Skip to main content

tv   Closing Bell  CNBC  February 28, 2017 3:00pm-5:01pm EST

3:00 pm
>> that does not bode well for profitability. >> throw in border adjustment tax and those margins go away. interesting. >>. >> there may be a target on new jobs. thanks for watching power lunch. >> "closing bell" starts just now. >> welcome to "closing bell." i am kelly evans. >> what do you think? are we going to have history today? >> i bet we do. >> we did have it yesterday. >> this could be history. that would make it a 13-day win streak for the industrial average. 13 records in a row. that has never happened before so we will see what happens in the next hour. many investors waiting for
3:01 pm
president trump's address to congress hoping to get more details about tax reform y. hope you saw senator oren hatch talking earlier today. he said tax reform could be difficult to get done. >> as far as changing the current system that is very difficult because democrats are not cooperating. it seems when you get a brand new president you ought to be at least seeing what can be done. they are not only not supporting him but fighting him with everything they got. >> many major averages took a small leg down on the comments but not by much. we will see what happens here. >> you can see shares of the major brokerages both cutting online commissions. we have a fee fight today. all stocks are getting hit hard on the news. you can see td ameritrade down more than 9%. we are going to get you details.
3:02 pm
panel of retail investors to respond to all of this. >> i'm sure are loving these lower fees that they pay for trading. >> target ceo speaking exclusively to our courtney reagan. we will delve into those comments coming up later. the stock down almost 13%. >> speaking right now at the company's investor. got headlines crossing. we will have the latest and bring the news to you shortly. >> how are we going to fit all of this in? >> happy mardi gras by the way. >> let's start with president trump's activities. kala is at the white house with more. >> any last minute speeches will -- the president signing
3:03 pm
three executive orders. the first is an executive order that aims to support women in stem careers. >> a second visits the regulation and this executive order instructs epa to revisit this or review this and that could hand back the oversight over some of the bodies of water. and then there is an executive order that prioritizes in the president's word historically black colleges and universities moving that agenda item from the education department to the white house and then the president will be meeting with the guests of himself and the first lady to tonight's address. those are mostly guests that are families affected by violence committed by undocumented immigrants as well as the widow of the late justice antonin scalia. as far as that peach i am told it will be optimistic yet
3:04 pm
realistic. expect a lot of talking points about the state of the economy, about what the president inherited about a trade deficit and about how the administration will seek to create jobs. as for tax reform and health care the devil will likely not be in the details because remember the audience in the congressional leaders who will be there are the ones who will be putting pen to paper on legislation. you guys just aired comments from senator hatch. you had speaker ryan talking about how he believes that entitlement reforms are on their way through the repeal and replace of obama care. and then we had mitch mcconnell weighing in. here is what he said. >> eight out of ten americans want it either entirery replaced or changed. the status quo is not an option and what we are doing is not the status quo. >> reporter: there are a lot of legislative items on the agenda. we will see which one the president prioritizes tonight.
3:05 pm
>> thank you. with hours to go before that address. now to target tumbling on the heels of earnings miss. courtney reagan did speak a couple hours ago. she has the latest for us now. >> so target did release the disappointing earnings then they addressed the community here in new york city for their annual meeting. they laid out a three year plan to spend $7 billion investing in the supply chain and in the stores. i sat down with ceo and asked how he plans to get back those sales that he has been losing over the last six quarters with a plan that looks similar to what they have been doing. take a listen. >> we have lots of work to do. we talked to the investment community about today and this is not going to happen overnight. it will be a three-year plan that we put in place. this first year is about
3:06 pm
investment. we ha we think with the disruption in retail today there is significant market share opportunities because people are closing stores. we have an opportunity to be one of the future winners. >> as he begins to open up more small format stores. he spent some time in washington, d.c. several trips speaking to president trump as well as lawmakers several times about the border adjustment tax. i asked him where he thinks everyone stands. he said he thinks that they understand the impact on retail but understanding and actually putting it into place may be two different things. take a listen. >> they don't wuntant to see prs go up 15% to 20% for families buying clothing for their kids, school supplies, basic staples. they understand the impact to retail and target pays 35% effective taxes today. if this were to go forward our
3:07 pm
tax rate would go over 75%. so they understand the implications. i think we are going to end up in a much better place. >> if that tax does go forward i think target can kiss the three year plan good bye. back to you. >> that is the thing. you look at the stock and clearly the stock market doesn't want to wait three years for a turn around at the company especially when he is talking about two different strategies investing more in plants and new stores and at the same time trying to gain market share which means fewer profits down the road. so that's clearly not pleasing wall street right now. >>. >> that is exactly right. target says both online and in stores very important to us. the majority of target sales we know a little more than 95% are still coming from those stores so they don't want to ignore that part of the business but the growth is coming from
3:08 pm
online. it is a delicate balancing act. i'm not sure that analysts and investors are buying it today by seeing that share reaction. some of the worst reaction we have seen in almost 20 years. >> thank you very much. courtney reagan. good job with the target ceo. let's get to our closing bell exchange. joining us doug sandler next to us at post nine and next to him is peter costa from empire executions and next to them is rick santelli at the cme. end of the month. it has been a stellar month. gains between 4% and 5% for major averages. we could set the record. you are still holding that there has to be a correction coming in the near term here. >> i will stick with that story until i am wrong. i don't think i am wrong. one thing i want to make a point of, i think that us breaking a record today if we do go positive and the dow is up
3:09 pm
for -- i think that is more significant than breaking 20,000, breaking 10,000. i think that is the most significant, one of the most significant events as far as technicals in trading on the floor since i have been down here. i think it's huge. but i think that if president trump is all of the nonsense he pulled during the campaign that's not going to sit well with investors. i think people are looking for a little more. i know you can't be specific about how you are going to get things done because congress is going to do it but there has to be clarity from his point and from his view for investors that feel comfortable that tax reform is going to happen.
3:10 pm
>> it's almost like they can keep this thing going by continuing -- >> want to see plausibility today. that's what i would like to see. i would also like to see bridge building. i think there is a big example to get done. i think bridge building is necessary. you either have one or the other. i don't think we can have either but we will see. >> where would you be investing? >> a little different than peter. folks we invest for -- >> we suggest anybody took the cover off the market reasonable
3:11 pm
valuations and to be honest i think the market was held back prior to the election. once we had clarity i think a lot of the trump balance is we know who it is. i'm still a buyer here, maybe not with both feet but certainly not taking money out of the market. >> what do you think the markets want tohear from the president tonight? >> i think they pretty much are pretty happy hearing what they have heard. anything else is a bonus. i know it just seems so right to say things like peter said. president should be more normal or he should get more details. let's face it. from the beginning of november before the election to where we are now, 2,800 points. setbacks few. volatility low. i still say this is repricing. whatever investors are looking at i think that we, pundits of the market or media seem to want a whole lot more detail.
3:12 pm
maybe investors would like that. i think it is really difficult to know the answer to that because the proof is what i'm looking at at the dow, nasdaq and s&p. though this may be a setback with regard to its strength it's not the amount of days up. it's the distance travelled and like when you look at an investment ratio. the distance travelled against the back drop of the volatility we have seen, something important is going on here. it doesn't have to do with details. i'm not sure that trump is the only thing it is looking at. i still say we have a trifecta of government that is going to be messy. we can't do anything without it being messy. i still say we have all parts to get something done no matter what the sausage factory looks like. >> well, we will know tonight. thank you guys. appreciate your thoughts on today's market action as we wait tosee if we get history today. >> dow is down 25 points. the s&p is down six points to
3:13 pm
2,363. transports down more than 50 points. nasdaq down 35 for its part. russell giving back gains and then some. down nearly 1 1/2 percent. >> and then utilities. >> very, very strong and again today up sharply. >> escalating fee fight in the retail brokerage industry hitting those stocks. we'll tell you which companies just cut trading fees. retail investors will be weighing in on what they are doing. >> when jp morgan ceo jamie dimon speaks everybody listens. we will go live to the investor conference here in manhattan where jamie dimon is making a presentation as we speak. you're watching cnbc, first in business worldwide..
3:14 pm
3:15 pm
3:16 pm
welcome back. check out brokerage stocks which are lower after fidelity and charles schaub dived. >> they jumped into that pricing war.
3:17 pm
this all happened. this outbreak of the pricing scuffle is happening after years of stability with a big online brokerage charging $8 to $10 per listed commission trade. about a month ago schaub touched this off going down to $6.95 per trade. schaub immediately matching that. it is telling that they have been leading the way because they are the two firms that are broadly diversified. they don't depend as much on commissions for revenue. more than 40% of their revenue. e trade somewhat less than that. what is really going on, too, we have a rate hike in december. that gave more net interest income to the companies which schaub wanted to spend some of that in the way of market share graph. these guys are mostly ast gatherers. i don't think they feel as if an enormous number of people are
3:18 pm
shopping every day. you can always find these kinds of commissions if you are an active trader. does it make that much of a difference for most investors? it helps pay less is better than paying more. i have been told average retail commission size is about $20,000. saving $3,000 or $4,000 maybe that doesn't move the needle but does tell you the direction of this industry is to essentially scrimmage over those available accounts that are out there and try to bring assets in house and sell you something else. it reminds you of wireless carriers. a hand full of big carriers trying to knock some customers. the market doesn't love it and hitting these stocks today. >> how sensitive are consumers? is it the change as it might have been 10 or 20 years ago? >> i think the incremental price reductions are so marginal.
3:19 pm
there has always been apps out there that are promising free trades. interactive brokers has been the value leader. so i don't think it really sends a lot of customers in motion but it is just enough to get some attention and essentially say we are here for all of your investment needs and you can trade that much more cheaply. these are network businesses very much like wireless carri carriers. >> you know it is serious when the e-trade baby comes back. >> thanks, mike. >> i missed that one. >> we all do. we will see you next hour. >> for more on this fee fight whether effecting retail investors and where they are putting their money it is our monthly retail investor panel with ceo, veteran investing ceo and accountant thomas. good to see you both. you loving the lower fees. i moved some of the money last
3:20 pm
year. their offer is if you have $25,000 you get 33 trades a month. even if you don't have that money if you have an old 401 k you can roll it over and combination of accounts and it helps with dollar weight costing. i had synchrony financial and dropped down to 26 and 24. i am able to buy 10 shares and 20 shares. before you wouldn't want to do that because the cost doesn't make sense to buy 10 or 20 shares. when you can do it for free it makes a lot more sense. >> what impact is it having for you? >> for me personally it is not having that big of an impact because i tend to buy stocks and hold it a longer period of time. that is actually true of most of the better investing members that are part of our organization. we tend to look at not only the price for the trade but the
3:21 pm
other services that the stock brokerage is providing. >> do you find one that most members tend to use? >> there is probably regular five that everybody is familiar with. some of our clubs also use company folio investing because they like the window trade option that they provide. for the most part i think our members are using traditional brokerage. >> let's talk about companies you like. they are meat and potatoes companies. >> i think they provide good long time growth. some are growing faster than others. that is what i am looking for, a little bit of balance in there. i think that actually i had signature bank for several years now. i was buying it when its price was lower.
3:22 pm
now it is doing much better. i think it will continue to do well especially with the way the current environment looks. so i think that will do well. looking to take advantage of increased spending on infrastructure in the country. >> that's the buzz. we'll see what the president says about that. >> tommy mentioned -- we saw one of your picks. what else here? >> i like cracker barrel. you have the domestic situation. taken a little bit on the chin with the whole mexico thing. that company has been growing. >> same thing with -- i tend to be more value player. those are my favorites. i like the banks because you have three things working for you. you have interest rates going up. you have a lower tax rate.
3:23 pm
so those are all good things for the banks. and i'm sticking with them. >> you know, i can imagine you are not going to worry too much about short term swings. there are some market veterans who are worried about the level of the market. you are the shorter term trader here. do you worry that the market may be a little ahead of itself here? >> i have had a higher position than normal for the last few months and haven't seen the selloff. i will not chase things at 52 weeks highs. dow chemicals another spot i like. it is hard to put new money to work when it is 50 cents off the high. i'm sure it will come. >> we have to go. i'm wondering because we have seen data -- >> have you seen -- >> we have seen some very encouraged. one of the comments that we hear frequently in community boards
3:24 pm
is people are havinga hard time finding stocks they want. people are engaged and paying attention to what is going on and are waiting for that eventual opportunity when the stocks they are looking for is going to come in at a price they are willing to pay for. >> good to see you both. thank you. two smart retail investors. thanks for joining us. >> thank you. >> 36 minutes left in the trading session. the dow is down 24 points. will we be 13 up days in a row? that remains to be seen. a couple of drug makers in the red today. we will tell you why coming up. >> and then the earnings picks up again after the bell. we have sales force, go pro and etsy and weight watchers. we will break down the numbers as soon as they hit the tape. marc benioff will speak with jim cramer. don't miss it. , how can i help you?
3:25 pm
i'm considering a home equity line of credit, but since i'm over 62 years old, a friend thought i should first look into a reverse mortgage line of credit first. can you explain the difference between the two? sure, well, when you take out a home equity line of credit you're required to make minimum loan payments every month. for a while, that payment may be interest only. but after a set period of time, you'll have to start paying back the principal as well, which means your monthly payment may be substantially higher. a reverse mortgage line of credit also allows you to borrow against the equity in your home. but, it has a flexible monthly payment feature - giving you the freedom to pay as much... or as little... as you wish. you even have the option to make no monthly loan payments at all! so if i wanted to pay, say, $500 a month, i can do that? yup! if i wanted to pay as little as $50 a month, that's ok? no problem! or if i wanted to make no payment at all, i can do that? absolutely! since there are no required monthly principal or interest payments while you live in the home, a reverse mortgage line of credit gives you the flexibility to control and manage your loan. that sounds great.
3:26 pm
nearly one million savvy americans have taken advantage of the significant benefits of a reverse mortgage, and that number continues to grow. so now's the time to discover how a reverse mortgage from reverse mortgage funding can help you take control of your finances. with the flexible payment feature, you have the option to pay as little or as much as you like each month, for as long as you live in your home. if you'd like to pay down the principal and interest of your reverse mortgage early, feel free to make monthly payments of any amount you'd like... with no pre-payment penalties. or, use the benefit of a reverse mortgage line of credit and choose to make no monthly payments at all. so if you're 62 years or older, contact reverse mortgage funding today to receive a free information kit about reverse mortgages and the flexible payment feature. just call the number on your screen or go online and visit flexreverse.com isn't it time to take control of your finances? call now or go online at flexreverse.com and request your free reverse mortgage information kit today.
3:27 pm
welcome back. all the major averages are lower today. the dow is only down by 27 points. we have seen this the last several sessions in a row. it managed to turn positive on the bell. it is the end of the month and maybe there are rebalancing effects weighing on that. we'll see if we can do it next time. the s&p is down six. russell coming off the lows is still down more than 1.3%. let's check other movers on
3:28 pm
this trading day. we have tenant health care insurance plunging with hospital operator's latest results and guidance coming in below street estimates. weak demand cut into quarterly revenue which fell for the first time in six years. that stock down almost 15%. perrigo falling, as well. that drug maker issuing disappointing guidance and delaying the annual report to review accounting practices related to its revenue recognition. it is selling the royalty stream from that multiple sclerosis drug to royalty farma for up to $2.85 billion. cfo judy brown is resigning to serve as a senior vp at amgen with all said and done shares down almost 11.5%. valiant pharmaceuticals is also in the red after issuing disappointing guidance which cast a shadow over quarterly earnings beat. the stock down almost 14% today.
3:29 pm
big volatility there. >> a lot of individual movers. time for a cnbc news update. >> russian president vladimir putin saying moscow will not support new sanctions against the syrian government. the u.n. security council will vote later today on a resolution banning supply of helicopters to syria. putin said that resolution would undermine trust in the negotiation process. italy's mt. etna coming to life monday night pouring orange fountains of lava down the sides of that mountain. authorities said that the eruption posed no danger to nearby towns. pretty dramatic pictures. running back adrian peterson is about to become a free agent. the minnesota vikings declining the option to keep him for the 2017 season saving that team $18 million. pet peterson told espn that the door
3:30 pm
is open to find common ground with the vikings. saudi arabia's king is heading toi indonesia but is no exactly traveling light. the king is bringing 506 tons of luggage and cargo with him including two mercedes-benz limos and two electric elevators. that's the news update this hour. i don't know what you do with the electric elevators once you get them there. >> one is the backup for the other. >> there you go. that makes sense. i got that. i understand. >> you never know what the weather is going to be like. >> you never know. >> joining me on the floor with 30 minutes left in the trading session and the dow down 28 points tim anderson who also travels with a lot of luggage when you travel, as well. >> certainly. >> a lot of expectations for the president's speech tonight. one trader was just telling us
3:31 pm
if wall street doesn't hear what it wants we can have a selloff tomorrow. what do you think? >> that is always possible. i think he is going to talk about taxes. he is going to talk about national different and he is going to talk about trade and i'm sure there will be a number of add on things that he throws in there, also. clearly it is going to be a different type of speech than at the inauguration and different speech than last week. it is really state of the union type speech. >> we hear from a lot of people who are not in the market as the market is continuing that they are waiting for the pullback of some time to get in here. could this provide that, do you think? >> it could. we have probably one of the weaker days for internals today than we have had in the last couple of weeks. volume is a little more than two to one. to the down side.
3:32 pm
russell is down almost 1.5%. we still have a number of big events. snap chat ipo. the jobs report on friday. >> that is next week. i made that same mistake earlier. you have a little time to play on that one. you're welcome. >> okay. >> tim anderson. i was going to have warren beaty correct that later. he is still giving interviews on the oscars. >> thank you, guys. 30 minutes to go. a little less than that. dow is down. we have moved lower since last check. we go live to investor day conference for highlights of ceo's jamie dimon presentation. ahead foreign brands dominate new list of top autos. stay with us.
3:33 pm
safety doesn't come in a box. it's not a banner that goes on a wall. it's not something you do now and then. or when it's convenient. it's using state-of-the-art simulators to better prepare for any situation. it's giving offshore teams onshore support. and it's empowering anyone to stop a job if something doesn't seem right. at bp, safety is never being satisfied. and always working to be better.
3:34 pm
on a perfect car, then smash it into a tree. your insurance company raises your rates. maybe you should've done more research on them. for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident.
3:35 pm
and if you do have an accident, our claims centers are available to assist you 24/7. call for a free quote today. liberty stands with you™. liberty mutual insurance. shares of cigna jewelers have been under pressure. the washington post reports
3:36 pm
declarations from 250 women and men who work at sterling jewelers division filed as part of a private class action arbitration case. in the documents female employees allege that they were routinely groped, demeaned. -- includes 69,000 women. sterling released it is critical to understand that an arbitration claim was brought against sterling in 2008 that alleged gender discrimination in pay and promotion. none of the members have brought legal claims in the arbitration for sexual harassment or sexual impropriety. it never included legal claims of sexual harassment or hostile work environment discrimination end quote. the post reports that other senior executives were among
3:37 pm
those accused of demanding sexual favors. >> we have a news alert on amazon web services now. kelly, this is what we know so far. amazon.com's cloud computing division known as amazon web services or aws has suffered an outage this afternoon. it effects one of the storage systems in the u.s. specifically something called the s 3 which stands for amazon simple storage service. basically it stores large amounts of data accessed by customers whenever they need it or want it. you think website images. thousands of customers use this service and customers who use the service may see outages in their own web services since many use the systems to run their own websites. as of now amazon says it is still working on fixing it. in a statement they say they believe they know the root cause of the problem and are working
3:38 pm
on implementing something that will take care of the issue. a host of big name companies are aws customers including likes of apple. if you take a look at apple's status page online right now that is what you are seeing here, many web-based services are experiencing what they call issues although we have not confirmed that the issues are tied directly to aws. it is an interesting development. all of the yellow squares on the screen are issues that amazon has or apple has with the web-based services. something to keep an eye on. an interesting development that effects a lot of different companies. we'll bring you the latest as we know more. back over to you. >> as we saw the stock is only down a half a percent roiight n, if you are looking to market response. >> yes indeed. >> thanks. see you later. meantime, tech and consumer credit are two areas that jp
3:39 pm
morgan hopes to grow in 2017. our williford frost is at annual investor day and joins us with more on what is being said especially by jamie dimon. >> absolutely right. jamie dimon just finished his address to this investor day. he said he does not believe in the pessimistic view of secular stagnation. the lack of growth he says it is down to us to human inaction. in order to improve growth this is what america needs. >> america needs corporate tax reform. we have been driving brains, capital, businesses, research overs overseas now. it is not hurting jp morgan. it is hurting the average american. we are big supporters of getting tax reform done. >> that was top of his list and he said it would improve the economy via improvement in wages as poopposed to jp morgan.
3:40 pm
he did say that tax reform could take up to 12 months and is positive on deregulation and infrastructure spending. as for risks out there his overarching theme was one of positivity. he said he wasn't concerned too much about geopolitics around the world. he wasn't concerned about markets compared to this time last year and wasn't concerned about credit. as for the risks, there were two on the list. number one was trade, in particular with china. that could kick off not so much with mexico, something mexico described as good neighbors. also interest rates. he was asked was there a risk to the market place when interest rates go up. >> not for jp morgan. i think the bond is subject to bounce of volatility that will surprise people when the time comes.
3:41 pm
and the volatility when -- when they are scared and they realize may be inflationary environment. i look at that as will someone get hurt? yeah. will it be systemic? no. someone is going to get hurt. >> other take aways is pretty much every head of department underneath him. he talked a lot about investment in technology and how that is going to bear fruits. smaller banks he said they have been hit hardest by excessive regulation and stand to benefit if that gets rolled back. he also said some of them need to merge. there are too many banks in the u.s. he said jp morgan is happy with organic growth prospects and said smaller banks need to merge together. >> just a quick question as we watch headlines coming across. jamie dimon said credit hasn't ever, ever, ever been better. can you add context around that? >> i think you missed one of the
3:42 pm
evers there. a little bit -- it was a little bit tongue and cheek when he said that. it came off the back of when people said what are negative points on the economy. the overarching theme was something very positive and that he wasn't really concerned about any risks out there and thinks credit has been better than ever before. just in terms of the short term if you were looking for a little bearish take away speaking to analysts at lunch time was the head of the investment bank programs wasn't as upbeat as some people were expecting given animal spirits unleashed. overall jamie dimon's outlook one that he is not concerned about risks out there. >> thank you. >> once upon a time when he speaks people listen. when jamie dimon speaks. >> or buys shares of jp morgan
3:43 pm
people listen. about 18 minutes to go. dow is down 44 points. so the road to a positive close is getting rockier. s&p is down nine. russell down 21. that is a percentage and a half today. president trump may be touting america first but when it comes to automobiles americans are saying otherwise. we have details coming up.
3:44 pm
3:45 pm
3:46 pm
welcome back. consumer reports is the bible for many car buyers. that is not good news for the american auto makers mpt phil lebeau joins us with results from consumer reports latest analysis. >> this is the annual top picks auto issue. it is one of those issues followed by people inside the industry and consumers overall. here are the top four this year. this is based on their own testing as well as critique of subscribers rating cars and trucks. top five most of these brands where they were last year with audi as number one. what about the big three? the best brands of the big three, buick at number ten. lincoln at number 15 for ford and chrysler at number 19.
3:47 pm
generally speaking consumer reports says the big three brands continue to lag foreign competitors. >> you look at general motors they are hurt by heavy trucks. reliability isn't there. you look at the bottom of the brands it's not so much the domestics. it is a bit of fiat chrysler. they are at the bottom. the worst vehicle is fiat. >> they do come in at number 31. we should point out when we reached out to the company they said we appreciate consumer reports but we want people to come into the show room and drive the vehicles for themselves and should point out that sales especially when you look at brands like jeep they have outpaced the industry by a wide margin. finally, i want to talk about tesla. as you take a look at shares of tesla this is the first year that consumer reports rated the brand. now that they have the model x they can be rated and they came in at number eight.
3:48 pm
tesla officially the highest ranked american brand according to consumer reports. guys, back to you. >> did you read how fast it can accelerate? in the journal they are talking about the electric car can accelerate like crazy but then everyone else can catch up after that. >> that is true. if you have ever been in one and i have been in them many times especially at tesla, it's that instant torque. if you want to lane change ormerge right away not a problem. >> took me back. >> i'm still just digesting the highest rated u.s. made car is the tesla. >> who saw that coming? >> what do you think? >> we come back here but we'll
3:49 pm
see. it happened in the last 30 seconds on friday. there is still time certainly with the dow down. today as we all know is fat tuesday. mardi gras, an event not lost on our friend who is bringing the festivities of bourbon street to wall street with his market acronym a few days early. coming up. what did you have in mind? i don't know. $6.95 per trade? uhhh. and i was wondering if your brokerage offers some sort of guarantee? guarantee? where we can get our fees and commissions back if we're not happy. so can you offer me what schwab is offering? what's with all the questions? ask your broker if they're offering $6.95 online equity trades and a satisfaction guarantee. if you don't like their answer, ask again at schwab.
3:50 pm
this car is traveling over 200 miles per hour. to win, every millisecond matters. both on the track and thousands of miles away. with the help of at&t, red bull racing can share critical information about every inch of the car from virtually anywhere. brakes are getting warm. confirmed, daniel you need to cool your brakes. understood, brake bias back 2 clicks. giving them the agility to have speed & precision. because no one knows & like at&t.
3:51 pm
3:52 pm
so art cashin early on told us there was a lot of sell orders coming into the market here calling into question the ability of the dow to finish positive. on the close the market showing no imbalance to the buy or sell side. >> look at this. we are down less than 18 points. >> we might do it. happy mardi gras to our friend independent investment consultant. >> thank you. i just want to say laissez les bons temps rouler. let the good times roll. happy mardi gras everybody. carnival comes from meaning meat.
3:53 pm
lent they took away meat. >> this is going to be on the final. pay attention. >> mardi. m in monetary policy. i think david rosenburg says that is the key driver. it is but in the short term it is a momentum-driven market so the fed who cares mptd the a is asia. china index is up 12%. taiwan 10%. singapore, 10%, hong kong 10%. that is indicative of the stimulus and the stability that is managing in china. the r is resurging profit. they are up 11% next year. europe is supposed to be up 12% and 15%. europe is fighting terrorism,
3:54 pm
vladimir putin, banks issues and immigration. those four issues. >> and a possible break up. >> and populism. >> if she wins on shakespeares birthday the market will likely drop. time to buy. the valueuation difference is at a 40-year low. so cheap and earnings expected to do well. >> dollar and inflation. dollar vigilance. you have trump talk tg down. you have mu mnuchin talking it up. up 3% last year and i is inflation. 2.3 and 2.5% is the headline and the core inflation index. you want to go with europe. japan is not a bad place to look, either. >> you giving anything up. >> we wish a good state of the
3:55 pm
union address and god bless america and laissez les bons temps rouler. >> and do that responsibly. >> thank you. >> they are going to tease us. the dow is down just 19 points. do we make history with a 13th consecutive gain? >> after the bell diversity ceo, compensation and board elections are on the docket. we will break down the big votes live from cooper teeno. y you're watching cnbc, first in business worldwide. big plans. so when i found out medicare doesn't pay all my medical expenses, i looked at my options. then i got a medicare supplement insurance plan. [ male announcer ] if you're eligible for medicare, you may know it only covers abobo 80% of your part b medical expenses. the rest is up to you. call now and find out about an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company.
3:56 pm
like all standardized medicare supplement insurance plans, it helps pk up some of what medicare doesn't pay. and could save you in out-of-pocket medical costs. to me, relationships matter. i've been with my doctor for 12 yea. now i know i'll be able to stick with him. [ male announcer ] with these types of plans, you'll be able to visit any doctor or hospital that accepts medicare patients. plus, there are no networks, and virtually no referrals needed. so don't wait. call now and request this free decision guide to help you bett understand medicare... and which aarp medicare supplement plan mit be best for you. there's a wide range to choose from. d there's s much more to see. so we found a plan that can travel with us. anywhere in the country. [ male annncer ] join the millions of people who have already enrolled in the only medicare supplement insurance plans endorsed by aarp, an organization serving
3:57 pm
the needs of people 50 and over for generations. remember, all medicare supplement insurance plans help cover what medicare doesn't pay. and could save you in out-of-pock medical costs. ca now to request yo free decision guide. and learn more about the kinds of plans that will be here for you now - and down the road. i have a lifetime of experience. so i know how important that is. with e*trade you see things your way. ♪ ♪ you have access to the right information at the right moment. ♪ ♪ and when you filter out the noise, it's easy to turn your vision into action. ♪ ♪ it's your trade. e*trade. ♪ ♪
3:58 pm
coming up on the last two minutes of trade and they are going to do it to us again. this is just like last friday when the market was hovering. the dow i'm talking about and then in the last 30 seconds is when we saw the buyers come in and take us to the new high there. down 12 points. we have been up 12 trading daywise 12 record highs something that hasn't happened since january of 1987. if we finish positive today 13th consecutive high that has never happened in history and down 14 points with 90 seconds to go, bob pisani. >> maybe we will make it. the president's speech, have you
3:59 pm
seen the odds of a rate hike in march. cme now 40%. going up with two year yield moved up. about a two week high. we will watch that and see if anything mr. trump says increaseathize odds that the fed may react with more aggressive rate hikes. the fed still moves the market. >> have you seen utilities? they have been on a tear. the dow utilities up seven points. >> overall it was a good month for the markets. we are up about 4%. you can see the gains that we had, banks did well up about 5%. semi conducters did well. retailers up. oil and gas stocks were down. nothing to do with mr. trump. problems with people getting to the $60 target. the market continues to bleed in the trump rally and continuing to give him a pass on this
4:00 pm
despite concerns that it may take longer than people anticipate. >> i suddenly feel like a chicago cubs fan although that is a bad example. they will have to wait until next year. no gain unless they pull off a miracle. the dow down 25 points. stay tuned for the second hour of "closing bell" with kelly evans. thank you, bill. welcome to "closing bell." i'm kelly evans. and we thought it might happen on the close today but the winning streak has been broken. so the streak lands to 12 days up until yesterday. we have never had the dow set 13 consecutive record closes and that will still be the case. the s&p dropping a quarter
4:01 pm
percent. the nasdaq down 2/3 of one percent. the russell 2,000 small caps giving back yesterday's gain down 1.5%. we will have more on the moves. jp morgan ceo jamie dimon advocating for corporate tax reform. we will get highlights coming up. it will be a busy hour for earnings. we will bring you results from sales force and weight watchers up 10%. rival nutrisystem had great earnings. we will get to all of these. joining me on the panel we have senior markets commentator michael santoli feeling spry. >> all set to go. horizontal for one day. >> after that tamiflu. welcome everybody. mike, it's still an impressive streak but the run is broken
4:02 pm
now. the internals looked nowhere near as good. >> it is almost as if somebody with money thought it mattered if the dow got to another record or high close today. what it has done is to accent wait the character of the phase of the rally which has been very incremental, finding a way to stick in the vicinity of all-time highs even though most aggressive sectors are leading the way. utility staples and health care carrying the record. today underneath the surface the average stock was down significantly. had twice as many stocks down. clearly it softened up to a fair degree. has that been enough rotation that we go on from here or is that really a falling away of some of the pillars that are holding the market up? >> we had big earnings misses weighing on the market especially retail and health care. how much did that contribute? >> i think the retail issue continues to be a problem for
4:03 pm
that sector of the market. that is a well known story at this point. i think target is some stock specificness there and warned in january. and to mike's point it has been a very incremental gain. we had a 12-day winning streak. just in the last year alone there have been four other periods where we saw a bigger 12-day gain than we have over the last 12 trading days. that kind of helps to put the recent move in perspective and we did actually set a record today. that is the average intraday range of the s&p 500 over the last 50 trading days is narrowest on record. today we surpassed the smallest range from february '94. i have to hand it to you that you can keep coming up with stuff to talk about every day because this has been a flat line market the last two months here. >> i have tons in here. if you just look at the stories today like we mentioned.
4:04 pm
we have target. we have discount brokers doing a fee war with each other. auto zone and hertz. hospitals we talked about valiant. cigna is a whole other story. youtube and performance. comcast may add it to set top box with a billion viewers a day. netflix might launch a pay as you go service. >> when you talk about the corporate specific moves they have been skewed to the down side. you talk about pharma move and retail. it is not as if it is a trend. it does show you there is a defensive tone out there right now. maybe you get the last batch of earnings. >> the macro piece of data other than the fact that -- chicago pmi was good. 57 versus 50. consumer confidence, the highest since 2001. >> people have confidence that something is going to happen.
4:05 pm
we are going to get some indication of that tonight. i think the market has been bumping along on the hopes and optimism about so many things whether growth or infrastructure. all of those things that we have been talking about now for a month and a couple of days. tonight we get with the president's speech to congress i think we start to see whether or not congress is going to work with them, whether he will get something depending on the approach with some of the things. and then you can start to put some meat on those bones. alternatively, you might feel differently. you might think he will have a confrontational relationship with congress. you may not get some of that stuff. it makes sense to sort of stick around here until you have some evidence that things might be different. >> by the way, we also had comments on halftime report earlier senator saying it would be difficult to change the current tax system. he was blaming democrats saying it is too partisan and not going
4:06 pm
to get on board with anything we are planning. the big reveal will be if there is white house support for the border adjustment tax. >> some kind of road map maybe to try to tip one way or another. i don't know that you can necessarily bank on that. i also don't they think that the markets have gotten themselves cranked up into this very intense pitch of expectation of needing details today. if you look at the action of the sectors it's not as if those tax reform dependent areas have been the ones that everyone has been laying chips on right now. i think the market has been viewing it as there is a lot of policy uncertainty. chances are it skews slightly positive than negative even though we don't know how to get there. >> i don't think you mention that cocoa has been on a six-month skid here. that hasn't happened since may of 1999. if there was anything more emblematic of this market i don't know if it is because i have 40 days of not eating it.
4:07 pm
that might be a different story. >> we will stock up tonight. >> i think to what mike was saying we keep hearing that trump has to say be diplomatic tonight and say this and that. he hasn't said any of that since he has been elected and the markets have done just fine here. i think you are seeing the utilities like you said rally here because there is some concern on the part of investors that maybe things will take a little longer. that is why you see interest rates not rising as much. interesting today it rose to the highest level since 2001. the trend since the election has been lower and middle income consumers seeing a big confidence boost. this month you saw a complete reversal of that where they saw the fourth largest one month decline in confidence on record going back to 1967. >> and then on the high lend. >> the high end kept going. trump was campaigning for the middle and lower class vote to make their lives better, there
4:08 pm
is a little bit of doubt under those consumers right now. >> this is exactly the issue. and whether the jobs report next week shows that people are participating more in the labor force, that is the hopeful thing. if they are not this absolutely becomes the defining issue for president trump. >> you were going to start to get these data which will be -- he owns the data. the 1.9% gdp number is not his. we are going to start to see these things. you will start to be able to benchmark the things he says versus the things he promised. i do think it is important to get some -- it may not be -- we are not going to get a road map tonight but we will start to get an approach. he is fighting with everybody. all the institutions. the only one he hasn't gone after is the legislative branch. they don't really want to have a fight. there are things like fiscal stimulus.
4:09 pm
you is freedom caucus. you have wrangling over the debt sealing that needs to be pumped up. all of this stuff could come into a confrontation that changes perspectives about the ability to get pro growth policies through the congress. >> the earnings are coming in. let's get to sales force results. >> sales force is basically in line on the top line and on the bottom it is a beat. revenues at 2.29 billion basically in line with street sfekitations. eps at 28 cents per share. the street was looking for a quarter per share. on guidance first quarter a little bit light. four year guidance is in line. another couple of metrics we are trying to track is billings which is an indicator of future revenue. we are digging into this report a little bit deeper and taking a look at that number.
4:10 pm
and we'll get back to you right now. the stock is moving up 2.46%. kelly, back to you. >> thank you. don't miss jim cramer's interview with marc benioff. bottom line -- >> it was good enough. what is interesting is where the stock sits right now. in the after hours gets to about 83. once in 2015, once last year, also recently between 83 and 84. never in its history been above that. >> let's move on to palo alto networks. those earnings -- >> i'm going to pick it up here. we are looking at pal oe alo alr security firm reporting earnings. world seri wall street calling for 62 centser. revenue at $423 million.
4:11 pm
the company talking about that. they say while fiscal second quarter revenue was yet another record for the company we were disappointed that we came in below top line expectations due to some execution challenges which we are moving quickly to address. that is the ceo of palo alto networks. we are looking at shares down as much as 12% in extended trade. >> seema, i should have said. thank you so much. a tough quarter for palo alto. any thoughts? >> these stocks have been under pressure. you couldn't think of an industry that would be better you would think with all of the issues of cyber security out there. we have the issue today. but these issues that come up you would think this would be the prime stop for palo alto. the stock obviously isn't seeing great reaction right here. sales force getting back up 2%.
4:12 pm
in the last ten years the february quarter has been the best quarter for the stock as far as reaction to earnings. eight out of ten quarters it has been positive the day after earnings. we look at average gain of about five percent. >> it's funny you mention that because you say it is under pressure at this hour. tough to call it down about half a percent. what does it say to you if it doesn't have that historical perform significanpe performance? >> it is hard for the stock to get above that level. if you don't have a positive reaction it tells you maybe investments are getting a little fatigued on the stock. >> that is why there has been a lot of talk about acquisitions and different ways to continue to drive growth. >> it is at a size and level of maturity that it can no longer be about having top line growth in the sector. it has to accelerate or at least be a little more clear about how it is going to get there.
4:13 pm
it is trading near highs. to paul's point, if historically this is one you get bang for your buck in the earnings report and doesn't show up that is usually a reason to take focus. >> anything to add there? >> i am looking forward to hearing jim cramer talk to marc benioff. these issues around immigration are going to have some -- i would love to know what they think that would do to potentially their costs, bottom line. i am sure jim will ask him that. if he doesn't ask him i bet marc will say something. >> let's get to youtube now. we have breaking news with julia boorstin. what is happening here? >> we are here at youtube's office space here and they just announced a new tv bundle called youtube tv that will include
4:14 pm
live streaming of abc, cbs, fox, espn, regional sports networks, total of about 40 channels. it will cost $35 and will be accessible for six different people to use their own custom streams. cloud dvr with no storage limits. this being youtube they are including access to youtube originals. this, of course, is going head to head with the service that hulu is planning to launch. this is a skinny tv bundle. live tv. big departure to move to this direction of paid subscription service for $35 for six streams. >> this is big news. you said $35 for up to six accounts. any idea as to whether this is -- who will be included? >> we have the list of names
4:15 pm
here. starting off with all the regular broadcast networks, nbc, cbs, fox r, abc. when we talk about espn and disney, espn is included in this. the assortment is a classic skinny bundle. we have seen these from directv now as well as dish's sling tv. this i was looking at list of channels. cnbc will be included as well as fox news, fx. the idea is to get millennials, people who are not cord cutters but cord nevers. this is designed to be a service for those used to consuming video on mobile devices. youtube wants to use the fact that it has massive audience and they are trying to bundle together what you get from youtube which are made for youtube originals as well as people who want to pay for a smaller bundle of tv content. something we knew was in the works. we have heard a lot of media companies talk about it.
4:16 pm
we have heard cbs and fox mention that they are going to be getting paid as much from inclusion and packages like youtube tv service as they get from other services. i think for youtube this is a move in a new direction and are getting a foothold in the live tv space. for networks this is a great opportunity for them to get paid for a new platform and reach the audience of millennials who may not be paying for a tv bundle. >> from what you described there in terms of how this is going to work, it would seem faz you have a bunch of these networks on a menu and you can pick up to six? that would seem to be a slight departure from somebody saying here is a prepackaged bundle of subset of channels? >> you will have live streaming from what they say is dozens of cable networks and you will be able to dvr. it is a package of different channels. it is going to function as an app. i have to say it is not
4:17 pm
available yet but expected to be available in the next couple of months. this is the same type of thing as you get from a directv now or hulu service that is in the works. it is an app that is a bundle of live tv channels. if you have kids on youtube or if you are checking out originals on youtube, youtube has a subscription service trying to sell access to exclusive youtube originals. they are bundling that into this, as well. >> directv now has a little bit of a rockies start. it's going -- the story today is youtube going on tv -- youtube is tv. >> everybody can become the front end to the consumer. >> it's going to be -- if they can get this right -- >> it's designed for mobile devices. ipads and phones but will work on tv screens.
4:18 pm
as we see more connected tvs this will be the kind of thing you can access from whatever device you are on. >> julia boorstin with big news out of youtube this afternoon. thank you both for joining us here this hour. wish we could say it was an historic one. president trump set to address joint session of congress tonight. we will discuss what investors need to hear from the president. apple shares hovering near record highs with stock up 18% just this year. tight e find out what ceo tim cook is saying. you're watching cnbc, first in business worldwide.
4:19 pm
hey gary, what'd you got here? this bad boy is a mobile trading desk so that i can take my trading platform wherever i go. you know that thinkorswim seamlessly syncs across all your devices, right? oh, so my custom studies will go with me? anywhere you want to go! the market's hot! sync your platform on any device with thinkorswim. only at td ameritrade
4:20 pm
4:21 pm
let's begin with etsy. kate rogers has the details. >> looks like a mixed fourth quarter for etsy. the stock is moving lower now. foreps the street was looking for two cents. the company reported a loss of 19 cents per share. there is a beat on revenues. the company reporting $110 million for the quarter. their gross merchandise sales up 17% from the fourth quarter of 2015 to $865.2 million according to release but their 2017 revenue guidance below
4:22 pm
estimates. ceo chad dickerson saying the company is excited about future products including recently announced etsy studio which will be global craft supplies market. the stock moving lower. now somewhat better around 2.6% it had been down as much as 4%. the conference call is at 5:30. we will bring you more. let's get to earnings with seema mody. >> the go pro supplier seen as drone play with links to china's dgi. beating expectations. analysts were calling for 74 cents. the guidance, that is very key here. very weak guidance for the first quarter. a lot of analysts have been talking about larger chip companies like quaalcomm getting a bigger piece of the pie. competition has been something wall street has been voicing as a concern. shares down just about 4% in
4:23 pm
extended trade. i would point out over the past 12 months the stock is up about 27%. so rebound despite the downward pressure that go pro has been under. let's take a look at weight watchers cht earnings are out and it is a beat on bottom line 20 cents, a two kent beat. revenue was a miss. it did say it ended 2016 with ten percent more subscribers than the prior year and said that so far in 2017 our global marketing campaigns are driving stronger member recruitment and interest in beyond the scale program which is what oprah has been advertising. back to you. >> on top of the move. nutrisystem said it was a strong start. weight watchers up 21%. the senator's comments about the difficulties in changing the tax
4:24 pm
system. >> as far as changing the current system it will be very difficult because democrats are not cooperative. they don't seem to care. when you get a brand new president you ought to be at least seeing what can be done. they are not only not supporting them but fighting with everything they got. >> markets did finish the session off the lows. as president trump prepares to address the joint session of congress tonight. let's get back out to kala. >> comments from senator hatch just some additionally new skepticism emerging from the hill. this morning saying congress has two years to get tax reform done. don't expect it to happen in 30 or 60 days. senator graham saying the president's budget could be dead on arrival because of proposed cuts to the state department. that is no surprise that sean spicer has made his way to the hill to manage the white house's message for tonight's speech
4:25 pm
going into it. in a briefing that wrapped a few moments ago white house official did say that the president is still expected to strike a tone of optimism. immigration will figure prominently as we are waiting for a new draft of that executive order on immigration to come that has been delayed multiple times. now new reporting that says that potentially the president could be willing to compromise on new immigration legislation and we'll see if he mentions anything about that tonight. the white house official did say there would be a collective process underway to replace the affordable care act. that is currently ongoing between congress, the health sp human services secretary and the president himself and that any skepticism or criticism of the draft that has been leaked out over the weekend is just a conversation that is getting started about what that policy will look like going forward. it will be interesting to see
4:26 pm
exactly what the speech is tonight because we do expect that a large portion of it will figure on the economy, about trade deficits and creating american jobs and touting these companies that have already said they will be bringing jobs back to the u.s. or reinvesting in their u.s. operations. we have a few hours to go but we will let you know anything else we learn. >> as you said sort of the start of the conversation is what we are listening for. for more on what investors will be looking for we are joined by dan clifton and michael here at post nine. want to begin with you. what are your bullet points? >> i think a couple of weeks ago investors wanted specifics. i think the goal of tonight has shifted over the last couple of days. if you listen to the report she is talking about republicans being on one side of the issue whether spending or taxes or the affordable care act.
4:27 pm
what trump needs to do is outline his broad vision and try to get the republicans on board so that he can start healing those divisions and get the stalled agenda moving forward. he needs to make the case for why these changes need to be made. if senator hatch is upset that democrats are not participating trump needs to throw it at them so that democrats want to be a part of the process. i think he will be successful in both aspects tonight. i don't expect too many details particularly on a border tax for tax reform. it is a broad overview overall. >> we will come back in a moment. so can the president in this message lay out the idea to both democrats and to the public generally speaking that all of these things that are out there he can get people behind them and make it happen in a short period of time in. >> i hope so. i am hoping the speech is more forward looking. i think what dan said is very realistic. i think we are getting damped down expectations from a number
4:28 pm
of people right now on how difficult this is going to be. that wasn't a surprise. that stalling may be positive momentum and may be behind the stalling stock market. that bears watching. i think there is a timeline and a window to get things done. 12 to 18 months and you have mid terms. you need time for the policies to take effect and impact the economy. most people don't understand the parliamentary procedures of congress sp that sort of thing. they understand that the republicans hold both houses in the presidency and have expectations. at some point there needs to be accountability to have the momentum. >> the devil is in the details, as well. people start talking about border adjustment tax and everybody freaks out. how do you get it done? are you coming to some sort of not getting there after figuring out obama care which sounds like almost a nonstarter. can they get these things done? >> we are in the top of the first inning and there is only
4:29 pm
one out. this is a long game that we are about to be playing here. making legislation is never pretty to look at and the affordable care act will be the ugliest of them all. we are confident that something will get done on taxes probably by the end of the year that is probably pro growth and good for the stock market. i noted that the market sold off on obama's first sfeepeech beca he was too focussed. that created a buying opportunity and many people missed the first leg because they were hammering in over the speech given in february. it is a long process. the republicans have to understand the stakes and trump needs gdp growth higher. >> 1.9 ain't good enough. guys, thank you both. >> we have a new alert on amazon web services. seema mody has the latest. >> amazon web serviceicize for the most part back up and
4:30 pm
running after going down for a few hours this afternoon due to technical difficulties. back to you. >> amazon still not budging too much. microsoft, google looking to exploit this opportunity. jamie dimon addressing shareholders discussing potential impact of financial deregulation. let's get over to williford frost with the highlights. >> let's dive down a little more into comments specifically on financial regulation. here is what he had to say. he said it is high time we look at it even the regulator would agree the system has structural flaws. he says too much complexity is dangerous and may need to get back to a more collaborative regime. quick comments on there. i think it is important to note that his comments and those of cfo did have a collaborative and open tone themselves. not an instructive tone.
4:31 pm
sometimes that is how these things are reported. he said the reason he takes part in things like the business round table and the strategic policy forum is because he cares about the economy. he said i am not fanatical about deregulation. he did get a slight indication of some of the areas of deregulation we could expect first. with personnel changes could -- at the regulators. he suggested that there might be a change in definition of what prop trading is. that was something he said he would support. overall he did suggest deregulation if it came would be more beneficial to smaller banks than the likes of jp morgan. that deregulation taken with the likes of corporate tax reform for things he said that could drive growth forward. he did not believe in the idea
4:32 pm
of secular stagnation. shares ending higher today. they have been down about half a percent. the most bullish thing were comments earlier that suggested that the payout ratio could go above 100% as capital is able to be returned. >> wow. thank you. we have breaking news on the snap ipo. we will get to that right after this break. over 100 years ago as a benchmark for average. yet many people still build portfolios with strategies that just track the benchmarks. but investing isn't about achieving average. it's about achieving goals. and invesco believes doing that today requires the art and expertise of high-conviction investing. translation? it's time to bench the benchmarks.
4:33 pm
4:34 pm
4:35 pm
welcome back to breaking news on snap's ipo. >> speaking with sources on the snap deal. they are hearing this is according to investors that are meeting with the under writers that this deal will price a buck or two above range which would indicate about 17 to 18 a share. this is significant because that $18 a share would yield a valueuation. people before they filed for their road show. this is an interesting signaling play from the company. it is important to note that nothing has been decided at this point. these are simply signals being given to investors about where this deal will price. the final decisions will be made tomorrow most likely after the market closes tomorrow. >> we are getting real close. thank you so much. leslie with the latest on snap's
4:36 pm
ipo. apple shares have been on fire this year. 18% to a new high. find out what ceo tim cook told investors about the company's future today. we'll be right back.
4:37 pm
4:38 pm
we have breaking news on
4:39 pm
hershey. let's get out to seema mody. >> hershey has detailed a new growth plan that could result in significant job cuts. the company estimates that implementation of the program will reduce its global work frs. we could get more details tomorrow. the company sponsored investor conference is taking place in new york on march 1 and hershey's says it will discuss plans to deliver on the vision of being innovative snacking leader. any further details will be in focus for world seriall street. we did see shares down 6%. >> there is pressure on hershey. >> last year and the reports were they had pretty much a kind of a built in protection not just because of pennsylvania law
4:40 pm
but because of the hershey trust. the reports were hershey said that the negotiation on any deal would start at $125 a share. a good deal above where it is going to trade. >> cocoa prices have been plunging. >> they usually notch prices up on the consumer every year. >> tough going there for them after hours. >> apple on a record run this year up more than 18% so far as investors and consumers wait for the next hot item from theal tech company. josh lipton joins us with the highlights of today's shareholder meeting. >> so apple shareholders did gather at the stock on a recent tear up nearly 20% already this year. that is after those better than expected earnings results and excitement about the product pipeline. tim cook did open the door to
4:41 pm
shareholders who asked a number of questions. cook saying apple does a fair amount of manufacturing in the u.s., pointed out iphone glass coming from corning and semi conducters from all over the u.s. another shareholder in response has questions about jobs saying apple created 2 million jobs. 1.4 million are developers in the fast growing part of the job market. one third of revenue comes from the u.s. cook saying two thirds of employees are based here. cook field questions about lobbying efforts in washington, d.c. saying apple is not really so much interested in politics but is interested in serious policy questions. apple has weighed in on everything from encryption to security to president trump's recent executive order on immigration and there apple like so many other companies did find itself at odds with the administration. kelly, back to you.
4:42 pm
>> josh, thank you. josh lipton at the shareholder meeting. one firm's research unit shutting down yesterday in a surprise movecyting too many downward pressures. a former retail analyst weighs in on what investors are looking for. we are less than five hours away from president trump's address. small business owners listening closely to what the president has to say not just about taxes and about health care. what they want to hear from president trump coming up. if you have medicare
4:43 pm
parts a and b
4:44 pm
and want more coverage, guess what? you could apply for a medicare supplement insurance plan whenever you want. no enrollment window. no waiting to apply. that means now may be a great time to shop for an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. medicare doesn't cover everything. and like all standardized medicare supplement insurance plans, these help cover some of what medicare doesn't pay. so don't wait. call now to request your free decision guide. it could help you find the aarp medicare supplement plan that works for you. these types of plans have no networks, so you get to choose any doctor who accepts medicare patients. rates are competitive, and they're the only plans of their kind endorsed by aarp. remember - these plans let you apply all year round. so call today. because now's the perfect time to learn more. go long.
4:45 pm
we received news yesterday that clsa has laid off 90 equity analysts including the well known bank analyst mike mayo saying the economics of providing u.s. equity research have become increasingly challenged. this raises questions about the trust worthness of ratings. it is hard to have good relations when a company when your analyst has a sell rating on it. welcome. >> pleasure. >> when clsa says the economics of this don't make sense what is your immediate thought? >> at one point they did a huge cut and cut about a third or half of the analysts and learned that the research analysts go through like all of those relationships with the companies are a big deal. i remember a restaurant analyst
4:46 pm
really well respected didn't have a strong rating on starbucks. and those companies called and said we don't ask that much of you but if you want other parts of our business this is all we are asking because he is a good analyst. >> you feel that pressure yourself? >> you do feel it sometimes. as you get older and more mature and have done this more times you kind of get over that and make your own decisions. has it happened a few times where you are sure you want to do that? i can't say it has happened a lot about pressure. it can be subtle. >> i know we have talked about this pressure existing for a couple of decades now. i wonder about the profitability of the business and the underlying fundamental justification for needing to have this. >> the business model is pretty much broken. some of the firms are asking clients what would you pay out of pocket for research. they have no idea whether it is
4:47 pm
valued. you look at surveys who the research is built for they say what we really value is when you arrange company visits. we are not asking for intellectual fire power and making money. they say give us -- they do -- they can lean on them to do the basics. >> people pile on by analysts. there is a public service in there whether it is us or the -- being able to go someplace into how they operate it is really valuable. if this goes away or shrinks more from what we are seeing what impact is that going to have it. >> a lot of bigger institutional guys do their own work and have a lot. a lot are built by the retail analysts. a lot that become every day well known facts all start with some
4:48 pm
original thought from analysts. i think it will have an impact. i think you have seen it. i feel like there is not as much fundamental driven nalici eendr we are seeing we can slice and dice a company and stock into these statistical factors and weight them as we like and not know the story or go out and call. a lot of times you get to know an analyst and stop hearing from them and generally speaking although they provide the research so is it fine that that is priced into the market or would it be better if it was more somewhat accessible? >> i don't know. does it all kind of get into the price and the market is that much more efficient? i think the clients have always
4:49 pm
had favorite analysts, ones considered to be excellent. you have people who can move a stock and who can define what the narrative is. >> comes back to fundamentals, the machines, etfs. that is easy when the market is going up. at some point something will change that and fundamentals will become important again. it will probably swing back to some degree and everybody will get caught flat footed. it seems that is the history of markets. >> equity research will exist the way it does today? >> that is a great question. five or ten years ago -- >> there is always a role for good analysts. it would probably be smaller. do 30 people need to cover wal-mart or apple? and the majority aren't adding that much value. >> more to the point what do you need to pay those people? at a price absolutely it is a valuable service. not as some kind of big ticket
4:50 pm
role. >> david, thank you for joining us. appreciate it. >> president trump's promise to repeal and replace obama care has small business owners divided. we will hear from both sides next. coming up target having the worst day in target having its day in eight years. the former sachs ceo will explain what is needed to turn things around. both on the track and thousands of miles away. with the help of at&t, red bull racing can share critical information about every inch of the car from virtually anywhere. brakes are getting warm. confirmed, daniel you need to cool your brakes. understood, brake bias back 2 clicks. giving them the agility to have speed & precision. because no one knows & like at&t. with e*trade's powerful trading tools, right at your fingertips, you have access to in-depth analysis, level 2 data,
4:51 pm
and a team of experienced traders ready to help you if you need it. ♪ ♪ it's like having the power of a trading floor, wherever you are. ♪ ♪ it's your trade. e*trade ♪ ♪
4:52 pm
welcome back. new data from manta shows more than half of small business owners support the repeal of the affordable care act. how small businesses are preparing for potential changes. >> with the promised repeal and replacement of the affordable care act, small business owners
4:53 pm
are weighing options for their futures. i talked with one person who said he's seen premium increases. and he wants to go back to a time where there was more choice in what could be offered to workers at his janitorial business in minuatonka, minnesota. >> i would like to see it dropped. before as a company we had a choice. what you want to offer your employees and the type of benefits and people had the choice where they want to work. >> others like mike roach in portland, oregon, benefited from provisions of the aca like the health insurance tax credit for business with less than 50 workers who opt to offer coverage. >> specifically what the da affordable care act did for us, it was the first time there was federal, state or local, that was actually something helpful
4:54 pm
to us with regard to paying our employees' health insurance. >> now, both companies say they are continuing to offer insurance to workers while replacement plan is worked out. it is a competitive advantage when it comes to attracting and retaining talent, even though they're certainly on both sides of the issue. >> we're seeing that dynamic may out as they try to figure out what to do with it. >> we're just hours away from president trump's first address to a joint session of congress which will touch on issues just like these. we'll have more on that. the greatest population shift in human history is happening before our eyes. sixty to seventy million people are moving to cities every year. at pgim we help investors see the implications of long term megatrends like the prime time of urban expansion, pinpointing opportunities to capture alpha in real estate, infrastructure and emerging markets. partner with pgim the global investment management
4:55 pm
businesses of prudential.
4:56 pm
why pause a spontaneous moment? cialis for daily use treats ed and the urinary symptoms of bph. tell your doctor about your medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain, or adempas® for pulmonary hypertension, as this may cause an unsafe drop in blood pressure. do not drink alcohol in excess. to avoid long-term injury, get medical help right away for an erection lasting more than four hours. if you have a sudden decrease or loss of hearing or vision, or an allergic reaction, stop taking cialis and get medical help right away. ask your doctor about cialis. oh...ncome on...och method! what's going on here? you know how ge technology allows us to fix problems before they... they slow production, yeah. well, no more catchy business acronyms. wait, we don't need to smooch? i'm sure we can smooch a solution! we just need to "hover" over the candice, problem until... just let it go... hey, sorry i'm late for team building. smoooooooch! that felt right. what's wrong with you!?
4:57 pm
he's so trusting... welcome back. at u-tube offices, youtube just announced youtube tv. a new streaming television bundle. it will be about 40 channels and it will cost $35 a month including unlimited dvr and access for as many as six different streams. this is a big move for youtube into the subscription business. we spoke with the ceo about why and how youtube is taking on not just the satellite and tv providers but also the skinny tv
4:58 pm
bundle providers with new offerings there from the likes of hulu. take a listen. >> we have over a billion people who come to youtube every month. and we think there's a big opportunity for those users to be able to enjoy youtube and tv in the way that they're used to watching youtube. not content that is on demand. content that's searchable. and with our product, we're going to have a cloud dvr so you can store any content that you want to see. >> reporter: she talked to us about how they have a huge advantage when it comes to marketing this product. marketing it directly to the 1 billion people who come to youtube every month and they have this particular access to millennials. now, youtube is making a point of the fact that it will be including its youtube red service. these originals in the youtube format. an original subscription service. so you can subscribe to that
4:59 pm
separately. if you pay for this, you will get access as well. this new service is designed to integrate the best of what is on youtube right now with a traditional youtube bundle but all with mobile access. you can watch it, you can chrome cast to it your television or you can watch it on your mobile devices. certainly going to be big competition for the cable space, especially as we expect something similar from hulu in the next month or two. now passing it to "fast money." live from the nasdaq markets overlooking times square. tonight on "fast," google's youtube taking on the major cable providers. plus, target having its worst day in more than eight years after the retailer's earnings were even worse than it warned. but sachs said a turn around is
5:00 pm
about to happen and now could be the time to buy. and hear, snap chat on chat for this week. the valuation king is here. not him. somebody else. he'll be here to weigh in. he has a very big call to make on the company. first, what could be the moment of truth for the post election rally. president trump's big speech to congress tonight. what can we expect to hear? >> reporter: it comes on a day where there has been some fresh skepticism on capitol hill about forthcoming policy. first from orrin hatch about the feasibility and the length of time it would take to get tax reform done. then there's the white house budget blue sprint due on march 16. and just today we heard from senator lindsay graham talking about the budget ask the steep cuts that the current form proposes. >> it is a budget proposal that will meet the same fate as

69 Views

info Stream Only

Uploaded by TV Archive on