tv Closing Bell CNBC July 23, 2018 3:00pm-5:00pm EDT
couple wayward shots on the back nine he is compelling television when he plays and plays well. and there were a lot of very good players at the top of the leaderboard. so i guess congratulations to tiger. >> always a show thanks for watching "power lunch. "closing bell" starts right now. good afternoon time for the "closing bell." financials powering higher it is a ten year yield rises more on that move coming up. and major changes at fiat chrysler as iconic ceo is replaced due to his faltering health big question now what is next for the auto giant. >> and i'm josh lipton in san francisco. alphabet kicking off a key week of big tech earnings when it reports in just about an hour. the one number you need to watch ahead. and i'm sara eisen in for kelly evans. president trump is about to speak at a special made in
america event. we'll bring you his comments live "closing bell" starts right now. you were bringing it on there. >> she struts, so she inspires me about that. >> i was probably the only guy there over the age of 14 not there with his kids. but i'd go again outstanding stuff. >> she attractis everyone >> and first let's check the markets. dow swinging nearly 100 points it is flat at this stage the high of the day 23 points, the low 6 points so s&p up 0.2. and we begin at the white house where any minute now president trump will make remarks at made in america event let's bring in kayla tausche for
a review >> reporter: the second annual made in america event. it was established last year by reince priebus at the time to deflect away from the headlines about rush 1siarussia. again some of those at play this year but you have a list of 50 plus manufacturers representing each of the 50 states touting the goods that they make here in the u.s. they range from viking stoves in mississippi to ford f 150s in michigan and even f 35 fighter jets from lockheed are mmarlin earlier today mike pence toured those 50 manufacturers inthe booths that they had set up here at the white house and in just a few moments, we'll hear from the president as well. it is interesting that today's event is about manufacturing in the u.s. because for many of those manufacturers who make goods here but then send them to the rest of the world, they have been under pressure whether
because of retaliation or because of their input costs going up because of the tariffs the white house has put in place. and confluence outdoor, which makes kayaks in greenville, south carolina, they pulled out of the event they were originally planning to talk to u.s. officials on the sidelines of the event about retaliation which they say is hitting about 15% of their sales which go to europe and canada. they have dropped out of the event in favor of an industry conference instead but you can imagine trade is on the minds of a lot of those companies especially after treasury secretary steve mnuchin was at the g-20 meeting over the weekend and he said essentially that no progress had been made specifically with china, which is the biggest trade fight that has currently been ramping up. so we will see whether the president addresses that in his remarks this just a few minutes time and what he has to say about trade discussions overall.
the eu commission earlier today said that the eu president would not in fact be bringing a free trade offer to the white house when president uecker comes this week so we'll see whether any discussion to overt tariffs on autos potentially comes out of that meeting >> kayla, thank you very much. we will of course bring the president's comments live when they do begin. and we'll float the pictures live when he steps into that room but let's continue the discussion joining us now, bradford ward, office of the united states trade representative and todd buchholz former adviser todd, let's start with you do you think these events, made in america type events, are important to bring the focus back for the president on why he is pursuing all of these trade policies at the moment and is the news from them enough to on that set the very many negative
headlines else where >> let's face it, when donald trump ran for office, both his republican opponents for the nomination and of course his democratic opponent for the election claimed that he was fantasizing when he thought that the u.s. could create more manufacturing jobs, that manufacturing could increase, that tax cuts could get the economy ginning up and right now, that is exactly what is happening. so if you are donald trump, you are feeling pretty good and pretty confident because the tax cuts did accelerate the u.s. economy. stock market has been doing just fine and these made a in america events are i think important to demonstrate the american peoplea events are i think important to demonstrate the american people that we have not jettisoned all of manufacturing to china for instance and that there is hope to get even more manufacturing back into u.s. factories >> like what aren't there certain things that don't economically make sense to be made in america like apparel and sneakers
or is there potential for some of these big producers and manufacturers to actually start opening factories here >> was that for me >> yeah, you, bradford >> sorry i think that the whole structure of the international trade has been to encourage globalization to the extent that this administration is seeking to insulate this economy from international supply chains, some of that manufacturing could return but that will depend on company by company and industry by industry basis >> in terms of what we could hope for progress from here, the president of the eu commission comes to the u.s. this week. if there was some kind of positive rhetoric towards moving towards some sort of deal whether on orders or other things, would that be a massive win for the president to show the potential positives that can
come from his short term tactics? >> of course it would defend on the specifics, but there could be important progress if there could be specific agreements that would result in very specific kinds of trade changes, whether they be reduction ns frm n. tariffs or more purchase by other countries. >> who needs this deal or some sort of agreement more, europe or the united states >> u.s. economy is roaring interest rates are almost still at record lows it is a powerful concoction to keep the economy growing but that is not the case in europe so europe needs the deal more than the u.s we are blessed with a more deregulated market >> you don't think president trump needs to show republicans out of the midterms and americans that his trade tactics are working? >> i do think there is a risk. many american farmers are quite upset because soybeans, pork,
cattle, other products are facing tariffs abroad. so the president is losing support in certain districts but he's playing a pretty big game here and the "wall street journal" just today reported that his approval ratings are higher than they have been so he is feeling like he has a pretty strong hand >> all right we'll leave it there t thank you both very much and speaking of the topic of trade, tune into closing bell on wednesday. we will be interviewing jack lew. of course his stance on the current market conditions, president trump, his trade policies and so much more. potential currencywars of course, great timing to have the former treasure secretary joining us >> and a lot more outward with his opinions since leaving the administration let's get to the closing bell exchange. joining us oliver persh, rick
santelli and sarge, when you look at the made in america events and you are remained of the trade tactics, you are reminded of the wall of worry. and we're back positive on the session. three straight week of gains how do you trade around some of these trade headlines? >> well, it becomes much easier during earnings season this week you have defense names coming out you have a lot of the semiconductor names. the energy names so you have to base what you see not so much on the data because the data is historical, but you have to base what you hear in the call you have to read or listen to the calls and you have to judge where you want to be based on how these ceos feel about tax cuts, how they feel they themselves can traverse the tariff problems. and i'm generally pretty positive as most people know, i do believe that president trump can win most of these trade battles. i do believe that this is suppressing the market i don't believe that the market
is faring so well. i believe the mar get is actually being suppressed. certain areas are down year to date so i believe we're actually sitting on a volcano as far as the market goes. we get positive headlines here and all wish you bought shares on these dips. >> rick, let's talk about the yield picture. quite a big move higher in the ten year note. is that down to positive expectations for the u.s. gdp growth or because yields else where like in japan are rising >> you know, i think it is a combination of everything. it is no coincidence that this friday we get our first look at second quarter gdp and it could be a whopper could be have five handle. not saying it will, about youb s not bad. up seven basis points today. it is now about eight basis points off its flattest which was 24 about a week ago. i think the japanese story is a
story that will happen and it isn't because the bank of japan is volunteering to remove some of the stimulus the more that the u.s. central bank does, the better the u.s. economy does, the more mario draghi and europe hint that they need to move accommodation as well, it will be a force of nature and the bank of japan i think has very few choices but to try to get their less accommodation ducks in a row and it will be an overwhelmingly large job for them considering all the areas of ownership they have and some of the distortions. you think we have distortions here, not only are they managing rates, they are trying to manage the entire yield curve the only bright spot i see is other than shipt of twnership os that will help mitigate some of the issues the july 31/august 1 is their policy meeting so a lot of big things in the next two weeks >> yeah, a tricky tight rope there.
if you look at the group's performance within the market today and financials are on top and staples are on bottom, it is really all related to that move in yields. >> it is and it points to an interesting phenomen phenomenon it is all about in president trump's mind trade deficits, but the missing component is that trade deficits come with counts or pluses and a lot of net foreign investment if he wins the trade war, and win in quotations, that means that you will see net foreign investment and less net capital. and that is problematic for markets and that is why you see things like financials move so much because interest rates are coming higher and they will benefit from this. but consumer staples lag because they will be impacted by some of the net foreign investment decreases. >> is the chance to buy banks been and gone? or still a buy >> well, what you can do if you think you missed this rally, and i do this all the time, you figure out where you wanted to buy them, where you missed it,
and you sell the puts if the premium is there so basically pick any stock you want let's say it is trading at 110 and you wanted to buy it at 107, sell the 107 put, go out a couple months and if you can sell it for 1.25, even if you get run over, you bought it at 105.75 so i try to spraexplain this ale time, you can still get in, you just might not have an equity stake. >> people wondering tech the same question. up again today >> you have 170 of the s&p con statistics events reporting this week the gdp number will come out so in the very short term, yes, these high momentum sectors will probably continue to move and it is unlikely that he will see any geopolitical news that will derail that because right now markets are shrugging off the trade war. they are shrugging -- and they have for some time so, yes, i think there is still room to go in the short permanent. but long term basis, you have to
be a little cautious >> the whole thing was that people were buying these high momentum, high growing names because we were in a slow growth kind of world. rick santelli is talking about a five handle on gdp >> i think we could see 4.7, 4.8. i don't think rick is that too far off. and i don't think we shrugged off the trade wars why is the russell outperforming so much. why are the materials and strilstrilt industrials struggled so much. we have started to frprice in te results. >> but in a normal environment, if you had this rhetoric, you would have had a 10% or 15% correction, no thet 5% or 6% so i think it has been muted i think in the short term things are positive and you want with a to be long equities. you don't want to get overly nervous because of the noise >> all right thank you all for joining us still to come here on the "closing bell," less than an hour away from one of the most
closely watched earnings reports of the season. a fulg prpreview of what to exp coming up. and president trump issuing a stark warning to the president of iran. never ever threaten the united states again we'll dig into the escalating tensions and what they could mean for markets as we a wait fresh remarks this hour from the president. and we of course always want to hear from you you can reach out to the show on twitter, facebook or e-mail us alerts -- wouldn't you like one from the market when it might be time to buy or sell? with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today. fidelity. i was on the fence about changing from a manual to an electric toothbrush. but my hygienist said going electric could lead to way cleaner teeth. she said, get the one inspired by dentists,
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welcome back to the closi"cg bel bell". it is a bit of a mixed picture the dow going between positive and negative territory s&p is higher, led by groups like financials, technology which actually started the session lower and now number two. health care and telecom also positive staples are the biggest losers we're awaiting president trump, he will make remarks at a made in america event. we will bring you comments from that live, but he is due any minute now meant to start already
but we will check back in when the president appears. >> a >> consistent message to promote america. and meantime president trump and the president of iran exchanges harsh words sparked by tensions over the united states' withdraw from the nuclear deal. >> president trump tweeting in all caps never ever threaten the united states again ourl suffer consequences the likes of which few throughout history have ever suffered before. we're no longer a country that will stand for yourdymented words of violence. be cautious. michelle caruso-cabrera joining us with more on that particular war of words >> the president's tweet a response to iran's president warning the united states not to incite iranians against their government san diego could lead to quote the mother of all wars. president trump not the only voice from the administration in the last 48 hours. secretary of state mike pompeo made a speech in california yesterday to the iranian
community in which he described the regime as a mafia, a group of hypocritical holy men involved in criminal activity. as for the markets, the immediate concern is what an increase in tensions might move for oil markets. oil did move higher but then into negative territory the white house is pushing for all of iran's oil to come off the markets by november, snap back sanctions in other areas are expected in a couple weeks ta that means iranian government wouldn't be able to purchase u.s. dollars as one example. a key issue say whatever or not iran would shut the strait of hormuz in retaliation. military experts think if it happened, it would only be a matter of days where the u.s. navy could reopen it, but it would affect supply and sentiment during that time back to you.
>> mais >>. >> might be he wilchelle, what t step here? what sort of key steps to we have to watch that could lead to that point >> i think that we wait to see if we actually see the administration say out loud they want regime change they hint that is what they want that is what rouhani clearly felt he was hearing from mike pompeo and what would that mean and i think we watch to see what happens in iran where the economy is struggling already and then on august 6 when these snap back sanctions start to go back in to place which will prohibit trading in sovereign debt, any kind of big transactions won't be allowed anymore in the auto industry the same for the airline industry as well where they were really hoping to revive the airline industry but what is next i think we will hear from the president again because he is
like a dog with a bone on this topic. and i wouldn't be surprised if it maybe doesn't get mentioned here today during this manufacturing event. >> michelle, two questions from me one, has this tough rhetoric, how does it go down within his own party, and two, within the minds of international allies. have they softened their criticism of the president for pulling out of the deal? >> i think you add this to the list of concerns that allies have about him changing direction from what has been the traditional path, whether it is democrats or republicans you know, the tweeting, et cetera in europe most wanted the u.s. to stay in the deal. you saw how hard macron worked to try to get him to stay. so i think that it is not going down well with allies. and what was your other question >> for the republican party. does this upset some of the criticism the republicans have with him from helsinki
>> quite possibly. i mean this is much more in tune with what the republican party feels about iran as compared to what appeared to be a soft stance on putin which definitely goes against what most of the republican party would feel. >> okay. michelle, thanks very much and for more on iran and why national security adviser john bolton is doubling down on president trump's threat, you can head to cnbc.com we have it covered for you less than 40 minutes before the closing bell and we have things -- seen things go pretty positive this afternoon. the dow around the flat line, but at one point it was down 74 at the low coming up, a ritz cracker recall sending one food giant lower and later, papa john's getting slammed as the company's board takes step to limit its controversial founder's por.we details behind that particular move coming up
welcome back to the "closing bell." let's check in on some stocks to watch. certain ritz crackers were recalled over concerns of salmonella that stock down about 2% some of the other concerns around this one center around the macro issues kevin goldman of jpmorgan lowering his numbers on the strong dollar, a company that sells 80% overseas, so they get hurt >> salmonella, you don't expect from crackers.
>> no. it is in the whey powder which did issue a recall so just being cautious >> and we will go to the president at the made in america event. it is just beginning >> i want to thank you and welcome everybody to the white house for the second annual made in america showcase. made in america, made in the usa. what do you like better? made in the usa? made in america? both pretty good i remember when i was growing up, i'd see made in america all over the place a little bit made in the u.s., but made pa in ameriin a mad maa and we're here to celebrate the greatest products in the world, products made with american heart, american sweat, and american pride we're thrilled to showcase incredible american made goods from all 50 states we have snowboards from
colorado those are nice snowboards. ten years ago i was perfect, now i don't know beautiful job. cowboy boots from texas. i like those boots baseball bats from pennsylvania. i used to play baseball. boats, cars, spaceship we know about the spaceship. and in case you hadn't noticed, there is an f-35 stealth fighter outside. and it is beautiful, parked on the south lawn i guess getting it here -- i know it didn't land on the south lawn, but something we special where is lockheed? incredible i said how do you compare this with a certain other plane from the enemy.
and he said the difference is when we fight, they can't see our plane. sounds like a pretty big advantage. called stealth all of these products have something special in common. a big beautiful seal and that is with the sign in this case made in the usa, also joining us today and at the event is nasa administrator jim bridenstein. jim, thank you and marilyn, thank you for being here from lockheed martin. after many years of decline, american manufacturing is coming back bigger and better and stronger than ever before. it is happening. we're in the midst of a great economic revival in the united states we've added 3.7 million new jobs since the election, including more than 370,000 in manufacturing alone. remember during the campaign they all said oh, you're never going to add manufacturing jobs.
that is obsolete they would say. it is obsolete to make things? i guess they were wrong. we're adding a lot more. almost a million workers discouraged buyer the poy the p the previous and other administrations have now returned to the workforce. new unemployment claims are at the lowest level in almost half a century. think of that. lowest level, unemployment claims that is a big one. unemployment rates for americans, for african-americans, hispanics, asians americans, all of us, lowest ever these are the lowest levels for african-americans, hispanics and asians ever recorded think of that, ever recorded and women, unemployment recently reached the 65 year low.
we think that is probably the lowest ever. but as i've been saying in two weeks or three weeks, it will be the lowest in history. pretty bad when you say lowest in 65 years and i say that is not as good as history but very shortly it will be. manufacturing wages are expected to rise at the fastest rate in more than 17 years and 95% of american manufacturers, which i love, that is what we love, manufacturers, are optimistic about the future that is the highest level ever recorded 95%. we have achieved together in the last 18 months something that is totally unprecedenteunprecedent. for decades the united states allowed other countries to steal our jobs, close our factories, and plunder our wealth what was happening was horrible. i used to talk about it for 20 years in the private sector. i said how did they let this
happen little did i know i'd get my shot at what happened. and that is what is happening to us because it has really been positive our leaders in washington did nothing. they did nothing they let our firefighter actori our people lose their jobs, jobs given to workers in far away lands. that is fool's trade, that is stupid trade and we don't do that kind of trade anymore. the european union has been very tough on the united states, but they are coming into see me on wednesday. and we'll see if we can work something out. otherwise we'll have to do something with respect to the millions 6 dolla s of cars thatd in every year. maybe we can work something out. we're talking to china who had a $375 billionle trade s ltrade st year or looking at that time
differently, we had a $375 billion trade deficit. that is not good and we're talking to china very seriously. we're talking to mexico on nafta. and i think we'll have something worked out the new president, terrific person i spoke to him at length on a call did a great job, got a tremendous vote. and they have a lot of confidence in him in mexico and that is good but we're talking to them about doing something very dramatic, very positive for both countries. we're demanding fairness with the world trade organization it's been a disaster for the united states. and we want fairness we lose court cases -- >> president trump speaking at a made in america event at the white house touting his idea that manufacturing in this country is coming back he says bigger and faster than before he cited manufacturing optimism
which is showcasing some products including the f-35 stealth fighter by lockheed that are made in america. and talking about trade and relating it to this issue that we've been unfairly treated, attacking president obama and other predecessors for food's trade and stupid trade which he said is no longer happening. and he even expressed some optimism around the european meeting happening with jean-claude juncker on wednesday. and by the way the pay sow gettige pes getting a pop on that. >> and some debate over whether made in america or made in usa >> i think he is fine with both. >> exactly right let's bring in kayla tausche for more analysis. >> it is a wide ranging audience that the president is speaking to you have manufacturers of everything as small as small copper lanterns and whiffle balls to the f-35 fighter jet that lk heed martin ockheed mar
on the south lawn. a lot are there to hear the trade message, he said we're talking to china very seriously which is an interesting remark considering what we heard from the treasury secretary over the weekend where he essentially said that no progress had been made in recent weeks with china which is certainly a comment that the market was hanging on as for mexico, president trump praising the incoming president of mexico, he said he is a great guy, that they had a long phone conversation and that the u.s. and mexico are going to be doing something very dramatic but in the comments that we just heard, the president didn't really allude to exactly what that would be. we know the white house is negotiating both a bilateral deal and also a tri-lateral nafta deal the strategy is broker a deal with mexico and force can inadao go along with that might not be successful with
canada which has shown itself to be a tough negotiator. so we'll see what happens this week when the mexican economy minister comes to the u.s. for those talks and whether they can in fact get something dramatic nobo negotiated >> on europe, president trump said that they have been very tough, they are coming to see me wednesday. he said i hope we can work something out. if we can't, we'll tax their cars do you have any sense about what the administration specifically wants out of the europeans to make some sort of deal >> well, they say that when the president met with g-7 allies and met at nato, that what he said is he wants to lower all tariff barriers across the board, that he sat down and proposed a free trade deal and said you take away your tariff barriers, we'll take away ours that's what officials say defends the president as a free trader we've heard that quite often so essentially what the white house wants is for the eu to come and say we'll be lowering our tariffs on automobiles
if you guys drop this investigation. but what we've heard so far from the german chancellor in her press conference on friday as well as spokesperson for the eu today is that president juncker might not necessarily come with a fully baked offer intact what they will be doing is just opening up a discussion and seeing what flows from that. so itmight not be as koid file codified as the u.s. necessarily wants. >> yeah, that could get tricky kayla, thank you >> as the brits no doubt know as well, it can be hard to negotiate with the eu. time for a cbs n nnbc news upda. the duck boat that sank last week killing 17 on board has been salvaged. divers swam down to the boat connected to a crane which then lifted the investigational to the surface. it will be taken to a security facility as officials continue
to investigate what caused that boat to sink >> one of the focuses of the investigation is to determine whether or not the operation and this particular voyage was conducted in accordance with the operation ald mal manual and it be up to the investigation to help us ascertain this a 12 story building in miami beach fell this morning and it was caught on camera at least one person was critically wounded by a large piece of flying debris k-9 search teams are searching for potential victims. construction crews were demolishing the building when it cl collapsed. and tim tebow is reportedly out for the season this after breaking a bone this his right hand while swinging a bat over the weekend espn reporting that he will undergo surgery tomorrow you are up-to-date this hour i'll send it back downtown to you guys >> sue, thanks coming up on the "closing
bell" on, what is next for the auto giant fiat chrysler its former president will join us join us next. your joints... or your digestion... so why wouldn't you take something for the most important part of you... your brain. with an ingredient originally discovered in jellyfish, prevagen has been shown in clinical trials to improve short-term memory. prevagen. healthier brain. better life.
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take a look at the peso. i mentioned the dollar moving lower just after donald trump said that his administration is talking with mexico on something, quote, dramatic on trade and also complimented the incoming president there >> amazing if they really secure a deal a lot of people suggested that this election victory would be bad for the president, but seemingly from that comment could be -- >> i think the big wild card, what does it mean for canada fiat chrysler ceo sergio marchionne has been replaced following a rapid decline in his health >> and phil lebeau in chicago with the detail the of the departure and what we know about the new leadership >> let's focus on the new leadership we've talked about sergio marchionne and he is a giant in the auto industry. for good reason. he has been focus of a lot of attention today. let's talk about the person who is going to be replacing him,
who has replaced him at fiat chrysler, mike manley. and if you are not familiar with him, you should be he has been highly influential in the success of fiat chrysler. he has run the jeep division since 2009 and he's also run the ram division the last couple years jeep is the most profitable part of fiat chrysler what kind of performance has it posted under mike manley look at this global sales back in 2009, about 338,000. what was it last year? 1.4 million. that is a growth of more than 300% under mike manley's leadership and wall street is familiar with him. a couple notes out today, morgan stanley writing we hold mike manley in high regard. he has deep experience running fca's two most valuable businesses barclays writing the investment case for margin expansion and eventual strategic options
remains intact so as you take a look at shares, which by the way it was down pretty heavily during the day, it has come back a little bit throughout the day remember, mike manley will be talking with analysts on wednesday when the company reports its second quarter earnings that is likely going to be the first time we hear from him about his vision so to speak for fiat chrysler. >> investors are certainly eager to hear it phil, thank you. joining us now to talk about it, former chrysler president. we understand when marchionne took over, you were the executive in charge of the transition tell us about that period and how you feel about the fact that he is no longer going to be ceo. >> well, obviously i'm saddened by that news sergio has done a tremendous job for the country and the industry he really brought business into the auto industry in a way that nobody else could. chrysler is in much better
position than it was when he took over. he had a vision, he was able to cut through a lot of the issues that we had prior in the bankruptcy because he started with a clean balance sheet and very good financial position through that period of time, he's built a company where you just saw the numbers in terms of the growth first quarter earnings were up i think 53% versus last year sales are up twice the market. so the company is in very good shape with marchionne leaving. >> the share price this morning was down 3.5%, now down about 2% dunk that recov do you think that recovery is justified? the fundamentals haven't changed. >> they really haven't actually sergio was the architect of the recovery and the prosperity but mike was a key player in making it happen you just saw that. and i think that the difference
may be style i'm sure mike is going to have a very similar strategy. he's learned from sergio over the years. he is sharp. he is a good dealer guy. and i think one thing that you will find with mike, he is a consensus builder. and he may not have the same attraction to the media, but he inside the company as a leader, he will be very effective. >> does he have the same attraction to the president of the united states given how important discussions are around tariffs? i'm serious about that will he have the same weight in the room of trying to argue the point of zero tariffs to the president? >> i think he will because he comes to things in a very rational way. and when you find out one of the things that mike did that wasn't mentioned in the introduction, he was also in charge of the international separatio international operations what daimler left was nothing and has built it into their
biggest growth portion of the company today. so he has a perspective both of being european, having been in international business and i think that he can add to that discussion in measurable ways. >> a lot will depend on that meeting between 2ru6r78 atrump european commission president. jim press, thanks. when we come back, papa john's board of direct are tors ta taking new measures making sure its controversial founder does not gain much control of the company. and at expedia, we don't think you should be rushed into booking one. that's why we created expedia's add-on advantage. now after booking your flight, you unlock discounts on select hotels right until the day you leave. ♪ add-on advantage. discounted hotel rates when you add on to your trip. only when you book with expedia.
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shares of papa john's lower after the board issued new measures to limit its founder's control of the company >> kate rogers has the details >> that's right, the stock hitting a new 52 week low on news that the board adopted a poison pill to keep john schnatter from buying more shares to try to take control of the company. the plan will kick in if anyone acquires 15% or more of the common stock without approval of the board. is that t the plan would be activated if schnatter or his associates attempt to acquire more shares and the plan won't keep the
board from considering any offers fair and in the best interests of the shareholders. this is in the wake of schnatter resigning from tchairman he still maintains a board chair. and the board voted to remove schnatter who of course is papa john's from its advertising materials. schnatter is not commenting, but his attorney maintains her client is not stepping away from the company without a fight and a source close to the company told me the problems go back years. and that schnatter's behavioral issues have been known about for quite some time. and accusations being difficult with leadership are true back over to you >> what a disaster and look at the stock price down another 10%. >> kate, thank you very much. still ahead, alphabet, google, set to release earnings after the bell we'll break down the numbers as
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welcome back we have have about six minutes of trade >> and after the bell, tesla asking some suppliers for cash back to help turn a profit has the company hit a new road block? two analysts will weigh in hello. let's go for a ride on a peloton. let's go grab a couple thousand friends and chase each other up a hill. let's go make a personal best, then beat it with your personal better than best. let's go bring the world's best instructors right to you. better
welcome back a couple minutes left in trade let start with the ten year treasury note. a significant move higher, whether because of hopes of a strong gdp print or the move higher in the japanese bond market and if we look at the sector performance, it is that move in yields that has driven what has happened in the equity markets today. banks performing well as they often do when yields are rising. up about 1.3%. tech stocks up a bit, industrials at the bottom. utilities close too t the bottos well the dow a little bit lower, s&p, nasdaq higher. but we were much lower and that on the dow earlier dollar index just very quickly, not that much higher despite the move higher in yields. a little bit of dollar strength there, but not as much as we saw in recent days and week. and just to finish with a look at google. of course just after the bell,
up 7% month to date and 15% year to date. what will happen as the numbers hit is the big question. >> and faang outperforming throughout the month, but other sectors have been doing well the yield curve steepened today. retail has been a consistent outperformer we hit new highs every day in a number of retailers. there is just today for new highs. that has been performing a lot better and dramatically better than this time a year ago we've had the transports, good earnings results from the transports united airlines had good numbers. csx had good numbers and we'll get norfolk southern tomorrow we did have a little weakness in the semiconductors morgan stanley analysts were making comments about the semis in general micro was weak earlier on. and we're still waiting for the chinese to make a decision on the nxp deal hopefully that will get to us by wednesday. but semis in general have been
on the weak side >> and all eyes will be on google as we said. usually those numbers do hit right at the top of the hour so we'll be focused on that. there goes the bell to close out this day up slightly on the s&p, russell and the nasdaq ringing the bell, the republic bank corp oig. sarah, back to you sarah, back to you welcome to the "closing bell." wilfred frost will be joining us in a moment. finishing up the day, kind of a mixed session. s&p managed to close higher. dow lower by about 20 points or so off the worst levels of the session. big winners are financial and information technology, the nasdaq closing up 0.3%, it was the big winner on the day. russell 2,000 around at flat
line big names reporting earnings from alphabet and td ameritrade. both closing hied higher. josh lipton will cover alphabet, seema mody will bring us td ameritrade in the meantime, we have michael santoli, bill smed, and also biggest winners in the dow, jpmorgan the s&p, hasbro was the biggest winner halliburton the biggest loser. which shows us that these are earnings related stories >> they are. within the market, of course yield related stories as well. but i think the overall picture is that the market keeps finding a way for the top to keep spinning it was ten days ago that the s&p first got to 2800.
barely buncheddged a few pointsm there. so there is a general flow of earnings, but it seem like we're waiting something. >> from a macro perspective? >> maybe a break one way or the other on yields or something like that. >> what gdp print would be enough for people to be surprised to the up side are we pricing in over 4.5% already? >> that is about the threshold where i would say that is genuinely a surprise because i think anything in the low 4s is around what people are looking for right now. but 4.5% and above and we'll pick that number apart. there will be a lot of oneoff things including soybeans. but any print close to 5 i think will get people's attention. >> and when you see the sector performance that we had today, banks moving higher, technology the second best sector, is that something that encourages you that we've got quite a bit of momentum behind this market in the cyclical names >> we like the momentum in the financials because they have been correcting since the end of
january. but i'd like to mention that it looks like oil, the bear market rally in oil is over and ironically it peaked at the height of the summer driving season i haven't heard a lot of people mention that on your show. also, there is a lot of people looking for oil service stocks to get going, but the stock market is an anticipatory vehicle of 9 to 12 month looking ahead and if oil was going to $100 a barrel, you'd see a better performance by those stocks right now so the camp playing the higher oil prices, they have to be real nervous. and the people afraid of stocks that are hurt by that should take a look at higher consumer spending once the oil price goes down >> and what is interesting to see oil prices going down today on a day where the president really threatening iran after some hard comments from iran i mean these are two major oil producers.
you would think the price would sky rocket and it ended lower. >> it has been counterintuitive for a while. sometimes that does tell you that the market very near term is swewell supplied. but i don't know how to pick apa part the message there >> what is your view in terms of energy sectors at the moment >> today we had halliburton get a verystrong earnings report out and stock headed downward because it had a big position in the permian basin in west texas, that basin has oil costs to deliver at $22 a barrel. so at $68 a barrel is a huge amount of profit, but they can't get it out of there. so what we're seeing is kind of within the oil market, the story that basically the hot economy -- >> john, hold on one second. alphabet's numbers just hit. josh lipton has them for us.
>> alphabet reporting eps of $11.75 versus forecast of $9.59. revenue coming in at 32.66 billion. analysted modeled $33.2 billion. and google properties revenue 23.3 billion google advertising revenue, 28 billion. google other revenues, so cloud, hardware, 4.4 billion. and so total tac at $6.4 billion. so a percentage of ghoogle iz itting revenues at 23% properties up, cost per click down >> and the stock popping after hours. thank you for those initial numbers. 3.4% and the bar pretty high. >> it was pretty high. be interesting to see just exactly wheres earnings beat came from. because earnings -- i mean
revenue was not that much of a beat on the top line so obviously something has it fell down to the bottom line was much more favorable than expected i don't know if that means how-46 what happened with margins or all the rest, but definitely taken very well by the market >> john, let me come back to you. sorry for interrupting you on the energy question. let's focus on google though what is your take on this? a 4% jump pretty attractive. >> yeah, great beat of earnings. i'm not surprised the stock jumped i'd say you're looking at a stock that is 29 times earnings, but you have a ratio of 1.7. 20% growth year on year looking back or looking forward. and this is telling you that they will deliver on that and it will happen. >> bill, what is your take on google >> google is one of the truly great monopolies that ever existed and probably might be
the most powerful entity in the united states of america and more powerful than the united states government so therefore until washington, d.c. recognizes there is somebody more powerful than them, that game will keep going. >> if we could i have into some of these names, paid clicks up 58% year over year, average cost per click down 22% so that is talking to some of those themes with the eps beat so significant >> and cost per click decline i think has been a permanent state of affairs that always happens. the traffic being a we significant cost was an area people were watching it has been trending higher.we significant cost was an area people were watching it has been trending higher. we significant cost was an area people were watching it has been trending higher.a we significant cost was an area people were watching it has been trending higher. basically if more traffic is on their own properties, it will be more profitable. the cloud business, you don't know if that is an area within google where they might have had a bit of outperformance 37.
>> and the comments will be key. and about the size of google, taking out the european union fine which was a record, i think people want to know how they will change their business if at all to respond to those antitrust -- >> and we've already had experience in europe with the new sort of privacy protocols. they have had to make those changes. so you will to hear what they say about whether that has actually changed anything in terms of business trends >> we talked last week that the miss shouldn't influence the rest of the bank share prices. should alphabet be influencing >> i would think only facebook if in fact you basically feel as if it is just an extra tail wind on digital ads, that would be the one area >> this is up. >> so that would be the one read through. but beyond that, no. >> bill, you were going to say something? >> yeah, google is the one company that you couldn't live without. right? when you get binged, you get angry because it is not a good
search so you can't live without google they know more about you than anybody besides god. and therefore their power is going to grow. the problem is at what point do we recognize that they are standard oil company and it is not a good idea for three or four companies to control the entire united states of america. >> can i jump in >> ure very quickly because we have other earnings >> what i want to say is that desktop market share for google is 72% and mobile market share is 95% so bill's entirely right they have a big anti-competition problem. >> with shares up now 5% in the after hours, google, we'll keep an eye on it and td ameritrade earnings are also out seema mody has those results >> reporting a 9 creent beat on its bottom line.
now, interestingly enough average client trades per day of approximately 784,000, that is up 54% year over year. perhaps benefiting from the higher volatility that we've seen in this environment shares basically higher by 0.75%. >> sort of a good snapshot of what we've been seeing and it is a stock that has done pretty women >> it has. actually the discounts brokers have been a good place to be e-trade hitting new highs. but mostly because of these trends when short term interest rates go up, they benefit. the trading number is probably a good up side surprise. and people not too worked up about the fact that there was a little bit of a smahortfall veru
estimates. >> u.s. ten year yieltracking a massive move germany's ten year yield also rising to its highest level in just over a month. bank stocks surging on the rise. and rates the headline was the fact that the bank of japan is thinking about an exit rick santelli saying that will be very difficult. but clearly this is a global sort of move >> yeah, almost as if yields just got released for a little bit of a lift. it is unclear if it will be the beginning of a larger move we've had a lot of the head fakes with regards to the bank of japan over the years. the other thing i think people are talking about today is a tremendous amount of new treasury issuance coming this week mostly between two and seven year maturities. so maybe a little bit of lightening up ahead of the auctions so probably something that obviously welcome for the financial stocks people have been waiting for a move like this but it is not clear that we'll
be rolling back on the ten year. speculators are still very, very much leaning in the direction of higher yields. so unclear if the market will cooperate. >> john, do you like the u.s. banks? >> daird >> today was pretty much a trade to quality you like the banks that are good like jpmorgan. but bomb light you are seeing credit spreads go up the last four months. so there is quite a bit of worry out there that is not being priced in today. so we can talk about the rates, but also the spreads and i think there is a lot of risk out there so only the high quality banks >> td ameritrade, the discounts brokers are feeding off -- we have legendary record margin balances right now people are using margin to trade the faangs and it is trade like chuck i mean they are all out there
trading like chuck, so they have less assets under management and doing way more trading 50% more trading that is scary if anything goes wrong with that virtuous circle. >> okay on, guys we'll leave it there for now thanks very much google parent company alphabet out with earnings minutes ago. shares trading up sharply off the back of those numbers. eps beat was significant and revenue beat slight. but it is the eps beat that has it up about 4% or so >> record high >> much more analysis and reaction from a shareholder in google coming up also, washing machines were the first targets of president trump's trade and tariff war the move you was originally seen as a boon for whirl poopool we'll see if that indeed was the case you always pay your insurance on time.
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i want all of it. great to have epix? open this. you'd laugh. you'd cry. don't you think i had dreams and hopes. what about my life? what about me? maybe even laugh while crying. so you know, even if you're a psychopath, it touches your heart. sounds pretty great, right?" we're on to something. come on. and the best part is it's easy to upgrade. just say, "add epix." epix has a whole lot more. whoa! google parent alphabet just out with earnings. and soaring in the after hours session after a big beat on the bottom line. joining us for some reaction,
from morning star and also from newberger berman the big profit beat, is that an expense control thing? >> i think management has been focused on trying to moderate expenses but what is key ultimately is that the top line performance appears healthy. so you have the core of google search business, you have youtube and you have newer businesses like the google cloud platform and then of course you have areas like waymo and autonomous driving. so we think there is a lot of interesting 2r50drivers here >> and paid clicks up 58%. and cost of those clicks fell over 20% is that driving the share price performance? >> yes, to a certain extent. and on on top of that, if you look at the tacs, they are around i think 23% of the advertising revenues and that is a little bit lower sequentially than last quarter so i think that is pretty good
news too >> of the new parts of the business, the bolt gsh -s if yo will, which were you most impressed by in these numbers? >> well, as you know these guys don't break out their revenues when you are talking about other revenues but you look at other revenues and it has grown i think around 36%, 37% year over year. and i think the main driver is the google cloud platform. i mean we here at morning star, we are thinking that the overall cloud space is probably going to grow at around 30%, 35% a year so all of that is pretty good news and then of course as your other guest stated, don't forget about youtube. there is a lot of growth potential in youtube sflp a >> and if we talk about the longer term risks, i guess they would be regulatory restrictions, but also the potential for advertising market share loss to the likes of amazon or even the speakers
alexa type platforms i would imagine nothing this these numbers gives you a reason to think that those threats are imminent >> from the data, it didn't seem like there a specific issue this particular quarter when we think about the longer term trends here, this is a shift from offline to lionline so if they deliver value, we think there is a significant runway given how strategic they are coming to both sides so certainly risks we wouldn't discount any of that but if the company continues to invest, to innovate and demonstrate their place in the world, we think that there is significant up side from here. >> so ali, you sounded pretty positive on the results for a guy no has a price target of $1200 which is below the current share price. >> yeah, it closed around our fair value estimate or the price
targ target it looks like we'll probably have to adjust our numbers a little bit but over aall in terms of the company as a long term investment, we continue to think that takes solid company with what we call multiple sources and competitive advantages and again as your guest described, the network effect that these guys have is very strong and continues to strengthen every quarter >> and is the eu fine a oneoff or more to come or does it have implications for facebook as well >> i think we'll continue to see a lot of scrutiny for google oral facet and facebook in all of these companies and what is important for them is to demonstrate and really educate their users in terms of what it is they are doing with the data and the users have to agree that there is value to them and so i don't think by any means that there aren't future risks and what is critical for these management teams and these companies is to really demonstrate a willingness to work with the regulators both in
the eu, in the u.s. and globally but if they are able to do that in a way that is staying true to what they are doing and also enabling the data and security of the users to remain safe guarded, then we think all sides could win. >> how much does this raise the bar for facebook on wednesday? >> i think it raises the bar a little bit but facebook has generally been executing quite well they were in the spotlight a lot more this past april and so i think it behooves them and all of the companies to really demonstrate on a go-forward basis that their willingness to acknowledge these issues, embrace the fact that they need to change, and bring their users along with them. and so facebook, google, a lot of these other companies are facing these issue, but the management teams appear to be really tackling them head-on >> and the revenue growth appears to be there. >> in the case of alphabet today, yes and we think that the name alphabet continues to remain an attractive multiyear growth
story. >> all right we'll leave it there thank you both very much and of course the facebook numbers will be live on "closing bell" on wednesday and amazon thursday let's get to a news alert out of washington on tax reform eamon javers has the details >> chairman kevin brady just told folks up on capitol hill that he expects to have what is called a discussion draft of tax plan 2.0 for republican lawmakers to look over tomorrow or as early as tomorrow. we'll wait and see whether we get an official copy of that draft. but this is something that republicans and the president have been talking about for a while now which is going back and picking up some of the low hanging fruit from tax reform that they weren't able to get done in 2017 and trying to get that done here in 2018 congress watchers though are a little skeptical that republicans can push it through in an election year. nonetheless, it should give us a framework to see where they are headed in-itin-it -- intellectu.
you can expect that they will talk about the tax reform plans a lot going into november. >> and i was wondering what the political -- how much ever of a uphill battle this will be and i know larry kudlow told us last week that there was talk of making the individual cuts permanent for one. that would be a priority what else do they have on their wish list and is there ever a chance of this happening >> that is a big one that would be a big lift and a lot of other things on the wish list so we'll see what mr. brady has on his wish list as early as tomorrow. is it going to happen? in-you'd ha i think you'd have to say there are long odds. things move slowly in election years. everything gets harder to do so this might be more of a political framework here for the vision for tax reform if republicans win in november. this is something that they can point to and say look, this is
what we want to do, you have to elect us, give us another chance with the majority in the fall. >> and mike was saying that for the market to be positively surprised on gdp print on friday, it would need to be 4.5 plus how much would it have to be for his base to be surprised for him to meaningfully celebrate that number and increase the support particularly with his base >> on gdp? >> i feel like takes wit is a w either way >> yeah, if there is any type of good gdp print, the president will celebrate it with his base. i don't think -- there is an expectations game on wall street, but i don't think that exists necessarily in washington politically i don't think that matters for his base i think that they will look at good news as good news >> okay. thanks very much eamon javers for us in d.c many analysts have said there can be no winners in a trade war. we may find out if that is true.
"washington post" has gone crazy against me ever since they lost the internet tax case in the supreme court two months ago >> and he followed up saying in my opinion the "washington post" is nothing more than an expensive, paper loses a fortune, lobbyist for amazon it is used as protection against
antitrust claims which many feel should be brought question mark. leaving that open here hooe here to discuss are our "fast money" traders amazon has been the target of his tweets before. he did use the antitrust word though is that threatening or are you a buyer? >> last time he did this was three weeksish before they reported their quarter and one thing i said was you know what over the course of a couple weeks, jeff bezos has said nothing led me to believe that he will let his quota do the talking and bezos isn't going to make any comments about this either i think that he will let the
quarter do the talking again problem is it has had a tremendous run but i still think that amazon can tweak levers, levers being basically margins, operating margins. you see them go from operating margins of 2.5% to maybe higher. and i think that you will see the stock continue to go higher. he will let the stock performance do his talking for him i believe. >> and i would argue before trump got involved here, you could make an argument for amazon and antitrust these are guys that will make a billion six in operating profit on $40 billion in revenues and let's face it, there is a lot of industries where they don't have a controlling stake but they are in there to put other guys out of business. i don't think that we should put them out of business i love amazon. i think the total addressable market is why you want it buy this company they just started in brazil and other parts of southeast asia. so i like the story. i think aws margins will actually go down
>> they may. >> and mike, i know you're not a lawyer, but an expert on many things does the government have an antitrust case against amazon if they want one? >> i appreciate you good emptyiempt exemp exempting me from than about i think it is a tough pull to be honest with you for antitrust. just in the ways that you see what percentage that i market do they control, that is what you would look at. what i find interesting, the market reaction gyrated. and then just sat there at 1800 and change it shows you that there is a fleeting impact. i don't think anyone is drawing the line between that tweet and ultimately some kind of regulatory action. >> it is a love/hate relationship just last week he was defending google as one of our crown jewels and getting slapped with antitrust action from the eu and now he is threatening
antitrust action on amazon >> he was only defending google because the eu went after google and it backed up his argument. he claims to be the most business friendly president of all-time i don't think so i think he is more teddy roosevelt in my opinion than ronald reagan. >> and just quickly out of the rest of faang, what is the top pick for you >> i think it is google. i think these numbers at least tell you where their core business is. but it really comes down to valuation. when i look within faang, i think facebook has a great valuation, but i think they have some issues. i have a tough time with netflix at this point. google is a name i own and i think their fundamental business again you are talking about $4 billion, $5 billion businesses three of which are very undervalued. >> bguy, tim, thanks and coming up on "fast money," gene munster will be there for instant reaction and let's take a look at how
markets finished today on wall street the dow was a little bit lower, but in general performed better closing down 13 points had been down as much as 70. the s&p up 0.2%, nasdaq up a a little and earnings movers to check on here. alphabet, big winner in the after hours session up more than 4% right now td ameritrade also higher to the tune of 1% let's get to some of the other big stories happening today in our rapid recap. president trump blasting iran warning that country to, quote, never ever threaten america. >> iranians are frustrated about the u.s. efforts to tighten the demand for iranian oil around the world. >> president trump taking aim at amazon tweeting the amazon
"washington post" has gone crazy against me ever since they lost the internet tax case when the u.s. supreme court two months ago. >> shares of fiat chrysler tumbling on news its ceo march yoen oig sergio marchionne is stepping down >> i think it is hard to name any other ceo that has compiled his record >> tesla reportedly asking suppliers to give cash back in an effort to cut its losses. >> any other company, forget about auto company, where you see them playing hardball with suppliers and trying to in essence run the business more profitably for shareholders, you are like yeah, that's what i want >> and over a dozen ritz cracker products over concern that an ingredient may be tainted with salmonella >> papa adopted a ne tactic to keep john schnatter from buying more shares to try
to take control of the company lots of individual stories today, but the key one really was the rise in rates when it comes to market. >> that was the one that definitely has been a change of trend. so how many days in a row has rick been talking about we close in the 2.8 and jump right to 2.96 i think that will be the suspense for the rest of the week >> okay. let's have a ncnbc news update >> here is what is happening the white house is threatening to pull the security clearances of a group of former intelligence officials including former cia director john brennan. they have been outspoken critics of president trump's policies. >> not only is the president looking to take away brennan's security clear answer, he is also looking in to the clearances of comey, clap he, hayden, rice and mccabe. they politicize and some n. some cases monetize their security
clearances >> a judge has agreed to delay until july 31 the criminal trial of paul manafort on bank and tax fraud charges. he has pled not guilty the trial had been scheduled to start wednesday. british foreign secretary jeremy hunt meeting with his german counterpart in berlin, warning that the country could crash out of the european union next year without an agreement causing economic and political damage on both sides you are up-to-date that is the news update at this hour back to you. >> sue, thank you very much. very interesting first bilateral trip for jeremy hunt as the new foreign secretary to make and strong words in his speech trying to say to the rest of the eu, look, we won't blink if you push us much further -- ?
>> i think part of it. but the german's comments, he said we've agreed to prepare bilaterally for the time after brexit so on germans putting a little bit of pressure on the eu ghoesh great tors to say come on, let's get something done here. so we'll see if it is enough >> you don't see the sharp alarm in the british pound yet >> i think you probably have seen that in the last month on or two back down to the low 130s and we've been at 144. >> i think it is seen as a lot of posturing >> and we want to hit whirlpool earnings contest take brewsa brewer has numbers. >> a big miss. whirlpool says its earnings per share at 320 versus 369. and revenues missing $5.14 billion versus the 1.29 pld.
it has lowered the full year guidance from 1563 to now between 1420 and 1480. it says that its margins here in europe, the middle east and africa were below expectations as a result we are taking strong actions to improve our operational execution. we remain confident that we will deliver value for our shareholders in the coming quarters remember there was a lot of attention here on whirlpool because they wereone of the first beneficiaries of the tariffs that were slapped on imported washing machines. they had pressed the administration for some relief from companies like lgel a land samsu samsung, but recently the share price has been down 15% as costs have skyrocketed and look at the share price now, down more than 8%. >> contessa, thank you very much mike, this was quite an important one for the president's tariffs. >> and you had this idea of a
pricing umbrella and then blaming europe and the rest of that region is very interesting. obviously the dollar should have been a help in most of the period on a year over year basis during this quarter. so that really wasn't the source of it. it is a tough business by the way, it always was a tough business which is why they are always calling for help. >> they got it >> yeah. >> but didn't help that much >> a smart part of samsung's earnings that they have taken more of a hate than perhaps expected ludicrous and desperate tharthat is what one automatic may have consultants is calling tesla's latest move. and we'll tell you what the automaker is up to
of course we did ask about the european commission decision to hit google with the $5 billion fine i asked what are the knock-on effects to her international business just given the tweaks that they have to make now unbundling the play store. she declined to comment on that issue specifically, said the ceo would address it on the call right now. and i also did ask about president trump's tweet, you will recall that the president tweeted what seemed to be to some support of google said the eu hit google with this $5 billion fine, called google one of the country's great companies. i asked ruth porat her reaction and she declined to comment on the president's tweet. she did though comment on gdpr i wanted her sense of what the new data a privacy law will mean for their business here is what she had to say about gdpr we still think it is too early to comment on the long term impact to the business we've always been very committed to privacy and have great
privacy tools every day. we have taken a number of additional steps such as improving user transparency so it is easier to understand the information we collect switching gears, asked about youtube. certainly when you talk to analysts on the street, they would love ruth porat to start breaking out youtube but when i asked ruth porat about that, no clear indication if she is thinking about breaking out youtube that is coming in the near to intermediate term. she certainly didn't give me a time table of when that might happen head count, that was an interesting metz metric too. up 18% i asked where they are hiring and she said we have a lot of additions in the growth opportunities in terms of functions, it continues to be generally engineers and product managers in areas, longest drive in hiring was again in cloud. and finally certainly the story
last time google reported by capex. so i asked her about that this quarter. how are they thinking about investing. and she said our view is it gives you a lens into our outlook for growth and required additional compute capacity and supporting growth across the business its search, ads, so the importance of machine learning we're looking for additional commute capacity obviously included services demand big up front investments and you are seeing it there. >> great to get that added color. thank you so much, speaking with ruth porat meantime tesla shares falling on a new report raising questions about the company's cash position "wall street journal" saying tesla is pressuring its suppliers to return cash writing in a memo that the money is essential to the company's continued operation. >> tesla responded saying we asked fewer than ten suppliers for a reduction in total cap
ex-project spend for long term projects that began in 2016 but are still not complete and any changes with these suppliers would improve our future cash flows, but not impact our ability to achieve profitability in q3. let's bring in jamie and carmen. jamie, your take on this and in particular tesla's response and push back. >> yeah, thank you for having me and good afternoon look, i think at any given point in time there is a portion of their capex on projects that we aren't aware of that we don't hear about for some time i mean that is what sort of predates big announcements for all we know, this is a thinly veiled media report and we don't know much more from tesla's response this could be related to products that are completely outside of the realm of autos with model 3 and model y and so forth. that is the positive side. i think on the negative side if you want to be bearish here, it
is like any other day with tesla. every hour if but don't like what you heard, just wait another hour, there will be tweets and headlines they cannot achieve profitability in the third quarter with one time wind falls. if that's what this qualifies as, the market will absolutely selloff on that news and view profitability as unsustainable that is the key risk we're more positive and more optimistic here, but again hard to make sort of heads or tails of the reports because they are both very thin >> so even if this is maybe the kind of usual give and take between vendors and a manufacturer, it clearly points to the fact that the market had to respond at the lows of the day thinking there could be something more here, what does test will have to do to essentially persuade the street that the finances are on a sustainable path >> there is a couple things. one, show progress on the xwroes
m gross margin particularly on model 3. and also show what they are doing with working positive. they have had a positive working capital and need to continue to show that is the case. and three show that they have enough runway on short term cash to meet their needs over the next 12 months the thing that we're looking at are the 2019 solar city bonds that are due in november i think that is a real indication of what the credit markets are looking at those are down and i think that suggests there is concern around liquidity for this organization. >> gents, we'll have to leave it there. thank you both for joining us. nike taking another step to revamp the company culture we'll have the details for you in today's takeaway up next. >> and senator elizabeth warren sounds off on president trump rolling back the tax cuts and her party's chances for 2020 all day on cnbc and cnbc.com tomorrow, an interview you don't want to miss
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time chasing the s&p 500 >> he had 10 billion a few years ago, it's been dwindling to some degree >> you have that weird thing with the sec >> he did have a decent year, he didn't go out on a sour note necessary. >> the next story, according to cnbc -- the company is poised to record ad sales of $1 billion as it prepares for a 1019 ipo >> it sounds pretty substantial to me. obviously. >> ahead of what snap would have had at this stage as a private company. i don't know where it fits >> if it's into wedding planning and decorating your home >> here's the next one, following some complaints by
female employees this year, about unequal pay and inappropriate behavior nike is changing the way it awards annual bonuses. the company said it sought to ensure more kidtive pay and support a culture in which employees feel included. and empowered. they didn't directly link it to the scandal that led to those departures, clearly nike is having a little bit of soul searching and adjusting. >> there's best practices being spread throughout the country. trying to sync up pay and performance. >> did it hurt the sales >> no, it didn't hurt the stock or the sales >> nike has a pretty deep gench. it was a lot of negative headlines. the company is trying to address it >> alphabet's earning's call is underway
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welcome back to the closing bell, on this season of the profit, the owner of a women's athleisure company online. >> she refuses to take any risks, despite suffering sales if marcus can't get this owner to think outside the box, the start-up will fade away. >> as i look at the products maggie makes, would i say from a quality standpoint they're superior >> they seem very plane. >> how much different colors overall in your whole collection >> what if you wanted to come up
with a printed fabric or different color? >> i would never do printed. it's a little cheesy >> when i think of prints, they're more fads. >> who created this? >> me. i got bullied with that one, everyone was doing colorblocking. i don't think i would want to be seen in that >> my sister loves them. >> i get the since, and i'm totally reaching here, if you don't like it, it doesn't sell >> it's kind of easy when it's your line, can you kind of control that >> how do you innovate >> i do what i want. >> it's obvious to me that maggie makes products she likes and fit her personality. >> you can catch an all new episode of the profit. 10:00 p.m. eastern time and pacific. hasbro big mover today we'll hear from the ceo and how the company is staying rilntesie after the demise of toys "r" us, next
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telling. and modernizing our organization all around the world our u.s. team did a fantastic job to manage through the liquidation of toys "r" us which is complete. we're building bigger programs for the holidays working for the retailers we've worked with for years. adding new retailers and new exciting categories. >> brian goldner sitting down with jim cramer. double-digit move in the stock. >> don't want to miss that that does it for closing bell. you don't want to miss fast money, begins right now. tonight on fast money the bit coin boom continues, the crypto currency taking another leg