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tv   Closing Bell  CNBC  April 15, 2019 3:00pm-5:00pm EDT

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this weekend it will be effectively gone. >> yeah. by morning >> 300 years to complete. >> by morning. a million visitors a month go to notre dame what a tragedy for the country of france. >> makes you -- and thank you, everyone for tuning in today >> "closing bell" continues right now. welcome to "the closing bell." the final hour of trade. it's a big day for the banks earnings we'll break down how they did, where they stand, and what's coming up next as we head into the close. plus bank of japan governor occ kuroda, what he says is the biggest risk to the global economy. and we're counting down to netflix earnings tomorrow. what every investor needs to anyway ahe know ahead of the results. "the closing bell" starts right now. ♪ welcome to "the closing
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bell." i'm sara eisen here with wilfred frost taking a look at the market lower right now. we've been in a kind of narrow trading range for the dow. got down as low as 95, up 12 we're somewhere in the middle now. down 31. a defensive tone to today's trade. what's working in the s&p, consumer staples and health care, financials, and real estate among the biggest losers. not digesting those bank earnings particularly well that's probably one of the bigger catalysts today >> citi just went positive briefly but is back in the red coming up, panera's ceo will join us to talk about the company's breakfast business and how it's stacking up against competitors. >> but first as we mentioned, banks the top story. under pressure after earnings this morning wilfred, you've had all day to sort of reflect on the numbers and absorb the conference calls. are the take cais? >> i mean, overall trading despite those eps beats we talked about this morning, giving out that gain that we saw on friday for the group as a
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whole, there were some flattering aspects such as a lower tax rate than expected and a lower compensation expense for goldman. that might not be repeated going forward. spite that, the fact it triggered a broad bank selloff is somewhat surprising and shows investors' willingness to look away from the structure given we're in this late cycle environment. on the plus side, both had strong investment banking performance. and trading continued at being less bad than fears overall at least better than equities that low was not enough to take away focus from other areas. for goldman sachs, that was misses in investment management and lending. which has meant investors fear there's still a lot for the new management team to do even if both ceo and cfo were positive about their new initiatives like marcus, apple credit card, and marquee. citi's results were pretty solid. importantly, there weren't any
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major cuts to guidance for year ahead because of macro fears or anything like that as there had been for wells fargo on friday regardless, shares trading lower for both goldman sachs and citi as are most of the to banks today. tomorrow turns to jpmorgan morgan stanley on wednesday. >> joining us is mike mayo senior banking analyst at wells fargo. mike, how do you see this quarter? are the different banks distinguishing themselves amongst others >> well, look. revenue growth is not great. and that's okay. when citigroup had great revenue growth, where was the stock? over $500. now that citi has modern growth, that's more acceptable you're getting it done with the three c's. cost, credit, and capital return that's a formula that works. and that's, you know, you're not going to have great revenue growth and that's okay >> but what's the broad sentiment difference, mike, today compared to friday
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>> it's simply the expectations got a little too high after friday and today you saw that, you know, goldman sachs revenues fell a little bit short. that put a little negative sentiment on the group today the backlog for goldman sax going into next quarter is a little bit lower so it's a little bit more of a wait and see now, the ipo backlog should be good maybe it will take a little bit longer than people thought friday. >> is jpmorgan in a league of its own, or are there other implications for the banks that haven't reported like bank of america? >> i think there's always going to be some correlation between the banks. but to mike's point, we did see little bit of a letdown from goldman sachs. the market got ahead of itself on friday. but i think for goldman maybe specifically, you know, they really need to -- they need to resolve the 1 mdb issue. and they need to move the
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narrative to some of that in. people want to see growth. and they want to see, you know, where each firm is differentiating. we are excited about goldman. they need to talk about wealth management, talk about the cash management businesses. we maybe didn't get enough about that today i think that's also where some of the softness is but we are excited about where they're going. and so it's just a matter of timing in our opinion. >> mike, both of the two that reported today, fairly cheap compared to their historical own performance and the rest of the group. which is your top pick >> citigroup is our number one pick citigroup today with the first quarter results had the highest return on tangible equity in over a decade. so in a way it's like tiger woods. the best results in over a decade not the, you know, as many green jackets to say the least but it's the best results in over a decade.
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the stock's trading a little over tangible book value but what's underappreciate sd that citigroup reiterated financial targets for next year that implies that consensus should be 15% higher so not only do they not cut guidance, they reiterated guidance that's above expectations. so tomorrow i'm going to the annual shareholder meeting -- >> because you're a shareholder. >> i am. here's my share stock. we're going old school here. with the physical share of stock. okay >> which costs you more than buying the share itself. >> it did. to get the certificate cost me more than buying the stock itself but i'm going to ask the new chairman of citigroup, do you agree with management of citi that they should exceed their financial targets for this year and next year? because the street doesn't think so if the chairman thinks so and they don't get those targets, then the pressure only gets greater on ceo >> devin, quickly, what's your topic? >> we like morgan stanley.
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the stock is trading under forward estimate but i think really we're going to start to the see wealth management business grow quite a bit in 2019 and beyond that to me, if you don't think there's growth here, then maybe ten times is appropriate but we do think we're going to see quite a bit of growth on what they have in wealth management we also see quite a bit of room for operating margin as well i think the bar sufficiently low heading into results on wednesday. we'll see there. but we really like that stock here and i would also say i'm getting a little bit warmer on goldman sachs. i do want to see more detail on longer term growth initiatives. >> we'll leave it there. devin and mike turning to boeing. two major airlines cancel more max 8 flights into the summer. phil lebeau is in chicago with the details. hi, phil >> the latest news on the 737 max comes to us from united airlines which as expected has joined southwest and american in
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delaying plans to add the max back to its fleet of -- or scheduled flights. they were scheduled to begin flying again if approved by the faa at the end of may. now they're saying it's not going to happen at least through early july so when you look at this from the perspective of united, from boeing, and from the other airlines, the question becomes, what's it going to take to get this plane back in the air and will people fly it again to which the president weighed in and the president on twitter this morning saying basically i would rebrand the plane saying, what do i know about branding? maybe nothing. but i did become president but if imp boeing, i would fix the boeing 737 max, add additional great features, and rebrand the plane with a new name no product has suffered like this one but again, what the hell do i know what he may not know is you can't just rebrand a plane you got to go through a whole certification process again. that's not going to happen they need to get this plane back in the air as quickly as
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possible for the airlines. especially the three u.s. carriers canceling these flights. southwest has the most then american and united. then will people be ready to fly again? jamie baker from jpmorgan has thoughts about whether or not there will be a stigma attached with these planes once back in the air. >> we do think as a result of the social media influence, passengers that normally would be blissfully unaware to the equipment they're flying on will prove somewhat averse to embracing the max. we think that that probably slows the market re-embrace of that aircraft by potentially a few months >> as you take a look at shares of southwest and american, we should point out that jamie also mentions that eventually you will see not as much chatter about the max and whether or not it's safe to fly on historically after civil aviation accidents like this, guys, jamie baker
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points out that people eventually db they're not focused on that plane and whether or not it's safe once the track record has been established and is no longer grounded and it's proven to be safe to fly. if that's the case, then people eventually -- it fades from their memory >> looks like, phil, boeing reports earnings next week april 24th >> yep. >> so is it baked in are we expecting a guidance cut due to the -- >> oh, there will be a guidance cut. sure there will be a guidance cut look this is the cash cow for the company. this is where the cash flow generally most of it comes from on the commercial side of the business and because they have already seen a cash hit for the first quarter which is what we'll see with their numbers, they'll see a huge one in the second quarter, likely the third as well they're definitely going to be bringing down guidance >> all right, phil lebeau, thank you. we are also following at this hour the latest onthe fir at paris' notre dame cathedral let's get to sue herera.
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>> the fire is still uncontrolled and it has now spread to one of the cathedral's two historic towers that contain those very famous bells the spire of the cathedral collapsed a short wile ago we now know that there are 400 firefighters currently working at the cathedral it has spread to one of those rectangular towers french president macron basically tweeting just a short while ago as you look at that footage earlier of the spire actually falling and authorities believe that that is what triggered -- that falling spire triggered the collapse of part of the church's ceiling. this is what emmanuel macron tweeted a short time ago this is an english translation notre dame of paris is in flames it's emotional for the whole nation my thoughts are with all catholics and all french citizens like our come patriots, i am sad
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tonight to see this part of us burn as you know, construction on the cathedral started in about 1163. it is the most visited landmark in paris this is what is considered to be a high season for notre dame because we are going into easter week we are coming up on good friday this friday. and so it is a very busy time for that particular part of paris. they have evacuated the island that that cathedral is located on but we have seen from other footage that people are standing on the bridges that surround that island. thousands of people. they're just staring kind of in shock. not a lot of conversation apparently going on amongst people they simply cannot believe what they are seeing at this point. so as we are at about 9:00 in paris, as you can see the fire is still burning it has spread to one of the towers they are working now on evacuating as much of the
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artwork that is in the cathedral as possible. we understand there are firefighters outside the cathedral, but as you see, the flames are still very, very active and they have sent some very brave firefighters inside to try and get as much of the artwork out as possible. so the fire is going to continue to burn for some hours now that is the estimation president trump is on the road as you know and he has made some comments here's some of what the president had to say >> it's a truly great cathedral. and i've been there and i've seen it and there's no cathedral -- i think i could say there's probably no cathedral in the world like it. it's a terrible scene. they think it was caused by at this moment they don't know, but they think it was caused by renovation and i hope that's the reason renovation, you know, what's that all about but it's a terrible sight to behold
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>> we now understand that french president macron is meeting with police officials a church spokesman, not one of the police authorities, but a church spokesman is quoted on reuters as saying that the church will be completely destroyed because the wood on the inside has burned. we did get a number of emails from viewers who said they never got a chance to see the cathedral, so our breaking news producer was just there a short time ago so we thought we would bring you a look at what the inside of that cathedral looked like it's beautiful, of course. it's known for its flying buttresses but there's a shot of the inside of the cathedral for those of you who did not get to see it and there is the spire which is no more. back to you. we'll have more on it as it develops we expect some comments from authorities shortly. >> sue, thank you. as we know, notre dame's survived a lot in the past it's been through big restorations in the past one fears what will be left to restore this time around
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but nonetheless, thanks for the update i'm sure we'll have another one in the next hour of the show still to come here on "closing bell," netflix reports results tomorrow a bull and a bear debate what to do with the stock as the streaming landscape gets more crowded. but first, i sat down exclusively with the bank of japan governor rks can kuroda do you see this as a potential risk factor if our administration pursues the path of tariffs or tariff threats you will hear his answer plus the one thing he says is the biggest risk he sees for the global economy right now that's after the break
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ecb president mario draghi sounding the alarm as president trump doubles down on his criticism of the fed steve liesman has the details including a response in sort of terms. >> yeah. in the way the fed does respond. chicago fed president charles evans in this exclusive interview saying there isn't much the fed can do in the face of the president's criticism but explain itself stick to maximum employment and stable inflation
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>> peeople are going to criticiz us as long as we can explain the data relative to what we're supposed to be doing, we have to accept criticism if you're in this and don't have a thick skin, you have to consider how to grow a thicker skin >> president trump over the weekend said if the fed had done its job properly which it has not, the stock market would have been up 5,000 to 10,000 additional points and gdp would be well over 4% instead of 3% with almost no inflation quantitative tightening was a killer should have done the act opposite over the weekend mario draghi also weighing in on the fed -- on the criticism of the fed saying it concerned him it would undermine the fed's independence evans also said he thinks the fed should be on hold with rates through 2020 sees growth this year around trend of 1.75% to 2% >> so what's your best guess talking to all these fed presidents on when the next move
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is going to be >> you know, i think right now if the data stays the way the data are right now, i would suspect not this year. i think if we're going to do trend growth with how much inflation the fed is probably where it needs to be if we get a tick up in inflation that seems like it's sustained, it's possibly due to another quarter point. i do think the bar is high for cutting, sara. i think the market may have earlier this year. if you look at fed funds futures. they're now down quite a bit in fact, it's down 43% i think was the highest. i think that's for december. >> yeah. but higher than 15% next year. steve, thank you trade is also certainly top of mind for global policy makers and investors. i sat down exclusively with the bank of japan governor this weekend for his thoughts on the
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economic impact so far of the u.s./china trade fight >> i think already because of this uncertainty, investment has been affected. if this conflict is solved soon. also for the u.s. company. outside the central banking? >> it's affecting the outlook. actually, japan is going to start trade talks with the u.s. next week. do you see this as a potential risk factor if your administration pursues the path of tariff or tariff threats? >> personally i don't think so but of course this is up to
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trade negotiators. >> have you looked at a scenario what would that do to the japanese economy >> all right most of this. i really don't think it's necessary. for the u.s. to impose japanese car. many of them may be components within the u.s. trade deficit, 20 years ago, large part of the
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u.s. trade deficit was with japan. now it's quite small >> $60 billion the president still wants to eliminate it is that possible >> i'm not quite sure. because trade is not very important -- going to indicator. global quite important but it should be global multilateral and not only trade balance but income account balance and so on and so forth >> so when you look globally, risk assets have performed very well in 2019 it's been risk on. that's helped the dollar/yen, it's helped a lot in terms of the economic outlook as well
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do you expect that kind of environment to continue? according to the outlook released by the imf, they also think this year will go. because last year growth rate was global economy but this year they expect 3.3% but next year it would go to 3.6% this is the main scenario. and this is the most equity. if this is realized, i don't think there would be any financial market or anything like that.
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a lot of downside risks. >> what's the biggest risk to the global economy >> at this stage, i must say that trade protection. there are some sort of protections. i think most serious risk involved in the global economy but like i said, i hope u.s./china trade conflict would be resolved soon by the way, imf looking at main scenario
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that's assumed conflict would not be -- if it was and becomes -- >> different outlook >> also during the discussions here in washington, d.c., i sense sensed somehow chinese economy is likely to recover in second half partly because of huge fiscal stimulus measures the government has already decided. and some of them already implemented. >> the bank of japan governor ending there on an optimistic note saying he buys into the green chutes they're seeing in china right now. i think the biggest takeaway for investors was it was a good window into the mind of a central banker as to how trade is affecting the outlook and for an economy like japan,
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it has weighed the exports to china has hurt the entire sort of production line of the economy. and erased some of the progress they've made in japan in returning the economy toward growth and ticking that inflation rate higher. >> and the other takeaways from that and the earlier chunk in the full interview which is on cnbc.com is trade fears obviously exist. but in terms of that trade war aspect, he was kind of relaxed about it he was bringing it up as the biggest fear out there, but he kind of implied it doesn't actually going to escalate that much more. basically he admitted that weakens one of the yen was the intentions of the super loose policy which publicly and officially is never quite admitted >> then he corrected the overvaluation. >> and the also said -- i don't know whether you believe this but he also said if there's more
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that's needed we've got the tools to do it >> absolutely. >> i'm not sure it would have as much of an effect as hoped, but they would maintain that >> more tools in that tool box check out the whole interview on cnbc.com we've got about 30 minutes to go here before the closing bell dow's down 33 points it's getting weighed lower by goldman sachs. s&p is down not even a tenth of a percent. it's pretty much flat. after the break, a historic c suite change at best buy the shakeup next this is loma linda,
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best buy announcing a leadership change elevating its current cfo to become the first female ceo inthe company's history. courtney reagan is back at headquarters with more on the moves. >> so on a media conference call, incoming ceo corey berry said one word she used is continuity she has been with best buy for 20 years the chief strategic transformation over. berry becomes best buy's fifth ceo but the first female ce o rks. she'll also join the board notably becoming the seventh woman with six men as the transition to executive chairman goes on. barry is along with the outgoing ceo of that growth plan best buy
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2020 and barry is already leading best buy's efforts as well as health strategy. and she's played a key role in that great call. barry takes over from a ceo that pulled off threwry one of the best retail turnarounds ever best buy was transformed to growth shares quadrupled more than 700% in his seven-year tenure over to you. >> courtney, some amazing returns there. thank you very much for that now time for a news update with sue herera. >> an update on that blaze consuming notre dame cathedral the spire of the cathedral collapsed in flames earlier and a church spokesman now says the entire wooden interior is burning and it is likely to be
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destroyed. a massive fire engulfed the roof this morning as parisians watched in horror. the cause of the blaze isn't yet known but the spire was undergoing renovation. north koreans marking the 107th anniversary of the birth of kim il-son. the man suspected of throwing a 5-year-old boy off a third floor balcony at the mall of america told police he went to the mall looking for someone to kill. emmanuel aranda was charged with attempted premeditated first degree murder in that attack the child is fighting for his life and former south carolina senator fritz hollings is laying in state he served as a senator from 1966 to 2004. he was 97 years old when the died earlier this month. you are up to date
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that's the news update this hour guys, i will send it back downtown to you. >> sue, thank you. up next, panera for breakfast? blaine hurst joins us to tell us why his company is making a deeper push. "closing bell" will be right back these are the building blocks enduring relationships are built on. as investment management professionals, let's measure up. cfa institute. through the at&t network,
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panera bread announcing a new strategy today as it looks to compete with mcdonald's and dunkin' brands will it be enough to win over the breakfast wars joining us is is blaine hurst, president and ceo of panera bread. i feel like the breakfast wars have been fought by the big guys for years. why now are you making the move? >> well, we have obviously -- we've been in the breakfast business in a significant way since our introduction of breakfast sandwiches nearly ten years ago. what we've been doing is try to make sure that we understood how to bring a better breakfast to our consumers. we have been focused on an
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overall great breakfast with great food, a great experience, and food that's good for you so we're really excited about how it's all come together >> blaine, i'm a little confused as to what's really ground breaking and new in this strategy healthy food at an affordable price. more effort on breakfast we see all of that elsewhere, don't we >> without question. there's nothing new under the sun of breakfast, if you will. i think the difference is we took a look at the holistic experience of the guest. we didn't simply say let's roll out new coffee which we have done we didn't just say let's introduce a breakfast wrap we said how do we make that wrap even better than the wraps out there? how do we get the right flavors? we didn't just say let's do better breakfast pastries, but how do we make that cravable item you're willing to walk
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across the street to come to panera then through the digital activation, we said how do we actually introduce that in a way through our digital platforms that make that even easier to use. today panera is one of the most digitally enabled restaurant brands out there with nearly 36% of our business coming through our digital channels we said we can do a better job than what's been done in the marketplace. so we're not reinventing breakfast in that kind of sense. we are reinventing the holistic brand for our customers. >> mcdonald's went to all-day breakfast a few years ago. turned out to be a big success who do you see as your biggest competitor >> well, i think when it comes to breakfast, there is the big players like mcdonald's. but there's also a lot of small and emerging players around breakfast that clearly are after the share that the big players have had that's why all players have had to respond i think for us, we view ourselves probably less in
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competition with the major players and much more in competition with the smaller emerging players which frankly compete on a local market level. not at a national level. >> so blaine, give us an update broader on the business, if you would. it's harder to track under j.a.b. ownership what's going on with what you're seeing >> i think overall we're seeing very solid performance out of all of our -- across all of our business what we are seeing, we did see a little softness from the weather which we are a little below expectations but still very positive and solid growth rates like we've seen for a long time. i also think that the large delivery aggregators while we've seen very limit impact in the early years around our delivery lodge, we're seeing them appear in a significant way >> thanks for joining us we appreciate it
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>> i appreciate it thanks >> thanks, blaine. >> makes me hungry having an interview like that in the middle of the show that's my only complaint to blaine. >> nothing like a bread bowl in the afternoon. >> you're a big fan of panera. zblifs in my day coming up, netflix shares up we'll tell you what to preview before the earnings report and tiger woods claiming his fifth masters victory this weekend. how his win is also a win for nike "closing bell" will be right back
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welcome back 15 minutes left of trade let's check in on some individual market movers the service will be made available for its alexa voice assistant. shares of spotify unsurprisingly hit by this news down 4% we talked recently about the fact that apple music
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subscription services has overtaken spotify's service. this would be the big rival from one of the major players that's why you're seeing that difference >> right amazon about to enter any space. >> i'm watching nike on the heels of tiger woods' fifth masters victory this weekend the retailer gaining $22 million in ad exposure due to tiger's win. that's according to apex marketing. nike is trading up today not sure if this is a tiger effect or not but this is material for nike's business he's one of the most important athletes they have not because golf is a huge business in nike sales it's less than a billion dollars. but because he is one of the most marketable and recognizable athlet athletes also nike stuck with him during
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the scandal period when a lot of other sponsors, gillette, at&t all bailed on tiger woods. >> and you've got to say credit to nike on that. and that's paid off. i would have loved to have been a fly on the wall on the management decision making at that point to weigh out to decide to keep him. frankly, with all of their decisions from colin kaepernick to this. but on this one they've got it right. i think this estimate that people have come out -- whoever came up with it, that this is worth $20 million has got to be way short of it. every single person whether you like golf or not has been tweeting that image of him >> with the red turtle neck. yeah >> the nike advert itself must have been retweeted hundreds of times. >> very emotional ad that they sort of had ready to go. >> the whole thing was emotional as well. particularly with his kids there. it was pretty epic, pretty exciting golf not my favorite sport but you had to watch. >> it was rivet. >> and congrats to him congrats to nike, i guess. all right. a little under 15 minutes to go
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here before the closing bell the nike gain isn't offsetting the decline gi goldman sachs and other components dow down 32 points s&p 500 pretty much flat the russell is underperforming up next, doubleline's deputy cio tells us what he likes in the market back in a couple [leaf blower] you should be mad at leaf blowers. [beep] you should be mad your neighbor always wants to hang out. and you should be mad your smart fridge is unnecessarily complicated. but you're not mad,
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♪ welcome back ten minutes left of trade in today's session. joining our exchange dave sherman and rick santelli. very good afternoon to you both. jeffrey, if i start with you, great run-up year to date in stocks what has driven that most after all and is there still fuel in a that particular tank >> well, the fuel is the questionable part. but i think thus far it's been the -- what people are referring to as the pivot from the fed and essentially mr. powell from about four months ago signaling
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that we had automatic pilot for the quantitative tightening program. we're going to continue to raise rates, everything was great. to the big pivot not only at the beginning of january, the january fed meeting. and then going more dovish when it came to the march meeting where not only did he signal the rates will stay on hold the rest of the year, but also unwinding the balance sheet will cease to continue so ultimately it's the fed that's been in play here which has not just benefitted the stock market but risk assets in general across the u.s. market >> the 10-year yield in the 2.50s. where's the opportunity right now? >> well, it's tough. because essentially you are where you were roughly as we went to the fourth quarter there was a self-inflicted wound by the fed just ignoring some of the signs coming from the
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weakness in the global market. and so you have to step back and ask yourself, do you feel better about the economy today and where we are in the cycle than you did roughly 6.5 months ago as you mentioned, stocks are near their highs they're at a new high. but what you had that's different is essentially 10-year yields are roughly 50 to 60 basis points lower than they were as we went to the fourth quarter last year. the only thing that's changed outside of the volatility is yields are slightly lower. as we look across the board, one of the more attractive areas happens to be emerging market debt and a lot of the troubles and tribulations that get attributed to emerging market space are the strength of the dollar which the dollar's been extremely range bound this year. and really just can't break this new high levels. it's roughly about a half percent or 75 basis points off the highs. we think that's still an accretive area to be
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both in the investment grade as well as the below investment grade parts of the market. >> jeffrey talking about there whether you feel more comfortable with the u.s. economic outlook compared to six months ago what about shorter term? do you feel more comfortable with it compared to a month ago since strong manufacturing data this morning, for example? >> well, the data, at least -- >> sorry, that was to rick apologies. go for it. >> sorry >> you know, i don't think that our manufacturing or our economy is looking as good as it did mid-last year. however, i think it looks much better than many anticipated after the deleveraging that we witnessed in october and november and i think that particular deleveraging derisking is just a product of being fully margined markets which is the way it is nowadays in the world of machines and i think that was misdiagnosis certainly the globe is slowing a bit. but i still think if we look towards the markets, the data
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has gotten better. even empire's read today is the best of 2019 is it as good as it was? no we had 11.5 by the end of last year but the point is when asked, jeffrey talked about interest rate why are they low i'll give you one really compelling reason. because our 10-year is 200 basis points higher than the european 10-year. and it's very hard to equate what we see in the sovereign treasury space considering all the strangeness going on there through policy over the last decade and then try to combine that and get some really intelligent picture of equities. the simplest way to do it is we are idling close to all-time highs. we are waiting for an event and that is most likely trade. what's the best position to have well, the best position to have last year was to buy it when nobody wanted to buy it. we're idling i think idling isn't too bad right now. >> so jeffrey, question on those
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record -- near record high stocks your boss the other jeffrey has said a few times that we're in a bear market. and he had characterized this bounce in 2019 as a reaction to what we saw at the end of 2018 the worst december since the great depression are you still thinking we're in a bear market and would you be a seller of this market? >> well, you got to go back to the definition of a bear market which is somewhat arbitrary. we tend to agree it's a 20% selloff from the most recent high and usually when you go down like that, what you have to do is set a new high to get out of that bear market thus we still characterize as a bear market rally. i've got to pose the question, what has changed over the last six and a half months since we set that last high the economic data has slowed the only really positive attribute we could find is maybe people got too pessimistic a enyou have to see a rebound. we think that if absent sof
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catalyst as rick had mentioned, you need something to drive that says we've been waiting for trade over a year now. we like to use this as a headline to say trade can bail us out of here but effectively i think trade is priced in. a lot of good news is priced in. the question is what can actually take us higher? and we're really struggling to find it at this point. yeah we think at these levels, you know, we're definitely not an agate or adding to positions and probably if you didn't like the feeling you felt during the third quarter, you should be a seller at this level >> jeffrey and rick, we've got ur minutes left of trade and we'll have the close when we come back. ♪ feel that? that's the beat of global markets, the rhythm of the world. but to us, it's the pace of tomorrow. with ingenuity, technologies, and markets expertise we create the possible. and when you do that, you don't chase
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don't get mad. get e*trade, dawg. welcome back to "the closing bell." we've got a minute left of trade. start with the banks stocks. a little surprised at the extent and broadness of the selloff today. friday investors willing to look at the positives today eps beats looking a t the negatives. tomorrow bank of america, wednesday morgan stanley still to come. what does that mean for the main indices? the dow down 0. 1% all the indices down about there. the bottom of that as i bring in bob pisani. >> united health nice to see a bit of a
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bounceback down 10% last week all the hmo stocks, on medicare for all concerns i thought it was overblown ibm tomorrow remember, two-thirds of ibm services and that's what we want to hear about. how the service business is doing. >> bob pisani, thank you very much at the close, we are down just 30 points on the dow the low of the session was 96. s&p and nasdaq all down about 0.1% russell a little bit worse that does it for the first half of "closing bell." sara, back to you. welcome to "the closing bell." i'm sara eisen wilfred frost rejoining me in a moment take a look how we finished the day on wall street the dow ending lower nothing major. down about 30 points goldman sachs didn't help. boeing also did not help the s&p 500 ending just about flat clinging to the 2900 level. we hit that on friday.
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2905 was the close consumer groups did well though financials were the hardest hit groups after earnings from goldman sachs and citi the nasdaq composite down 0.1% and the russell down a third of 1% we're near the record highs for the s&p 500. about a percent or so away here are the stories on our radar. federal reserve's charlie evans says the rate could stay unchanges into fall of 2020. bank earnings from goldman sachs. and lyft shares falling. we'll hit all of that. but first let's talk about the market sarat sethi is here. ali mccartney also back welcome to both of you important that the s&p held that 2900 level we reached it on friday for the
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first time in six months >> yeah, look. so friday was a great story out of china then you had the first set of earnings and you had some feedback around financials finally getting a pickup from rate movements that was a big day took us up then today we have the other side where we have some more earnings come out and they don't sound as positive. and you see the banks weighing heavily. then we have in the next three weeks about 80% of the s&p will report and we will see from that how people are feeling about the future i think the comments this morning from the -- that we heard from the fed are, you know, that makes a lot of sense. and i think a lot of what you're seeing in the market is this real comfort level that the fed is staying put. >> but have we seen already the central bank inspired part of this rally do we now need to see more >> i think so. we've had a lot of progress on trade at least with china. there's some rumblings about
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what we're going to be seeing and what sort of head winds we're going to face with japan and with the european union. but i think absolutely, right? we are 16% up for the year as you said, we're near all-time highs. even with the goldilocks scenario, we're looking at 11th year of the bull market. we just came out, actually, and said we think 2020 earnings could be up 7% so that's even surpassing this year which we think will be about 3% in growth so, yeah the fed's, i think, very supportive that's a tail wind to this but we need to see recovery on a lot of fronts for sure >> how do you expect earnings to go and do you see it as a catalyst to take this market higher after a pretty stunning rally? >> i think expectations are so low compared to what we have in december if we were sitting here in december, expectations would have been much higher. but the street's brought such a
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beat down, now you can kitchen sink this. i think that's where we're going to see if companies can say, look through this trade talk and say we're going to get growth and industrials and cyclicals. i think that's where you're going to see earnings growth and i don't think you're going to really see much benefit from the fed. multiple expansion is really done at this point it's going ton earnings growth that lets us go to the market. if you get future earnings growth, i think that's going to drive the market but along the way, 16%'s been a very quick ride since december so anything that misses today you can see the stock's pulling back and money moving into sectors that are going to have higher growth. when you have low interest rates, growth stocks are going to do much better. >> you're saying the fed is the big catalyst chicago fed president charles evans appears on cnbc today saying he could see rates staying on hold for awhile >> i had, you know, as recently
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as september and december think that a couple of rate hikes were in our future. because inflation is a little bit lighter. the economy's doing fine i think i said last couple of weeks ago that i can see the funds rate being flat and unchanged into the fall of 2020. for me, that's to help support the inflation outlook and make sure that it's sustainable or a little bit above. that would be fine too >> fall of 2020, that doesn't even sound data dependent. thought they were going data by data >> it's kind of interesting. they went from we're not going to tell you anything to now we're just going to tell you exactly. so if they veer off course, i don't think the market's going to like it either way. they raise rates, that's going to pull back they cut rates, that means the economy's much weaker. >> are you surprised to see the ongoing pressure from the president on this topic? given the big pivot that we have seen already
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do you think there's something brewing under the surface or it's more hyperbole? >> we've talked about the unorthodoxy of this administration you've even had macron come in today saying the precedent setting nature of a relationship like that between the federal reserve and the administration would be a concern the thing i don't understand with this market is given all of these things and all of these risks, apart from the specific nature of whether the fed is going to tighten or not is why is the 20-day realize at 11. why today did we spike up to 13 given we're near a high, given we have 16% for the year given there's conversations still about the earnings recession. so i think there are a lot of things out there that are conce concerning and the fed speaker today highlighted a few of those in terms of what they were looking at and what the concerns were. and those concerns don't seem to
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me to be priced in the market. >> you're saying it's too calm out there? >> i think it's too calm that's helping with the ipo market it's helping with a lot of things but we've had these huge pendulum swings in sentiment change between december and now. and, you know, i think the fed in their conversation today, right? i think december sort of freaked everybody out. >> sarat, just quickly to round off the fed debate, ifthe president did get what he wanted and got more of a cut even if the data doesn't change, does that give a further leg up in the market he spoke about 5,000 points. the dow is at 26,000 or have we had that run already? >> i think we've had that run. if you cut rates now, you're signaling to the future that things are weaker in 2020 and '21. that would make a lot of movement in the market towards areas that would be very defensive. i don't think you're going to get that market growth from there. you'll actually get a pullback and people sitting more on the cash and much more volatility.
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>> we're getting earnings hitting the tape jb hunt. seema mody tracking that for us. >> a big miss on the bottom line $1.09 versus estimate of $1.26 revenue in lower than expected the company referring to a number of challenges including increased purchase transportation costs, network utilization, lower productivity in the winter weather affecting regions. higher driver and non-driver salaries, wages and benefits just speaking of weather, the analyst community was worried a harsh weather season would cause higher shipping costs. you are seeing shares down about 4% what's interesting is the e-commerce industry and more consumers buying items online has been one of the factors that has helped the trucking industry for the past year. the company reporting worse than expected numbers today the stock down 4%. back to you. >> thanks very much for that
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mixed earnings from citi and goldman sachs. also saw worse than expected revenue with citi's overall revenue 2% year over year. citi ending the day flat goldman down about 4%. sarat, this did weigh on all of the banks today in a way that if you put wells fargo side on friday, all of the banks lifted. so what was the general difference and sentiment today versus friday? >> i think when jamie dimon spoke, he was pretty optimistic about the future and a company that's growing revenue today's companies, the revenue growth wasn't really there. it was all about cost cutting and efficiency i don't think the market's looking for that the market is looking for companies that can grow in an interest rate environment that's pretty flat. you need areas that could grow and today did not inspire confidence in the two banks reported that you're going get any earnings growth given it's a cross cutting story. >> i guess it also showed the general sentiment towards banks.
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they had a one-day jump. and citi is still up over two days how do you think of this for the year ahead is it a yield curve play or can it be earnings related play? >> i think it can be both. we -- the overweight, we have to financials other than technology is the largest overweight. it has to do with the fundamentals of the business and the part we are in the economic cycle. but also the fact that the -- it is at a ten-year relative valuation low in terms of trading. so i think there can be a lot of expansion going forward and to sarat's point, i think it's not all cost cutting and hiring freezes which a lot of us know we are in right now. we're looking for true expansion and this revenue and ip market to continue. for the m&a market to continue we've seen a ton of that just today all the m&a you have
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commented on >> the other point we haven't made yet, the story on friday was for the retail part of the banks that jpmorgan were saying despite the macro and yield curve, the core part of our business was fine for the year ahead. but that was the message from them today's banks don't really play into that as much. we could see tomorrow that positive theme come out again. we have to wait and see. but the smaller part of the pie. goldman sachs was never going to play into that oh, the yield curve is in fact less of a negative hit to us >> sarat, you had some positions. was your bouquet shaken at all >> no. we had a pretty big position bank of america's important. to your point wealth management is going to be interesting because that's going to be a big part of these companies going
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forward. and i think they have restructured a lot of these banks to the part of the business they can grow and get a higher multiple on with more sustainable earnings so that is going to be important to see for these companies going forward. >> we have meantime news on boeing breaking moments ago. phil lebeau has it. >> these were strong comments we're just getting from the cofounder of lion air. where he essentially lashed out at boeing. lashing out at dennis muilenburg for the comments he made regarding the lion crash late last year and then the crash from ethiopian airlines 737 max 8 planes we're not going to get into all of his comments, but one that stands out from an nterview he gave this afternoon, he says that they meaning boeing looked down on my airline and my country even though relations are always handled in a proper way. they treat us as if we are third world. that's what i believe the end of
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that statement is supposed to say. this is important because as boeing works to reassure customers and to make sure that its customrelations are as soli possible following the grounding and getting it back in the air, lion air is a big customer you have to wonder whether or not all of the planes and i think they still have 187 on order with boeing. if they stick with those orders, there have been some talk about canceling those orders back to you. >> thanks for that some strong words there from the lion air cofounder we'll see if there's any further repercussions and get a full translation as well as comments from those interview lyft, closing lower around 6% hitting its lowest level after the company announced it was recalling thousands of electric bikes in its bike share program because of brake issues. will pull about 3,000 bikes from the streets of new york, washington, and san francisco. and comes after a brutal week
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for lyft stock it's down some further 6% today. and sarat, the most recent shop selloff was triggered when uber published all of its numbers this doesn't help today. do you think the selloff since the uber numbers is because uber's numbers look so attractive by comparison or uber was also having to spend so much cash its own numbers weren't as attractive as people first thought? >> i think it's definitely the latter i think if you look at these companies and you say, are they going to make money in the future it's going to take a long time so some of the halo effect of getting an ipo is coming off then as you look down the road, you've got a few others. there's only that much capital can go into these ipos you're going to get the ones that weigh in right now. the market is telling you lyft is not going to be the winner right now. >> is it telling you anything about the setup? it's been on a post-ipo slide. >> i think it's a little bit too
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dwreerl tell in terms of the whole scope of the ipos that are waiting. but this is a really momentous time in terms of the numbers right? there are a hundred companies that are unicorns. that have basically signals or filed for an ipo this year you have this sort of perfect scenario of low contained vol. you have an increasing equity market and you have relatively supportive monetary policy around so the question is what does this mean? i think it's a little problematicin that we are stuc in a place we need business and consumer sentiment to continue both anecdotally and technically to be really robust going forward. if these other 99 are going to come but i think in terms of -- look. the average ipo is up 20% on the first day. five to six years later, 25% of them have returned no value. this is where we are as a
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company a lot of guests have said no one knows what five years away lyft looks like i think for a lot of these companies, you know, you're investing in the management. you're investing in the story. and you're investing in the headway they've made staying private and in the private capital markets so long. i think one out of a hundred potential ipos, it's hard to say. >> we will leave it there. thank you for joining us today the only other thing on the ipos, goldman very optimistic about that they got delayed into q1 whether or not that's sustainable fif for five or six quarters to come remains to be seen >> are they benefitting more than others? >> i think all of the banks will benefit as they did in m&a in q1 i think ipos in q2 will be strong but they did tease there are a lot of front runners including uber which they're also an investor in. again, whether that's sustainable or not, we'll see. >> anyway, we are also following the latest for you on that
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massive fire at paris' notre dame cathedral sue herera has got the latest. >> i do, indeed. thank you. it is just after 10:00 p.m. paris time and the fire continues to burn uncontrolled the french interior ministry just came out with a statement saying, firefighters might not be able to save the cathedral. also, firefighters at the scene say notre dame cathedral right now the efforts are being directed at saving the artwork at the back of the cathedral that actually is a shot of the cathedral but from very far away so you can't really see the flames on that but another firefighter at the scene says all efforts are also being aimed at preventing a collapse of the northern tower there are two towers the northern tower is on fire. but they are going to try and prevent its collapse so it is a dire situation at an iconic building. and one of, of course, the most
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visited sites in france. and it does not look at this point according to the interior ministry that they will be able to save it wilf, sara, back to you. >> sue, very sad as you said dates back to the 12th century astonishing what it's managed to survive. we hope they're wrong and that something is restored. thank you. up next, netflix on deck streaming giant gearing up to report tomorrow. what every investor needs to watch. later, american eagle on retail weighing in on the state of the sector, trends, and biggest stock driver all that come up on "closing bell."
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netflix is set to report its first quarter earnings quarterly earnings after the bell tomorrow. since we've heard from disney's announcement it's up 30% so far this year let's discuss further a couple of guests joining us added focus this quarter following the disney announcement >> oh, i think so. people are going to focus on the subnumbers as they do each quarter.
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and then 7.3 million internation internationally. the focus will be on the guide whether they feel the need to temper down subgrowth outlook because of the loom iing entrane >> i mean, this should be a good debate you're at $480 on netflix stock. michael, i think you're at $165 price target why are you not as optimistic as mark >> you know, i mean, i'm crazy and old fashioned. i value this company based on free cash flow and they haven't generated free cash flow since 2011 they're burning $3 billion this year to get to my price target, they have to be positive by about $5 billion. a turnaround from negative three to positive five i have that taking about another seven or eight years, maybe ten. and my crystal ball just doesn't
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go out that far. i'm being conservative, but i just can't justifying a valuation at $400. >> clearly that strategy hasn't been the right strategy in most recent years in the stock regardless as it has soared do you think the launch of disney service can start to change the way investors think about the stock more in line with what you're saying than perhaps what the bulls are saying >> i do i've been wrong for several years. the reason i've been wrong is i expected this six years ago. i thought that disney and fox and time warner and universal would figure out that netflix is eating their lunch and i really think it's not as much competition as it is that netflix is about to lose a ton of content imagine you heard nike and
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adidas and under armour were going pull theirs and all that was left for foot locker was brooks who would shop there netflix has original, so yeah you could have a foot locker brand sneaker and tell consumers it's just as good as nikes but they aren't going to believe that so i don't think it's competition as much of loss of content. they're about to lose about 40% of their viewing hours that content's being pulled from the service as we speak. it's going to be gone in about a year >> mark, maybe you could respond to that. the new competitive threats and also try to justify the price target >> yeah. so this is a company that's gap profitable they're on track to do about $25 in gap earnings. we think the market therefore would be willing to go to $750 we think the stock can still double here. michael is correct this company is not generating positive free cash flow.
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but i don't think that's structural i think that's elective on the company's part competition from disney, there are four major launches this year at&t, disney, apple, and comcast. there's only one that could get a lot of subscribers i think the disney numbers were realistic. our guess, however, is when disney gets to that level, netflix will be well over $300 million. because the level proposition is enticing the price points are $2 more but you'll get four times as much content in terms of the amount of dollars these companies are spending four times more on netflix than on disney. netflix is spending $15 billion a year cash out the door on content. disney is talking about getting up to $4 billion in is few years. i think it's a scale business. whoever has the most subs generates the most revenue can afford more content. netflix is in the winner's position for now i don't think that changes. >> gents, it's a great debate.
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thank you both for much for articulating it for us up next, winter came early last night at least for some "game of thrones" fans why some were able to watch the first episode four hours before it was supposed to be released >> uh-oh huawei's strategic shift the company speaking to cnbc exclusively. inbune w said about potentially dog sissith apple. those comments when "closing bell" comes right back
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gen z wants denim right now. that is the news from american eagle. the company's president joined me after rings the opening bell this morning i asked him about levi's strong performance, the eagle performance and the stock move higher this year and what that says about demand for denim. >> american eagle has the leading women's jeans business in america we're number two overall in jeans. we have the best fit, the best fabric, the best innovation and i think the best value for the customer i think customers are finding jeans where they believe they're getting the best product i think that's at american eagle right now. >> and athleisure is not killing denim? >> no. we're selling both i think we're a bottoms destination as a total company we're seeing strength on all fronts >> i mentioned some of your competitors. bilk changes in retail this year gap is splitting up its brands is this an opportunity for you how does it influence your
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business >> you know, we're always looking to maximize shareholder value. we're not going to comment on market speculation >> that you would spin off aerie. >> yeah. it's a huge growth driver and amazing brand and story. but we have great strength of the brands together. >> why is that versus a victoria's secret that has been under a lot of pressure. >> it's on the real campaign five years ago aerie started showing real women that the real you is beautiful and powerful. >> what's the outlook for consumer spending this year versus where we were last year >> i think the economy is still really healthy you know, we are still bullish on the year. feel good about our prospects coming out feel good about summer, about back to school >> what about mall traffic how do you deal with those declining numbers? >> you know, for us, we lead
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mall traffic and then we do better with our sales than even the traffic. you know, we find i think part of it is the customer has already shopped online they come into a store already having researched and considered what they might purchase they have decided we're a brand of choice then they come to us and we've seen strong sales above the traffic line we're getting. >> what's in for the fall? what is the trend that kids are going to want going back to school >> jeans jeans will definitely be the number one -- >> is that different from any other year >> for us it's always jeans. you know, even a few years ago when jeans were written off, our jeans business was growing we've seen consistent growth for years. and i'm amazed every day at the strength of the business i think we will be throughout the year >> you know, piper jaffray does its teen survey that's widely followed on wall street.
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catering to that sweet spot. and you heard it they want jeans for the fall they speak to them in an authentic way. what he said surprised me. they'll go into stores to shop >> the other thing i like and the same applies at lee vie's. these ceos embrace their brand wearing the denim. they relaxed the view here >> i don't think he got yelled at >> he got away with it time now for a cnbc news update sue herera's got it for us. >> hello here's what's happening at this hour we begin in paris where the massive fire continues to burn into the night officials say the wooden interior is completely engulfed. the french interior minister says firefighters may not be able to save the cathedral the cause sun clear although the
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cathedral was under renovation then envoy for yemen said there has been a initial redeployment of forces from the key city >> they will be the first in this long conflict making this shap not a decision for the parties to take. that it should happen at all is extremely welcome. on the six-year anniversary of the boston marathon bombing, runners laced up for the 123rd edition. for the men it was kenya's lawrence cherono to win by a second degefa of kenya won the women's race apologies if i mispronounced
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anyone's name. that is the update at this hour. >> huge congratulations to them and all the runners the marathon wonderful thing. >> it's quite a feat >> sue, thank you. still ahead, it's apple versus qualcomm. two of the biggest play ners the smartphone industry going head-to-head in court today. we've got details next betting big on tiger the legendary golfer taking home a win at the masters we're breaking down the paimct on the betting markets when "closing bell" comes right back. the nature of a virus is to change. move. mutate.
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welcome back a double dose of chip news this afternoon. huawei says it's, quote, open to selling 5g chips to apple. meanwhile, apple and qualcomm kicking off today. josh lipton is at the site of the trial if with those stories for us >> hey, wilf yeah, that new effort from huawei ceo offering his chips for apple but long-time apple watcher ben baharon tells me he doesn't think that's too likely. among the reasons, swapping out modems can be costly he didn't think tim cook will be
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interested in that he argue there's too much political heat surrounding this company. apple has its hands full with another chip giant apple's fight with qualcomm kicking off today at this san diego courthouse right behind me here apple claims that qualcomm -- it extracts what it calls exorbitant royalties and separately qualcomm owes apple $1 billion more importantly, apple -- licensing for royalty on the price of each phone. apple claiming that isn't fair but the chip maker you see firing right back. countering that apple built its products on the back of qualcomm innovation and is now just trying to pay far less than fair value for that technology. jury selection began today this trial could last until may
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15th back to you. >> josh, was there rate that was paid agreed to two parties in the past >> so it was agreed to, but the argument and we've had tim cook make this case to us is that they believe the rate right now isn't fair because it's allowing qualcomm to profit from innovations it had nothing to do it like the touch id security feature. of course qualcomm is fighting back hard against that saying your products, your company is based on our innovation, our hard work. you'll see these two sides fight about this in court. very important case that investors need to pay attention to for different reasons for apple, it really comes down to how much are they going to make that is more important right now as iphone sales are under pressure you will hear tech analysts say
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it's even more important for qualcomm because it does get to the very heart of their business model which is that bread and butter licensing business, guys >> josh, thank you josh lipton. for more on the fast moving chip sector, we are now joined by ed snyder, managing director at charter equity research. chris, what's at stake here for qualcomm shareholders? >> a lot first of all, there's an ongoing ftc case against qualcomm. if they were to rule qualcomm a monopoly, that would really just turn their entire business on its head and more than half of qualcomm's total business right now is around the royalty they get on every 3g, 4g hand set basically. this would negate that >> chris, are there realistically any alternatives for apple though >> well, so, there is a distinction here between royalties they're getting for
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the ip that they're using. and that is what apple's debating in court today. and then there's the chips that they actually use. so today apple uses intel 4g mow tells. the problem is what happens at 5g and to your point, it's not clear that there's an alternative that they can use outside of qualcomm. qualcomm has the best in class technology that you're going find out there in 5g right now. >> does that mean that beyond wall street, i mean, this case and the way it's settled could have implications for consumers if it's going to effect 5g connectivity >> no. not a chance >> why in. >> the 5g thing is a red herring at this point. i mean, the street's all been abuzz since summer of last year that intel is not going to make it and can't deliver the 5g mow dumb it's a bunch of hooey.
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intel said they're on time our checks say they're on time primarily because the 5g story is way ahead of its scene. the 4g systems we're using now are already much faster than anything you've seen so it's mostly marketing you can use almost anything and nobody will be able to tell the difference tim cook does not need qualcomm. and they've already replaced qualcomm the last two phones, actually the last three phones, they started with intel now they've completely replaced them so, i mean, it's -- the confu confusion on the street about this if there is any, will be wrapped up by the summer when apple or intel announces they've got their first out.
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>> chris, do you agree with that one of your top picks is based on 5g. but base stated opposed to the chips itself >> 5g for the industrial overall whether you're talking about handsets and the increased complexity that will come with 5g in handsets which i do continue to think that apple and even intel are struggling with now. or they spend broad based infrastructure when it comes to 5g that will be ramping at thepd of this year. and that is one of our top picks. based on that opportunity. >> and yao got a few other names in the sector that you like. >> yeah. i think the best bets for the short-term are going to be texas instruments and a small company called cree. whether you believe it's a long-term solution or not.
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they are deploying the systems so the guys that are supplying the equipment for that, the test equipment, the chips that go into there are benefitting now they've got a nice business that's now funneled into the 5g side texas instruments, that's probably the safest bet out there. they're highly diversified if you're looking for something a little less alpha but a lot more security, tiis an excellent bet. >> okay. thanks we'll leave it there. last night more than 17 million people gathered around their tv sets and mobile devices for the season premiere of "game of thrones." that is unless you were a subscriber of at&t the big game glitch on our ra r radar. >> plus tiger woods may have been the winner after the tournament biggest masters losers were not in augusta, georgia, yesterday that story straight ahead.
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decline in torcorporate tax revu this year. and that lower overall corporate tax rate, that reduces their tax burden substantially all the way down to zero in many cases neg ty because they get a refound. >> right and some of those were quite surprising others like amazon haven't paid that much and aren't profitable to that extent >> and a rising deficit. >> exactly the long awaited season eight came out last night with a series record 17.4 -- not a series record. but a full-time record 17.4 million people tuning in on the cable channel, mobile platform, and nbo go and hbo now some lucky subscribers got it
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early. the at&t streaming service released it nearly four hours early. it was supposed to go out 9:00 p.m. eastern and some able to get it at 5:20. i find it amusing for all of at&t's acquisition and new digital strategy that on the biggest show of all time and most hype, they screw it up. >> still didn't affect overall ratings it sounds like. >> no. which is the key this was higher th eer than the season finale. we'll see if it keeps building >> i liked it. >> i haven't seen it yet >> shouldn't have come to work today. >> it was an issue being in headquarters this morning. >> yeah. well, you got to watch it. >> trying to keep my head low not to hear what happened. tiger woods took home $2 million for his masters win yesterday but fanduel had to shell out $1 million up next, a look at the bath tiger gave the bookies coming up on "fast money," a
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trat gist says he's all in on the market rally we'll hear about that coming up. feel that? that's the beat of global markets, the rhythm of the world. but to us, it's the pace of tomorrow. with ingenuity, technologies, and markets expertise we create the possible. and when you do that, you don't chase the pace of tomorrow. you set it. nasdaq. rewrite tomorrow.
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tiger woods taking home his first major title in more than a decade winning his fifth masters by one stroke. but, turns out his big win was bad news for sports books. eric chem mi joining us with tht >> several sportsbooks facing losses because of his win. after more than a decade, sports books had assumed tiger would continue to lose fans, though, they still believed in him. they took he other side of that bet and they won big one bitter in particular put
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down $85,000 for tiger to win. he made almost $1.2 million. it was the largest single golf win. betonline.ag says it was the biggest loss on a futures market greater than any loss even worse than any super bowl. west gate las vegas reported a high five figure net loss on its masters futures. the company could not recall the last time it had suffered a net loss on the masters winner and that tiger's win probably produced its largest loss on any golf event bet star sportsbook in new jersey reported taking a $360,000 net loss on its masters futures markets. the largest in that company's brief u.s. history draft kings said about 30% of all live wagers were on tiger. mgm telling cnbc that more money
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was bet on this tournament than any golf major in the company's history. so that's what happens, sara everybody bet on tiger the odds were in his favor against the sports books and the fans won and the books lost >> which is kind of an added boost to the whole story, eric but if he went off -- did you say he went off at the tournament at 14-1 so presumably he was not one of the actual favorites before the tournament. they must have taken a lot of bets on other guys >> one said if his name wasn't tiger woods and a golfer with the same profile and same statistics were on the board, he would have been at 25-1. in reality it should have been 25 think of it like an overvalued stock, a hot stock that has got too much priced in >> i wonder if there'll be more betting on golf now. it hasn't been the hottest place. >> this is what they want. this is the weird industry with the books want you to know they
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lost it's like the lottery. they want people to know, if you had bet on tiger, you would have made money we lost money so come bet next week you could win and we continue to lose doesn't usually happen, but they want you to think that this time >> eric chemi, thank you >> you got it. big things to watch tomorrow bank of america and netflix eain e fed's industrial report. we'll give you a full preview next was ahead of its time. still, we never stopped making it stronger. faster. smarter. because to be the best, is to never ever stop making it better. there's never been a better time to become part of the mercedes-benz family. visit the mercedes-benz spring event before april 30th
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let's take a look at where we finish. they're down about 0.1% for the three big indices. the russell down more. off the session lows down 96 at the low for the dow. we closed down about 30 points or so. the big winners in the dow today as you can see, united health up 3% disney up a percent and a half pfizer, walgreens rounding off the positives. i would just say for tomorrow, looking forward to bank of america reporting. in fact, of the big six banks, four of the six are up over two days feels like today is a lot of negativity out there but actually, only wells fargo which was the loser on friday and goldman sachs the loser today are net down over the two sessions bank of america probably more
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likely to emulate the success of the numbers. because wells fargo has been cutting its net income so maybe bank of america can change the tone back to positive tomorrow >> maybe a few other catalysts beyond the banks to drive the earnings season. we're going to get johnson & johnson tomorrow obviously those outlooks are going to be important. then the headliners after the bell tomorrow. ibm and netflix. >> netflix is going to be great to hear on the call if reed hastings says -- everybody gets drawn into the debate. disney is doing this or hbo is doing that >> unlike a lot of companies, remember he says that some of the competition is sleep and fortnite >> he does mention it. we'll see what happens on that that comes after the bell, of course, tomorrow so you won't want to miss that bank of america comes early. i think at 7:00 a.m. 7:30 a.m >> early morning for you
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>> but that does it for -- oh, we've still got 20 seconds there we go. other topics as well coming up is watching overnight. we did have a lot of bit of a decline in shanghai. >> the general vibe is that china is showing signs of a bottom. >> it is "closing bell," we'll leave it there. >> "fast money" begins right now. "fast money" starts right now live from the nasdaq market site overlooking times square, i'm melissa lee. tonight one top strategist says he is all in on this market. jonathan golub of credit suisse will be here to tell us what will take us to new highs. plus tafs wild weekend for elon musk on twitter at least is he putting his s.e.c. settlement at risk what can stop him now? we start off with the final countdown to netflix earnings. stock underpressure down today adding to losses down about 5% since disney

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