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tv   Closing Bell  CNBC  May 25, 2018 3:00pm-5:00pm EDT

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>> i will never. this confirms what i already knew, i'll never have it in my house, like bugging your own home >> yet, a lot of people are buying them. they knew the risk it's interesting that today's privacy day when the new laws are in effect in europe, this is not covered, amazon alexa, because it's not collecting data to sell to advertisers >> thank you for watching, have a great weekend. >> closing bell starts now. the energy trade running out of fuel as oil slips and stocks in the sector do so as well. >> i'm phil lebeau stop using cruise control immediately, a warning to millions of drivers, who is impacted, and what's being done about it >> in lower manhattan, i'm contessa brewer, weinstein pays a million dollars in bail, the rise and fall of this hollywood titan. >> in san francisco, amazon's
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attempt to shut alexa up after sending out a very private conversation do you need to turn the device off? see how deep the problem may be. and i'm kelly evans. we'll meet the ceo of a company changing sports forever by having drones pose as players. the video is amazing wilfred shows us an rv like never seen before. the "closing bell" starts right now. is the tie straight? >> it looks straight there when i walk, it darts across >> i didn't notice it, you just do >> i do. >> your head is crooked. >> every day, when i straighten it, it's the way i walk. >> welcome, everything,ed frit before memorial day weekend, the stories in a a moment, but the dow and s&p on track for the second weekly rise in three weeks, and nasdaq trying forward third weekly gain out of four. >> let's have a look at crude,
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though, right now because it's taking a big move lower, down some 4%, and dom is watching stocks within the energy sector. >> this is the most noteworthy move in the markets today. oil prices sliding by 4% in today's session, posting the worst day since july of 2017 after a massive run up over the course of the past month now, that move in oil coming after major producers like saudi arabia and russia, single, perhaps a willingness to pump crude into the market, turn the spigots open that's pressuring some big oil and gas companies, making energy, by far, worst performing sector so far today in the s&p 500. look at the a, this pache, big l company, trading in the correction level or 10% or worse pullback a few other names to watch here as well.
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conocophillips, hess, and halliburton all on pace for the worst day in four months finally, etf tracking the energy market, select ticker spider, xle, down 5% this week, finishing the week in the red for the first time in two months overall, so this is a big deal, kelly, wilfred, and one that could perhaps signal a pause in the massive runup for energy and energy stocks overall. back to you. >> dom, thank you for that it was the worst performing sector worst to date we discuss the moves now in more detail, john kilduff is here john, is that the main factor dom explained behind the move today, itself, possible extra supply coming online from the likes of the saudis and russia >> 100%, wilfred they intimated weeks ago they
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were willing to have us endure a higher price, whispers at $85 and $100 a barrel, and it looks like seeing as though they saw the potential pain in consuming countries, complaint from china, india, and, of course, president trump's famous tweet about artificially high oil prices, they may be as, dom said, considering putting more oil on the market, which, popped the bubble we've been in, and so these are losses i will tell you that the chart, yearlong uptrend we've been in is very much in tact, even with the loss >> yeah, john, i see the quote from putin earlier today saying, $60 suits russia fully is that where the market price goes then? >> potentially yes if we get below $66 a barrel, next downside target is $60 to $62 a barrel that is a sweet spot if you think about it because, obviously, the russian oil companies are doing quite well at that level, saudi, and middle
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east companies do well at that level, and most producers, even our shale producers, do well at that level it may be the new sweet spot for opec and russia in particular. >> john, will some of those opec members rethink their possible decisions to increase output when they see the share price move, the oil price move seen today, and how big a delta there is on talk of possible increase of production? >> yes that's my worry. in a different context today, president trump said that everybody plays games, and we could be at the start of a real significant game playing phase right now in the oil market because this is going to play right into the oil, to the saudi's hands in their complaints that the runup was driven by speculatorspeculatorsl market remains, if not oversupplied, but well-supplied, and worked hard over the year to balance things out they could easily pull the rug out from the sellers who sold it to today's market in a heart
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beat this is going to be a very volatile situation we're going to be hanging on every word the headline risk for the market we want up marketedly. >> thank you very much for. >> thank you >> and for dealing with the pesky ear piece. oil's rise pushed gasoline prices, you have gasoline prices, average at $2.97 into the weekend after we talked about the collapse in oil prices today. >> what rises like a rocket and falls like a feather >> i never did figure out that look how much it's up from a year ago, 60 cents higher than from this time last year g dan, it's -- you know, if the crude price fell a little bit sooner, right, or, you know, is this, you know, you think people have to get used to sticker shock at the pump for the whole summer >> oh, yeah, i think this pain in the pump is for the foreseeable future
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this may be last minute news as most people are already on the road for those who can afford to do that, with a 60 cent a gallon increase representing for someone using 50 gallons a month, for instance, and in the summer, it's higher, you're looking at a scenario of an additional $35 per average american motorist. something to consider. it affects disposable income the longer this remains, the more damage it does, bottom line to consumers the side of this is we have not seen just high prices, but it's a factor, it's up 20 cents, so it's not just, of course, the high cost, but that it's come rather dramatically, and it's that kind of situation that creates a tremendous amount of uncertainty, but it's likely these changes are we're seeing in the market today for the reasons john indicated may take several weeks to finally work its way back to the pumps. >> and looking at the last
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decade or so, is there a key pump price level that really puts people off travel plans for a weekend like we have ahead >> i think we -- we're welcome at it. $3 i think psychologically, when you see the national average hittihi hitting $3, within pennies of that within some point today, live average ticker at gas buddy said we're at 2.994 at one point. it's backed off. that's the barrier people have to consider. of course, the further west you go, higher taxes, difference on gasoline, that's near $4 a gall gallon, that, too, would have a rather significant chilling effect for a lot of motorists, and we may see that this weekend. the analysis will be, of course, in the next two weeks, was there, in fact, demand disruption given painful prices. remains to be seen i'm headed to that direction, and i think our summer interview, summer report certainly, on interviewing some of the followers, demonstrates
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40% say this price is very hard to take. >> dan, thank you so much for joining us, dan from gasbuddy.com >> in manhattan -- >> in the u.s. - >> do you know what it is in the u.k. have a guess >> it's by liter so i don't know how to process it. if i had to gas equivalent is $12 a gallon >> that's the classic way to ruin a buildup it's more than double, but not four times the price it's $6.55, more than doubled, but you ruined my game there, by going way above what it's going to be. anyway, it's 1.30 a liter. >> i don't like those liters anyway, big story today, elsewhere as well, in retail, footlocker up 20% on earnings, and gap and ross stores moved the other way, and seema has a look at the moves. >> retail earnings providing an interesting picture as to where americans are spending money take a look at gap, it's down
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14% right now, 20.7 million shares exchanged hands, about four times its daily average volume take a look at earnings. markdown of merchandise and excess inventory, the reasons earnings disappointed, but a different story as you walk here to post six, foot locker is up almost 19%, on track for the best day in six months, premium shoe brands, nike and adidas selling and gucci unveiling new shoe wear. shoes are working this retail earnings season. back to the broader markets. this is what wall street focuses on, oil prices falling, below $70 for wti crude and yields falling. no surprise, energy, the worst performing sector, now down 5% so far this week in terms of what's been working? real estate finally getting a bite here. real estate reits outperforming, rising bond yields pushed
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borrowing rates higher this year, but, of course, this week is the exact opposite. technology is in focus there was an interesting report today that said the trump administration has told congress that it has reached a deal with china's zte. kno now that's provided esp, some semiconductor deal will, in fact, happen, or get the green light from regular late eres they are moving higher here. >> seema, thank you very much. >> planning a u.k. road trip, that's a bargain everything is, like, two hours away i mean, there's nowhere to even -- six hours you're in scotland >> another big story today with the auto space is -- >> drive to scotland from london >> not in the u.k. because of the wrong side of the road thing. >> yeah. easier to train or fly not many people do that drive. >> let's get you the details on this massive auto recall from fiat-chrysler to do with cruise control. >> a warning for those people who own one of these vehicles, do not use cruise control, and
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that's immediately that's not a -- oh, when i get it fixed it's fixed, but stop using it right away. this is the recall it covers 4.8 million vehicles, and those are vehicles in the model years 2014-2019, 15 in all, and we're talking jeep, ram, dodge, chrysler vehicles involved here, some of the most popular ones again, fiat-chrysler said stop using cruise control i had a number of people say today, well, how does it compare with other recalls that we've seen from fiat-chrysler, 4.8 million recalled today last year, all of last year, they recalled 3.9 million. in one day, they eclipsed how many recalled last yearment they had problems in terms of recalls in recent years. remember, in 2015, they were forced to pay $105 million fine for mishandling a series of recalls. that's not stopped people from going out to buy jeeps or rams in fact, if you look at fiat-chrysler sales all the way
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back to when sergio bought chrysler out of bankruptcy, they have more than doubled their sales. >> phil, consider the cost of this to the firm, clearly, there's a recall cost, what lasting damage do these types of things do to the brand you said there that the sales doubled since the purchase, but individually, studying recalls, does that hurt sales going forward? >> not a huge impact, for two reasons, first of all, a number like 4.8 million, you go, wow, unbelievable well, we've been conditioned to these massive recalls every once in a while think about tacata, the ignition switch crisis with gm. to a certain extent, we're numb to it. look at fiat-chrysler's reputation in terms of dependability, they are the lowest in recent years that does not slow down sales. customers love the design of the jeep, ram is doing well, and so i question how much this will
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impact sales >> phil, great stuff, thank you very much. phil lebeau, and good news, there was not an accident that sparked this recall. >> yeah, absolutely. a privacy law takes place today in the eu. >> as you know from the e-mails you got all day or all week -- >> i got more than you signed up for all sorts of european subscriptions >> even u.s. restaurants could be affected if they have european customers come in the door or something. get out to josh lipton with a look at some of the key parts of the new regulation, josh >> reporter: well, kelly, general data protection regulation, gdpr, is in effect, so key provisions there include allowing people to access their personal data stored by companies. now they can learn where and what purpose it's used, and it's already having an impact look at the website of major american publishers like outlets tied to the chicago tribune, l.a. times, blocking access to
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welcomes from europe rather than risk fines trump telling cnbc in a statement, we're engaged in the issue, committed to options that support full range of digital offerings to the eu market some say most of the companies he covers, so google, facebook, twitter, are ready to be compliant, but the law carries risks due to unknowns around implementation and enforcement, kelly? >> all right, joshua, thank you. speaking of privacy concerns, yesterday, we told you about the amazon alexa that recorded a couple's private conversation and sent it to someone random on the contact list >> concerns arising how this incident impacts sales of alexis >> guys, amazon's already in a battle for market share in the home speaker category, and some industry watchers say an incident like this could tip scales amazon dominates two-thirds of the market right now, but the market research group projects that lead drops by 6% in two
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years while products including the google home will see a corresponding increase on the other hand, other analysts say what happened to the portland, oregon couple is so unlikely, it will not keep people from buying and using the alexa devices. since yesterday, there's new details about it it seemed to have sprung from a perfect storm of circumstances in which that oregon couple's device mistook certain words in a background conversation as voice commands amazon telling us, echo woke up due to a word in background conversation sounding like "alexa," and the conversation was heard as a send message request. she said, to whom, and the background conversation interpret the as a name in the customers' contact list. the company is working to ensure it does not happen again, but the case, of course, brings up a lot much concerns. the group consumer watchdog called on amazon to have a de
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dedicated internal privacy watchdog at a the company. wilf, back to you. >> thank you very much for that, fascinating story. we discussed it briefly yesterday. i wonder if the solution would have been if amazon had not picked a name, including a trigger word, that's so common, going for something ridiculous like wilfred, for example, that would never be in a background conversation, and they would be fine >> yeah. trying to think as many words that sound like alexa -- i guess there's enough if we accept the explanation at face value. i like the appointment, this issue would not be covered by the new regulations. >> no chance no chance anymore. >> no. >> unless it's wilfred, then i can deal with it >> you do sound like a butler. >> do i? >> the accent. >> anyway -- >> and that name works well. >> 43 minutes left of trade. it wouldn't work in my household. >> no. ever change your name
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>> no chance 43 minutes left of trade we are down by 79 points on the dow. near the lows of the session, but it's been fairly steady throughout, lower by a third of 1% on the dow, and nasdaq higher by 7 points. >> keep it here, the "closing bell" is just starting next up, is there enough fear in the market one noted stock watcher has a warning for investors, saying it feels like 2007 again. that's next. plus, our data partners at kensho shows happens after memorial day this is the "closing bell" with kelly anevs live from the new york stock exchange. we're back in two minutes. your manufacturing business.t of & so this won't happen. because you've made sure this sensor and this machine are integrated. & she can talk to him, & yes... atta, boy. some people assign genders to machines. and you can be sure you won't have any problems.
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sure. mom,what's up son?alk?
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i can't be your it guy anymore. what? you guys have xfinity. you can do this. what's a good wifi password, mom? you still have to visit us. i will. no. make that the password: "you_stillóhave_toóvisit_us." that's a good one. [ chuckles ] download the xfinity my account app and set a password you can easily remember. one more way comcast is working to fit into your life, not the other way around. skblmplgts welcome back, time for the quote of the day it's from head of restructuring saying the market environment now is starting to feel like it did before the financial crisis. >> quote, i do think we're all feeling like we were back in 2007 there was a sort of smell in the air, there were some crazy deals done you just knew it was a matter of time i mean what a great quote that we've got from this very clear message coming from him.
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however, i wonder exactly if he's right, balance sheets feel stronger than they were back then >> for banks or corporate america? >> corporate america refinancing at low levels. could be there's a big market correction to come, but you feel like they should be able to weather the storm if that happens, so maybe not quite as much restructuring business as there was. >> or valuations so high, they are a frustration point as well for the team i think we got to start adding them up. we have to mention, every time we see someone in a different part of the capital market, pay attention. >> i'm reminded that counter cyclical nature of parts of investment banking as well, which, of course, goldman sachs proved grimly in 2009 making record profits that year, and aspects whether they are trading or hedging positions or that business in restructuring, and recapitalization, banks can perform, particularly if rates rise >> it is clear
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we are in good times right now call it a peak, maybe it lasts for a while, but it's good out there. switching focus, two stocks to watch, up first, roku, changing it's tune, reversing the call on the stock sector, saying the over-the-top movement is a megatrend that cannot be ignored. share price today up 7%. if we can broad p out en out sie listing, the initial position was taken on november 28th, $51.80 at that point they've tweeted they were going to go short, and they had a $28 price target, and it's down to $35 this week before they came out with this position today, up to $38 they made money on this. read out what they said today, they said, now everything has changed, and it's time to reevaluate over-the-top is a trend we want to be in on. they have the valuation right, but the explanation around it is under hand to help people move the share price in the direction they want it to go >> and there's roku up 8%.
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three years after intel launched a series of layoffs, the "wall street journal" reports an investigation the company targeted workers based on age there's a less than 1% gain here, but this is an issue more and more workers are expected to raise as they feel targeted by layoffs for their age and not so much for their merit >> up 1% >> you're on the way outside get out of here. show us something amazing, and if he fits in this rv, you know it's going to be the nicest one you've seen. not too common in england. >> certainly not >> this clip will help what's that? >> it's a camper van >> can we get on it? >> what you'll see is nicer than the "peppa pig" version. outside for a tour of the rv rit tethghafr is
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welcome back, here's where we stand in the market, dow down 75 points today, and s&p and russell lower, and nasdaq hanging on a five point gain here christina hooper is here to talk about the market moves, a chief global market strategist at investco markets had a couple weaker days lately dow and s&p up for two of three days, nasdaq up three days of
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four how do you feel about that >> well, i think it's emblematic of the environment we've been in for a while. we've seen a lot of volatility, but stocks have held up fairly well, which makes sense given the broader supportive environment of commodity policy and solid global growth. >> is this accommodative you know, i hear more more and more people saying the fed is tightening too much now, and, you know, this is not the environment. the dollar's going up, and interest rates are going up. >> well, i think there's certainly a lot uncertainty about the fed since powell took over it's a different fed certainly, the approach is likely to be a bit different having said all that, i think we will all be reassured what we saw from the fomc minutes released the other day in terms of the fed's willingness to let inflation run a bit and almost eagerness to let it run.
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>> by "run," you're talking over 2% for the first time. the market took that initially dovish oh, okay, maybe they don't raise as much time as we thought how many hikes are you pencilling in at this point? >> well, our expectations are two more rate hikes, but depending upon economic conditions, we could certainly see a curve. it seems, though, based on those minutes, it's going to be more likely to be only two. at least, at this juncture in terms of economic conditions but that could change. >> certainly, yeah, we're seeing signs of more inflation. >> yeah. that's fair. some of the cost inflation, obviously, oil, that kind of thing, but not clear if it's sustainable. what do you think is going on with the housing market because it looks like the data, the last, you know, couple months has slowed, but prices are so high, i mean, is it slowing because it's becoming less affordable shouldn't this be an area that remains hot? >> well, that's the $64,000 question what's going on with housing
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is it certainly being hurt by higher rates rates have not gone up much, but mortgage rates are higher. of course, we have a lot of young people who would be forming households, but for they have very significant student debt that's creating something of a head wind. i think all in all, housing is going to be slow to move higher, but i think we are going to see some progress with housing over the course of the year if prices don't get too high >> yeah. we're going to talk next hour about the million dollar student loans, so that's definitely top of mind. christina, thank you for joining us >> thank you >> kries tiee christina hooper m investco time for a cnbc news update. a day after cancelling the summit with north korea, president trump, today, hinting that it could happen after all >> we'll see what happens. it could even be the 12th.
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we're talking to them now. they very much want to do it we would like to do it we'll see what happens >> elsewhere at the white house, crews are working today to fix a sink hole that opened up just outside the entrance to the white house press room that sink hole was first spotted this week following a long period of heavy rain in the d.c. area and, finally, my favorite story of the day, take a look at this this is an olympic gold medal figure skater of russia getting a gift, that three month old akita pupper begin to her by the preservation society hearing of her fondness for the breed she named her masuru, japanese word for victory my favorite. i had five akitas throughout my life >> five? >> i have, yes >> wow >> i had ginchi, bandit, kogi, dakota, and bear >> early adopter >> early adopter
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i certainly was. they shed, though. that's the only thing. you have to know they shed >> and, you know, get one as a gift, but that's a commitment. >> a big commitment. they get really big. they can get up to 150 pounds. >> oh, my. >> she's strong. it'll be fine. >> wow >> like another person in the house. >> yeah. other than they can't help with the groceries. >> right see you next hour, kelly >> all right, sue there. the dow has come back, s&p down six, and nasdaq up now, and when we come back, a tour inside this rv at least, wilf is going to show us some of those amazing features like the shower, which is nicer than -- anyway, you won't believe it that's in two. you can't always predict them, but you can game plan for them. for 150 years, generations of families have chosen pacific life for retirement and life insurance solutions to help them reach their goals.
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wac back, see if markets close for a gain for the week. two out of three for the dow, and three of four for the nasdaq the rv market gets hotter, even with the rebounding gasoline prices discussed shipments in 2017 was up 17% from the year before and the 7th consecutive year of growth what and who is behind all this demand we sent wilf outside with tim
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sullivan, wilf. >> indeed. tim is here. thank you very much for having me in this extraordinarily big rv >> my pleasure >> i'm 6'5", and there's room in here >> plenty. >> enormous. we had a look here and in the bedrooms walking down a bit to pan it out. this costs how much? what are the measurements? >> this is 700,000 dollars >> not cheap >> not cheap it's the highest end that we do have as you look at the hopeful range, we have totals that start at $6,000. all up to $700,000 the industry has everything covered. any price point you want or need, we have it >> $700,000 is a second home so there's mortgage home tax reductions why do people buy this first home, second home, or billionaires of the world? >> it's not for the billionaires very popular with people when they retire. they basically sell the home and live in it they travel around the country in these the other use that we have very
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popular, race teams, we're soer associated with temperature pensky, and very popular for those types of weekends where you want a full house to live in >> right and what we are experiencing here, the bedroom, the bathroom, now, obviously, here in the kitchen. it's incredibly spacious >> a luxury home >> people will sit in this, spend all week, i guess, what's the drawbacks? it's enormous. never in europe, but in the states even with significant restrictions with the places you can take it. >> probably narrow streets and in cities in new york it's challenging, but, frankly, they are everywhere they are designed to have anyone able to drive them they don't -- you don't need a special license. there's driver assist, it's like super auto steer on the thing, so it really helps housewives drive them, you and i can drive them easily. >> you have smaller size options as well across the fleet of what you sell >> yes >> how important are gas prices?
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a strong correlation we discussed ahead of the weekend at $3. >> for this size absolutely not for the mid-range up, people do not care they got the money they spend it. for the entree level, it's going to be challenging as gas goes up, interest rates go up, it's challenging. the low end of what we do sell, but, quite frankly, most of the activity is in the higher end anyway >> well, in the higher end, who is buying it is it -- you said a lot of people sell their homes when they retire, so is this only for people who are retiring? >> no, no, young people too. the youngest is millennials buying these -- >> not this? >> not this, they buy or rent or lease these. millennials are going smaller. they love them, though the whole go rv'ing concept took off. a lot of people believe things are cooling in the industry, but it's not at all. >> the problem is, once you experience the best, it's hard to go down, and the first rv
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i've seen this how much does it cost to rent? >> $5,000 a month. so a peek, a grand >> i'm considering it. for this, it's worth it. it's very, very nice indeed. so, bring it back for us it sounds positive >> yeah. >> your stock price down 35% >> exactly right >> what's driving that >> we're diversified we have 30% rvs, fire trucks, ambulances, school busses, terminal trucks, shuttle busses, transit busses there's a big portfolio. the tariffs have been a tough head wind we've had to manage through. when they come in place, costs go up on capital, and i think that's really the issue that we have >> and the tax -- its main inputs pushing up price or everything >> everything. everything we're selling everything domestically, it's an opportunity for chaos. we're going to be fine we're in growth pattern for the year, but less than we
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anticipated initially. >> tim, a pleasure thank you for bringing along the small vehicle to show us tim sullivan, rev group, ceo, we got another 15 feet in front of us it's absolutely enormous plenty of head room, kelly, back to you >> i can't get over the size of the fridge it's, like, any house is lucky to have that >> i checked the fridge, it's empty. we can't start the weekend early. i was hoping for some sorpt ot - >> how much does it cost to fill up the tank? >> great question. how much does it cost to fill the tank $3 today >> $3, almost $100 or half a tank, $200 for a full tank >> there you go half a tank option to meek it cheaper. clever tim, thank you very much kelly, back to you >> oh, wow, thank you, both, very much. see you in a couple minutes unless you stay there. >> it's possible it's possible. >> dow down 68 now, nasdaq trying to stay positive. a million dollar was bail price
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set for harvey weinstein today we are going to look at the financial cost of his alleged crimes coming up as we head into the memorial day weekend, time to salute the military let's look at some of the companies and stocks that are part of the country's defense, boeing right now, lockheed down 2% we'll with right back. thank you clients? well jd power did just rank them highest in investor satisfaction with full service brokerage firms...again. and online equity trades are only $4.95... i mean you can't have low cost and be full service. it's impossible. it's like having your cake and eating it too. ask your broker if they offer award-winning full service and low costs. how am i going to explain this? if you don't like their answer, ask again at schwab. schwab, a modern approach to wealth management.
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welcome back you made it back quickly i thought you might stay out there. >> i was tempted >> it was nice, to the closing bell exchange. renee norris, and gordon here at post nine, and rick santelli at the cme in chicago starting with you, gordon. what's the vibe you get on the floor today as we head into the weekend? >> well, obviously, you know, a quick look at the close, seeing if there's anything extraordinary, seems like the buys are muted as we head into the memorial day weekend, formally decoration day, take a moment to thank somebody who died for the cause >> well, absolutely right. i couldn't echo that more as well renee, in terms of what we are looking at, how best to protect your portfolio at the moment,
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would you buy gold >> actually, we already own gold yay! >> well-played talk us through why it's the right thing to earn right now? >> well, i'm concerned about inflation. there's been a number of things happening. gold is rising cpi is up. feds said there's another rate rise commodities have gone up i'm going to take a contrary position today and talk about investing in energy. i know today the markets are down based on being dragged down by energy, but i think it's a great time to step in, and you want to buy low and sell high. >> well, on gold, renee, i thought it was the meghan markle effect she had a gold ring or something. >> probably. >> just another reason >> there's so much >> it's a good crisis currency too. >> yeah. from wedding to crisis rick, talk about what you see in the rates complex and with the dollar these days.
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>> well, what an unbelievable week on the rate side. just let's take a quick gande et sovereigns you know what it was last friday 8 basis points up 39 basis points in a week that's a pretty crazy market meanwhile, the flight to safety destination, the german curve, eurocurve, two-year shots down four basis points, and bund was down 18. for all the wrong reasons. those pressures ended upcoming into the u.s. markets in part pushing the 2-year down eight on the week and 10-year down 13 basis points on the week it's going to be very hard to mount another selloff, pushing us back over 3% to 3.03%, those important levels but europe contributing by not having so
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many fires in their sovereign rate structure i don't think it's going to go away, and it's going to make mario draghi's job difficult we overtook the 94 handle going from 91 to 94 has been relatively fast. it's at the best levels on a closing basis since the 13th of november, a beig week. boat loads of data next week, adp, and bureau labor statistics look for more consolidation in interest rates if the fed was paying attention, this gives them exactly the window they need if they wanted to put an extra cut in because the market will play into it to some extent. >> gordon, do you care about what we see in the bond market or macrodata from europe bother you in u.s. equities? >> global stage or the strike in brazil, it's the currency issues in turkey, italy, europe, and,
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of course, in negotiations going on right now, which goes either way. look, the catalyst to the market moving forward is going to be the ability for american markets to expand globally, whether it's china directly or the satellite north korea, i think that's what investors are looking towards, and hoping for >> renee, talk us through what particularly you like in the oil space. you mentioned december pie eed e selloff, you like the energy sector, any particular names you got for us >> you know, i'm a big etf girl, so the u.s. oil and exploration sector is very sensitive to upwards movements or downward movements for that matter. with today's dprrop, it's up 11% year to date, and it pays dividends, so i like that. also, another sector, sub sector that helps to support that sector is the one that provides equipment and services that was also up
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finally, more boring, but paying great dividends, a great predictor of a bump in energy prices is just the u.s. energy sector i want to add a couple things. i know today is unnerving because it's been a drag on the u.s. market, but we have to keep in mind that there are u.s. sanctions on russia, which is the world's largest oil producer iran, which is the fifth largest producer, and, of course, venezuela with economic problems those are all drags on the entire energy space, so that is why i'm still very, very excited to use this as an opportunity to step in and buy low. >> final question, gordon, kelly's not going to like this, but prediction for tomorrow, liverpool, rio, madrid, the finals, it's huge. >> get on board or off the tracks, liverpool all the way. they are going to be partying, 4-0. >> that's not going to be the score, but i wish you luck >> thank you, sir. >> i hope the british team wins,
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that's tomorrow evening, thank you, all, for joining us, renee, gordon, and rick ten minutes to go, dow down 63 right now, nasdaq positive. mike santoli posts up a movie company moving big today mike >> yes one of the smaller ones. big media in the news, but wall street has liked what it heard from the more independent media companies. the details on that when we come back let's begin. yes or no? do you want the same tools and seamless experience across web and tablet? do you want $4.95 commissions for stocks, $0.50 options contracts? $1.50 futures contracts? what about a dedicated service team of trading specialists? did you say yes? good, then it's time for power e*trade. the platform, price and service that gives you the edge you need. looks like we have a couple seconds left. let's do some card twirling
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welcome back seven minutes left of trade right now, we got the dow down 52 points or .20 of 1%. nasdaq is a little bit higher. mike is posting up lions gate, mike >> yes, wilf, stock up 5% today, company reported results that basically slightly beat expectations on the bottom line, the top line, and on the cash line that's good. i think the focus is on a couple other areas, one, stock was way down year to date into this print, down from 28%, even after this rise today. a weaker slate of studio releases is one reason for that, but, also, smaller than expected
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losses in subscribers in starz cable network, and good outlook for over the top direct to consumer starz subscribership. buy the dip mentality. it's a media dpacompany more in favor today than yesterday >> great, thank you very much. up 5%. mike is switching in here in a moment, and we'll come back with the closing countdown from the floor. >> after the bell, second major recall in as many years, wondering why this keeps happening to fiat-chrysler searching for answers coming up on the "closing bell."
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your new brother-in-law. you like him. he's one of those guys who always smells good. his 5 o'clock shadow is always at 5 o'clock. you like him. your mom says he's done really well for himself. he has stocks and bonds your dad wants to go fishing with him. your dad doesn't even like fishing. you like your brother-in-law.
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but you'd like him better if you made more money than he does. don't get mad at your brother-in-law. get e*trade welcome back, big smile on my face because it's a friday ahead of a long weekend. three minutes left of trade. we are down 55 points on the dow, oil for this week, of course, oil has been strong as of late, but not the case this week it was down a little bit coming into today, but down sharply, of course, today, itself, some 4%, and there's the drop of the week, 4.3% the drop. a look at the 10-year italian bond this paints an extraordinary spike seen of late of course, pressures forming in that italian government. up some to 2.74% on the 10-year, and what does this mean, of
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course, for the picture here in fact, it's meant that rates in the u.s. have gone the other direction because people have been buying it as a risk-off sentiment there. there's the yield. well below 3%, started above 3%, second half of the week, 2.93% how does the dollar play out euro we euro weakness, performance a half percent move today, 1% over the course of the week, adding to the dollar's gains recently through the equity markets, what have they done today well, down a little, but not too much the nasdaq flat. dow down a little. there's the s&p 500 for the week as a whole the week as a whole, the s&p is still high, 0.3% higher for the week, a quarter percent lower today itself seema, main movers today, oil a factor, of course. >> oil, absolutely a big factor, but retail, reading the tea leaves, foot locker the best performing stock of the s&p, higher by 25%, followed by
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tiffany, they continue to spend money on jewelry, second best performing stock in the s&p 500, and third is ralph lauren, a mid-tier luxury stock, but a big winner for the week. i want to talk about lululemon reports next week. the stock is up 40% this year. will this be a source of strength for retail? gap reported disappointing earnings, they own athleta interesting story. >> the sector performance today, interesting to see it's consisted of real estate, utilities, being top of the pile for most of the week as well >> right >> very much playing into the slip of yields on the 10-year. >> absolutely. financials also boring, slipping a a bit. you probably differ. >> very exciting energy is the worst sector for the day, and worst sector of the week is also energy, and oil
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prices played into that. down 46 approaching the close on the dow, nasdaq with a gain, and s&p down by .20% ringing the bell here, veterans on wall street that does it for the week. end joy your long weekend. we're down 46 points on the dow. kelly's got the second hour of the "closing bell. >> thank you welcome to the "closing bell," this is how we finish up, dow dropping 60, 24,750, climbing above 25,000 this week, didn't hold it. nevertheless, positives in the major averages, two of the three for the dow now, and nasdaq three out of four. nasdaq green at 7433 on the bell s&p and dow shed a quarter of 1% today, and russell caps down a tenth of a percent, 1626, and
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2721 closing level for the broad market moves in interest rates, of course, the dollar, metals, and other things to discuss. joining me is michael santoli, newmark, and welcome to you. topping the dow for the week was intel. interestingly enough chevron lagged they are down 3% tiffany, the big winner over on the big board, s&p 500, that is. tiffany up more than 2% this week, strong earnings earlier, and best buy, same thing, earnings story down 3 partnersh.5% on the week. mike, it's interesting you said we had more holes today punched into the reinflation story >> yes >> if so, is there an unwind >> oil pulling back, yields down i don't know if it's a matter of any really fresh new information that is kind of been thrown in front of us, oh, we have to reevaluate what we thought about the markets, i think it's more the oscillation of things. you know, a little bit of moderation of growth, and, of
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course, a gut check in oil in general, what that means is within the stock market, you have that kind of e quibalance because stocks rising, others poorly -- amazon, by the way, all-time high today. >> wow >> when they they they are stealing information sending it to your contacts three days in a row, the market did not take an excuse to stay down in the afternoon. not making much of it other than to say index is comfortable in this range here, smack in the middle of the 2018 high and low range. >> amazon at 1610. mike mentioned this, but the drop in yields today i mean, when we saw you a week ago, we talked about above 3% on the 10-year, and now talking 2.92%. the home builders, lenar up 4%, and on the back, drop in oil prices, alaska airlines up 3%. this is a different kind of day. >> it's -- it's very binary, like reinflation trade, newmark
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trade worked for may, and then it just fell out of bed, and it happened fast, and it's -- >> now it's the oldmark trade. >> you have better material than that one i sold down. i sold down over the last week 30% of my overweight in the energy position. >> i know you started that, but that - >> i sold down a fair -- i sold it plus or minus 2% off the all-time highs >> yours - >> that -- >> there's that. >> that kind of size - >> you know i never talk this way. i never trade or talk this way i will show nancy the trade tickets if she's interested. i don't talk that way. >> i know. >> i think energy is going to be -- it's going to be decent the rest of the year, but it's -- it came very far very fast >> are you putting that money to work anywhere else >> no. i'm stacked to 50% in cash
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i really don't -- i don't really like anything at these levels. i really don't hard to get excited about stuff. i think you might have a muddle of a summer. >> well, i can kbgive you gap dw 14%, ross stores down 7% >> retail space is uninvestable. i'm not excited about that >> mark, anywhere to invest? >> well, as mentioned, energy looks interesting on the pullback here. oil prices and the 10-year treasury yield, it's a pullback after an advance that was violent to the upside. nothing is necessarily changing relative to the fundamental underpinnings supporting higher yields as a by product -- not accelerating economic activity, and secondly, the supply-demand balance regardless what we heard from the russian oil minister is upward particularly with the risks of venezuela and iranian production offer line. as a consequence, i look at that
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as a space to be in over the remainder of 2018, and i think software technology as well as a byproduct of the spending coming out of businesses today earmarked for productivity improvement of which a disproportioned benefit falls back to the tech space >> oil was down 4% today that's a huge drop, granted we reason up for so long, mike. >> up for so long. it did become a little bit of a crowded momentum trade it shows you -- this is a test of exactly what the premise for the move was, right? supply discipline among opec and russia, to the book trade. it does not change the overall flow where we are headed in terms of where the economy is, it's just a moderation of the view you know, and i guess, like i said, the pendulum swung >> if you are 50% cash, rally for a couple years, let's say. >> yeah, yeah. >> looking for something to just
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be cigar butts jump on board -- >> it's a weird thing, you know, because i'm not -- contrary to everything i said recently, i'm not a a market timer i'm not somebody who thinks you can get in and out, you know, who can trade, you know, oil in a $10 range. i just believe it's very, very difficult to do that yet when i look atearn iing 1.9, i look at a 10-year bond giving you now -- it pulled back, but giving you a $2.90 the extra 100 basis points is not exciting to me versus a money market fund, and on the equity side, the stuff that's worked, the netflix, the amazons, facebooks, you know, those are -- >> pointing to companies like visa and mastercard. it does not have to be fang. look at boeing >> it's hard -- it's really hard to go, oh, yeah, i'm going to
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put -- of 50%, i put 10% of cash to work in boeing. >> yeah, no, i hear ya >> it's hard >> it's been a runup >> yep >> flip side of the story, under the radar story, important nevertheless, investors watching what's happening in tturkey. currency dropping significantly. seema, where are the risks in. >> it's a huge story in the emerging market space. turkey's lira decreasing at a rapid pace related to u.s. rates. they said, looking at all countries, turkey is the most vulnerable to a u.s. monetary tightening cycle because turkey has a lot of debt, and high percentage is dollar dmon na denominated, making it sensitive to higher rates. this week, the central bank raised rates to 16.5%, but that was not enough to defend its plummeting currency. now there's experts who say
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turkey has to take other measures to support its currency politically, the president is not in a very stable pace. a lot of opinion polls show he's been losing support, and, of course, its economy, and inflation continues to store, putting them in an unpredictable position ahead of the snap election set for mid-june. look what that means for the broader emerging market global setup. they've been under pressure down 7% in three months most of it related to the stronger dollar environment, but if you break down where we've seen the weakness, you'll see it's led by turkey its stock market down 12% followed by argentina, under a lot of pain, down 10%, and russia another weak spot, kelly? >> thank you very much mu we were sitting here when that happened two years ago >> i remember that >> he used that just to further consolidate power. it's not -- that consolidation did not help the economy >> that was one of the worst
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coup attempts i've seen on my 50 years on this planet that was bad you remember that? >> i remember that >> it happened, failed, based on ten minutes. >> i don't know the ranking of those things, but -- >> i lived through one middle east, talk about that another time >> we talked about it that day, in fact. is there any risk here is this just a story about turkey getting authoritarian and mismanaging the economy? >> focus on italy than -- nor effect >> really? >> yeah, yeah. i think just because when the italy thing pops up, italy is a core member of the eu, and the fact that it's got this weird, super weird government - >> it's surviving. >> really the market is segregating these so far argentina, turkey, italy, fine, reprice it the rest is not bleeding into it >> still more focused on italy than turkey as a general rule just because, you know, just because the attention that will
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be paid to italy in terms of the eu, in terms of the trade negotiator - >> by the way, at the same time turkey is a nato partner, syria, not as important for capital markets, but we had news on an ipo pulled let's get to leslie picker >> it was not the right point in the market cycle or soul cycle. pull the ipo blaming market conditions as you recall, they filed the initial s1 almost three years ago. there's been a series of management turnover to the co-founder stepping down so it's not surprising they are pulling it now we'll see if they refile in the future, but for flnow, they say market conditions. kelly? >> what market conditions? >> that is what every company that pulls ipos say. they don't say, oh, because we can't get the price we want. >> it's one thing if it's neiman marcus, but who in the soul cycle space -- because of blue
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apron? >> they obviously did not have a lot of great reception in terms of the business model. they missed the window in terms of when there was enough buzz and momentum in the actual customer response, and, yeah >> it's the equivalent of people leaving companies for family reasons or for personal reasons. you know, it's one of those, you know, it's never what's really going on >> i like to believe them when it is the case, and same for market conditions. >> why formally withdraw it? you could let it hang out there forever. >> true. >> was it actually on the road show did they do a road show? >> leslie? >> no road show, did not get that far they meddled it a few times, but not to that stage in the process they were going out, meeting with investors, assesses prices, nothing along those lines. market conditions could mean a variety of things, could mean the equity markets are falling, the volatility rising, none of those situations are good for ipos >> it's not happening.
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>> it could mean the competitive environment as well. >> this is peak spin class this is peak spin class. >> your post-peak spin >> post-peak spin. exactly. leslie, thank you. governments around the world, meantime, are looking for ways to further regulate big tech that's the theme data check research says breaking up or heavily regular lating u.s. tech giants is harmful. you come out in defense, nick, no one mement wants to defend te guys >> two facts, s&p 500 against the emerging markets index, neither have broken out higher than their highs >> you are saying that the u.s. market has done vastly better than europe in emerging markets since the crisis >> right essentially because of the growth in tech investors are already discounting a huge premium in tech because of the leadership the companies had and business model built for the future it's important to invest to hold
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the companies together from another standpoint, research and development standpoint, they spend north of $50 billion a year in aggregates on research and development, building ai and machine learning, facing competition we could talk about deregulation if there's no competition, but there's huge competition from china where the business model is different, work with the government, they get the data from the government to help build up the a.i. learning >> america would be shooting ourselves in the foot breaking them up for "no good reason. >> if you don't like the american tech model, work the edges, but if you don't like this model, you really don't like the chinese model that's intrusive, and in the near term, gives them the advantage because they dump data and use that to improve a.i. and machine learning >> short of a breakup, though, the way the history sometimes written is, you know, the anti-trust action against microsoft with regard to web browsers got you google, right in other words, it kind of breaks this potential log jam of innovation that's now kind of
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monopolized. >> 80 billion spent just in the u.s. on new technologies there is ample opportunity >> not lacking that. >> not lacking capital or ideas or incubation process in the u.s. to build them up. by the way, in europe, they don't have that at all which is why they are focused on regulation >> this case made a couple times the president should be careful to kind of use these companies as whipping posts when, in fact, they are the one thing that, you know, it's our one competitive advantage against the rest of the world. that's kind of a political, you know, a national champion argument, which i'm sure, you know, you don't want to -- creative destruction is the better path for long term prosperi prosperity, right? >> yes >> trust the process plays its out in today's day and age >> yes, there's an incubation process here in the u.s. the only competitor we have is china, and they are doing things differently, and it is absolutely a horse race. so if people leave our model --
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believe in our model, which we do, work it the way it's supposed to work, but at the same time, not hobble companies needing the effort you break them up, those cash flows decline, research declines, and we lose that advantage. >> interesting >> yeah. >> the fact this is so much of the difference between the u.s. markets since the crisis, europe, emerging markets >> it is -- it is the difference >> yeah. >> what's so interesting is i think you step back, you go, oh, the u.s. model works it creates great companies we know what it does the chinese models, for china, has worked you can't be too critical of it given their objectives it's worked for china. the loser in the grand scheme of things is europe as someone who tried to start up a technology company in europe, although it was 18 years ago, i can tell you, it is much, much, much, much harder in europe. >> and, today, they are unveiling a new set of regulations. >> it is extraordinary difficult
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in europe to start up any companies, and i think the loser really at the end of the day is europe and its base of globally competitive companies. >> you don't put a lot of money to work in europe period >> we talked about europe as the museum economy, and it's still sadly like that. it does not mean you can't have profitable banks or profitable telecom companies, but for the world leaders, you look at china or the u.s >> mark? >> well, i don't disagree of what was said, so there's no point in rehashing that. but as it relates to investment, yes, be concerned about the space in which we had a a lead among other countries in the world. technological advancement is our star, and high paying industry, a source of good job creation, which is good for the economy, it's 25% of the s&p 500 too. >> at least.
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>> for whatever reason the big megacap tech companies were regulated, that slows down growth and corporate earnings, and then you need another sector or sectors to pick up the slack, and financials the second largest with 15% weight, it takes that and others to make up the difference, so, you know, one would have to be careful about how they tread around regulation that is good for the consumer, but at the same time, does not morph what's helped us achieve all we have here economically and globally. >> yeah. well said. nick, do you have an amazon alexa device >> just plugged in this morning. >> after the story yesterday >> probably sending messages to your friends >> i need friends, so let them get it >> alexa >> alexa, please find me some friends. >> nick, you're a brave man. thank you very much. >> thank you >> thank you for coming on thank you. >> thanks. news from california that is moving utility stocks.
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what's happening >> hi, kelly, a california bill that would require the state's ewe till tiutility companies tot wildfires made it through committee, now going to the floor of state senate, sparked an uptick in eddyson international. keep in mind utilities do not move that often so moves are noteworthy the bill was inspired by northern california wildfires, author says it holds ewe till till companies accountable for wildfire risks, but consumer groups say the bill leads to rate increases for customers kelly, back to you >> all right, another one. thank you. now, fiat-chrysler recalled 5 million vehicles in the u.s. 5 million. recalls are a recuring problem for the auto maker whether there's a bigger problem with the company next. first, harvey weinstein in court today, facing criminal charges for the first time since he was accused of sexual misconduct several months ago we are outside the courthouse with more, contessa?
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>> reporter: astonishing scene here when harvey weinstein was perp walked into the courthouse, handcuffed what's in store for the hollywood mogul? ♪ can i get some help. watch his head. ♪ i'm so happy. ♪ whatever they went through, they went through together. welcome guys. life well planned. see what a raymond james financial advisor can do for you. that i served. of the fact i was a c130 mechanic in the corps, so i'm not happy unless my hands are dirty. between running a business and four kids, we're busy. auto insurance, homeowner's insurance, life insurance policies. knowing that usaa will always have my back... that's just one less thing you have to worry about. i couldn't imagine going anywhere else.
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famed hollywood producer harvey weinstein charged with rape in a new york court today robert frank has a look what weinstein is selling to pay for his trial. we begin with contessa brewer with the latest day in court >> reporter: kelly, this afternoon harvey weinstein is out on a million dollars bail wearing an ankle bracelet. he's facing two felony counts of rape and criminal sex acts officers escorted weinstein in the courthouse in cuffs for the arraignment. that's a far cry from how we were accustomed to seeing him on the red carpet he'll plead not got to sexually assaulting two women, one in 2004, the other in 2013. weinstein continues to deny all allegations of noncon sensual sex, though dozens of women accused him. >> mr. weinstein did not invent the casting couch in hollywood, and to the extent there's bad behavior in that industry, that
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is not what this is about. bad behavior is not on trial in this case. it's only if you intentionally committed a criminal act, and mr. weinstein vigorously denies that >> reporter: other jurisdictions continue investigating allegations, and in new york, the grand jury is still convened, and looking into the financial payments weinstein allegedly made to various accusers we expect to know by the middle of next week whether weinstein, himself, will testify before the grand jury he's due back here in court july 30th kelly? >> thank you very much contessa brewer. whether he's guilty, this will be a a costly trial, and robert frank looks at what he's selling to pay for it. >> huge fall from power and wealth weinstein lived large as one of hollywood's biggest moguls, and now he's racing to raise cash. two years ago, he bragged the weinstein company was worth between $700 million to $800 million. after he was fired in october,
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the company filed for chapter 11, and it was sold at a bankruptcy for $310 million, almost all of that, or most, going entirely to unsecured creditors. for the personal financialses, weinstein had a 15 to 20 million divorce settlement with his previous wife at the end of last year, and he told his first wife he suspended child support payments because he did not have adequate funds he's sold off all three homes. he had a mansion in the hamptons bought for $12 in 2014, sold it for $10 million. had a water front estate in west port, connecticut, sold for $16 million, and a townhouse in new york city's west village, bought that in 2006 for $15 million, and sold it for $26 million. in total, all that raised over $50 million, but it does not count the more than $15 million in mortgages that he had you add up legal troubles, legal costs, all of these settlements
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could also be in the tens of millions of dollars. guys >> all right yeah at least he had some resources, i guess, with the properties robert, thank you. >> thank you >>. more is ahead, stay there, and stay with us right here on the closing bell do you use cruise control? don't move one of the top auto executives on a major recall. plus, the head of a company changing the way the world practices. are robots good for the game wait until you see this. the closing bell with kelly s bk t mutines live from the new york stock exchange for your heart...
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you'll only pay $4.95. fidelity. open an account today. fiat chrysler recalling nearly 5 million vehicles in the u.s. because cruise control may not be able to be disengaged by drivers. it closes lower at 2%. bob lutz is here, ceo and chief operating officer at chryslerment welcome to you. wondering, look, this is the second time in two years for a massive recall there what's going on? >> well, recalls that are kind of a way of life in the automobile industry, and usually companies jump on them as early as they can in order to keep the numbers down, and, frankly, not being in the industry anymore and not being with chrysler, i don't know what happened the thing to remember is this is a numerically large recall
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because they use the same cruise control in everything they make, but in terms of expense , it's not big because it's software related. it's a software glitch somewhere. they'll find it. matter of reflashing the software at the dealership, probably no parts involved meanwhile -- >> you said this is big in terms of numbers of vehicles, 5 million, of course, but not in cost or human lives. >> it's not a big deal -- no reported accident or injuries, no deaths, and chrysler vehicles are perfectly safe to drive. chrysler just said that people should avoid using cruise control and hopefully most of them will until they find the flaw at which point they reflash the chip and all is good again my guess is this is not going to involve any new parts. >> bob, you put in good context
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there of what it really means in terms of drivers' safety and company expense, but do you think it's going to have an effect, because we're talking about vehicles covered by a recall made by fiat-chrysler, affect people's perception, reenforcing perception that quality is an issue there? >> you know what chrysler has been the o-average on quality they have -- it was when i was there. we tried to fix it they always rank near the bottom in j.d. power surveys. they are no higher than the poor middle they are usually below average in terms of customer acceptance in the products, it just not make a difference. why that is -- >> i was going to say, let's dwell on this. you are basically saying that it's just a fact of life that chrysler -- that's an extraordinary thing. they can't get the quality up, and yet they keep selling jeeps and dodge rams and stuff >> well, they do have quality. i was about to make the point that today the difference is
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between the best manufacturers and the worst are so minimal that you'd have to -- you'd have to own a hundred cars of every brand in order to get the statistical difference in failure rates of components, and that's why, you know, the dodge or the ram pickup is hugely popular, jeeps are hugely popular, selling around the world, and the average customer who buys those is aware of the fact that these quality differences between the best brand and the worst brand are like, you know, a tenth of a repair per hundred vehicles, so -- or tenth repair per vehicle, so to most people, it just doesn't matter. >> so, bob, just backing this out to the broader context, so this week, the trump administration is considering auto import tariffs. that sounds like for gm and ford, that hits them because they import a fair amount of
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cars, so how would that work its way through. does it help or hurt you how does it shake out if it comes to bear? >> well, look, whether you like tariffs or not, we don't prefer a world with free trade. industrial partners, including europe, have -- europe has automotive tariffs four times ours we're the only country in the world with a 2.5% tariff china was 25% under the threat of a trade war they made a concession and said we're going to cut it in half. it's still pricey. >> we have them on, like, trucks, not passenger cars, but protect those trucks >> oh, yeah. the -- certain categories. that's been there for a long time, and that one should probably go away >> yeah. >> my point is, if industrial nations are going to have tariffs on automobiles, they should all be the same
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that's why the president is throwing that 25% figure out that's just to get everybody's attention. i think what he wants to do is get the european union to come down off of their 10% and fix all other restrictive trade practices on automobiles, and the same with china. i'm very grateful that somebody is finally taking a look at leveling the playing field because up until now, oh, we are big and powerful, our industry is the biggest in the world, yes, yes, a couple cars come in, so what, 2.5%. and 50 years later, over half the market is foreign brands, many imports by the way, gm and ford do not import have many cars. look at the total volume sold in the united states, i think it's probably 2% or 3% max. >> i imagine if we try to help them, they would make a way for it to happen bob, good to talk to you
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>> and to you, thanks. >> bob lutz, ceo of that and former president of chrysler time for a news update, sue? >> kelly, thank you. here's what's happening at this hour, everyone a school shooting in a middle school in suburban indianapolis today. one student and one teacher wounded in the incident. one student saying a science teacher tackled the alleged shooter, a male student, now in custody. the teacher was shot three times and is currently in surgery. police in austin, texas several 6 solved a cold case murder nearly 40 years later. travis county grand jury indicted michael anthony galvin for the murder in 1979, and accordsing to the police, it's the 28th cold case murder that's been solve by police and the district attorney. a 10-year-old boy from chicago says he's still shocked that he was bitten by a shark while visiting a south carolina
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beach. the boy was boarding at the iowa palms when he saw a fin and felt something bite him he was rushed to the emergency room and later released, but with 26 stitches visa says that it will stop running ads featuring morgan freeman's voice, accused by several women of inappropriate conduct. in a statement to nbc news, freeman said he would not, quote, willingly offend or knowingly make anyone feel uneasy, unquote. that's the update this hour. kelly, back downtown to you. have a great long weekend. >> all right, you too, sue, thank you very much. sue herera there big tech left the market and feels like over the last several years. how much further will tech keep going? the future of football is looking a lot less human how robots are becoming an increasingly common sight on the practice field for nfl teams stay with us
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power shares trade after hours, up fractionally, up 7%, over the past month, a big month. far outpacing the rest of the market in that 7% rally. ahead of fast money, guy is with us live from the nasdaq, flying solo, guy? >> i am for now. what would you like to talk about? >> we want to know, we talked about this with nick in the beginning of the hour, but big tech, it's basically the difference between the u.s. market and europe and emerging markets since the last crash, and now it's up 7% over the past month. just keeps going >> i think it could absolutely keep going i think the broader market staved off the lows a couple times at 2580 level in the s&p people are coming to grips with the reality that for many of the large, many of these large cap tech stocks, valuation is republican, and there's growth, so to answer the questions, yes,
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i think big tech cap continues, but on the other hand, jumping over here because there should be two of us, in terms of name, microsoft is interesting mic microsoft was a battleship in the middle of the ocean floundering. they changed course, turn on a dime, and now look, they turn themselves into the best, quite frankly, cloud place out there microsoft is really interesting, and salesforce.com, despite their valuation, has a moat around the business in a way amazon has as well looking for two names in particular, you know, guy gave me the macro, and this guy's giving you the micro and the granular trades. i think both microsoft and salesforce are interesting >> did either guy convince evan he needs to put cash to work in that space or names. >> oh, i mean, guy has done what a trader would -- he's gone to the -- what most people perceive as the more highly valued company like sales force, and for years it has trades off the
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charts i agree with guy, there at a the time of the ipo, and i remember -- >> you witnessed it? >> we were in -- we were in a co-man -- one of those people not actually running the books sort of thing, but i remember it very well at the time, and it has ever since -- there was a brief time during the crash, i think 2008, salesforce was $10, and them it's run up again, and it's always -- >> you missed it then so not buying it now? >> it's just a stock that trades at crazy multiples >> interested in guy talking about a battleship turning on a dime and still having a moat you got to run me through. >> too late on a friday. i'm giving you that, and - >> unfair, just kidding. >> what was evan's story about being involved in a coup
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in a south american country in the '70s is that classified >> it's a long story, guy. >> the answer is probably russia for any question >> no, that was the -- that was the answer on that one >> these days, you better be really careful just saying. >> people -- i know someone who has questions for you. >> a person of interest. >> a person of interest. >> not answering >> great job playing yourself and both of you. >> yes >> see you and everybody else coming up at the top of the hour, have a great weekend appreciate it. well, it used to be a million dollars was what you won in the lottery. today, it's what some people owe in student loans, and the list is growing that story is ahead in today's take away. up next, though, how robots are helping football teams from the nfl to college tackle concussion problem that's hurting the 'lte y wel llou (baby crying)
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ask a financial advisor about pacific life. welcome back robots are getting off the sidelines into the game. last week, we showed video of robots used in nfl practices alleviating the amount of tackling players experience in practice, and they could help lower the chances of concussion. they work with teams from high school to the nfl. where do they plan to go next? joining us is joe, the ceo of virtual mobile player, joe, welcome to the program >> thanks, kelly, thank you for having me. >> how many of these robots are out there right now? >> so we've sold about almost
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250 units over the last year and a half >> so that's a decent clip given that -- what are teams doing just need one, one to match up to every player in practice? how does it work >> by level. so, you know, pro-teams will have kind of more wherewithal, coaches to run drills so they have four units to seven units college team will have anywhere from two to four, and high schools typically have two you really need two to run some of the basic drills that mvp helps you train your players with >> how can these robots take such a beating? translate that to vacuum cleaners and other applications for toughness, joe >> well, i don't know i've been that close to a vacuum cleaner the -- it's the technology that's really in the bottom of the robot, so the motor and what battery and what drives the
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wheels, so the top is a foam form and soft. when the player hits it and lands on it, there's no impact whatsoever so that's what creates this safe value and safe utilization >> how much do they cost >> well, the one we have on the market right now is $8295, and it's sold through rogers athletic, and we have a youth version to be used for those under high school age coming out in the summer and fall >> are there going to be applications beyond football like in baseball, basketball, and other sports do they need technology like this >> you know, they do the easiest transition from football is rugby, where tackling takes place as well, and we've had a soccer team, the football federation of france bought four for soccer we've had vanderbilt university
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buy one for baseball we've had colorado avalanche reach out about using it for hockey, and we've had the cleveland cavaliers as well as the university of minnesota ask about basketball they need some tweaks to make them work effectively on the ice, air jordans on their feet on the court rather than wheels. we have work to do the easiest transition is on the field, so football, rugby, soccer, lacrosse >> just to make a practice squad in the nfl is a huge deal. these -- >> yes >> put a couple guys that would like the honor of getting whacked, you know. >> they would. that's the path to the roster, right? you don't get paid well, it's obviously not a fun duty if you're on that practice squad, playing the other team >> no, joe, last words, and you can go what do you think about that what about the guys doing the robots' jobs >> well, you know, if you think about it, it actually can work
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to one of the team -- one of the teams, the steelers, the first team to use it in a drill, which was to save players' legs. when you run kickoffs, running 11 players down over and over and over again, it wears guys out. save them for the good practice time in the season for game time, so it helps kind of save legs for the team. i don't think it takes that many places for those fighting for a a spot >> cavaliers have to save lebron's legs, 82 games this year with another one tonight. joe, thank you very much for joining us >> thank you, appreciate it. >> joe mclaughlin talking about the robots you may now see on playing fields what's in a name everything else the high stakes smart phone game next, today's takeaway, essential news about the essential phone you might want to hear about.
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welcome back it is time for the takeaway today. we begin with the million dollar student loan yes, there's a 37-year-old orth don fist in utah who owns $1,060,000 in student loans and since he only has to pay about $1,600 a month towards this, the debt is growing by $130 a day. so in 20 years, his loan balance will be $2 million this is all documented in "the
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wall street journal," guys i'm convinced -- try to convince me out of it, we are heading for a mass student loan bailout. >> there might be. although i think stories like this at the very extremes don't really tell you the story. this guy could, by all the information in the article, pay more than the minimum. >> but why do that if you don't have to? >> well, it's demoralizing because you're never going to get ahead of it. >> and the article goes on to substantiate, he's extreme but here's the real problem. we know the figure is already over $1 trillion and i wonder how much is going to fault on the taxpayer >> in the form of getting written down it's not like we're going to start handing out checks to people >> i'm sure there's going to be forgiveness up and down the wa zoo. don't you agree? >> the interesting angle to this is there are a lot of elite schools which basically now kids go to and they walk away without debt so you want to talk about economic disparity that's being created. you know, people who go to
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community colleges are the ones that are carrying the debt people who go to harvard, they come out -- >> state college >> state colleges they come out with a lot of debt but if you go to harvard or yale and are very talented you usually get a free ride nowadays >> the bulge of debt is still not going away, but i don't think you're still at a point where tuition inflation and easy student loan debt and everybody deciding they had to go to college because the job market stinks not there anymore. >> college seems like a crazy place these days next, remember the essential phone? it was launched last year by android co-founder andy ruben. it turns out there's not much to remember because the company is reportedly up for sale and has canceled development of that phone. sounds like they need more capital, scale, maybe a deeper pocketed backer, or they might pursue other categories. what do they do? >> even a better mouse trap with, it seems like it can't crack through. >> not so essential. >> you went for the obvious. >> that was the obvious comment.
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>> finally, nike is reportedly going to win the mlb's uniform deal beginning in 2020 they will replace under armour which couldn't keep the sponsorship going because of its own financial problems with a source telling them, quote, it's just not affordable for under armour anymore >> basically it does represent under armour scaling back its ambitions. it was bidding for every sponsorship when they were riding high and obviously just not worth it to them at this point. >> i'm just glad somebody wants the baseball deal. >> you don't think it would even be worth it? >> it's not like basketball where it sells shoes to everybody, right >> i guess but michael, this is your sport. >> i'm saying, that's why i'm glad that somebody wants it. >> i didn't -- >> call george constanza to get them cotton uniforms for everyone you remember that one? >> it's a deep cut, but i do, remember, yes. >> we'll break down today's big afterhours headlines 'lbeacin ment. pah! that will never work.
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no, no, no, nah. a bulb of light?!? aha ha ha! a flying machine? impossible! a personal' computer?! ha! smart neighborhoods running on a microgrid. a stadium powered with solar. a hospital that doesn't lose power. amazing. i like it. never gonna happen. still nervous [about buying a house? a little. thought i could de-stress with some zen gardening. at least we don't have to worry about homeowners insurance. just call geico.
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geico helps with homeowners insurance? good to know. been doing it for years. that's really good to know. i should clean this up. i'll get the dustpan. behind the golf clubs. get to know geico. and see how easy homeowners and renters insurance can be. this is where i trade and manage my portfolio. since i added futures, i have access to the oil markets and gold markets. okay. i'm plugged into equities - trade confirmed - and i have global access 24/7. meaning i can do what i need to do, then i can focus on what i want to do. visit learnfuturestoday.com to see what adding futures can do for you.
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welcome back here's a check on your afterhours headlines soul psycycle has withdrawn its
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plans to go public they cite market conditions. we say it's post-peak spinning crude oil has posted its worst week since february 9th. it dropped 4.5% today on supply news, let's call it, that russia might be comfortable with $60 and that others might be comfortable pumping more a california bill that would require california utility companies to submit preparedness plans to prevent wildfires made it to committee. it is possibly seen as raising utility bills. sorry, california, again utility index up about half a percent on that news anything else you think is important to flag here >> utility index probably up because bond yields down quite a bit. >> which is something worth noting >> during the day today it was certainly like you said, it feels like it's been a reversal of the recent trend. >> it is it has been. it has been a reversal you know, the market giveth. the market taketh away. >> you're finding nowhere to put money. >> i can't find anywhere to put
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money. >> 294, february 21st. now we're at 293 >> we punched above 3% >> a good time for me to go play golf in scotland i'm going to scotland next week to play a little golf. >> are you not going to be here for example friday >> no. >> doesn't trump have a course in scotland? first the russia coup. >> connect the dots. >> have a great weekend. have a great memorial day. that does it for us. "fast money" starts right now. right now live from the nasdaq market site overlooking new york city's time square, i'm melissa lee. your tradesers on the desk tonight on "fast money" bitcoin singing the blues, down 20% from its recent high on its longest losing streak since september. but blockchain capital spencer bogart citizen the crypto world is photoing the wrong coin later they say diamonds are a girl's -- i mean trader's best friend tiffany's posting its best week ever, up 25% so how much higher can it

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