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tv   Power Lunch  CNBC  November 26, 2018 1:00pm-3:00pm EST

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>> robert. >> get internet interested in the financials. >> nice having you back. >> and j.p. morgan is mine and berkshire. the best two looking in the market. >> genics and long versus last week's low. >> thank you very much for watching "power lunch" starts now i'm melissa lee. stocks rallying on the first full trading day off thanksgiving but is the bottom in should we start buying here. we'll debate and hitting the brakes general motors announcing a biggest restructure, cutting production and slashing model and jobs and what it is signaling for the auto sector. and the holiday shopping season getting off to a stellar start. today expected to be a record-breaking day for online sales. the retail names that are set to cash in. "power lunch" starts right now ♪ ♪
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♪ santa claus is coming to town ♪ >> and welcome to "power lunch." i'm tyler mathisen stocks are in the green but well off the session highs. the s&p 500 pushing out of correction territory at least for this day. the dow up triple-digits but it was 390 points up and oil on a terror, up after last week and the crypto collapse worse, bitcoin below 4,000 and future prices hitting an all-time low more on the crypto carnage coming up. as mentioned, the gm on stock for the best day in almost a month. financials rallying, the etfes that track the regions and big banks on tack for the best day in more than a month so let's get straight to the big news driving today's action. bob pisani is following the money. and dom chu tracking energy and
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phil lebeau all over the gm story and cant he issa brewer from the amazon fulfillment center in new jersey bob, you first at the nyse. >> thank you four to one advancing the declining stocks but more than 100 points off the highs and led by what else, technology stocks. semiconductor have had a good day and nvidia had high comments from swedity suisse but same situation with oil oil services have dropped about 30% in a month i've never seen them drop so much new lows att hallib urton and they were up a percentage more earlier in the day same with the rerts, not a common day when you get amazon up as well as the competitors like tiffany and others on the outside and they are beaten up together and why are they bouncing up 40% decline in oil services and retail and banks from the
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52-week highs, you're eventually going to get some kind of bounce unless you go into a recession and nobody thinks that's happening right now. elsewhere, consumer staples have held up very well. only 2%, 3% off the highs and not surprisingly you see they are down so why is this happening we've got hopes for a rally this week not just on the oversold conditions, but hopes that perhaps mr. powell might speak on wednesday and i think this is a pipe dream the head of the -- the head of the federal reserve will not front run his own people ahead of an important meeting next week so i think he'll toe the market line but people are hopeful. as for president trump's meeting with mr. xi in china -- or in argentina, people very hopeful but simply announce a cease-fire and no additional tariffs and everybody declare that a victory and eventually go home a lot of hopes this week. >> thanks, bob. as bob mentioned, energy stocks rebounding today. the sector up by 1.5% because of
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in part price of oil has rebounded as well. dom chu has more on this bounce. >> so the energy rebound is in play but like bob said, energy is one of the most beaten up sectors and still the worst performing on a quarter to date base tois close out the year we'll see if that bidding continues for the beaten up oil stocks but there is a reason why. wti crude has lost a third of the value from the early part of october. we talk about the internals and why people are looking at value hunting situations every s&p 500 energy stock is now down 10% from the recent highs. that is 29 names in that sector. how many have pulled back by 20% or more? try 21 out of the 29 stocks and that means that dividend yields for many of these names have become very attractive take a look at this. dividend yield of 3% or month out of the 29 stocks 11 have dividend yields of 3% or more, more than the 10-year treasury note.
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i'll highlight two in particular the two names that have fallen the least from their recent highs. oil majors, exxon-mobil and chevron. chevron has a dividend yield the 3.9% and with exxon you are talking about 4.3% yield there so as we talk about the reason why so investors may be dipping their toes into energy stocks, the dividend yields could be part of the value trade. tyler, back over to you. >> dom, thank you. the bull is firmly in charge right now but morgan stanley is getting a little bit more bearish on 2019. downgrading u.s. stocks to underweight. one of the chief strategists was on worldwide exchange today explaining what is behind that bill call, a slower economic backdrop, weaker earnings growth with continued tightening in the first half of the next year with the fed and it is all a cocktail for a much more difficult look for equities relative to the rest of the world. >> let's get reaction from our panel now. randy warren is from warren
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financial services and laurie kelsey was head u.s. equity strategy with rbc capital markets. randy, you think the bottom may be near if it isn't in already would you be right today, i guess. >> yeah, that is right we definitely think the bottom is near. the risk/reward ratio looks very positive right now i won't say we're at the bottom. but i think the call that morgan stanley was making there is a little late in the game. everything that they said is -- is things we already know. there are no new information we know what the risks are and the table spots are in the market place and we're probably sitting at about a 5% down risk and a 20% up risk over the next six months and that looks like a really strong risk/reward ratio for putting new money to work. >> and you think that despite the fact that the global economy seems to be sending signs of slowing. there isn't going to be the
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fiscal boost next year that there was this year in this country. rates are continuing to go up. and the fed is taking liquidity out of the market through tightening >> yeah. you've got to climb the wall of worry. there is another warren out there, that guy called warren buffett and he said be greedy when others are fearful. we think that is good advice be greedy when others are fearful. >> lori, what do you think as you listen to what randy just said. >> i think there are things to fear but i don't know enough people fear them yet i've heard more table pounding over the last few weeks saying you have to buy this and things are oversold but i don't see that on my data. we're neutral to constructive through year end and six drivers of market performance and they are neutral so don't put me in the bear but i disagree with the table pounding and oversold assessment. >> what do you need to see to convince -- >> what do you have to put on the table. >> not today.
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>> i pounded the table all weekend. eating like -- >> demanding more pie. >> more pie. go ahead. >> i would say at times like this when emotions are running high, i think you have to stay very, very focused on the data so let's just keep it simple and look at valuations we've never gotten worse than the 16 times forward p.e. and that is right at the long-term average. we haven't dipped back down into cheap territory. that is one way to look at it. look at sentiment survey like market vain and aaii and haven't collapsed and look at futures positioning and this is one of the favorite indicators because it told us we're in a trouble spot back in september we've gone from basically all-time highs on equity future positioning in the u.s., back to may 2018 lows and we haven't gone to the 2015-2016 lows yet i think it is too early to pound the table. >> randy, last word to you and why don't you give us some of the stocks that you say are
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beaten down but may bepoised for a rebound as you answer. >> yeah, absolutely. i think that there is a lot of wreckage out there stocks beaten up and things like boeing, they have their own special problem but they've been beaten down and visa has been beaten down, amazon, square, you just go through the market place, visa and there are so many great companies that have good earnings and good revenue that are just great buying opportunities out there. so we're looking to start putting money to work now. >> randy, thank you very much. lori, thank you as well. we appreciate it. >> thanks for having me. shares of general motors have the best day in almost a month as the company announces a major restructuring and while the investors like it, the unions aren't happy. justin trudeau doesn't like it and we haven't gotten reaction from trump just yet. that is coming up. plus elon musk said tesla
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iee.a near death expernc all of the news coming up on "power lunch." stay with us but which ones target your goals? it's not about quantity. it's about quality. no trendy stuff. i want etfs backed by research. is it built for the long-term? my reputation depends on it. flexshares etfs are designed and managed around investor objectives. so you can advise with confidence. before investing, consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully. i still can't believe how incredible the screen is on the new iphone xs. and our unlimited plan really takes things to the next level with your choice of the best in tv, movies, or music. it's the perfect holiday upgrade. i know what i'm asking santa for this year. you still write letters to santa? no. please. i send him emails. can i get his email address? oh... i don't feel comfortable sharing it. buy the latest iphone, get iphone xr on us, and get the unlimited plan and the best of entertainment. more for your thing. that's our thing.
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those that make sedans more than any others. >> right correct. that is at -- at the heart of this move from general motors. people are not buying as many cars, compact cars or sedans in general and as a result these plants are going to be effective. three final plants in north america are being shuttered. that basically means they're going to stop sending product there. officially they have not closed. but you could read the writing on the wall. lord's down employee 1435 and more than 1400 deployed in detroit and in ontario, roughly 2200 by the way, those workers this morning, a lot of them walked off the job when they got the news here is what some of the workers had to say >> nobody will tell us anything. that's why we're leaving there are people in there bawling their eyes out i've never seen anything like it and we can't get any answers so we've stopped the line and we're leaving. and that is all i know. >> hearts pump out of my chest right now but i've been here 13
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years so you have to take a stand at some point so that's what we're doing. >> as we mentioned, at the heart of the move from general motors is people are not buying sedans so they will get rid of the volt, kruze and impala and they were popular an getting rid of the buick la crosse and cadillac xts. this is simple ho help the bottom line of general motors free cash flow by the end of 2020 will improve by $6 billion. they are cutting capital expenduteures and that is why they are moving higher and i understand the reaction of the investors, tyler, but feel for the people in the towns, three plants and two other facilities in the u.s. where they are losing job as well. a real kick in the gut at the beginning of the hold season. >> we're talking about the job losses, phil, is there aniance
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illary -- the people who make the components that won't any more. >> correct they won't but there is commonize is and the suppliers have been cutting jobs or stream lining the process over a time. but there is no doubt this is going to hurt the transporters, the support jobs in these communities. a lot of salaried workers will lose jobs as well. it is not just the line workers, but other people in addition so this has huge ripple effects in ohio and detroit and toronto. >> and we want to ask you about tesla, a dramatic interview with axios over the weekend and musk said that tesla was close to death, those were his words. >> they were his words and the question becomes, how do you term a company dying let's remember that elon musk and tesla probably could have gone to the capital markets and
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raised more money. but here is what he had to say about the push to increase model 3 production and what it did to the company. >> tesla really faced a fear threat of death due to the model 3 production ramp. essentially the company was bleeding money like crazy and just if we didn't still have the problems in a short period of time we would die and it was extremely difficult to solve them. >> how close to death did you come >> we were within single-digit weeks. >> as you take a look at shares of tesla, keep in mind this company has been asked repeatedly over the last six months, you need to go back to the capital markets. do you need to raise more cash to help your facilities out or give you a little bit of a cash cushion and they've said, no we don't need to so while he may use the term it was within weeks of dying, let's be clear here. it was unlikely that we'll see tesla go belly up completely and completely die
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>> phil, thank you very much phil lebeau. >> so what does it look like inside inside -- inside an amazon fulfillment center couldn't he issa brewer live to show us around >> it is the first time i've ever seen 14 miles of conveyer belt i'll tell you that it is a million square-feet facility and today focus on getting the cyber monday orders out. two big questions here, can amazon beat its own record for cyber monday and can i find the llavect gift for tyler mathisen. i' he the answer to one of those questions ahead on "power lunch.
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cme group - how the world advances. ♪ millions of dollars will be spent online today and a lot of money will be through amazon so how does amazon organize and send out all of those packages and get them to you in two days? contessa brewer is at the company facility in robbinsville, new jersey, where she is looking for the perfect gift for me. thank you, contessa. >> they are getting the packages out in part by people like teresa, and an army of robots. this is one of 25 global robotic centers that amazon has that helps fulfill the orders and there is a tall task at hand because amazon wants to beat its own record that it set last
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cyber monday 83 million items ordered it thinks it could do that this year by offering deeper discounts on more items and free shipping for everyone, not just for those who are prime members. and so they will go about today -- as you could see the robots moving back and forth they bring the shelves up and the items are on it and then teresa takes them out or put them in as needed. so we know already that cyber monday is off to a huge hit. adobe has brand-new numbers that show us that we're expecting to see 18% year-over-year growth and $2 billion of shopping on smartphones alone and here is the big view of the fulfillment center here. of course walmart, target, best buy, kohl's, she all want to take a bite out of amazon's share and they are also offering free shipping on many items, but there could be a minimum or only on specific items. amazon thinks the free shipping it is offering will lure in the customers. here is the thing. we know it comes at a cost at the third quarter before they
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offered holiday free shipping to everybody, they said that shipping costs them $6.6 billion and that is almost double the operating income but still, they think if this could own a bigger part of the distribution chain, planes and trucks, it is a bigger deal. and by the way, i did go on a hunt for something special melissa, we love talking about unicorns on cnbc what do you think? for tyler? 40% off. >> does it come with wings that are blue because i think tyler would like blue wings on his unicorn? >> you make it light up by how much you pet it. >> that would be lighting it up. >> i would be lighting up the unicorn. >> which sounds odd. thank you, contessa. contessa brewer, the perfect gift for tyler mathisen. cyber monday set to break online sales and consumers shopped until they dropped or until phone batteries died, thanksgiving raking in
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$3.7 billion and including a billion dollars on smartphones alone and black friday saw $6.22 billion in online sales, a 23.6% increase from last year. joining us to discuss is liz dunn, founder of pro forma and roxan myers. roxan, i'll start off with you we'll getting all excited about the pure amount of sales should we concerned at what cost these sales come, though, in terms of margins >> so far this year, this holiday season, the promotions actually feel pretty rational. this is the first time in many years where the promotions aren't a tick up from the prior year but for the most part they are in line. obviously it is early days but i think we're off to a decent start here. >> i think the promotions, i noticed that as well i'm guilty of doing shopping myself and sealing what the deals were like, liz, but i found some of the offers in terms of free shipping and how fast the packages would get to me, at least what was promised was better than a year ago
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so are retailers spending on that is that going to be sort of what departments the margins of these online sales >> yeah, i think that is the margin contraction, the free and fast shipping. it is table stakes for anyone trying to be serious about e-commerce and many companies are seeing that as the fastest growing or pretty muchall of the -- the fastest growing channel so in order to compete, they need to offer it free, offer it fast and that comes at a price. and we've seen the margin contraction pretty broadly across the consumer sector, across the retail sector as a result. >> roxan, i confess that i'm a little skeptical of the online sales numbers, up 23% in a year and black -- whatever today is -- what do they call it cyber monday up 17% or 18% if those numbers are true, i've got to figure an awful lot of the growth is coming from people who were using their cell phones this time. is that true >> i think increasingly that is the case
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although i think still a decent amount of sales are still going through tablets and computers. but, yes, the phone is definitely becoming a more important vehicle for sales transactions >> do you believe those numbers? look at those numbers. 28% for black friday and 23% and 24% on small sale saturday or whatever they call it. and if you -- if you believe them, roxan or liz, if you jump in, if you believe them what, does it auger for the full retail season when people are saying maybe 5%, 6%. >> i think -- >> go ahead. >> go ahead, liz. >> i think that in the holiday period you see an outsized portion online and so you see faster growth during the holiday season and then you see for the rest of the year also we no longer talk about cyber monday it is cyber monday but the holiday weekend is much much bigger and i think holiday shopping starts at that period
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between the turkey and the pie when we're all kind of digesting. that is when we get on our phones and start shopping. so i absolutely believe those numbers. and i think that the phone is enabling people to shop earlier and so that is the dynamic playing out. >> and when the dust settles roxan and we get the final numbers, who will have fared the best. >> i think you'll see within the specialty channel it will be names like lulu lemon, urban outfitters and the off-pricers who are driving their sales from traffic first and foremost but also through innovation. it is all about product at the end of the day and that is where we're seeing the best traffic and the best product >> thank you both. liz dunn and roxanne myers. the bitcoin blood bath continuing today more than three quarters of the value gone this year what about a rebound and publicly president trump saying the economy is going strong but in private, how worried are white house officials about the possibility
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of an economic slowdown or even maybe a recession looming in 2019 or in the election year, 2020 "power lunch" will be right back
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hello. everybody, i'm sue herrera here is your update for this hour british prime minister theresa may addressing parliament on the brexit deal urging lawmakers to approve it because she said it is the best deal available >> i believe our national interest is clear. the british people want us to get on with the deal that honors the referendum and allows us to come again together -- allows us to come together again as a country whichever way we voted that is -- this is that deal >> the former president of michigan state university lou anna simon in court. she was arraigned on four counts of lying to police regarding the investigation of serial sexual abuser larry nassar and if convicted she faces up to 12
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years in prison. she's out on $5,000 bond and due back in court next month. and the u.s. capitol christmas tree has arrived take a look at that. it comes from the williamette and it will adorn the 82 foot high tree and lit on december 5th. tis the season that is the news update this hour ty, back to you. >> thank you very much we have a news alert on ibm and dom chu has the details. >> ibm ceo jenny emmetty is making remarks in brussels where she's calling for the overregulation of large consumer-facing technology companies saying that the genesis of the trust crisis among large cap tech is the irresponsible handling of data by a few dominant platforms and
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the power dynamic is different from business to business as opposed to consumers, where regulatory action is warranted and they also focus on what she wants to look at number one, the idea that you would focus on specifics such as ai use and transparency and explain ability as well as the dominant platform liability, meaning outlining what the consumer-facing companies are responsible for in terms of their responsibility and their potential liability as well. these comments again being made this afternoon in brussels so ibm now joining the chorus of debate if you will between apple ceo tim cook calling for the regulatory actions, probably taking place alongside of perhaps on the other side of the spectrum mark zuckerberg over at facebook about what they are doing over at facebook and other social media platforms melissa, tyler, certainly an interesting development and high-profile name in large cap technology weighing in on this big debate. >> sure it dom, thank you dom chu. we want to get a check on the markets.
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stocks were rallying but off the session highs right now. dow has higher by almost 390 points and now up by 243 good for a gain of 1% the s&p 500 at a correction territory, up by 1.1% or 29 points and the nasdaq is adding 1.4% and crude is up more than 2% on the session and take a look at the movers that we're tracking at this hour zillow, surging 10% on pace toward best day since may 2017 campbell's soup down 3.5% and the company reaching a settlement with third point adding nominees to the campbell's board so that stock down by $1.43. >> the lame duck congress getting back to work today but will they be able to do something to avoid a government shutdown next month. elon muy joins us live from washington. >> well it is crunch time for congress they have ten working days left to negotiate a spending deal and
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prevent another government shutdown before december 7th this wouldn't be too painful congress has passed bills to fund roughly 75% of the federal government so even if there is a shutdown it would be limited there are a few agencies impacted however, politically speaking, there are still plenty of land mines. for president trump, this is all about the border wall. he's calling for a major border security package but the house is only allocating $5 billion and that includes technology and fencing. the senate has even less, just $1.6 billion in its version of the bill the other thing that makes this messy is bob mueller, the special counsel overseeing the russia investigation and democrats want to attach a bill protecting his work on to the government spending package. however, senate majority leader mitch mcconnell is very clearly not interested and president trump tweeting the skepticism of mueller this morning, a protection bill could be a poison pill for the president.
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>> thank you very much. while the trump administration adjusts now to the new democratic house majority that will take effect after the first of the year, and congressional action on saudi arabia that may come along with it, it is facing the possibility, say some, of a recession. more on the nervousness in the white house with jared burnstein from the center on budget and policy priorities and james pathkukis both cnbc contributors before we get to the other worries the white house may have as the partisan complexion -- [ technical difficulties ] american employer cutting tens of thousands of jobs because business is slowing globally does that say something about the course of the economy over the next 12 to 18 months
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>> well, gm said it doesn't. they are not predicting a recession. though it is almost certain that this economy will slow as these are the simulus phase and then back to the trend growth of the economy. the administration i think -- when that happens would like to blame the federal reserve or business being scared about tax hikes from democrats but gm said there is more going on than just trade but trade has added to cost, the tariffs. ford has said the same thing so there will be a case to be made that these tariffs are bad for growth and are bad for the auto sector. remember, that is a key sector for donald trump there is two sectors he's focused a lot on within manufacturing and it is steel and autos and here we have autos shedding workers in two key -- in two key districts that trump flipped from blue to red and who knows may flip back again. >> it is absolutely true, jimmy and jared. the job losses that are forecast
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here are all as i read it either in ohio or in michigan he carried, mr. trump, ohio really more comfortably but however in michigan. and i know you were with us last week with mark zandi who was predicting not a recession, but a growth recession in 2019 meaning growth that is so slow it, for all intents and purposes, is a recession. >> yeah, well before i get to that let me say something about the autos echoing some -- underscoring things jimmy said to me what gm is engaged in here and i see what it is doing to the share price and i understand the strategic play there, but it is really very emblematic from a political economy perspective of just an underlying problem this is a very profitable company and in fact they are likely to become more profitable and look who is getting dinged it is the blue-collar worker who still barely is trying to catch
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a buzz from an expansion that is already in the tenth year and one we're now worried about is getting long in the tooth. now getting to your question, mark zandi is worried about a slowdown from around 3% gdp growth in 2019 to 1% in 2020 that is 2 percentage point decline. most of the other slowdown predictions are closer to 150 basis points or a half but in both cases, what you have is fiscal stimulus leaving the party. and as fiscal stimulus fades, the economy will slow. i think the big recession question will be is there enough other head winds to take an economy that could be growing 1.5% or 1.9% then and shifted across zero and that is to be seen. >> the timing though -- the timing, jimmy, is not very good for the trump administration if you are taking a look at when the forecasts are saying recession could hit, that is in 2020 whether you think it is going to
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be a recession or a slowdown in growth, it hits at the end of 2019 or in 2020. that is terrible timing, correct, for elections >> pretty bad timing very bad timing. >> the worst you could ask for >> the whole -- the trump make america great again, a big chunk is how many times have you heard it, we need to get rid of the slow growth, 2% obama economy. and it is the trump thesis that these tax cuts have permanently raised the growth rate of the american economy to 3% or higher if all of a sudden we downshift back to 2% or below, i'm not sure it explodes the trump thesis but it beats it up pretty badly. unemployment may still be low but back to a 2% economy after -- then it looks like we've spent a trillan and a half dollars on tax cuts for nothing and back to where we were. >> and everything jimmy said is not lost on trump who is of
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course against the federal reserve and same doing the same about the democratic congress and i wrote a piece the other day to the effect of a wounded tiger is a dangerous tiger i'm quite worried about what trump might try to do if growth really does decelerate by two percentage points, could a military intervention be on the table? it is certainly possible but he'll go to congress and try to get more deficit spending and i don't think he's going to find a very welcome -- >> military intervention -- where? what are you talking about military intervention what >> i'm not sure. there is a lot of places where that could take place. all i'm saying is that i'll bet you that there is a military kenysian kind of gear turning in trump's mind about these things and this day presidents have far too much leeway. i'm not predicting that. but i'm saying trump in a growth recession is a dangerous calculation. >> if that is the -- >> what about infrastructure changes -- >> infrastructure would be great. much better than a war
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>> yeah. i want to also bring you a -- your attention to the trump administration possibly intervening in some way to help growth we understand that mary berra is going to be meeting with larry kudlow following this job cut announcement jimmy, how do you think that conversation goes? >> i think she'll say this is important for the longer term growth prospects of gm and a little pain today will prevent a lot of pain tomorrow i believe that is an argument that will -- that will fly with larry kudlow whether it flies with the rest of the administration, which is really focused on protecting jobs today and not really looking at the impact on workers tomorrow, they may think less highly of it and i think -- i don't think we've seen the tweets yet from the president but i'm sure he'll remind gm of the bailout and this is -- this is a bad way to pay america back >> and the tax cut bail out of the tax cut. >> the tax cuts.
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we've given you tax cuts and you're giving us layoffs it seems very unfair >> jared, we haven't even gotten to a couple of the other areas that might be on the presidential radar screen. such as the democrats willingness to probe our relations with saudi arabia, our relations with russia in light in part of actions over the weekend in crimea where certainly ukrainian ships were seized and this morning an indication from representative schiff they might look at the possibility of money laundering between russian interests and mr. trump's business so there are a lot of hornets flying around. >> no kidding. and schiff is a very serious guy who does really very deep investigations by the way, the oeng thi-- the r thing that should be on the list is the new house majority ways
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and means could have the treasury give trump tax return and i have to believe that is on the top of the list. i think we'll see what you just described, it is a response to the base that is i think int integral to the project and but i hope democrats don't forget the policy issues and signaling workers they're there to help them. >> jared bernstein and james pegkukous with aei and now to eamon javers with breaking news. >> that is right a source familiar with the meeting confirms the associated press is reporting that general motor ceo larry barra will meet with larry cut low here at the white house today. in regard to gm announcement about the layoffs and plant rearrangements no information on what they will talk about here but you remember that mary barra was a very visible presence at the trump
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white house early on in the trump administration serving on his ceo business council and attending meetings and that is less in evidence as it has been for many ceo whosz participated early in this administration but we are told from a source familiar with the meeting that that will take place, mary barra meeting with larry kudlow this afternoon. no word on whether she'll meet with the president himself who is set to leave the white house in about an hour's time or less on his way to an event in mississippi this evening we'll see whether that meeting with mary barra takes place or if it is just larry kudlow that meets with her here at the white house. >> we are just talking about this conversation, what a conversation might be like between cud loy and barra and they are saying it is a push/pull with this administration we've given you a bail out or the u.s. government has given you a bail out and tax cuts and here you are giving us job cuts. at the same time the administration has dealt tariffs which cost gm a billion dollars and uncertainty surrounding nafta. as you sort of plot out, the
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leverage that the administration might have over gm and verse versa, what do you see. >> so game it out. imagine what larry kudlow could say to mary barra. this administration doesn't want to see layoffs on the president's watch. on the other hand they don't have a lot to offer incentive wise so do they have anything to offer in terms of potential punishments. and usually administrations have all sorts of things to deal -- to deal with businesses but in this case you might argue that sort of the bully pulpit here is what the administration has to offer. that is that the president has expressed sort of deep anger at companies that haven't done what he wanted -- harley-davidson comes to mind and question about whether that impacts harley-davidson or not imagine president trump sort of -- his criticism of gm unleashed in the wake of this and that could be a business headache for general motors. no indication that is happening, but just what larry kudlow wants
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from the meeting is a sense of how big this is and why it is happening and what is likely to happen next. it could just be larry kudlow gathering as much economic information as he can. >> the twitter account is silent for now. thank you. eamon javers joining us. and more, paulen grassio paul, great to have you with us. so this is -- so this is an interesting turn with mary barra going to the white house and meet with larry kudlow what do you think the tone of the conversation will be your view? could gm be bullied in any sense? >> well, it will be a -- not a pleasant conversation, i don't think. but i think you have to step back and look at this. obviously it is a big deal both financially and politically. financially this gm management team has shown itself to be quite adept at getting -- tackling problems before they become crises. so let's look at examples. they got out of russia before the economy really got a lot
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worse and also they sold opal in europe that should have happened about is a years ago but the previous management was not willing to step up and do that. so this management team has done those things the pain here is not falling only on blue-collar workers, by the way, but because gm don't forget, has announced it will cut the executive ranks by 25% and the overall white-collar ranks by about 15% so gm sees a slowdown in global automotive demand on america and the china front. on the political front say the tariffs that trump put on to help the steel industry have had a negative impact on general motors and the cost base here in the united states. so that is something -- the administration is -- may fume about but it is hard to deny that >> what kind of leverage does -- to use melissa's word a few
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minutes ago, does the administration have to get something out of gm with -- on what appears to be a decision that's being made for economic reasons because demand is slowing and particularly product mix, a demand for the kinds of products now being sort of shunted aside, like the sedans, impal and and the cruze but they are just not selling. >> i don't think the administration has that much leverage except for the bully pulpit and has that worked with harley-davidson? i don't think so the harley-davidson plans are in tact so it seems to me that gm is -- has made its case here it would be very difficult for them to make a truly about-face turn -- they might be able to soften things around the edges if the pressure from the administration gets verbal pressure and gets pretty heated, but there is not too much they
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could do i don't think. >> when you take a look at the story maybe from farther away, paul, do you see this story as a story of a -- the slowdown in the global auto industry or more of just of the lack of demand for cars >> well it is a little bit of both, melissa, honestly. the auto industry had an incredible run in the united states since the bailout they were selling -- in 2009 i think automobiles were about 10.5 million cars and trucks sold in america. lately it is 17 million a year more or less there about. so it is a cyclical business so this is overdue in a way but also the huge structural change in the move from sedans to suv and crossovers and trucks and on top of that layer -- layer on top of that the three simultaneous revolutions going on in this industry. the propulsion revolution, the move from internal combustion to electric and hybrids, the
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autonomy revolution to driverless cars and then the community revolution which means uber and lyft and the rest of them that will be joined with driverless cars. so there is an awful lot in play here the senior management of gm hass to be looking three to five years out, which seems to be what they're doing >> paul, thank you very much for your analysis, we appreciate itp. the bitcoin bubble has burst. it is down 70% so far this year is it going to zero or is bottom being formed and a bounce coming bitcoin bull will tell us if he's still bullish. and speaking of disasters the phil mickelson tiger woods pay per view match resulting in millions of dollars worth of refunds. but did something good come out of it? we'll look at that, coming up.
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that december 2017 high. let's bring in ryan. good to see you. >> good to be here >> you sent over a chart which basically says we've seen this movie before can you walk us through this chart? >> bitcoin since 2010, from 2012 and then 2012 to 2014 saw similar moves. we saw a huge run up, just like we saw this time last year and then a sell-off, again it repeated itself we're through that now it doesn't feel very good as an investor it certainly doesn't feel very good but i think people need to remind themselves, this is the most risky thing you can do with your money is cutting edge technology and it will be extremely volatile >> does this sort of decline, does this help or does this hurt the move of institutional investors into this space? that had always been cited as a catalyst institutional money will come
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into the space when you see a decline like this one that we're living through right now, does that make institutional investors say, hey, it's a bargain now. or this just shows how volatile this asset class is and i want no part of it. >> it's a great question i thought we would see, at least from my perspective in our fund, a lot of outflows. what we've seen from institutional investors is more interest than we have in the last couple of months. when we're around 6,000, institutions said, hey, listen, this thing has gone through a bear market and it hasn't gone away, i need some exposure down at these levels, it probably looks more attractive, but importantly what institutions are doing are sizing it appropriately. 1% to 5% of their portfolio is coming into this asset class >> so, when you talk to the investors who are interested in bitcoin now, how are they viewing bitcon there was a case where there was a store value. asset from 40k hard to say that
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is a value and others will say a means of transaction it's an actual currency. but if you are to believe there are more transactions and the more bitcoin is used, the price should go higher, too. hard to make that argument, as well when they're investing in this, what is it in their view >> two things they're investing in number one, wall street where we've gone from securitization to tokenization. that will be a five to ten-year process. the second part of it is web 3.0. where we're removing the kind of tracking mechanisms that facebook has and creating a new web where the user controls the role data. those are the two big mega trends that rare they're investing in here. i don't think anybody will argue that that is a great value that being said, what is interesting even in this decline, we've seen transactions go up. over the last few months we've seen the number of transactions
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increase on the bitcoin network. this thing is still being yutzed as some kind of medium of exchange >> what if any individual investor should buy bitcoin and how should they do it? >> that is a great, great question, tyler. in my view, i think everybody should have some piece of crypto currency in their portfolio. again, it needs to be a really small portion of your portfolio. let's say 1% if you put 1% of your portfolio into this, then you can ride out the bear markets that's why i sent over that chart from 20 10 to 2012 to 2014 we had two booms and bust prior to this one and you can ride it out. so, if you're the one who said, hey, back in 2014, boy, i wish i bought this thing at $300, maybe you'll get another shot right here >> brian, thanks so much for your time. >> thanks for having me. stocks are nicely higher right now. doing better than bitcoin, by the way. as you see right there, 264.
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off the best levels of the session, though. will the 2:00 p.m. hour bring another leg higher or will that rally fizzle. we've shown you what it looked like from amazon. live from a walmart facility as e cybermonday edition of "power lunch" resumes after thistdo which means you may have to pay for the rest. that's where medicare supplement insurance comes in: to help pay for some of what medicare doesn't. learn how an aarp medicare supplement insurance plan, insured by united healthcare insurance company might be the right choice for you. a free decision guide is a great place to start. call today to request yours. so what makes an aarp medicare supplement plan unique? well, these are the only medicare supplement plans endorsed by aarp and that's because they meet aarp's high standards
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good afternoon, everybody. i'm tyler mathisen welcome to hour two of "power lunch. this could be one of the most important weeks for the markets in months as president trump gets ready to meet chinese president xi and fed chair powell will speak. what you need to know and how to position your portfolio. all the typical precursors of a slow down or recession have popped up. he will make his case. a strong showing for retail sales over the weekend, but the online players that reaped most of the benefits. what can brick and mortar stores do to gain traffic to former ceo of bloomingdale's will join us as "power lunch" resumes right now. tech shares rebound and oil
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prices jump. still on pace for the best day in nearly three weeks. s&p 500 up by 1.25% out of correction territory financials, consumer discretionary are the sectors leading at this hour and real estate, meantime, is lagging, but in the green within the dow, we have american express, jpmorgan and all higher by 2% apiece walmart is a big lagger even on this siper monday. the auto sector getting a nice boost after gm offers a restructuring plan for now we head to bob pisani on the floor of the new york stock exchange bob? >> dodged a little bit of a bullet there an hour ago we were heading south dow up more than 200 and now turned around close to 3pen and th because the sectors most beaten up are turning around and leading the market take a look here, energy,
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retail, consumer staples are the ones leading the market. cyclical stocks sold off here. heavy volume exchange traded funds. particularly when they're really lopsided somebody is picking at the bottoms here huge volume in some of the energy etfs. and big volume in european etfs but greece, france and italy, those generally are sitting not far from lows for the year volume very heavy in that, as well again, somebody is picking at the bottom here. generally a good sign if you're on the bullish side. you've seen the banks turn around, american express, goldman sachs leading and microsoft, cat perpillar and brd rally. not a lot in the way of new highs and lows general electric painful to point out here
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we're in the $7 range. remember, we were 11 at the start of the month this is not a new low. we have to go back to what we were $5.75 back in the first quarter and it's not a climb near a multi-decade low, but certainly not a good sign that it can't stabilize still down 7% today. back to you. >> thank you, bob. well t is, it is a busy wee the markets. on tuesday the spotlight on rich clarita and jerome powell speaks at the economic club of new york and on thursday we have the fed minutes and we kick off the g-20 meeting in argentina where trump is expected to meet with president xi let's bring in karen kavanagh the senior market strategist and doug butler senior vp with rockland trust great to have you both karen, you think we are still poised for a santy claus rsanta.
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in terms of g-20, do we need a breakthrough there and the fed to back off on future hikes? what do you see? >> i don't think we'll see a lot of clarity first of all, uncertainty regarding brexit we can check that off the list the market is looking for some kind of signs that powell is willing to be more dovish and that president trump and president xi are willing to negotiate. all we need is a little bit of some signs of nonuncertainty for the market to really move forward because we are a little bit oversold i think as long as we see some definitive signs that things are going in the right direction, investors will take heart. >> what kind of santa claus rally are you thinking, karyn? >> look, today we're up 1% i think we can do 5% by the end of the year and make up a little bit of the lost ground the p/e is at 15 time s earnings
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we're coming off a high bar and still looking at 8% earnings growth in 2018 i'm sure there are soft signs in the economy, but the economy and market are not always the same thing. i think the economy will still be okay, but i think that investors need to look at those earnings and as long the earnings are growing, that is a positive for the market. >> let me ask you a couple questions on where the market is going and let's say earlier in the year i or my mutual funds harvested some capital gains i have a month now to decide what i want to do. better time if i have some gains on which i am going to have to pay tax to offset those gains withtial sales of losing securi, or is it time to buy in? >> i think it's definitely time to look at your tax strategy and really harvest the losses, but harvest them in a smart way and
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essentially we will harvest losses, but reinvest the securities in a similar investment, being careful to avoid any wash sale rules. but i think one of the upsides of a draw down in the markets over the last month and a half or so is that it has created these tax opportunities and really people need to like figure out, you know, how to minimize their tax bill for next year >> you know, in a market environment like this, doug, a lot of people who, i like the term harvest losses. it makes it sound so pleasant when actuality is quite painful. in the point of harvesting these losses into the final month of the year, do you see that as adding more pressure to the markets to the downside? >> it could in some names. you could see some of the bigger, more liquid names and ge, i can't envision that anybody still holds ge at a gain they may have bought it back in, you know, march of '09 and have
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it at a gain but ge is a prime candidate for harvesting losses now and that's widely available in a lot of client portfolios and thankfully not in ours. >> not the hastens to add. >> we'll leave it there, guys. karyn and doug the market might be showing some signs that it doesn't see the effects of trump administration policies continuing into next year and beyond steve liesman is here with that story. tax cuts, stimulus >> deregulation. >> deregulation. maybe so 2018. >> well, speaking of earlier than that, you know, remember jimmy cliff, the famous reggae singer who sang the harder they come, the harder they fall led the elections of president trump led the market lower since the top. is it just a case of the market
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correcting itself among the overbought sectors or have they fallen out of love of the trump trade. here's the top three sectors they were up 51% from the election to october 3rd and then they've been down 8% on average. those three sectors. and then you can see the ones that were up only 3% are down just 2% in that period of time here are the selloff by sector can you see that, melissa? it's a little small, i guess, on the screen i.t. was the leading sector up and leading sector down. second leading sector down the top three on the right-hand side interesting real estate has done pretty well in this time period. the trump administration says the benefit of tax cuts will build over time. that's going to prompt companies to invest and boost worker wages and among the sectors that would benefit the most, industrials were up 33% from the election and off 12% now. morgan strangely pessimistic
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about earnings greater than 50% chance to experience a modest earning recession in 2019. this is likely to be offset somewhat by a fed that pauses its rate hike campaign by june could be that trade disputes are troubling the market along with concern over the fed and interest rates but the optimistic view that the upside of tax cuts would reduce or otherwise outweigh the down side of those issues. that seems to be an open question at the point. chief economic commentator greg addressed some of these in a recent article ed a mist roaring economy, greg, good to see you, as always it has been a very difficult year to make much money. hard in stocks hard in bonds. difficult in commodities. what is the market telling us about the future of the global
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economy not just the u.s. economy? >> i think a lot of what the market is doing is actually make a lot of sense if you think about where we are in the business cycle now, entering the tenth year of this expansion by next summer still a record if we're in growth and the fed is worried about inflations on tightening in those circumstances, it gets tougher for risk assets. now, remember, any risk asset whether it has benefitted from the fact that the return on cash has been zero for most of the last ten years turkish bonds, bitcoin and common stock they all seemed like worth owning when your alternative was zero the fact that you can get 2% to 3% risk free means it is harder to justify the risk assets let's not be shocked that markets, both the corporate bond markets are struggling now the more interesting question, are they telling us that the economy itself is getting in trouble. we don't see a lot of data at that point but the odds of the recession have gone up
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>> you do see it in some foreign economies? >> yes that is kind of interesting. the u.s. economy surfing this fiscal, we have germany and japan with negative third quarters and china slowing to it slowest growth rate in a decade. again, that doesn't necessarily mean that the u.s. has to follow suit, but it's likely that those paths will converge. grown over 3% in thelast year and hard to imagine the circumstances lining up in such a way to give us that pace of growth, again. there is going to be a slow down the fed at this point is not surprised that things are slowing. the question on everybody's mind, does it overshoot in that a collection of risk aversion, you know, trouble in the markets, fed mistake give us an actual recession >> the headline was interesting. markets sounding the alarm because the thing that i thought of immediately is even if the markets are sounding alarm, the fed is not lisening to that
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alarm. it will take more in terms of market volatility for the market to be input at any future meeting. for what investor angst is with apple down 25% from its high and the list can go on and on and on in terms of stocks off its highs, it doesn't make a difference to the fed. >> i don't see the fed getting worried about it at this point we're only at 10% down on this, that's barely a correction the selloff in credit has barely raised the spread. the investment grade or the speculative grade bond spread. certainly not as bad as recently say 2015 the fed has also been puzzled and worried since they started tightening they began raising short rates in 2015 and began shrinking the balance sheet last year and overall these risk assets have gotten frothier. some people might be pleased or relieved that some of the froth has come out the question, always, degree they don't want to overdo it
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the fed, they're not the leader of an orchestra here where the orchestra responds exactly how they want it to. more like the leader of a mobs and mobs can't be controlled, they can only incited. right now i don't think it's working for the fed, but watch this space >> one thing that stands out to me powell will have a press conference in december and then every other meeting going forward, he's going to have a press conference so, there's going to be a lot more opportunity for him to communicate and, also, for the markets to interpret what he says, but may not necessarily mean so, it's, i think next year could be a very interesting year of fed watching. >> tyler, that's a great point and i actually want to expand on it a little bit. one way the fed has helped the economy is being very transparent with their plans giving us lots of forward guides on where they're going chairman powell made it clear those days are over because it's
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not necessary anylonger and it is not his style he is trying to get us to pay less attention to the dot plot he is the type of chairman who is much more likely to play it as it goes i remember his first press conference he told us, we made one decision today and one decision only. so, i think one of the things the markets will get used to is less guidance and less hand holding from the fed that is not a bad thing in the short term but giving us greater volatility >> thank you. coming up n vestors pu, invn $7 million from investors. what impact could it have on the markets? general motors shifting gears. the company set to slash 15,000 jobs as it tries to restructure itself will it pay off in the long term it is the super bowl for shoppers this year's cybermonday set to break records for shopping online we'll go live inside one of
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walmart's centers to see how they're handling the rush. "power lunch" is back in two i am a family man.
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i am a techie dad. i believe the best technology should feel effortless. like magic. at comcast, it's my job to develop, apps and tools that simplify your experience. my name is mike, i'm in product development at comcast. we're working to make things simple, easy and awesome. welcome back to "power lunch. the dow just crossing back above briefly the 300 points higher mark it had been up 387 at the highs and up now about 299 there it shifts and as you see both the s&p and the nasdaq arer higher, as well, higher than the
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dow in mersage terms. pull big money from hedge funds. leslie picker is here with the latest numbers >> underperformance and outright losses in october forced many investors to take their money out of hedge funds investment estimates they pulled $7 billion in october bringing the year to date total to more than $10 billion in net redemptions. and the firm says it's unlikely that trend reverses in november, december making 2018 only the fourth time in the last 14 years to see net outflows from hedge funds. often a result from performance and in october hedge funds lost money but still outperformed a basket of stocks and bonds as well as the s&p 500. but for the year through october, they're still lagging it appears 2018 may be yet another notch in the long history of hedge funds out with a new projection saying the hedge fund industry will grow
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its assets by 31% in the next five years reaching $4.7 trillion in assets under management however, the five-year return for the s&p a often comes in at twice that growth rate that implies hedge funds may underperform the broader equity indexes or some will continue to see redemptions because they're not going to broaden from that natural appreciation from overall market averages. >> leslie, thank you >> thanks. in the fast lane, gm announcing a major restructuring plans and investors rewarding the stock right now. the question is, will the president take issue with the jobs lost in the process most in ohio and michigan. we'll take a look at gm's move and what it means for the future of the company, the stock and the broader sector as we turn to "trading nation. next
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not long ago, ronda started here. and then, more jobs began to appear. what started with one job spread all around. because each job in energy creates many more in this town.
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welcome back to "power lunch" i'm mike santolli gm racing higher as investors have restructuring plans those layoffs prompting a meeting between mary barra and white house economic adviser larry kudlow tomorrow.
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the automaker now up 20% from its 2018 lows hit just last month. gina sanchez to talk about what this might all mean for investors. gina, on the one hand, understandable, getting more productive and seessentially trying to save money down the road on the other hand, an acknowledgment that the business model has been broken for a time now. where does that leave you in terms of the stock >> the business model has been broken i think this is a very bold move for gm because, basically, they're looking at the writing on the wall and saying car ownership is down. all measures of kind of car ownership are down even, even parking lots are going out of business in major cities and, so, kind of their decision to take this and reinvent themselves in two ways one through electric cars and other through autonomous vehicles if we make a shift, we'll have to make a big one.
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we have to figure out how to raise that cash. i think this could be a very interesting move for gm. >> i should correct myself, actually larry kudlow meeting with mary barra today. that brings up the question of whether this layoff plan is going to be so unpopular politically and cause enough public relations noise that, in fact, it jeopardizes what gm is trying to do here. >> i think you're right. i think that is a challenge. obviously, when you lay people off, a very unpopular decision and, especially, you know, right now we're looking at an economy that is probably peaking if anything, the administration is trying to figure out ways to sort of continue the party and this is not going to help. if anything, it's going to really hit them in states where they really need the votes >> we're joined here to take a look at the gm chart a lot of fundamental investors said this is a dirt cheap stock for a long time. what does the price action tell
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you if anything today? >> looking at the longer term, it is directionless. tough to make the case for it either being a top buy or a top sell here are the trading levels you have to watch here, mike $39. we came right into this today. why this is important. this was the gap in the stock dating back to over the summer in july. typically you'll feel the gap. they'll act as resistance on the way back up and the stock has done a pretty good job of respecting these gaps. more recently, that the october gap at 34, it it held it as support on the november bounce back so, $39. important level to watch right here, right now. >> all right, we will continue to watch it. thanks very much, ari and jean, appreciate it. thank you for joining us for more "trading nation" head to our website or follow us on twitter. melissa, back to you. >> thanks. coming up on "power lunch" 'tis the season to skip the cashiers and buy online. record internet sales helping the holiday season get off to a
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strong start what happens after you hit that buy button courtney reagan is live at a walmart fulfillment center courtney >> hi, melissa it's going to be a recordbreaking day for online sales and walmart wants to be a part of it we'll tell you the retailer's plan for cybermonday, coming up on "power lunch. and now the latest from trading nation.cnbc.com and a word from our sponsor. >> a double bottom is a chart pattern that suggests the downtrend may be ending and ready to reverse sometimes calls a w formation because it looks like a w. a double bottom when they form two distinct lows. traders often view a highest high as a bullish signal
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welcome back to "power lunch. i'm sue herera a senior russian diplomat warning that the withdrawal could upset stability in europe. if the u.s. then deploys intermediate range missiles in europe after opting out it will
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allow washington to reach targets deep inside russia. japan is planning to add the u.s. f-35 stealth fighter to its defensive arsenal. the move comes as china is strengthening its military presence in and around the east china sea. here at home, chicago residents are feeling the effects of that city's first blizzard this season blankets of snow covering the downtown area 13 inches falling in mchenry county. 800 flights were canceled at o'hare airport today on top of the 700 canceled flights from sunday and first lady melania trump unveiling the white house christmas decorations. honoring the heritage of america. the gold star family tree in the east wing was decorated by families whose relatives were killed in combat that's the news update this hour, melissa, i'll send it back to you >> sue, thank you. sue herera. a rally on wall street but off the session highs. the markets right now are up
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1.4% for the dow we have been higher by as much as 390 points or so earlier in the session. s&p 500 up by 39 points or 1.5% and the nasdaq is up by 1.8% casino stocks are up and we have wynn, mgm all moving higher and moving higher sharply. wynn is on pace for its best month since august of 2017 mohawk all extending their gains over the past week here. tyler? >> thank you very much. the oil market closing for the day. seema is at the commodity desk >> we saw oil drop nearly 8% on friday and losing about 11% on the week today, oil prices trading back above $60 a barrel with wti crew trading above $51 a barrel despite a new report this morning suggesting saudi arabia has raised oil production to an all-time high in november. investors are now awaiting talks
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to commence at the g-20 summit between saudi arabia and russia. any commentary from leaders there could be market moving ahead of the opec summit on the 6th. barring any major headlines goldman sachs expects price elevation to remain elevated in coming weeks we're seeing oil prices today and energy producers chevron and bp are trading higher by around 1% to 2% on the day. melissa, back to you >> thanks. it is game day for retailers cybermonday expected to set online shopping records. courtney reagan is inside the walmart fulfillment center with more hey, court >> hi, melissa it is expected today will be a historic day for online sales walmart hopes to be a part of it check out actual data transactions that we have right now from first data's network of 6 million merchants. this is showing that specialty retail has so far logged more
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than 800,000 checkouts followed by electronic stores when all is said and done adobe forecast will be spent online here today in the u.s. that marks 18% growth over last year's cybermonday it will be the biggest day ever online in the u.s., even though it is a slower growth rate than what we've seen online for thanksgiving day, black friday and even small business saturday now, this walmart fulfillment center is part of a large network shipping millions of items ordered over the long holiday weekend and many more being processed right now. thousands of associates work in this facility. it covers the equivalent of 21 football fields. 12 miles of conveyer belts that move merchandise from the ordering, through the facility all the way on to the trucks for delivery so far, walmart top cybermonday sellers include ipads, tv, gaming consoles and toys like lol surprise and even these classic board games are very
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popular like sorry, chutes and ladders and candyland. walmart.com online sales for thanksgiving day and black friday grew 23% over that same time period last year. jet.com online sales fell 6% on that time period amazon's sales grew 25% on those two days and target's were up 48% now, we're just hearing from deliver. that's a company that helps fulfill walmart marketplace items. that company says that between wednesday and saturday, walmart marketplace sellers saw a three times volume order pickup compared to an average day in october and november i know contessa brought you guys some gift from amazons i'm going to do one better melissa, for you, instead of unicorn you get a unicorn emoji purse and, tyler, for you we
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have unicorn slime poop, can i say that on tv >> you just did. twice. >> what does that slime do, courtney >> what does this slime do ten magic surprises in here. so, we'll have to wait and see we'll have to open it up looks like it comes in different colors and changes colors, you can collect. yeah, there's a lot to do here >> wow i mean, i tell you, courtney, seeing those packages fly by behind you look at the speed of those things going behind you. it's amazing >> isn't it amazing? we have to be really careful we have to move our equipment when we're not live. there's a high volume going through here >> thanks, we appreciate it. >> you got it. online sales surging to records this thanksgiving weekend. let's get some spperspective on what the numbers mean for the rest of the holiday season welcome. good, as always, to see you.
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what do you make of these numbers and what are they for the rest of the selling season >> i think the numbers are good numbers. and i think it argues very well. i think, obviously, consumer confidence is very high. unemployment as we know whether it's 49 or 50 years low. people are feeling good about things there was a terrific break in the weather, maybe not in chicago over the weekend, but certainly in the northeast the weather was extremely cold and i think that just from the people i have spoken to today and some of the companies i'm involved with from being associated with them, the business across the board was extremely good so, whether it was the beauty business or whether it was in the jewelry business, the apparel business i think the business is extremely strong >> we had, we had some guests on last week who were pointing particularly to the beauty business as potentially one of the sort of breakout sectors this season. talk to me a little bit about what the traditional, more brick
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and mortar retailers are doing and how they're doing in store as opposed to in their online channels >> well, i think you can see the store numbers. you have to extrappialate them because if you take nordstrom a week and a half ago when they reported what their numbers were they reported 30% up in the online business and that's 30% of their business. that's six base points they were up 5.8 in the outlet business the rack so, you could tell that their in-store business was down somewhere between 5% and 6%. but i think the instore business is much stronger than that on the whole. you have to look at tjx last week it baffles me how the market looks at that. but those were incredible numbers on the volume of that size picking up 7% comp. the largest division up 9% comp. everyone of their business is up but they were whack because their expenses were up slightly,
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as they're trying to grow their business in a sensible way thinking about the long term i think the instore business is there. home depot, walmart, target. i think those businesses are very good and they're going to stay strong. i think that there's an interesting thing going on there was a very interesting article in the business sector of yesterday's "new york times" the sunday paper it was really talking about what's happening with malls in china. talking about how they're putting in museums >> they're experimeiy're expeeel >> the founder and chairman of value retail and he really said two things he said, first, in china, ali baba won the stores will start being a place where people will build their brand. the other thing he said which i thought was totally correct and very prevalent to what's
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happening in the united states was when he talked to people wanted to go into a store as if they were going into a hotel or resort they want an experience. they want an emotional attachment it isn't going just for another sweater or another pair of this or another stick of lipstick what's that experience what is that emotional connection why would they want to come back i think those are the places that are going to do extremely well going down in the future. >> i like to go to the stores for the showmanship. the first floor of bloomingdale's on 59th street which you know so well or saks fifth avenue michael gould, thank you, we appreciate it very much. former chairman and ceo of bloomingdales. refunds coming to those who paid for the phil mickle asoel n mickelson/tiger woods golf match. next
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so lionel, what does being able to trade 24/5 mean to you? well, it means i can trade after the market closes. it's true. so all... evening long. ooh, so close. yes, but also all... night through its entirety. come on, all... the time from sunset to sunrise. right. but you can trade... from, from... from darkness to light. ♪ you're not gonna say it are you?
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welcome back to "power lunch. supposed to be an event of epic proportions for at&t we're talking about the tiger woods/phil mickelson golf match.
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it did become an event for the carrier, but not in a good way eric is here with the story. lots of snags. >> lots of snags a mega media company showing off its widespread strength with two of golf's biggest stars. it was supposed to be historic but viewers got hit with technical issues and in the words of charles barkley, earlier on bleacher report suffered website glitches which prevented fans from accessing the paid stream. the company today telling cnbc that it decided to take down the pay wall to ensure that fans who already purchased the event would not miss any action. unfortunately the technical issue did occur and bleacher report will offer fans a refund. but because some fans got to watch for free, every other cable provider decided to issue refunds, as well, including comcast, verizon and charter it was estimated that the match would need to make $14 million to break even but now it appears
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at&t will have to eat that entire cost. the experiment was closely watched to see if this new way of revenue growth would capture an audience. one expert telling me it's actually possible more people than expected wanted to watch, which is why the computer systems couldn't keep up it's fair to say, though, today nobody thought making zero dollars revenue was how this was going to play out. >> somebody lost their job today, i bet >> you think one person lost their job or at least five people >> i think several people probably >> but not tiger or phil. >> not tiger or phil as i was saying earlier, m issue with this is the purse winnings should be immediately given to charity >> or come out of their pocket at least a true bet not you can't lose money >> plenty of people who were victims of those fires out there and those guys are both californians and i hope they will both step up. >> you heard it here first, tyler mathisen calling on them to do the right thing. >> thank you coming up, social media
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shopping ralph breaks the box office. that's next on "power lunch. the cnbc trend tracker data board is brought to you by the data group rebekkah: opioids has taken everything and everyone i've ever loved away from me. everything.
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i blew my ankle out and i got prescribed pain pills by my doctor. if making my detox public is gonna help somebody i'm all for it. i just wish i would've had a warning.
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welcome back to "power lunch" everybody julia is live in los angeles making moves into e-commerce will shopping through these social media platforms catch on? >> well, tyler, it seems like it's starting to the percentage of people planning to shop on social media sites this holiday season nearly doubled to 15% from last year. this according to a study. snapchat launched its first dedicated shopping channel to buy right there on the app and snap is going up instagram new shopping tools including shopping from videos while facebook is working to grow its marketplace this holiday season. see if the convenience can overcome concerns about credit card security and privacy among other things
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>> topic two and this one got by me record breaking box office at the box office who are the lead snrz. >> "ralph breaks the internet" the largest and beating the record set back there 2013 when frozen and hunger games catching fire both debuted. robin hood opened this beekweek. >> the u.k. parliment getting ahold of internal facebook documents. what's in them >> so ahead of the panel questioning on fake news in this information british parliment obtained from an app developer it sued facebook alleged data policies were anti competitive
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facebook fought to keep them private because they may include e-mails between senior executives california state ordered to keep them under seal. the chairman of the house of commons committee said they can choosz to publish them if they like so we'll have to see what happens if they choose to publish them it is another headache for facebook >> all right thanks very much in the last hour at an event called for regulation of consumer tech companies like facebook, google and amazon. many saying it is a case of when not if there will be regulation. it focused on the handling of personal data. let's bring in the senior tech analyst. great to have you with us. if we modelled what would that
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cost >> well, it is going to cost a lot more than the number in front of me. we would expect this to happen the spill over is inevitable in our belief over a period of time you have to fast forward and think what ultimately does it mean for facebook, google and amazon it will weaken the small guys. it benefits the big guys we think if this happens it will be actually good news over a period of time if you have to opt in they will know more about you and effectively it will be more money for advertisers. i don't think it will change the big platform story it hurts the little guy more so. >> we have breaking news thanks to you president trump seeking moments ago as he departs the white house. he spoke about the decision
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today. >> he said that he told gm's chief that he is unhappy with the company's restructuring decision he also said he does not like the decision on north american auto production and that he expects gm will put something else in ohio so far we do not know what it might be he also made comments about brexit saying it sounds like a good deal for eu but it may mean that the u.s. may not be able to trade with the u.k we'll have to see where that goes president trump not happy with gm's and halt production at several of ilts plants we'll update you with more on what he said >> he is hopeful gm might put something else in ohio, ad production for suvs for example? >> we do not have more details on exactly what that might be.
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the president said that he is hopeful something else will go there. manufacturing has been a key plank of his presidency. for these to halt production could be seen as a blow to that piece of his agenda. >> all right thank you very much. check please willing next. -- will be next.
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this is a $1 billion mission. it is unlike any mission we have seen from nasa or anyone else for that matter. this specific spacecraft is going to now drill down. it is going to assess the interior of the red planet to tell us hopefully a little more about our own planet and how it was created and take the temperature of mars to see if something like liquid water
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could exist there. if it turns out to be the case it could be a game changer in the process which we do that as human beings this is made by lockheed martin. it has been years in the making. it joins the other spacecraft that we have there it landed there in 2012. >> do you happen to know whether this critter can move around on the terrain there? >> the plan here is unlike curiosity. it is for this to be stationary, so basically set up and take a jackhammer and drill down about 15 feet into the crust of mars >> fascinating stuff >> i assume we'll get pictures been the next day or so. >> yes >> thanks.
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our space correspondent. >> it is amazing we can get the picture us out of nasa you see that >> yes >> session highs i believe this is up 1.8%. i am watching shares of apple. even though the entire market is in rally mode apple shares are not and have not been -- they have been under dcperforming you can see the s & p 500 is up and apple is down by about 20% this is since the end of olctobr here it is a tremendous number of them not just stocks or bonds but all kinds of commodities
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>> and if you're a hedge fund or trader all of those have broken down this year think of how difficult it is for anybody to make money. that's the kind of market we are in, guys rally for today at least thank you for watching power lunch. >> closing bell starts in about three seconds >> welcome to the closing bell >> naturally >> there we go that's all i want to hear. the dow higher for the first time in five days. trading higher by 347 points the high of day for the dow was

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