tv Closing Bell CNBC May 12, 2017 3:00pm-5:01pm EDT
of how it's changed since the president was elected. he said it's tangible like a flip of a switch. thank for watching "power lunch" and thank courtney for joining us. >> "closing bell" on a friday starts now. have a great weekend everybody. hello welcome to the "closing bell" everybody i'm kelly evans at the new york stock exchange. this is fun to read by the way. did you know sherry land sit is about my height. >> i'm bill graffiti. we'll get to that in just a second because i'm a huge movie fan. mark cuban you may have heard, amazon he considers to be the ultimate start up and it's still under value.
he'll tell you why, he debates whether he's rights. >> heb it was amazon, it might have been apple too, netflix, apple is hitting an all-time high. $156 a share. we'll have those details coming up. and then a rare interview, she was the first woman to head a hollywood studio back in the day, not too long ago. sherry lansing will join us. there is a new buy biography about her i can't wait to talk with her on what she'd do today. >> we have mothers' day this weekend, may be a well-timed placism of the book, maybe a good gift. >> i see you're selling the book now okay. >> i just realized that would make sense. >> yeah. >> we'll ask her about that. we do start with retail
which is struggling so much. it's jp penny getting hit hard after reporting disappointing numbers this morning. we also have the retail report from the government this week. courtney reagan joins us with more. it's very hard in terms of the department stores. the numbers are down 20% this week. the numbers are bad. >> exactly. i think one of the best performers is kohl's and it's down 9% this week. we know the department stores are in this decline. folks aernts going for destination of shopping whether in store on online in the past. they're closing stores, trying to shrink in order to grow. they're getting better at their management why you saw some bottom line beats but it's the sale that's weak and that's worrisome. next week we have warm, tarpg
and home depot that's the little different. what we're hearing from the department stores does not necessarily reflect the sale of the consumers. consumers are hale and they have the ability to spent they're just not going to jc penny and nordstrom like they did. >> steve we got the numbers this morning, obviously online they did well but what about elsewhere. is i just a department store issue right now? >> it's in part. i think the number is good, we were looking for 05, we got .04 and we'll take it. those two months were part of the reasons why you had weak growth in the first quarter. now you have this april number that help explain and jurn pin the idea the second quarter is going to have a nice gdp rebound. i want to underscore what courtney just said, you do have better job growth and wages rising, there's no reason the
consumer can't be spending. they're spending somewhere according to this data just maybe not at the expense that poor courtney's covering. >> yeah that's for sure. we got to go. thank you courtney reagan, steve liesman talking retail. we do have breaking news this afternoon, there are reports of massive ransom wear attacks sweeping across asia. we had hospitals in britain turning some people away. the attack used so much leech tool that was developed by the n surgical a. >> joining us on the phone, nicole pearl roth rote this story for first time. now we're learning the person trarts are using tool that is may have come from the n s a leeks a couple months ago right? >> that's right. it was described tom by security experts the red attack. and basically what's happening
is we've seen a couple cases over the last must months of ransom ware, mal ware that takes over your data until you pay a ransom. pop up in a few hospitals and even in a hotel in austria i believe. so this is the first situation where spreading across the globe. it's 12 countries, hitting hospitals in the u.k., and part of the way it was able to spread inside these organizations was through a particular flaw in microsoft's window servers, that was part of the nsa tool kit that was leak ed last month. they patched the vulnerability before it was dumped online by hackers calling themselves shadow brokers, but they are not completely ruled out. >> nicole, there's a couple major questions that's raised.
one, how vulnerable are other key parts of structure, and, one, why would someone target these particular systems? one thing if a hacker wants to prove abilities by going after some high profile target like a bank or retailer, but hospitals put iting lives at risk? that's nefarious. is that a differing attack than seen with smaller attacks in hollywood, for example. >> annoying. >> caller: yep. this is -- hospitals hostage for $300 body coin ransom, but tactics used are spraying prey. hitting none vulnerable. doesn't matter who you are, and if you are vulnerable, they tack advantage. it's not just hitting small
hospitals, but banks are affected, and telecommunication companies in russia and spain. they are not discriminant here, just hitting anyone they can. >> answering my question, especially the fedex part, but u.s. companies have been put on notice here. i wonder if they think hospital companies in the u.s. are vulnerable right now. now that fedex has been hit? >> caller: yeah, it's unclear who is most vulnerable. we are seeing reports of attacks here in the u.s., only confirmed company is fedex. hospitals are waking up to the threat over the last several months, los angeles was hit last year, so they have been trying to upgrade systems, but health care companies, small mom and pop shops tend not to update as
quick as a bank or government agency would leaving people vulnerable. >> like many companies, they are experiencing interference, regret inconvenience to the customers. nicole, what did experts say to do? pay the ransom and alert authorities? >> caller: alert the authorities, roll out updates. some say you can unplug servers as a quick work around for now, but, yeah, don't pay the bitcoin ransom. although, certainly, i'm sure some of the victims will do that. i have not confirmed organizations that paid up yet, but best thing to do is contract
a security vendor to remediate this quick alz possible. if you are not afghanistaned, make sure you have someone on staff or check with someone who can see whether you rolled out updates that patch the system's vulnerability, and, finally, this attack is starting with a malicious e-mail attachment, so reminding employees not to click on links or attachments that are suspicious is most important here. >> before you go, the malware was included in an online april dump from a group called shadow brokers. we're not saying they're responsible for this today, right? any idea who it is? >> caller: no idea. once released hacking tools online in april, any cyber criminal picks them up and
define ransom ware to commit the attack. makes attribute to who is doing this difficult. ransom ware is something you can buy off the dark web in the underground, and when you combine when what's dumped online, that creates something very powerful. >> nicole, if they have not upgraded, does that care for the problem? >> exactly. roll ourt yot the updates, particularly microsoft. it came out in march. you it two months now. ask your i.t. guys to make sure it's been unrolled. best defense. >> nicole, thank you. we'll cover the story and bring you updates as we get them on the massive attack on health
care companies in europe and asia. closing bell exchange this morning, dow down 32 points right now. alpine funds joining us, meridian partners next to us here at post nine, and rick santelli at the cne in chicago, so, john, first decline for the dow week over week in a month. nasdaq is higher thanks to the apples and amazons of the world now. what's going on in the market right 19now? >> look, a good runup in the market. we are up 2.5%, and the last two weeks, stuck in a range. we've all been programmed to really watch what's going on in washington. we continually get economic data, get these reports, but headlines from washington is what's occurring and what's giving investors sentiment and
confidence or reason to pullback. ten days, trump's budget numbers come out on the 22 nnd and g-7, those political movements is going to determine whether investors stay on the sidelines or continue to get back in. >> sarah, retail slump took focus this week, but the inflation numbers this morning interesting. the consumer price index was soft. then inflation expectations in the michigan survey come in and tie for a record low. does that give you pause? any opportunities born from that or just a cautionary sign in general for investors? >> well, i think from a standpoint of interest rates, a lower expected inflation rate probably means that maybe the fed doesn't raise quite as quickly, and you saw comments about that today where the idea that maybe inflation is not moving as quickly, don't need to move rates so much, and so, therefore, you have, for us, because we like dividend stocks, helps for interest rates and
dividends because dividend stocks get hurt with higher rates or expectations of higher rates. i think those are the kind of places where on the margin the difference in the cpi matters. >> and, rick, just to your thought on this this week. what was the highlight, key moment for you? i mean, those soft treasury auctions, what was going on that got your attention? >> well, i mean, you know, the end of democracy as we know it. comey was fired. amazing how well the market held up, especially nasdaq, shocking. interest rates down a couple basis points, basically one or two basis points all along the curve no matter where you look. on the day, the moves were bigger. sarah nailed it. we have what looked like a little bit scary ppi that really did not play out in cpi. it's not that inflation's moderated a lot, but just didn't move ahead on the cti like ppi. slow and steady whether it's the economy or inflation. the auctions, really, we dent
get the data yesterday that was hotter than expected, but all in all, the auctions started with the three-year on tuesday, and tuesday and wednesday, those auctions were not well. yesterday's 30-year, of course, after that, and that was not very well received either. i do think that there was a bits of covering going on. i think there was some longs in the space after the fed meeting and employment report that basically were pushed from the market. i look up, i see e quill lib yum again. if you're a broker, that's the last word you want to hear, but a lot more of the same until we get to the next fed meeting and jobs report. >> all right. we got to go at this point, crowded out by breaking news from overseas, but, thank you, all, for joining us with thoughts on today's market action. have a good weekend. >> 45 minutes to go, dowdown 36 points, familiar picture here, bill. in the last three sessions, 45 seconds to go, dow is down. see what happens today before the close, but the s&p's down
welcome back. more breaking news. this is on boeing. phil? >> kelly, as we speak, the boeing 737 max suspended in terms ever further flights a couple days ago, it is back in the air. the first flights since they had a chance to look at the potential issue with the leaf 1b engines as certified, but been approved to be back in the air, so, again, boeing resuming flights of the 737 max two days after being suspended. back to you. >> all right, phil, thank you very much. that was quick. >> yeah. >> they were worried that -- that was to be released next week. amazon, as we all know, is the a in the faang acronym. stocks continuing runs near
all-time highs year to date. facebook up 30%, amazon up 28%, netflix up 2 the 9%, and alphabet, parent of google, up by 20%. last night ob on "fast money," mark cuban shared his thoughts. >> so undervalued. you don't understand however big you think deep learning and neuronetworks, however you calls it, it's going to be bigger. you don't understand. i mean, it is -- the things that you're able to do in terms of optimization that you've never been able to do before, it's incredible. my biggest holding is amazon, and it's the ultimate a.i. company. it's the ultimate startup doing it better than anybody. >> there's a lot of love for amazon these days. what are risks to investing in that ultimate startup? joining us now is mike olson, and ed lee here at post nine with us from recode. ed, starting with you. listen, hard to find bears on amazon. we appreciate your willingness to play the role. >> playing the bear for a
minute, i'll play a long for a minute. >> so much love for the company now. you find it, you know, people want to be in it, feel like they missed out, can't do anything now, but what are the risks to consider here? >> well, so, yeah, playing along, it's worth looking at the risk factors. i still love the company. it's really well-managed company, however, a lot really, really rests on jeff bezos himself, engineering the vision for the company as he should be doing, but, you know, it's unclear just how much management infrastructure he's really created at the company. it's unclear how the company's really, really run on a day-to-day basis, and, you know, he's putting structures in place, but he decides to take a holiday, decides he's more interested in blue origin, own personal venture, who knows what happens to the stock. had trades lofty on valuations, on the multiples, right, and unlike apple, trading 15 forward earnings and amazon is 84 forward earnings. there's more upside, i think, but at the same time, there's a
big question mark of management, is it really just him? are there good management structures in place? all these other portfolio businesses, aws versus the delivery system and more. a lot to manage. >> the stock price at all-time highs. we all know the story. a disruptor this year, especially, already in the stock? >> i don't think so. i can't think of a company that has this size that has as many as low penetration they are addressing. think about the e-commerce, only 5 kt of the u.s. market is covered by amazon at this point as far as retail sales. think about grocery or retail or furniture, other areas they go into adding up to additional hundreds of billions of dollars in total adjustability market, not including cloud computing with aws. i think there's a lot to go here. >> mike, what do you mean only 5% in covered by amazon?
>> when you look at overall u.s. retail sales, if you think about online sales as only a fraction of that, so it's, you know, 10-15% of overall retail sales, and amazon's a fraction of that. it's in the single digits, so there's a long ways to go for retail sales for amazon, and then, again, that doesn't even look at all the other areas that are just other options for growth for the business. >> i think there's still challenges with retail. which is they are great at commodity goods and hard to find items, absolutely. i use it all the time as does my family, but things like fashion, retail, clothing, which they are trying to get into, has better margins generally. if they are having a hard time cracking that, right? that's going to be a big challenge for them going forward. i don't think that's something that sells as easily online as other items. >> do i buy this because of the retail side or buy for the cloud? >> buy it for the cloud. aws is the growing business, and, you know, at the same time,
why invest in this other part. he's created a portfolio, a portfolio company that's a a smart way to go ahead, and it's weird, lumpy, and different businesses have different growth metrics and challenges on its own, so going forward, we have to see how it goes. >> amazon might be a small share of the retail sales, but it's one. largest companies in terms of the value in the country, and in the world, so do you think it can double or triple in size from here for people who want to invest in amazon today and want to see a lot more of runway ahead? >> we think it can. i mean depends on the time frame, but looking out, and i would echo some of the things that cuban said, all the data that they are collect iing put them in a ve velocity done, and on the data side, they just have
so much data and they collect more and more ka that talking to alexa every day. there's room to go on that front as well. >> all right. mike alson, our bull, ed lee, or sort of risk observer. thank you, both. >> it is a busy friday. a news alert on welts fargo now. what's going on? >> tell me about it. here's what we got. wells fargo, attorneys for the alleged victims of that wells fargo fake account scandal are now alleging the bank may have been responsible for more unauthorized accounts than previously thought. now? the plaintiff attorneys in a legal filing saying in that class action lawsuit, say that they're estimating the number of unauthorized accounts is maybe closer to 3.5 million, about 1.4 million more than before. the period they now go back to is 2002-2007 to estimate
beginnings of it. important to note here based on result of the independent board review of the scandal, former ceo john stumpf was not made aware of the nature of the bank's sales practices until 2012, but was first aware of the specific case, one specific case as early as 2002. wells fargo issued a statement on the matter say, the unauthorized account number reported in yesterday's filings are estimates made by plaintiff's attorneys based on a hypothetical scenario, not verified, and number of unauthorized accounts estimated in the filing do not reflect actual up authorize the accounts. wells fargo guys remember previously had disclosed they were in a settlement process in the regulatory filings. in the filing, bill, kelly, estimated it at $100 million plus, that was the estimate. again, latest details here, bringing you more as we know more. guys? >> all right, dom, thank you. >> stock down 1.5% right now. see you later. >> 35 minutes left, dow down 32
points as we head towards the close. >> major stock index on the other side of the world hitting a 17-year high in part thanks to apple. telling you about that next. >> apple halo grows. also head, excited to meet sherry lansing, first woman to run a hollywood studio, fatal attraction, brave hart, and titan titanic, some of the movies under her watch. she's here at post nine coming up. ♪ ♪ i'm dr. kelsey mcneely and some day you might be calling me an energy farmer. ♪ energy lives here.
all right, if you are just joining, there was a massive ransom ware hack attack in europe in asia affecting the u.k.'s public health system and british prime minister may reacted to the hack just awhile ago. >> this was not targeted at the nhs, but an international attack in a number of countries and organizations have been affected. the national cyber security center is working closely with nhs digital to ensure they deal with the organizations concerned and protect patients' safety. we're not aware of evidence that patient data has been compromised. >> tabloids will be screaming tonight already in the u.k. i mean, just the idea -- listen, we've covered ransomware stories, one with nascar. it's become more and more common, and now when you have hospitals put at risk, fedex involved and other major companies, you know, you know,
in some way i feel bad for mi o microsoft because they are caught up in this, already tried to patch it, but when you're that ubiquitous, anything more to do to help and make sure no one else is vulnerable. >> the other part of the story, they are learning that some of the tools used in this attack were developed by the nsa. >> and revealed. >> part of a data dump last month by the guys, the shadow brokers, as they are known. >> the fact it took weeks to go from the data dumps to the attack -- >> quick and troubling. u.s. companies are put on notice for this. >> time now for the cnbc news update. >> hi, kelly, bill, this is what's happening right now. a house fire kills three young children in a neighborhood north of houston this morning. eight people were inside the home, all part of an extended family. several sent to the hospital with severe burns. two police officers also hurt. four people killed including
a police chief after a shooting in a nursing home in ohio. the officer responded to a man with a gun this morning, and then the officer found dead outside the facility. two nursing home employees and the shooter found dead inside. a funnel cloud spotted in louisiana this morning. it was caught on camera. reports of tree limbs down, some structural damage, and outages in the area. pepsi rolls out a limited edition spicy concoction jux just in time for summer called pepsi fire. the heat in the drink comes from cinnamon seasoning. it's available in slurpform. goes on sale may 22nd. feeling hot, hot, hot. >> maybe in pastries, but not cinnamon flavored gum or drinks. >> they tried the cinnamon bourbon thing. that's not working. >> that's delicious! i love it.
if i'm going to be a whisky drinker, add cinnamon. >> that's beyond my demographic. thank you. nice to see you. >> thank you. see you later. going into the last half hour of trade, dow down 40 points. philadelphia semiconductor index is near record highs. e we will debate semiconductors, and whether it's too late to get in on chip stocks coming up. >> up next, playing a hand in legendary films like titanic and bravehart. sharing juicy insider stories. >> oh, boy. >> just ahead. your muscles look good, but we should be seeing more range of motion. i'm fine. okay, well let's see you get up from the couch. i'm sorry, what? grandpa come. at cognizant, we're uniting doctors, insurers and patients on a collaborative care platform, making it easier to do what's best for everyone's health, every step of the way. you may need more physical therapy. ugh... am i covered for that? yep. look. grandpa catch! grandpa duck! woah! ha! there you go grandpa. keep doing that.
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welcome back. she is quite the trailblazer in her industry, the first female head of a hollywood movie studio. under the leadership, they produced titles like fatal attraction, indecent proposal, titanic, forest gump, bravehart, and the list goes on. >> now, there's a new book out about her called "leading lady," and she, that would be sherry lansing is here at post nine. wonderful. i followed your work for many years as you made your way through the ranks there, but you gave it up suddenly. some years ago. do you miss it?
>> not at all, but that doesn't mean i didn't love it when i did it. you know, i think change is good. by the time i left the movie business, i had done over 200 movies, so my passion was not quite the same, and i had not lost the passion, but it was moving to something else, and in my case, cancer research and public education. >> was that the golden age for those block buster movie? it's taken for granted now, oh, there was a titanic and some of the films there were cultural events, everyone went to the theater to see them that way. feels like the landscape today change or is rapidly changing, do you think? >> i think the landscape is changing, and i'm very, very proud of the movies that i was associated with, but i have to say, i think this is a golden age also. we may not all be going to the theaters as much, but we watch as much content as we want on our ipads, televisions, on our iphones, and i actually think that some of the things that i'm seeing are as good as anything made in the past. i can't keep up with the amount of entertainment.
>> funny you mention, we have the ceo of amc theaters here the other day, adam aron, talking about, among other things, the possibility of them, you guys, the studios, using this premium video on demand tool that would show a movie just after it leaves the theater and before it goes to pay-per-view, all these different it rations now. does that take away from the movie theaters themselves and the whole experience? >> i don't think so. adds to it. at fox, they were going to release a movie called 9 to 5, day and date with the video cassettes as they were called, but dvds today. they said that'll destroy the business. i said no, it'll add to it. there's a segment of the population that wants entertainment when they want it, and, also, a segment of the population that doesn't want to rush out to first weekend to see a movie. if they pay a little extra, invite a group of friends over
to watch at their home, i think they would be there. so i don't think it's threatening at all. people want out of the house, and those who are older want people over. it'll broaden the base. >> why is now the employment for the bookend? although it's your story, it is a biography. you go through it, and there's tons of people quoted every couple pages, like a historical document, a presidential biography. what's it like being part of the project and why now? >> well, it was traumatic. it was for me. steven galloway, respect and admi admire, interviewed 300 people. i had no controls or approval. eventually, i agreed to cooperate because i thought that was the least i would have a chance -- >> started without you? >> well, he was going to start without me. >> yeah, yeah. >> so i spent four years in total anxiety, like, why these questions? what are you writing? meeting for three, four hours,
the next day i would be anxious, the next day, depressed, and then i'd think, it'll never come out. when i finally read it, i have to say i thought it was thorough and fair and very accurate portrayal. there's a lot of stuff i don't like in it -- >> even if you do say so yourself. >> no, i will say there's a lot of stuff i don't like in it. up fortunately, what i don't like is true. >> are you saying sherry let that get out, stuff you don't want? like what, give us a for instance. >> for example, there was a lot of times we were making a movie and passionate people disagree, so i did threaten to sue mike myers, and we're friends now, and we work together on standup to cancer, and there's incidents like that that he uncovered. i didn't necessarily volunteer them. they are not necessarily something that i'm proud of, but you have to do that when you're the head of a studio and you want to get a movie made. you need to do anything to protect that movie. >> i mean, we know here that it takes a village. there's a whole group of people
that are, you know, putting this thing together, not just the two of us. it amazes me the chaos that seems to occur in the process of making a motion picture that leads to a great motion picture. i think of "fatal attraction," and "bravehart," the stories told in there are hair raising about what went on. >> he found out stuff i didn't know and back stories i didn't know. what's interesting, reading the book, i was shocked at how hard it was to get every single movie made. you tend to only remember the good, and i love those movies so much, so i pushed off the negative stuff away and forgot about it, so reading the book was sometimes painful and sometimes very healing as well. >> did everybody know? i certainly did not know that fatal attraction was partly an autobigraphical story? >> it's not necessarily an autoby graphical story of me. >> it drew you to it. >> it's what happens to a person
in particular, the woman, when someone you love leaves you. why do you feel your whole self is gone? why do you drive around the block to see if there's a car parked out in front of the guy's house? in the old days, you dialled a number to hear his voice and hang up. today, you can't because of caller id, but everybody's gone through that. everybody has been disappointed in love at some time. >> right, right, yeah, by the way, she was the glen close character, not the ann roger character. >> ann archer too. >> attempts for remakes. is that a good idea? there was going to be a tv series. >> that could be a very good idea. >> it died. >> well, we don't know yet. >> okay. >> my partner is working on it, partner of the movie. >> okay. >> you can take cases of "fatal attraction", and do interesting stories like they reinventsed fargo. it's a good idea. >> important part of anybody's life and career in work is legacy they leave behind. do you look at paramount now and
go, please, god, right the ship? >> first of all, your legacy's your movies, and movies stand the test of time and hope they last forever. they are not my movies, but collaborative effort of a group of people. i'm extraordinary optimistic about paramount. they have an incredible leader in jim and sure ree redstone and going to heights of glory never had before. >> they shouldn't sell? >> i hope no. never. it's a wonderful studio with a wonderful -- >> it's a wonderful studio, but is the viacomm part of the business disresultive? >> no. they have wonderful leadership. jim is extraordinary, and sherry and redstone are extraordinary and love the studio and want it to be great and it will be great. >> frugal at the box office for years now. >> since you left, by the way. >> no. that happens. people go through difficult times, and then they come back to glory, and i believe we'll be
sitting here two years from today, and you're going to be saying it's the number one studio, and i'm rooting for it because it is, no matter what, my favorite studio and always will be home to me. >> do you want a bunch of the stock? people are going, this could be a great investment. >> a great time to buy the stock. >> we have to go, but we love asking celebrity guests, what's the biggest money mistake you made? >> so many. i was very cautious with my money, and i tended to not invest it because it had taken me so long and so hard that ended to just put it in, you know, under the bed, so to speak, so i ten tended to do bonds. all the stock i received was because i worked at companies or was on the board. i missed a pharmaceutical company recently that developed a drug for immune therapy. if i had done that, could have given so much money to cancer research. >> one too conservative with money -- >> my money. >> i understand. it was so hard to make.
i always had fear of being homeless or poor or whatever, so i wanted to save the money, and, you know, being conservative is not the end of the world, but i wish i had taken some more risks, but i'm not unhappy about the situation. >> don't play would have, should have, could have. >> i'm not unhappy. i want to really say i feel very, very blessed, lucky in life to hold the jobs i did, get the stock that i did, and i'm very grateful now i can give back financially. >> well, we are thrilled to have you here today. the name of the book, "leading lady" about the lady herself, sherry lansing, and thank you so much. >> thank you, so fun talking. this was great. >> great fun. see you later. >> thank you. >> sherry lansing. 15 minutes into the close, dow down, s&p down four, and tiny gains on the nasdaq. russell's weaker. and apple's rally helps asia hit a 17-year high.
that's next. another stock sherry missed by the way, too. excuse me, are you aware of what's happening right now? we're facing 20 billion security events every day. ddos campaigns, ransomware, malware attacks... actually, we just handled all the priority threats. you did that? we did that. really. we analyzed millions of articles and reports. we can identify threats 50% faster. you can do that? we can do that. then do that. can we do that? we can do that.
what did they say? >> that's right. they gave us a statement saying that today, our engineers added detection and protection against new software known as ransom 132. in march; there was a security update to provide additional protection against attacks. mic microsoft says those running free antivirus software with windows updates enabled are protected. they are working with customers to provide additional assistance. this can be attributed to mic microsoft, of course, a developing story. we remain in communication with them and other companies affected. guys? >> thank you. microsoft shares did dip a little after the news headed into the close there, and we have 11, 12 minutes to go. dow down about 41 points, and nasdaq up by just one. >> first week over week decline for the dow in a month, by the way.
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this after apple made record highs in technology, which you can see there, along with it, that's put the tie won index above the dot-com era bubble high, bill? >> crazy. halo effect from apple is everywhere. meantime in nvidia soars 22% this year, all-time high after strong earnings report. gaving better than expected revenue guidance for its second quarter, but can the semiconductor rally continue? only as good as your previous rally. joining us now to talk about this is will and patrick. what do you think? nvidia is special situation or -- >> thank you for having me first. i say nvidia certainly is a special situation, but speaking more broadly in the semiindustry, we're bullish at sun trust on this space. we think is continues to run, primarily to structural benefits from the industrialization of
semis, but because we expect the cycle to continue for at least a couple more quarters, and there's a disconnect between the trading view and cycle view historically. >> all right, patrick, you are cautious. i don't think intel performed as well, have they? >> overall, i would not dispute favorable themes out there, but i do think in the near term, you have to look at areas where inventory has been built up, particularly in the smart phone area. you're hearing a lot more concerns coming out of china, and even apple's iphone growth rate, the rate of growth, has slowed over the last few iphone it rations. that is something that from a semiconductor perspective, you have to keep an eye out. >> we already know, i mean, this smart phone buildup, but pc growth is a challenge for them. some of them have missed the boat on mobility, on a.i., on smart technology, but those are growth opportunities at the same
time, though, right? >> nose are, but i think what's been driving more of a sort of stable growth environment in two years and what drives that to continue is really the more diversified markets, something called the industrial end automotive markets specifically that continue. >> self-driving cars? >> that's a part of it, a part of it, but there's more technology in the automotive market, not just self-driving cars. >> everybody find that when they hit their side view mirror and costs $3,000 to replace or whatever. good for the industry, though. patrick, i guess, one of the questions is can we paint in a broad brush here and talk industry whether you buy or sell semis, or does it depend who's in the markets and who is well-positioned and fataking share? buy or sell as a lump or get specific here? >> no. i think the one thing that has changed with semiequipment industry is you can get a lot more company specific where
there are, as i mentioned, secular themes, that can drive sustainable growth. there are some other segments that, i mean, if you look they are driven by supply and demand, pricing, those industries such as a favorable environment today, they turn quickly, you know, in terms of oversupply situation, and when pricing declines, that creates a a concern for that entire market, but i think from a big picture basis, you can be much more specific and then you can get much more company and stock specific in terms of the winners and losers. >> very good. gentlemen, will, patrick, thank you. >> thank you for having us, appreciate it. >> thank you. a break, less than five minutes left until the bell, dow down 38 points, closing countdown in moments. >> robots are not destroying jobs? making the case, you're watching
♪ ♪ 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. start trading today at etrade.com all right. we got about 930 seconds left, dow down 37 points, established retail was the sector of the week, and not for a good reason. let me show you macy's chart. i could have shown you kohl's, jcpenney, nordstrom, all charts look the same for this week.
big decline after a disappointidisappoin disappointing easternings report. dow, itself, down for the week as we are today as well. this is the first week over week decline for the industrial average in four weeks, as a matter of fact. ten-year from top to bottom, 242 at the top this week, 233 at the bottom. stuck at this range. ten-year note auction out yesterday. wti a rally on wednesday. it held. we're still well below $50, and some are wondering if that one inventory report wednesday was a one-off situation. >> all above 35, that was the important thing, hoping for the bottom, got it so far. i want to point out, small cap retail etf for you, and investing in the future of retail, small out there, online retailers, up for the year, online retailers, ebays, the
amazon, et cetera. xrt, the main retail etf consistenting of the old online retailers, they are down. tough situation. >> down 30 on the close. more on that ransomware hack attack in europe and asia and impact here in the u.s. as well. coming up on the second hour of "closing bell" have a good weekend, kelly. thank you, bill. welcome to "closing bell", everybody, i'm kelly evans, and the dow drops 2 p 7 points to close out the week here on wall street. the s&p 500 down four points today, and russell 2,000 down half a percent and nasdaq composi composite, the outperformer of late, held on the gains, a tenth percent of the close to 6121. again, the that has dak continuing to be a stall wart with themes of retail destroying ere parts of this market. we'll run you thu just how bad the performance has been for the
major retailers coming up here in just a bit after disappointing results from macy's, nordstrom, and jcpenney. more on tap next week, preview of target and walmart and others. also, snap gained ground back today, down 18% itself this week after the first earnings report that did not go over well. snap's poor performance detour private companies from going public? getting into that coming up. snap up 50% to date. joining me for the hour, cnbc market commentator, michael san tolly and cnbc contributor, great to you here. a couple places to start. something we have to mention, by the way, is this russell rank date, which is today, mike, so there's, you know, because in x indexing is powerful now, all of these things matter. who is in the russell 2,000, the 1,000, the s&p 500. there's a lot of money moving around making these decisions. >> there is.
the mechanics of how people invest are definitely more important than they used to be. the russell rebalance has been this annual ritual people try to game it out, you have algorithms written. this is initial screen to let people handicap which stocks are in which of the large bid small cap index of the russell. it's one of the influences out there. in general, the market did today what it's been doing for two weeks which is stay steady, calm, nothing capturing taene i attention on the whole, but you sell banks gently and lacking imagination, we buy a few big tech stocks. that's the rule. more stocks down than up. it's not anything to change the trend. >> selling banks, and inflation up this morning was interesting, but you keep having these weeks and months where this idea that inflation percolates and happens, bonds sell off, then and all the sudden comes crashing to a halt, and that happened again this morning.
>> talking about it last week, the fundamental disconnect between bond and equity markets and disconnect between the fed people, and if you look at what the fed themselves with the dot metrics have rates, market is nowhere near where they are in the next couple years. that's -- >> to your point, eric, himself, just in the last couple days, said, you have to be careful things do not overheat. part of the economy, like you talk about with commercial real estate that look frothy, let's say, and yet the inflation number comes out this morning and it's not great, but weak. >> yeah. well, you have markets that, you know, the old tale of two cities thing. you have a stock like amazon, up today, probably about 1.5%. i forget where it closed finally, but, basically, it increases market cap, total market cap of macy's. >> wow. >> of nordstrom. $6 billion. all you -- combine all retailers together and you got the market
cap of snap. i mean, it's crazy. >> no, i know. >> that's how it is right now, and i don't see what's going to happen here unless you get a catalyst. we talked about it for a few weeks. i don't see where the catalyst comes from, not from a speedup in legislation in washington. i don't know where it's coming from. >> i want to bring eric in the discussion. i don't know if you want to add chloral, but interesting there's only 233 names in the russell, not 3,000. they have to scoop up a lot of recent ipos and so forth. you know, the stock market is ironical ironicallystringing because people are buying back the float out there, but it's value that's increases. what catches you in the environment? >> well, i would definitely agree with you that the small cap stock environment, there is a degree of skarsty out there because you had a lack of real
ipos, and the ipos that had come out tended to be much larger. what we have left today are companies that tend to be more mature as far as where they are in the lifer cycle. they tend to be more financially secure, and we continue to see m&a picking up throughout this year as larger companies really make up their lack of internal investment in the businesses over the last few years and think that'll continue throughout this year, and hojs, you know, we look at a lot of the unloved areas of the market, in industrials, certain areas of some of the banks that are off their highs here. >> okay. >> we like some of the material stocks, builders, and even within consumer discretionary. that's one of the areas that is very unloved. talking about retailers here earlier. there's value opportunities here. >> we'll talk specifics in a minute, but where's the catalyst? this, by the way, the best
earnings season in five years, earnings up 15%, and we're off a low and weak base last year, but it's still a good number. >> it could be a good number, but the value -- >> the big cap tech names from that. >> the valuations were going into earnings season. i would say -- the thing right now, we're not in the age of the enrons and aigs and world coms where the lead stocks do extr e extremely well, crazy accounting schemes and not real companies. these are real companies, apple, amazon, alphabet, micrmicrosoft facebook. well-run companies. hard to sit back and go, well, apple is trading crazy multiples. it's not. the argument, i think, or the more likely outcome is not that it's some crash or something terrible happens, but it's that you just -- you are going to grind for long period of time time in the channel, and unless you get the energy stocks, you have a hard time in the market going higher.
that's what i think. >> what would you add? >> it's still in kind of slow and steady growth, high liquidity environment, in which does lend itself, and reminds me on the surface of 2015 when the market doesn't have a catalyst, it defaults to stuff i can own for now until that catalyst comes around. last year, it was the dividend stock. two years ago, faang. now it's faang plus. back in 2015, earnings were going to fall off the cliff, but now they coming back. >> that's true. earnings hurt, rough for retail earnings, despite the fact up 15% overall for the season, but the retailers just getting back here. can walmart and target turn things around next week, more on what, court? home depot should be better. i don't know we have to brace ourselves too much. >> exactly. next week might be different. i'm going to say "might." next week is a bigger one when we look at the reports because
we're going to hear results from a number of different kinds of retailers, not just department stores. there's big box players and specialty names too. charter results out before the bell on wednesday. shares down 15% in the last three months. target had a very disappointing holiday season, as you might remember, but that was actually after a strong third quarter. in february, tart laid out the three-year plan to invest $7 billion in the 1800 stores, add 100 small format locations, and improve its website experience. analysts are not optimistic going into results departmeexpe 29% drop on earnings and lower revenue than the same quarter last year with a 3.7% drop in comparable sales. that's the big one. walmart results will be out before opening bell on thursday, and trade is looking for earnings to fall about 2%, but on slightly higher revenue. they are optimistic the world's largest retailer posted comparable sales, which if that
happens, marks eight straight quarters of the growth. walmart shares opposite of target, up 11% in three months. the street likes the out of the box moves that mark is moving when it comes to the online operations like e-commerce sites, but walmart online has a long ways to go to catch up to amson's online. 3% come from online operations. store business, though, still works amazon. remember that comparing the two. back to you, kelly. >> they remember it well. we'll hear more next week. thank you for now, appreciate it. eric, you mentioned names in consumer discretionary you would be a buyer. who would that be? >> well, we think there's a few stocks like party city, people with secular growth opportunities that are beyond -- >> okay, wait a minute. party city? >> party city. >> that's growth with the --
they have, you know, streamers in every color and balloons and disney themed everything and -- >> right. >> tell me more. why? >> they are the largest supplier of party supplies to amazon and walmart. >> oh! >> so they are vertically integrated, and people are spending more and more money on those types of things, so i think even within consumer discretionary, a hated area now, you can find unique opportunities, just dig hard for them. >> i love that. party city is basically an amazon play, but along with everything else, mike, you do a fair share -- >> party city, halloween is their christmas as far as i can tell. >> it's true. >> very, very important. >> as far as what's driving it. >> costumes there. where else are you specific in terms of other sectors? mentioned industrials, banks, home builders, what are other names you like? >> pockets of technology. one name we like here is a company called power semiconductor that basically operates semiconductor fabs, really a play on the internet of
things, more analog semiconductor content going into autos, and that's a company that has a high degree of fixed assets they really leverage into a lot of new areas. the company's trading around $25 today, and we think they can do $2 in share of earnings and see the stock in the mid-30s sometime in the next year. >> all right. encore wire there too. i just want to mention into the weekend, mike, there's percolating to go from the microback out to the macro now, the issues in china with yield curve inverting on the five and ten-year basis and tightening conditions, but it's not tripping us. a focus here? >> i don't know that it is a focus, but matter of putting it on the screen because, you know, i mentioned 2015, that was the year when you did have a hiccup in chinese currency and rippled through. it's a combination how investors, if positioned in a way where this rears its head, that's an issue. i don't necessarily think it's a
new story because the story remains chinese authorities trying to muscle around the credit creation. >> and that chart we showed, curtesy of tom mcclellan -- that's the ten year there, but move higher in those bond yields in china may pull our tire. again, it's -- >> hard to say. to what mike was saying, the view for most investors is, you know, this is done by the chinese authorities, trying to tamp down on the credit creation, and so it's in their control. i can't say they actually control it, but that is the general view until it's not the view. >> exactly. until there's major drop in the reserve levels or something. >> in fact, the fact we meant to do that, still saying -- >> oh, gentlemen, thank you. eric, we'll let you go, eric marshall, go to party city and get streamers. >> i take it you didn't use streamers at the wedding? you were negative on streamers, nothing but negative. >> not creative enough to come
up with the supplies, and it was spur of the moment. never mind. snap shares plunge this week, first earnings report as a company, and whether the snap crash could scare off other disresulters going public themselves. first, confess your unpopular opinion. the wall street journal's gibson says robot ares not destroying enough jobs right now. why? that's next. you're watching cnbc, first in business worldwide. ♪ predictable. the comfort in knowing where things are headed. because as we live longer... and markets continue to rise and fall... predictable is one thing you need in retirement to help protect what you've earned and ensure it lasts. introducing brighthouse financial. a new company established by metlife to specialize in annuities & life insurance. talk to your advisor about a brighter financial future.
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built for business. row bolts are not destroying enough jobs, unpopular opinion, but this guest made the case this week in "the wall street journal," business leaders need to figure out how to use them more, especially in low-productivity sectors. well, let's bring in greg from the "wall street journal." ♪ >> thank you, kelly, everyone wants to cut taxes, not pay for cutting taxes even though as an economic matter, you come out ahead, nobody's going to like the idea that the statutory matter and capital gains rate would be higher. i add, by the way, that if the republican plan lowers the
personal top rate on personal income, then that would at the same time lower the capital gains rate in under this, and sort of related claims. >> greg, what do you think? >> oh, my god, kelly -- >> i don't need you at all, replace you with your robot. >> i hope the boss is not watching this show, i'll get a pink slip at the end of the day. yeah. >> we had fun with that. >> turn off the video, people, said, yep, sounds like him. >> it is hip. it is the robot. all right, sir, first of all, what reaction have you got since posting? >> a lot of people were surprised. a lot of people said it was written by a robot, and others said wish you were replaced by a rot baht, and there's a case. the reason it was written, kelly, i hear this all the time. hayer from barack obama, bill gates -- >> so do we. >> automation, artificial intelligence destroys millions of jobs and those jobs are not destroyed will be, like, working for minimum wage, and it's just not true! i mean, it's completely at outside with the evidence.
our country has a lot of problems, but job creation is not one of them. we are creating 200,000 jobs a month. the unemployment rate is the lowest in ten years. where -- >> what do you think -- when you heard bill gates can self-say not only that he buys into the idea you're trying to debunk but that we have to tax robots, i mean, that -- i was alarm. what do you think? >> well, it was just like a silliest idea ever heard. i'm curious whether we add that idea while he ran micrmicrosoft. tax automation, stability of software, algorithms, machine taking place of human beings. isn't that why human welfare advanced over 100 years? do you want to go back to using ox and plows to make our food so half of us work on farms? we don't want that. the same nowadays. robots are not destroying job, and it's tongue in check, because if you look across the entire economy, productivity growth, where you look to see
automation improving output, it's not there, manufacturing, productivity growth is zero. sector after sector, clear message is we have not gone far enough with automation. kelly, where it's obvious is in the fastest growing sectors like education, health care, like leisure and hospitality, and these are areas that really are resistant to automation. >> they are third rails in education too. >> it's interesting. i read the piece, greg, and i thought, first of all, on the health care side, i have not taken my son to the doctor for his two, three week cold that's been continuing. it's very hard to -- i think people still want the comfort that they get from dealing with another human being when somebody's sick. i don't know how you replace that. i don't think a robot does that. it's less advice than reassurance you get. i think that's the hard one. what i found most interesting is the one area i think that automation will totally destroy, which is not according to your
article or notes, is the finance sector. i think finance is the one area that is 95% of the stuff done by financial advisers -- >> our equity's high, 600 people, the division with three people, greg? >> i have been making that case for 20 years and wall street does not listen and keeps hiring people, okay? i had to laugh when black rock was going to replace human fund managers with algorithms, oh, great, just under perform benchmarks more sleepily than humans. talk to financial advisers, the main job is not picking great stocks, but hold hands of clients to stop them from doing dumb things. advise them on stuff like tax and so forth. i guarantee there's no financial adviser who can replace a robot because they cannot give that
kind of advice. there's reasons why we want to deal with human beings, and, look, i'm not -- we're going to have more automation, but it will change people's jobs, not replacing them. a perfect example, driverless cars, okay, uber is ingesting. meanwhile, uber and lytf, made it so convenient to higher a car. the number of people driving cars and the number of people taking these rides is booming, okay? we're creating more jobs in the taxi space, not less. >> greg, what you say, too, is for people who listen to this and say, you're crazy, i was laid off because i was replaced by a robot, you say, you know, we need more of this technology across these very unproductivity industries so that the whole economy grows people? what about the people who say, well, what happened to the people who is 47, job is taken by technology, and they don't get a chance to have a fresh start and benefit from this. >> what i said, first of all, every person with that story, that person needs to be listened to. i would point out that's been
going on for hundreds of years. that's where the expression came from, right, but there's never a time in history when money saved because something's cheaper from automation didn't get spent on something else. right? so when we have got automated elevators to stop paying people to operate our elevators, okay, so spend money on child care workers, yoga instructors, long distance learning specialists, industries that did not exist 30 years ago. the key is to ensure a safety net is in place, trading in place to get people who get laid off from automation professionings and find work in other ones. >> putting you in their shoes, and we all say it's easy to talk about the change -- oh, lord. >> oh, lord. oh, my goodness. >> do not replay, kelly, please. >> oh, my gosh. look at that. >> one last point. this is not an abstract 50,000-foot issue, but relative to the markets right now.
the unemployment rate is down to 4.4%. even though the economy's only growing 2%. why? we're not getti inting producti or output advantage from the automation. it's a problem of the fed. find a way to turn around productivity performances in the service sectors, the fed could take its time and not raise interest rates. >> all right. this is a quote, greg, i look forward to our cameo. >> i want to go back to the video of you walking. what was that? >> from the aspen constitute years ago. this is greg's robot, greg. you in the future. thank you so much for joining us. >> okay, thanks for having me. >> have a great afternoon. president trump's interview with nbc's lester holt did not calm down controversy over the firing of fbi director james krom, and larry kudlow talks about grinding to a halt and put the presidency in jeopardy. what it means in the market. apple shares up 35% this year, and it's only may, and the company's cash horse hits 257
billion. yet, apple is tapping the corporate bond markets. we're going to tell you why after this. where's jack? he's on holiday. what do you need? i need the temperature for pipe five. ask the new guy. the new guy? jack trained him. jack's guidance would be to maintain the temperature at negative 160 degrees celsius. that doesn't sound like jack. actually, jack would say, hey mate, just cool it to minus 160 and we're set. good on ya. oh yeah. that's jack.
so i thought it might be time to talk about a financial strategy. you mean pay him back? so let's start talking about your long-term goals. knowing your future is about more than just you. it's how edward jones makes sense of investing. our 18 year old wase army in an accident.'98. when i call usaa it was that voice asking me, "is your daughter ok?"
that's where i felt relief. we're the rivera family, and we will be with usaa for life. welcome back, time for fast take, mcdonalds paying franchises so upgrade. interesting story in the wall street journal today. remind why everyone loves it so much. >> well, when you need to force them to do something, they dcht
see the rate crop -- the real estate, leverage over the franchiseees, and, i know, it works, and the franchises could be in better condition if you just tell them to do this, but hand them the money. >> it's market saturation. the u.s. market, when you have -- when you have so many dollars, you tweak the market. >> are you, though, if you lose business and said they need to invest to upgrade the stores. >> it's different than going, oh, we're going to embark on a huge expansion causing billions and billions -- >> they are losing business to, you know, the line's too long, we need faster. >> they are not competing with the starbucks. >> they could do upgrades overnight if they snap fingers and made it happen. >> they are not going away from a franchise model, no way. >> and, you know, it's -- i think it works, wall street likes it, industryi trying too. >> apple raising 7 million in corporate debt with the proceeds
going back to buying back stock, and they are not alone. amgen did that earlier this week, and, by the way, earliest in the year to hit the $700 billion mark in corporate debt issue. what's it mean? >> means that veracious appetite for paper with yield on it. you have european central bank buying corporate debt over there. it's a global market. basically, companies are smart. they are hitting the market right now, and with apple, i wish at least inspires people to talk about $250, and on the books, and -- >> that's a lot of debt. >> they are adding to it. >> they can't keep up. >> they are borrowing money nearly at what the u.s. treasury borrowed money at. a little bit over, and so it makes total sense for them to do this. the only fly, if there is one, they are doing these things, and they don't know how the whole thing plays out. >> right. >> once there's clarity around that, it either makes sense or
won't make sense. >> high corporate lefvels come home? >> it's a prerequisite for 2007 and 2000. >> that was different. >> no -- >> general -- >> general corporate debt was high in the 2007. at a record now. it's not as if we talk about the great balance sheet of corporate america, they have been smart, official balance sheets -- >> it's cheap. that's the whole -- that's why what the fed does with rates are. >> if it's arguably the fed. >> that's why it matters. >> i understand. all right, finally, the housing problem of -- speaking of 2007-2008, how worried should we be about home capital trowels and moody's cut ratings on big banks. >> my guess is not terribly worried. this has been one of these long percolating slow motion crisis for a long time now. canadian housing market did not tank with ours, so it's hard for me to see why the banking system is choking on bad housing debts. >> worried about canada in the next u.s. sub prime crisis?
>> no. no. >> got other things to worry about. >> in the scheme of things, i worry about big things like china. you know, you worry about the things -- >> you said it like trump. china. you worry about china. >> you know -- now you're really hurting my feelings. now you are getting back at me for the streamers comment. i know where this is going. i'm now talking like donald trump. >> irony is real estate shows in cana canada. >> yeah? the brothers from canada? all right. massive ransom aware attack hitting asia attack this afternoon. here's what we know so far. >> hey, kelly, well, we do know that it's scores of countries, some estimates put it north of 70 countries that have been affected including britain, russia, and japan. the attack used ransomware, encriminates data, and locks users from data until they pay the ransom. tools are widely believed to be developed by the u.s. narcotic
security agency exploiting as a result neshlt in microsoft's operating system that allows to automatically spread across networks, so experts say it could spread quickly, even throughout the weekend. half hour ago, microsoft gave a statement saying energying added protection and detection against new malware today and those running antivirus software with windows updated enabled are protected. they are working with customers to provide additional assistance. one of the largest disruptions so far, guys, has been to britain's health system where hospitals and doctors turned patients away and cancel apointments because the system was infected. we have calls out to major so-called critical infrastructure companies in the u.s. these are companies that experts say were targeted in the attack. we will update as we hear back. back over to you. >> all right. for now, thank you. fallout from the firing of fbi director james comey is rippling through washington. it could have an impact on wall
street if president trump's economic agenda is put on hold as a result. larry kudlow is next. high profile tech disroupters rethinking plans to go public after snap's post earnings plunge this week? we'll ask coming up on "closing bell." last year, he said he was going to dig a hole to china. at&t is working with farmers to improve irrigation techniques. remote moisture sensors use a reliable network to tell them when and where to water. so that farmers like ray can compete in big ways. china. oh ... he got there. that's the power of and. ♪ it's not just a car, it's your daily treat. ♪ go ahead, spoil yourself. the es and es hybrid. experience amazing.
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welcome back, president trump speaking to nbc lester holt and where the campaign and president himself was under investigation other colluding with the russian government. this is what he had to say. >> in one case i called him, and in one case, he called me. >> did you ask? >> i actually asked him. if it's possible, will you let me know, am i under investigation? he said, you are not under investigati investigation. >> but he's given sworn testimony there's an ongoing investigation into the trump campaign and possible collusion with a russian government. you were the centerpiece of the trump campaign, so is that truthful? >> i know that i'm not under investigation, me, personally, i'm not talking about the campaign. i'm not talking about anything else. i'm not under investigation. >> been quite a bit of fallout over the firing. could it president the president's economic agenda, which the market is watching
closely heer lly here, on hold? larry kudlow, good to see you. >> really, it was never about him. the original new york times story might have been paragraph 16, that said it was not about him. i mean, it was about maniford, flynn, and so forth, sure. it was never about him. i heard a conversation, you take it for what it's worth, that comey spoke a few days ago to senator feinstein and senator grassley, i believe, judicial committee people, and said trump was not under investigation. >> so were you surprised how derail it's become? he decides to fire a director who, clearly, the republicans were not big fans of, clearly, the democrats were not fans of, ten it's turned into a -- consumed all the oxygen in washington. >> it has for a few days. it has. republicans have have a lesson on firing, but a lot ask questions about timing. you know, those are good questions. >> mccain with the methane thing this week, basically, this
was -- part of obama's legislation that should have been rolled back according to the republican agenda, and mccaine, himself, says, no, not voting with them, blocked it from happening, citing the fbi director filing among other things. >> the real story -- i sound like paul harvey, the real story is mccain is pissed off because he didn't get more defense money from the cr. >> does that -- my point is, you raise, you know, sort of the awareness of what -- how moderate republicans people simply to understand whether the gop itself is on track, and see the note this week? they say bye bye gop majority, and they were early to say bye bye to the democratic congress back in 2009. >> i saw this. i was going to mention that dan cliffton, brilliant kid. look, paul ryan was on another network in an interview two days ago, and he said several times, we can walk and chew gum at the same time. i think that's right. these are legislative issues, okay? they are not intelligence issues. they are not judiciary
committee's. that's correct. however, senator john cornin this evening, could have been this morning, made a statement offhand, it was reported, that the health care bill will be done before year end. >> well -- >> well, that did not bring joy to my heart. and -- >> like him to say it will be done yesterday. >> well, you know, i want him to say next six weeks, two months, and they are expediting it, i know that. he said he's the number two guy, so we'll have to wait and see. i, myself, think it gets done sooner than that, but i will say this about this note, those guys are good. dan cliffton and jason. if there is no tax cut and the latest it can come, i would say is the winter of '18 because there's ngot to be room, six months or so, for the economy to pick up on it. if there's no improvement, not so much in gdp, but in wages and
salaries and benefits and so forth, that's where the pinch is. if there's no pal pble improvement in an off year, i think the republicans are at risk for the midterm. now, i'm not saying they won't get it done until next year -- >> no, but, listen, your message -- >> the stakes are high. >> extremely high. >> very high. they did a good thing, give them credit, china, china trade, huge. because president has basically changed his campaign position. >> yeah. >> we're not going to con front. we're not going to have a trade war. >> yep. >> we're going to negotiate. we're going to make commercial deals, ross calmed down. exports great for both economies, creating jobs at home. i really like the china situation economically and strategically. look, once he appoints ray kelly as the new fbi director, this will taper down and go away. i mean, it's a wonderful story.
the democrats who were calling for comey's head last summer now call to impeach trump. >> what's right is left and left is right. in the meantime, things happen. >> taking back prediction stuffs happens before year end. i heard it, have not heard it totally. >> the statement was not the best thing i've heard today, all right? we'll see. thank you for having me. >> appreciate it as always. david, out with the 13-f filing. all the details, leslie? >> that's right, kelly. we are digging through filings over here, some of the early insights that we've learned at this time, especially regarding apple, this is david tepper's fir firm. adding significantly two pharmaceutica pharmaceuticals, the quarter ended march 31st, decreasing stakes in allegan, mylan, pfizer, and pharma.
we learned from dan lobes filing, that he dissolved stake in apple and decreased stake in facebook, but added new positions in the tech industry included sales force, qualcomm, and hp. third point acquired shares of snap, but unclear if either hold the company after yesterday's slide. remember, snap went public a few months ago and had first quarter earnings, first earnings report. starboard just came out, digging through the filing now. we'll report back with what we learn. >> snap, wow. all right. leslie, thank you for now. leslie picker in headquarters. move over college students, seniors lead the way in house sharing. all the details coming up. but, first, snap shares sunk this week after the first earnings report. drastic to make other companies right after this. the power of the nasdaq market. the power of 100
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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. welcome back, the lunch of the fifth annual disrupter 50 list. more than a dozen over 50 companies are now public. julia has a preview of the earnings ups and downs for some of those newly public ones. julia? >> well, kelly, because they are attacking the status quo, going public, they are under more pressure than ever to innovate to avoid being squashed. 50 have gone public in four
years, and it's been a wild earnings season for them so far. on the downside, snap, whose stock is down 18%, says reported disappointing earnings wednesday afternoon. on questions about whether snap would be able to keep disrupting through its -- through its new service wireless -- disrupt ad giants, investors are stuck on concerns that facebook is successfully copying snap's most popular features. there's a similarly rough time with twilio. they beat expectations, but stock plummeted on a warning they are losing revenue from long time disrupter uber. now, weighing on etsy, failure to keep innovating, resulting in ousting of the ceo. two surprise success stories this quarter from the founder and ceo of two companies. jack dorsi. concerns twitter was stagnating, twitter beat expectations on the top and bottom line and reaccelerated user growth. square beat expectations as well
by successfully diverse revenue streams and broader geographic reach and banking and loan services. see what companies have what it takes to keep innovating long after they go public. kelly? >> that's the key, julia, thank you. that fifth annual cnbc 50 list is unveiled in full this coming tuesday. don't miss it. as we talk about whether, you know, how the public companies do, will snap shares drop, hear others going public. joining us now from secondary ratings.com, welcome to you. >> great to be here. >> yeah, a lot of focus when a big name like this is public and the fact they did so awful myly this week, does that go down the sidelines? >> adds to the hysteria that happens behind the scenes. what you have seen today, and -- well, with the decline in the snap is the screen, that is in the open window for ipos, in a very fine mesh mode, and these other companies that are dying to get into the public market
are just seeing that there's not ready for it because they are not going to pass the smell test or the investor test at this particular point. >> that's from the investor's perspective saying, look, we have high standards from the company's founders perspective, there's reluctance by the highly valued tech stocks, tech companies to actually go public, and subject themselves, but if snap was still private when they had the results just this last quarter, they were not going to slash the private market value to 20%, right? it's a harsh test. >> really, what we'll see moving forward, just what you addressed here, a company that may have a valuation of $25 a share. they are going to take a haircut, and the difficulty with taking a haircut is an economic situation, too, because the people that get into the late stage round of funding, they are going to have provisions in there, which companies have that say, well, if i come into the marketplace with an ipo, x% below where the last valuation was set at, we're now looking
for additional stock to offset the loss we have to pick? >> i just -- as long as there's a circuit of capital in the private markets, which there is right now, there's going to be continue to be a natural tension between companies needing to go public and not. that's not changing. you know, reality is, you know, maybe you say, oh, bad for the investors who got into snap -- >> you know, i have two questions for you. there's a circuit of stability to stay private, but two reasons to feel a push to go public anyway. one is so people monetize or liquidate early positions, the other is because some get loans with ratchets, if you are not public in a year or two, you pay more and more in higher rates. >> that's true, but the reality is snap people were able to dictate terms of the ipo for the market. they have control of the company. they still went out with outrageous valuations. the company is worth $20 billion. it's hard to look at him and go, oh, because we didn't give investors 40% bump in the stock,
it's a failure. >> we have to go then, david, but will people do what spotify did and go direct instead? >> i think the direct route makes a lot of sense on paper because they are going to be able to control distribution, who has the stock, it'll stay in strong hands, people will not be so loose with their positions. what i don't think is something that's going to apply to all the stocks that are looking to be out there, the unicorns are going to be worried about valuation situations, and they may have no choice other than to try to go public even with the hair cut. >> all right, david, thank you. >> thank you. >> check back in soon. up next, jane wells is outside the original home used in the tv series "golden girls" to talk a new trend in the rental market. in miami, hi, jane. >> reporter: oh, well, yeah, you know, in miami here, thank you for being a friend, kelly. forget the millennials. up next, fastest growing demo in room sharing, seniors, two new golden girls when we come back. ,
>> dorothy blanche, rose, sophia, the iony, i just started watching. the first episode was on the other day, yes, the "golden girls" they were way ahead of their time. they show today is older women. jane wells is outside the original "golden girls" who us in brentwood, new jersey, tell us about it. jane. >> reporter: that show is still funny, this is in close
proximity to miami. the location scouts can find for the show. look the fastest growing demo is that. the "golden girls" were hit in the ''80s, more golden girls now the roommate business is booming. this 69 and this 55-year-old are strangers who moved in together. knavel needed a cheaper -- >> i work in the non-profit sector. we don't make much money. >> she need someone to care her pets or called 11 if she falls. >> that is happening. >> that's a very frightening thing when you can't get up and there's nobody there. >> it's great. mostly. think of them as the new "golden girls." that '80 hit is even more relevant now. airbnb says seniors are the most hosted and silver nests can look to share rooms.
that's the site that brought these two together. >> i like this site. >> it turns out she and i are originally from the mid-west. we like sci-fi movies. >> they know moving in, in their golden years is different than in the 20s. >> when you live by yourself, you get set in your ways. you don't have to deal is with other personalities or other issues. really? >> megan has learned to derryl with miriam's cat and miriam learned to respect megan's privacy. which golden girls to they resemb resemble? >> i'm a cross between a wild child and bea arthur. >> oh, i'm bea arthur. >> reporter: well, i'm estelle geddie. silver nests charge homeowners $29.99 to be potential roomnates mates. it charges one for a backgrounds check and 70% of the home openers on this site are female.
55% of the prospective roommates. the advice from our tlendz friends there, talk about differences, there will be some and identify your boundaries. you don't have a silver pot over their head and bang on wit a spoon. >> they can do that by saying which kwd golden girl" are you? everybody can kind of understand. this is what i'm getting into. >> reporter: bea arthur. >> it's true. where does that leave you? it's a great story about airbnb and what it's being used for. thank you so much, as always, your jane wells if sunny, miami, florida. while department stores are getting slammed, one luxury retailer is seeing a boost, that's next. coming up, a former jc penny's ceo says don't give up on department stores, see which names are set to soar at the top of the hour.
those companies, it's like i never -- i don't understand, i'm in new york. i don't understand why anybody goes to tiffany's. it's a very new york attitude. >> i would say that we can get department stores in general. tiffany's is an experience there beyond the generic. >> not the high end shopper. it's the tourism flow. the argument is those start to pick up a little bit. i don't know if they weigh in on the location. >> you do the little blue box trick? >> what do you mean? >> maybe the blue box trick. >> what's the trick? you take a cheaper -- >> everyone does it. everybody doesn't do it. >> everybody does it. actually. >> you can get checked to whatever you like. don't implicate the others of us. >> sherry lansing was on this show earlier. i bring it up because some of the themes she had on will be on monday. we have a special clo"closing b
interview" michelle pfeifer and robert deniro play bernie and michelle madoff. it's been filmed. it will be fun to watch. i think, i hope. they were great. >> i predict this. >> this one not so much. have a great weekend, guys. thank you the blue box trick. fast money begins right now. "fast money" starts right now live from the nasdaq markets overlooking new york city's time's square, i'm mellissa lee. tonight on "fast" apple's amazing run rages on. the stock having its best start of the year since 2012 and goldman sachs says it can go a lot higher. we will explain. plus the retail rack rages on after a dismal week. we will hear from a former ceo j.c. penny whether or not this is the death of the department store, later, twitter says they have a way to make it easier for the white house.