Skip to main content

tv   Closing Bell  CNBC  April 23, 2019 3:00pm-5:00pm EDT

3:00 pm
>> i wonder what happens if he doesn't win the stock draft? >> then i think his reputation as a mentalist kind of -- >> i agree huge risk. >> that's another reason to watch. >> yes, it is. >> speaking of watching, i'm watching semiconductor stocks. they are higher today. we'll talk about chips poised to benefit off 5g >> and by the way, boeing's 50-day moving average is 59.95 >> "closing bell" starts now >> it is the final hour of trade. i'm wilfred frost. >> and i'm sara eisen. the s&p 500 on track to close at an all-time high this would be the first record close of the year. we'll see whether stocks can hold on to these gains in the final minutes of trade >> top fund manager david harrah will tell us where he sees opportunities with stocks at record highs >> another top fund manager will tell us whether value or growth could perform best in this market "closing bell" starts right now.
3:01 pm
>> welcome to "the closing bell." as sara just mentioned, we are on track for a record close for the s&p 500. the record closing number 2930.75. as you can see, 2933 we're just fractionally ahead of it not for the other indices as we stand but nonetheless a very positive day of trade off the back of some good earnings earlier today. the main point leading markets higher >> only took us seven months to get here back to record territory. bob pisani here at the nyse. and bertha coombs. bob, kick it off for us. >> earnings are coming in much better than expected industrials and consumer names today are leading. let me just show you here. lockheed martin, 30% above expectations good heavens haven't seen that in a long time they raised their numbers. united technology 12% above
3:02 pm
expectations they've raised their numbers whirlpool 8% or 9% above, they affirmed their full-year guidance coke a little less than that but still beat and they affirmed their numbers. all of them trading ought to the up side. s&p set a new high, only 13 new highs on the s&p they're good ones. mcdonald's set a new high, mastercard, disney, norfolk southern among the railroads there are four major reasons why the markets hit new high number one today you saw it earnings stabilizing and in fact doing better than expected number two, the recession fears fading a bit number three, china bottoming and europe stable. and finally you know that the fed still accommodating. where do we go from here let's say we close at new highs. remember we heard from industrial stocks a little bit and the banks, a few consumer names. we're going to hear from technology stocks, global names, energy and health care remember, health care has become the problem child for the markets. i want to hear what they have to say. here's another complaint the volume is really light so we're not getting people crazy buying stocks.
3:03 pm
volatility is still very low nobody's buying any even options right now. and also many are still underinvest ppd we'll see if any of this changes tomorrow if we get new highs. guys, back to you. >> given the sort of optimistic picture you painted that's reverberating through the markets, better growth outlook, better earnings, what do you make of the fact that sectors like s&p real estate and utilities are also trading record highs traditionally bond proxies that are pretty defensive >> yes and i think the bottom line is people basically view the low interest rate environment still as very good for higher yielding names like utilities and real estate investment trusts we haven't seen any drop in the high yield funds at all. obviously they trade on credit besides what's going on with the overall stock market but i think it's still the fact that people are searching for yields and companies like utilities still have them. >> got it. bob, thank you let's send it over to o'bertha coombs at the nasdaq marketsite as the nasdaq 100 and composite
3:04 pm
look to close at record highs as well, bertha 37 what's driving it >> bob's looking for the highs he need only come uptown to times square to the nasdaq we are on pace for a record close here just a few points away from an all-time train day high. the large cap nasdaq 100 is the third all-time high in a row three straight sessions. on pace for new closing records as well for the tech and ship sectors today. hasbro among the big gainers here on the nasdaq better than expected earnings. qualcomm also one of those 92 new highs we are seeing here in the nasdaq continuing to show moltum after resolving its patent dispute with apple as the chips have all moved higher. tech very much the standouts cade eps one of nine nasdaq 100 stocks hitting new all-time highs following better than expected earnings results. and ahead of its earnings microsoft hitting a new record as well. and that same rebound has certainly played a role. take a look at the gains here.
3:05 pm
since those lows on christmas eve when we thought this market was never going to stand up again. apple up 37% amazon 39% amazon reports this week facebook 47% and netflix up 56% folks are getting back into the usual names but going into tech in a big way here at nasdaq. back to you. >> all right, bertha, thank you. joining us now to discuss more on today's rally where he's finding opportunity in the market is david harrell chief investment officer of international equities at harris associates david, what do you make of valuations with these record levels back in play? >> well, we're seeing record levels in the united states but we're really not seeing them anywhere else. which to us indicates that there are still places where there's lots of undiscovered value, lots of place that's have kind of missed this big recovery that we have witnessed since the fourth quarter of 2018. and i think specifically when you look at european equities
3:06 pm
they've been kind of held back as a result of some of the macro issues that i would argue held back their share prices. but we still see good value creation and as a result we see good investableopportunity in european stocks. >> so you don't see opportunities in u.s. stocks at today's valuation? >> well, i think there are plenty of opportunities in the u.s. because as mentioned in your earlier segment the upside move has been somewhat lopsided. banks have been heavily beneficial -- benefited from this upside move there's other areas in the u.s. which have not moved in lock-step. and this is the butte yif a i go broad market like the u.s. it's the beauty of having the world to choose from you could always find little pockets of value >> isn't europe cheaper for good reason they've got brexit they've got much slower growth some people say teetering on
3:07 pm
recession. super easy interest rate policies that's weighing on their banking sector you want to really be there with all those risks? >> that's exactly what is scaring people away from europe. however, when all those forces that you mentioned, all those scare stories, have had very little major influence on ability for european companies to create value. yes, at home they face some lower earnings but don't forget, most of these big european companies are multinational. they have exposure to the entire world. the emerging world the u.s. and especially since the euro is trading at such a low level. and by the way, it's another factor when you buy european stocks, you can buy a cheap euro as well but this translates back to more of an advantage for european equities that sell into dollar markets and have dollar revenues there's factors and forces you mention are exactly what's driving down the prices.
3:08 pm
but what i would assert they're not really smothering value creation, we're still seeing earnings growth, we're still seeing cash flow growth, despite the fact that they're based in europe and hereupon lies the opportunity. the market confuses what's happening macro with what is actually happening on the micro level within a company's income statements, balance sheets, and cash flow statements >> and david, to that point, though, a lot of u.s. companies have reported decent earnings so far in q1. do you not subscribe to the view that breaking above the previous record highs could help give some stimulus to the momentum stocks that you've already said you think look a little overvalued the ones that have led the rebound since december larry fink talking last week about the possibility of a melt-up. does breaking through the highs not give you the belief that that could happen? >> i never like to just comment on price movement. but we really like to stay focused on what's happening in
3:09 pm
terms of value movement. value creation within the businesses is there environment for companies, for management teams to drive their companies to create value and once we kind of have an estimate of that value, we compare it to the price. if price moves up a lot faster than value, then you do get this overheated reaction. and for value investors it's really not attractive. what we like is the other situation. that value gap opens and that allows us to xloid the market's inefficiency as value investors we kind of look past this price movement and try to stay focused on the movement of intrinsic value. >> i remember back in february you told us on "squawk on the street" that google was one of your favorite stocks, or alphabet, a top pick is that still a value play is that 22% so far this year >> yeah, google is held in our global blths and some of our domestic accounts as well. and i do co-manage some global
3:10 pm
portfolios yes, we still have google as a large position because back in february don't forget it was -- we were still kind of in this oversold position and meanwhile the business of google continues to go from strength to strength. so we still believe google fell at an attractive valuation >> david, overseas you like the kind of ultimate value play at the moment, european banks >> yes it started -- the price destruction started in european banks in early 2018, and the year just got worse. and despite the fact that prices of many of these blue chip names, lloyds bank, credit suisse, despite the fact these blue chip earnings were either growing or stable and they've increased the capital on their balance sheet, despite this prices of most of these were down over 30-some -- 40% last year so again, value went up, price
3:11 pm
went down. thereby opening that value gap we saw and are seeing a little recovery so far this year. maybe from the low 15, 20-ish percent. to us they're still nowhere near trading where they should be we're not saying they should trade at 1 1/2, 2 times. maybe they should be trading at 1 1/4 times book and they're all well below book value despite the fact that they are growing this book value at an acceptable rate >> david, thanks for joining us. >> thank you for having me >> meantime, let's dig in to two dow names moving in opposite directions today following earnings reports this morning. coca-cola and png. what are the takeaways >> consumer staples aren't looking so boring these days today's results from both coca-cola and procter & gamble are standouts in the industry for growth and show why investors are finding their way back to the groups this year organic revenue growth, by far the best measure of sales in this space and a real highlight.
3:12 pm
for coke it was 5% if you'd take out some of the prebrexit boost in stockpiles. that's strong. 5% for p & g is the best book we've seen in eight years. what's fueling it? at coca-cola in part sports drinks and body armour growing fast innovations like the new orange vanilla flavored coke launch in the u.s. did well. and coke zero sugar continues to resonate with consumers. >> they love the coke brand. they love what the brand stands for, love the taste of the product, love what it delivers there are just some of them who want less sugar on those occasions. and that's really been what's been behind coke zero sugar. again, double-digit volume growth, double-digit revenue growth, building on the momentum of the last few years. >> quincey says coke zero sugar is the new diet. for procter & gamble it's beauty sk-2 it's a beauty brand, in particular high-end japanese skin care line
3:13 pm
very broad growth. they've got natural detergents like gain botanical growing four times faster than the market right now and that's driving overall growth in its fabric care business. for both companies, international consumer like china and india continues to see strong growth despite worries about slower global growth and another common thread, pricing is going well, meaning raw material prices have risen input costs for some of these companies. p & g, coke, and others in the industry have raised prices that consumers ultimately pay sometimes there's a change in the packaging in the value equation there that combined with some of these new innovations are keeping both of these companies outgrowing the group. there are a number of standouts like coke and p & g, but it's not universal. you've still got the food companies like a kraft, for instance, a hershey, a campbell soup not seeing organic growth numbers like this. >> it's interesting seeing the strong market performance when you've got staples reporting such good numbers they're not actually leading the rally
3:14 pm
coke was up much more pre345rk9 and p & g has slipped throughout the session. >> context is key. procter & gamble up about 4% trading 4% from its record high. it's been rewarded for this new growth profile coca-cola as well. it has seen these kind of numbers before under both of their leadership and some of the changes they've made wall street's been very much onto this story. i think the other factor there is there's always something to pick apart, whether it's ebidta margin, for instance, at procter & gamble or coca-cola the knock on profit is really hurting, 11 points on profits. but underlying growth remains very solid and it's something wall street has been on top of >> let's discuss further and bring in nick mody from rbc capital markets. nick, what is your take on that point that sara just addressed, why these stocks aren't performing better today? >> i think to her point p & g had a remarkable move going into the print. so some of this was expected in terms of their strong top line and with coca-cola, look, the
3:15 pm
stock -- people are still trying to believe that this is a sustainable growth story and even though they keep on coming out quarter after quarter and delivering very good top line to earnings growth hasn't been there because of currency and we all know what's going on with the dollar right now. that's putting a little bit of a lid on the upside on that stock. >> nick, i tried to paint a little best a divergence between the winners and losers within consumer staples how do you look at it? >> i think what's amazing to me, right? is this whole notion of big bands versus small brands and how everyone was talking about the depath of big brands just a early as six months ago. and what we're finding is the companies are actually spending behind their businesses. they're actually developing data sets to better understand the consumer that takes money that takes talent. these are the companies that we're talking about today. p & g, while yes, they're putting up very good growth numbers, let's not forget that they were in kraft heinz's position not too long ago until they really started to turn their business around, reinvest
3:16 pm
back in the business, change their organizational design, change their corporate culture same thing with coca-cola. so i think the tag line is we're seeing kind of the empire striking back right now. we saw with walmart as well. when these big companies decide that they want to actually try to get growth and take some of the tough choices early to invest we're seeing that pay big dividends. >> what's your top pick in the sector in other words, what fits that bill but hasn't seen the stock move yet >> i have a very diverse coverage on the big capside coca-cola is definitely still my top idea in terms of my very top idea it's constellation brands. that stock has had a pretty dramatic move higher 150 bucks not too long ago and is over $200 mow i still think there's a lot of up side there. i like monster beverages a very controversial name. some new competition coming into that market, but i think their growth profile is going to be intact and on the smaller cap side i like a company like energizer
3:17 pm
where they've just done a couple of deals that i think the market is underappreciating at this moment >> nick mody, thanks for joining us >> you bet >> and since you asked, i did listen on a conference call. the ceo of coca-cola talked about the costa deal closing the big uk coffee brand they're buying they're going to start to take it global in the second quarter. watch your supermarket i know you want that >> i will indeed it's a shame they're not going to roll out the actual chain as well >> they're not they don't want to get in the restaurant business. it's such a departure for coke, although they are in it now in the uk >> anyway, we look forward to that coke up, p & g down today. kimberly-clark back down as well today. still to come, twitter on a tear shares surging on better than expected earnings. but will snapchat be able to follow suit? we'll have those numbers after the bell later, noted bear david rosenberg from gluskin schaap weighs in on today's first s&p record closed in septeernd ate ysould put an end to the rally.
3:18 pm
- i love my grandma. - anncr: as you grow older, your brain naturally begins to change which may cause trouble with recall. - learning from him is great... when i can keep up! - anncr: thankfully, prevagen helps your brain and improves memory. - dad's got all the answers. - anncr: prevagen is now the number-one-selling brain health supplement in drug stores nationwide. - she outsmarts me every single time. - checkmate! you wanna play again? - anncr: prevagen. healthier brain. better life. frstill, we never stoppedss wmaking it stronger.e. faster. smarter. because to be the best, is to never ever stop making it better.
3:19 pm
there's never been a better time to become part of the mercedes-benz family. visit the mercedes-benz spring event before april 30th for exceptional lease and financing offers on the 2019 c 300.
3:20 pm
the latest inisn't just a store.ty it's a save more with a new kind of wireless network store. it's a look what your wifi can do now store. a get your questions answered by awesome experts store. it's a now there's one store that connects your life like never before store. the xfinity store is here. and it's simple, easy, awesome. welcome back to "the closing bell."
3:21 pm
the dow up by about 127 points the winner united technology strong numbers earlier today, which we'll discuss in more detail coming up three health care companies follow in close succession health care is the best performing sector on the s&p, up 1.7%, bouncing back from a poor start to the year, up only 1% year to date followed closely by coca-cola that we just discussed at the bottom of the dow is p & g, which we also just discussed shares of twitter meantime soaring on the heels of earnings it could post its best day since july let's get to julia boorstin for more on that move and what it could mean for snap which reports after the close. julia. >> well, wilf, we're seeing those twitter shares up over 15%. on earnings that far surpassed expectations as did twitter's user numbers twitter's monetizable dailiy active users, that's a key measure because it's the number of people that could see ads on twitter every day, grew 8 million in the quarter to 134 million. the company saying that it's focused on the health of the twitter platform, cleaning up bots and trolling, reducing the
3:22 pm
spread of fake news is paying off. the company also saying there is more room to grow users by making the platform even more user friendly and by making it easier to follow topics and events and also to grow those ad dollars along with them. >> when we look at the experience of the people who use the service we mow there's a ton more we can do to make it easier to find the things you're looking for to make you feel comfortable being part of the conversation >> now looking amed head to snap, earnings which are coming up in about an hour, we'll be watching to see if snapchat can similarly rev up its user base after stagnating growth in the wake of an app redesign which drew mixed results this quarter for snap analysts expect the company to add just 1 million daily active users in the quarter to end the quarter with 187 million still have to see how those user numbers and snap's revenue growth come in when the company reports coming up after the bell guys >> julia, thank you. up next, the financials have been a big underperformer over
3:23 pm
the last year. we're going to dive into what investors want to see from the banks next >> plus the market may anybody record territory but shares of six flags have been on a roller coasr deteri over the past year. we'll speak with the company's ceo when we come back. we see homes staying cooler without the planet getting warmer. at emerson, when issues become inspiration, creating a better world isn't just a result, it's a responsibility. emerson. consider it solved. craftsmanship and technology that have made the rx the leading luxury suv of all time.
3:24 pm
lease the 2019 rx 350 for $409 a month for 36 months. experience amazing at your lexus dealer.
3:25 pm
stocks on track for a record close. watching the financials. that sector has also had a nice run in 2019 but it is still lagging the s&p 500 by a wide margin over the past 12 months
3:26 pm
dom chu is back at headquarters with a look at one key metric investors are using, dom, to value the banks right now. >> that's right. if you take a look at the banks, the financial sector overall, banks are a component of them, other stocks are in there as well, but specifically with regard to valuation of the banks you talk about that run. the spider s&p back etf which is a more equal weighted index of some of the larger and mid-scale banks in america has actually outperformed the s&p 500 thanks to some of the smaller and mid-sized banks. but if you take a look at the valuation story, price to book values are some of the metrics that a lot of investors use to look at how they value banks specifically some of the banks that we know and talk about often that have premium price to book valuations include jpmorganchase, u.s. bancorp and bank of hawaii jpmorganchase about 1.6 times book k see u.s. bancorp about 1.8 times book and bank of hawaii trading at over 2 1/2 times book value. as opposed to some of the other
3:27 pm
valued companies on a price basis wells fargo trades at about a 22% premium to book value. so on the lower end of the scale with regard to banks on a relative basis bank of america at 1.2 times and citigroup actually trades at a discount overall to the market what's interesting about the way these things are shaping up, it is the banks that are going to be a big deal for many investors but it's also the non-bank financial institution that's have been driving a lot of the gains within the s&p 500 financial sector so far. as we focus on bank valuations those are important but the returns if you look at them stock specifically, guys, have been driven by some of the other names out there, not just the citigroups, bank of americas and jpmorgans of the world, guys >> the really interesting thing when you look at those big six banks that you just mentioned is the diversity that we see across those. you wouldn't really see those across the different p multiples of staples companies, not to the same extent anyway part of that is explained by the
3:28 pm
relative r.o.e.s which of course plays into the book value. the other interesting thing for me is clearly you can't really compare book value, price to book value to other sectors, but on a key multiple, which isn't perfect for banks, they're very cheap relative to the rest of the market >> and they have been cheap for a while. and that's the big rub on the banks the idea that on a valuation basis they may appear attractive to some investors, but that really hasn't gotten a lot of folks to really buy into the bank trade yet what is curious, though, i mentioned sara, wilfred, the five actually, now that i count it, the five best performing s&p 500 financial stocks so far this year to date are actually non-bank, non-traditional bank financial institutions names like ameri-prize, msci, also names like synchroni financial. also if you take a look at the overall picture, if those gains continue is it going to be those stocks that are going to be the drivers for those returns, not necessarily traditional banks. even with banks, wilfred, to your point, it's hard to look at
3:29 pm
insurance companies versus asset managers, versus exchanges compared to some of these banks as well and certainly not from an r.o.e. perspective. >> and dom, i guess the other point, to state the obvious, is what makes these look expensive, compare them to europe or japan's banks which of course you can do a tangible book comparison and they are significantly valued compared to that where you have 0.3, 0.4 times book for some of those big names. >> and we're going to get a clearer picture, right because later on this week, thursday, friday, we get ubs, credit suisse, deutsche bank on the european side. the financials very much a focus so far but still the u.s. trade has been a relatively interesting one. we'll see if these guys actually get investors involved more on a larger-scale basis like other sectors in the market like consumer staples and technology as well. >> all right, dom, thank you time now to get a cnbc news update with courtney reagan. hi, court. >> hi, sara. here's what's happening at this hour deputy white house secretary hogan gibbly defended the trump
3:30 pm
administration's plan to ask about citizenship status on the 2020 census, this as the supreme court heard arguments on the subject today. >> he wants to know who's in this country and i think as a sovereign nation we have that right. it's been a question that's been on the census for decades. but we'll wait and see how the supreme court rules. >> human rights lawyer amal clooney and nobel peace prize lawyer nada mir-it were among the guests at the united nations security council's open debate on the effects of sexual violence in conflicts. u.n. secretary-general antonio guterres telling the counsel that will sexual violence is deliberately used as a tactic of war to terrorize people. two reuters reporters convicted of breaking myanmar's secrets act lost their appeal in that country's supreme court they've spent 16 months in jail. their lawyers say there's no proof the reporters committed a
3:31 pm
crime. that's the cnbc news update at this hour. wilf, back over to you >> courtney, thank you very much for that we have just under 30 minutes left of trade at the moment. we have the dow up by 124 points s&p by 0.85. 2932 it needs to close above 2931, just above the 20th of september record high. >> nasdaq too. at a record high that was about half a percent away, thanks in part to boeing's struggles in recent weeks. >> still to come, one of wall street's top international fund managers lays out the names she's buying right now as the market hits new highs. plus, speaking of boeing, will boeing break the rally? the dow component reports earnings tomorrow. we're going to ask bank of america's earnings analyst what are you watching in those numbers. and that's we head to break, here's a look at some of the top s&p 500 performers since the last time we were at a record high xilinx, chipotle, twitter all making the list. stay with us as we approach the close on this record day on wall street internet that puts you in charge.
3:32 pm
3:33 pm
alright boys, time to eat. that handles anything. [ crowd cheering ] that protects what's important. and reaches everywhere. this is beyond wifi. this is xfi. today, life-changing technology from abbott is helping hunt them down at their source. because the faster we can identify new viruses,
3:34 pm
the faster we can get to stopping them. the most personal technology, is technology with the power to change your life. life. to the fullest. welcome back to "closing
3:35 pm
bell." could be a historic close if we close around these levels, which would be the first record high close for 2019 for the s&p 500 here's a look at what is taking us there in terms of the sectors that are working today and you've got a mix of health care is by far the outperformer. that's been a lagging sector so far this year. you've also got strength pretty much everywhere in technology and industrials. better earnings, better outlook for economic growth, all fueling the gains today. >> bank stocks are back in favor with investors, all seeing double-digit growth this year. but our next guest says investors should be pivoting to value names in case the economic cycle turns south. joining us now, sarah kettering, portfolio manager at causeway. your main thesis is very late in the cycle. you think you should be pivoting to the value names is that right? >> well, wilfred, i have to admit causeway has a value emphasis i am talking my own book
3:36 pm
but what we've seen is some extremes that usually means end of cycle. for example, the value versus the growth indices in the world's index trade at extreme gap. the value index trades at 12 times next year's earnings and the growth index at a whopping 20 times. and all of that's happening when volumes or volatility's been falling, especially on the u.s. market meanwhile, the returns have been rising those aren't typically -- that's not a sustainable situation. so we tell our clients make sure you have value, make sure you have diversification don't put all your eggs in one growth basket. >> hasn't that been the argument, sarah, for pretty much this entire bull market over the last ten years and yet the valuations continue to rise for the growth names technology is the leading group so far this year why would thinking change right now? >> it's just that no one thinks it will change and then it does.
3:37 pm
but what's different now is that the fed has actually shrunk its balance sheet by half a trillion dollars from its peak. and global monetary growth that infused this tremendous growth hunger, investors had to get their hands on stocks. they'd do anything so it seems even when there's no sign of earnings of cash flow, now we're in a situation where monetary growth is slowing and as a result there may be much more interest in the stock that trades at 12 times earnings rather than 20 even if its growth isn't nearly as rapid and there are so many stocks out there like that. you made reference to banks and industrials there are plenty across the board and not just cyclical stocks, in defensive areas as well. >> sarah, a lot of your picks and some of your comments so far suggest a big preference for the lower valuations in europe and around round the rest of the world compared to the u.s. but one could have made that argument a year ago, two years
3:38 pm
ago, three years ago and you would have missed out on the u.s.'s outperformance. what makes you confident that now is the time to shift into those regions like europe? >> this isn't necessarily an argument to invest only abroad even though stocks are generally cheaper offshore than they are in the u.s., but rather to emphasize those shorter duration stocks the stocks delivering income now, that dlif cash flow now one of the stocks we talked to clients about is volkswagen in germany. here's a company that's in a race against time, but believe it or not what's extraordinary, went into the dieselgate crisis with net cash and today has 25 billion euros of net cash and is generating increasing amounts of free cash flow through cash conversion and why we like that is because you're going to get -- investors, you're going to get paid now you don't have to wait ten years or pay ten times sales for that luxury there's a sort of tangibility of short duration, less interest
3:39 pm
rate sensitivity to value stocks that's meaningful in this environment as liquidity is less abundant >> can you give us a few names in the u.s.? >> well, one of the u.s. stocks we like that would appeal to some of your growth investors is sabre in the global distribution business had i of them as taking a piece of travel bookings they get their fee on volume, not on price as long as we have robust airline travel, they should do well plus they have i.t. solutions. the hospitality industry this is a company that's worked its way out of some i'd say a little too much debt and now it's in a much better position, moving to cloud. and they trade at 14 times earnings yes, there are value stocks galore out there that nobody has paid attention to. and we like to invest alongside management who are in the process of self-help, engaging in operational restructuring to improve these businesses,
3:40 pm
increase cash conversion and more of that cash comes to our clients the shareholders, who in turn can reinvest as they choose >> thanks for joining us sarah keterror from causeway >> rick santelli at the cme. we're all talking about record highs, potential close here for stocks what are you seeing in the bond and currency market that either confirms it or doesn't go with that >> well, it doesn't go with that as a matter of fact, stocks and the dollar powering ahead. treasuries are just kind of treading if you look at a two-day of twos we dropped down, went under 2.38 this morning despite at the same time we had a strong housing number if you look at the five it dropped two but not nearly as much so the curve actually steepened with falling rates which i always find fascinating. but maybe the most interesting thing today is that the dollar index also toying with 22-month highs. and while all that's going on, the treasuries are basically locked in this technical move.
3:41 pm
if you see below 2.56 close, which is now 2.57 in the market in tens, that would mean even the long end would be below some important technical supports i really think it's more of a demand story on the treasuries, even the two-year note auction went pretty well it's just a question of how long it will last >> that dollar point, rick, clearly that's weighed on coca-cola's earnings earlier today. what's driving it higher at the moment, do you think >> i think at the moment it's most likely the fact that we have areas of our economy that are still outperforming other areas whether it's in asia or it's in europe and i think investors are a little apprehensive. and as far as toying with coke's earnings i get it but let's not lose sight of the fact that was first quarter and i heard the ceo today our guest talking about how they had to made the adjustments in the strong dollar, but that was mostly last year pretty much from november to now even though the dollar's strong, at the upper end of a crown it
3:42 pm
really hasn't had a whole lot of volatility between '96 and '97 1/2. >> rick, thank you >> thank you >> attention amazon shoppers you will soon be able to return items to any kohl's store. we'll tell you the details on that one moving the stock big-time today. >> plus snap will report earnings after the close shares are up 120% year to date, but only 13% of analysts say it's a buy we'll discuss if wall street got that stock wrong coming up on "closing bell." [ alarm beeping ]
3:43 pm
wake up! there's a lot that needs to get done today. small things. big things. too hard to do alone things. day after day, you need to get it all done. and here to listen and help you through it all is bank of america. with the expertise and know-how you need to reach that blissful state of done-ness. so let's get after it. ♪ everything is all right what would you like the power to do?® ♪ all right
3:44 pm
3:45 pm
welcome back to "closing bell." 15 minutes left to trade let's check in on some individual market movers aerospace company utx powering the dow higher the company reporting an earnings beat and revenue beat also full-year outlook and performance of collins which it recently acquired beat expectations that stock trading higher by two points at 2% as we mentioned. decent earnings. shares already up 30% year to
3:46 pm
date the full-year guidance increase is what a lot of people are poexing on more than just the past quarter aerospace drove this rather than elevators or air-conditioning units. it follows honeywell's beat. good news for ge of course boeing tomorrow, which has specific issues, also something to keep an eye on. but -- >> it's going to follow this trend we've been eyeing. better news for multinational companies that have a lot of business abroad, which is a bit of a reversal from what we saw last quarter on that global growth fund. i'm watching shares of kohl's today. the stock is jumping on news that beginning in july all kohl's stores across the country will start accepting amazon returns. this option is currently available at nearly 100 kohl's stores now it's going to go to more than 1,000 kohl's stores and clearly investors are happy. this is the reverse amazon effect usually amazon comes into your space and you drop but when you do business with
3:47 pm
them look what happens with your stock. it gives kohl's more cachet versus other department stores which are struggling because it brings in amazon shoppers. and that's the traffic wall street obviously expects to be good there's been some preliminary data at cnbc.com in their story that cites earnest research which shows sales in the chicago location, which is one of the initial pilots accepting these amazon returns, have outpaced sales in the rest of nationwide kohl's stores. >> clearly that effect by the market, some questioning whether it makes them an amazon fulfillment center and whether that damages their open sort of retailer brand and sort of attractive in the medium to long term but certainly a positive today >> all the traffic >> that stock up 12% still to come we're counting you down to the close. we could hit a record on the s&p and nasdaq the s&p right close at 2931. it's aiming to close at that level to be a record close
3:48 pm
in fact, looks relatively safe dow is about half a percent away from its own record high up next economist david rosenberg tells us where he sees opportunity. back in a couple through the at&t network, edge-to-edge intelligence gives you the power to see every corner of your growing business. from finding out what's selling best... to managing your fleet... to collaborating remotely with your teams. giving you a nice big edge over your competition. that's the power of edge-to-edge intelligence. ♪ e*trade core portfolios is an easy, automated way to get invested.
3:49 pm
we'll save you time by building, monitoring and managing a portfolio for you and provide all hands-on deck support when you need it- helping you become top dog. ♪ internet that puts alright boys, time to eat. that handles anything. [ crowd cheering ] that protects what's important. and reaches everywhere. this is beyond wifi. this is xfi.
3:50 pm
3:51 pm
as we approach a possible record close for both the s&p zt nasdaq this afternoon let's bring in david rosenberg chief economist and strategist at gluskin sheff. you have thought the economy was getting worse from the levels we saw last year. so far, i mean, the data is actually pointing to a better first quarter than everyone expected and the earnings are also coming in a little better than expected. so are you sticking to your bearish guns >> well, the answer to the last question is yes. and i suppose, you know, when you take estimates from the beginning of the year on earnings down 7 1/2% and then you beat them, that's basically just crossing over a much lower bar. what hasn't changed is the year-over-year trend, even with today's numbers, are still negative so you cut your estimates and
3:52 pm
beat your estimates and then there's the kumbaya moment that we've had not just today but in the past several weeks the trend in earnings is actually still negative for the first quarter, and we'll see what the outlook is for the dow for the year your comment on the economy, actually, i'm taking a look at the fact that real retail sales, we got the numbers for march real retail sales were actually negative in the first quarter. real retail sales were negative in the fourth quarter. and when your back-to-back real retail sales, you're actually heading in a recession over 80% of the time. we're going to find out on friday the key number people should focus on on friday is not gdp but the real underbelly to the private sector so real private final sales is going to be very important to look at. and so you're commenting on how great the u.s. economy is. i looked at the citigroup's price index. it's at a 22-month low
3:53 pm
as we sit. the global citigroup to price index on the economy is at a 70-month low so i would actually disagree that this -- what's happening with the market has anything to do with the economy. it continues to be the fact that interest rates are benign, the fed is out of the picture, and you have liquidity and momentum really battling valuation. and what i still see as earnings picture not benchmarks against expectations but actually hard earnings, that i think are still going to be challenged in the balance of the year. >> that wasn't really sara's point, nor did she say the data in the economy had been outstanding, just that the last couple of weeks it has seemingly turned a corner again and been less bad than previously expected would you admit that that is the case, ha things have prolonged for more than you expected and therefore perhaps your thesis could be wrong >> well, i'm pretty sure that
3:54 pm
sara had said that the economy had been doing better. against expectations >> well, i mean, it has. the 10-year yield has moved from 2.30s to almost 2.60 the odds of a fed rate hike were thin by the end of the year. that's also been priced out. the gdp estimate has gone from .2% in mid march to almost 3% for the first quarter. the data has come in a little bit better >> well, it's actually, if you look at the new york fed's estimate for the first quarter, it still has the 1 handle. and there's a very big range on the estimates for the first quarter. but the data have been mixed you had a good new home sale number today we just came off a horrendous existing home sale number. are you going to sit there and tell me that housing starts that we got in march was a good number industrial production, was that a good number? no >> it's not all good but definitely there's been an improvement. and what we're getting from earnings, yes, they always beat
3:55 pm
expectations on the bottom line. but digging through the results, you don't see a top of recession scares in terms of consumer behavior i cover coke and p & g they tell you the consumer in the u.s. is doing just fine. >> well, like i said, there's more to the economy than the s&p 500. the s&p 500 maybe represents a third of the economy how is it therefore that real retail sales as i said previously was negative .6% in two one. on top of negative .5 in q4. so it doesn't all come down to public companies we know from the retail sales numbers that includes the rebound we had in march. you look at the past two orders, they're actually negative. and as far as -- >> the gdp on friday, david. >> well, as i said before, the gdp number, even if it surprises to the up side, we know there's three surprise factors exports, inventories, and we know public sector spending on
3:56 pm
construction has boomed at over 30% annual rate and that's going to have an influence which is why i said that if you want to get a real good sense as to what the underlying trend is in the economy focus on friday on real final private demand and i think that's going to be somewhat close to 1% of the annual race. but it's not just about the economy. this goes down as one of the most profound equity bull markets of all time in the context of what we still know as the weakest economic expansion of all time. the dilemma here is you're tying in the economy into the stock market but if you look at the economy throughout this ten-year cycle it's been the weakest growth of all time and it's been a monumental bull market in equities and a lot of that is because of stock buybacks 30% of your earnings growth has come from stock buybacks this cycle. you've got a situation in public equities where the share count is down to a 20-year low so stocks are basically trading like a commodity i'm not so sure there's any
3:57 pm
value in the stock market that's predictable for the economy right now. >> always fun to debate you, david. thanks for coming on >> thank you >> david rosenberg we've got about four minutes left ougto the close the nasdaq may close at a record we've lost a little momentum let's go to bertha coombs for an update >> we are on pace to close at a record for the nasdaq composite here came within about five points of the all-time high. but this will take out the august 29th closing high for the nasdaq the nasdaq 100, third day in a row that we are seeing a record intraday and close for the large cap tech index and also want to mention the russell 2000 today, which is the strongest performer and today now moves out of correction territory. the small caps have lagged it's been all about the big caps take a look at some of the historic highs today smaller cap you, i.d. management, all of them in tech names. autodesk also moving higher as
3:58 pm
well and the big rebound this month that has helped make this possible, moving us toward all-time highs, has been the mega caps really coming back to life apple up more than 10% for the month. amazon, microsoft hitting an all-time high today ahead of its earnings this afternoon. it's going to be a busy one. wilf, over to you. >> it certainly is, bertha, as you were saying there. a little bit of breathing room for the nasdaq composite, though not much, as to whether or not it hits a record all-time close. for the s&p it is incredibly tight indeed we are at 2933 the number needed, 2931 to be a record close there's a snapshot since the last high on the 20th of september it took 95 days to decline 19.8% to the 24th of december. 120 days since then, we're up nearly 25% in order to hit that record we'll keep an eye on it. the dow is about half a percent or so from its record high nasdaq we've already discussed and s&p. sectors today led higher by
3:59 pm
health care, consumer discretionary, tech to the womt bottom, only one in the red, which is consumer staples and otherwise the focus today has been on earnings the likes of coke higher. p & g lower. some numbers reporting after the close like snapchat, texas instrument bob pisani we're looking for those closes >> i'm predicting we're going to make it. we need 2931 2930 the important thing here is we need to get hearings from the technology stocks to push the rally forward. that's yiem looking forward to texas instruments right after the close. they're going to get some indications about the global semiconductor market asml reported in europe a little while ago and their numbers were very good. remember, industrials are now largely over banks are now largely over we need to hear from tech and we
4:00 pm
need to hear from health care, which has become the problem, kyle, we haven't heard from any of them. and i think we're going to hear very good numbers on friday with exxonmobil that's the key right now >> six flags after the bell. but there is the bell. the s&p 500 a record all-time close. 2933.47. beating the previous high by just over two points the nasdaq also record all-time closing high the dow shy by half a percent. bay positive day across the board. russell up by .6%. sar arks back to you >> its first record close of 2019 welcome to "closing bell" on this historic day for stocks i'm sara eisen wilfred frost joining me in a moment mike santoli has the day off today. he's missing all the action. the s&p 500 and nasdaq both closing at record highs. take a look at how we finished up the day on wall street.
4:01 pm
the s&p 500 we were watching it all day long 2933 was enough to close at a new all-time high. previous record was 2930 we were last there in september. took seven months to get on this round trip the dow had a good day on its own, up more than 146 points the nasdaq composite also closing at a record high, up 1.3% and the russell 2000, index of small caps it's been lagging for the past few weeks or so. it actually jumped the most today, up 1.6. very bullish day on wall street as far as what worked in the market health care stocks made a strong comeback at the top of the list. consumer discretionary, real estate, technology, industrials. the only sector to close lower was actually consumer staples. despite some good frults coca-cola and procter & gamble we are still on earnings watch right now. julia boorstin standing by for results from snap. josh lipton monitoring texas instruments. following e bay's numbers. we'll bring you the results as
4:02 pm
soon as we get them, see if we can continue to fuel this market joining us to talk about it, liz young, director of market strategy at pny mellon investment management and carrie firestone, ceo of orias asset management good afternoon since mike santoli is missing these record high closes, how psychologically important is it that we got here despite that bear market basically we saw that took us through christmas eve and rocketed back more than 20% to these new highs >> at the risk of sounding a little bit like a wet blanket, i don't want to declare premature victory here because i think people sometimes underestimate the tendency of other investors and what people think everybody else is going to do. they kind of hop on this bandwagon and it drives things up to the record and i think if we take the weight of what's the positive and what's the negatives right now the poszs are that earnings season has gone well so far.
4:03 pm
the fed is dovish for now. we have a trade deal pending but nothing's been executed. so the negatives are that we really don't have certainties on any of that yet and i don't want to get too far ahead of ourselves. >> breaking through these highs, does it make you think we could spark another uptrend for a while? >> i think that's possible, wilf if you look at what the market did today, it's interesting, across all market capitalizations it was higher and across essentially all sectors it was higher. i think png held down the consumer goods but what we've seen over the last few weeks had excluded health care until today. the biotechs were particularly strong today small cap again. and i think that's a good sign, which shows that investors are feeling more comfortable with the fact that earnings may be somewhat weak this quarter but they're not as weak as expected and it's giving assurance that
4:04 pm
earnings are going progress through the rest of the year on revenues and the bottom line it was very good news. this was a nice sign and i think that having growth is true, we don't have to talk about hitting a new peak on the s&p. we've done it. now let's move forward and look at what companies are going to say over the rest of earnings periods, which we believe will be again somewhat more positive than people had expected going into this earnings season. >> i mean, if you're an investor signature at home watching this market action, the market's up 17% so far this year it's been a tremendous comeback. what do you do do you stick around for the ride to see if they can continue or do you book your profits after an already pretty positive year? >> i think in some places you can book your profits because what we immediated for confirmation that the rally would continue was a catalyst and the first catalyst that we're getting is that earnings season is so far a nice positive surprise the year was expected to be back end loaded already so we are expecting to see most of the gdp growth come at the
4:05 pm
last half of the year, most of the earnings growth culminate in the last half of the year. already above expectations at this point i think it's a good sign that we're going to stay positive for the year however, with stocks at this level and with bond yields at the level they're at at that low level, there is some risk for retrace nmt stocks and bonds can't really rally enough to offset some of the headline risk we're seeing out of europe and china. >> we've gotten an earnings alert on texas instruments josh lipton. >> texas instruments reporting an eps of $1.26 versus expectations of $1.13. revenue 3.59 billion versus expectations of 3.48 billion so beats there on the bottom and the top. it's for q2, the forecast, the calls are between 1.12 and 1.32 on revenue, between 3.46 and 3.74 billion just looking quickly through the segments here, looks like analog revenue comes in at about 2.5 billion. embedded processing at 796
4:06 pm
million. other revenue at 280 million texas instruments we care about this company because its chips are used in such a wide range of applications analysts will tell you it's a pretty good proxy for the broader semi sector. guys, back to you. >> josh, thanks for that a nice 4% jump in the share price after hours. kari, i'll come to you year o'date already strong performance, up 23% coming into this what do you make of that beat? >> well, the sector, the semiconductor sector, has done much better than texas instruments. they're a massive underperformer and it's needed to show strength in the quarter in order to break ahead. and i think it's done that of course this is one of the companies that's most affected by tariff and trade problems with china because as you said correctly their chips are used in so many products. and we export a lot and then in
4:07 pm
importing products that texas puts chips into it it's an enormous beneficiary if things resolve in china the fact they had a good quarter, they beat expectations and that hopefully we'll see something on a trade deal is very good for the stock. >> let's check back in in regards to those record closes on the best and worst sectors since the last record close set in september utilities, communication services, and real estate leading the way, up better than 7% meanwhile, energy, health care, financials have been the worst performers with energy down 8, health care down 6%. interesting health care was actually the best performer today, as if crossing over the line was led by a bit of a rotation into the underperformers. is that what you think will h. will happen from now or can those momentum names continue to lead us higher
4:08 pm
>> the momentum names can definitely lead us higher. what's interesting is you look at the sectors that have been the worst performers, energy, health care, they're affected by macro factors. energy affected by oil prices. health care can be affected by political movement and then we look at financials affect by the yield curve. the sectors more driven by fundamental factors, hopefully we'll see pickups and continue to pick up as fundamentals roll in positively. >> do you think the energy sector will play catch-up to oil prices because as you said affected by macro fashlths but it lags oil prices of late >> it has. it was under pressure because of oil prices in the fourth quarter last year but it should show some positive moment as we move through the week, especially with the big names that will be reporting i think on friday this week hopefully we'll see a little more pickup there. energy prices and oil prices are again an indicator of consumer demand and everything's kind of relying on the consumer to drive the economy through the end of the year >> kari, of those groups that have underperformed since our last record close, energy,
4:09 pm
health care financials, which one do you play? >> well, with own a number of health care stocks but no large cap pharma i think the pharma stocks and some of the larger names in the group like insurance that have not participated might start to get some interest from investors who are looking for areas to put money that hasn't moved. if the market continues to go higher and interest rates stay low, then you're still going to get the biotech companies moving up because they're one of the biggest growth potential groups that there is in the s&p i also think that energy with higher oil prices definitely should move higher the companies have moved up so much but not nearly what the market has and financials, we own no money central banks but those stocks should move ahead if we think there's going to be trade resolution interest rates are a little bit higher, and the regional banks
4:10 pm
and some of that financial such as insurance companies could did not to move higher as the market moves up i think we're having a broadening effect here that should raise all the boats >> well, is it really broad enough to take the insurance stocks up? don't buyers beware there of the politics of the moment medicare for all has really dragged down this sector when you think back to the last election, the drug stocks started moving lower when hillary clinton started talking about it a whole summer before the election so i just wonder if that's a warning for investors if they really do want to get in and play catch-up in that group. >> i think it depends what your time frame is. these stocks are trading at very low multii am lz so if you're willing to wait and you're buying a stock for in the mid teens rather than in the mid 20s then you might have a wonderful outcome a year from now. you have to as an investor think about buying low and selling
4:11 pm
high and you can mix your portfolio with a variety of names representing ones that have been moved by momentum and ones that are a value play at the same time we don't own any of the health insurance stocks except for health equity, which is the health savings plan company, which is a great company, came down directly over the last week, and we think should rally again because nothing is going to change very quickly on the health care front. >> we have snap numbers out. julia boorstin's got them for us julia? >> that's right, wilf. snap beating on the top and bottom line. also reporting better than expected user numbers. the company reporting a loss of 10 cents per share that's better than the 12-cent loss that analysts predicted revenue was 320 million in the quarter, up 39%. that's versus the 307 million. and what's key about that 39% revenue growth is it means that revenue growth is actually accelerating from 36% revenue
4:12 pm
growth in q4 to 39% in q1. so revenue growth accelerating, earnings, the loss better than expected average revenue per user $1.68 versus $1.63 and in terms of daily active user numbers better than expected 190 million for the quarter versus 187 million projected and up from 186 million last quarter. that means snap added 4 million daily active users in the quarter. and dppgss were that they were just going to add 1 million. that shows they're making progress there and just a couple key things from this report here. evan spiegel saying the android application is now available to everyone with promising early results and they've announced several new products that will drive further engagement and monetization some optimism there. quick look at guidance revenue guidance right in line with expectations but earnings guidance, guidance for the bottom line-s lighter than expected snap saying it expects a loss of
4:13 pm
between 115 and 125 million in adjusted ebidta in the second quarter. that's compared to analysts who are expecting loss of just 110 million. looks like the company's going to continue to have to invest to achieve that growth. we'll continue to dig in here and we'll be back to you with more details guys >> julia, thanks very much for that up 12% in after hours trade. it does come of course after a decent performance in today's trade, up 3% or 4% off the back of twitter's strong numbers. and the stock on a tear year to date coming into this up 117%. remarkably with that gain still down over 12 months. but some good themes to come out of the set of numbers. and especially the user growth >> user growth, accelerating revenue growth bay slightly narrower loss than expected kari, what's your take on this other effect companies, most notably pinterest coming to market of late it doesn't stand on its own so
4:14 pm
much anymore >> i'm very impressed with these numbers. this is a stock that was ub 117% year to date and now it's up 12% on much, much better numbers. very impressed that people are in fact moving toward snapchat when they had been using apparently instagram and instagram was aching the market. instagram obviously is not as much of a powerhouse as the street had thought it was dismissing snap as perhaps becoming obsolete, and they clearly are not people are going to have to go back to the drawing board on their estimates and their models and try to understand what's going on here. >> i also just want to point out the context here it's been an incredible run, will fred. you mentioned up more than 100% so far this year don't forget it placed its ipo at $17 per share, ran up to 29, but & has a long way to go to
4:15 pm
get up to the highs but the momentum has turned, this is the second quarter in a row that they've given something for investors to be excited about. i know you can't talk specific stocks but the sector in general and what it says about potentially other results coming later this week from facebook and the others >> we needed a little bit of justification that the market should be up at this level and that tech should continue to perform well throughout the year and so far we're getting that justification. and that gives me a little bit more confidence that we can eventually declare victory i said in the beginning i don't want to declare it too soon but as we move through and continue to get reinforcement i think we can probably declare it at the end of earnings season >> liz and kari, great to see you as always. facebook will report numbers tomorrow one to watch as well >> up next, snap shares are soaring right now after better than expected numbers, better revenues and user numbers. we'll debate howyou should trade this stock in the wake of these results. >> then the ceo of amusement eado operator six flags will brk wn his company's earnings right here on "closing bell" before he speaks to analysts
4:16 pm
4:17 pm
4:18 pm
missed out on a record
4:19 pm
all-time high as the s&p and nasdaq hit utx good results this morning, coke also decent numbers behind it health care had a strong performance. p & g and verizon both had results that underwhelmed the market and came out at bottom of the dow. earnings arert letter on ebay. >> pretty solid earnings on ebay adjusted eps coming in above estimates at 67 cents. 63 cents was expected. q1 revenue coming in at $2.64 billion. that is better than the 2.58 billion that was projected also guidance looks pretty good. q2 revenue and eps guidance mostly above estimates fiscal year earnings in line however, i want to point out a very important metric and that is gmv gross merchandise value. it th fell short of estimates coming in at $26.2 billion 23.3 billion was expected. this number represents, it was
4:20 pm
down 4%. and it's critical because we know that activist investors are looking at this company and have pushed through change and really this gmv number is a sign of how quickly it's growing and whether it's able to keep its buyers in terms of active buyers, this quarter saw 180 million. active buyers up 4%. a little bit short of estimates. but the stock is trading up 6% i wonder if that will come down a little bit in the call because analysts are going to be looking for talk of further progress or lack of progress in terms of the strategic reviews that were pushed out by elliott management guys >> deirdre, thank you. turning to snap, which is also soaring on earnings let's get back to julia boorstin in los angeles who's been digging through that report. julia. >> a couple more details here from the report to explain why snap's revenue growth is faster than expected and also why it's able to add users faster than expected you see shares up over 7%. so in terms of revenue growth it sounds like that's really based
4:21 pm
on improvements to their ad tools. they have a new self-serve ad tool with additional features. they talk about how they're invested in more brand focused buying tools it's not just direct response ads but ads for big brands who want to reach consumers. also more tools to help them understand who they're reaching and how they're reaching them in that ad impact in terms of their impact on consumers, they said they have some prettying interesting stocks in discover which is a content platform saying in the first half nearly half of viewers watched discover every day of the week. the premium content they do for their platform what's key there is it means the engagement is very high. and just one more detail on ceo evan spiegel's comments on growth higher than expected. he said we see many opportunities to increase our investments and we'll continue to manage our business for long-term growth some commentary here about how the likes of the new game platform that snap added will boost growth over the long term.
4:22 pm
back to you. >> julia, thank you very much for that let's dive into those numbers. neutral rating on the stocks sam mcbride has been bearish on snap since the ipo. a very good afternoon to you all. let me start with you, sam correct call for the most of the run but it's had a fantastic year to date what do you make of the numbers? >> i think the reaction to these numbers just shows how low the expectations have become for this company super thin user growth is not that impressive but the market is acting like they're going to take over the world here and we think there's been so much bearishness, so much trouble with this company over the last two years, it seems like the market's willing to reward them for even the slightest signs of improvement >> brent, do you agree with that i know you were looking for user growth and we did see better numbers on
4:23 pm
that front >> this comes down to user and revenue number the user number is 1 million shy of its peak. that shows you you're having users come back to the platform to create more engaging experiences. they've got the android platform now available to everyone which was key. they said ios was growing in q4 and sequentially now android is available that's great to see. that's stimulating the user growth numbers i think you have a couple things left they have to figure out you have to get a cfo on board and certainly this pathway to plo profitability. the losses were a bit better twitter had good numbers even ebay was able to put up good numbers i think that suggests the overall environment's really good right now for tech. >> what do you make of that point in particular? do you think snap's taking share back off facebook or given the twitter user growth as well do you think that all bodes well for facebook >> i would say it's too soon to
4:24 pm
tell exactly what this means for facebook this could be a rising tide lifts all boats situations and twitter's numbers look very strong and snap affected that as well broadly there is advertiser interest in digital advertising. but look, there's no denying that the user growth being up s sequentially, flat last quarter to being up, is a huge step. thantz happened in quite some time still a huge hole for them to dig out of but these are the steps the company needs to take to recover >> the average ad revenue per user was also higher 1.68 versus 1.63 expected. how are they doing that? how are they increasing the monetization for the users behind the scenes? >> they went to a new platform last year. they went to the programmatic platform they said as they add new advertisers the density of the platform will build and the pricing deceleration will stop, they will actually be able to show prices that can go up
4:25 pm
because the auctions supporting that so exactly what they've been telling wall street they're delivering, this is good to see from a pricing perspective and again, when you compare that relative to facebook and twitter they have a long way to go again, i think our primary concern is when you have a younger millennial audience on this platform can you monetize this audience? we think as those age out with the platform there are more engaging experiences and content that they can derive and advertisers are going to be attracted to the platform as they see more people stick on the platform we expect it will continue to grow it's a direct reflection of the changes they made over the last year >> sam, what do you make of the wave of tech ipos in is that good or bad for snap >> i think it's bad for snap i think if you look at recent ipo pinterest i think it's hard to look at these two companies in comparison and understand
4:26 pm
how, say, pinterest is valued at a lower level than snapchat. they've got more users they're growing faster they're closer to profitability. yet somehow they have a smaller market cap i think when you start to have more numbers to peg snap to it becomes harder to justify their valuation. >> finally, i get all the bearish facts that you're making but the one thing they've got is haf got users that are in the sweet spot, which is something all social media companies want. they've got the young users between -- i don't know how they measure it, age 13 and 25. and a big proportion actually of people in that bracket and that's going to be appealing to advertisers no matter what >> yeah. i think the question is how do you maintain, how do you grow that user base they grew slightly this quarter but i think if you look at their valuation there was just an implication they're going to grow at a much faster rate and we don't think they have the ability to do that, especially when they're facing competition still from instagram, from new
4:27 pm
apps like tech talk. what's the mode in this business to maintain and grow that user base >> all right thank you all for joining us we've got a news alert now on kraft heinz. eric has the details >> kraft heinz is considering a sale of the orrida frozen potato business cnbc has learned kraft heinz has hired core partners to prepare a sale of the orida brand. they think the brand could fetch as much as $2 billion but the process is still early on right now. that valuation is subject to buyer enthusiasm they also might be considering a sale of its entire frozen food business which includes other brands like smart ones and devour if there is buyer interest there as you can see a quick pop for the stock a few minutes ago as news of this was coming out. that's kraft heinz considering a sale of ore-ida, their frozen potato food business back to you guys >> terk, thanks very much.
4:28 pm
1.5 to 2 billion either way, small fries relative to the other -- >> cause bigger problems >> exactly still to come boeing shares down 11% since the ethiopian airlines crash in march find out whether the stock can rebate when it reports earnings tomorrow >> plus amazon shares are nearing an all-time closing high coming up we will explain why morehan ta dozen seattle seahawks football players are the stock's biggest fans right now. there are people in the investment industry who hold themselves to a higher standard. they are called "cfa charterholders." demand the best. demand a cfa charterholder. cfa institute.
4:29 pm
rheumatoid arthritis or psoriatic arthritis. when considering another treatment, ask about xeljanz xr, a once-daily pill for adults with moderate to severe rheumatoid arthritis or active psoriatic arthritis for whom methotrexate did not work well enough.
4:30 pm
it can reduce pain, swelling, and significantly improve physical function. xeljanz xr can lower your ability to fight infections, including tuberculosis. serious, sometimes fatal infections and cancers, including lymphoma, have happened. as have tears in the stomach or intestines, serious allergic reactions, low blood cell counts, higher liver tests and cholesterol levels. don't start xeljanz xr if you have an infection. your doctor should perform blood tests before and while taking xeljanz xr, and monitor certain liver tests. tell your doctor if you've been somewhere fungal infections are common and if you have had tb, hepatitis b or c, or are prone to infections. don't let another morning go by without asking your doctor about xeljanz xr. cfa charterholders have proven themselves by passing don't let another morning go by without asking your doctor one of the most rigorous exams in the world. demand the best. demand a cfa charterholder. cfa institute. let's measure up.
4:31 pm
since september the 20th record all-time high nasdaq did that also more comfortable by by about 0.2%, 0.3% russ hello a healthy day up 1.6% >> time for a cnbc news update with courtney ang. >> here's what's happening at this hour. at the time 100 summit in new york city today jared kushner, son-in-law and senior adviser to president trump, discussed russian interference in the 2016 presidential campaign. >> i mean, the whole notion of the russia collusion narrative came up. i was the first person to say, happy to participate with any investigations i thought the whole thing was kind of nonsense, to be honest
4:32 pm
with you we ran a very untraditional campaign we had a lot of outsiders coming in in the beginning we couldn't even get a lot of the people from washington to work with the campaign >> jussie smollett's attorneys mark geragos and tina glandian say a lawsuit accusing them of defame twog brothers who say they helped the "empire" actor stage an attack against himself is ridiculous. the brothers accuse the lawyers of defamation by continuing to assert they carried out a bigoted attack against smollet federal prosecutors announcing drug trafficking charges against a drug company and two of its executives for the first time ever. rochester drug cooperative is one of the ten largest pharmaceutical distributors in the u.s. that's a cnbc news update at this hour. back over to you, sara and wilf. >> courtney, thank you some news crossing on right yaid the company joining walgreen's in raising the minimum achblg to purchase tobacco products to 21. right yaid saying the changes will go into effect in all
4:33 pm
stores within 90 days. walgreen's announce nounsed it this morning senator mitch mcconnell, majority leader, has talked about raising his state age from 18 to 21 to buy tobacco products this is all in an effort to combat teen vaping which is a huge epidem nick this country. we talked to someone who said he'd support these age limits because he doesn't want these products in the hands of teens either >> we'll see if other companies follow suit as well. right yaid reacting, down 2.2% after hours. >> up next the ceo of six flags breaks down at musement park operator's earnings in a first on cnbc interview. >> and later an analyst tells's how much the ethiopian air crash could affect boeing's earnings when its results come out tomorrow
4:34 pm
4:35 pm
4:36 pm
news alert twitter ceo jack dorsey. eamon javers with the details in washington >> jack dorsey is in washington. in fact, he was at the white house earlier today according to sarah sanders the white house press secretary. dorsey met with president trump today. the white house confirming the
4:37 pm
meeting but not offering any other details in terms of who attended the meeting, even where the meeting happened, or what was discussed. you can imagine, though, that the president brought up some of his frustrations with twitter as one of the biggest users of the system the president putting out some tweets himself this morning critical of the twitter system saying as a republican they don't treat me well, very discriminatory, hard for people to sign on, constantly taking people off the list. big complaints from many people, different names. over 100 million presumably the president means there, but should be much higher than that if twitter wasn't playing their political games. no wonder congress wants to get involved and they should must do more and fairer companies to get out the word. presumably that complaint was aired by the president here in talking to jack dorsey we reached out to twitter for their readout of this meeting as well we'll bring that to you as soon aswe have it i guess we can be sure that later on today we might see something about this meeting on the president's own twitter
4:38 pm
feed, guys >> i just wonder if this is on his agenda when he was bashing twitter on twitter this morning, whether he knew this meeting was happening today. >> you would think that the timing being what it was, those tweets coming this morning, jack dorsey didn't jump on a plane after those tweets and arrive here in time for the meeting this afternoon i imagine it was prescheduled. >> particularly on a busy earnings day exactly. >> i imagine this was prescheduled but the white house isn't giving us any details, so we don't know the back story of how the meeting came together. the meeting was not on the president's publicly released official schedule but they've been doing that with some ceos recently, having people in to talk to the president but not putting it on the president's public schedule in advance >> eamon, keep us posted let's check in on some of the other afterhours movers. snap, texas instruments, ebay all beating on the top and bottom lines that's 3 for 3 seeing a nice pop here after hours. wall street is rewarding the beats even with a strong run up of the market into earnings. >> another earnings mover we're watching shares of six flags
4:39 pm
volatile after posting a shawler than expected quarterly loss beat estimates thanks to higher admissions revenue six flags ceo jim reid-anderson. >> great to be here. >> break down the headlines from the quarter. >> i'd say first of all we'd just registered our ninth record year in a row. this quarter is the smallest quarter that we have in the year and it was affected by the later easter so it's going to be, you know, less powerful than it was last year but we feel very good about several of the key measures that came out in the quarter including our active space which is up 5% we're seeing trends that would suggest a very strong year ahead and i'm feeling more confident about being able to deliver our tenth record year in a row >> what about the 8% decrease in the number of guests >> sara, it's very simple, sara. easter shifted so spring break didn't happen. whereas last year this was all in the first quarter
4:40 pm
so basically, people who would have come didn't because the parks weren't open so they are now open, and that shift basically was all offset in the first few weeks of q2 >> talk to us about the growth in passes. you're trying to shift more of your visitors into subscribing to those sorts of models how does that alter pricing and what percentage of total visitors are on those? >> it's a really great question, wilfred. and basically the model is to move to membership to drive recurring revenue. and we've had incredible success there. the growth has been double digit on membership and that's a result that's pushing our act i have pass space up but even better than that the price of a membership ranges from $60 with a season pass to a starting point of $90 with a membership and the premium memberships are over $200. so you can see that indirectly you pick up pricing that way and that has driven the highest per
4:41 pm
capita revenue we have in the company's history. literally the first quarter which you said our smallest quarter has the highest per capita in our history which is something to be celebrated >> the domestic business but you do have growing international exposure how's that going something that wall street is eager to get an update on. >> absolutely. wall street is interested in it but we have to put it in perspective. outside of the north american business our international business represents 3% of our revenue. it's very small, with opportunity to grow, and i'm very excited about that. but our domestic business including mexico and canada is extremely strong and powering ahead. on the international front if you think out ten years from now by 2030 a billion more people will be in the middle classes primarily in china and india and we are driving growth there. parks there to be able to satisfy that long term and our brand is so strong globally we can do that. >> you recently had to defer your ebidta target for annual
4:42 pm
performance back a year to 2021. is that still the guidance >> that is the guidance. it requires 8% growth. if you look back over the last nine years we've grown ebidta at 12% to get to that target. we have to grow it 8%. last year we grew it 7%. so we would have grown faster except for the macro economic hit that came in china toward the end of the year and that really slowed us down. so we're feeling good about that it requires hard work. it's never easy. but we're working very hard to try to get to that number. >> a lot of overhang has been you and the fact you indicated you're going to retire and there's some uncertainty as to who's going to lead this company. wall street has bought intoer strategy over the years. what can you tell us >> i actually feel very good about the future first of all, i'm one of the largest shareholders in the company. secondly, the board that found me nine years ago, it's the same board that's looking for any replacement. we have great candidates both internally and externally. and once we come to a
4:43 pm
conclusion, we'll obviously let everybody know about that. but it's very early. i gave basically one year's notice in the process. it's a long time and we're going through that process very carefully to ensure we find the right person long term >> jim reid-anderson, thanks for being here >> thanks very much, guys. up next, a game show shake-up "jeopardy's" record-setting winner could be cutting into its budget in a major way. plus, playing for keeps. we'll see, russell wilson giving his teammates a key piece of the tech sector. that's on our radar. it will never survive the winter. charging stations? good luck finding one of those. so, maybe an electric car isn't for you after all. or, is it? ♪
4:44 pm
weveryone, looknk isn'tat your phones. the design thinking, the digital engineering, security, blockchain, and we will be first to market! yes. when we do we launch?
4:45 pm
unfortunately, in 2 or 3, hours. why the delay? cognizant is helping banks use digital technologies at scale to advance speed to market.
4:46 pm
welcome back here are some other stories on "the closing bell's" radar today. "jeopardy" contestant james holzhauer is giving the show's budget a run for its money this guy is amazing. he has won nearly $1 million during only 13 episodes. he's also set a single show record of more than $131,000 in winnings averages about $20,000 it's sort of taking america by storm. wilfred has no idea what i'm talking about because i found out today, shockingly, he has never watched an episode of "jeopardy. >> i genuinely thought this was like a drama, a crime drama, like a long -- because i know people refer to it always being on and i thought it was like a "dallas" or "csi." >> this guy is actually incredible he's a sports gambler in real life so besides being a genius and
4:47 pm
getting all the questions right he has this interesting strategy of playing the board, goes for daily doubles, racks up the money on the harder questions. >> no idea what you're talking about here daily double you did say you have to answer the question with a question >> you have to answer the answer with a question. >> i'm lost. >> on tonight at 7:00 p.m. eastern. and you're in for a treat. >> seattle seahawks quarterback russell westbrook gifth the 13 members of his defensive line $12,000 each in amazon stock it waswilson's way of saying thanks for blocking him during the season it comes on the heels of wilson's new deal with the seahawks i totally love this. i love the way he's done it in stock as well as of course seattle-based seahawks where amazon's headquartered but 12 grand versus his massive pay package? not that big a gift. >> he's just gifting it to the linemen. i don't think it's a traditional practice >> i agree i love it. >> probably hoping the last ten years amazon's up 2,200% or so,
4:48 pm
maybe that that would be a good investment he's also a friend i think of jeff bezos they've been on twitter together making pancakes in bezos's kitchen. >> but either way i like that story. good buy >> up next boeing bracing for earnings the airline gearing up to report resus moowlttorr morning we're going to tell you exactly what to watch here, next free access to every platform. yeah, that too. i don't want any trade minimums. yeah, i totally agree, they don't have any of those. i want to know what i'm paying upfront. yes, absolutely. do you just say yes to everything? hm. well i say no to kale. mm. yeah, they say if you blanch it it's better, but that seems like a lot of work. no hidden fees. no platform fees. no trade minimums. and yes, it's all at one low price. td ameritrade. ♪
4:49 pm
internet that puts alright boys, time to eat. that handles anything. [ crowd cheering ] that protects what's important. and reaches everywhere. this is beyond wifi. this is xfi.
4:50 pm
breaking news on cvs julia boorstin with the details. >> it has suspended its search for another ceo and the interim ceo agreed to extend his role as cbs's acting ceo for an
4:51 pm
additional six months through the end of the year. i just want to weigh in here, sarah that i've been hearing from various sources and it's been hard to choose another perm nentd ceo because the expectation that cbs and via com would merge and the expectation that bob, the current ceo of via com could be the ceo of the company. that could be one factor at play here and that's what i've been hearing from a number of sources and joe, has demonstrated exceptional leadership during a time of unprecedented transition at cbs he steadied the ship and a commitment to cultural change. of course, this all comes after former ceo les moonves left after allegations of sexual misconduct guys, back over to you >> julia, suspending the search for a full time ceo and they're extending the role assent rim ceo? >> yes his role is acting chief
4:52 pm
executive officer and that role has been extended through the end of the year. one could read into this that the implication is that we'll have much more insight into whether there will be a merger of cbs and via com before the end of the year or perhaps he's being auditioned to be the permanent ceo he's always been considered one of the contenders to be the ceo, but one thing i've been hearing that cbs has gone out to a number of seasoned media executives is that it's been very hard to get someone to sign on to this role and understanding the changes that could be aet head. >> judith, thanks very much for that and cbs up slightly in after hours. tomorrow boeing will release its first earnings report since the fatal ethiopian airlines crash in march which prompted the worldwide grounding of boeing's 737 max jet. >> tomorrow's report will give investors the first real look of how the crisis has impacted boeing's financials and joining us here with what to expect is ron epistein and he covers bank of america merrill lynch and has a neutral rating on the stock, ron, what are you looking for
4:53 pm
the numbers? >> first of all, thank you for having me here >> just clarity on what's going on since boeing announced they took it down to 737, and not only were airplanes grounded, but they took the production rate down and they were supposed to go to 57 per month and they've effectively cut from 57 to 42. so investors are looking for what impact will that have, most importantly on cash flow boeing's been a cash flow story and what does that mean for 2019 cash flow, but more importantly 2020 and 2021? so that's the key thing investors are looking for. >> how can they forecast 2021 without being grounded >> management will be limited in what they can say because you have an ongoing investigation, b, not only do they have a fix for the airplane which most certainly will probably happen, but you have to deal with the
4:54 pm
international regulation community, right because this was more than just a boeing problem and an faa problem. >> neil over the weekend raised questions about other aircrafts and not just the 737 max what did you make of that and analysts already priced in any potential issues with non-737 max questions and they had issues there in the past and it is unclear if the new york times article was kind of backwards looking as opposed to forward looking and those are still issues and that's unclear, but if indeed there are still issues that's a problem and other questions to ask what does this mean for the 777x and that's a plane that started flight testing and the pressure on the faa delay the development of the up
4:55 pm
777x and the middle of the market airplane and will they launch that airplane or not and there was expectation if we would get clarity in june, but that's unclear at this point and maybe we'll get some clarity on the call >> in the meantime, what do you do with the stock? >> we douwngraded the stock a fw weeks ago and we originally thought this would take three months to clear up and it looks like tell be closer to six, maybe as far as nine and that has impact for sure on the 2019 cash flow, but it also impacts 2020 cash flow, and i'm not sure if at this point the market expects that. >> your price target 420 is trading at 370-ish at the moment and if you get the right answers tomorrow will you be ready to upgrade it >> right now i'm neutral on it and we'll see. i can't give you that answer right now. >> with a decent amount of upside with the target price >> thanks so much for joining us >> my pleasure >> still ahead after the bell, movers will look at those and stocks in record territory and we'll bring you the biggest names moving after hours
4:56 pm
just takes a little creativity. the light beer you've been waiting for has arrived. lower carbs. lower calories. higher expectations. corona premier. i'm workin♪ to make each day a little sweeter. to give every idea the perfect soundtrack. ♪ to make each journey more elegant. at adp we're designing a better way to work, so you can achieve what you're working for.
4:57 pm
tthis is where i trades. and manage my portfolio. since i added futures, i have access to the oil markets. and gold markets. ok. i'm plugged into equities. trade confirmed. and i have global access 24/7.
4:58 pm
meaning, i can do what i need to do. then i can focus on what i want to do. visit your online broker today, to learn more. welcome back president trump just tweeting about his meeting with twitter ceo jack dorsey saying great meeting this afternoon at the white house with jack from twitter. lots of subjects discussed
4:59 pm
regarding the platform and the world of social media in general and look forward to keeping an open dialogue, a different tone, of course, from his tweet about twitter this morning the picture there of jack dorsey among others in the oval office. twitter had a great day today because it reported numbers and not because of any interactions with the president which were better than expected. >> the subject that the president knows a lot about. >> yes >> he probably shared a lot of thoughts and the headlines making news after hours and briefly turning negative after reporting a smaller than expected loss, beating wall street's revenue and user estimate, it had jumped sharply after the report, what 7%, it was high. the conference call just kicking off losing all of its gains and ebay also heighter after beating analyst profits and expectations and issuing strong guidance. >> i robot shares, the stock had been at record highs before the
5:00 pm
report as you can see it's down some 15% or so, but the real headline today, is the record all-time close for the s&p and the nasdaq some seven months. >> seven months for the s&p and i think it was august and eight months for the nasdaq. the dow is at .7% away and boeing has held it back. will the gains continue? the earnings certainly are coming in strong and that continued after hours. >> that does it for closing bell thanks for watching. >> "fast money" begins right now. "fast money" starts right now live from the nasdaq marketsite overlooking new york's times square. brian kelly, karen finerman and guy adami. check out shares of snap after the earnings report morning ago and the conference call kicking off right now and we'll bring you the very latest and plus the market closing at record highs and wall street's biggest bear says the gains are in for the year and wells fargo's chris harvey will be here to explain and that's where we start with the market rally that no one can seem to touch, not the fed and not trade wars and

34 Views

info Stream Only

Uploaded by TV Archive on