's marketing and pricing practices and separately valeant said that seven current board members would not be standing for re-election during its june 14th shareholder meeting. by the way, activist investor
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bill ackman will remain on the board. he will be a special guest host on the halftime report monday at noon eastern. the action starts so be sure to tune in for the full hour. we'll hear from bill ackman on that among other major issues. i mean, he is very much hands on right now. trying to revive the future of valeant. >> it will be so much to look forward to on monday. well, the market is off the lows as we head into the close the final trading day of the month. let's check in with main street investors. with us now david meyers, creator of a la carte charts. guys, great to see you both again. damall, slippery markets the last couple of days, big misses in tech. what are you buying and holding here? >> i'm holding on alibaba right now. i feel they'll get stronger later on down into the holiday season. and with ali pay coming it will basically be against ebay and
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paypal. but i'm -- i feel strongly about barrett gold right now. they hit a 52 week high today. which is great for us. and the price that the shares are trading at is good for investors like me that don't have a lot of cash on hand. >> right. >> so this is really, really -- i feel strongly about this stock right there. >> you ought to be feeling good with that 9.7 point game and the price of gold is going higher as well. david, i know among other things you're a short term trader. you have been net short this market here. so we have had a couple of big down days. what are you doing right now? >> well, i'm actually buying volatility because i think this trend continues, at least in the medium term. we're looking -- we had a heck of a run since january where we were crazy oversold at that time. i think we're getting to the point that we're overbought
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again. and the market needs to get its legs underneath itself before it wants to go higher. >> what does that mean in terms of how you're specifically playing it, david? >> well, there's a couple of ways. i'm buying the vix. i like that as an asset class and other -- >> asset class? >> yeah. yeah. you can buy it through the etfs. that could be instead of cash you could be buying the vix and getting ready for volatility such as today. >> what was the other thing we're doing? >> also i think the dollar is about to bottom out. at least again in the short term. we have had a heck of a run. we're pricing in the fact that the fed's not going to move at all. i have a feeling that we'll get a surprise and get two bumps this year. even if it's just talk, it's enough to drive the dollar higher. >> is there anything you have sold out of lately? >> well, i sold out of valeant
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becauses of what going on with the company and i kept watch of when they were -- what's the word i'm looking for? going through their problems with their shareholders and they investigations that were going on. so i bought them in the middle of last year, but around january i dropped them before they were bought out. >> well, that was smart. a lot of smart money managers wish they had done the same thing. you don't want to get back in along with bill miller and those who feel like there can be some order out of this chaos? >> not right -- not any time soon, no. i want to make sure they reshuffle their board. get their members together and get the company back out of investigations and back on the right track. >> all right. john, good to see you both. tight on time today with all the breaking news. thank you both for your thoughts on this market. we appreciate it. >> yeah. we'll send it over to seema mody for a market flash. >> i want to bring your attention to hall yard, it's
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tumbling on a "60 minutes" preview that saying they knowingly sold defective gowns to u.s. health care workers battling ebola. the company is allegedly accused of supplying faulty defective equipment to hospitals. this is the preview of "60 minutes," the full story on sunday. you are looking at shares down more than 9%. we'll be reaching out the the company shortly. we'll let you know if we get a response. for now, back to you. >> yeah, any time the attention of "60 minutes" gets drawn to the company, they're in for a challenge. lumber liquidators. >> i won't draw conclusions on halyard at this point. >> we'll see what else they have to say. that's more scrutiny. the other thing too, when the scrutiny comes. all right, about 20 minutes left. sarge guilfoil said it would be like this. maybe some traders are taking a position into the weekend ahead
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of the an ideal shareholders meeting. the dow is down 64 points. pretty much catching in half the declines we saw earlier. >> the nasdaq is lagging though. the major averages this week we'll go live to that exchange coming up. up next, amc entertainment ceo gives us his take on the increasing role of china in the movie biz and how that's affecting content and distribution. s touching a ray. amazing is moving like one. real is making new friends. amazing is getting this close. real is an animal rescue. amazing is over twenty-seven thousand of them. there is only one place where real and amazing live.
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welcome back. the dow down 60 points or so. but again, it has kind of picked up off its lows here in the last hour of trade. now, expedia one of the bright spots. the travel service's web service operator is reporting a profit than a loss. the shares are up better than 8% and revenue getting a boost from the recent rental business. amc entertainment are falling today as the company reports first quarter earnings
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results this morning. did that beat analyst expectations for earnings coming in at 29 cents per share. but the top line fell short of expectations, despite record first quarter revenue in both admissions and the ever popular concession sales. >> joining us now is adam aron, the ceo of amc. thank you for joining us. >> it's my pleasure to be with you, of course. as always. >> there's a number of different things going on in your industry. any major deals you want to announce while you're with us? anything you're hours away, any major, you know, landmark things going on here? because we're all ears. >> well, we were close to announcing our acquisition of carmike cinemas on your program. >> yes? >> i'm giving you a hard time. >> but it got delayed by two hours and we missed you. but what i will say is the news of day is amc announced earnings this morning for the first
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quarter and we not only had record earnings but we had record everything. just every metric that you could look at was impressive. our revenues were up 17%. our ebitda was up 27%. our eps was up 383%. we beat analysts' consensus estimates on ebitda by 11%. and eps by 45%. this was a great quarter for us. i'd love to have quarter like this for the next 90 years. >> why do you think the stock is down today? >> you know, sometimes people look at the trees and not the forest. there has been some speculation about what movies will open in may and june and obviously we take a much longer term view of our company. when you start with the summer movies that traditionally open in july, all the way through the
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end of 2018. we're looking at a gang buster slate of movies. we think the prospects for amc are quite bright. >> let's look at the forest. how concerned are you down the road, i'm looking well beyond the summer movie season from all of the competition that a theater chain gets these days from the home entertainment center, the downloading, you know, the home box office. downloading that people can do these days. some of the competitors that want to release to the home video at the same time. what is the model with the competition out there? >> i think competition is a good thing because it keeps the companies on their toes. in our case, we are responding with the strategy to make the theatrical movie going experience better and better and
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better. really wonderful as -- whatever adjective i can come up with, we're investing $1 billion in our theaters over the next three years. to upgrade the movie going experience. big screens, better sound. better food and beverage. reclining seats. alcoholic bars in the lobbies. we're making a lot of progress to make a night out as a wonderful thing. that's how we'll succeed. >> i'd love to be able to text while watching a movie. i don't know about. >> well, listen, if it's important enough to -- to people in general, to feel like they don't have to make a choice between being on my phone, responding to a text and watching a movie, i can understand. do you think that actually despite the outrage that followed your mentioning of possibly allowing people to do this, it still could be something you pursue longer term? >> well, you know i floated that trial balloon and in 36 hours thanks to social media, social media gives us all the
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opportunity to interact directly with our customers. we immediately heard what our customers thought of that. so that idea is dead and buried. [ laughter ] >> lesson learned, i guess. adam, thanks for being with us. i appreciate it very much. >> our pleasure. >> adam aron, ceo of amc entertainment. >> we could be positive by the end of the day here. >> the dow is only down 22 points. barely more than 0.1%. but it's the outperformer. so the s&p 500 is giving up a third of a point today. the nasdaq despite amazon's results there is now down half a percent. >> a leading portfolio manager will explain why gilead which is why 9% today is on his buy list. that's coming up. that's why i have the spark cash card from capital one. i earn unlimited 2% cash back on everything i buy for my studio. ♪
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a little less than ten minutes left in the trading session. the nasdaq has been the laggard this week. we go down to the market site with bertha coombs. >> a lot of disappointing numbers from the big tech companies. as a result, we have the nasdaq
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down to the worst for the week, worst for the month. seven day in the a row that we have seen the nasdaq slide not coincidentally when you take a look, apple has been down for each of the seven days. apple ending below $100. back below a number of its moving averages, back in bear market territory. after posting those disappointing numbers. really helping to lead to the overall disappointing feeling with tech -- with a lot of bad reports this week. the one thing bucking the trend, well, let's do the david dars acronym, the best gainers were facebook and amazon killing it today. and monster all up on its earnings. and expedia as well. but really as far as those f.a.n.g. numbers it's f.a. that's doing the heavy lifting on the nasdaq these days. back to now. >> well done. see you later. it's been a big week for the
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dividend players. johnson & johnson, apple, gilead which is down sharply we pointed that out. they all raised their dividend this week. mark spellman from alpine fund joins us now. you like gilead, even before the sell-off, right? >> yeah. i think today, i think it will be one of the most attractive stocks right now. this is company its hepatitis "c" franchise was weak. the stock is going -- it's selling around seven times earnings, 2% yield. >> but you have to put up with some volatility in the meantime. >> i think so. an excellent entry point. they generated $4 billion in free cash flow this quarter. >> you're predicating that on nothing changing from this company at this point, or do you think they need to do a big, transformative deal? >> i think that's the bonus here. i think based on the current business generating $4 billion in cash. i think the scripts and the pricing is going to calm down. pricing press sur going to calm
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down. i think with $21 billion in cash and zero debt, they could make another transformative yield. i think that would be the cherry on the sundae here. >> where else are you looking for dividends right now? >> we like cvs if you want to stay calmer. 16 times earnings. they made an acquisition of target's pharmacy store, so every target will have a cvs in it. we think that's a solid, top line story. >> are you word -- one of the things that people rose, gilead and also to cvs is have we reached an inflection point where the past -- like a supermarket, right? you increase price, everybody benefits and now everyone can be hurt from that? >> i think gilead is special in a sense. their drug cures the disease. >> but they have to pay a lot to
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make sure -- >> sure. the list price, it's about $60,000 i think is what it is. everyone -- the veterans administration is nowsying patients who -- is now saying patients who have hcd should get treated with it. it's a lot of money up front, but 98% of the people who take the drug no longer have the disease afterwards. that's what we like to see in the medical system. >> that's for sure. good to see you. mark spellman from the alpine fund. we'll come back with the closing countdown for the month as we head into may. >> how quickly it goes. after the bell, bernie sanders has made no secret about his disdain for wall street. and a supporter will explain why he's casting his vote for him. you're watching cnbc. then one night, you hydroplane into a ditch. yeah... surprise... your insurance company tells you to pay up again. why pay for insurance if you have to pay even more for using it?
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retiring retired tires. and i never get tired of it. are you entirely prepared to retire? plan your never tiring retiring retired tires retirement with e*trade. all right. we are just inside three minutes as we head to the close, wrapping up the month of april. bob ba is any joining me today. we'll see, it was -- i guess we'll be slightly lower for the dow industrial average for the month overall. >> slightly. >> down half a percent or thereabouts. down a bit today. i'll tell you what, sarge guilfoil nailed this one. he said we'd see a big come back as market triggers get ready for
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the weekend of the berkshire hathaway shareholder meeting. let's see what oil did this month. it was a come back month for that as well. up 19% to $45. $45 was a number that a lot of oil companies were looking for. >> as a result, energy was big market leader here, up about 8%. energy stocks. so i think oil up and the dow down, two -- >> funny you should mention that. for the month of april, down 1.7%. as we head down to $93 and the question is maybe some say we're getting open into the extremes. >> what the move the market forward, people ask me, and the most obvious one is continued dollar weakness that's going to help all of the multinationals. there was even some comments about that. that the dollar weakness was going to be a nice tail wind for some of the multinationals.
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we'll see if that keeps up. oil if it bottoms out, i think the biggest problem in the market is a sense of complacency. we'll talk about that on the other side. the market is not cheap. it is fully valued. in some pockets there's slight overvaluation. i think you can say maybe we won't have the same drop that we had in january and february. the recession concern is not there. china falling apart, concerns maybe not there. how do you push the market up when the valuation -- i think this is going to be the problems we'll grapple with in may. >> we're past the halfway point for earnings. they have met the lowered expectations. amazon and facebook notwithstanding. but otherwise it's been a pretty dismal reporting ceasen. >> if you look though at the other new tech, like amazon, expedia did fairly well. i tend to look at it slightly differently. the question is, second quarter their guidance is it enough to break the four quarters of negative earnings growth that we have had? right now the jury is still out. but the commentary is less bad.
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i think that's important than in the fourth quarter. >> bob, thank you. have a good weekend. going out down 60 point, well off the low for the day. but slight decline for the month of april. start off may on monday. christy turlington and her every mother counts foundation, ringing the bell. let's get to the second hour of "closing bell." have a good weekend, kelly. >> thank you, bill. welcome to the "closing bell," everybody. i'm kelly evans. here's how we're finishing up the day and the week on wall street. the dow going out with a cle decline of 53 points. and the month drawing to a close, the s&p down about 10 points and largely flat for april. the nasdaq the underperforming, amazon had the results, that helped the nasdaq futures this morning. to stay in the green. but not true as we moved through the session today. two-thirds of a percent of a sell-off, closing down 30 points. coming up, we'll hear from a
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banker for bernie sanders. why he's supporting the candidate who has been so vocal against the street. first, let's introduce today's panel. we have contributor evan newmark here. kate kelly. and with us also, fast money trader guy adami. any parting thoughts on april? >> i'll give you a parting thought. if the network was an nfl draft, you would be my first pick, being on your show, being with evan and kate who is back. congratulations, kate. yes, i'm back. i'm thrilled. tell bill griffeth who is running away that i say hi. >> life is sweet. thank you. we love having you. april, thoughts, dave, thoughts? >> energy move, i think it caught a lot of people offsides. i think the dollar had something to do wit. but maybe fundamentals aren't as dire as i thought. i think that's number one. number two, i don't think there's any way to dispute that we're not only in an earnings recession, but we're in the revenue recession. as you see by a number of
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different earnings, yes, some one off stories. facebook stands out. but the fact is that earnings and revenue are disappointing. i think the bond market stays resilient. if you want to be bullish in the market now, evan would agree with this, you have to justify being long. the s&p 500 which traded close to 18 times forward earnings and in an environment that i don't think justifies it. how's that for your answer? >> you want to speak -- >> i agree with guy. i love his positive words about you, kelly. >> do you think that's the warren buffett effect? we'll hear from him all day tomorrow. >> no. i think really the s&p 500 has traded for almost 20 months at plus or minus 2,000. i mean we're two years come august and what we have seen is there's been a lot of movement in that s&p 500. apple which is the largest component of the s&p 500, it's down more than 30% from its highs.
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yet, the s&p 500 is still more or less where it was. i think for the market to go higher you need to see interest rates go higher. you need to see financials go higher. i think it's very -- i think it's great. i'll do another small victory lap, i'll the a smaller -- i should do a bigger victory lap on the precious metals. >> that's wonderful. okay. >> i need to take my victory laps when i can get them. >> you're allowed. kate? >> the s&p is in a remarkable spot here. i think a lot of people at the beginning of the year said the rally was over, but instead we're in the second strongest bull run in recent money. there was some interesting stats out this week suggesting if we had another update thursday we'd be setting another record. it didn't happen. but we're close, right? at the same time, i think people have been expecting to see a momentum trade that didn't materialize. they got hurt. if they were moved in the wrong direction there. i think that's been an issue for some hedge funds.
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i wanted to to pick up guy's point on energy. even though it was impressive month for energy as bill -- bill was just telling with us the rumors, i'm clearly newly back to the job, it's something you have to wonder about when saudi is adding to the oil output, you have tankers off shore that are storing oil on the floating basis. you have iranian crude coming on line, can we sustain the prices at the moment until that's a real washout? >> we have no idea. the oil market isn't something we pretend to understand. it works on psychology. there's underlying supply and demand but a lot of psychology is involved. and my call last year on exxon was really just a notion that, you know what? exxon in the high 60s looked like a good relative, you know, value trade. i have no more insight than that. >> let's mention our get more
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stats here from our bob on how we finished the day and the week here. >> yes, we had a nice turn around in the last hour. in fact, that turn around put the s&p 500 into positive territory for the month. let's look at the major sectors. the real winner was the small cap. russell 2000, up 1.7%. the s&p turned positive. and transport still couldn't manage the gain. take a look at the sectors. the big macro stories played out. oil was up, and there's your market leader and banks did very well despite the flat interest margins. that was enough to move them up and materials benefited from the weak dollar. remember consumer staples was a big one earlier in the year. there's the reason we didn't get
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much oomph. in terms of what will happen for may, the enemies oh may rally, sell in may and go away. it's a silly idea to go out of the market for six months but it has psychology. we dropped 2% on almost nothing. a lot of air. volatility went up on that. be careful about being complacent. the biggest issue in my opinion, the markets are fully valued. you guys talked about it. 17 1/2 times earnings, ge and 3-m all at 19, 20 times earnings. i think there's a floor under the market perhaps. less volatility. the question is what could make it go higher and definitely valuations is going to be a major problem in may. >> bob, what's interesting just looking at your sector breakdown there, i was astonished to see energy and the banks. we had disappointing bank results especially when it comes to the all-important factor of the trading revenue, right,
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which was not great. that's something that can really juice profitability in better times. what do you make of that? >> well, on trading revenues remember you're talking about the big, big banks that are involved in that. you're talking about a half a dozen major banks. all the regional banks don't have trading issues by and large. they make their money by net interest margins and they make their money by charging fees. it's true that the net interest margins were kind of flat. but there was modest loan growth. enough to encourage people to get into banks. so there was a relative valuation play going on there. >> guy, what would you say about the financials here? >> believe in the financials, you're putting it solely on the fact that you think valuation is cheap. i would argue absolutely that's 100% right. my pushback would be how are these guys and gals going to make money in the environment that we find ourselves in? we have the department of justice coming on down on the
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end of things and it will -- and i still think the back end of the curve is going down. you have a giant bull's-eye on a lot of their backs in terms of the political arena right now. i think the landscape for them is extraordinarily difficult. i get that that they're cheap valuation wise. i know you say 53 1/2 when jamie dimon, good for him, he's a stud, and we'll come back and talk about banks now facing the head winds and their stocks facing the pressures. >> bob, were you trying to get back in? >> no, look i agree with the general idea that there is a relative valuation play. you have to admit, guy. come on most of the banks owe .7 times book value overall. i think the wrong growth is modest and no growth in the net interest margins at all. with no increase in any interest rates the banks will hit a wall very, very quickly. >> i'm going to -- >> what do you think? >> in general i'm not super optimistic. i think the market certainly the
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u.s. market is very fully valued. the one point i would bring is that you will often find sources of change where you don't expect them. i noticed today for the first time in like forever european growth numbers were higher and better than people were expecting. nobody saw the uptick in oil prices. europe is basically dead money for a few years. japan, forget about. maybe we see something positive that comes out of the weakening dollar and growth in europe cra that could drive growth in interest worldwide. i'm not super optimistic about europe, but all i would say -- >> your expectations are low enough you'll get the positives. >> price of oil it will never be above $40 ever again. it's at 45 or 46 right now. >> the energy companies -- >> the world changes quickly. >> it does. >> sometimes it's not where you expect it.
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>> we have a news alert from the treasury department. amin? >> yeah. a new report on the foreign exchange practices of major u.s. trading partners. the news here such as it is, is that the treasury is not saying that any major trading partner of the united states is manipulating the currency vis-a-vis the u.s. dollar. but under a new law established last year, they are creating a new what they're calling monitor list. that monitoring list is going to include they say five countries, china, japan, korea, south korea they mean, taiwan and germany. they say those countries met the criteria -- two out of three criteria that they have established for enhanced analysis. what this all boils down to is that those countries are not going to be getting enhanced analysis by the treasury department because they didn't meet all three. nonetheless they're singled out in the treasury report. think of this, guys, as a stern wag of the finger from the
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treasury department to those countries and maybe it will raise eyebrows they have been added to this report. no major consequences. >> which two country was that just now? >> so they're adding china, japan, korea, taiwan and germany to a monitoring list. they say those countries have met two out of three criteria the they would need to meet in order to be subjected to what they're calling enhanced analysis. a whole process that they would go into if they met the criteria. they didn't meet all three, so therefore they won't get the enhanced analysis. but the mere fact their mentioned here might raise an eyebrow or two. as i say, this is not the intense breaking news here from the treasury department about the currency practices of countries around the world. >> but eamon and kelly, they're monitoring which is a fuzzy term. i think it's a little bit interesting, i'm curioious on yr thought on this. this is a big thing of donald
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trump, that the obama administration hasn't stood up to china. he wrote a wall street editorial about this. beating the drum on this. is this something he can brag about or not really? >> i think this is something you might hear from donald trump out on the campaign trail. you're exactly right to put this in the political context because that's what this is ultimately. it's a negotiation between countries. it's subject to political forces here inside the united states. it is absolutely an issue out on the campaign trail. you will hear candidates talk about it. it's always easier for candidates to talk about labelling other countries as currency manipulators than for the people running the government to do that because it comes with real world consequences and there's the potential of starting off a trade war which you don't want to do. those people in power are less likely to do it than those out on the campaign trail. >> a quick thought would be great. >> yeah. i'm not killing the messenger here, i love eamon, but the hypocrisy of this on a friday is mind boggling.
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listen, i love america, i wave the flag, but the biggest currency manipulators on the face of the earth is the united states with the fed policies that we put forth. to say anything but that is complete lunacy. we're the currency manipulators. does everybody else do it? absolutely 100%, but we have to look ourselves in the old mirror, sister, because we do it worse than anybody else. >> i don't know -- >> nobody is being labeled as a currency manipulator here in this report. no trading partner met the standard of manipulating the rate of exchange between the currency and the united states dollar. so to your point, the u.s. is not overtly pointing the finger here. they're just giving it a subtle wag. >> well, we have a mirror too, guy. you're right it's important. eamon, thank you for joining us. and guy, really appreciate it. >> have fun today. i had fun. >> we did too. save your energy. save your energy. there's more coming up at 5:00.
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"fast money" is talking to a top technician making a major call on gold. now valeant shares are under pressure after delaying the results and shares closed down more than 5%. we'll have the latest coming up. plus, bernie sanders has made breaking up the banks a cornerstone of his presidential candidacy. up next we'll hear from one banker who is backing bernie. you're watching cnbc, first in business worldwide. [ male announcer ] eligible for medicare? that's a good thing, but it doesn't cover everything. only about 80% of your part b medical expenses. the rest is up to you.
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welcome back. now that donald trump rally in silicon valley is still under way. he met with protests. josh lipton has the latest. >> well, kelly, donald trump in this hotel right behind me here in burlingame, california. started off with a prayer, with the pledge of allegiance. i can tell you ivanka trump his daughter is also inside. here's how trump began, here's what he had to say to his supporters. take a listen. >> that was not the easiest entrance i have ever made. [ laughter ] my wife called, she said there are helicopters following you and we did -- then we went under a fence and through a fence and oh, boy. i felt like i was crossing the border, actually. you know? it's true. [ laughter ] i was crossing the border. but i got here. >> now, we can tell you inside also you have top gop officials from the state of california. remember, trump has a big lead here over senator ted cruz. he does not, however, what's interesting have the support of
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a lot of the men and women i cover every day. he doesn't have the support of mark zuckerberg or mark andreessen. of course, trump said he couldn't care less if he has the support of tech elite. protesters were here this morning. their numbers only drew stronger as the day went on. there were hundreds and hundreds of protesters here. i did see a scuffle between protesters and trump supporters. fortunately it didn't look like anybody got hurt. it did look like protesters had tried to move in to the hotel behind me, into this hyatt. at that point you did see a lot of police in riot gear move in and push them back. now, in this hotel behind me you'll have senator ted cruz and governor kasich. we'll keep listening and bring you more headlines as mr. trump speaks. >> josh that, thank you. democratic presidential candidate bernie sanders well known for his critical view of wall street and corporate
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america and the banks. >> you can't be for wall street and for the working people of this country. when wall street and the fossil fuel industry and the drug companies are able to pour huge amounts of money into the political process. that is not democracy. the fact that major bank after major bank has reached multibillion dollar settlements with the united states government, when we have a weak regulatory system tells me that not only did we have to bail them out once. if we don't start breaking them up, we have to bail them out again. >> all right. so why would a banker support bernie? joining us now is a cofounder of washington square capital markets who supports bernie and he let the world know about it. there's different types of banking. tell us your background and why bernie is the right guy. >> so i have worked in large investment banks but right now we run a small investment
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adviser that provides advisory services to individuals and small businesses. >> wealthy individuals i presume, small businesses. >> yeah. >> runs the gamut. >> yeah. a lot of our clients want us to run socially responsible investment portfolios so we tend to have an environmental focus as well. i think that plays into our openness to bernie certainly. >> where did this piece come from? >> it actually -- it was an encounter on the street. i was wearing a bernie button and picking up a cup of coffee and one of the ironworkers who are putting up a building in midtown asked me about it. we got to talking. and it was interest -- it was a conversation that was interesting enough that i decided to write something -- write this little piece about why i support bernie even though i work in the industry. >> i've read the piece. but what -- what i don't actually understand is the core
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of your argument. it's almost the piece is about i'm a banker and i'm for bernie, but not why you think he is the right candidate or somebody who sort of -- >> right. so my support comes from multiple policy positions he's taken. i like his foreign policy. i like the fact that he seems like an honest person. a trustworthy person with a fair amount of experience. and i like the environmental focus. he's presented. i also like the focus on the inequality. i think income inequality in our country has increased dramatically over the past 30 years. we weren't really talking about it till his presidential campaign run. there's been some -- >> right. will he raise taxes substantially? >> well, we have been there before, right? we have had tax rates in the 70% range all the way through the late '70s. into the early '80s. so we have been there. we have been at a place where
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cap gains were taxed at income tax rates and our country did grow. we had rising incomes back then. >> one thing i found resonate about your piece is that moment you're describing a meeting in washington that you read about with some wall street officials talking about policy issues and that the consternation was really about potential changes to the carried interest tax. i think that really taps into what we're hearing about and seeing on this campaign trail, which is the resentment for those not in the 1%, toward the 1% and then a tone deafness at the top or at least a perception of that. >> i think that's true. i saw the exit polls coming out of the new york primary. 63% of democrats said wall street is bad for the american economy. >> we have to go, but i want to make sure you can get a word in here. mr. wall street? >> look, all i would say is that nothing severe or bernie sanders said has said is new. these arguments have been going
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on for years. what i want point to, almost propositions or policies that are totally devoid of any practicality. bernie sanders was in the senate for decades. never sponsored any legislation that had any impact whatsoever on actual governing of the country. and i think bernie sanders in his -- he will never be held accountable for his policies because he will never actually hold an office because people don't trust at the end of the day anything he says is actually practical in terms of real world day to day policy implementation. >> can i say i disagree completely. >> yeah, that's fine. >> because his focus on divestiture at banks and reducing their size is actually pretty important. if you think large and complex financial institutes, you need to act. no one was talking about sections at the fed until bernie began to raise this in political terms.
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yes, it's been followed up by elizabeth warren in the senate as well. he has had legislation requiring the fed to act and use that authority tabled for the past four years. the big question is, if we think these institutions pose an inherent risk when is the time to act on it? is it now or when the dow is falling 800 points -- >> it has nothing to do or almost very little to do with the growth of income inequality in the united states. with the rise of multibillionaires out in silicon valley. and he's what i would call 1890s progressivism will have no place in our country and it appeals to people because they act on it emotionally. i understand why it appeals to people. but in real terms there's a reason why he will -- >> we have to go now. >> will fade quietly into darkness within the next three or four years the -- >> i think we found our new
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larry kudlow and barney frank. please come back, because it's a great conversation. you can read the piece bankers for bernie. valeant announced an overhaul of the board, but is that enough? and cable and broadband, both sides of that debate are later on "closing bell." this clean was like, pow! it added this other level of clean to it. it just kinda like wiped everything clean. my teeth are glowing. they are so white.
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welcome back. valeant closing down more than 5% today after finally releasing its long overdue 2015 financial report. they announced big proposed changes to its board. our meg tarell has the latest and what this means for valeant goi going forward. >> it doesn't look like folks are responding positively. they plan to bring in three new people. russell robertson who has a lot of experience in accounting, worked in canada. value yantd's home country as well. and dr. amy wexler a dermatologist here in new york
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city. papa is coming in as chairman and the ceo and pearson is on his way out. the former cfo and current director of valeant both leaving. in the 10 k today they repeated the charges of improper conduct they say stem from both shiller the former cfo and the company controller. so kind of interesting to see that being repeated. of course this 10 k was so long awaited, the good news by doing that the company isn't in default. or isn't in risk of defaulting on the debt. but according to analysts that seems to be kind of where the good news today ends. this 10 k isn't appeasing anybody's fears about the future of the business. if you take out the acquisitions of well fargo, the business actually shrank. so that's making them pessimist ebb about growth going forward. they laid out the investigations and requests for information they have and it's just a really long list. not necessarily any new super alarming surprises but a lot to
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deal with. as joe papa takes over valeant and the new board comes in in june. kelly? >> did you mention the north carolina stuff too? it does seem like the can of worms is opened, you could have 50 states or a whole bunch of people coming after this company. >> definitely. and on that list are several class action lawsuits as well so pretty much from every direction. they're getting requests for information. >> yeah, it's kate. one thing that was telling on twitter with you, when this filing first emerged you took a photo of that section of the litigation disclosure, because it was too much to summarize in 140 characters but a picture kind of toll you what was happening. this does happen with companies i cover. once you spot a couple of investors, once one regulate ever does, there's a pileup of other investigations. how interesting, you know i have been out for three months on maternity leave. something that started off as
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what the company framed and bill ackman the hedge fund manager who is on the board, says is an isolated issue with the specialty pharmacy unit which had 7 or 8% impact on net revenue has now practically ruined the company. it's erased the vast majority of the value. there's been a complete shakeup. the ceo is out. it's astonishing. >> absolutely astonishing. it started off as a smaller snowball and got bigger and bigger and bigger. it's a narrative that bill ackman this week was repeating. this drug price increase is a small part of their business and won't do it anymore. it sounds like from wells fargo, david maris has been very bullish about valeant since he covered them early this year, but without if acquisitions or drug price increases this is shrinking that's very concerning at least from his perspective. >> meg, thank you. bringing us up to speed there.
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meg tarell on valeant. be sure to tune in on monday when bill ackman is a special guest for an entire hour. i'm sure he'll be asked about valeant and much more. time for a cnbc news update. sue herera? >> here's what's happening. we continue to watch the trump protesters at the california republican convention south of san francisco. riot police are on the scene and many protesters earlier on broke through the barriers. they were trying to get into the convention center. trump was there, had to enter through a back door. as the entrance was blocked. he finished speaking to the republican gop crowd inside. he had to leave the same way he came in. a military investigation has found human error and fatigue played a role in the bombing of the doctors without borders bombing in afghanistan last october. the pentagon says 16 u.s. military personnel have been disciplined for their roles in the bomb bug won't face criminal charges. a new study out of
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copenhagen finds a link between the chronic inflammatory skin disorder and rosacea and alzheimer's disease. the patients had a 25% increased risk of alzheimer's disease. as we know ronald reagan suffered from alzheimer's disease and now actor will ferrell has decided against playing a dementia stricken reagan in a movie billed as a comedy. a spokesman for the actor says he'll no longer pursue that project. reagan's family had objected to the project saying there is nothing funny about alzheimer's. that is the cnbc news update. kelly, back the to you. >> sue, thank you. coming up, why discussing home ownership levels being near record lows despite extremely low mortgage rates. what's going on with that? we'll ask diana olick. and les moonves will gain more control of the media giant. the latest on that saga coming up. you both have a
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[ beep ] but you'll be glad to see it here. fidelity -- where smarter investors will always be. if only the signs were as obvious when you trade. fidelity's active trader pro can help you find smarter entry and exit points and can help protect your potential profits. fidelity -- where smarter investors will always be. welcome back. it was the last trading day of the week and month. here's how we finished on wall street. the dow down 57 points t s&p the worst performer. it was down 10 or about half a percent. and the nasdaq was the worst, down two thirds of a point here. the cbs executives including les moonves are reportedly working on options to prepare for a post red stone era. julia boorstin has more. >> well, kelly that's right.
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les moonves is preparing for cbs' future after sumner redstone. he controls it through a company called national amusements which owns 80% of the cbs voting shares. when redstone dies or becomes incapacitated, the trust will pass to seven trustees including his daughter. moonves wants to make sure he can maintain his plans to grow the company without those trustees putting up roadblocks in the boardroom. cbs talked with investment bankers about how the company should shift control away from the national movements by collapsing the dual class share structure. a source says it's one of the options that cbs is investigating. now, cbs itself declined to comment. working in moonves' favor and one reason he may not need to execute such a plan is that cbs is up 18% year to date and up 110% over the past five years
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under les moonves. now, perhaps we'll hear more from cbs when they report their earnings on tuesday, but for now, still kelly, no comment from the company. >> we look forward to more next week. thank you. this week the department of justice gave the green line to charter's takeover of time warner cable and bright house. it still needs approval, but already raising questions about whether the government is picking winners in battle between cable and broadband. joining us now adonis hoffman founder of not for profit research group who likes this deal. also with us, todd o'boyle from common cause, who isn't quite so much of a fan. todd, what's your view on why this creates, you know, such a gulf if you will between the cable companies and broadband. >> well, first of all, this merger is totally unnecessary. it's the job of the applicants, charter and time warner cable to
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demonstrate that this merger would benefit the public interest and there's no evidence it would. in fact, it would bring too much concentration to the broadband market, to the cable carriage market and threaten innovation over the top. i have trouble understanding why the fcc would think this is good at all. >> adonis, what about you? >> there are a lot of benefits. you look at the number -- what will become the number two and three cable programmer. this provides a lot of services, broadband services and video services for consumers. but more importantly, what this does is this really -- it's a precedent setting transaction that the fcc and doj have approved. allowing for this new company to do away with old habits and old trends that once were hampering the cable process. cable industry. >> yeah, it's interesting you say that.
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so it does and it doesn't. it also makes it pretty clear they want charter to kind of have to compete and go into new markets. there's lot of incentives now that seem aimed at kind of giving broadband a chance. maybe more than its fair chance. don't you think? >> well, so one of the priorities for chairman tom wheeler has been to provide a regulatory circle or a fence around the online video distribution channels to allow for independent voices and independent programmers to come on. that's what this merger does. so we were all very concerned about the fact that charter and time warner cable had these onerous anti-discrimination clauses in their contract. what this merger does is does away with that. it also allows for the most favored nation clauses to be -- to be allowed universally. so there's a lot of precedent that's been established in this.
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i think what this does is it really lays down a marker going forward for any other further consolidation in this industry. >> yeah. that's why, todd, i understand your concerns about the power of cable. but it seems like with this deal, regulators have a heavy serving of saying we'll make you do stuff to compete and kind of make sure this isn't consolidating power too much. if anything, trying to continue to open unlike they're doing with the set top boxes competition. >> well, the fcc claims that this merger has been conditioned in a manner that will require competition. i don't think there's any good evidence that it actually will. in fact, quite to the contrary we have seen overbuilding clauses in private merger approvals that have really gone nowhere. because they're so hard to enforce. concerning the issue of cable carriage and that adonis spoke to, i sure wish this merger would improve independent programming and diverse programming but frankly, if the
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fcc was concerned it should have included a condition on that and it didn't. to your question about set top boxes i think the fcc is doing the right thing by unshackling consumers from having to rent an old box that just gathers dust at $10 a month. >> that's the different story altogeth altogether. >> you mentioned the concern about independent and diverse programming of course. but it seems like wait a minute, are we an era when there's never been more -- the proliferation of content across all different sorts of platforms seems like it's at its apex, right? >> well, i think you're right that over the top programming offers an exciting new world. and many new opportunities for new voices to enter the programming conversation. i would agree with adonis that if the merger has to happen, there should be strong adm clauses. it's really difficult to enforce those and frankly once you have a company the size of new charter, they learn lots of new tricks of the trade to find different ways to preference
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their own cable bundle over the top alternatives. >> we have to go, but it will be interesting to see if this kind of marks the power shift perhaps from cable to broadband. of course we have to wait for final approval of the deal. adonis hoffman, todd o'boyle, thank you so much. >> thank you. warren buffett is going to do it live, live streaming tt is. the annual berkshire hathaway meeting will be live streamed for the first time ever tomorrow. up next, we head to omaha, nebraska, and get a preview of this year's woodstock for capitalists. find out why homeowners are nearing record lows. what's up? ♪ ♪ ♪
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show me "previously watched." what's recommended for me. x1 makes it easy to find what you love. call or go online and switch to x1. only with xfinity. welcome back. closely watched berkshire hathaway share meeting is tomorrow and now you don't have to go to nebraska to watch it. but becky quick is out in omaha covering that meeting. she'll be asking questions. we loved the interviews this morning. what do you expect? you mentioned a key theme on this, and what do you expect tomorrow? >> i will tell you the easy guess is rain, kelly, lots of it. the forecast is for it to really
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thunder and downpour. i don't know what that means for the crowd, but it's not slowing anything down right now things are pretty busy. they are expecting 39 to 40,000 people to be here this weekend. now part of the reason all the shareholders show up is so they can get things like the deals like the see's candy and the geico booth. but other people are here because they crave answers. they want answers from warren buffett and charlie monger. when they take the stage, they'll get lots and lots of questions from the shareholders. we got the chance to catch up with warren buffett last night and one of the questions i had, what's going on with the lousy earnings season? he told me to slow down a bit, and he said you have to put things in historical perspective. >> well, earnings have been so high. corporate earnings have never been better, you know? as a return on tangible equity, american businesses never had it so good.
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as a percentage of profits and profit margins up and down the line, business has been very good. the steel business has been terrible. i mean, pick out a few areas so it's not surprising that if the economy is not galloping forward and you have earnings at this level, i don't see them jumping a lot from this level. >> now, kelly, that may not be what the bulls had been hoping to hear when it came to stock performances and if they asked buffett what he thinks about the economy they don't get a better answer. i asked him if it feels like a 0.3% economy and he says it does. it seems like things are picking up, you're looking at the 1.5 to 2% gdp and he has different operations that gives him insight on the that. a lot are the companies displayed here today.
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you will see bnsf and he said it's coal loadings that are down significantly, but rail loadings would be down without the coal earnings that's a precursor for what's happening in the economy. if you look around, you see the other buffett businesses here. you have see's candy right here. coca-cola yes berkshire hathaway is the largest investor. some of the other companies that have been added recently. you will see imc. that's one of the huge companies that he added in the last seven or eight years. behind that is precision cast parts. that is the newest member of the berkshire hathaway family. they here with the aircraft engines they helped to build along the way. that's kind of the feel you get here. by the way, there are some deals. i have been waiting for this all day. thankfully, it's finally my turn to get to buy one. for a dollar anyone can get a fudge bar. i think a blizzard is 2 bucks is that right? >> yeah. >> dilly bars are a dollar. >> all proceeds are going to the
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children's miracle network. >> thank you. i didn't know that. proceeds going to charity. that's what we're waiting for as get ready for tomorrow. >> i didn't know if there were going to be deals because i would famously be eating into the profit story. what's interesting, on the one hand you have the oriental trading guys saying the consumer doesn't look all that great, and benjamin moore saying there's an uptick in housing. >> benjamin moore is a higher end paint. but you're right, the one thing the ceo says happens for them is the housing starts numbers. even the permits have been down, even you've looked at lousy numbers around the peripheral, he said the key thing for benjamin moore is the housing starts. that's telling a strong story. last year was a record quarter for them. he said things are looking strong this quarter too. >> i'm afraid that dilly bar
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will drop off the stick there. so we'll let you go there. a long weekend out in omaha. i'm trying to figure out if i can stream this. >> do you think bernie will show up for the woodstock for capitalism? >> no way. >> in two words, no way. >> if he doesn't want people to work for industrial manufacturing companies, he doesn't want pple to work for wall street. >> or the are drug companies. >> where is bernie campaigning this weekend? >> he's in california right now. >> he also had a bunch of layoffs. >> a couple hundred. home ownership near record lows. we're going to talk about the drop in home ownership with our diana olick next. as a vested investor in vests, i invest with e*trade, where investors can investigate and invest in vests... or not in vests. this is my retirement.
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welcome back. as we mentioned last block, home sales, still home ownership is back on the decline to near record lows. diana olick joins us now. what is behind the drop? >> the economy is improving and new households are growing, but two-thirds of those new households are renters. that's pushing the homeown ownership rate lower yet again. the nation's home ownership rate fell to 63.5% in the first quarter of this year. that's not only down from q-4, but from a year ago as well. home ownership peaked in 2004 at 69.2%. it's now close to the lowest level in 50 years. and the problems continue to be tighter mortgage lending, higher home prices, and the fact that rents are so high now, that people can't save for that down payment. take a look at this very cool map from seattle real estate agency. it shows home ownership changes since 1950. the darker the green, the higher
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the home ownership rate. you notice how the west gets very light after the housing crash. and doesn't really come all the way back. that's where prices are highest. even in the northwest. the middle has always had the highest home ownership rate due to the lower prices in the midwest, but it's even lighter there now. eight years post-crash. it begs many policy questions, of course, on mortgage lending, but we're unlikely to see anything change there until after the election. if you want to keep watching that map spin around again, it's on my facebook page. >> i highly recommend it. it's oddly soothing and troubling at the same time. new company, old look. a new chinese athletic clothing line launch this weekend. it looks familiar. a fair price, quality service, and that horrible smells are really good at hiding. oh, boy. there it is. ♪ ohh. ooh. [ gags ] so when you need a house cleaner or an exterminator,
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welcome back. there's a brand-new athleticwear company that just launched in china. there it is on the right. look at the resemblance of its logo to that of under armour. >> it doesn't cross. >> uncle martian isn't even tried to hide it. the image is from the launch under the under armour logo.
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under armor said, quote, under armour is aware of the launch event. this is a serious concern. and blatant infringement. under armour will pursue all legal courses of action. and they should. >> good luck to under armour. good luck getting due process with the chinese government on an issue like this. i also was wondering, is it actually called uncle martian? or just a weird translation? >> just enough to sound like the company. i'm amazed they're this public. >> this has been around for a long time. >> i dread -- donald trump could be all over this like a cheap suit. come on. look -- >> cheap suit? or cheap athletic gear? >> technology was hacked to then help flood the u.s. market. a lot of these companies have had enough. >> you know what concerns me the
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most, including the market right now, you know, i'm a big open market, free trade kind of person. and i feel the tide -- the tide is shifting. >> are you feeling the burn? >> we have to go. >> thank you guys so much. have a great weekend. that does it for closing bell. "fast money" begins now. "fast money" starts right now. live from the nasdaq market site overlooking times square. i'm simon hobbs in for melissa lee. we have tim seymour, steve grasso and guy adami. on fast, warning to the world. the biggest retailer tanking today. is it signaling trouble for the u.s. economy? plus, gold has gone wild. if you missed the rally, relax, we've got another way to play the move. later on the show, apple shares are pennies away from doing something extraordinary. a top


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