tv Closing Bell CNBC May 4, 2018 3:00pm-5:00pm EDT
stocks up earlier last time we checked our magic wall there, led by apple on the strength of warren buffet's investment in the company. >> up 367 points from yesterday's low on the dow think of today's gains in the context of yesterday's reversals. thank you for watching "power lunch", and "cloeting bell" starts right now i'm wilfred frost from the floor of the stock exchange, bulls taking control, and stocks soaring in the friday session. >> reporter: we're at stanford university talking to top fed officials. hitting an 18-year low, why are wages slow to follow >> i'm julia in los angeles, major changes considered at facebook which could give you the option of paying to use a new version of the social network. >> i'm brian sullivan in dallas and tens of thousands of gun owners are gathered for the biggest meeting ever a new way to cut the cost of the next vacation or business trip and another stock moving
report from "60 minutes," i'm kelly evans, and the closing bell starts right now. welcome to the "closing bell," everybody, on this friday, all those stories in a moment, but a check of the markets in the final hour of trade. dow swinging 800 points since yesterday's low, up 368 now, 1.5% >> dow and s&p flat for the week now, which you didn't expect a couple days ago. let's get to the markets, and bob pisani is on the floor for us bob? >> a perfect jobs report for the bulls. we talked about that they needed goldilocks, and they got it, job growth, not too hot or too cold, and wage growth, again, not too hot or too cold, and you see the reaction of the markets overall. they bought beat up sectors. sectors with the toughest time in the couple weeks moving up. this started middle of the day yesterday, semiconductors, we
talked about that, teradyne up 1.5% today caterpillar earnings commentary, a few weeks ago, they are leading, 3m's up and united technology moving as well. consumer staples, all that day after day, 52-week multiyear lows in consumer staples, turning around middle of the day yesterday, too, and procter & gamble another good example moving to the upside material stocks had a rough couple weeks, and they, too, are recovering again, people are paying attention, buying the beaten up sectors. there's dow, dupont, and dow component up%. still, there's been a lot of damage done, and tyler's absolutely right he said, we're basically flat for the week on the s&p 500, but we've been in what i call that descending triangle for a long time, a tough situation to be in we have to break out, and the bulls have to show there is global growth occurring, and growth in the united states, and it was a good start here today with the jobs report
finally, that crux of the bull-bear debate, i want to emphasize strongly now, we have to show global growth is not slowing, got to show inflation, not getting out of control, and that jobs report today, i think, a big help back to you. >> all right, bob, we'll see you in a bit, bob pisani nasdaq trading higher for the week, up there with the russell of the major four, and bertha, what's going on up there >> a little may the 4th be with you talking about the stocks warren buffet telling our becky quick this morning he's added 75 million shares to the apple stake pushing apple to historic highs today, which is really providing a halo effect in big cap tech chips up 2.5%, sector moving higher on strong volume, and all the fang names turning positive this afternoon going along for the ride apple extending post earnings gains this week, snapping a two-week losing streak, and, really, contributing to all the nasdaq 100 gains this week in
terms of point impact, but this is what you don't see very often. apple is actually the best percentage gainer as well, on pace to have its best weekly gain percentage wise since 2011. among the other gain ers today, activision, and heinz, and buffet holding, and also here, nasdaq saw six ipos, the most in one day since 2010 the biggest gainer, carbon black, up about 27% after having priced well above the range at $19 a share. wilf >> thank you very much for that. joining us right now to discuss further is new york stock exchange trader, art cashin, director of ubs financial services, art, good afternoon. >> good afternoon. >> thank you for joining us. how big is the 800-point broader market turn around since 11:00
a.m. yesterday staring declines in the face, and now back to flat >> you were staring more than declines in the face when you broke the 200-day moving average, there was a trap selloff, paused, rallied, and started to roll over, traders held their breath, they did not make a lower low that's what started the rally. had we made a lower low, i think you'd be about 1,000 points below where we are right now so the game's not over we'll keep testing this is like someone with a minor heart attack, and they want to know how strong do i feel can i thmake it to the end of t block or more than that. the market basically is taking its own pulse and own temperature, testing these levels to see where they want to go apple is a major part of the story today, and in fact, warren buffet doubled down on it, having one of its best days, and the dow, for example, is a price weight, the higher price movement in the stock, the more
impact it has, and that's been a big, big help. >> we'll hear more over the weekend and monday and reassures investors to invest in stocks for the long term, and i wonder if there's a buffet lift effect into the weekend >> anticipatory as they will feel -- for a long time, he stayed away from the teches. i don't buy anything i don't understand, blah, blah, blah, and for him to double down on apple, that's more of an all-clear signal than anyone's seen i think you're right i think some of this is anticipatory next week, we'll get back to the geopolitics, earnings wind down, and see where we go from there >> art, great stuff. have a lovely weekend. >> you too >> joining us here at post nine. we go to the broader economy and the fed, steve leisman is at hoover institution joined by robert kaplan. steve, over to you >> reporter: thank you very much president kaplan, thank you for joining us >> thank you very much, steve. >> the jobs report, a puzzle,
wages up .1% and unemployment rate hits a low we have not seen since the threes why aren't wages rising? >> careful not to react to one-month data look over three to six months, you see wage pressure. this month did not show it, but showed every other element of tightening in the numbers, but not in wage pressure, but i think it will. this may be just a one month aberration everything i see tells me there's more wage pressure out there. >> reporter: the rate fell, is there slack out there or not >> everything i saw here tells me there's a little less slack u6, unemploymented plus discouraged workers, those working part-time is now below the pre-recession low. that dipped down, unemployment rate dipped down, participation, and our own work at the dallas fed suggests participation is going to dip below down to 61% over the next ten years because of ageing.
you can't get away from demographics so i think this labor force is getting tighter. >> what's that say about whether or not the fed needs to be tighter? >> for me, i think that the fed should continue to gradually remove accommodation, certainly, until we get to inflation, and until we get to neutral, and, for me, neutral is somewhere between 2.5 or 2.75, that's my best estimate of neutral from there, i'm unsure >> close to neutral right now, like a year and a half away from it >> we think that the next couple moves are clearer, 175, we get in the mid 2s, the going gets tougher and have to be careful and here's why outgrowth because of demographics, slow productivity, high levels of debt to gdp, it moderates to 1.75. >> does the fed need to go restrictive or tighten to keep
the slowing of the economy is that the next step after neutral. >> not red drink to make that judgment yesterday the srp projections suggest yes, but i think that's a judgment i'd rather make over the next year, and it's going to take intoing t into account a lot of factors including the 10-year treasury >> you're a former guy of the business, what if a flatter yield curve tells you now -- i have this question, if you were faced with this decision to raise the fed funds rate causing the yield curve to invert, would that stop you? >> it would give me great pause. >> would not vote to increase the funds rate >> i will not predict what i had or won't do, but as i sit here now, right now, i don't want to knowingly invert the yield curve. what's the yield curve temperaturing me the flatness says we're late cycle. it also tells me that expectations of medium term growth are sluggish. we have a good year in 18, a lot of stimulus right now.
i think by 19 we grow more slowly, and by 20, our projections of the dallas fed suggest we get back down to the potential, which is more like 1.75 to 2, and i think that's with the yield curve tells us outyear growth is sluggish >> robert, unfortunately because of the president, we have to leave it there appreciate you're coming on today. >> good to talk with you, steve. >> back to you guys in new york. >> a lot of great nuggets in that interview, steve, thank you, and our thanks to mr. kaplan as well digging deeper into what's going on with the economy and the stagnant wages corporate tax cuts were supposed to help salaries by now. >> joining us to discuss, author of collusion, and central bankers, rig the world, and point bridge capital founder, good afternoon to you both starting with overall, supporter of the wage -- the tax cuts. talk us through what positive effect it's already had and will likely have in the future.
>> well, i think it's going to be fantastic look, we have, after years of stagnant wage growth and stagnant growth economically, we are finally seeing this, after four months, put a three handle on unemployment, 3.9%, the lowest since 2000. what's that mean millennials, those graduating from high school right now, this is the lowest unemployment rate since they were born they have never seen it this low. we're probably going to get to 3.5% on unemployment, wages go up, employment cost index rising at the fastest level in 11 years. you're seeing it happen after four months of tax cuts and republican policies and economic policies, president trump's policies, fantastic growth in the economy and in earnings and set for a real jump in wages going guard. >> i also wonder, what dallas fed president pointed out is 7.8% is lower than it was before the last recession, so, you
know, we can debate demographics about everything, but the simple fact we get down to where we were previous to that event, itself tells you we're in a good place, doesn't it? >> oh, absolutely. i mean, what's going to happen now is more productivity we're getting more productivity from workers because they spend money on capital improvements, and what's interesting is people wake up going, wait, republican policies, we prefer them to democrats. millennials prefer republicans to democrats for the first time, and that's a direct result of what's beginning on in the economy. and what i see going forward is we're going to have much, much better wage growth, in fact, if you look at the counsel of economic advisers did a study, and if you looked at countries in the oecd with the lowest corporate tax rates, their employment growth as far as their wage growth was double what it is in high tax countries like the united states just -- you can look out across the world and see when you have lower corporate tax rates, that
goes to the benefit of the employees, and that's where this is headed in the united states, and in four months, we're already seeing it. >> what's your take on the tax cuts do you think it is really delivering better economic growth, or it is just boosting share prices through things like buybacks >> it is by the admission of companies themselves boosting the prices of shares now, we'll look at apple and how well it's going and taking the market with it that was by and large a big proponent because of the large buyback suggestion, and also, look at the banking sector i mean, they have come up and talked about billions of dollars in ain addition dal bddition tot look at wages in the same quarter, tax cuts propelled profits and tax savings, and it's 0.1%. over even last year where there was a record amount of buybacks, which will be more this year because of the tax cuts, we had about 2% increases in wages, we
have 24% increase in the s&p, so there's a definite dislocation between the things that help ceos who have compensation related to share prices, and it does not increase wages, nor do companies say that's what they are doing with the money >> okay, guys, we have to leave it there >> that's not accurate >> real quick. >> we've seen announcements from company after company after company announcing bonuses, announcing new hiring, and wage growth, 164,000 people that just got a job last month is a pay increase they just went from 0 to a pay increase it's happening in a big way. apple announced bonuses as well, and a tax cut went into effect this year. looking at things from last year is not a good way to look at it. >> okay. we got to leave it there, hundreds of thousands of job increases before the tax cut was passed anyway, thank you very much for joining us two other big stories in the world of tech. phil lebeau has tesla's potential competition and legal
headaches from another upstart auto maker, but julia is at facebook julia? >> reporter: that's right. facebook is exploring an ad-free subscription services, telling us the company is doing market research to see what consumers want in the wake of concerns about data collected for ad targeting. on facebook's earnings call, coo sandberg said they thought of ways of making money other than ads, including subscriptions, saying they will always consider everything, but a subscription service is unlikely to be needle mover for facebook. according to web bush, they predict 1% of facebook's users would pay $5 a month atlantic equities say it would be bad to shift facebook's most valuable users in terms of advertising behind a pay wall, and victor anthony says a pay service without ads needs to include media content similar to netflix or other added value to to be enticing to users
as for the cost, facebook earns nearly $8 a month from the north american users from ads, so they have to compensate for that. guys, back over to you >> julia, thank you, julia boorstin tesla gaining ground after the earnings call sent the stock lower, but now there's another challenge in the form of a startup auto company called, wait a minute, nicola. phil lebeau with more. >> let me show you what they are in the news for today. they have landed an order from annhuizer bush, hydrogen fuel trucks powering the electric motor. these have been up to 800 ordered by busch, targeting delivery in 2021 you might be saying wait a second, isn't tesla leading the electric semimarket? yes, they announced and
announced last year plans to build a tesla electric semi with production starting in 2019, just around the corner at the same time, the company, this week, announced it was being sued by nikola over the design of its semi, being too similar to the nikola semi this is elon musk talking about the strange lawsuit. >> a laughable lawsuit recently from some company called nikola, ironically, like nikola is suing tesla, that's hilarious. fate loves irony they said it's the way the trucks look, which is absurd nobody's buying a semitruck because of the way it looks. >> as you look at shares of tesla, look at the bounceback today. this is a stock that just days ago, guys, when elon musk came off the earnings call and people
said, look, is there something here spooked investors? they regained everything that they've lost right after that conference call. guys, back to you. >> phil, thank you very much really impressive rebound, now flat on the week now we got 43 minutes until the close. right now, dow's up by 365 points, around 750 rebound from 11:00 a.m. yesterday big turn around we see there, up a 1.5%, all major indexes this friday afternoon all over the big rally with an analysis, job numbers, and the economy going forward. >> brian sullivan is at the nra convention down in dallas, brian? >> reporter: hey, kelly, thank you very much. if you are wondering where 80,000 of the fans are, you found them, here in dallas, the president still speaking after the break, we go live to the nra convention, follow up with the president's comments, and tell you how big the gun business really is that's after the break on "closing bell.
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americans will never surrender, will never, ever, ever, ever surrender. we will never give up our freedom, americans are born free we will live free. we will die free again, it is a great honor to be with you, very special people, we truly appreciate your support. i'm doing the right thing. i'm doing it for you, but we're doing the right thing, we're doing the right thing together >> that's the president at the nra convention down in dallas live right now, we go over to bri brian sullivan on the ground right there for us, brian? >> reporter: in fact, kelly, the president and vice president and donald trump jr. next door to us here on the convention floor, 800 exhibiters and 80,000 people expected in three days you see the president is drawing crowds i mean, these are his people
he is here addressing this, in fact, guys, this is the first time in americanhistory where sitting vice president and a sitting president both addressed the nra convention, so, truly, historic here. he's coming back to rally his base, talking about the second amendment, talking guns, and this is not only a debate, a political debate we're having, but it's an economic debate as well because as you can see, there's a lot of people here, a big industry you may not know it, but 42% of americans own a gun. 11.5 million firearms built in this united states every day, and there's more than 300 million firearms in existence as well, so a lot of -- this is a huge industry, about 150,000 direct jobs, and these people, many of the people we've spoken to, addressed by the president, feel like they have been under attack, second amendment under attack, gun rights under attack, or the industry is under attack. guys, but here's the most interesting thing i've heard so far yesterday and today being in dallas in and around the
convention they love the president, but they don't like what he's doing to the industry, and what i mean by that is, guys, gun sales are actually down from a few years ago. we've seen some of the vendors here, pulled me off camera, they are laying people off because there was more fear of guns taken away under president obama, so, actually, as much as they love president trump, he actually, to them, has maybe hurt their business. let's get a listen, briefly, of what the president had to say today. >> we're here today because we recognize a simple fact. the one thing that has always stood between the american people and the elimination of our second amendment rights has been conservatives in congress willing to fight for those rights we need republicans to do it right, get the things we want, we have to get republicans elected and do great in '18.
>> reporter: there you go, wide ranging speech by the president, guys, rallying the base here, certainly, and it's a big industry it's a big debate. it's not going away. we're here, and lastly, guys, this, i know the president takes his shots at the media as well, but we like to remind the president some members of the media are here, and we're talking to people on all sides of the issue as you can clearly see. back to you. >> brian, i just find it hard to believe that nra card carriers really want president obama or someone like him back in office, even it was better for their sales. >> reporter: they don't. i don't think they do, but the vendors, men and women running businesses, smaller ones down there, are the ones saying, well, because there's less fear about gun regulation, sales have come down, especially in the smaller companies, all the stocks guys talk about, there's not many of them, lower than they were when the president was put in office. i don't know that anyone would have predicted that. >> brian, great stuff, thank you very much for that, brian sullivan for us reporting there
from the nra convention. we're going to leave that story because we have breaking news on vicom and cbs. we have that story, jackie >> good afternoon. shares are spiking, shares of cbs are up as well, and this is after reuters story cited sources that redstone national amusements chair, remember, the national amusement, shareholder of cbs and viacom. she's offered cbs ceo to drop demands, and following the merger, seen as a significant hurdle in terms of merger negotiations, an impasse, if you will, an attempt by redstone to resolve the impasse. chers of both companies move on the news, guys >> jackie, thank you very much for that, fascinating time, of course, cbs started the day, cbs report the strong sets of numbers, which is sort of a great timing, bode of confidence
for the management team at the time when viacom saw revenue fall >> at the same time, investors supportive of the efforts to turn the companies around. this is going to, of course, perhaps have him exiting the picture there as les and his number two solidify control. shares up 7.5% now and viacom up 5% >> cbs was up nicely after the earnings anyway, and an extra couple percent boost there 33 minutes to go until the close. >> dow's up 361 points right now, and broad base rally, and we're going to have two names to watch heading into the close when we come right back. mike santoli has big market movers, mike >> we have spoke about spotify in the months since the stock listed here, but today, the hit in streaming music is pandora. why that stock is up big when we come back. help you reach your goals. it's having the confidence to create the future
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welcome back to the "closing bell," everyone, i'm sue herera with your news update. 1500 residents evacuated their homes after hawaii's volcano erupted. they cannot predict how long the eruption lasts prompting the governor to activate the national guard to help with evacuations. so far, there are no immediate reports of injuries. president trump's attorney giuliani released a statement
that the $130,000 payment made to daniels before the 2016 did not violate campaign laws. giuliani said it would have been made even if trump were not running. a recent u.s. study says surgeons' skills may improve with age, and male and female surgeons perform equally well. it reported that medicare patients risk of dying in the month after an operation fell as surgeons' age increased. unified korean team lost their semifinals match against japan at the table tennis world championships. the results came after the two nations, north and south, decided not to compete against each other in the quarterfinals. you are up to date that's the news update this hour, wilf, back to you. >> sue, thank you very much for that, our sue herera in hq there. under 30 minutes to go until the close, and let's check out stocks to watch as we head into that close >> and shares of shake shack up
21% after posting same store sales numbers that beat expectations, company expanded rapidly, plans to add 30 locations this year, quite a turn around from the reaction of the stock price after earnings came out yesterday afternoon it was a little bit initially of a struggle, and now it's up 20%. >> nice turn around for shake shack, up 21% still on the week despite the earnings move in the other direction yesterday. meantime, to the floor where mike is posting up pandora, mike >> yeah. 20% mover most of the day on pandora. company had results last night, streaming music service showing a huge gain in revenue, advertising revenue down slightly, as expected, and the markets seems like it's caught offguard by the bit of good news, 30% short position in the stock, people betting against it, stock down from about 11 in the last year, down to a recent low of 4.5, so people read too much of the negative, and compare to spotify, close to a
market value, pandora under $2 billion, and the results make it seem like there's a spot for pandora in the music industry business, so people clearly feeling it's viable and worth the bet here >> okay. mike, great stuff thank you very much for that big move, 21%, opposite direction from the other streaming service earlier in the week 27 minutes until the close, and dow is justoff the session highs, up 356 points, great set of returns for all three indexes, nasdaq leading the charge at 2% >> much more ahead on "the closing bell." did investors pick their direction after coming to a fork in the road for the market the dow up 700 points from yesterday's low. plus, a bold note on the banks and a time many analysts say put your money elsewhere this is the "closing bell" live from the new york stock exchange with kelly evans and wilfred frost. we're back in two minutes.
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this morning, joining the exchange with the dow up 356 points, peter is here, and our own rick santelli at the cme in chicago. how do you read this there was focus after the jobs report came out on the details and broad unemployment, oh, maybe it's soft and wages soft are we rallying for the right or wrong reasons? >> we're rallying because i believe we bounced off the 200-mo200 200-day moving average for the third time, and third time is a charm. if they don't breakthrough the average or can't hold those losses, the market should rally and benefit from that. i mean, you know, you look at the numbers, they were good, you know, people were expecting more, but they were not bad. >> no, they were great by some accounts, you know, unemployment rate lowest in record, and u6, broad gauge, lowest since before the last recession. >> a lot of positives from it, but i -- i'm tenning towards the
technical side, and i'm not a big technician, i believe when you bounce off the 200-day moving average for the third time you test it and it does not breaking that's a solid sign >> phil, stepping into the fundamental side of things, how do u.s. stocks look compared to the rest of the world? economic data softened a little, but valuations are cheaper >> well, it's funny, depends what camp you come from. still expensive at 20, but look at forwards, okay, 16, you argue cheap. that means the earnings have to come in the way analysts expect. for me, u.s. market is cheap enough, get 8% here, but look at europe europe's trading at a discount look at current or forwards, both are cheaper you got to think, if i have a portfolio, i have to move allocations received - >> come on, the u.s. outperforms in the long run. >> not right now i want to buy, opportunity for longer growth. >> i'm sorry - >> not just arbitrarily --
>> just drew - >> long run, yes, but wind it back, wind it back if this was 2008 when the u.s. was rocketing out, i agree with you, but they are now looking like 2014 or our 2014, they are earlier in the recovery, stocks cheaper, growing faster. a balance of both is how you have success >> rick, if people want to invest in europe, are they make or lose money on the currency side of the bargain in the year ahead? >> well, i think the currency actually gives you clues to the very interesting conversation. you know, peter, we all know peter, writes good things, and talks about 2017, all about europe i understand that. i still say being an ex-trader, he who turns the market gets the market the u.s. turned the global economy, when they happens, they look to europe because europe always is discounted, always following the metrics looking better, and it is because we turned it. when we start to soften, boy, they exit out of europe. there was one of the things i think that helped propel the dollar to some of the moves, not
to mention, when it talks emerging markets, every single time, no matter how confident everybody is, it's about the comps, making more in emerging markets, yes, and there's a lot of notes on that, and dollar had a great performance this week, up a penny on the week, fifth a cent on the possession, and that's another thing europe contends with, mario draghi is not at all in the normalization area he most likely needs to be. you can see that in the 240 basis point spread between our 10s and their 10s, and as far as the stock markets, i was a little shocked because i don't think the fundamentals match, and peter nailed it. that is mostly driven by technicals, and on the interest rate side, it's very impressive that no matter what happens, the short end closes on the high yields, so nothing changes with the fed, even though the wage nervousness of several reports ago is all but vanished in the
long end, even though they are worried about growth, it's still remaining firm between the old high of 295, new high of 303, and super tight, no retracements, and i guess 2018, the treasury market, is just like stocks in 2017. it's a one-way market with few corrections. >> i see "help wanted" signs everywhere every day, you read another story about a company offering $5,000 signing bonuses i don't know how this squares out with the markets, but we can leave the week positive. >> finally for sure >> guys, thank you very much >> thank you we've got 19 minutes before the close, and it is a positive close that we're expecting asi o here's the outlook for the banking industry, is it better than it's en iben decades? discussing that. amazon enters the horse racing business. those details coming up right here on "closing bell. so what else is new? how's your mother?
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bell," 15 minutes to go or so, and dow hangs on to a 356, 1.5% gain, and nasdaq is slightly advantager with apple having a strong session s&p dipping in and out of correction territory this week, now down more than 9% from the 52-week high in january. joining us now, hilton management capital, dickin, gre to see you, good afternoon >> good afternoon. >> the market came off the high, but the euphoria in the bank sector for 2017 has ebbed away, but you are positive in both the short term and long term as a whole. >> i think the banks are entering a golden age in which they are beginning to be able to earn consistent increases in earnings, unless there's a recession. if there's a recession, we're dead, but without that, they are a big uptrend. >> do you think they are overcapitalized or undercapitalized as some argued this week. investors say they are way overcapitalize >> they say that because they
don't believe that banks can make money banks can make money, then the banks are not overcapitalized. in fact, you know, i am a big believer that buying back stock is a horrible thing to do for a bank it's like an oil company giveninggiven i oil away >> sure they can grow if the opportunity was there already. >> exactly right in other words, the theory is since opportunity is not there because companies cannot grow, then, you know, give away the capital, but i don't believe that to be true. i think that we're looking at a period in which the need for money is going to grow exponentially at a time when the availability of money is declining. remember, we're going through what i'll call a massive change in the structure of the financial industry because for the last 20-25 years, if you wanted money, it was there, whether it was the greenspan put or, you know, what was done by
bernanke or yellen, and now money supply is not growing. it's not growing because the fed is shrinking its balance sheet >> in terms of where to look in the opportunity spectrum of banks, do you prefer the big cap names, smaller caps, what's the best performing stocks >> the smaller cap stocks are killing big bank stocks in terms of performance, there's just no comparison whatsoever. in other words, if you look at the period from 2000-2017, you got, you know, mid-cap bank stocks, up 20% a year on average, big banks, biggest universal banks are down >> and give us some opportunities, top picks in the small cap space. >> well, you know, silicon valley bank, you know, a huge winner, companies like pimco, and the stocks have done well, some over last five years are up
25% to 30% in terms of price appreciation while the big huge banks sit on their butts >> touch on goldman sachs a little bit does it have some of the flexible aspects that the silicon valley banks of the world have with what's it doing in the consumer space sm. >> well, obviously, one of the worst managers wall street has seen - >> ever? of all the ceos, especially last, like who came out of the banks, lloyd blankfein is at the top? >> certainly in the top, and i say that because if you compare goldman sach's performance, goes over to the performers of any other of the big six banks, it's the worth. it's the worst because the company made clear decisions that were incorrect. they made the decision that the world is going to come back ksh. >> but since he took over, it's second of the big six, jpmorgan
is ahead to the delights of citi and it goes jpmorgan, wells, and goldman -- >> the earnings have not been there, though, right goldman is earning more -- >> measure by share price, he's third, and jpmorgan is ahead of the rest, and, you know, couple other banks had multiple ceos. you can't measure those ceos by that time frame. >> well, appointment is, one has to assume at some point the company should make more money, and this company's revenues and earnings are below five years ago, ten years ago, one year ago, almost one quarter ago, so the net effect is, i'm not sure that, you know, stock price is the core reason for, you know, owning a company >> and, today, there's also a glowing profile of gorman and what he's done at morgan stanley. last word, goldman is mentioned, we think consumer is a place to win now because we have the technology is that a stras jtegy
>> they are struggling with strategy in other words, they have right now a number of initiatives in the whole series of areas in the company to turn it around. they should have purchased a company like whole america ten years ago. they did not they should have moved into consumer oriented department generates businesses they did not now they are struggling to get back into all those areas. >> you have a buy on the stock, right? >> well, yes, if the market is going to go up, it's a broken stock, and broken stocks are going to do what the market does >> leaving it there, dick, pleasure to see you, thank you for joining us dick bove >> thank you the dow now is up 1.4% or so the sdnaaq leads the charge at 1.6%, off the highs of the day, but a nice end to the week back in a couple minutes let's begin.
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three and a half minutes to go until the close, and the band playing on the stage as you can see. we are up about 1.2% at the moment as we approach the close. intraday chart for you there, of the s&p 500, we are near the session highs, having opened lower, just coming off the top of it towards the end of the close, looking at the three indexes, nasdaq leads the charge, dow and s&p just behind it, and the sector performance today, talks of that story as well, technology very much the clear leader, up well over 1.5%, and telcoms the laggard. we switch to look at sectors for the week as a whole, almost all the sectors were in negative territory into today, but the performance helped a couple of them in positive territory, again, technology, the best performer, up 3%, and one other in positive territory, and telcos the laggard for the week, down a foul 5%, why is technology the best performing
sector for the day and week? because of apple the share price performance for the week as a whole, up a very healthy 12 or 13% for the week, and 13.1% now. there we have it 4% of which is coming today. fantastic week for apple, and just as i bring in bob pisani, dollar week to date because two days we saw markets rally yesterday and today, the dollar has sort of plateaued. it was rising sharply, the stock, and ended on equities >> that's great news because, boy, it was a real problem for emerging markets indonesia, turkey, all currency in trouble this week, and the stock markets around them all have been down look, apple was the big factor today, but don't kid yourself. materials, sturm stconsumer stan industrials up, they are not up because buffet is buying apple they are up because the jobs report was of the perfect goldilocks, an overused word, that we talked about yesterday you got growth, but not too
strong, not too weak wage growth, respectable, but did not ignite inflation concerns bulls needed a good report to say we're still getting growth, and we're not worried about inflation. remember, bears have been arguing growth is slowing down, and inflation is picking up, and they need to change the narrative, and that helped change the narrative, and you see what happened today. >> so much of this, we can try to frame it as saying it's a bullish market of the last quarters, but so much rests on apple. >> yes but, as i said, material stocks up 1.5%, and industrials up 1.5%, and consumer staples beaten up, but up 1.5% they are not up because buffet bought apple as much as we love him, but people are turning around looking at semiconductor stocks and consumer staples, and seeing the oversold condition and buying in a little bit this is not a necessarily some kind of change in the trend. the trend recently has been down, but at least a narrative
broke today. now the bulls need to put together some better economic numbers to reenforce their debate, and the global growth story is not happening >> up about 2% there goes the bell, up 331 points on the bell we are ringing the bell, constellation brands ringing the bell at the nyse we are up 331 points on the dow, kelly's got the second hour now. welcome, everybody, i'm kelly evans. if you hear the bands kicking up in a moment here, they were up there with constellation brands ringing the bell you know what's going on happy cinco de mayo for everyone participating. the dow up 331 points, up from 700 points yesterday the s&p up, 23 points, 2663, and nasdaq led the way today, 1.7%
higher to 7209, russell up 19 points to 1695 joining me here, high call santoli and cnbc contributor, and chris, advisers joining us too, welcome, everybody. leading the dow was apple after warren buffet revealed he bout more shares to our becky quick up 4% today. chevron one of the only decliners in the dow with a fractional decline over in the s&p, the big winner was cbs closing up 9% after the latest reuters's story, backing off from demands about the company, potentially to take control, and still on the board, but cbs up 9%, helped by earnings yesterday, and viacom up as well and fiuor down 22% as well michael, what's significant to you about the week now >> a big tension release at the end of the week was a big one.
in the morning, another anxious friday where we just sell because you never know what's happening over the weekend, trade or other news, and i do think that the apple buffet news was an upside triggerment basicalbas, keeping it simple, stocks in the low end of the range for weeks now, and it seems as if there's negativity that built up the jobs number was a lukewarm just right type of feel, and it really just allowed you to get back to even for the week. keep that in mind. i think it's a net positive. volatility index below 15 shows things are stabilizing a bit >> kevin in. >> it's range bound markets. i did not get excited about the week one way or another. three things are overhanging the markets despite good profits all around that is the tariff story, especially involving china i don't think that's going away soon there's no resolution, why they even went is a mystery, but, you know, don't send five, six
spokespeople if you want to get something done >> sitting down at a table facing a, you know, a battery of chinese officials, you can't just send one guy. >> yeah, but they don't know what they are trying to do people have very different points of view of the six people they sent. don't send them all unless you know what the goal is. >> i want to say on the day that they came up totally empty, apparently, start of the process, the market was up 350 i don't think that's a major immediate overhang, but psychologic psychological. >> it is the iran issue will be on the floor the next couple weeks. >> is that more of an oil story? >> oil story putting a bid into oil right now, and the third issue is the whole stormy daniels circus and what's going on with that. the fourth thing i say that's really what i look to as the prime market driver is wage growth i think that that -- if you want
to see where the markets breaks it's coming from what we see in terms of wage information in four to six weeks. if it turns out it's going to meander along, not getting the boost from the so-called tax cuts, then you won't see it in the wage data, but on the other hand, if that turns up, could be bullish. >> we'll have more on the jobs report this morning. kind of feeding into the perceptions in a moment. jack, into bring you in first for thoughts on the mart heremehere me -- what do you think the setup is we talked 10% lowerfor the dow and s&p, but today feels different. >> yeah. i think it's all about interest rates. 10-year treasury trading about 1% below where it should be, thanks in large part to the european central bank and weakness in europe, and i think anything that will keep that interest rate, particularly, that 10-year interest rate below fair value and lower, it's going to be creating a boost for the markets, and so i was encouraged technically, we bounced off the 200-day moving average three
times. that's encouraging valuations are reasonable, as long as long term or intermediate term rates stay where they are >> all right, let's talk about the jobs report, then, digging into the wages u.s. economy added 164,000 jobs last month, below expectations, revisions higher, though here's some of the significant figures. unemployment rate down to 3.9%. finally below 4% not clear whether that's good or not based on what happened in the last time we've been below 4, but lowest since december 2000 u6 unemployment rate lower than before the last recession with the demographic changes we had latest numbers have a big impact on the fed jeff cleveland is joining us now, chief economist, jeff, we had a lot of fed speak, robert kaplan spoke saying that he thinks we'll see element of wage pressure, and is the fed going forward several times this year,
what do you think? >> well, kelly, you know, happy cinco de mayo eve to you this is a rare event for markets. under 4% in the unemployment rate it's only really happened three, maybe four times before, and in the late '60s and late '90s, great economic environments. this is a really good sign would be really unusual to be under 4% for a sustained period and not see more wage pressure i agree with kaplan. i think we'll see wage pressure increase as the year progresses, and we're already seeing it, actually, looking at the eci report out this week, closer to 3% year over year on wage growth, and the atlanta fed wage tracker showing you closer to 3.5% wage growth, so it's gradually increasing it's happening right now >> and this, it feels like if there was just confirmation from the actual jobs report, that don't you think that the 10-year and narrative would reset? like when we got the 2.9% year
on year reading. >> it could, yes, but hours worked was up, average hourly workweek, now, that was marginal that did not change the picture that much, but it's all moving in the direction you want to see. i don't think it has to spike or accelerate, and it's above the rate of inflation, so you are talking about, you know, small real wage gains at a time when, you know, rates are below what we got used to historically, so maybe for demographic and other reasons, this is the economy we have right now >> yeah. it's interesting i don't -- i don't think a lot of this discussion around tariffs has an impact on the real economy i do think that going forward over the next few weeks is interesting to see how the trump administration plays this. they really do have a goldilocks economy and good economy now so the task for the administration is not to upset the apple cart let the economic data flow through. let wage growth flow through, and really, how they react to
iran and tariffs will really set the tone, i think rs for the summer >> because, jeffrey, don't you think -- >> i disagree. there's so many reports how strong the labor market is, again, i go back to all the evidence that the companies are offering signing bonuses to help relocate people, you know, trying to get young workers into the work force, you know, that all -- that -- don't you agree that's moving in the right direction? >> absolutely. i think that's why we would point to investors to look beyond average hourly earnings that are masking improvements and things like the eci, take into account compensation traen trends, showing a better wage growth, so i think it's happening. you know, i don't think it changes much for the fed, though, kelly, and they told us this week their inflation target is symmetric, so they wouldn't mind if wage growth picked up, inflation pressure, and you see for a time, above 2% year on year core inflation, for example. the folks that i think are not quite ready for this are the bond market participants who
just have seen 20 years of inflation being sub-2%, and if we get above, they'll change, i think, in the narrative, at that point. >> yeah. we still got to wait to see it, i guess, jeff, thank you for joining us >> my pleasure >> jeff cleveland from peyden and reigel becky quick is in omaha, ne nebraska, the story of the day, a huge additional purchase in apple there. >> reporter: that's right, kelly. biggest news of the day, the idea that warren buffet purchased an additional 75 million shares of apple in the first quarter on top of the shares they already own, so berkshire haber berkshire, at 29 billion, and with this holding, it's now 43 billion dollars they hold in apple shares, and in the first quarter, investors doubted
apple, selling shares concerned on the iphone x sales. that was not the case with buffet saying it's not something that concerns him. >> yeah, the idea of spending loads of time trying to guess how many iphone 10s or whatever it may be are going to be sold in a given three month period or something, it's just like worrying about the number of blackberries ten years ago and what we thought happens over the next ten years >> we'll talk about that in a moment, and, kelly, another piece of news on this is just concerns about ge and whether or not they come out in the last month or two, and and if they are interested in making
purchases, saying no, but if he was, that would be the same answer he would be giving us, however, while he did not comment on that, he said he likes current ge management. >> i actually admire what they are doing, a very tough job, but doing it logically, and i'm very familiar with he, and we've done a lot of business with him, both as buying and selling side, so, and, you know, it's an american company from way, way back, original dow jones average, so i want the company to do well. >> finally, buffet speaking publicly to us about his holdings in usg and public stat with the company for the first time he talked about how he was upset with how management of usg gave a stiff arm to the german company when it came to buy the company. berkshire hathaway is the
largest shareholder, owning a third of the company, and he talked about how that was not what he wanted to see from management he publicly voted his shares no against that team, and this was a very rare public rebuke from buffet >> we've been in a very, very long time, and it's true that i can't think of a time -- there may have been one escaping my mind i voted against directors, but we did not think they responded properly in terms of not sitting down and at least talking to them for holding their stock for 18 years, 10% of the company, and we did not think the directors were essentially doing their job, so we said we intended to vote against that we don't have any rivals or directors running against that, but we did several things.
>> reporter: okay. so, again, when he said, yes, they voted no, they voted no on all the issues, and it is something we'll talk more to them about as we get into the weekend, and, kelly, i don't know if you heard them yelling dilly back there, but when they say that in omaha, this is what they mean. >> oh, i'm -- i would give anything for a blizzard right now. >> they have them. >> oh, god all right. >> reporter: mini ones here too. >> have three for me >> reporter: last year, i brought you stuff back from the meeting. >> i know. >> reporter: i can't bring these back they won't last in the suitcase. >> becky, thank you, looking forward to seeing what happens tomorrow becky quick in omaha check out cnbc's new documentary, warren buffet, investor, teacher, icon, premiers tonight at 10:00 p.m. eastern time i was asking art earlier if we rallied into the weekend because of the buffet effect he talks about the stock market, long term, success of the u.s.
economy. >> that was one of the background factors, and not just with regard to the overall market, but kraft-heinz up 6%. >> what was going on there >> the ceo is speaking on monday they don't speak a lot >> they had a great week >> yes, and stocks were down, but you want to get out of the way of some of the happy talk that always does come this weekend, but apple, obviously, was today's big story. >> i find it absolutely fascinating. i'm not talking about the se, b you have an icon who made the career by getting way out ahead of things, and now he's doubling down on -- >> getting ahead of things >> well, i mean, he identified companies like coca-cola early on and rode them into icon status he actually -- >> as mike said, he, for a while, kind of reminded people how well you can do with consumer staples, and now it feels like he's paying attention to consumer tech >> whatever it is, people used him as the example that you can beat the market, and he's come
out and said over 15 years, you can't beat the market, and now he goes ahead and buys the largest stock market component index, doubling down on it, indicating that you really can't beat the market. >> most professional money managers can't do it on a sustainable basis. >> not a way he's going to beat the market by a lot, but tens of billions of dollars in cash to put to work. >> you have -- >> by the way, traditional investment managers are probably slightly underweight apple, and if you look how much stock both the company and buffet bought in the first quarter -- >> what would the shares have done if they had not >> who do they buy from? active managers who don't want to own it anymore.selloffin ina have been worse without them >> all do respect to the warren buffet love fest, which is fantastic -- >> you hate it >> no, no, not at all, but all i'm saying is that at some point, this is -- it's going to
come to an end, and i'm just saying that my point is that warren buffet buying in apple is a signal that we're at the end that's my takeaway >> not to the end of the show, there's still more ahead on the "closing bell. >> disney earnings next week, and last month's "60 minutes" piece on allegiant brought the stock down what company are they looking at now? this is the closing bell live from t n yk ocheeworstk exchange with kelly evans we're back in two minutes.
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trump made the payment to stormy daniels, porn star alleged aaffair with, but the president knew about it at some point after making the payments. that was the news rudy giuliani made this week, and the president came out this morning on his way to dallas, texas saying rudy giuliani made mistakes in the comments about that, but not saying what the mistakes were. here's what the president said >> he just started a day ago, but he really has his heart into it, working hard, learning the subject matter, and he's going to be issuing a statement, too, but he is a great guy. he knows it's a witch hunt that's what he knows he has seen a lot of them, and he's never seen anything so horrible so rudy knows it's a witch hunt. he started yesterday he's get his facts straight. >> reporter: the president dare saying rudy will get his facts
strait, and, in fact, giuliani did that, here's part of the statement he said, as it relates to the timing issue here of the payments he said, my references to timing were not describing my understanding of the president's knowledge, but instead, my understanding of the matters so, it seems to be that although giuliani said that the president was aware of the general arrangement with michael cohen, his other lawyer, in terms of the payments to stormy daniels, now giuliani is saying that he can't say for sure whether the president knew about that. he was only giving his understanding of what the president knew, which opens the door for now the white house to say that, in fact, the president never knew all of this is important because on april 5th, on air force one, the president did say that he did not know anything about this, and it sort of raised a lot of questions when giuliani said he made the payments in 2017, how it's possible that he could have paid for the stormy daniels payments a year before with no idea about that a year
later. so a lot of confusion here, and we still, as we approach the end of the day here, kelly, don't really know what the white house's position is on when the president knew about these payments to stormy daniels that came from his own checking account. >> yeah. eamon, thank you, recapping action for us. evan, you mentioned this is your three things hanging over the market, but in what sense? what are they looking for? >> i don't think the public cares about this one way or another, generally speaking. i don't think wall street cares about it one way or another, really, but i think it matters in the legal process, and it just becomes a huge distraction that starts soeging isoaking uc and taking the president's time, which the direction it's going >> distraction from what it feels like they already have kind of said, we made our big push, did the tax cut, the infrastructure left, there's nothing else going on. >> policy-wise >> going into the mid-terms knowing it's an uphill battle,
phase two tax cuts, that get more likely? >> i think the -- i think the elections, themselves, right, what's the market want loves gridlock democrats take the house it's fine, probably. >> as long as it's just the house and not the senate >> probably. even at that, still gridlock >> take the senate, they pursue impeachment. >> and still gridlock with a different president. the point is, in terms of consequence, i don't think there's much of anything that we're going to kind of wait for that one big - >> no, i don't think - >> what i think is that maybe, you know, maybe do you want to have a president that feels cornered and has to do something, you know, as a big kind of bold distraction >> is that welcomed? >> well -- >> depends on what distraction you're talking about >> more likely no than yes >> talking warfare or infrastructure or -- >> no, i was not -- i don't think that would be -- >> i just think there is an element to the administration, hard to talk about -- there's an
element to the administration that's been since day one of making it up as they go along, and the thing with giuliani and back and forth and tweeting with legalese, it just -- it's literally people making it up as they go along, and the danger to that, it's not -- that's what people, the public and wall street, that's the expectation, but the danger is when you make it up as you go along, you run up against other things where people are not making up what's going on the chinese are not making up trade policies as they go, the president -- >> the criticism of him is, oh, geez, can't have a guy making it up deal with north korea, but look at the outcome. >> all i'm saying is the danger on this stuff is that it ends up being a bigger distraction than people think it will be. >> from what >> the president sitting there in court giving testimony over the payments over $130,000 to -- >> i think there's not a huge expectation a lot more else comes out of the white house anyway, disney is one of the leaders of today's rally coming up, fast money traders say whether they buy the stock
jackie d. with the story >> wells fargo announcing today its reached an agreement in principle to resolve a securities fraud class action suit settlement came out in 10q filed earlier today. $480 million is the payout, subject to final approval by the court. they also say that the company denies the claims and allegations in the action, but entered into the agreement in principle to avoid cost in disruption of further litigat n litigation, kelly? >> jackie, thank you that's the latest on wells for now. meantime, amson gazon geptt new business every hour. eric >> reporter: starts with audible, the audio book company, the chief marketing officer noticed all the google alerts popping up, but it was not about his company. it was about a racehorse it was a racehorse named audible. the company reached out and got
involved with the horse on a small scale and the horse won in march and earned a spot in tomorrow's kentucky derby. that's when this audible sponsorship took off the company is going to have logos on the horse and the jockey, social media and marketing campaigns on site events as well if the horse wins, the company is giving away free copies of the audio book, "american," and he's favored to win. the company's customers love a good story, and this is a good story. finally, the owner of wind star farm where the horse trains did not know about the company they named the horse after the football audible, so that's how this whole thing started no lawsuits, but a sponsorship from the deal. >> well, that's the crazy thing. okay, so, now, guys, everybody who hears this, great, i'll name it audible or amazon so i get showered with attention. >> it's going to be like soviet russia, they used to at the time
of industrialization they named their kid tractor. they were named, like, after, like, icons of the soviet state. >> oh, my gosh >> this is the updated capitalist version of that >> stalinist russia. >> just saying the naming principle, like, would you like to name your child tractor come on. >> i don't think so. >> amazon. >> the completely retro marketing strategy of sponsoring a horse, high-tech, you know, new age company, reminds me of when snapchat, before going public, put a billboard in times square >> yes, by the way, didn't rob -- eric, are you there gronk, there was a horse named gronkowski - >> he invested in the horse, but then the horse got injured similar to gronk, and he is injured a lot and doesn't play in the event they have a lot of togetherness, player and horse >> see if it turns out better for audible.
thank you very much. the kentucky derby is tomorrow how did we finish today? dow up 332 points, gains of 1.3% for all the major averages, nasdaq up 1.7% as you heard earlier, revelation that berkshire bought more apple boosted the nasdaq and dow today. apple shares up 4% that's how we closed up. time for a cnbc news update with sue. sue? >> kelly, hello, everybody this is what's happening at this hour the connecticut supreme court has ruled that kennedy cousin michael skakel was deprived of a fair trial and entitled to a new one. he was convicted in 2002 in the death of martha, granted a new trial in 2013, and the state supreme court reinstated the conviction in 2016 president trump telling supporters at the national rifle association convention that they will always have a friend while he's president calling the nra a truly great organization that loves this
country. >> your second amendment rights are under siege, but they will never, ever be under siege as long as i'm your president >> and nearly 1500 residents were ordered to evacuate their homes after hawaii's volcano erupted spewing out lava, no immediate reports, so far, of injuries you're up to date. that's the news update this hour, kelly, back downtown to you. >> sue, thank you very much. we have a closer look, in fact, of that eruption in hawaii kilauea has a long history of eruptions including a huge one in 1955. we did some digging and found research from oregon state university saying losses from the eruption was $2.6 million, in 1955 dollars, including over $2 million in sugar, 180,000 in fruits and vegetables, and
300,000 in road replacement costs. an eruption in iceland in 2010, remember this, the ash cloud drifted across europe disrupting air travel leading to the cancellation of more than 100,000 flights according to the international air transport association. the hawaii disruption sounds minor by comparison, but hawaiian air shares, the shares, today, they have southwest as expanding flights to hawaii. >> i think that's going to have more impact than the volcano >> the producer were just there on their honeymoon hiking, and people are doing that this week, staying far clear. disney down more than 6% this year up next, we get the fast money trade on whether to buy that stock ahead of earnings. later, a major drug maker hit on news at the heart of a "60 minutes" investigation those details next
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even, big stories of the day now in the rapid recap jobs in america, unemployment rate falling to the lowest levels since late 2000 >> april nonfarm payrolls increased by 164,000 jobs, unemployment rate is 3.9%. >> jobs report was very good big thing to me was cracking 4 that has not been done in a long time >> your money making nice gains this hour, we are at around session highs, dow up triple digits >> berkshire bying 175 million shares of apple in the first quarter, and buffet talked about that purchase to cnbc. >> this is an unbelievable company. look at apple, i think it earns almost twice as much as the second most profitable company in the united states >> here's how we finished up on wall street, up 331 for the dow, up 700 points from yesterday morning's lows, 1.4% gain
>> disney shares up more than 2% today. the company reporting earnings next week on tuesday shares have been moving sideways for years, frankly, could things get more interesting let's bring in "fast money" traders, mike and dave, dave, starting with you, look, there's a lot going on with disney, especially on the espn front and with the fox deal coming up, what are you looking for >> look, i think earnings are going to be fine next week actually, i think it could be a catalyst for the stock to trade higher, but it's not going to run away from us there's risk around, you know, the fox acquisition, and i look at the core, you know, earn, parks earnings and studio earnings, it's peak. can it stay there and maintain the trajectory i'm not sure they can, given the fact they shift the model, risks in that, ott model, over the top model, and margins are impacted in that scenario earnings good, stocks rally on it, but it's a sell.
>> another monster movie opening too, mike. >> well, yeah, "black panther" a huge success, no company better at marketing content than disney is you know, a quick appointment, i think the things david said are real risk factors, but the company on a historical perspective trades cheap right now, and i mean, trading at 16.8 times trailing earningsin, well below the s&p and if you look going back, you know, ten years, this is a company that trades at a premium, so a lot of basically the premium it used to get has been taken out issue and so i think it's one of the reasons why it's probably, i think, a fairly attractive buy. it's got just under 2% dip yield, and market expects a move of 3.5%, less than 4% on earnings >> real quick, what do you think about disney >> big issue is superhero franchises, what's the future in that espn, probably not a great future, generally, in terms of the packaging and pricing, and
finally, going forward to compete with netflix, a big business model issue how does that play out for disney it's not a no-brainer. >> never is. i do think, though, the studio slate for this year is going to keep the good news flowing, and, by the way, how long did you think superhero franchises were in jeopardy after avengers, first to say i don't understand it >> i don't either. truly amazing. >> another star wars and pixar movie coming >> you'll probably see a decline in that franchise now. i think the stock's fine i worry about espn and risk soer soer associated with fox in general >> yeah. >> in this case, i'm not a buyer. >> i think they need the scale to compete in the new world. david, mike, thank you, both, very much. there's more coming up on "fast money" at 5:00 p.m. eastern time, in 20 minutes. why going small, really small, is the big new trend in hotel rooms. first, though, meg has details of a fresh "60 minutes"
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news of a drug pricing investigation by "60 minutes," meg? >> the focus of the report is a drug whose price was hiked by martin proportions called h hp acthar gel, and it was taken for $5.6 in 2014, they hiked the price in 2007 from $1650 a vile to more than $23,000 overnight and costs more than $38,000 now a vile the report this weekend focuses on a lawsuit filed by the city of rockford, illinois, saying it's cost for two patients treated with this totalled half a million dollars, and the lawsuit targets express scripps. they sold that business in november, but "60 minutes" reports on how businesses in the health care supply chain all benefit from higher drug prices suggesting that pharmacy benefit
managers as they have been so often in the last few years will be in the cross hairs. in a statement, mallickrodt says no city in the law constitutes the law and should be dismissed in the entirety. they say that since it acquired the medicine, it's made, quote, only modest price adjustments in line with the pledge on drug pricing in which it vows to price drugs responsibly. this is not an unusual story, kelly, you see the price hikes over the last few years, a lot of people know about this, and it's interesting to watch sun night. >> do you know what accounts for the disperty, they claim they raised from nothing to thousands of dollars, and others say it was already high >> the major price increase was in 2007 when it was quest corp. that controlled the price of the drug, and then mallinckrodt
acquired it. it would not have been as good a business, if the price was not already that high, and, you know, they say essentially under their control, it's not raised that much. >> what does this drug do? >> extremely old drug mainly used to treat infantile spasms and other indications like multiple sclerosis and other things, but it's a weird drug because it's been around since the 1950s, so indications acquired before all the stringent testing rules came into effect, so it's a very odd, odd drug because it's so old >> yeah, that's going to be this sunday, meg? >> yes >> all right mallinckrodt down in anticipation of that >> these are pr problems, but it matters when the government's involved in pricing these things -- >> oh, and there's plenty of people who think the bull run in bioteches is over because of the price and pressure
>> that and the middleman. that's been a big focal point of the scrutiny >> the drug sector has not been a good start of the year for the whole pharma sector overall. it's been tough. >> we'll see what happens. how to save money when you travel, but are americans really ready to sleep in one of these tiny little places to save the money? we'll show it to you soon. coming up on "fast money," the technician tells us what's next after he call the market rally what is the power of pacific?
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trend. >> reporter: i'm in tokyo, japan, staying in unconventional quarters, a posh pod hotel >> welcome to my pod >> reporter: the concept is increasing in and around japan and around the >> with a tv, radio, electrical outlet and even pajamas. there's a lounge and bar area where you can get work done or enjoy a drink before bed they love this concept because they can meet other travellers without breaking the bank but just because you're giving up modern cob convenienc modern conveniences doesn't mean it's cheap either. this place can cost up to $70 a night and a hotel across the street will easily cost you $300 sleeping in tight quarters was actually surprisingly comfortable. i fell in a deep sleep maybe it was not having any windows and a bit of jet lag too although if you're a light
sleeper, sounds might be an issue here technology is imbedded throughout your experience the bathroom versus mos have mo than some tv remotes this iron is completely cordless why aren't cordless irons everywhere c contrary to what you might think it wasn't started by the millennial traveller it actually dates back to when japanese workers, particularly men had to work very late at night or went out drinking after work and missed the last train home taxis are pricey in japan. tokyo's the third most expensive city for cabs in the world so it makes more sense to crash in a pod. fast forward to today where pod hotel guests are a combination of tourists looking for a unique relatively inexpensive experience and locals resting after a long day at work
>> and on that note, according today at a, paris has the highest priced hotels in the world costing $267 a night that's followed by jetta at $258 new york at $256 what were all the buttons on the toilet >> i did a lot of business in japan. that was not unusual. >> did you stay in the pod hotels >> i would not stay in the pod hotels you have to use communal johns and showers. >> they have individual stalls though. >> you get the individual stall but i mean, you know, but the bathroom, the toilet -- >> what would it take for you to stay in one of these now today. >> poverty. >> your kids would do it. >> if i was a backpacker and you want to stay in central tokyo. for a number of months did hostile thing in europe and i stayed in hostiles and they were at the time 15 or $20.
>> the point is that you can easily meet other travellers and that's the draw back. >> that's kpa i thought. >> i think something like that would have trouble in the u.s. for a lot of different reasons. >> in new york city and any of those places where, and by the way even places where people are going to go hiking and get sort of those millennial enclaves. >> space is a premium in central tokyo. >> up next, we'll thugrun roh all the lines in today's after hours trading. stay with us ♪ feel that? that's the beat of global markets, the rhythm of the world.
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circle in manhattan. this is our neighbor the relocation is an investment in it's long-term presence in the u.s. >> they always say that. no matter where they're moving oh, our move to nashville is an investment in a long-term presence on wall street. >> i don't think they can quite go that far. what do you think about that by the way? >> it surprises me that more are not doing it especially for an active money manager when your margins are tough and you have to save money, keeping people in new york city is super expensive new york s new york is expensive. >> so they can still have a fleet of people to service the clients where ever they're located and have the main headquaters somewhere else expensive. nashville may be that place and they're not that cheap anymore. >> it's not as much.
it's like access to people that want to work there. >> my concern is once you can have people working from anywhere pressure is on the most successful industry which is basically wall street, everyone is going to florida, they're going to these -- >> that's been happening -- that's been happening for the last 50 years. there's been net migration out of new york. >> what's going to happen is the northeast is only going to be cities and the suburbs but the movement has been toward central metro areas. >> even going back to the northeast if you look at the highest most expensive zip codes in the country, it's all the places in florida that are climbing it's california, it's silicon, it's tech. this might have been going on for 50 years. >> i'll be glad when everyone is
out of here. >> we're going to open up, he's going to have his own private pod hotel. you can sleep in a different pod every night. >> reminded me of those. >> explain to you what all the various buttons on the japanese toilet is. >> i can't wait until you go to tokyo and discover for yourself. >> when we look at the earnings calendar next week we're tapering off what are we taking away from this season? >> it was just enough. the market stayed more or less flat during the easternings season today was enough of a goldilocks feel to it that people said maybe we have been correcting long enough we'll at least try. >> as i said earnings would not matter they didn't really matter unless they were terrible going forward it's going to be focus on
tariffs and wages and that will be the secret. he disagrees. >> i just don't think trade is going to be make or break. >> a pleasure as always. thank you for tuning in. have a great weekend everybody that does it for the closing bell fast money starts right now. >> fast money starts right now live i'm melissa lee your traders on the desk tonight on fast, bitcoin inching toward $10,000 for the first time since march has an even bigger rally ahead brian kelly will be here plus where's the magic disney stocks are struggling despite dominating the box office but it could all change next week. why one trader is betting the stock is about to break off. but first, we start out with the market rally more than 300 points after a jobs report seemed to set fire to stock and investors seemed to shrug off this week's volatility