tv Closing Bell CNBC February 20, 2018 3:00pm-5:00pm EST
forward to watching lindsey vonn and what will certainly be her last olympics. the downhill i wish her well. she's overcome a tremendous amount. >> we'll all be watching. >> thank you for watching "power lunch". >> welcome back, melissa. >> yeah, thank you. >> "closing bell" starts right now. ♪ hi, everybody. welcome to the "closing bell." i'm kelly evans at the new york stock exchange. >> we were thinking, underdog was a super hero with a weak chin we thought of others those are human beings and we don't to want call them out. i'm bill griffeth. we are setting session lows, down 240 points, largely driven by walmart, about 70 of the points pushing it lower. that's taken a hit on earnings look at the nasdaq today, up in
an otherwise down day. it's the only positive and the chips are powering the nasdaq higher, up more than 2%. nasdaq is up almost 7% since february 9th. >> morgan stanley, jpmorgan, blackrock issuing performance. >> just last couple of hours we saw the nasdaq be just about -- just flattish, now down half a percent. the overall nasdaq was up half a percent and now drifted lower. is that bull/bear debate in the full swing let's look at the calls. you mentioned a handful of the big names, blackrock come out saying basically fiscal stimulus is super charging profit growth expectations and the market isn't fully appreciating all of those growth aspects they're very bullish
they upgraded u.s. stocks overall. goldman sachs, in their february note declines note most declines don't involve a bear market and recession usually occurs 6, 12 months from a pullback and to balance things out, have you what happens with morgan stanley. andrew sheets, head of cross-strategy assets, they look at didn't assets in a portfolio construction they say the recent pullback is the appetizer, not even the main course we could see more ahead. they say one if not several 10% pullbacks in 2018 could occur. it's something he addressed. andrew sheets, the cross-asset strategist at morgan stanley did on "the halftime report" today >> i think the market hasn't had to handle and struggle with that tradeoff between rising inflation and potentially weakening growth indicators for a long time. the fact it's been a long time, i think, increases the risk.
>> it's been a long time, certainly two years since we've seen any kind of pullback of this nature. so this bull/bear debate continues as we see the dow toward session lows. back over to you. >> dom, thank you. so, where do we go from here here are two guys that know. we have with us new york stock exchange trader from o'neill securities, kenny at post nine and jake from longbow asset management there's a prevailing thought here, kenny, that we haven't seen the lows yet. it was too easy this comeback of sorts. >> you know i'm in that camp we talked about this i thought it happened way too fast going down happened so fast and, again, coming back up it happened in a "v" shape and i don't think it feels real enough i think today has gwynn you a little of that sense this morning the markets were weak coming in kind of felt it needed a breather, especially after the rally we saw last week my sense is it needs to test it again. i've been saying this ever since it tested at 200 there was a lot of technical
damage done to the market when it sliced through the 50, 100, and 200. i'm much more in the morgan stanley camp in the sense that, don't be surprised if you see this continued olatility. >> jake, what's your best advice for people -- we don't know if we're going back down, we don't know if we're going back up with the same momentum we started the year off with, so what should investors do about it? >> i think putting money to work every month, every quarter is good we took a tax loss selling december, so we had 20%, 25% cash to put to work. that was uninvested in january when we went up 7% but it was there february 1st through february 8th when we went down 10%. so, i think being diversified and international investments like europe, metals like gold. we love corporate bonds and preferred stocks on the fixed income side of things. >> what are your cash levels right now? are you telling me, by the way, you invested every day of the
selloff but you timed it paftly? or talk to us about the cash levels and what you are doing? >> no, no. like everybody, i was stunned by two 1,000-point declines who wasn't as a 23-year investment adviser, i was honest with our clients, we were stunned. we hope our clients who are long equities have a seven to ten-year time rising, they're fine for clients in or near retirement, we hope 60%, 65% of their money is already in fixed income that they have a cash flow to meet their income needs. >> kenny, we've noticed, we've gotten back to a trend we saw a lot last year and the year before where you'd have various -- this internal rotation we call it. one sector is up, another is down that seems to be a positive? there are those that argue it's a market searching for bottom. >> it is when you see that change in
leadership, you see that asset manager is trying to think, okay, what's going to perform best in this outlook we have rates that are going to rise fast at it's a market searching for bottom, i'm not convinced we hit the bottom yet i'm not calling for a bear market, i wouldn't be surprised if you saw it go down again and test that low. i just think that's where it's going. >> people who are closer to retirement might have 60% or 75% in fixed income at this point, but how safe is that where do you go in fixed income and not feel as concerned about high bond prices, for example, as you do about -- as you hear about high stock prices right now? >> thursday the 8th we were down over 1,000 points. our bond portfolio were higher the preferred were down 1% or 2% bonds will go down especially in interest rates environment
i agree wholeheartedly with kenny. i think we'll retest the lows. i saw february 9th on friday when we started down 1% to 2%. i thought we missed a great opportunity for capitulation that might have got easy money out of the market. it might have got us to be not as complacent as a lot of investors have become. >> i think there's a key point a lot of people need to understand when you talk about having a bond portfolio, if you're someone who's invetssted in bond portfolio. as jake said, you're getting the coupon you'll hold it until it matures and then you get your money back there's all this angst built around -- >> when you say bond portfolio, there's a difference between a bond portfolio - >> a portfolio of individual bonds. you get that question. if you're in the bonds for the
income and the stability, forget what it does because you'll be okay. >> but it is an argument suze orman made many years ago against bond funds for that very reason you're not guaranteed to get your money back. >> when you get older, you're more in a portfolio of bonds versus a bond fund. >> you're welcome, suze, i'm still quoting you to this day. good to see you oth. thank you for joining us. meanwhile, as we mentioned, walmart far and away the worst performer not only in the dow but the s&p as well today. retailer on track for the worst days of 2018 on the back of those earnings that missed wall street estimates courtney reagan joins us with the miss there i guess it's online. >> there's a lot of different things going on, but you mentioned walmart is on pace for its worst day since 2018 that's when it lost more than 10% with surprising investors with the multiyear, multibillion dollar investment, e-commerce supply chain and employees since then, after the initial
shock, the strategy has been paying off for the world's largest retail from that day it was announced, the day after, rather, through just this past friday walmart shares actually up more than 75% today, though, it is that u.s. e-commerce sales growth deceleration that seems to be bothering the street most. 23% growth is the slowest rate in at least the five quarters walmart's been measuring it the way it currently does. walmart says it did expect most of this deceleration because of the jet.com acquisition anniversary, but some unexpected inventory mishappens around the holiday did hurt, too. now, walmart forecast u.s. e-commerce sales will reaccelerate to 40% today. today's stock move is signaling a little market skepticism about that walmart's fourth quarter profit fell short of expectations and so did the four-year earnings forecast gross margin also fell they're lowering those prices to be competitive revenue in same store sales came in better than expected. in fact, those u.s. comps higher
for 14 straight quarters and u.s. store traffic continues to grow. and that does matter because, remember, more than 96% of u.s. sales are still coming in from walmart's physical stores. we talk a lot about online, but under 4% of their total business kelly and bill >> are we emphasizing that online piece too much given it did -- the huge growth previously accounted for their j.d. acquisition some of this had to be expected. >> jet.com. >> yes, thank you. >> walmart said they expect the majority of this deceleration and only some, what they call a minority amount of that deceleration was unexpected because of some inventory mishaps. ceo discussed having big tvs in the warehouse crowding out space for everyday household essentials and that turned out to be a bit of a mistake because then they couldn't get the inventory out of the essentials. things they need to work
through. if they're looking for 40% growth in the next year and they just had this mishap, you would assume they think they've figured that out i just think it's important to remember the stock is selling off because of the e-commerce, but, again, it's still under 4% of the retailer's total u.s. sales. just something to remember you look at walmart's entire portfolio in the u.s., not to mention internationally. >> thank you courtney reagan watching walm t walmart, which is weighing on the dow. >> we'll show you the industrial average setting even further lows for the day you know, lately when we'd get a selloff in the morning, we would see the market come back in the evening. that's not happening today we'll watch this as we head towards the close. >> down about 290 just now on the lows of the session. s&p, by the way, if it was up today would have its best seven-day win streak since 2003 but we're down 15, the vix is back above 20. one dow retailer faring a little better is home depot at
it's now turned negative, after reporting fourth quarter earn frgz and revenue that topped wall street expectations and a 15.7% increase to quarterly dividend same store sales were up 7%, compared to estimates of 6%. it was helped along by hurricane recovery brian nagle telling cnbc that sales of appliances helped home depot's results and customers are undertaking larger home remodeling projects. rates need to be around 7% before home depot would start to worry for rates. >> i don't know how they quantify that -- >> i would love to know the sensitivity analysis. turning from retail to restaurants, domino's reported mixed fourth quarter results before the bell. cnbc's kate rogers has more on that with the stock hanging onto a slight gain here, kate.
>> that's right. domino's reporting a mixed quarter. eps of $2.09 on revenue of $891 million. street was looking for $906 million. same store sales came in below estimate at 3.8% in u.s. company owned stores while franchise locations saw sales increase by 4.2% estimates were at 5.9% and 6% at company and franchise stores respectiveli respectively international comps missed coming in at 2.5%. the company ceo pointed out this is the 27th straight quarter of positive u.s. comps and 96 consecutive quarter of positive international comps. the company also opened 422 stores in the quarter. this is also the second to last quarter before patrick doyle steps down as ceo and richard allison takes the helm doyle is responsible with turning the brand around and enhancing their digital initiatives and the overall taste of domino's pizza.
of note today, a report out of the brazil journal saying restaurants international, the parent company of burger king, is looking for a bid for domino's domino's told cnbc they don't comment on rumors or speculation. now, compared to its pizza counterparts, domino's is outperforming papa john's and yum brand, the parent company of pizza hut. >> i had not heard that about the deal speculation holy cow, this is not an undervalued company right now. >> and i, i mean - >> a stellar performer - >> such an interesting competition between restaurant brands international, if they did adam notice's to the portfolio because they have burger king. and yum brands have taco bell and pizza hut. some of the most intense fast food competitors, fast food and pizza going head to head if this comes to fruition, but domino's won't comment. >> this is kind of like grocery
stores buying drugstores, or online stores, you know be there's a business model that's working. everybody is copying it. >> that would be interesting domino's has been one of the best performers. dow was just down 300 points a moment ago >> so, we're not seeing a comeback of any kind it will be interesting to see what the market on close orders looks like art cashin is back, we're pleased to say, feeling better we welcome him back. the dow is down 1.1% and even the nasdaq turned lower at this hour. >> the "closing bell" is just getting under way. >> announcer: straight ahead, a big day for airbus as the battle with boeing takes a big step that's next. plus, if barron's is right, the reits are about to take off. what's your best bet the "closing bell" with kelly evans and bill griffeth is back in two minutes
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airplanes when it comes to commercial airplane market it's the wide bodies that don't get as much attention but it's an interesting battle developing today in france at the airbus headquarters, they delivered the first airbus a-350-1000. the largest twin engine jet built by airbus. it's not the a-380, which is the largest. qatar airways. airbus believes it can capture some of those customers who have been flying a boeing 777 for a number of years and they might be close to a replacement of that vehicle over the next three to four years. that's why the ceo of airbus believes the a-350 is positioned in the right spot right now. >> this aircraft will be a better choice than the 777-9x, which for many is too big and
that the fuel burn will be better. >> as you took a look at shares of airbus versus boeing, everyone will say, look at boeing, they're easily outperforming airbus keep in mind, the backlog, these are planes that have not yet been delivered airbus has more than 7200 in its backlog. boeing's backlog is more than 5800 that means its deliveries are stretching out six to seven years. it's an important measure when you look at these two to see how they're doing not only with that backlog but as they cut into it and increase their deliveries over the next couple of years. >> that's for sure, phil >> that's amazing. 7200 in the backlog? >> how quickly can those be canceled the second -- >> that's the thing. >> i think so people think -- people think they get canceled real quick believe me, even during a downturn, while there are some cancellations, it does not fall off as quickly as people think
>>. >> which in that case, then it is a testament to just what these companies are doing. >> phil, thank you phil lebeau. we are continuing to see lows it's been a down day, but some of the biggest selling is happening right for you. we've been itemizing how walmart has been the biggest decliner for both the dow and the s&p today and accounted for more than 70 of the dow down points others are obviously going well. >> if it weren't for the chip stocks, you would barely have any components of the dow in the green. we'll keep an eye on it. the volatility has jumped. >> look at that. it's getting even more serious now. the dow is the biggest decliner, down 1.3%. >> we have 40 minutes to go. the nasdaq is -- would you say it's down half a percent yeah, that's a pretty significant move in the last 20 minutes. >> when you consider how positive it was. we'll talk about real estate
investment trust they have underperformed in a big way over the past couple of years, but barrons's is saying they are flashing a buy signal t professionals, let's measure up. cfa institute. today, the new new york is sparking innovation. you see it in the southern tier with companies that are developing powerful batteries that make everything from cell phones to rail cars more efficient. which helps improve every aspect of advanced rail technology. all with support from a highly-educated workforce and vocational job training. across new york state, we're building the new new york. to grow your business with us in new york state, visit esd.ny.gov. to grow your business with us in new york state, when this bell rings... ...it starts a chain reaction... ...that's heard throughout the connected business world.
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as investment management professionals, let's measure up. cfa institute. dow was down 330 points a moment ago as the selling has intensified just in the past half an hour we were positive around the middle of the session. back below 25,000 on the day >> everybody is negative, at we hear the semiconductors inside
technology are still positive. they had a -- roughly a 2% gain early on and the top five gainers in the s&p today have been semiconductor stocks. that early on helped the nasdaq but everyone is moving lower. >> let's get to seema modi. >> the selloff intensifying toward the end of the day. the dow now lower by 300 -- excuse me, 297 points. he were down as much as 327 points, a 1.3% decline for the dow. extending to the nasdaq and s&p 500. what was interesting is when we started the day, it was a consumer staple that led us lower by walmart, disappointing results. that stock on track for its worst day since 2015 then you saw other names and the diversified consumer space from kraft, hineinz, kroger among others to walmart's disappointing results. then we saw selloff in health
care, utilities, also part of the selloff. biotech names that have been some of the big winners in 2017 under pressure in today's trade. that was one of the big themes here it started with consumer staples but it quickly moved to the other sectors like utilities and telecom. that seems to be one of the reasons we are lower here on the dow with names like travelers and verizon moving lower that seems to be a big part of the story. the other thing is the dollar, it continues to strengthen across the board last week with that 4% run we saw in the s&p 500, one of the -- one part of that story was the weaker dollar. today a slightly different story. back to you. >> seema, thank you. we'll see you on the close at the countdown coming up in a little bit here. let's check on some other movers in today's market action shares of snap lower today after being downgraded to an outright sell from neutral over citi. citi saying the significant jump in negative reviews for the app since the redesign at snapchat could lead to a decline in users
that could negatively impact results and that stock is down more than 8% in today's trade. the other side of the trade is chipotle, still up about 3% last i checked. yes, on the heels of upgrade to hold from sell they continue over the appointment of brian niccols to chipotle and the stock was up sharply on friday on that news. and it continues higher today. >> and that is a big move lower for snap as well >> so, the market overall is the story right now. the dow just off the lows, down 318 points we'll see how we do in the final half hour as we head to the close for this tuesday up next as we approach the end of another volatile trading session, a top strategist lays out the sector tt hahe feels buying right now would make sense in today's selloff stay tuned it's all yours.
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>> students who survived last week's shooting at parkland high school heading to tallahassee to put pressure on state legislators to consider gun control laws they left coral gables for the ride to the state capitol. one friend said he's motivated by the friends he lost. >> it will motivate me every day. nothing could bring me down, being reminded every single day of the horrific things i saw and hopefully no one has to see ever again. >> friends and family gathering in south florida to say good-bye to a victim of the parkland shooting peter wang was holding a door open so other students could escape the gunfire when he was shot he hoped to attend west point. actor george clooney and his wife are donating $500,000 to the students organizing marches against gun violence they're inspired by the students turned activist to the students from parkland high school.
make that more than one of us. back to you. >> thank you, courtney. let's get to the "closing bell" exchange with the down down 280 points. quinn cosby along with peter costa. rick santelli joins us from the cme in chicago as well welcome, everybody peter, any talk around here about why this sudden late day selloff? >> you know, i was talking to a couple guys, and they thought it was traders getting out of position i'm thinking that's kind of like apr a dubious explanation. there might be some truth to that, too. >> that should have happened friday, though. >> you would think so. you would think so but people are starting to unwind some positions. it's nothing major because the volumes are so low. >> what do you think is going on >> obviously, there are sellers waiting to get out and last week's move you had a very oversold market
coupled with options expiration. the markets retraced a bit and now the market has to fight, i think, to make some more gains it's part of the bottoming process everyone talked about that the market needs to test and make sure that that bottom was in >> rick, anything going on in bond land or with the dollar here that -- consistent with the selloff or those lately seem to be holding steady? >> the fixed income market continues to hover and walk higher with respect to a ten-year closer to 3.25% we had a two-year auction today that was slightly below average. even though a short maturity popped up nicely maybe it's a way to invest while there are question marks in the air. the dollar index was up close to two-thirds of a cent but needs to be put in perspective we're under 90 only a penny away going back to
the closest yield in 2014. it's popping here a little bit i really think the equity markets for all of last year to behave a certain way the volatile of february is extinguished that. and i think it's going to act different. i'm not at surprised we don't just resume the upside like we had in 2017 and we're also assuming all these positions that took so long to put together with respect to a trigger of volatility, the liquidation may not be one we were above 25,000 if you're a seller you don't want to sell it in the hole so, i expect there's a lot more days like this to come >> if this volatility continues, like we're saying, it's a market looking for a bottom but you're keeping an eye on the new guy in town? >> the position paper he'll use on capitol hill will come out, it will be published everyone wants to know how he's going to handle the rise of
inflation. what he expects to do. ultimately, the market wants to figure out, do we get three rate hikes, do we get four rate hikes? do they think the fed is behind the curve or does he think the economy can run a little hotter before he starts moving? the market wants to know and he'll be on capitol hill next week. >> by the way, peter, is this all about walmart? certainly it's bad earnings. at one point the dow was lower because of walmart now the s&p is down, too the nasdaq has tipped lower by half a percent the volatility gauge back above 20. >> markets do tend to trade in unison when investors are getting out, they're getting out in a broad spectrum of stocks s&p stocks, russell 2000 stocks. you're probably seeing a little unwinding in the etfs as well. something we saw when we first started this selloff were a lot of etfs were being unwound
quickly. >> a little preview? >> they were for sale earlier but i think that might have changed a little bit what we saw last week is everything was for sale and two minutes to the close it went to the buy side i'm not sure you'll see that today. but we did see all last week i think today we'll probably hold more true to form about what the indications are and go that way >> we'll see what happens. thank you all. good to see you. thanks we'll see you later. we have 24 minutes left in the trading session with the dow slowly coming back down just 279 points right now. >> we were 50 points worse than this just a few moments ago. again, we'll keep an eye on it the russell is down, making it the second worst performer today. how about reits, they are down 10% year-to-date barron's saying they could be flashing one of their strongest buy signalins years we'll discuss whether you should follow that cue.
well, it's earnings season once again. >>yeah. lot of tech companies are reporting today. and, how's it looking? >>i don't know. there's so many opinions out there, it's hard to make sense of it all. well, victor, do you have something for him? >>check this out. td ameritrade aggregates thousands of earnings
estimates into a single data point. that way you can keep your eyes on the big picture. >>huh. feel better? >>much better. yeah, me too. wow, you really did a number on this thing. >>sorry about that. that's alright. i got a box of 'em. thousands of opinions. one estimate. the earnings tool from td ameritrade.
still a 1% decline we were down 323 or thereabouts at the lows. >> see if the nasdaq can go back positive >> i sort of agree with peter, i'm want sure we'll get a late push this afternoon. famous last words. down 335 at the low there. i stand corrected. >> a lot has happened in the last 30 minutes. as stocks are near session lows, let's get back tole seema modi on the floor with a little more information. >> technicals are a discussion, the s&p 500 taking out 50-day moving average of 2726 traders saying 2705 is the next level to watch overall, pretty uneventful but the dow was down more than 335 points at the low. you do have a stronger dollar. that is something traders are talking about here higher yields, above 2.9% as we saw the treasury auction come to fruition a four-year high on the ten-year gold dropping about 24 points,
or 1.8%. on the s&p 500 it's those rate-sensitive sectors that pay dividends like telecoms and the worst sector is consumer staples led by walmart earnings could be the key factor we have hormel foods and wendy's reported this week laggards today, goldman, united, boeing, verizon. but the selloff started with walmart, which is down about 10% in today's trade one eye to keep a name on. >> consumer staple worst sector. seema, thank you an article in barron's this weekend caught our eye saying real estate investment trusts are sending a powerful buy signal is it time to buy the reits? >> let's ask a couple experts. robert stevenson, and todd is ceo and cio at center square, which is a real estate investment firm.
puts his money where his mouth is what did you think of that article? reits are down 10% rates are going up that makes sense but is it time to buy some of these right now? what do you think? >> as you mentioned in the lead-in, reits are down 10% year-to-date underperforming the s&p 500 by about 1200 basis points investors have basically abandoned the reit space off higher interest rates, believing you won't get the growth and you're not going to get enough oomph investmentwise to stay in the names, despite some very hefty dividend yields. so, up, if you're looking for 10, 12, 20% earnings growth in 2018, you're not going to get that out of the reits. but if you're looking at 5, 6, 7, 8%, element 10% dividend yields where the dividends are growing to make up for inflation and you have leases that adjust for inflation, reits are not a bad deal. >> why is the case -- you mentioned some more conservative
that might be first industrial, national retail, but why does citi office have an 8% dividend yield? what's the concern that any investor should be fully aware of before thinking they can collect a hefty yield like that? >> when you're talking about sub billion dollar names, you're really talking about retail focused and smaller institutional investors. those are the people that fled the reit space in masses when those guys aren't buying, it's hard to find a home for some of the smaller names that don't have the liquidity that somebody like todd may need in order to buy in size you know, that's one of the places where you're finding the most beat-up names, you know, possibly sop of the best bargains out there almost a 9% dif depd at city office with decentle valuations there. >> todd, where would -- would you put new money to work? if so, where is it sectorwise, geographic
what would you do here >> i agree with some of bob's points as well i think we are putting new money to work and have a pretty bullish outlook for the reit sector at this point in time and, you know, what's been driving investors away from reits is basically the attraction to other sectors and, you know, some of the other f.a.n.g. stocks that have been out there. where we're putting new money in in particular is really following two major themes one of which is, obviously, the technology trends that are driving the reits -- some aspects of the reit sector, and the second is demographics from a technology side, data centers, the cell tower reits are definitely growing and continuing to grow, benefiting from technology advancements and the need for data centers. secondly from a demographic perspective, millenials are starting to look for things other than just urban housing. and to that end, we've been investing in some of the single family housing reits that are out there that cater to a
to-rent model but in the suburbs. >> just to be clear on that, todd, it sounds like you actually are not a big fan of multifamily reits, then, maybe even, you know, some of the more traditional kind of mall or retail names you're talking about cell towers, you're talking about single-family reits which, again, is not what most people think of when they think about the sector, right? >> yeah. i think the multi-family space basically has been experiencing effectively urban development that it hasn't experienced in a while. we actually anticipate that some time toward the latter part of 2018 that the supply of multi-family assets in urban markets will actually begin to decline, which is actually going to set up a very, very nice '19 for both multi-family reits and for office reits as well so, the supply picture will get a lot better for reits going forward. >> bob, i was fascinated in your notes, your thoughts on traditional malls and shopping centers. we know what's going on in
retail these days. i can remember when malls were come into fashion. are we witnessing the end of an era with a lot of malls going out of business? >> you're definitely seeing a secular change, not a cyclical change it will be very important for retail to be invested in the higher quality names higher quality, top 30 malls, i think, will wind up being here, you know, 10, 15, 20 years down the road the lower end of the spectrum is where i think you ee big vacancy and tenant issues and those will be repurposed as indoor sports arenas, gold's gyms, rock climbing walls among other things out there. >> sounds fun. >> it's one of the sectors we've been staying away from and we'll let others call the various bottoms there. from our standpoint is there's not a lot of good news coming out of these spaces these days we'd rather be in things like first industrial. >> bob, you had some good picks. todd, in a word, any particular
reit you'd be recommending right now? >> we like the ones i mentioned in terms of the sectors. we don't mention specific names. on the retail space side, i would say that the m&a activity that took place in the fourth quarter is providing a significant bottom to the retail space today. >> oh, that's right. a lot of consolidation at play >>ing and. >> thank you i enjoy treasure island. 13 minutes to go and at the low, the dow was down about, 330 -- >> 335. >> we're down 265 right now. we've stabilized a little bit. it's been a fluctuating hour >> the nasdaq initially higher before losing those gains this hour when we come back, we'll look at the stocks driving those moves when we come back right after this
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balance to sell side of the $700 million. he was in the sick bed last week, but he quickly is feeling better because he said what happened here when we were down 335 is the markets were beginning to test the recent lows, but as he said, they forgot to study for the test they didn't achieve those lows >> we're back again. >> the dow down 230. the nasdaq is lower by just a point. general electric may be putting another business on the auction block. morgan brennan with the details. >> general electric declining to comment but they are reportedly looking to sell its industrial gas business, valued up you to $2 billion it's part of ge's struggling power division it comes on the heels of another potential sale to offload parts of ge's overseas lighting business to a former company exec for an undisclosed amount back in november, ceo john flannery said ge would exit at least $20 billion in assets trying to shore up its financial
investment divestitures expected to include transportation, the health care i.t. business with a longer term plan that may include exiting ge's majority stake in baker hughes and quite possibly a break up of the broader blue chip company all of this after hundreds of billions worth of divestitures in recent years, including most of ge capital. investors are expecting an update in april at the shareholders meeting. >> thank you. we mentioned semiconductors were one of the few bright spots in the market today. let's send it over to bertha coombs with more on that. >> they're pretty much holding up the nasdaq here that is what's moving higher, partly on some consolidation news with qualcomm making a bid for nxpi while it's bebe iing pursued by
broad com. apple had been a strong point earlier in the session but it has faded here as we head towards the close. you can see it's just dipping into the red that's what's pulling down the nasdaq composite into the red. a lot of other f.a.n.g. names today are moving higher. you have amazon higher also take a look at applied materials nvidia, the names moving higher. nvidia again today with an all-time high. we're starting to see some recovery in tech holding on, particularly when it comes to the chips, but this afternoon we're just seeing that pressure coming from the pleau chips dragging down the nasdaq as well >> the journal a couple days back had a story, i didn't appreciate the shortage of graphics cards, whether it's for bitcoins or to play video games, it got so acute, i don't know if it's let up, but they had that blowout earnings reports even after all the gains we've seen
and the chip space has continued to be a strong performer. >> we'll come back the dow down 249 points. we have the closing countdown momentarily. after the bell, barron's favors for stocks for the bull market there's a little preview of what they are. keep it right here you're watching cnbc first in business worldwide. the weekend thing. atcr that back from the dead or robot-cowboy thing. or maybe it's watching satisfyingly-satisfying things. organic avocado on everything thing. doing it yourself or tagging a friend thing. more checking-in or checking out things. like faaaaaaaaaar out of this world things. far out. more revolutions in the making thing. that play like a girl thing. is it a '4 your eyez only,' thing. more of a 'no role modelz' thing. that triple-double thing. "is he the g.o.a.t.? thing." no, not that goat thing. no no no no no no no more saving the world from the darkness thing.
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coming up on the lasts through minutes of trade, with the dow down 342 points, almost 100 points off the low of the session. this morning we thought we had it all figured out the dow was lower 200 points in large part because of walmart, which spent much of the day down 9% after those earnings out this morning, which disappointed in various capacities, as courtney reagan told you the online sales only being up 23%. then the selloff accelerated and it was more than about walmart the nasdaq was higher mainly because of the chip stocks, which bertha coombs was talking to us about. the two-year note hit a ten-year high that we've seen since 2008 and they had a two-year auction
today of treasury notes. it was lackluster, interestingly enough clearly, somebody thinks rates are going higher they didn't want to bid at 225 we're just off those highs for the day. dollar up 89.70, about 0.7 cents higher even though the dollar was higher, so was oil that continued on almost to $62 a barrel here today. we're at $61.90 right now -- or now $61.77 so, very interesting day we come back from this long holiday and they act like it's the day before. >> started quiet, ended with a bang we were down as much as 335 points we've come off the low but as we focus on consumer staples are the dow transport index quietly moving lower not in correction territory but
getting close to that. names like kansas city, union pacific, among these industrial larger cap names that we've been focusing at a lot. >> earnings, those that came out, home depot was pretty good. that was positive for much of the day, but walmart numbers didn't settle because it's come down between walmart and amazon, where walmart competes with amaz amazon, they weren't as strong as anticipated. >> walmart had a great run in 2017 it was up 40% on this digital strategy will be able to counter effect the amazon. today's results suggesting that may not be the case. specifically the weakness in online commerce. that, of course, a big part of the story, big decline in walmart. its worst day since 2015 that day in 2015 when it fell 10% is when it failed that restructuring plan, quite a big concern. other consumer names selling off as well. >> that's for sure thanks, seema. so, we're finishing down 259 points, but -- and we did see a
bit of a comeback. the dow had been down 335 at the close. now what we'll talk about that coming up on the second hour of the "closing bell" with kelly evans and company. see you tomorrow, kel. >> thank you, bill we'll see you on "nightly business report. welcome to the "closing bell." i'm kelly evans. a down day on wall street. looked worse half an hour ago than at the bell a 1% decline the big decliner was nasdaq. the nasdaq went negative by 0.07 and the russell 2000s down nearly 1%, shedding 13 points
today down to 1530 the volatility gauge was back above 20 transports are above 162 we'll talk more about the dynamics of this market. joining me on the panel we have cnbc contributor dennis berman. >> thanks, kelly heads up, you got to be paying attention. for a while there we were -- >> it's up with of those things people say, i'll buy it if the vix is under 20. i'll buy it when it's over mary is cfa and portfolio manager from gradient investors. today the biggest winner was intel. the chip stocks part of the market intel was up 1.5%. the biggest loser, walmart down 10% on the close the s&p, noble energy was the big winner walmart over there was the big loser. this is surprising we'll circle back to walmart in just a second. what do you think is significant in the moves in volatility >> it suggests there are some outstanding questions about this
market up until tax reform, we were -- the investment community, us in the media, we're just counting the money. what's your tax rate before and after before the tax reform comes in even though we had cpi and ppi in recent days and we've seen some of the earnings, they're pretty good. there are significant questions that hang over the market. like where are rates going can the economy go above the inflationary cycle and what is -- you heard me say this last time, what is jerry powell and what does he want? >> what does the new fed chair think and what is he looking for. by the way, we had some pros weighing in on the markets today as well. the 2018 outlook looking bright, according to blackrock and goldman. blackrock says it's overweight u.s. stocks on expectations, to your point, that stimulus from tax reform will cause earnings growth to soar goldman saying it expects tax reform to bust earnings. energy and financials expected to lead the way there.
preview of what's to come later this year. says things can become trickier with the market needing to take in rising inflation and possible earnings revision. mary ann, where do you shake out on all this? >> that's a lot of input but i think where we believe earnings are rising. they've been rising with the earnings reports because of tax reform but we think when you get to the fundamentals in terms of revenues being beneficiaries of rising wages, rising employment, better consumer spending, we're going to see more increases in those earnings estimates as the year progresses. >> so, you're bullish on stocks. you think investors who have looked and said, has something changed about this market, is this going to go nowhere for a couple of years, what would you tell them? >> we would tell them we think
the interest rate fears of rising rates are overplayed, even with this 2.95 today with the auctions we think rates will probably come down before they go up further in all likelihood. and there is a lot of opportunities here, including the utilities, which are still down like 4% year to date. they weren't really great performers last year >> you guys would hang onto the utilities here >> we would, we would. i don't think the rate increases people expect are going to occur from the fed you know, we're talking about now four and we're closer to two. >> the ten-year was around 2.9 we see the spread between the 2 and 10 compact in ways it hasn't been in a long time. i don't know i think it's a tough call to go heavy on utilities right now
when the rate picture seems to be at least moving in one direction. >> the only thing i'll say, it is contrarian. when everybody agrees on the way things are going, it's uncomfortable to bet against it, but it's usually right. >> we waited like seven years for rates to rise. i would look a little differently, and that's to producttivity. this gets to the walmart question. >> let's do that i'll bring people up to speed. it seems like the amazon effect is alive and well. wal march shares were down 10% after reporting a miss after the bell online sales were just 23% walmart down 3% while amazon is up more than 26%, which is unbelievable the amazon effect also causin l albe albertson's buying remaining drugstore locations.
rite-aid is up 10% year to date. >> here's the optimistic case. the optimistic case is we are truly seeing amazon drive tough but necessary changes across industries whether it be pharma distribution, whether across media, qul it be across retail itself companies have to get smarter and so walmart is probably -- making those changes right now, at least in theory we've not seen the number for many years >> i like it i would agree, we've talked about this yes, there's a number of times when the coverage is phrased as amazon is going after everybody, you can't escape them. but maybe they're going to prod some industries into big changes for the economy. what do you think? >> i don't know that i -- it's a great for our economy in terms
of more employment but i will say that -- unless and until people kick back against the environmental impact of all the shipping that amazon does, we'll be buyers of international paper. if you can't beat them, join them they'll be one of the beneficiaries of all the extra shipping materials and 10% kind of pretax profit grower paying about 3.2% dividend yield there's a great way to participate. >> i love that it's like i'm going to sidestep the big question and - >> buy cardboard. >> no. amazon is going to keep going strong here's a different way to play it what do you think about their performance this year? the fact it's up so much the multiple that's always been the story. do you believe they can be owned on a cash flow basis or would you still not feel comfortable, amazon, i mean >> i'm not still comfortable because they can always reinvest a major part of that cash flow
and it's just an entity unto itself. >> i mean, as it comes to walmart, has there ever been a 10% drop in the last five to ten years? >> biggest drop since 2013, something like that for walmart. >> this has a beta of 1.9. >> can we talk about its beta? >> well, is that not relevant? >> i will say that's impressive it's almost zero. >> almost zero so, walmart moves as the market moves but this is not the case today. so, it feels like a certain moment in time when, perhaps, there's a reckoning. again, the argument is that it's a positive reckoning that industries, including shipping because, obviously, amazon has announced it wants to go after u.p.s. and -- or u.p.s. and fedex as well. those industry it is might have efficiencies they've been lacking. >> worst day in 2 1/2 years for walmart. that's when we're down 9% it's not unheard of to drop 10%.
i'm sure volatility has gone up whenever amazon has approached their turf of the stock market over the last few months but they're getting dragged down by that >> that's a great point. that was another -- again, the worst performing sector today on what turned out to be a pretty negative day - >> walmart putting $10 million into cap x. >> that's a great number if it prods them into being more -- improving, giving the customer what they want. low productivity is the worst problem in our economy for years now. if amazon can solve that, they'll be a hero. >> when you're in line at the walmart and there's one person for 50 aisles, maybe they can do it a better way. >> love my local walmart
thank you very much. we have a news alert from the white house. eamon javers, what's happening >> that's right. a new policy proet posal from prosecute rt in the wake of that horrific school shooting in florida last week. the president speaking at the white house at an unrelated event said he signed a directive ordering attorney general jeff sessions to consider regulations banning bump stocks and other devices that turn semi-automatic weapons into fully automatic machine guns now, that is a proet posal that first came to the surface of the political debase after the las vegas shooting last year the president going back to that proposal saying that's something he proposes. sarah huckabee sanders a few moments ago declining to say what other specific americans the president might embrace in the wake of that school shooting she was asked specifically what the president's position was on the assault weapons ban, which is a position he supported back in 2000. she declined to answer whether
he still supports an assault weapons ban. involving series of policy proposals in the wake of the shooting in florida, so closet where the president spent the weekend at mar-a-lago over the weekend. >> the action wouldn't come from the executive branch, it would be legislative >> no, a presidential memorandum to direct the attorney general to craft regulations from the department of justice. it would be coming from administration unclear to me at first blush here how deep those regulations can go, if they're only coming from the department of justice we'll have to wait for some legal experts to give us guidance this would be the attorney general himself creating some of these regulations. we'll see if congress follows suit and follows up on a legislative proposal as well. >> that is interesting thank you. eamon javers at the white house. a lot more still to come on the "closing bell. >> announcer: a new gasoline tax is working its way through congress just wait until you see the predicted impact on american families
plus, the four stocks barron's says are likely to jump we're debating them one by one this is the "closing bell" on bcitkey ancn wh llevs. people don't invest in stocks and bonds. they don't invest in alternatives or municipal strategies. what people really invest in is what they hope to get out of life. but helping them get there
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welcome back a new report revealing how much more consumers would pay in each state if the propose the gas tax was implemented. >> kelly, those numbers are kind of painful here. this report is based on what would happen if the gas tax went up by 25 cents new york's on the low end. house holds would pay about $186 more each year new jersey, though, they'd pay an extra $317. the highest is mississippi at $390 now, this analysis comes from freedom partners they're a conservative organization backed by the koch brothers and it's helping lead the charge against raising the gas tax in washington. full disclosure on that. more than 30 groups have sent a letter to congress calling any hike a bad idea, especially coming on the heels of
republicans' sweep tax cuts. one estimated raising the gas tax by 25 cents would wipe out 60% of the benefit of the of the new law for individuals. gop leadership is not a fan of this plan, but president trump is reportedly open to the idea, come back to it over and over again during a meeting with lawmakers on how to pay for infrastructure the chamber of commerce is also behind it, along with the republican chairman of the house transportation committee so, to be clear, we are talking about the federal gas tax here, which is currently 18.4 cents. it hasn't been raised since 1993 during that time, 39 states have increased their gas tax, seven states last year did so, five more states are introducing hikes this year. so, bottom line, kelly, no matter what happens here in washington, you could still wind up paying higher taxes when you fill up your tank. back over to you. >> oh, joy could you put the chart of the states itself -- i was distra
distracted by cookies. i want to know, where is new jersey on there? >> cookies are much better than taxes. new jersey is one of the higher states with $317 estimated more households would pay per year in taxes. it really is a way for republicans to try to pay for this big infrastructure bill without having to run up big deficits, which they had been opposed to for so long if you just pass tax cuts, why are you raising taxes on consumers. they're between a rock and a hard place here. >> why was mississippi so high >> so, part of it is also looking at how far people -- how much people drive and also if they're in more rural areas, they may have longer ways to drive before they get to their location, so that could be part of it as well. >> i feel that's -- i'm not sure they could handle it economywise
down there that's a big deal. thank you. >> sure thing. we'll see if the gas tax does go anywhere washington has not taken any steps towards tightening gun laws in the wake of florida's deadly shooting, but eamon told us the president might be doing something on bump stocks now should banks and credit card companies take the lead by restricting gun purchases themselves we'll talk about that next. russian twitter bots are tking their return in the wake ofhe florida shooting. we have the latest details we got a yes! what does that mean for purchasing? purchase. let's do this. got it. book the flights! hai! si! si! ya! ya! ya! what does that mean for us? we can get stuff. what's it mean for shipping? ship the goods. you're a go! you got the green light. that means go! oh, yeah. start saying yes to your company's best ideas. we're gonna hit our launch date! (scream) thank you! goodbye! we help all types of businesses with money, tools and know-how to get business done. american express open. to get business done.
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welcome back it's time for our news update with courtney reagan. >> alex vander zwaan pleading guilty to lying. he could face two years and pay up to $250,000 as a fine lawmaker says allowing teachers to carry firearms would prevent an attack like happened in parkland. those teachers would require getting certified and training. >> i think it's a common sense solution to a bad problem that unfortunately we have to face. it shouldn't be like this. kids should go to school and shouldn't worry about things like this, but times have changed. the ncaa denying an infractions appeal by the university of louisville
its basketball program will have to vacate its 2013 national championships as well as wins between the 2011 and 2015 academic years it will also have to return the ncaa money it received for appearances in those seasons that's the cnbc news update at this hour. back over to you >> thank you courtney reagan. we have an earnings alert on lending club jackie has those reports. >> take a look at shares of lending club after hours, down 10%. fourth quarter and full year 2017 results a miss on the top line, a miss on the bottom line as well. expecting 2 cents, we got 1 cents in earning what's most interesting is it discloses a settlement regarding a class-action lawsuit that investors were curious about it's $125 million agreement, $47.75 million will be covered by lending club's insurance. the rest reflected in the company's fourth quarter net loss and will be paid from liquid assets of approximately
$650 million held december 31st of 2017. so, that's what people were watching for in this earnings release. the company taking a big hit here as a result of that back over to you. >> lendingclub down 5% under 4 bucks. the aftermath of the shooting in parkland, florida, has ignit guesignited the fightn control again. should banks step in and control gun sales? jo joining me is steve audland. thank you for joining me today. >> good to be here. >> andrew in his column says -- he singles out jpmorgan, visa and others and says, these banks won't let you use your credit card to buy bitcoin but will let you buy an ar-15 semi-automatic rifle. does he have a point that corporate america should be putting the pressure on each
other, frankly, to get this done >> well, you know, kudos to andrew for raising this issue and trying to be creative about an issue that's tearing at our nation we've had the series of mass shootings in schools that nobody is happy with. you know, you heard the president a little while ago talk about bump stocks what andrew has proposed is maybe the financial sector could get involved and stop all sales of these ar-15 weapons the problem with that is, where do you draw the line how do you do that when you have a second amendment right that says americans can bear arms and that right should not be infridged upon it really is a court issue maybe it's a constitutional amendment issue. his point also is ceos can get involved and the business community can get involved that's a very good point we think that ceos should talk about these issues and maybe not take sides and say, i'm pro-gun control or anti-gun control, but a ceo and business leaders can raise their hand and say, this an issue that's tearing at our
society. it needs to be addressed and the politicians need to address it >> the let me -- for example, he singles out jamie dimon. he talks about he and his bank have a moral obligation and deeply vested interest in helping solve pressing societal issues he says, here's your chance, mr. dimon. it's going to be, let's see you walk the walk then what should their appropriate response be? >> it's a difficult challenge for ceos to take political and social positions when you have a multiconstituency situation customers, employees, owners, communities, all are split on these issues any time a ceo takes this point of view, they tend to alienate with certain community the problem with that is that they are important to the political process. they have to stand up and they have to bring the issue to the table and they have to force politicians to deal with the issues this is where the business
community can play a nonpartisan constructive role in bringing people together from both sides. you see it start to happen on this particular issue. you don't have to as a ceo take a specific position but you can say, it's important that we resolve these issues for our communities, for our employees, for our customers. >> they can say that but if you have a significant amount of customers putting pressure on you to say, let's do something, how long can they withstand that pressure i wonder about the polarization of a lot of these companies who are caught in the middle of these major issues on the one hand they might have a -- they could have half of their base that says i'm going to boycott you if you don't do this and the other half that says, i'm going to boycott you if you do? >> that's the exact right point. this is what ceos face every significantle day. this is why you've got to be really careful on these social positions. this is why you can take it from a policy perspective and you can bring people to the table and
you don't take a specific position but you can say, this is an issue that needs to be addressed, bring both sides together this is the convening role that ceos and other business leaders can play that's what we think should happen 37. >> steve, do you think companies have invited this pressure by making the kind of statements they've made where they talk about a moral obligation but a deeply vested interest to press societal challenges. if they say that's the role of their for-profit business, then don't they have to actually carry out what that means and what that means could shift as the years and generations pass >> i think you're right. if you come out and you say, it is the role of my company to take on these social issues, well, you put yourself front and center on it when you do that, you risk alienating half of your employees, half of your customers, half of your owners and it puts the company in a very difficult position. our point of view -- >> not to mention -- yeah, i was going to say, we know one of the
biggest trends in investing is the rise of these social responsibility type funds. we see pension funds being pressured to divest from tobacco funds, alcohol, you name it. they say the millenials are one of the biggest drivers are behind this social investing if the narrative is becoming, i should only invest in companies -- i should only invest, period, in companies that take this responsibility seriously and they need to do something about this, how can -- how can we walk back from that edge >> it's difficult. that's why i don't think, and i was a ceo of three different companies. i face this every single day the only way i could come at it is to say, look, i'm not going to take a social position. i'm want going to take a political position i have my own political positions but i'm not going to indulge myself in taking that. what i'm going to do is to say, this is an issue that's important and i'm going to try to convene people, bring them together and try to drive for a bipartisan solution. i think that should be the role of business leaders. >> finally on this specific
issue which itself has become politicized, 7 in 10 republicans and independents supported banning assault weapons in '99 this is a washington post poll less than half of independents support that now less than a third of republicans support that now unfortunately, it's become more polarized over the years on the specific issue of banning assault weapons, is that something you think banks the financial system here could effectively do, including walmart, including lloyd's of london, other companies singled out in this article? >> well, walmart has already discontinued sale of it. the problem is -- if let's say all businesses say we're not going to sell the ar-15 anymore. it's been sold since 1963. there are over 5 million reported to be in this country alone. so, where does it stop that's not going to solve that issue. if you solve all the future issues, all you do is drive the sales of those things to the dark web using cryptocurrencies and drive it to the criminal class. it doesn't solve the issue it requires a political
solution it requires a constitutional solution and that's why i think, andrew's point is so valid, that business leaders need to get involved and drive that point home and convene these issues and get politicians to address the issue in a broad basis >> we did see a little movement on this out of the white house this afternoon perhaps that can start to work steve, thanks for joining us. >> thank you >> that's steve. last week's mass shooting reviving concerns about social media. "the new york times" also reporting today that within an hour of that tragedy, twitter accounts suspected of ties to russia taken up the gun control debate adding heat to an already divisive issue and calling into question the various platforms joining me from austin, texas, jonathan morgan, ceo of new knowledge, a company that tracks online disinformation campaigns. jonathan, thank you for joining us what exactly happened on these platforms after that shooting? >> well, what we saw immediately
after the shooting occurred, immediately after the news broke is that hundreds of accounts turned their focus almost on a dime to amplify -- to amplify the events of the shooting at first they were focused on breaking news but quickly their conversation turned to focus on very extreme rhetoric around kind of pro gun extreme rhetoric and spreading conspiracy theories planting the idea the information the public was receiving wasn't legitimate. this is a common tactic among troll networks, to push extreme and also kind of undermine our belief in this -- the information we see undermine our belief in the media that gives us the information in the aftermath of tragedies. >> both in the case of the election, and i believe in the case of the shooting, they came out and pushed extreme positions on both sides, is that right >> we did see activity on both
sides. we monitor accounts that are pushing extreme -- in this case, extreme pro-gun messages and accounts that were amplifying in an automated way, hashtags focused on gun control it's hard to say exactly who's hyped all of the consent we see now. what we can say is there are multiple networks of account manipulating the conversation and playing both sides. >> if i were a company, thinking back to our previous discussion and there's a hashtag going around that says, i need to do something, you know, my customers are going to boycott me, do i know that's coming from actual customers how do i know if that's not just something started by russian bots >> it's incredibly difficult to know and i think that's why ceos of companies, i think that's why political pundits, i think that's why the media is in a very difficult position. because we've become accustomed to assuming the conversation that happens on social media represents the consensus of the population and i think what we're finding is that now that it's possible to manufacture a crowd, it might seem as if your customers or
employees or your constituents or your viewers are -- believe something about a certain topics they're clamoring for answers -- or clamoring for you to take a particular action. and i think what's made clear again and again, news cycle after news cycle, is that that conversation can be manipulated. it's difficult to trust the information you see on social media. >> it puts ceos in a difficult spot, and the media coverage -- i like your phrase they're manufacturing crowds unfortunately, that's going to make it harder for all of us to tell what's genuine. thank you. this is how we finished the day on wall street lows we were down 335 in the last hour. the nasdaq almost stayed positive butit was down 5. the russell dropped 13 walmart after its earnings this morning was the biggest decliner in the dow today speaking of earnings, how about an earnings from boyd gaming jackie back with those details.
>> another miss on the top and bottom line here for boyd gaming eps of 22 cents adjusted the market was expecting a 27 cent estimate. the stock down after hearing this and they gave us more clarity on revenue strength and weakness downtown, midwest and south slightly above expectations. back over to you >> thank you, jackie boyd down 7% lendingclub down 9% after its results. the s&p is up nearly 300% since the market bottom in march 2009. barron's says there are four stocks in this aging bull market that still have plenty of room 'lteally wel ll you what those names are and get the "fast money" trade on them when we come right back creating the world's first state-of-the-art drone testing facility in central new york and the mohawk valley, which marks the start of our nation's first 50-mile unmanned flight corridor. and allows us to attract the world's top drone talent.
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good morning futures pointing to a sharply lower open on wall street as investors return to work from the long weekend. >> walmart down sharply this morning as earnings miss and revenue and comps beat forecasts. >> this is a great place to be for it is long term. we like walmart. we would use an opportunity to buy the stock if it declines more than 5% >> home depot just out with fourth quarter results beating expectations and issuing an update forecast. raising the company's dividend.
>> take a look at bitcoin futures, up 14%. best day since their launch back in december. >> marvel's "black panther" shocking records as well as diversity in casting disney just reported black panther had the biggest monday box office of all time. >> it's been a volatile session on wall street the dow was down 230 points earlier. >> i think the market hasn't really had to handle and struggle with that tradeoff between rising inflation and potentially weakening growth indicators for a long time the fact it's been a long time, i think, increases the risk. >> dow dropping more than 250 points to go back below 25,000 that's a 1% decline. >> real quickly on walmart, i mentioned it was the biggest decline with a 10 mrs drop actually, it's the third biggest percentage drop ever today the biggest drop since january of 1988. someone tell berman if they see him. nine years into this bull market, which stocks still have upside potential, financials,
industrials and tech, according to a report from barron's this weekend. the newspaper's stop pick are alphabet, lam research, citi and cummins. we have tim seymour here for some reaction. >> hello. >> what do you think about this group of names >> the industrials, these are names that have not only participated but led this last rally. think of a boeing. in many reasons the reason they led the rally is because of their identified cyclicality and boeing, it's all about free cash flow. >> what about cummins, which is their pick of the sector >> i think it's very interesting especially when you want exposure to ev engines and guys part of that process to me one of the best automative engineering companies out there, a company that's been through many cycles before, a company at times which has been thrown out with the bath water in the last couple of years but trading well. >> we've talked about alphabet, and lam. what about citigroup being one of the four names to ride out an
aging bull >> because the financials at least have a valuation that are tolerable here, if not in many cases exciting they're financials that also probably in the next 12 months are going to be giving capital back raising their dividends, payout ratios will increase obviously, they are tied to interest rates and make no mistake, i mean, i think the things we're focused on this week include what's going on with treasury refunding, you've gotted if minutes coming out on wednesday, which will tell us what we were all so supposedly scared about the last couple of weeks. financials, we made such a big deal about the flattening of the yield curve, i think people have also overdone that in terms of how profitable the financials can be. >> those are their picks what would your picks be for riding out, if you agree with them, that this is sort of an aging bull cycle >> home depot gave me what i needed to know i think relative to their peer space in the hard line retail, i think these guys don't have the competitive threats that a target and walmart have. i think they have a tail wind of
millenials starting to get into homeownership. it's a valuation rich relative to itself. in this environment, they're actually growing their margins and top line as high as they ever have. i think financials look very interesting. i have to say, at 24 bucks a share of free cash flow in 2019, boeing still will be defensive in this environment. and some of the best guys on the street -- >> this is some of the best performing name of the last -- >> and i have to say that they're the one that at least seems to be the most tethered to this cycle let's give them some credit. >> home depot and boeing, we'll check back in with you thank you. a new cnbc survey showing business optimism is still going strong those results and what's driving it, next the czech republic and u.s. in the hockey quarterfinal tonight at 10:00 first, the dos and don'ts of goaltending on the ice i didn't know he was a hockey guy. that's coming up
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nearly half of small businesses said they felttax reform would be a positive for their businesses while 23% here said they felt it would be a negative but despite having extra cash on hand, this was nteresting, whe asked what they do with the windfall last quarter, only 10% of small business owners said they would spend it on raising wages. this is interesting given support for higher wages we also polled small business owners and 37% said they want small businesses to raise wages. even though businesses are feeling more optimistic, they're not planning on hiring en masse. 32% said they expect to hire in the next 12 months back to you. >> it's not the highest number in the kate rogers. jeremy bloom is now the ceo of an enterprise software company. he joins us next to help preview what could be lindsey vonn's last olympic hoorah. cnbc is the home for curling. american men face off against
the swiss at 5:00. first, a quick lesson in the sport from the plainfield, new jersey, curling club. >> hi. in order for a curling stone to turn, it needs to have rotation or a handle. what i'm going to show you today, the two handles an in-turn which goes from 10 to 12 or an out-turn, which rotates backwards from 2 to 10 that's how a rock turns going down the ice ♪
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u.s. men take on switzerland can they eke out a win tune in to find out. our next guest is olympic skier, jeremy bloom, world gold medalist and also drafted by philadelphia eagles and now the ceo of enterprise software company called integrate jeremy, can i be you >> super bowl champ philadelphia eagles, how about that, huh? what a game. >> congratulations so, do i understand the nfl is how you got into business school and then marketing and all this? >> it absolutely is. the nfl has a great program where you can take mba-related classes. i went to wharton. it was in my backyard in philadelphia and that was the bridge that got me from professional athletics into business. >> so, what's it like in business now i mean, we had a guest -- ice skater, gold medalist who said for him the highs are not the same as they were, obviously, when you win a gold or have that kind of peak career moment what's the business experience been like for you? >> i love it
i love it. the stakes are really high as a ceo. you know, when you start to raise venture capital dollars and we've raised over $40 million with tier one vcs. you start building products for large customers like microsoft, dell and hp and products for microsoft del and hp and sis khouw -- the stakes are high i love that pressure, and i love the challenge of building a great team and building a culture and hiring talented people so i'm really enjoying it. >> what's your biggest money mistake, either personal or business, that comes to mind along the way? >> the biggest what? i'm sorry. >> what's your biggest money mistake? it is a question we like to ask around here. >> i think the biggest mistake that i made is i was too slow to hire a cfo, a good cfo with operational finance experience probably sat around with a controller too long. but when you are growing really quickly, it masks a lot of corners that you are not sweeping so when i start my second
company i'll make sure that there is a really good finance person in place. >> finance people love you right now. what about on the personal side? i mean the money that you made along the way when you were younger and managing that. any mistakes for these young athletes that you would pass along? >> i'll tell you what they taught us at wharton they said never invest in a restaurant or a nightclub, which is the two biggest reasons why athletes lose money it seems like >> and did you or did you listen to that? >> i listened to that, thankfully and i think the biggest blind spot for professional athletes, whether it is the nfl or nba or major league baseball or the olympics is you are used to just making things work you are used to having success and so you enter the business world with the same mentality. but it's a totally different game and i think kind of recalibrating your compass of success and getting some pattern recognition and surrounding your with talented people, those are all pieces of advice that i give
fellow athletes. >> lindsey vonn, man arc lot of pressure on her. i guess tonight it is a at the downhill alpine -- you know more about skiing than i do a lot of pressure on her what is your advice to her right now. >> relax she has a tremendous amount of pressure on here, a big spotlight. she is dedicating this to her late grandfather who was important to her i spoke with her before she went over to the games. she is relaxed and at peace with what's going on. but i know from being in the starting gate with a big spotlight how much pressure there is this will be her last olympics i'm really excited to cheer her on and i wish her the best. >> do you think the u.s. has been a disappointment that we have fallen out of top five for medal contention in the games this year? what are your thoughts for how this olympics is going for us? >> i think it's been a really entertaining olympics. performances like shaun white, and the snowboarder that came
out of nowhere to win slopestyle i think there has been a lot of drama. norway is dominating the medal count. good for them. but that's what the olympics is all about, about countries all over the world coming together for a common cause a common purpose to compete on the world's biggest stage. we have work to do we will have increased goals for tokyo and beijing in four years. >> true. we will be super motivated jeremy thank you for joining us. >> my pleasure. let's get alook at the bes performing dow stocks today. the gold goes to intel man we needed it in a down market 1.6% microsoft took the silver and american express got the bronze. it was a rough week for walmart. chemi tries his hand at being a goalie next. >> i'm maame biney
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keeping their semifinal hoepts alive by beating china 10-4. you have next on cnbc the u.s. men's team takes on switzerland. in hockey, the u.s. women's team turning in a victory against finland. landing a spot this the gold medallist game against canada later this week. tonight at 10:00 the u.s. men's team takes on the czech republic after beating slovakia yesterday. the winner goes to the final four we wanted to see, how hard is it to be an olympic gallon wee. we sent our intrepid chemi, who had never even strapped on a pair of skates to the risk for a lesson. >> i have never done this before i don't know how to skate. we are going to see what happens here high pressure me out the helmet will be good in case i fall flat on my face ♪
i look great do i just go what do i do is someone going to help me? woo! oh oh i'm going to fall down what do i do did he score i'm scared of the ice, but it should be okay yeah >> what's up, coach? we have got one of our best players coming seem if you can stop him >> okay, thanks, coach oh ♪ >> oh, this is harder than it looks. oh, my gosh. that's it. this was a lot harder than it looked like. i have got to thank tosh helm,
he was the goalie coach in that segment. >> did you let that kid score? >> no, i did not let that kid score. he scored on me because i wasn't quick enough. >> you had never skated. >> they said we want to get you doing hockey and i said i can't skate. they said you can be the goalie. i think you need to skate better because of all the acrobatics and all the gear. >> it looks very uncomfortable. >> it was pretty uncomfortable it feels like you want to fall forward. it gave me appreciation for what the goalies have to do i don't think they get enough credit it looks like they are standing there but they are so much heavier -- i was completely soaked, completely sweaty by the end of that. completely drenched. >> the equipment is heavy. >> yeah, that's where it feels like you are about to all the
down. >> you caught with it the glove. that looked easier. >> it's better to stop with it the glove. tosh helm. if you ever see him in new jersey he is a good goalie. tingll the olympic curli acon right here on cnbc begins now. day 11 of the pyeongchang olympic winter games and hello again, curl crew welcome to yet another day of curling action on cnbc