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tv   Closing Bell  CNBC  August 30, 2018 3:00pm-5:00pm EDT

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could be for the nation in terms of finding skilled workers and making sure you have employees with the background you need and apprenticeships paying people to learn what they need to learn could be the key. >> learning a skill is a lot more economical than going to four years of college. welcome "closing bell. i'm wilfred frost at the new york stock exchange. we'll break down those headlines and what it means for investors coming up. it's been exactly four weeks since apple became the first u.s. company to hit $1 trillion. now amazon is on the brink of joining the club what it'll take to hit that milestone ahead. the clock is ticking for the united states to sign a trade deal with canada the latest on those negotiations as friday's deadline looms
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silicon valley may no longer be a welcoming place for startups we'll explain why. "the closing bell" starts right now. good afternoon and a very warm welcome to "the closing bell" bell let's check in on the markets. we had a bit of a sell-off there. >> we saw the major averages dip a leg lower on those reports that president trump could impose tariffs on china as early as next week in washington for the latest on what we know on the president's plans with china >> yeah, that's a report from bloomberg which is reporting that the president plans to impose $200 billion next week. once the comment period for the
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proposed tariffs expires they've been reporting the details for a while that he plans to go ahead and actually impose those duties. there are some conflicting voices in the white house on this i asked sara sanders just a couple of minutes ago about this and she said she has no comments about this as does other white house officials this hour. no comment from the white house right now that's in fact what the president intends to do here the markets obviously paying a whole lot of attention to what the president might or might not do next week, sara >> they have until september 6th, which is one week from now to submit comments, and it's not like there was any traction in terms of negotiation we saw those low level meetings in china i guess i'm trying to figure what what the surprise is here
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because things have not been moving in the right direction when it comes with a trade war with china >> suggesting that maybe things are not going to move along all that quickly in terms of the trade delegation's meeting back and forth. on the other hand, you had larry kudlow, the initial economic director here suggesting that the president is simply negotiating with these tariffs he wants to simply put a shot across the bow in terms of tariffs with the chinese, and that wouldbri them to the negotiating table and therefore it would not be necessary to move forward with those tariffs. so now we're in the point where this is a signal that perhaps this could really be real next week, and i think that's what is raising some eyebrows, people maybe had been lulled into some complacency thinking the negotiations are going on and
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everything is just fine. as i say no confirmation and also no denial here from the white house. sarah sanders telling me she has no comment right now >> sara, you have to say if there was a week to increase the pressure on him was this week. record market highs, an increase in gdp and when emerging markets are feeling stress leverage has increased but also the cover he has here. we're hitting record highs and gdps just increased. so good timing >> we'll wait for confirmation remember these $200 billion worth of imports are ones that really include consumer products that americans buy including handbags and baseball gloves and fish and a lot of food and all sorts of things. it was a big packet. we'll have to go back to it, the list of tariffs. moving on earlier today becky shat down with
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burkeshire's hath away >> that has had some investors maybe a little worried thinking things like maybe things are getting a bit pricey he's been buying back shares of burkeshire hath away, has changed their whole formula for how they value berkshire hath away also been buying shares of apple. in fact, at this point apple is buy far the largest position berkshire hath away owns more than $56 billion in apple shares, and that's interesting when you think about it buzz buffet's never considered himself a technology analyst and he does today. he does say when you start
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looking at apple customers he thinks the phones are essential, and that's something he does analyze. >> i've got a plane that costs me a lot, $1 million a year or something like that, if i use an iphone -- i use the ipad a lot if i use the iphone like all my friends do, i would rather give up the plane if something costs $1,000 the iphone is enormously underpriced and now it's got competition so you can't push the price. but in terms of its utility to people and what you get for $1,000 someplace else, you could have a dinner party. and here this is and what it does, it's incredible. >> buffet says he doesn't use an iphone and he also doesn't tweet. we talked about a fake buffett
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twitter account. he said, look, i just don't have anything i need to tweet or feel i need to get out there. so i asked him about what he felt about ceos who do tweet often, people like elon musk >> i don't think it's helped a lot. it'd be particularly dangerous to start kmcommonitating on mergers daily, but the tweet, i mean i'm not that desperate for someone to hear my opinion on this >> and yes, we do realize the irony of him saying that on television we talk a lot about the different things with buffett when it comes to technology. he doesn't use an iphone, but he does use an ipad in fact, he has a brand new one he was given for his birthday
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that he says he does use a lot and he even listens to podcasts, which is a surprise to me. he said he listened to one yesterday, david chovac did interviewing a good friend of his, and he said that was a fantastic and interesting one as he's known tom for all these years. today is his 88th birthday and he's still doing new things with technology every day >> an enormous cake i saw you brought out as well. and he said he reads quicker than he can listen i want to come back to the apple points, though, because clearly that was a bullish long-term view as the power the iphone has. and the second answer i would say kind of suggested in the short-term he'd like to see the share price a bit lower for the buy he was doing, and was kind
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of contint on apple doing buy backs for the core products. is that fair >> ya, thats's a fair assumption and read off he says he'd love it if stocks sold off, and huge point about what he said about apple at least over the short-term is just what's happening with the buy backs. he said if they buy back 10%, well, that's a huge portion he's getting back, too. they'll be able to buy back more shares with the same amount of money. he likes them very much when it comes to apple >> it's so interesting to hear his thoughts about brands over the years. we played that sound bite what he thinks of the the iphone is indispensable and kraft hines,
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which he's the biggest shareholder in and how they think about american brands and how they're going to turn it around and what sort of deals they're going to make. what stood out to you in that conversation >> that was an interesting one, because i wondered if kraft-hines was in the market for campbells, if they'd be looking at it. and he said he didn't know exactly their tax pace and he didn't know the numbers. that said to me they had not been analyzing this as a possible purchase. he said these brands are phenomenal brands and are powerful, but he says you're paying more for these brands than you would necessarily ten years ago. that's why he made it pretty clear berkshire was a big hurdle that's not to say no one would, but that's his analytical mind and how he looks at it and
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analyzes things. >> becky, thanks very much i agree i thought his comments on brands burn that positive it was a good call >> he appreciates the nasdaq as he said the value in those brands but on deal making whether you add to the portfolio at this time in which he describes a tough environment, retail versus big brands, it's not so clear-cut. let's get to our closing bell exchange. joining us oliver, shannon, and rick santelli at the cme in chicago. clearly we've seen the market tradeoff on the china news >> i do believe that anytime the
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market is sold off on tariff, trade fears or the like it's been a buying opportunity. so for me to see the market sell-off new during a bit of a slow week heading into a three-day weekend probably somewhat predictable but i think you have to be buyer of this marketplace because it's still not breaking down. this is fraction of what we've seen the bulls put in the crash register, so to speak. >> do you agree with that? the market was already a little bit nervous what's happening in emerging markets and pulling back from triple highs yesterday. >> no matter what metric you look at, whether hotel occupancy, flight bookings, at consumer confidence, at unemployment, they're all screaming great economy. and there's no sense that that's going to slow down anytime soon, so this is more likely a very short-term hiccup. and let's fates it, a 0.5% sell-off is not exactly dramatic so to us, yes, it's absolutely
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an opportunity to buy. i do think that you're going to continue to see performance diversion in different sectors, and so you don't want to necessarily just by the s&p be a bit more discriminate there, but, yes, this is nothing. >> would you go sigh far to buy industrials, which is the first hit with these >> so we own them, we're not going to sell them, but if we're deploying new cash, are there other areas that we prefer, we like much more financials are attractive here. >> shannon, what's your top sector pick for the rest of the year >> i think we're still very positive on technology i think we're trying to be thoughtful about where we're taking our positions in technology we're very optimistic on health care i think that following the elections we've -- certain, you know, firms and investors have shied away from health care. there's still a very strong demographic tail wind for health care, and so we're excited there.
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i think, financials, we'd love to be more excited about financials what we're doing is sort of thinking about ways we can position our financial exposure so we're less exposed to the yield curve. and on that we're becoming a bit more bullish on our financial positions. >> rick, what's your level of cont contagion risk out there for emerging markets >> you know, i think it's always going to be something to pay attention to especially considering we've just kind of gone through one in early to midaugust. it seems to have subsided with respect to huge volatility in the markets. but we all know underneath the surface many of these issues aren't resolved through political, geopolitical balance sheets, turkey, but they're still there. i think in that regard we've pretty much repriced some of the credit and liability issues there. it doesn't mean there's not going to be anymore shocks moving forward
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but if the long-term view or i should say, actually, the next three to five-week view of the dollar index is any indication, it certainly looks as though that market is going to act a lot more like it did in june and july, than it did in august with respect to its current level up just shy of 3% on the year insofar as china, these headlines are always going to be magnified in front of a three day holiday weekend to be sure, but i do think if canada really does get a little closer into the done camp, it does get dynamic how some of those headlines affect the marketplace moving forward >> can the equity market shrug off the dollar if it does rally? >> i don't know -- i think it's really a testament to where this market is going that the dollar isn't screaming higher with everything that we've seen so what i'm looking at now is does this give chairman powell a bit of cover because everyone was worried
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about president trump's comments sort of leading chairman powell, and he's not going to be influenced by the president. but now when you start to see emerging markets and start to see the dollar effect, the rates, does chairman powell get a bit of cover now to say, okay, let me skip one cycle here because we're already at neutral? >> they're still pricing in september. >> still pricing it in, but i think that once you hear the chairman get a little bit more of a softer, more dovish tone, the market responds with rallying we popped above that 2,900 level. it's almost like you're trying to keep a ball undermeth the water with this marketplace. because the market wants to scream higher. we're heading into year end. when we talked about weakness in the housing market, these are numbers, lumber numbers, interest rates numbers these housing data marks attributing to
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i think you're looking backwards versus looking forwards. there's a lot of people playing catch-up this makes me more convinced that the united states has to have the best market verse taking a stab at turkey or other places right now >> what's the biggest risk >> well, i think the biggest risk is there's an international wall up that you can't predict there's the mid-term elections that are coming up pretty quickly. that's a couple months away. you've got the tariff issue. what if mexico and canada fall apart at the last minute, those type of things those are research wale impossible to protect against or inexpensive to protect against >> is everyone bullish on this panel, yes but is there a level of euphoria that has companiaccompanied recd highs that makes you as an investor nervous >> the cash levels that are sitting on the side lines while
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meaningful haven't materially gone up at all as a matter of fact, they've been coming down craw, i think there's almost a fear of missing out from investors and that's pushing them in. >> you buy break outs, you don't sell break outs. this is break out. i don't think you want to be caught getting short going into the tail end of the year with the bullishness. >> and the fourth quarter tends to be the best quarter for bullishness. >> guys, thank you oliver, steve, rick and shannon. a four-person closing bell exchange what a treat broader markets may be losing steam today but amazon hit a new all-time high. meg terrell tracking it at market site today. >> amazon getting back some of those gains after the trade headline but it is gathering around the 2,000 share mark, and
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potentially a trillion dollars in market value. making it if it gets there, it would be the second company to do so after apple which reached a trillion dollars about a month ago. just what more value does it need to get to reach that $1 trillion mark? $2,050.20 cents. and morgan stanley increased its price target yesterday breaking down its business saying it could get up to 125 billion a share and then values the company, and amazon advertising at 12 $125 billion, so total
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$1.2 trillion valuation. >> i was just checking jeff bazos market value, 150. >> meg, thank you very much. up next an economic crisis in argentina setting that country's currency into a tailspin we'll discuss whether there's a risk of contagion to other emerging markets and maybe to the u.s. he and we want to hear from you. "t closing bell" is back after this short break don't go anywhere.
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welcome back to "the closing bell." year to date the mscietf is lower tracking >> the peso falling once again after the country's central banks raised interest rates from 45% to 60% and today asked the imf for an early release for a
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$50 billion loan let's bring in rebecca patterson to discuss rebecca, good to have you on this story what do we need to know, what do u.s. equity investors need to know about argentina right now. >> well, i think there isn't a lot of argentina exposure right now. i think the bigger issue here is just emerging markets more broadly. you have a lot of emerging market debt held by western banks. u.s. investors probably have exposure to those western banks and other entities, so it's a second derivative. it's second hand exposure so to speak that could hurt the u.s. i guess the other place it it could hurt the u.s. is trade business cyprus, greece, iceland can have implications just because of it trade links.
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so that's how i view argentina i worry very much about turkey these days >> go on more about that why is turkey more of a concern for the u.s. than argentina is >> again, it's going to beal secondhand smoking here. it's going to be going through europe the problem isn't so much the economy or the size holdings of bank debts, but i think the issue people are underestimating here is geopolitical the europeans have given turkey a pledge of $6 billion euros to prevent migrants from coming through north africa in the middle east to europe. turkey is holding them back. if turkey is in dire enough straights and need financial aid they could basically tell europe you give us the money or we'll let migrants through if europe says no, turkey may go, try to have talks with russia, or iran or other
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countries to get the aid, which obviously europe doesn't want to see that other geopolitical country building in that direction. both of those could impact u.s. companies and u.s. equities via u.s. sentiment >> since we're talking about hot spots, another group investors are worried about are countries that are also being targeted as a result brazil, and these are bigger economies and much more important -- brazil, russia, south africa those seem to be the next in line in terms of the firing line right now. how concerned are you about that, and if those currencies get weaker does that have the potential to have a big spill over effect? >> sure, i think there's risk this could spread. and brazil is particularly important because they have an election coming up in october. there's a lot of uncertainty around that. the currency is weakening. it could force the central banks to raise rates south africa as well in the
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cross hairs, russia, indonesia and wilf, you mentioned at the top of this piece, the emrngierg market etf that's a problem today it's harder for a lot of investors to distinguish the bet squr the worse emerging market countries. all of them go up and down together as flows go into these emerging market etfs so active management important here, and that etf outflow could effect a lot of those countries even if they don't have the same financial or political vulnerabilities. >> a lot to watch there. about 30 minutes to go before the closing bell so we did see, the market was already lower for the day, took a leg lower on that bloomberg report that new tariffs are coming
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>> more than a little leg lower. took us to the lows of the session. up next a new cover story in the economist that says silicon valley could be its own worst enemy and that's driving startups away. select securities 24 hours a day, five days a week. that's amazing. it's a pretty big deal. so i can trade all night long? ♪ ♪ all night long... is that lionel richie? let's reopen the market. mr. richie, would you ring the 24/5 bell? sure can, jim. ♪ trade 24/5, with td ameritrade. ♪
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you can't argue with more. why would ya? geico. expect great savings and a whole lot more. welcome back to "the closing bell." 30 minutes left of trade let's check in on some the individual stocks to watch electronic arts ea falling after delaying the arrival of battlefield 5 by four weeks.
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executives say final adjustments need to be made to the game and will now be released november 20th as a result the stock is down 9% largely because of course the delay still means it's going to make the holiday shopping period, but it was already a highly anticipated game with the delay questions about whether it's going to be as good as people had hoped >> also leaving the door open for a potential sale of the company. this morning becky quick did ask warren buffett if berkshire hath away with its ownership of kraft hines would be interested in buying here was his response. >> berkshire wouldn't be that's partly because we own kraft hines, too, we wouldn't be i think it's very hard to offer a significant premium to the
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package company and still make sense. the package company makes tangible -- >> it was widely anticipated they would be announcing their strategic review today stock down 2%. was down a little bit more than that some encouragement from the interim ceo keith mclaughlin on the 90 minute call saying we remain open to everything, this is starting point. maybe giving hope out there to activist starters who have been pushing for the sale what's left of this company now is the struggling soup business and the snack business, which is sort of a gem, the growth business but has a complicated distribution system, and a company that's had trouble incorporating acquisitions >> you say some hope for activists, but carving out some
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of the attractive assets makes sales less likely. >> it is the time where if lowe wants to nomidate directors for the board unclear whether that will happen. bigger uncertainty is will there be a suitor for a declining brand like this. and then the question would be who is and can they turn around the struggling soup business in particular >> struggling, but it is good soup >> you're a campbells -- that's so unmillennial of you >> no, just a throwback to the president's comments on campbells soup >> time now for a cnbc news update with sue herrera. here's what's happening at this hour, more than 30,000 people gathered for john mccain's memorial service in phoenix, arizona this afternoon. and shortly mccain's body will be flown via military transport to washington, d.c. where he
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will lie in state at the u.s. capitol before a celebration of life service at the nation's national cathedral on saturday some california democrats are calling for a boycott of in and out burger after it was revealed that the chain had donated $25,000 to the california republican party. that's according to a public filing on the california secretary of state's website a company spokesperson, though, telling cnbc that in and out has made equal contributions to both democrats and republicans this year some new video coming in from a partial building collapse at a water reclamation plant on the south side of chicago. first responders have been on the scene all day there searching through the rubble right now at least eight people are reported injured and it seems like we just got 4k tvs but now there is 8k no prices released yet, but some
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8k tvs cost more than $10,000. that's the news update this hour, guys back down town to you. >> do we need four times the pixels of 4k tv? >> we need a tv as well, do we >> i guess so. still ahead on "the closing bell" we'll bring you up to speed for the u.s.-canada trade negotiations as the deadline approaches those talks go on today. one retail investor says there's plenty of upside in names thatav he turn around plans in place what she's watching ahead. to buy or sell? when e with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today.
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is helping hunt them down at their source. because the faster we can identify new viruses, the faster we can get to stopping them. the most personal technology, is technology with the power to change your life. life. to the fullest. quwelcome back have we reached peak silicon valley explaining how it's driving new startups away and putting its privacy as a technology hub at risk joining us now is the author of that article thank you for joining us i guess the first question is this because things have gotten too expensive or because the tone or worth ethic has turned
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sour what's the reason people are no longer as enamored as they were before >> i would call it three reasons we're calling it peak valley what we're saying is that the valley is still going to be incredibly important, just that its relative noouns influence ih wane versus other tech hubs. facebook, google, apple are able to pay so much for employees that makes it incredibly hard for startups to compete. it was never possible before to get rich just by working at one of the incumbents in a middle management position. the only way you used to get rich in the valley was by choosing the right startup and riding the right rocket ship all the way. now we're starting to see this class of middle management employees making a great living.
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now it changes the incentiveoffs peop people want to take risks at work at startups new york, by comparison is less expensive. and that's had huge impacts for startups that are trying to operate here it's just so expensive and the third thing that will affect all of america not just sa silicon valley is immigration policy >> isn't it also, though, a factor of where the venture capital firms are based? and if they're not there where else are there, and where else are they looking for startups? >> so the sand hill road veterans used to be able to just count on all taloned entrepreneurs coming to them and they'd be able to write check. we're seeing two things happening.
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one is that they're shifting their focus out of the bay area to find value deals, and so los angeles looks more affordable. portland, denver, they're stocking investment opportunities where some of their competitors might not be and their valuations might be lower. we're also seeing them put money elsewhere as well. i think that increasingly it's going to matter less to build your whole company here. companies will have a presence here, but they're not going to be able to afford to scale their startup in the bay area. they're going to look elsewhere really early on in their development, secondary, at the very least engineering center but probably the hub for the mare maine company >> what about the big guy, the googles, apples, facebooks clearly amazon is about to announce where its second head earnings are going are those guys looking to head
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out as well or are they still committed to the area? >> they compete with each other for talent, and it's really expensive even for them to be writing these checks we see ph.d.s and ai getting $5 to $10 million a year. this is like a professional football player. there's just a limited supply of talent in the bay area and they're increasingly hiring elsewhere. i think the question for cities is do they want to replicate the success the bay area has already seen the bay area has this incredible tech hub and a lot of cities who are vying for amazon's second headquarters think they want that, but there's huge costs when it comes to housing, a lot of cities are offering tax breaks to amazon there's huge social and societal dislocations that come from a tech book. i think cities want to
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understand the upside but also the down side that comes from success and technology >> you didn't really hit the political question in this piece, but it's so in the news right now. and i wanted to ask you on this theme of a victim of success, which is one of your big points here, the fact there is backlash from both sides of the aisle against these big technology firms how powerful they are and censorship, you name it, facebook, google, amazon, i wonder if there's a stigma how this is playing out in the rest of the silicon valley and if there's an effort or impulse to move away from those companies for that reason? >> it's a great question and it's a really good question. so i think that this tech lash that we're seeing in washington is damaging for the whole tech sector, not just the big companies. and so i think it would give someone pause who's working in the bay area potentially about
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these, especially if you're working for the platform companies like google and facebook or twitter, but even the others that are going to be undergoing more scrutiny i think the key question i have is whether the value ultimately becomes the new wall street. so silicon valley becomes wall street and that is the place people want to go, and the center of global capitalism today. will it be the industry that sees the next backlash in public and private against the tech elite this time? we haven't seen it in silicon valley yet, but it may well be coming >> thank you, great piece. >> i don't know if people should look past all of wall street being a bio tech analyst as we learned yesterday is also the place to be. >> what, 3 or $4 million signet jewellers, up next
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we'll take a deeper look into this stock and whether it will continue to shine for investors. we'll be right back.
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welcome back to "the closing bell." take a look at shares of signet
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jewellers up 25% on the heels of an earnings and revenue beat this morning, raising guide nsz as well, increasing in the quarter due to newness in its product assortment it's a turn around story that got a new ceo in there, three-part strategy. improve the merchandise, use data to figure out what the consumers want in their jewelry, they have zales, jared, a lot of the big brands there ecommerce, which you saw the results growing double digits and changing the culture, which was big for this company investors weren't onboard and now they are which is why the share price is moving. solitaire engagement rings are back >> what does that mean, the shape? >> a single stone. what does that mean? like a man who's never proposed.
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>> good. otherwise the answer would have been no if i had >> just talk to me on the trend first. >> we've got someone who's saying this could be a buying opportunity. that's coming up next. do you want $4.95 commissions for stocks, $0.50 options contracts? $1.50 futures contracts? what about a dedicated service team of trading specialists? did you say yes? good, then it's time for power e*trade. the platform, price and service that gives you the edge you need. looks like we have a couple seconds left. let's do some card twirling twirling cards e*trade. the original place to invest online.
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welcome back dollar store stocks, dollar tree and dollar general getting whacked today before reportings for after the bell avery, thank you for joining us. you've been involved with them in the past in terms of shorting them is this an overreaction in particular in the latter >> just to be clear and actually worked on the dollar general ipo back in 2009 it's always been very positively inclined towards that stock. i think what we've really seen is the difference in execution dollar general has been a consistent executer for many years. and the story of the dollar tree and family dollar merger was that family dollar was going to become dollar general, and that's just proven to be more
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difficult than anticipated and that's really come through in this quarter's results with reaction to both i would say dollar general probably should be fine from here i don't know if you sigh a lot of multiple expansion, but it should continue to benefit for the economy. and the dollar tree, it's really if you can start to see those dollar stores start to improve, it's nowhere as cheap as other retailers that have a lot of opportunity for significant operational improvement but one to watch for sure. >> we're just digesting all these retail reports most of them wereerary strong, but there's a few notable losers >> what's interesting about gap is gap is really old navy, right, it's just called gap. and because the name and the history of gap -- there's some people who have argued they should really separate out the businesses old navy is, you know, one of
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the best performing largest retailers in the country that is still significantly underpricing their merchandise. you can go in there outfit your child for like $3 and $8 for the cutest outfits you can find, a lot of opportunity for pricing power. what they're doing is taking the talent from old navy and bringing it into gap they have a new ceo of the gap brand, and they're really taking serious seriously a turn around for the first time there's still strong potential in old navy and certainly the turn around of banana republic is under way >> you could also outfit yourself in gap for a good price. >> incredible prices >> they do have some baby pajamas that are super cute. >> another store you mentioned to watch here is bed, bath and beyond >> they have incredible potential for earnings greek, if they execute properly.
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so babies-r-us and toys-r-us which has john gone out of business, target has said that it's one where they expect to drive their business if bye-bye babies is able to execute well, it should have an enormous upside for bed bath as well >> but they haven't been able to do that. >> and they haven't been able to do that, and it's a matter of execution. also what's interesting with bed bath is they're still using their 20% coupons online and in store. that was a promotional strategy to drive people to the stores. i think they should be price matching online and driving people to stores with their coupons so they can filltheir baskets. as we've seen with dollar general and family dollar if you don't execute you're not going to realize the margins but it's not true amazon and y
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wayfare are going to kill the home furnishing space. >> avery, thank you for vantage way capital. >> they even take expired coupons, bed bath & beyond >> and they have the most amazing guarantees you can take something back forever. >> returns up next we've got four minutes left of trade. >> and then after the bell pengfrupris om lululemon, ulta u beauty and american outdoor brands
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welcome back to "the closing bell." we've got about a minute left. let's talk about the intraday chart, the dow, big relative to the declines of the day which only about 0.5% for the dow. the dow is the laggard, but we are all four in the red as we do approach the close if you look at the sectors you'll see tech does remain the best performer i'm going to bring in bob pisani we'll bring up some emerging market currencies as well and talk about that story as well, which has been that and the tariffs. >> my old friend called me and said we've now reached the point where it's a two stock market amazon and apple the only big stocks up today and elsewhere it was a real mess in
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all the emerging market etfs all the emerging markets, tough day here whenever you get that big movement in the dollar you see those emerging markets down 2% or 3%. >> ringing the bell. we're down 135 points on the dow. the low of the session was about 160. so off the low about 0.5% decline for the dow that does it for the first hour. sara, back to you. welcome back to "the closing bell." i'm sara eisen here for kelly evans. noisy stock exchange wilfred frost rejoining us in just a moment. let's take a look how we finished up the day on wall street it was a dow day, just marginal declines when you think of where we've been dow closing lower by about 0.5%. s&p 500 pulling back 0.4%.
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nasdaq composite down 0.25%. and russell 2000 down less than 0.14%. and did get that news today president trump was looking at imposing those new tariffs on $200 billion worth of imports on the chinese market next week some big name reporting earnings after hours today. results from lululemon, ulta beauty, american outdoor brands which is formerly smith and wesson, we'll bring you those results as soon as they are out. joining us is mike santoli, victoria fe victoria and leading the dow today was apple. another vote of confidence from warren buffett, dollar tree was
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the biggest lures. mike, the context matters but you did have a number of factors starting overseas to rattle investors here today >> yeah, i think that's why we started out in the defensive you had the dollar get firmed up you had some sloppiness in the emerging markets and currencies. and this stuff all comes around i think when it was time to pay attention. the pull back was, you know, pretty mild. i don't think it really changes much of the story. we'll have to see if it develops into anything else i think the muscle memory right now of not panicking when you get a new tariff headline is in place. >> the question whether we get a big move is always one of contagion, but are we also getting a sign if the emerging market has borrowed enough dollars, could we see all sorts
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of emerging markets join the party where therefore it doesn't matter about contagion but the global effect of growth? >> that's why i think there's the fixation of the dollar itself that's sort of cause and effect of all this. you're going to see the sort of capital flight is going to manifest that way. it's much more about how it up ends the general risk taking profile of the capital markets we went through this with turkey not that long ago for a little while, still going on of course over there and it's a wait and see right now. but we have buffers in this country. it's just a question how strong they are >> and victoria, it gets to this theme and the question we've been asking, good strong growth in the united states, flowing global economic growth and when you see melt downs in currencies continue like we saw today, is that a concern for u.s. growth? >> i don't think it's a concern for u.s. growth. when you look at turkey, when you look at argentina, a lot of
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that is really specific to those countries. really they're only second to chile in the amount of dollar denominated debt they have it's about 20% of their gdp. so there's issues that go on specifically with them, their current account imbalances however, it does ada bit of risk to the market. the market doesn't like any kind of uncertainty so if if we start to see that expand then i think you'll see the markets get a little bit nervous, but i don't think we'll have a large reaction to it. >> it's true in the last three weeks the correlation between the markets and the dollar has been strong. a negative correlation will this continue for the rest of the year, as long as it's turkey and argentina driving the dollar hilar, can it be shrugged off? >> the dollar index is in a range. it's not as if it's making new highs. it really was not going that far back in time in terms of levels.
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it's been a trading cue in absence of a lot of other things it's just the general capital flow >> and it's also not a good historic indicator when the dollar goes down, stock goes up. the dollar is going up for the right reason, which is better economic u.s. growth -- >> we've suffered many times, and that's why i say it's a trading cue right now. it seems like we're in a phase where it matters more than usual. >> kevin, what's your view on this sort of emerge market turmoil that we're seeing at the moment does this make you want to pull from u.s. market equities or not? >> i spent most of the day today going back looking at valuations of asian companies, which are starting to get really interesting. their equities have declined in many cases over 20%. and then when you take currency into account, you've almost got a 33% decline. and yet these are companies in
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some cases that are growing in high double digits it looks attractive to me to start taking some off the table. my asian exposure is nil oats practically only 4% but now when i look at it i'm saying to myself why not take 15% off the table domestically, i'm like everybody else made 10% in the s&p, and i'm going to use these indexes, there's so many available. but the asian indices looks really attractive. the multiples are practically 20% cheaper across the sectors you look at. over the next few weeks i'm going to raise my asian position up to about 8% >> if you're buying the msci asia, you're largely buying the china index. so you could contend that the
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worst of the shanghai market decline is behind it there's a lot of pressure on china, whether it's trade or debt levels or currency weakness >> you know, i don't use a broad indices like that. i use something a bit more fine tuned, for example, which is very specific, includes asian engineering companies, australian companies that service asia, that kind of thing. but you're right, i'm not going to catch the bottom, but i don't have any exposure. in addition to that i'm overweighted north america now because of the success we've had. look at the usd, at the height of it range, and secondly the other currencies, india, for example, has been crushed. and at some point and i realize you can't -- really the range at is at the bottom, everybody says that but at some point averaging into it at the back of the year look
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attractive i always scream there value asian. it's getting interesting >> one big risk too is trade warren buffett says he's seen the effects of the trade war play out >> we are seeing some affects from that, and we're seeing some affects from inflation we've seen more in the way of cost increases in the last year if you go across all of our businesses but particularly building materials or -- we saw paint, i mean the can it comes in, that's a lot more expensive than it was a year ago >> and there could be more trade tensions ahead if the u.s. and canada can't come to any agreement on nafta's replacement ahead of that deadline tomorrow. aemon joins us now with the latest from washington >> we are down to the final
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hours here all sides have said they are optimistic they can get a deal they say they won't negotiate this deal in public, but take a live look at the u.s. trade office here in washington, d.c. you can see reporters are staking out that building, and they've been there for a couple of days now in some really intense washington, d.c. summer heat so we're expecting developments at any time, really. the top negotiator on behalf of canada has been coming out and updating reporters there from time to time to give a sense of where things are going and her latest missive she sort of gave us a sense of what the stakes are here for anybody concerned. here's what she said >> the nafta negotiation is as i think you all know, an extremely important negotiation for canada, and we are focusing on getting a good deal for canada, and win-win outcome for the long-term. we have our eyes resolutely on
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that prize >> eyes resolutely on the prize, she says i can tell you that a lot of lobbyists around here in washington also had their eye on the prize trying to figure out what's going to be in this deal. there's been a lot of rumors swirling around d.c. around trade folks and trade association folks in terms of what's in there, what's out of there, what's on the negotiating table. i think you can only judge this one from the outside, and all we have to go on is positive noises from anyone involved no indication of hiccups, but we are getting into final hours here >> mike, in terms of what we've seen this week clearly china has had a negative reaction out today, canada would top that out in a positive way. >> it would. i think there would have been a bit of suspense, just a slight apprehension about friday's soft deadline nafta was never initially supposed to be the hard one, so you kind of made it harder with
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some of the rhetoric and then a break through comes when it turns out you can get a gun. so i do think it's still going to be the china story into next week >> let's move isn't it true some earnings stories ulta and lulu out with their numbers. >> let's start with ulta here, earnings of 246, revenue coming in line of 1.49 billion. comps up 6.5%. sounds good. analysts were expecting more, though, so that one is going to be a miss. ecommerce of 38% and ulta is giving some weak guidance compared to analyst estimates. you can see here shares are down sharply for ulta, down more than 6% let's flip to lululemon. annen believable earnings beat here reporting 71 cents. analysts had been looking for 49 cents on much stronger than expected revenue 724 million.
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the comps up 20% for lululemon. wall street analysts had been looking for comps to increase about 9.6% the store comps were up 10%, and then the online sales were up 8% as components of that total comp look here at the guidance both the third quarter and full year, results are above analyst's expectation, and that's a little rare for lululemon which also tends to guide a bit conservative shares popping higher for what we've seen for ulta and higher than 7% for lululemon. >> you've gone through like 700 retail reports this season have you seen companies put up comps of 20% with ecommerce? >> i was going to say 20% is really huge. we saw some really big numbers out of big players but 20% is pretty unheard of lululemon certainly isn't anywhere as big as a target or wal-mart, but it's not that
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small either sara, you know there's a new ceo basically just starting this week at lululemon. this was a quarter largely put together by a group of leadership as opposed to any one person we're going to get more of that information on the call, but right now just some real strong numbers from lululemon >> sara you're always behind the a athleisure but mike is always behind the jeans >> what it proves is lululemon even in athleisure is higher than it's been for a long time the bull case and the premium to the stock has always been that they've trained their consumers to pay full price, look for the next new thing, and also there's not that many stores it's almost like a sweet spot of 400 stores, not tremendous penetration in the states. therefore online is not cannibalizing. a lot of things work together.
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>> they don't do a lot of sales, don't do a lot of discounts. the bar was set higher and they blew it out of the mark. >> top line momentum when that is the story stocks are not going to give up that much and kind of earn their way higher because retail is such a streaky business and retail has been such a roll. >> kevin, your take on lulu? >> i think luluhit hit it out f the park online. you've got to get the mix right on the products. but what i've always wondered about with that particular stock, because i've never owned the stock. it's been so volatile. once you have a customer, you've acquired that customer, you've got them through retail, can you convince them to go and buy it online without trying it on? i've got lots of family members that use this brand. it's all about how it looks. i was wrong, clearly they've
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done it particularly in this quarter. and i might add logistics is pretty good on returns there if you don't like what you've got, it's very easy to ship it back and get the right size. they've done something, you know, that's the earmark of every retailer to survive. >> director to consumer revel new up 48% gross margins they're 54.8%. they were 52% a year ago so some stellar results there from lulu. tough time to come in as a new ceo with a bar that high american outdoor brands which is the company formerly known as smith and wesson, earnings are out eric >> if you look at the stock, the stock is up over 15% after hours. that's from a big earnings beat. the company reporting 21 cents adjusted earnings. that's lot better than 12 cents that analysts were expecting revenues also beat 139 million
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verse 134 million analysts were expecting. they also raised their guidance for the second quarter and the ceo out with a comment saying our increased profitability was driven by our consumer preference for new products promotions last year and solid progress our our growth initiatives down about 65% in the last two years, so there's a long way to go to get back to those levels back to you. >> eric, thanks very much for that mike, as i said this is big bounce today from the low levels >> really down to about a half billion dollar market. >> hold on, mike we're going to listen to christina freeland which is summing up the trade talks between canada and the u.s. >> i would really like to thank the premieres for their very producti productive contribution to these
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negotiations, the fact we've been able to have through a real team canada approach has been really, really important for your country as i said i'm going in now to continue our negotiations with ambassador lighthizer. and when we're done, i'll come up and tell you what happened. >> christya, excuse me, christya freeland >> no solid update there in terms of where it's gone but the tone is positive i guess that's hopeful >> a deal to continue, yes clearly there's no effort to send a message of any leverage or threats or anything like that it's basically we're still talking. >> victoria, let's get a final
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word on these markets today and what do you think the take away is, some of these dollar stores declining a lot today, but how strong is the u.s. consumer? >> sure, i think the consumer is extremely strong we saw consumer confidence add 17-year highs. we actually saw small business at like a 35-year high on their confidence numbers so the consumer can really lead a lot going here when you look at these retail numbers, yes, we've had a few that haven't done as well, but most of that is because of the guidance not because of same store sales or profit margins. lululemon is a perfect example a athleta, that kind of led to it, but retail is strong and consumer is strong and i think we'll continue to see that for
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the next couple of quarters. >> okay, guys, we'll leave it there. shares -- let's check in -- of lululemon are higher. they were already super strong, up 70% for the year and are still surging after hours. oh, looks like they've turned lower hereafter hours. oh, no, that was today's trade >> that was today's trade. after hours is still higher. we'll be discussing with an analyst, their take on the numbers in a moment. amazon is closing in on a trillion dollar market cap, but we've got an analyst saying the stock is going to $2 trillion. we want to hear from you "closing bell" back in a couple.
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lululemon just out with earnings big beat across the board. the share price reaction up 7% after hours. joining us now is brian. how's an outperforming rating of 20% comps including online, where do they get that what are they doing right? >> i've spent the last 40
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minutes digging through the lululemon release, and i can't find a flaw here i think it's a lot of the innovation happening at lululemon. the company is now having a new commitment to digital, and we also have to take into account the consumer across the board we've seen some really good retail reports this seizemanch and i think lululemon sort of saving the sweet spot there given that upper end consumer >> i was saying it's sort of a tough position for the new ceo to come in just as these results are killing it across the board. how much do you think of this previous management who does r did turn around the business, made it a very profitable business again how much of it has been the interim management team and what's going to be the ceos biggest challenge? >> look, if i'm calvin i think i've made a lot of
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momentum-jumping in on this brand. this interim management team, you have to give them a lot of credit they've really been the team that's repositioned the brand and allowed it to capitalize now on this consumer environment i think lululemon's very well-positioned here going forward as the management team tones to evolve. >> what are the main levers longer term they're going to be looking to pull right here as i was saying before they've always talked about how they sort of train their customers to look for the new thing to pay full price what about where are they going to put their new stores? i can recall people saying a few years ago if the store density was what it was in canada, that might be the way to go >> but the retail narrative has changed. one of the guests was making a
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good point was saying one of the advantages lululemon has now is there's still a relative small number of stores these chains are still relatively small are better positioned to make that move so it's a relatively small chain now driving more business online and i think that's big for lululemon going forward. >> i believe that guest was mr. mike santolihimself. >> brian, your price target for today was 140. we're now above at level are you going to be telling your clients to take some money off the table now or upping it following those results? >> we watch all of our stocks very closely you're right our firm had $140 price target before this, we'll review it and decide what to do from here. clearly this is very positive report from lululemon. >> okay, brian thanks for joining us. amazon broke one record today crossing that $2,000 a
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share level and is poised to set another. up next we'll look at its record ride we'll talk about the amazon effect on american business. >> also family first, those are the new watch words for microsoft and companies that want to conduct business with the tech giant details on that and the take away coming up g, a little bit of water, it really- it rocked our world. i had no idea the amount of damage that water could do. we called usaa. and they greeted me as they always do. sergeant baker, how are you? they were on it. it was unbelievable. having insurance is something everyone needs, but having usaa- now that's a privilege. we're the baker's and we're usaa members for life. usaa. get your insurance quote today.
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breaking news, headlines from washington. eamon javers as the details. >> bloomberg news is releasing excerpts right now the president has made a number of interesting comments saying he's think of including withdrawing from the trade organization if that organization doesn't shape up. the president saying he's thinking of linking capital gain proposals to inflation that's an idea the president is floating here. the president also saying he doesn't regret appointing jerome powell as the fed chairman that despite of some president's criticisms of the fed as moving too fast to hike interest rates, the president also saying that attorney general sessions is safe in his job until at least november's elections so that does not give the attorney general a whole lot of lease on career life here in washington, d.c. but the
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president says he is safe in his job for now. bloomberg quoting the president in terms of that world trade organization threat, saying if they don't shape up i would withdraw from the wto. and the president saying thursday in this interview here with bloomberg news at the white house that happened just a short time ago, guys back over to you >> a.g. sessions safe until november what's the pressure on that? >> my reaction is that the attorney general ought to start working on his résume, right? if the president says you're safe in your job until a certain date, that implies you're not safe after that certain date the number one thing he's frustrated about with jeff sessions is that sessions recused himself from the russia investigation. the president has said he wants an attorney general who's loyal to him, who's able to work on the russia investigation and said he would having picked somebody else if he'd known jeff
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sessions was going to recuse himself. this has been a long festering relationship that's never been very good, but now i feel the president is feeling emboldened to take steps to remove sessions from office. that message will be received loud and clear over the department of justice. >> all right, eamon thank you. i guess he's threatened to pull out of the wto in the past and has looked at this >> he has. don't think that's an imminent, you know, move of any sort but just, again, the aggressive posture on trade relations i think is an instinctive response by the president secretary mnuchin has kind of pushed for this idea, it's interesting because it sort of gets rekindled once in a while
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it's a complete nonstarter for the most part, this whole idea all gains attributable to inflation to go untaxed overtime, big revenue give up and doesn't necessarily change the equation or incentives to invest let's move on and talk about amazon shares hitting an all-time high today with the stock close to becoming the second u.s. company to hit a $1 trillion market cap. >> should investors sell the stock after it crosses that mark or add more? you buy more when it hits that threshold or not >> you know, we're already share holders with amazon and we've been shareholders for many years. when we look at three to five years we're long-term shareholders we think the company has the potential to double again in that type of time frame.
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we're just saying as long time shareholders there's still a lot more up side >> i'm sure one of the kickers you think can drive it to $2 trillion is they're going to be doing more advertising something they're not doing yet, but could be a good revenue driver >> it's an $8 billion revenue runway business with these guys with 70 pierce to 80% inkre incremental margins. then you look at the cloud business, that's another business, a $25 billion runway business with 25% margins. when you look at the profitability of amazon compare it to five years ago, it's very different. >> mike, you could just look at apple hitting a trillion dollars, seeing on the front pages with all the news, hasn't proven to anyway sort of
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self-signaling yet >> i don't think it's ringing a bell, necessarily. apple it kind of represents almost the here and now profitability of the company it's right there on paper how much cash the company has, buy back stocks every single day and of course the enormous earnings they've put up. actually just quickly, i mean if i'm listening to you about amazon's influence on advertising, i mean that's a big net loss to everybody else, right? is google in trouble in that instance or is the pie big enough >> we don't think so that's one area where retail where they'll definitely compete more as we look at where amazon is getting its dollars from, you think about the old dollars that were spent in the front of the aisle on the grocery stores, that's where the dollars are coming from, and that could be an 100, $200 billion market. >> what are the risks for
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amazon >> well, i think the biggest risk is, you know, they are the target, right, for everybody that is going online and trying to move some of the business online, they are measuring themselves against amazon. so they are going to try to at least slow down if not stop, you know, the erosion of dollars to amazon so how do you do that? well, you become a better merchandiser essentially target -- i'm sorry -- amazon really is a convenience store. they're not a place i like to dilly-dally and shop i go there, i'm in and i'm out and i think to really become a compelling long-term retailer you have to know how to merchandise, and that's a big question mark. but i think an even bigger question mark is their really valuable property called amazon web-services again, companies are out there
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that have viable products that can really go after that business like microsoft. and i think microsoft's large install base that uses their tools and all of their services, oats kind of a no-brainer to move your cloud, if you're already using microsoft products onto the microsoft cloud and i think that's a real competition for the company, they're going to have to step it up and spend a whole lot more on tools and sillary products you need >> what about the fact it is one of the most popular political punching bags right now from both republicans and democrats this is what happens when you get big and powerful, right? is there any real risk for investors right now, whether it's anti-trust regulation or just the headline noise? it does look like it's shaking confidence just yet. >> i think that's an excellent point. >> go for it >> i think it's an excellent
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point, and i think it's, you know, kind of telling that jeff bazos thinks that it's an issue, too, having moved closer and closer to d.c. and its physical presence, you know, the new big house, ownership of "the washington post," so clearly he sees that as a huge issue. >> does the other guy worry about that >> the other guy worries about a lot of things. i think where were eabout china these days and to the degree we do still import a lot of drugs and there's some epackets stuff amazon benefits from, but if you're willing to look out two or three years we think amazon is pretty interesting stock to own. let's take a look how we finished the day on wall street. the dow was near the lows of the session but just off them, s&p just shy of 0.5% decline
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nasdaq the outperformer of the big three indices, down 0.25%. >> time now for a cnbc news update here's what's happening at this hour, everyone. a memorial service in arizona today for senator john mccain. the arizona cardinals wide receiver fits gerald among those delivering you' delivering eulogies. brad pit's charitable foundation may soon be facing a lawsuit over homes it built in new orleans after hurricane katrina. a lawyer saying the homes have major problems with steps and roofs as well as with plumbing and electricity. the foundation built the homes and then sold them at a discounted rate. the cleveland browns, the se team saying he diz disclose his
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issues, but now the team saying we are now dealing with a different set of facts and the information we have gathered has led us to the decision to release michael. and check this out this is life-sized bugatti made entirely out of legose more than 1 million pieces in fact, and it has a motor it's moving. it can go up to 12 miles per hour the real bugatti has a top speed of 260 miles per hour. what do you want to bet, someone is going to spend a ton of money to have that as a collectible. >> even like the engine is out of lego? >> apparently so, yes. i don't know how that would work, but apparently that's the case yeah, i think robert frank should get it. it's perfect for him >> i'm a big fan of lego interestingly we don't pluralize lego >> you're probably right
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i think it's just lego >> sue, thank you very much. >> now they're too small and he can eat them >> yes >> i'll wait on that >> a 33-year-old can as well you've always got to be careful. shares of paypal up, and one analyst calling it the world's most popular alternative option. whether you should pay out for paypal stock next. and one city cracking down on the proliferation of e-scooters ahead we'll look at some of the moves the golden state is making that could impact more than a dozen companies. >> these guys are more talented than we were >> cue the video of wilfred and i. >> no helmets, though. very dangerous ♪
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initiating coverage of paypal giving the payment company's service a buy rating, raising its price target on the stock to $100 a share from $75 a share. >> joining us now to discuss is fast money trader guy edami.
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clearly some strong performance from these names, but we're seeing some of the fights fight back offering similar types of services, whether it's payments or free stock trades >> they can fight back all they want, but these guys, paypal, square, they have such a big mark you look at paypal's last quarter i think they had 28% transaction growth but let me ask guy what he thinks since it's only me today, i think i'm going to pop on the other side jeffrey's just upgraded the stock. i think there's upgrade in the stock. dan leighton to my left just pointed out that merchants are going to now accept bitcoin through the square software or square device, which is probably pretty huge for them despite valuation i think it's a
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good cut on both let me say this quickly, master card and visa now trading 28 times earnings in this environment i think those stocks should get a little expensive. which might sound counter intuitive. master card and visa might be getting a little longer on the tooth. back to you, wilf. >> interesting i'm going to take the other side of it. i think the big banks are so ready to fight back and offer unbelievably good technology on all these types of things, and it's going to eat into the pie of growth for some of these things >> you're the bank guy you and jamie dimond hang out, salt lake city or wherever you go sit by the pool you've got the scoop that's what makes markets. >> i've certainly sat by a pool with jamie that certainly would be an interesting interview. we look forward to fast money
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coming up at 5:00 p.m. on the show we've got a guest, andrew left, always some strong views from andrew don't want to miss that. >> now, there's a conclusion to the santa monica scooter showdown, which companies are allowed to operate in the city >> cue the video of wilfred and me -- turns out i was correct -- >> no, you were not. you said me and wilfred. the order was wrong. >> the order is not a rule s n fr.otai you agree with me -- >> we'll come back with why california is doing a crack down next
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time now for the take away if augmented reality has cooled off with potential investors that could change today after apple's purchase of a startup focused on making lens for augmented reality glasses. the move appears to be a signal that apple is looking at making a wearable device that would super impose digital information on the real world. i don't know even know what that means. >> remember google glass, i don't know if that was augmented reality. i do think, look apple has to spread its bets. obviously in software and hardware but it does seem to me at some point they want us not to be looking at this little thing in our hands. i think somewhere in the distinct future that's going to
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absurd we were all staring down at it. companies that contract with microsoft for services such as 12 weeks of paid time off to work with the tech titan re-upping the ante for clients enforcing some standard for those who work side by side by microsoft employees. it reminds me of facebook in the valley where there are many contractors who work and drove the shuttles and i think it became a very kind of political issue with the big employee base of some of the tech company. >> the fact that they're trying to push good behavior and use it >> california attempting to shake up corporate boards. california is trying to pass a bill to require major companies base there to add female
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directors to corporate boards and they go to governor jerry brown, and they find the publicly-traded companies will have to add more women to the board and two or three women by 2025 failure to comply could have financial penalties. you don't want the government intervening necessarily in corporate government and companies are not moving fast enough to address this critical issue. >> i would be interested to see how many this would cover and there's plenty and the second provision of having more than one woman on the board if it's more than five members in a few years. and i think it would be the harder one to meet because a lot of times many public company boards have a single woman just to be sure they have one and i do think it would create the pressure to broaden out the selection. >> we have to study norway they have this rule in place 40% since 2003 >> e-scooter battle in santa
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welcome back santa monica is the latest city in the e-scooter battle and aditi roy is there >> that's right. it's been a dramatic day in the scooter world as two major cities announced their scooter programs and which companies will benefit officials announce that bird, lime, lyft will be operating the scooter program when it starts
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the pilot program next month and in san francisco, a big upset in the scooter world as the city announces that scoot and skip are in that realm and they'll be operating the scooter there. there is a lot at stake earlier in the month they staged a day without a scooter protest after a city committee initially only recommended uber and lyft as the top choices for the santa monica pilot program. with so much competition in the space it's a land grab for customers and often city regulators are the gate keepers for the customers and let's look at how the rest of the country stands d.c. and dallas have put regulations on scooters. santa monica will start this fall los angeles and miami still pending. it's likely that regulators might be affected by some of the public outcry over the devices with images on social media showing scooters scattered around streets after users leave them once they're finished and critics call them road hazards
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we did reach out to both bird and lime they say they're disappointed by it, but they're hoping that the city will change course in the future back to you guys >> we were just having this debate, aditi. do people really use them there for commuting to work or sort of a fun activity >> yeah. on the beach you see it's for fun, right but both here and even san francisco, we talked to a lot of people who use them pretty regularly because there are people that have the microcommute where it's too cumbersome to take an uber or lyft, but it's also kind of walk, the ten to 15-minute walk, say it's a mile and for them scooters fill that gap and that need >> more environmentally friendly, i think, as well >> aditi roy, thank you. >> you bet >> i still wouldn't commute, and i don't think -- i don't think they can take off in new york, as well. the roads are far too dangerous. it's different from most spacious roads with better climate. anyway let's get back to the main market of the day and mike,
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toward the end of the session, negative news on china, if we have good news from canada overnight, does that offset it perhaps. i think we'll have a friday before a three-day weekend, but i don't think the headlines have seen it in the last couple of months >> that does it for the closing bell tonight for mike, sarah and i, thank you very much for joining us "fast money" begins now. "fast money" starts right now live from the nasdaq marketsite overlooking new york city's times square. i'm melissa lee. your traders are tim seymour and guy adami. the short seller with cronos calling it the dark side of the cannabis space and sending shares plunging 30%. so what exactly does he not like about the company? he's here to explain and apple is in a new high as the company releases invites gene munster will be here with a look at what to expect, but first, we start with the markets. major indices snapping a

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