tv Closing Bell CNBC May 31, 2018 3:00pm-5:00pm EDT
are oasis in the big cap sector. look at this, the jack dorsey company is fairing well throughout the market volatility for the year and for this week >> a hunk of the next program i devoted to the question of the day, tariffs, and retaliations coming >> thank you for watching "power lunch. >> the "closing bell" starts now. here's what's coming up. a tariff tantrum, markets selling off as the u.s. imposes steel and aluminum tariffs on its allies who wins who loses? we assess talking to real business owners affected by today's action i'm kelly evans. investors looking outside the box. shares of the storage firm sinking today despite the earnings beat, and the ceo joins us to make his case. >> reporter: in los angeles, i'm phil lebeau, a big opportunity in autonomous drive technologies, what companies cash in, and are the investments worth it i'm diana, floods, winds, and rising tides i'm taking a deep dive into how
the city of boston is facing big risk to its real estate. i'm here to talk world cup here in the "closing bell! ♪ >> oh, if you didn't make the connection there, you will get it shortly that was awesome >> that was awesome. i can't wait for that particular section. wha actually, the whole show, but there's soccer >> easy tiger, easy. welcome, everybody all the stories coming up in a moment, but, first, let's check on the markets, stocking falling today, fears of a trade war intensifying, of course, with all that happened today, u.s. imposing new tariffs on the top trading partners dow is down 220 points >> let's go live to washington >> reporter: reaction from the canadian side, the prime minister justen trudeau coming out in the last hour or
thereabouts offering indignant reactio reaction here's what he said. >> that canada could be considered a national security threat to the united states is inconceivable. these tariffs will harm industry and workers on both sides of the canada-u.s. border, disrupting linked supply chains that made north american steel and aluminum more competitive all around the world >> so he made news on the nafta front saying he'd received an offer from the united states, close to a deal, he said, until the united states insisted on one element as a precondition to any meeting here here's what he said. >> the united states said as a precondition to us meeting and negotiating, we would have to accept a sunset clause i said, we could not accept a
sunset clause in nafta as a precondition to meeting or as any sort of condition. >> so that sunset clause has been controversial for a while, something the canadians and mexicans rejected saying it would increase business uncertainty. thereby, an indefinite deal and looks like based on that press conference, the deal is a distance away. when wilbur ross announced these tariffs, they said they would await reaction from this on canada, mexico, and the eu we've had reaction, uniformly negative from all three entities the question now is whether ross gets to the negotiations he raised as a responsibility this morning in a call with reporters, he'd like to have continued ongoing negotiations of all of fronts with all of these foreign allies we'll see whether they can get to that, given the level of indignation we've seen from some of the allies so far today, guys
>> eamon, clearly, the u.s. administration weighed out the potential market and impacts of the tariffs over the last month or so. do you think they potentially underestimated the diplomatic impact, particularly based there on the indignation you pointed to in that first bit by justin trudeau, close allies, and now told they are national security threats. >> reporter: i don't think they underestimated it and knew what was coming i talked to a source familiar with the decision this morning in the 6:00 a.m. hour first reporting this was likely to come this morning, and the source told me that the eu was expected to retaliate. the u.s. knew retaliation was coming they knew it was possibly coming today. they did it anyway the reason is because the president feels he promised he would do this on the campaign trail, rebalance the trade imbalance that he sees around the world. also, because he's making a calculation that this is better for domestic american industry than the cost, in terms of rising prices and damaged or
frayed relations with foreign allies, so that's the call cue louse the president made here. we'll see over time if that is right. >> great stuff, thank you as ever, eamon javers inpacted by r dom. >> they spoke about the calculation what happens, who benefits more or less from the trade moves. remember, he spoke about the canadian response in the last few minutes or so. we got the mexican response as well saying they are responding in kind with testify rariffs of own for $4 billion of goods, covering pork, agricultural products, and steel as well. so that's going to be an issue canada responded with a list of possibilities of what nay could do mexico has now responded we are now waiting for the eu to say something. this was the eu list from about earlier this spring when they said, hey, we could look at these particular items ten pages worth of items in my
happen right now look at the companies. they are the outsized beneficiary on a relative basis. i say relative because throughout the course of the day, it weakened u.s. steel for the proxy of the u.s. steel makers out there. it was higher earlier on the other one, aluminum side of things, u.s. steel trending lower, and aluminum, century aluminum, up 3.5%, but off session highs we've seen look at this chart of the year, trend lower over the median term as well. as for the goods affected, european side of things, we await a formal list here, but back in the spring, they laid out a number of items that could be targets for tariffs among them, whisky, think about kentucky bourbon, that sort of thing, the denim manufacturers out there. a lot are small and mediimmedim businesses in the united states. motorcycles, think harley
davidson, and sail boboats, yac, and speedboats some of the companies could be the most affected by possible eu retaliation for these products another thing to watch, the action right now in the currency market side of things, the peso as well as the canadian dollar, dollar cad, those are places where you see some of the most mediate reaction coming from the trade issues now, guys back over to you >> and harley davidson down 2% today. obviously, down this year, but hogs still taking it on the chin a little bit with the concerns >> interesting elsewhere the dollar's weaker against the e o euro and pound this week really playing out against the peso and canadian dollar >> dom, thank you very much. now, what could a trade war mean for steel and aluminum makers here in the u.s.? joining us now, the ceo of decleman industries and gray construction, you named your companies after yourselves you know, i -- anyway --
>> should change it. >> no, we shouldn't. barry, welcome, starting with you, and you -- you applaud this, right? what do you think is going to be the effects, you know, day one, and from now on? >> i applaud the move of bringing trade to the forefront. it's unfortunate that canada's involved in this and mexico as well we'd like to come to a nafta deal, a proper nafta deal in an appropriate amount of time and up fortunate they have not been able to do that so president trump forced the issue that's what we see here. we operate on both sides of the border in canada and the u.s., and so it's going to have an effect on both sides overall, i think net-net, it's still a positive for our industry, even if this continues on for a long time, which i don't expect it will >> steve, are you concerned your construction business will be negatively impacted by this, and in particular, in what way >> so most of the prices that we're dealing with, we think
that it's minimal impact to the projects, but what we see and are concerned about is creating almost a hypersense of trade negotiations to where foreign companies don't feel comfortable coming to the united states, and 70% of the business is foreign companies coming to the united states to manufacture, so that's probably the biggest concern >> one of your clients is mercedes, stephen, i believe, building plants for them, possibly linked in because tariffs on cars has been spoken about. have you spoken to them, their sense over the last month as trade disputes have elevated >> no, we have not spoken to them, but we worked with a lot of foreign oems coming to the united states, and that's what i really want to think about is how does the united states continue to be a friendly
company, country, or capital destination? that's our biggest point here. >> barry, i wanted to get back to what you said of production on both sides of the border. >> sure. >> canada came out and said they will retaliate how does that affect you guys? >> again, we ship products both ways we'll probably have to move production and isolate to facilities on either side of the border to avoid tariffs going into the u.s. and canada, but to stephen's point. many companies want to come to the u.s. the u.s. is the most open market in the world, and that's why it's here, but it's also why it's been taken advantage of, and we have to tweak that somewhat we have to tweak it with canada, more so with mexico, and, of course, more so with china and others you can't have chronic trade imbalance. $800 billion trade deficit year over year is leading us down the path of destruction. we need to change that
we need to equalize that somewhat, and president trump is tired of waiting around and m e making this happen over three, four, five years, ten years with what people promised he wants to force the issue today. he's a deal maker and wants to make it happen, and, no, it's not perfect, but we're going to get somewhere. >> no, barry, we know the kind of intent of this, and why the president's doing it >> sure. >> but it's just more interesting to hear about how it does affect your business, and you're saying you're going to do less trade across the border, right? >> yes, we'll try to ship less across the border, and isolate it into the home markets, and still, obviously, here's a net importer into the u.s. from our canadian plant, more than we are from our u.s. plants into canada, so it's going to have an impact on us, but, you know, i assume we'll be able to absorb some of that, suppliers help us, canadian dollar weakening helps us as well, but it is what it is i don't believe this to be a long term ordeal, i really don't. >> all right that remains one of the big
questions as well. how long this will go on guys, thank you, both, barry and stephen. >> our pleasure. to the impact on the markets. joining the exchange, we have antwan, steve grasso, and our rick santelli at the cme in chicago. steve, starting with you, if i may, in terms of market impact today. yes, we are lower and lower week to date, of course, but perhaps it could have been more to the downside >> exactly where i would have start eed off as well look at the headlines and the tape you'd thaw we'd be down dramatically differently than what we are downright now. i think the market is pricing this in saying this is is a little bit of an art of the deal where he's trying to get a deal done on nafta, and we heard from trudeau he wanted to hold out on the sunset clause so this seems straightforward to me why the market is not down more, and i
do believe that this is the art of the deal. we've seen this before, and i think that the market is probably just saying, let's just wait a little before we really collapse the entire macro markets based on this. >> i mean, are we more focused, even though this particular action is against china and canada and mexico and the eu, is the market more focused on the china issue? >>eni i think the market was focused on china china is a much bigger deal than this >> right >> we've already kind of shirked off a lot of the china trade worries in the past already. >> even though they came back to the floor in the last couple days >> yeah. i don't think there's going to be issues with the market trying to digest this because we have been there, done that type approach, so they are going to wait until they really feel the pain versus having the market be the leading indicator, which is what it normally is. >> right >> rick, the reaction from currency markets, i guess, also relatively muted, aside from the mexican peso and canadian
dollar, the dollar more broadly, not doing too much >> no. as a matter of fact, the two, three days of volatility exported from italy affected the markets in a much deeper fashion than anything on the trade side. i know it's uncomfortable, but i do think there is -- there is a positive side to this, although, i have not heard very many mention it in the end, it's just like a strike companies lose on the strike the striking employees lose on the strike, but both are in it knowing they are most likely going to end up worse off in the here and now in the short termism of the moment for benefits in the bigger picture listen, we don't know what's going on behind the scenes we have no idea whether it could end in 72 hours or 7 2 days, bu as everyone expressed, it seems as though the market is still rather okay with it in terps ms where the equity markets have
stopped, close to 245, and lofty levels and interest rates are trading five, six points lower just 24-36 hours ago based on the italian markets, which, by the way, i mean, the reversals have been stunning in italy, stunning i mean, down 63 basis points to a yield of 1.07, almost equal to the remaining amount of yield left truly huge i think that we're going to be grappling with a lot of the issues for a while >> on that note, we, of course saw banks get hammered when this blew on tuesday, and now they have not fully come back yet where's that leave you >> well, leaves me with a buying opportunity. i think there's -- things are fantastic. think of the fact we have a growing economy, fed raising rates gradually. you've got regulatory relief with the bill just done. we could see more mergers in bigger companies saw m&a last week of a good scale. so i think it's a really good
time to own the financials they traded good december count to the s&p >> top pick amongst the u.s. banks? >> i really like ibtx in texas, one the buyers last week, buying a bank in colorado, strong market share in denver think about the two markets, i mean, dallas, denver, houston, you know, growth parts of the u.s. economy is growing much faster than the rest of the company. i like that company a great deal >> all right great stuff, thank you, all. 45 minutes to go into the close. still ahead, jim cramer voices concern this morning. >> the only weak technology i think is actually is, you know, if you just have one little nick in tech, it goes down. we're getting exclusive
reaction from the box ceo aaron levy to cramer's comments and the stock drop ahead >> do you know this call >> goal! >> that's live, by the way >> and that is excellent that's the famed world cup broadcast er talking to him afte the break. >> saying that a lot in england's game >> you're hoping you're so excite the for the interview. >> i am. that
. welcome back, fourth minutes left of trade and lower. here's the biggest laggards. staples are suffering today, and we got industrials following the trade. caterpillar is down 2%, and verizon and walmart down 1.5%. >> watching that into the close, and two weeks from the world cu in russia. 500 hours will be airing >> if you are a soccer fan, you
realized the famous "goal" call before the break he is joining us now, serving as league commentator for the network coverage good afternoon to you. >> thank you for having me >> great to have you with us, across telemundo, every single game is live >> every game is live. 1500 hours in our digital platforms, this should be a great world cup. unheard of unprecedented hispanic television >> and, of course, we're super excited about the competition. to what extent, though, is it a blow to ratings, the fact we have not got the u.s. qualified and other countries, not enough excitement around it >> obviously, we will all miss the u.s. national team, but, the fact that the u.s. is not there is not going to hurt us much we have all our latin american teams there, hispanic countries, every root, so there's excitement and stories in all
the groups and throughout the competition. >> how does it work to carry games live scheduled in russia at odd hours? who is the primary audience? >> no. they are scheduling in russian time, so it will be at 1:00 p.m. their time, and 3:00 p.m., 8:00 p.m., and early on here, early in the morning, eastern time, and very early sometimes first game in the west coast they will have stadiums in 11 cities, it's a big country, a big task, but we're ready for it >> you know, england's game kicks off at 3:00 p.m. >> russian time in. >> eastern time. >> going to be a problem for them with the show >> oh, because you're busy at 3:00 p.m. eastern time >> clearly, the conference in russia, geopolitical tensions high with russia at the moment does that affect the tournament in any way you traveled to russia in the buildup, soccer as a sport unite rather than divide people? >> we hope it unites we've seen in the last winter olympics, i'm not hear to talk
politics because i'm not an expert in it, but i know what's going on in the world, and i hope nothing happens in the world cup. i think it's the most secure world cup ever because everyone who gets to go is going to be identified through what is called a fan id. if you have a match ticket, you will not be able to get in the stadium without the id that's like a visa you have to enter all your personal data. they will know more about you than we all know, and they will know who is in seat 4a, row 11 hopefully nothing happens and live through a great world cup >> away from the world cup, this is the biggest sport in the world, money in the sport in the game in europe is through the roof money like nfl is through the roof, but soccer is relatively small. is it catching up in terms of the mls franchises will they rise in value over the next decade do you think >> well, the problem is that, you know, the ncaa, nfl, and nb
have tremendous rights in the u.s. because, obviously, it's our market and fifa rights, in regards to the values of the american sports, they are, you know, we paid a lot of money for the spanish win, which are rights, obviously, but broadcasters around the world are not even near to what the broadcasters here in the u.s. pay for the nfl, nba, et cetera. it's catching on soccer is very big in this country, you know, and analysts -- >> well, but - >> great ratings on television as well. >> on that note, a team or player to root for i got nothing. >> arian gene tee th-- argentina >> that's your team. >> or portugal >> thank you >> a couple games on the small screen here. >> on telemundo. >> no doubt about it pleasure to have you here. >> thank you very much
35 minutes until the close, dow down 200 points, there you have it. s&p down 13, nasdaq down 6, russell down 11 today. dollar store stocks hit hard what's behind the move and what it says about the consumer coming up. and box crushed today despite yesterday's earnings beat and last month, one high profile investor announced he was making a big positive bet on the stock. if you believe and if you care about artificial intelligence and its role in the world and your ability as a public market investor, what i tell you is be long amazon, be long google. ahead, a first cnbc ceo interview aaron levy how to win over investors six in the morning.
welcome back, a look at a couple individual stocks to watch, first up, deutsche bank after report from the "wall street journal" it's been given, quote, troubled condition status by the fed big share price move, down 4%, was 9% earlier things in its favor, it was brought on a year ago, continued operating fine in the past year despite that, and it's also just on the u.s. 10% assets, but the flip side, terrible timing when people consider systemic risks and questioning banks.
does not help in terms of selloff. backing their way out of investment banking, and this headline hurts them and ability to do that >> how small they are too, about the market cap extraordinary. >> below 20 billion. >> wow >> record low for the share price all-time >> wow >> highlighting how tough the situation has been >> just over 11 bucks on the u.s. listing next, discount dollar stores, tree and general, falling today on weak earnings dollar tree down 15%, cutting full year earnings outlook, and dollar general down 10%, and same store sales said in cold weather, people think, oh, the economy's strong, the companies should be, that's not the case they correlate quite well with consumer spending. this is a big blow, and may be due to product mix and pressure and other things >> down sharply 10% and 15% time for a news update, sue? >> this is what's happening at this hour. secretary of state holding a news conference in new york
after meeting with senior north korean official kim yong chol in hopes of reviving the summit in singapore. pompeo says progress was made. >> chol is planning to travel to washington to deliver a personal letter from chairman kim jong un it's a historic opening to boldly leave the united states and north korea into an era of peace, prosperity, and security. connecticut governor daniel milloy signed legislation that bans bump stocks in his state. it took place at a connecticut high school. bump stocks modify a gun so it fires like an automatic weapon the new law makes it illegal to sell, possess, or use those devices. zidane stepping down as head coach, five days after winning his third straight champions league title, signifying the top
soccer team in europe. he said he's retiring for the good of the team, but it was a shocker. no one was expecting that. that is the news update at this time wilf, kelly, back downtown to you. >> and that's our quota for the week, no more soccer stories wilf will watch the cavaliers and warriors >> play whatever you want in the news update, especially more soccer >> i couldn't agree with you more because i love it >> me or kelly -- oh, fantastic. >> i do, i do. >> more to come, the more to come >> sorry, kelly, sorry, i'm glued to european football i even call it futbol. >> there we go >> i'm speechless. >> i always loved sue. >> always loved you too, wilf. >> sue, the brilliant sue. >> shares of box down 7% despite beating estimates last night
announcing box as the no. 1 pick for the year. >> 3.3 billion dollar company with a huge margin of safety, one of the cheapest stocks around, and it's growing at incredibly fast right, and when i think about the businesses, i think that this is possible. >> growing from a $3 billion to $30 billion? >> in ten years. >> not so much today joining us in a interview is box ceo, aaron levy, welcome to you. >> it's a one step back, two steps forward situation. >> the stock's done well >> yes >> and dropbox made a debut reminding everybody about the virtues of the stake, artificial intelligence, and so what happened in the quarter? >> yeah. actually, you know, we thought the quarter well pretty well beating revenue eps cash flow targets, beat consensus for buildings, and so overall, a great quarter. obviously, i think, you know, wall street had pretty high expectations around many guiding in the future, and we wanted to
make sure we put up numbers we can commit to achieving, and we did guide above some of the numbers in q2, so we are happy with what we are looking for there, but overall, we are seeing incredible momentum in terms of customers moving their content and collaboration systems to the cloud, and we stand to benefit from all that migration. >> looking at the analysts' notes today, it's the guidance about the pace of growth that perhaps they were, you know, disappointed on, but still a lot of them maintain their buys. are you saying the pace of growth peaked? still growing, but slowing down? >> no, this is a year we're driving execution around reinflection that's going to show up in the back half to the tail end of this year into next year >> do you mean - >> growth rate >> growth rate takes off >> yeah, but that's -- we're pointing more towards the enof the year going into next year for that, so what we talked to the street about is we're going through an evolution of our sales model where instead of selling the core product to customers, it's add-on services
and platform capabilities. that's going to have impact of growing average contract value and continue to grow the deal sides of customers, but takes awhile to roll through and market engine as we execute. >> so is that now what's happening, when you go to companies to make a -- you say, this is the goods and services we are able to offer to you. we see so many cloud deals with old-on acquisitions meant to offer goodies, so to speak how confident are you about the position and how much more do you need to do there >> we feel very confident that we got the core platform and continue to, obviously, do innovation in the core technologies, improving security, work flow, ai capabilities that they spoke about, and that being said, you know, we might make small acquisitions ourselves in terms of growing that technology, and we're very confident in the current position we occupy, and we just want to expand that from there. we did announce that we now have 85,000 customers strategic deals with
organizations like the federal government moving more and more to the cloud, a major -- one of the world's largest banks in latin america has been moving to box now for their collaboration and sharing. life sciences, services, federal government, health care, these are industries for the first time are moving to the cloud at a greater pace, and we've been seeing that traction >> and 85,000 customers, as you say, that's not a small number at all, but there are some good lines in this business that yo compete with >> yes >> how do you see yourself evolving against them, you know, your market share has grown fast, but will it top out at a certain level where you compete with the bigger customers that they are eating up at the moment >> yeah. we've been competing with the big companies since the day we started our company in college 13 years ago, and our focus has been build -- first of all, build a superior product, a better user experience to the end users and enterprise it buyers in the organization be the world leader in security,
compliance, and data we see different countries and industries akre a tail wind for the growth, and ensure we are a platform neutral technology to integrate with all the other services customers use and ensure we then deliver way more value for the customers. >> do you want gdpr -- i don't like acronyms. you want the regulations worldwide? you want them in the u.s.? >> well, something they have been misinterpreted, but in general, the fundamental consumers control their information -- >> or to think they have control. >> different players will be at different stages in that, but idea of having control of your information on any platform you use is critical and knowing how your information is used by different internet services is absolutely paramount >> do you support full portability? that's what facebook lovines to, okay, nevermind.
if i can just plug my profile into another site. >> i want to be pragmatic. portability is difficult it's not necessarily portable to other platforms. you should be able to tell a platform, remove all data and information you have about me from that system what's happening is enterprises globally have to comply. they need interpret services and cloud technologies that are going to let them comply with gdpr >> i know you were joking about the story how amazon's alexa overheard a conversation and sent it to the wrong person. you joked about google's ai. is there a serious criticism in which tech is getting into our life and overstepping the mark or just a joke >> it's a good callout that sometimes there's a little bit of seriousness embedded in some of the tweets. i think the -- i think the state of ai is very complicated. we -- you're going to expect mistakes, risks, and challenges
with the amount of innovation happening that we're seeing. ethical things and privacy issues we have to think about, and whether it's amazon echo, self-driving cars, we have to take the security and the privacy and safety of the systems incredibly seriously, and it behooves anybody in the technology industry to be way more thoughtful in some cases how ai is used, whether it's for, you know, what the future of jobs look like or how consumer tools impact our lives, elections, our cars, our life sciences products, so we think that's important >> got to careful on twitter these days >> taken way too seriously >> gets you in a lot of trouble. aaron, a pleasure. >> thank you >> 23 minutes left of trade at the moment dow down 207 points, off the lows, but not by far down 0.8%. nasdaq down ten basis points the fashion company falling more than 15% today is our
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i support the affordable care act, and voted against all trump's attempts to repeal it. but we need to do more. i believe in universal health care. in a public health option to compete with private insurance companies. and expanding medicare to everyone over 55. and i believe medicare must be empowered to negotiate the price of drugs. california values senator dianne feinstein
welcome back to "closing bell," everyone, i'm sue with an update on the story we told you about a little bit earlier the fcc charging a banker from goldman sachs with insider trading, a seven count criminal complaint unsealed earlier today charging jung with insider trading, trading with a co-conspirator not named in the document on nonpublic information. goldman sachs says now a spokesperson says they are placing jung on leave at this point. kelly, wilf, become downtown to you. >> sue, thank you very much for that good information of that particular story and continue monitoring, the vp of a fairly senior, not super senior, at goldman sachs, down 1.5%, but
not because of that story. most of the banks are down as well 18 minutes left of trade the dow down almost 1%, nasdaq is down as well. coming up, two retail investors how they play the market swings and where they put the money to work, and what stocks are getting out of. that's next. that's how y kw ounoit's the fin day of the month send us your thoughts on facebook, twitter. we're back in two.
welcome back to the "closing bell," under 15 minutes left of trade, we are down a full percent now for the dow. down 240 points the low of the session. it's just a little bit worse than that. sectors, industrials, consumer staples at the bottom, and tech holding on to positive territory. >> it's the last trading day of the month, may 31st, and we have to check on main street how they invest with the volatility in the markets. joining us for this is jackie and tom. welcome to you both. >> thank you >> tom, we have not seen you starting with you.
how has everything shooken out for you? >> i added quite a bit in the last four months in january, i was concerned about market valuations, the pullback, i added with intel in february in the mid-40s. that was a great trade actually, this week i bought johnson and johnson. nay were at a 52-week low, yielding 50%, a good play, and i like financials. they have not done well in the last four months, but there's a lot of opportunity, plenty now, u.s., bank of america, even citigroup. >> walmart is trading lower, consumer staples the worst sector does that concern you or do you like the stock >> well, i do like the stock, but it does concern me any time i see that, you know, a stock like walmart is down as long as it has been. in the last couple months, it's not done well, but i think to the long term, we are making adjustments that i think is really going to benefit them
long term. >> who else do you like, jackie? i mean, look at the dollar stocks today, i don't know if that's an opportunity for you or what others might be on the list >> there are several things that are on my list i seem to be really heavy in retail i did have to get rid of a couple stocks, but the ones i kept and will continue to buy is tiffany, walmart, as you mentioned, also nike and alibaba. those are the ones i hold on to now and think they will continue to do well >> tom, you mentioned you still like the long term outlook for the banks. of course, they sold off sharply earlier in the week in part because of concerns in italy did you see that as a buying opportunity? >> yeah. i mean, jpmorgan i would not call "cheap" right now if it hits the 90s, i'll buy more, but i added to bank of america on that day. i just think long term they are cheap relative to the market
the economy's good they are getting decreased regulation i just think it's a great sector to be in, and, you know, just because it's not done well in the last four months, i think this is a sector you have to be in in the next three to five years if you think the economy's going to do well >> and, tom, that's what i was going to ask you to leave off here as we start june and people have concerns about trade and all the big picture stuff, you remain positive here on stocks and on the economy? >> yes i think the economy's doing very well now, and i think tax reform has been a positive, lower regulation, and this is definitely a much more pro-business administration, and i think that's good for companies, regardless of the field you're in. >> all right good stuff, guys, thank you, both >> thank you >> tom, jackie, checking in in the final day of the month >> thank you >> it is hard to believe >> it is i think we get the jobs report, even though that early, they wait a week, but we'll find out. watch the wage number. anyway, well, ten minutes to go. down's down 220, but nasdaq down
11, s&p down half a percent, and russell giving up recent gains up next, mike santoli posts up the day's biggest decliner, mike >> yes a mall retailer that was on a good roll, having a tough day da bedn esontoy,as oquti marks based on its outlook details when we come back. i'm very proud of the fact that i served. 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. they're like a friend of the family. we are the cochran family, and we'll be usaa members for life. save by bundling usaa home and auto insurance. get a quote today.
welcome back art just came by to say there's a billion naand a half to fill the bell actually, it's high as 2 billion, came off a little bit stocks moved lower and dow down 236. we go down to the floor, mike is posting up, yes, mike? >> yes, gas with a tough day today -- gap with a tough day, down 20% now, in-line results after the close yesterday, but the forecast of the full year for earnings was a little bit lighter than what wall street looked for looking at the midpoint of the range. why did they buy smaller retail stocks well, less than three months ago, previous earnings report, the stock was up 28% in a day
almost 20, shot there, and now down 20% to that $20 mark that it got to months ago tremendous volatility. the stock remains up 60% over the past 12 months, but, today, getting a pretty sharp pullback in that bull strength, guys. >> okay, mike, great stuff thank you very much. mike santoli, coming up in post nine a minute or two up next, the closing count down. >> and retail earnings coming our way. all posting results trading lower inheeson t ssi today we'll bring you those results, plus, instant analysis coming up your brain is an amazing thing. but as you get older, it naturally begins to change, causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain
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e*trade. the original place to invest online. welcome back, under three minutes to go of trade, approaching the lows of the day, but starting with the s&p intraday chart given the news we've had today, we really could be doing much worse. yes, red trout the day, opening lower, steadily got worse, near the low of the day at 1:00, but only down 0.7%, and given this the culmination of months of trade fears where tariffs were imposed, and retaliations, we could be looking at bigger declines to highlight that, we have a week to date chart of the s&p, the italy fears had a bigger
effect in the market than domestic trade fears have done today. s&p for the week as a whole down 0.7% and down, of course, about 0.6% today as well, so overall, with all the fears this weeki, s we're not down too much. looking at the treasury yield, week to date, much more safe haven buying of the u.s. bond market earlier in the week with the italy fears than has been today, yields, of course, down on the week, but have risen in the second half of the week, flat most of today back to today, though, in terms of the s&p market trade, we, of course, have the trade impact on certain sectors, industrials suffering, consumer staples as well, inport primport prices, u up slightly, and technology up slightly sliding into the fact that the nasdaq is the least lagging performer of the indexes. currency markets seeing an
impact, seema, the likes of the mexican peso suffering, but albeit, the dollar not suffering. >> and so high for the month, euro from 1.20 to 1.17, 3% decline, but other currencies are lower against the dollar, but smaller reaction i think the tariffs today are a big factor in today's news formal announcement came out from the commerce department, and another report on the two parties from italy, forming a government, and we came off the lows >> we did on that news, and we'll see if italy pulls that together, overnight, bode of confidence in the spanish proposed a different headline there. >> i know. >> going back to the sector performance today, of course, two holding on to gains, consumer staples, industrials at the bottom, and suffering on the energy climate, oil prices, again, under pressure. >> technology up 7%. sharp outperformance compared to
financials fourth straight month of declines there >> 20 seconds left, dow down 250 points the low of the day was 316 points for the dow, but it is the worst performing of the three, down 150 points, nasdaq lower, and s&p down 0.6% ringing the bell here at the big board is atp securities and genprex at the nasdaq. that's all for the first hour. kelly's got the second thank you, wilf, welcome, everybody, i'm kelly evans dow dropped 50 points to close out the month of may it's been an up and down week, two for three on the downside, 2% decline for the blue chips, making the dow the worst performer today of the major averages we took a leg lower after the president announced there's tariffs against the eu, canada, and mexico on steel and aluminum
today, s&p 500 down 18 points, about a little more than two-thirds of 1%, 2705, nasdaq holding up well, a quarter percent drop there to 7442 russell 2,000 closed at the all-time high this week giving back 14 points today, 1633 big names reporting earnings after hours today after big movers during the session already. reporters are standing by to cover luluhelemon and we'll have results from game stop and ulta. we'll see you guys in a couple minutes as they cross. joining me now is michael santoli with stefanie, cnbc contributor from cia company, and paul from the skoke investment group we had a trade war brewing between the u.s. and allies. we focused on the trade war between u.s. and china, but now this one topping the dow with barely a gain, visa, and prok tar and
gamble a -- procter & gamble a loser, and s&p down, and gm is up more than 12%, amazing, and dollar tree down 15%, michael. anything you read into that? >> it doesn't -- the dollar general was down, you know, disappointing result, but, no, just a count cyclical, you know, when times are tougher, they are better, but, no, macro in terms of the state of the consumer if anything, it's the reverse. >> right, bringing us back to the other major issue here, which is what's happening with trade. >> yeah. >> you know, china trade war fears came back to the surface and today the surprise decision allies are not exempt, eu, canada, and mexico, no, sorry, all tariffs. >> no doubt about it, a negative you had a negative response, oh, who sells big heavy stuff overseas and consumes steel and aluminum, so caterpillar,
boeing, all hit. the industrials trade lower on trade concerns, but market attempted to isolate the true victims from the rest. technology stocks were up. honestly, the biggest swing factor today was the weakness in bank deutsche bank concerns had nothing to do with trade wars, and jpmorgan down 1%, and that's not -- that's just too heavy >> they have been low all week >> to lift the market overall. >> again, nasdaq tried it had a little bit more there >> exactly >> back to gm for a second did you expect that to get hurt from the tariffs >> you have to know more than just tariffs soft bank investing there, china vehicle business, so much of a bigger deal than maybe someday potential restrictions on foreign party imports of gasoline engines >> what about the steel and aluminum pieces of it? >> ford is down today. >> exactly >> that's the read through, it's more about, look, soft bank
comes along, throws capital at gm that's what they react to principally. >> skating into the future >> exactly >> not worried on efforts to mitigate the past. where does that leave you excited about areas of the market >> well, even within industrials, we just pulled off the entire group i think it's a company by company thing. we talked about companies with pricing power to offset raw material costs with plenty of them i can name a laundry list of them >> you like cat perpillar in. >> i do, and united rentals, and added hk supply today, the domestic company, hit by rebar, but they are -- all the companies are getting pricing or improving productivity to justify set. i think that demand is still very strong. that's really the important part there's a conferences going around this week, and last week, and all these companies, industrials companies, energy companies, technology companies, gross and value, everyone is
really saying good positive things about not only the u.s., but still in europe, they are okay, china is fine, and so i really think you have to kind of step back from the headlines, and i'm thinking, like, down 0.7% for the s&p is a victory, right? >> i was going to ask you, so this feels like a self rumor, buy the fact move in general >> yeah. >> any time this trade stuff, tariff stuff was floated the last couple months, the whole market had a terrible reaction >> exactly >> now not only did we get a modest reaction in stocks overall, and nasdaq shrugged it off, but investors go no big deal because they don't think the tariffs come to bear, or do they just -- if you look to the market, the pressure of the president to back off on this, i don't think he's going to get that message >> i think it certainly could happen, but i think that this are offsets. that's the thing i think that the end market demand, when the gdp numbers look like they are strong, i
mean, atlanta fed, i don't believe they are at 4.7, but, however, maybe 3, 3.5. that's good, i think >> could be 3.7. >> right >> still in the first half of the year >> yeah. >> it's fine, but it's the trend or better than the trend >> right >> so fangs led, right, interesting at the expense of some semiconducts, and staples, you'd think they are defensive and people go to the staples trade, but, wow, jaw-dropping. >> they had a half parted down from the last week >> they are very expensive, and, yeah, they'll get impacted from a lot of things, but that's -- that's really -- that was a surprise to me, they did not fall in better >> great point paul, speaking of interest rates, we have jobs report, tell us something about wage pressures, and interesting the chicago pmi was hot. the core pc, inflation number was fine, and pending home sales, you know, a supply issue, and so, you know, on that front,
maybe 3% is doable, right? >> yeah, i think so. you know, the consumer, mike was talking about earlier at the top of the show,dollar stores, consumers show strong level of personal finances, highest in three years. foot traffic in malls in may was a lot stronger than prior years, and so i think it bodes well for the u.s. economy there i think what's encouraging about the market is every downside we had off 200 day, when that rally ends, there's a quick reversal to the downside, mostly on tariff fears and costs this latest rally off the 200 day, rather than trade lower, we just trade sideways here whereas we see the situation where investors came in and sold on that initial burst of activity, here we still have a balance between buying and selling, so i think that's
encouraging at this aspect >> all right well, let's talk more, dig in on the trade front. joining us in the first cnbc interview to talk tensions is ambassador of mexico to the united states. welcome, ambassador. >> thank you very much, kelly, good afternoon >> good afternoon. so what steps can you tell us mexico is taking in response to the u.s. decision to impose steel and aluminum tariffs today? >> well, first of all, kelly, we believe in our view it's hard to make the argument that this benefits any one of the nafta partners on the one hand, the steel industry is integrated in north ameri america. steel is very important to over industries that are strategic throughout north america, and mexico has been forced, obviously, to take a response and equivalent action establishing tariffs on a series of products. >> what products are those >> well, obviously, some
products like lamb, pork, cranberries, there's no definite lease yet, but these are products in which we establish the measures >> did you say lamps >> lambs >> lambs, table lamps? >> yes >> so why this particular list of products, pork, cranberries, and cheeses? >> for two reasons this is not a definite list yet, and the final list responds to different criteria one is, obviously, products that do not affect further the supply chain, but also that send a message that actions have consequences >> are you also looking at areas that would inflict pressure or pain on the president and his spo supporters in particular to send a message to him, look at the damage this does to your con sitwents >> kelly, what we want to do is
proceed with the negotiations on nafta that we were undertaking we want to get to successful deal as soon as possible, but we'll be doing so in a level playing field. >> so you mentioned nafta, and, of course, elections are coming up this fall the front runner is hard to read, but could go a protectionist way and not a fan of the agreement is the window closing for nafta? >> well, we'll continue to engage the administration of this year. we believe they are still a fairly good chance to finishing those negotiations, and in the end, it will have to be the next administration on mexico that will take the final decision, and, certainly, will have to be the next senate in the legislature in mexico that looks at any one agreement >> yeah. final question going back to the
tariff issue, are you guys, canada said they're going to impose dollar for dollar tariffs on the u.s. we imposed on them what's your dollar quality >> dollar to dollar. equivalent measure on the damage that will be caused by the decision taken by the united states >> and what happens if the u.s. then retaliates against you further, which the president may do >> well, we certainly want to avoid going further. this is not a step in the right direction. this is not something that we believe benefits the complexities of north america, and, over the last year, we've had very good conversations with the administration, and we'll continue to do so, but, again, we'll continue to engage on a level playing field and we hope this is considered by the administration >> all right ambassador, thank you for your time today >> thank you very much, kelly. >> all right guys, what do you think?
mike, thoughts >> very much like canada's response as we know i think the issue for investors is there's not really a process here, like, we know now, we're sitting down, a planned negotiation. it's a lot of improvisation on both sides i city thistill think it's fair measured, a list of products, and dollar amounts this morning secretary ross was dismissive of the costs. i think that reflects the president's thinking, look, this is a fight worth having even if it means absorbing higher consumer costs and having companies to cover >> and goldman said this morning, looking at the trend tally of impact on inflation, said tiny, tiny, barely perceptible. >> it's hard, but as an investor, people are, and what i'm doing, looking at more u.s.-centered companies that i don't have to worry about it i mean, i do iss-- there's companies and you pick stocks
that handle it for sure and those with pricing power in all industries, but this is one of the many reasons why the iwm hit new highs, and utilities do wel and growth in tech is well it's a defensive trade that's beginning on the last couple weeks, and so i think people are trying to position around all this noise in that way >> yeah. export-light trade >> exactly >> paul, it was lamps, pork, cranberry, cheeses i don't know how to translate that into a ticker necessarily, but interesting product mix there. >> yeah. i mean, i think it is an interesting mix. these tariffs, however bad or, you know, less impactful they are than people think, bottom line is we talked about this for four months now, and it creates uncertainty on investors and businesses, as said, so over the short term, it's not a big deal, but longer this thing drags on,
the more it affects the bottom line of businesses >> let's get to the bottom line. we have earnings crossing the wire now lululemon crosses. kate >> q1 beat on every met trick, eps at 55 cents. street looked for 46 cents revenue 650 million, and estimates looked for 618 million. comps really, really big beat here, up 20% overall estimates looked at 12%. store-only comps up 8% the street looked for 3.3% on that the company also getting strong q2 revenue and ets guidance, stock up 5%, was up 6% for the year to date, 30%, up over 100% for the year, but no news on the call we'll bring it here. >> wow quickly, kate, thank you, 20% comps, online if the store -- because they built strong
numbers. >> very strong, and going forward, it's easy comparisons, right, on terms of comp. comp stores are strong this is a product people want. >> still want. >> it's a lifestyle. even nike products, more, like, you know, performance-related. this sector is hot this and cosmetics are where you want to be >> we're going to get ulta shortly. >> that was your key >> it was perfect. >> eric? >> kelly, stock is down 5% after hours. earnings beat by a penny, 38 cents versus 37, but revenues a miss, 1.93 billion rather than 1.96 billion the company is, as you know, has been down a lot over the past year to three years. the ceo abruptly stepped down six weeks ago, so today they named an interim ceo and cfo as well that's the story from the gamestop, struggling after hours with a miss on top lines kelly, back to you >> eric, thank you
we don't see a lot of top line misses these days on the revenue si side, mike >> it's a business in decline. the market is in permanent decline. they have the wireless stores and at&t stores, but, still, it's an amazingly cheap stock specifically right now based on what the sales and earnings have been markets saying this is not going to last. >> cheaper after the 4.5% drop after hours, trading at $12.60 let's get to workday >> kelly, workday reported strong results, but shares are down almost 4%, actually 3.5% at this moment. revenues came in at $619 million versus estimates of $609 million. eps a beat, 33 cents versus expectations of 26 creents a key metric fuelling growth is subscription revenue, also a beat 522.1 million versus 516.2
revenue, subscription revenue up 36.6% year over year, but shares are down at the moment, almost 4% there kelly, we'll dig in and see why that's the case. >> all right, paul, the last word before we go. >> yeah, no, i think on stock like workday, you want to buy on the weakness there these software services companies that is one of the -- that's the perfect example in the cloud, and they are just growing, on fire, and market is taking notice. broke 15 list of attractive growth stock, half the stocks from that software services sector it's the strongest area in the market right now >> a little bit of a pause there after hours. workday stepping back 4% thank you. talking markets today. trade war fears spooked red arrows on wall street. more on the potential fallout with your investments with the 250 point drop in the dow, and future of self-driving cars got
a boost today driving the shares of two auto makers higher. details next we want to hear from you, reach out to the show on twitter, facebook, or e-mail. we're back in two. hi, kids! i'm carl and i'm a broker. do you offer $4.95 online equity trades? great question. see, for a full service brokerage like ours, that's tough to do. schwab does it. next question. do you offer a satisfaction guarantee? a what now? a satisfaction guarantee. like schwab does. man: (scoffing) what are you teaching these kids? ask your broker if they offer award-winning full service
welcome backseat, costco hit the tape meg? >> a beat in the quarter for costco, eps at 1.70 versus estimates of $1.69 revenue at $32.36 billion versus the estimate of $31.91 billion comp store sales a beat at up 10% versus expectations of 7.3%. taking out gasoline, they were up 7% versus expectations of 6%, guys, costco down, though, 3.4%, not seeing what in the release here which is very convinced is driving that we'll dig in and bring you more. kelly, back to you >> thank you, meg, again, 3% drop gm, meantime, best performing stock in the s&p 500 after soft bank took a stake in the autonomous vehicle unit. phil lebeau is in l.a. with details, phil? >> reporter: kelly, a huge day for general motors the stock jumped, what, more than 10% here's the deal that it announced this morning with soft bank soft bank will be taking a 2.2
billion dollar stake in the gm cruise holdings, their s subsidiary it's the autonomous vehicle subdivision of gm. a 19.6% stake by softbank, and the evaluation now at 11.5 billion. here is the president of general motors talking about where they see this deal setting up the company as they go forward >> based on rate of progress we're making that we see a path to commercialization in 2019, comet to make a lot of progress since then that continues to be our objective, but importantly, ultimate decision to launch the technology fully driverless is dated by safety. we have to hit the right levels of safety performance, and when we do that, we are ready to go >> reporter: and, again, they are targeting 2019 gm moved high eer because wall street says, okay, there's the valuation on the cruise
automation of the business, and everk evercorp. moved them up, one piece of the news involving autonomous drive vehicles, and the other is fiat-chrysler and waymo. they have been working together for a long time, vans that waymo modified, but they took at 6 62,000 vans, modify them and eventually be part of the fleet that waymo implements starts later this year as part of the autonomous ride share program. they start first in phoenix and move to the bay area, and, kelly, tomorrow, fiat chrysler gives its five-year forecast in terms of profits, a lot of people waiting to hear what they have to say about where the company is gone over the next five years kelly, back to you >> phil, let's show, also, the ford share price, mike, you mentioned down on the session today. i wonder after the gm pop, after
now probably what looks like a very smart decision to invest in cruise, phil, where does this leave ford >> reporter: ford is in a bit of a tough spot right now primarily because while it is investing heavily in mobility solutions, in autonomous drive vehicles, it has yet to clearly articulate how it sees growing that business, monetizing that business, and how that business will filter down to the bottom line they are doing better with their messaging than in the past under the ceo, but if you talk to people on wall street, they say the same ford is not considered to be at the same level of investment and vision for the future as general motors, and that's why shares of ford are not moving higher today while gm is. >> is it too late, mike, for ford to do something in the space? >> it's not too late it requires an answer. it's question number one, probably, because the way the stocks were trading, you know, down off, you know, two years
now, really been on the decline, even though the auto cycle is okay, it's the big question of is this the last auto cycle that we've become used to, right? not to get dramatic about it, but seems as if there was a lot of things moving against them in terms what's coming on in the future, and you want to participate and not try to fight it >> absolutely. phil, thank you. good stuff, phil lebeau with both angles for us today >> reporter: you bet micron the worst performer in the s&p after a big downgrade, and fast money traders say whether they buy the dip coming up. are you an iphone addict help on the way whether you want it or not, and it's curtesy of apple. of all pcelas. that's next in today's takeaway. 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.
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control suits me. go national. go like a pro. welcome back, time now for the takeaway we begin today with a shocking, not shocking development turns out google is the early winner of data's new privacy laws far from being a threat, erroneous rules reenforce their lead google directs ad traffic to its own site than others it powers, saying it's not sure those are all in compliance. michael, this is how the big get bigger >> it is it's a well known fact once you have dominant players in the industry, incremental new regulation, they navigate it better than younger and smaller ones, and that metric how much traffic goes to google sites and affiliate site is watched in earnings every quarter that nets out to a positive for alphabet >> and for investors
>> for now for this interim transition phase. >> goldman launches an app for client, and apple-led company sees how vulnerable they are, like paying dividends or strong growth triggers campaigns and will be calculated by the app, and goldman says it helps companies to come up with strategies to defend off activists. what do you think of it? >> investment banking 101 that's just converted into a gimmick of an app, right? those factors that matter, i mean, you go through any screen of what makes you a target, it does not change in realtime that much >> but it's funny, the app gimmick is my favorite part. >> it's just noticed and what's now. >> check your dash board - >> anything that deepens the relationship or top of mind kind of engagement of a client with an investment bank is good >> i wonder if there's more apps co coming it's like cigarette companies selling patches. how to break your iphone addictions
google's version of android has an app dash board now to see how much time you use different apps, and set time limits for each one are they useful steps, mike? and will they help or hurt the tech giants? >> i think, first of all, there's no downside if you are apple for doing this i think because the people who care about trying to limit their intake and try to kind of get on top of this supposed addiction, they use the tools and will be fine you kind of know that's a minority of the users and people do what they do overall. i don't know there's a big downside i compare it to how on a public faces basis, and i was reporting on this, good about saying, you know, 21 is the legal drinking age, we're not promoting underage drinking all the while knowing there's experimentation out there that happens all the time >> and i wonder on the point about limiting your time use, if you, as a user, i want to know when i've been on snapchat for 15 minutes or whatever, is that bad for snapchat or just really going to change anything
>> if 80% of people say i'm going to set a strict limit, then it's just -- you know, here and there, yeah, i don't think it is. >> interesting to see. >> news for you, how we finished on wall street first, though, dow down 251 on the bell, down 1% s&p shed two-thirds of a percent today, and the nasdaq only down a quarter percent, and russell down .8% reopening after the home day, there was concerns about italy's government, and the coalition got presidential approval that was initially vetoed over the weekend leading to turmoil italy's president gave a green light to the populist party to resolve issues for the time being, staving off future elections, and this comes, by the way, just watching the italian yield, 2 partnershi.7%,n the eve before spain's
government might fall. could be a no confidence volt. how does it net out? >> short term, it relieves the concerns on italy. main issue, especially on tuesday was, it was a immediately going to spill into a new election, which would be a de facto referendum on participation in the eurozone, right? it staves that off i don't think it necessarily changes the overall path >> sure, no, kicking the can is the way to deal with the crisis. >> if you don't kick it, you trip over it better this. getting to the other big stories of the day here's our rapid recap >> gm announcing that it is taking a 2.25 billion dollar investment it is taking that investment from the softbank vision fund. that investment goes into gm's autonomous vehicle subsidiary gm cruise automation. >> in the case of canada, eu, mexico not to expand exemptions,
and ross says they are placed 25% tariff on steel and 10% on aluminum effective midnight tonight. >> when you think about the o r overall economy, it's not just the trivial increase in product prices, but it's also the increase in employment and increase in the economy overall. >> supporter of the concentration on defending u.s. workers, putting u.s. employees in the position to win >> let me be clear, these tariffs are totally up acceptable >> dow dropped 250 points to close out the month of may, 1% decline for the blue chips and, of course, now we've had this news after hours that italy has its government we'll see what happens with spain tomorrow, but, mike, how do you think the importance of that development is relative to the fact that -- it was a surprise that the u.s. went ahead against eu, canada, and mexico on the tariffs today. >> it was. i think determining what's more
important is going to be exactly how european bond markets and how the bank stocks trade. that's been the transmission mechanism for our markets getting worried. the other issue when it comes to trade, like, what's next i said before, there's no process. we set these lists and rules, and now it's, if there's no reaction from here, we just have tariffs in place nobody thinks they are going to change investment flows or going to create a new steel plan in the united states. what are we doing here other than around the edges kind of gumming up the works >> saw the steel and aluminum stocks not big movers today, up on prices, of course, in the last couple months time for a news update back to sue now, sue >> kelly, hi, everyone this is what's happening at this time president trump meeting privately with families of the santa fe high school shooting victims. the gathering taking place shortly after he landed in houston. texas governor abbot and texas senator cruz attended that meeting. education secretary betsy devos visits an elementary school in maryland observing
what the school is doing to enhance security she sat on the floor with the first grade class before then reading books in another classroom. the president speaking aboard air force one is considering pardoning martha stewart and commuting the sentence of ex-illinois governor blagejovich. both of them participated in apprentice tv shows. and take a look at this, a goose on the loose at the detroit tigers game. the bird led the ground cruiewsn a wild goose chase it crashed into the message board, but there was a veterinarian at the game, and she came to the rescue, and the goose was eventually released. healthy. outside the stadium. so, mike, you -- you probably could say that this goose was down, but not out. and there he is.
or she whatever the case may be >> i like the updates. >> i would have loved that disoriented by the lights and the score board? that was wild? >> i think it was. >> oh. >> he's okay he's okay. >> i hate these geese as much as anyone, a nuance, but when you see him fly into the score board like that, i know. >> i know, thaw are beautiful creatures, but he's good talking about making him the unofficial mascot. >> as they should. cradling his neck. sue, thank you very much >> you got it. see you tomorrow >> sue herera. ulta earnings are out. eric >> the quarter seemed good they beat on the top line. they beat on the bottom line the comps were better than expected, the stock is down because the guidance for the next quarter is not that good. that guidance below expectations for q2 revenues there. that's the stock down about 2%, now down 1%, did great this quarter, but maybe
not so good in the next quarter. back to you guys >> eric, are you more of an ulta or sephora guy >> i'm just distracted by the goose there. >> yeah, exactly it was so -- he hit the score board. anyway, eric, thank you very much ulta down 1% after hours fast money traders say when it's time to cash out of the red hot chips after micron was downgraded as the worst in the s&p today. we're right back whoooo. when it comes to travel, i sweat the details. late checkout... ...down-alternative pillows...
morgan stanley said despite micron's rise, it's up 25% this month, there are storm clouds on the horizon. here to talk chip stocks, fast money traders, karen and guy, welcome to you both. guys, we've talk about the chip stocks a lot the last couple months they seem crazy volatile, more than usual, karen, is it just me micron down 8% today where are you? >> they picked a great day to downgrade, for sure, but aside from that, i understand the theory, which is, look, we don't know if it's peaked quite yet, but you don't want to get behind that you want to be in front of it. i understand why the downgrade, however, i sort of think that there is more room to run, so
even though they had a huge run, particularly micron with a gigantic run, there's more to go in the cycle here, and i do think they are a cyclical stock, but for me, i'm staying with intel. >> that's right. guy? >> april 4th, ubs initiated coverage with a $35 price target stock went from 60 to 49 recovered. last quarter, announced a $10 billion stock buyback. four analysts raise targets, and now morgan stanley today they downgraded. what's the price target? hold on, pete, what was the price target >> 65. >> 65. what is it now >> 65. >> wants to go higher, trading 58, although they downgraded the stock, it's a total overreaction, and the despite when they do it, that's like 12% of the market cap. that's significant, so i'm in the camp that this is not nearly as cyclical as it used to be >> karen, did they plan that, did they practice that, or was
that organic >> they just thought of it like a minute before, and we got, one other thing to say - >> one more thing for you. >> yep >> karen's on board with this. >> quickly >> so is pedro welcome back, lisa, your executive producer >> yes >> great to have her back. >> absolutely. >> congratulations, all pleased she's back in her seat with a healthy little one at home, and probably very embarrassed by this right now >> it's what we do >> that's our job. >> exactly thank you, guys, karen and guy be sure -- >> just make sure they stay on the show >> curry favor, aren't they? it might work. be sure to catch all the "fast money" action in 18 minutes time the u.s. imposed aluminum and steel tariffs on the eu, canada, and mexico, but should china be the country most concerned about the trade war? that's next here on cnbc here first in business worldwide.
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these are blips on the radar screen it does not change the relationship everyone has spats, every family does, other countries do with others there's nothing weird about that i think everybody gets over this in due course. >> that was commerce secretary wilbur ross on "squawk on the street" using the word "spat"
talking about the trade war. wilbur is on the way to china, and think today's announcement about tariffs on the eu, canada, and mexico is related to the strategy around china talks? what do you mean by that >> yeah, no doubt. and, by the way,ings it it's reo eu policy and nafta, and china specifically, in the last week or so, donald trump had been accused of getting soft on china whether it was zte or the trade frame work announced ten days ago, so there's been a doubling down by the trump administration to get more hawkish on trade and send a signal to china, hey, we're willing to put tariffs on our own allies, we better get a good deal when the talks start over the weekend i think there was some relationship between showing a hawkish view today on trade with the expected outcome of some good trade deal coming from china next week, and the north
kore korean nuclear talks the following week >> game it out how effective it could be in the china trade talks. it's always seen that if it was basically going to come down to, you know, which leadership of which country had a higher pain threshold basically to impose on their citizens that bemigwe migt be in a great position >> sure. much of what we are talking about is very low pain threshold. like secretary ross said, most of this is about one tenth of 1% of gdp it's actually relatively small for market apartmeparticipants, they are worried about the uncertainty and trying to hand cap this think about it from a pain threshold, is it a tiff for taft where they right a wrong, and in addition, the other country retaliates so the u.s. keeps retaliating. that's really the high risk situation. i do think it's a low
probability situation, and much of what the framework discussed by the secretary was consistent with our view. is that you are going to get some intellectual property protection and increase in purchases of natural gas and agriculture products, but it seems the administration needed a harder plank begin domestic blowback they got here in the u.s. >> so maybe the u.s. does achieve some victories on china, you know, maybe, the ones you pointed to, dan, but what about what the eu and with canada and mexico, especially in terms of nafta. right now, everyone views this as a, we don't really get what we're getting out of this, but are we kind of missing the bigger picture >> so the greatest risk, kelly, out of today's announcement is that canada looks at it and says, we don't want to negotiate on nafta anymore they were clearly logger heads, so if you're in a situation like that, the status quo remains, meaning the current amp is in place. that's great, but the risk is that trump issues a notice of withdraw, sometime in september,
october, intending to withdraw from nafta in six months, and that would be the greatest trade risk to global financial markets. for the eu, i disagree with secretary ross i think that this is really causing pain adding up the iran deal, this, and other factors on top of it, and they are going to be hard wounds to heal, and i do expect the eu to retaliate, but the eu retaliation will be about $1 billion this stuff is rounding error compared to the fiscal stimulus we put in place, about $800 billion. >> yeah. i know you think that's partly why there's strong consumer. dan, thank you >> that's right. thank you very much. >> dan cliffton gaming that out for us news alert on cbs. what's happening >> another day, another layer in the cbs soap opera with the redstone family. this time in delaware court, cbs shareholders filed a class action lawsuit against national amusements and the redstones for
breach of fiduciary duty what they do in the merger there hurting shareholders that's all we have so far. no comment from cbs or national amusements, but it is a cbs shareholders class action lawsuit filed in delaware delaware court against national amusements >> what do you make of this? >> i don't know how it would fit in but implicitly it's endorsement of leslie moonves' point that cbs was being pressured in the direction -- >> by doing a class action suit, is it making the case all shareholders are upset about this >> i think that's what happens you have one anchor shareholder who says there's grounds for a class action on this measure i think it's probably predictable given the fact that the ceo and board of the company were levying these charges some lawyer is saying let's wrestle up a shareholder and
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tomorrow, june 1 marks the start of hurricane season. if last year was any guide, the storms are getting more dangerous and destructive, posing risks to real estate in particular in harm's way diana olick is here with what's being done to safeguard buildings and billions of investment dollars. >> last year 16 distinct weather events caused $300 billion in economic damage, much of it to real estate. coastal cities across the nation are increasingly vulnerable,
especially because waterfront development is so hot right now. we traveled to boston, which saw back-to-back nor'easters at the start of this year flooding the city's popular seaport as development there soars. in the past decade, nearly $8 billion worth of residential and commercial real estate has been built or approved for construction in the seaport. its inventory of problems doubling, according to cbre. in fact just the seaport has seen three times the amount of new buildings going up than in all the rest of boston's much larger downtown and financial district and the seaport is ground zero for water. this is what the city predicts will happen in ten years, 20 years, 30 years. the booming district under water. >> i think what scares me the most is the disconnect we're relying on the historical past when we build buildings for the future. >> why are we not changing the code >> the process for changing the code is long and tedious.
>> reporter: and changing the code could drive away the precious influx of business to boston, names like amazon and ge, investing millions in boston real estate development and attracting thousands of new workers, especially to the seaport. >> and it is all about the high value of waterfront real estate. developers are laser focused on it despite the weather because returns are so high and the irony that tax returns to cities from this development is what's funding a lot of the research and redevelopment to guard against these storms kelly, we did a lot more on this more in depth on cnbc.com but what developers are doing with technology and moving things higher is just amazing. >> what if the models are wrong? what if they say, well, the way i'm really hedging this is just to hope that it doesn't happen. >> that's what they're talking about with that 10, 20, 30 years. she was telling us the models they're looking at are here now. so while they have been doing this planning for way down the
road, they're seeing it happen now and they're not prepared on the ground for it with the code. >> tax revenue is being used for some research on this front. what about actual defensive measures are we anywhere close to that? >> developers, some of them, are doing that skance is one of the big developers they are putting all of the systems of the building up high and raising the ground ge will do that and their $200 million development hasn't started yet but they're raising the ground underneath it some developers are making the ceilings higher so if they need to raise the ground later. >> i guess they have to take that into account, but it still seems like a big step when you're talking about billions of dollars in these investments and it's great to have you here. there's much more you can check out online. markets sold off today we'll recap e g thbiheadlines when we come right back.
the digital divide is splitting this country. we have parents who are trying to get their kids off of too much social media and computers, and then we have parents who would only hope their children have access. middle school is a really key transition point, right. the stakes start changing. students begin to really start thinking about their futures. what i like about verizon's approach is that it's not limited to just giving kids new tools, it's really about empowering educators to teach in different ways, and exposing kids to more active forms of learning. giving technology is not a total solution. teaching technology, now that is.
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investors ignoring the company's big earnings i'm amazed by lululemon's numbers. >> lulu is amazing i'm not going back on my call. athleisure as a total category probably peaked but the brand -- >> it will shake out to four major players. that does it for "closing bell" everybody, "fast money" starts right now. >> welcome to the nasdaq market site overlooking new york city's times square i'm melissa lee. tonight on "fast," are we on the brink of a global banking crisis shares of one of europe's biggest banks, deutsche bank, are in freefall and the company put out a statement that is reminding some of the dark days of the financial crisis. we'll explain what that's about. >> plus a crypto hedge fund fighting back and dan morehead says there is one thing to save bitcoin an