Skip to main content

tv   Power Lunch  CNBC  April 26, 2019 2:00pm-3:00pm EDT

2:00 pm
jeff dill with firsthand experience appreciate it and that does it for our future of work series this week. hope you've enjoiped it all on our web site, to look back at anything don't send emails this weekend and stick around for "power lunch" which stiarts right now. >> i'm melissa lee with tyler mathisen the american economy firing on all cylinders. fears about a slowdown overdone. target and walmart getting slammed. amazon raising the stakes in the battle over one day shipping what it all means for all three of them. bobby's bulls, mr. wonderful, oz knows, which team with the best portfolio in the stock draft and which stocks left on the board worth buying "power lunch" starts right now >> ndeed it does welcome to "power lunch. i'm tyler mathisen stocks at this hour are steady they are well off their lows the latest read on the economy offsetting fears about earnings
2:01 pm
that may be now in the pike. oil prices sliding this hour comments from president trump ha partly fueling the declines. more on this straight ahead. kelly? >> calm day for the major averages but a number of stocks moving big this hour bob pisani on the floor of the nyse bob? >> reporter: mixed earnings here that's sort of the issue for the stock market on the positive side, ford reported a very nice beat and having the best day in ten years on very strong demand. 10% of the upside. ford's up 35% so far this year amazon beat estimates by 50% it's up as well and frankly, it's getting a lot of play on that free one day shipping for prime members. that's a neat trick, which is why walmart and target are trading to the downside but disappointing results from exxon and intel are weighing on the dow. with exxon, it waslower profit from refining and with intel, it was partly slower growth in china. so melissa, the good news is earnings look like they're going to be flattish in the first
2:02 pm
quarter. not down as feared the bad news is we still don't have a clear answer to the china billioni bottoming question back to you. president trump's top economic adviser on cnbc weighing on the economy and trade talks with china and the president himself taking aim at the price of oil kayla tausche is at the white house wrapping this all up kayla? >> reporter: hey, melissa. growth has long been one of the yardsticks of success for the white house and president trump's officials said this growth numbers that surpassed expectations are proof the policies are working >> it's a blowout number and i'll just say that president trump's policies are rebuilding the economy. and actually, the prosperity cycle we're in is gaining momentum >> this is really blockbuster news and suggested the risks on the upside are high for gdp this year. >> reporter: trump said if the fed didn't cut interest rates or did cut in interest rates, the growth would be even better. one potential tailwind to growth is the resolution of tensions
2:03 pm
over trade the treasury secretary and trade representative go to beijing next week and trump said the talks are going well but the market largely expects a deal at this point but it was president trump's comments about the energy market that moved prices in oil today >> inflation numbers are very low. the gasoline prices are coming down i called up opec i said, you've got to bring them down you've got to bring them down. and gasoline is coming down. we're doing great. >> reporter: the president's criticized opec before neither the white house nor opec added any context to that statement but it comes as gas prices have actually been rising sharply. 10% this week. more than 50% year-to-date and triple a actually said that's due to robust demands and tightening of sanctions on iran by the trump administration. guys >> kayla, quick follow-up on this the journal's been calling around they said the opec chief has not spoken to president trump and hasn't discussed lowering oil
2:04 pm
prices with the saudis despite what he said earlier doesn't look like oil is much off the lows on this, so we'll see. >> reporter: yeah, well, president trump has more than a dozen times actually tweeted directly at opec, suggesting that opec needs to make changes to output in order to lower prices so perhaps that's what he's referencing there, that he has publicly called on opec to make some changes but of course, the journal, they're saying that he hasn't spoken directly to the organization. >> all right, kayla, thank you very much. the president's economic advisers are bullish on the american economy you might expect that. the gdp number coming in much better than expected are concerns about an economic slowdown overdone? ron ansana is here, a senior adviser to schroeder's, chief officer with the bleefly group >> every time i call opec, it goes straight to voice mail.
2:05 pm
>> just keep hitting zero. eventually you'll get a person that's my experience >> a call center somewhere >> you think the economic numbers are a little bit misleading, why and how? >> i think when you take them apart and you look at the export and import data in particular, and one hand, exports surged 3.7%, to whom, we don't know since the rest of the world is fairly slow and the other hand, imports dropped 3.7% as a result of trade tensions. that also shows a consumer demand might be a little slacked. consumer spending up 1.3% and the inventory build was fairly large. so you have those types of numbers that could be transitory and some houses that are already cutting expectations for second quarter gdp to below 2%. >> peter, are you as skeptical as ron seems >> if you take out government spending, from state and local inventories and trade number, growth was 1.3%. that's the weakest since the second quarter of 2013 now, we're going to get from the things that boost the q on gdp,
2:06 pm
reversion in q2 and have to average the two numbers and still looking at a 2% to 2.5%. >> i don't mean this to sound disrespectful at all. >> however. >> you can take things out and put them back and play with the numbers but my question really is, are the numbers that were reported for this quarter, are they comparable to the ways the numbers have been reported over time and so -- doesn't mean these numbers are meaningless. >> i like to smooth things out because you get lumpiness on a month to month basis and quarterly basis. so the second quarter is probably going to have a one handle so you combine the two and you're going to have a two handle with growth and likely, the rest of the year whereas last year, you had about 3%. so i do think throughout the rest of the year, averaging this out, you are stepping down in terms of growth. >> you got to throw in the towel, two bleakly on the economy. >> it's just the math. >> in january, i understood.
2:07 pm
the stock market was tanking, the government was shut down the first numbers were bad but lately, come on. it looks fine now, doesn't it? what sign is there out there of a slowdown >> let's listen to what companies have said. >> about the u.s.? >> about the global economy. let's look at what semiconductor companies over the last a couple of days have said. they've talked about things slowing down now, i'm not saying we're going to recession anytime soon or crashing, just seeing a slower pace of global growth. >> what about the u.s. >> the u.s. as well. >> for the intels, the 3ms of the world, the starbucks, the fords, how do you sort of parse the earnings season so far given we're headed into the busiest weekend for earnings next week with what we're hearing on the data front >> most calls about 3m and china, everybody saying china and they appear to becoming off the bottom at least a little bit. there's, i think, some concern among economists that china's efforts to stimulate the economy might not be as fruitful this time around. here at home, we're in a pretty good space the question is about these low
2:08 pm
inflation numbers whether or not if indeed what we read in the last couple of days is true the fed will look at these and take out some or the of insurance rate cut later this year, and that would certainly help growth and since the fed went on pause and all clear signal for the stock market over the last 3.5 months anyway, the key question, i think, is going to be the inflation data going forward i agree growth with peter that is in the 3% range and inflation numbers may be more important. >> what's your prediction for gdp going into this number >> i don't have a particular estimate quarterly. >> you didn't? >> no. >> all right >> just real quick, remember the realtime fed was 0.3% at the beginning of the year to 3.2 i do think you have to disaggregate these numbers and take them not entirely at face value. >> and one quick point we talk about the fed maybe cutting rates on insurance the bond markets cut rates for the fed and down 75 basis points mortgage rates fallen so consumers already gotten help without the fed doing anything. >> that's why the economy is so
2:09 pm
strong >> thank you ron. appreciate it. >> thank you. exxonmobil getting hammered today. the stock having the worst day since the christmas eve sell-off profit falling nearly 50% a year ago missing analyst estimates. rival chevron beat us but also fell 30% from a year ago pavel mallikanov great to have you with us. what's your take on exxonmobil >> so as you said earnings were hit by refining results, however, you know, i wouldn't really spend too much time on this stuff refining margins are always transitory they were lower than expected in q1 they were higher than expected in q4. i think what's much more important is to focus on the controllable, so production. this is a company that had production decline in six of the last seven years, which is just a horrendous track record. they actually eked out 2% growth
2:10 pm
this quarter, so that is an improvement but again, after, you know, a pretty awful period, chevron's production by comparison is up 6%, so three times faster but yeah, both companies had soft earnings due to the refining margin. >> exxon is underperformed and chevron at this point, pavel, how does that calculus change at all should the anadarko deal go through? >> so i've been saying for the last two weeks that chevron did not need to buy anadarko there was no necessity for it. i do not think it's a very wise move and indeed, you know, the stock has taken a hit in the last two weeks for the record, i think occidental does not need to buy anadarko either. i don't want either of these companies to win the bidding for unfortunately, one of them will win and i think that will be chevron, it's larger, got a bigger balance sheet
2:11 pm
it can afford to pay a higher price but, you know, chevron has fantastic assets, permian, kazakhstan, deep water, they do not need this position but if they do, what's done is done >> which would you pick between chevron and exxon? >> well, chevron i think is the better story particularly in the context of recovery in oil prices you know, by the way, you made the comment earlier about trump's tweet against opec opec maybe was afraid of him at some point in the past they're not afraid of him any longer and we know that because saudi arabia has cut deliberately its oil production by over a million barrels since the end of last year they've cut production more than they originally planned as part of the opec supply cut and that tells us, you know, they're more worried about prices falling
2:12 pm
than they are about, you know, what's happening in the white house. >> pavel, we're going to leave it there, thank you so much. it's the unicorn that everyone from silicon valley to wall street is waiting to go public uber setting its ipo pricing and could go public with the market cap of more than some of the best known names in the s&p 500. leslie picker is digging through that filing for us leslie >> reporter: hey, kelly. that's right at the high end of the range marketing, they're fully diluted market valuation would be upwards of 0i$90.5 billion and upwards of $10 billion the largest tech company we've seen in the last five years since alibaba went public in 2014 bankers kaurcautious here. they don't want too much hype around this deal and tampering expectations surrounding valuation over the last few weeks and even months before that now, today's filing outlined
2:13 pm
exactly who is selling in this ipo because not all of the proceeds that will be raised will go back into reinvestment in the company soft bank benchmark, travis kalanick, the former ceo and co-founder are all selling in this field, although not dem demonstrably but the alphabet, flip company of google holding on to their stake. in conjunction with today's turns set this morning, announced a private placement with paypal to invest additional $500 million into this deal and that is on top of the primary shares being introduced through this offering. guys back to you. >> leslie, talk about headlines. travis kalanick apparently could make nearly $9 billion depending on the pricing from this ipo, $9 billion. >> reporter: right, so all this talk about kind of paring back the valuation to make sure
2:14 pm
they're conservative enough to cover a book that's essentially going to be about $10 billion worth of stock it does directly impact a lot of the co-founders of this company that are selling into this ipo now, keep in mind, they will still have a significant stake after this deal is done, so theoretically, they should want to see the stock price appreciate from here but in terms of the actual liquidity event taking place in the next few weeks or so, they would like to see the highest price possible >> yeah, and again, i don't know when he would hold on to it, but that's got to be one of the biggest overnight billionaire moves of all time. in any case, and to him, it's a rounding error make $9 billion. >> a billion here, a billion there. >> exactly coming up, amazon says it wants to go to one day shipping and look at what that's doing to the big retailers. walmart and target getting shafted today. amazon higher after earnings and it is now one of the most loved stocks on the street
2:15 pm
up 27% in a year we'll explain why it is so in favor. will amazon propel noah syndergaard in the cnbc stock draft? still have time to pick your favorite team. go to stockdraftchallenge.com to enter our contest for a fabulous priz e. (indistinguishable muttering) e. that was awful. why are you so good at this? had a coach in high school.
2:16 pm
really helped me up my game. i had a coach. math. ooh. so, why don't traders have coaches? who says they don't? coach mcadoo! you know, at td ameritrade, we offer free access to coaches and a full education curriculum- just to help you improve your skills. boom! mad skills. education to take your trading to the next level. only with td ameritrade.
2:17 pm
2:18 pm
target and walmart two retailers getting hit today as amazon announces, get this, one day shipping courtney reagan looking at the retail ripple. this is a big expenditure on behalf of amazon. >> it sure is. the shares, look at the shares of target down 5%. walmart down 2% and this comes after amazon announces it's spending $800 million just in the current quarter in a request to offer one day instead of two day shipping to u.s. prime members. target and walmart offer two day shipping online for many items as long as you spend $35 and they don't charge you a membership fee to do it like the $119 annual prime cost in response to the news, target tells cnbc it offers numerous ways for shoppers same day to receive purchases within hours at any stores. target shoppers can pick up online orders with pick-up target's ship is same day but there is a $99 annual fee for
2:19 pm
that and then walmart has online order pick-up but declined to comment to react to what amazon will do. and millions building online operations and decide whether they'll up the ante, spend more to get closer to one day and of course, amazon isn't quite yet at one day and we don't know if they can do it i have heard anecdotally of consumers saying, prime isn't always two day when it says it is which makes sense because of the volume they're pushing through we know in the numbers how much they're doing. it's not always two days, so one day is a goal. it's very expensive. can they do it and what does everybody else think >> i don't know whether this is the case but i'm a prime member, when i buy something from a third party vendor on prime, it may not get there in two days. >> exactly some of those will be prime eligible and some are not. depends on their arrangements with amazon and what they've decided to offer for their shoppers. >> courtney, thank you. amazon was noah syndergaard's pick in the second round of the draft pick. >> we'll go with amazon.
2:20 pm
>> all right >> why amazon? >> i mean, personally, every day, i feel like i'm getting two or three amazon boxes. i can imagine what other people are doing. >> amazon's also reportedly eyeing a partnership with sinclair to bid for the regional sports network that disney is selling. e-commerce giant getting lots of love on the street all 45 analysts rate the company a buy. one of them, senior research analyst with piper jaffray just boosted his price target to $22.25 mike, welcome. >> good afternoon. >> why do you boost the price target with all the money they're going to have to spend on this one-day rollout? >> yeah, you know, it was a good quarter. they had a solid top line, the operating income beat significantly. really, actually the only knock on the quarter was next quarter looking at the guidance for operating income they guided below consensus but the last four quarters, they've beaten their guidance by an average of 71% over the last four quarters.
2:21 pm
it's probably the case that operating income guidance is still likely conservative. there is the expense, as you mentioned, adding in $800 million of fulfillment costs for the one-day shipping but we think that's money well spent. >> sure. so tangentially, for prime video in general, how much of a mover will that be for the stock >> if you look at these streaming services, one of the things they've really missed so far is having sports content there's a lot of dollars that are switching over from traditional tv content over to streaming services and sports has been kind of the missing link there, so, you know, we haven't seen netflix have it or hulu, apple, any of the other services to the extent that amazon can add it in, it will give them a dif differentiator >> it's really their outlook on spending and somehow this time around, wall street is okay with
2:22 pm
the additional spending. why do you think that has sort of changed in this environment >> well, i think in this case, especially since the spending is for something i would call miraculous with free one day shipping, it's just viewed as a way to continue to increase their escape velocity versus competitors. i can't imagine how frustrating it would be one of their competitors just sprinting to catch up to free two-day shipping and now a bomb dropped on that amazon is going to one day. >> let me come back to the sinclair amazon possible partnership on the regional sports networks. who needs whom more? sinclair need amazon more? my question basically is why would amazon need anyone to help them acquire those networks if they wanted to >> yeah, that's a good question if you look at prime video, you know, to be honest, most prime subscribers don't subscribe because of prime video so you could even paint the picture that amazon doesn't even need prime video to maintain its
2:23 pm
subscribers. so it's definitely the case that amazon doesn't necessarily need the content but really thinking long-term and they want to be, you know, the source of everything for you and have a larger kind of engrained purpose in your life so having more content is definitely part of that. >> you know what caught my eye in the quarter, michael, other revenues up 36%. i believe year on year, but within that advertising, growth was even stronger than the overall bucket who should be concerned about amazon taking away ad revenue? >> yeah, it's a good point advertising continues to grow and it's a huge business for them and we expect it to continue to be significant and really, if you think about it, it's the traditional advertising, so just the shift of offline to online ad dollars but also google and facebook potentially as they're losing some of that product search revenue to amazon. >> mike, good stuff. thanks for joining us. mike olson from piper jaffray. >> thanks.
2:24 pm
chip stocks have been the hottest sector of the market up more than 30% so far this year but then intel warned and put the group down is the party over? "trading nation" is next and then we'll take you inside the isees weou imalibu mansion th wk'porhses right after the break.
2:25 pm
2:26 pm
2:27 pm
welcome back to "power lunch. time now for powerhouse and today we're going inside the home of ceo, the luxury skin care brand radical skin care robert frank has more. >> well, today's powerhouse is the estate of liz edlich, the ceo and co-founder of radical skin care. she's giving us an exclusive tour of her cliff side compound in malibu and wait until you hear what it took to have it float above the ocean. take a look. ♪ ♪ >> i built and designed this house myself i can't wait to show you around. my husband and i were sitting on the beach and we looked up and we saw this little white cinder block beach shack sitting there by itself. nothing else >> in 2000, liz and her husband bought that malibu shack, tore it down, and spent 7 years
2:28 pm
planning and building this extraordinary ocean front villa perched high above the pacific ocean. >> there was truly no budget in building this house. >> and no expense was spared to fill the four bed 4.5 bath paradise with rare antiques. >> one of the things that i was personally passionate about were antique doors. this is one of my absolute favorite doors from france and this is a metal door from morocco and these doors are hundreds of years old from egypt. that lead into this incredible kitchen. >> up these stairs, just beyond the moroccan sconces is liz's favorite spot in the house her master suite >> i mean, there's so few places in the coast of california where you can wake up and the morning, you have the sun rise out of one window in the deck and the afternoon, the sunset. as far as your eye can see, it's
2:29 pm
nature, it's ocean it's the trees it's water and it's just you. living in malibu is one of the most special places on earth >> it's also one of the priciest cliff side residence and everything inside is on the market for $35 million >> now, like the rest of malibu, that house just got a price cut. it had been asking $57 million last year, now asking $35 million. so you're saving $22 million when you buy that house. prices in malibu beach falling 34% the first quarter with sales volume falling 58% the average home in malibu beach pretty expensive. >> why falling that fast >> well, it's a broader market issue where oversupply of houses at the top end and then the fires in malibu turned some people off the market. >> but you mentioned this is a small house, so the price per square foot is crazy.
2:30 pm
>> it's very high, but all along the malibu coast, beautiful as that coast is, there's nothing else like it with that kind of view and there's just no one else around. you're out there, like being in the bow of a ship. it's amazing. >> thank you, robert frank now let's get to michael santoli for "trading nation. mike >> thank you, melissa. check out chip stocks today. tanking after intel cut 2019 forecast of the semi stocks cooling off after the big runoff bill baruk and santtina sanchez a two day gut check after bad numbers yesterday. >> intel is leading lower. i've been upbeat, very positive with intel for a long time and even a couple of weeks back, called for a breakout above last year's highs right here. that came a false breakout or budding so this week so of course, today, confirms that there is some value down here
2:31 pm
and a pullback looking in the 50 area you could find retracement levels but avoid the id sin kar idiosyncratic risk there's a breakout out above 200 and going to stay above there, you could pull back as far as 185 and stay strong uptrend. i think this overall sector recovers i think we'll find it higher over the next 30 days. >> yeah, gina, even as the sector was making new highs, there were still questions about whether, in fact, the overall cycle had turned for the better and naturally, big china implication doesn't mean we have the trade talks. where would you come down on it? >> that's right. china and qualcomm's kissing and making up with apple some of this is very idiosyncratic and a very mixed bag but the expectation the semis will recover in the second half or if you listen to texas instruments the first half of next year but the point is that this recovery and this soft
2:32 pm
patch is likely to find some footing later in the year. i don't think you don't give up the semis all together but be careful which stocks you're in >> yeah, we'll see they certainly peak well below the market last time let's see if they can hold up in these levels at this point thank you, phil and gina for more "trading nation," head the our web site or follow us on twitter at @tradingnation. >> intel down nearly 10% today and "wall street journal" reporting apple discussed acquiring intel's smartphone modem chip business. that business could be said to fetch a couple billion dollars intel hired goldman to handle the sale of it all according to the journal and intel plans to look for a buyer for that business we know recently, apple decided to settle with qualcomm instead for the 5g chips and intel shares higher on that but of course, were still hurt by earnings today. ahead on "power lunch," the biggest moments from the cnbc
2:33 pm
stock draft. what were the big names left on the board and which team will take home the championship we'll look into that plus, from the stock draft to the nfl one how are players protecting their newfound millions? "avengers: end game" smashing preview records. how big of a win will it be for disney all this when "power lunch" returns. >> and now, the latest from tradingnation.cnbc.com and a word from our sponsor. >> a double top is a chart pattern that suggests an uptrend might be ending and ready to reverse. sometimes called an m-formation because of the way it looks on a chart, a double top consists of two well defined peaks at approximately the same price traders often view a break of the lowest low as a bearish signal i'm lee boel i'm working to make each day a little sweeter.
2:34 pm
♪ to give every idea the perfect soundtrack. ♪ to fill your world with fun. ♪ to share my culture with my community. ♪ to make each journey more elegant. ♪ i'm working for all the adventure two wheels can bring. ♪ at adp we're designing a better way to work, so you can achieve what you're working for.
2:35 pm
2:36 pm
i'm courtney reagan. here's your cnbc news update at this hour. president trump telling the national rifle association his political opponents want to take away their guns. he spoke at the gun rights group annual convention for the third year in a row. >> and recent days leading democrats have proposed banning new guns and confiscating
2:37 pm
existing guns from law-abiding citizens what they don't tell you is the bad guys aren't giving up their guns and you're not going to be giving up your guns either >> a spokesman said soldiers exchanged gunfire with suspects after attempting to raid a building in sri lanka's eastern province during the search operation, authorities found a stalk of explosives and other raw materials used to make bombs. u.s. marine killed in afghanistan honored today. christopher was also a 15 year veteran of the new york fire department his flag draped casket arrived at the funeral atop a fire in keesan one of three americans killed by a road side bomb last month. that's your cnbc news update back to you. >> thank you, courtney reagan. the picks are in for the cnbc stock draft but the game isn't over yet this year, you could play along at home with the stock draft
2:38 pm
challenge. pick the team you think will be in the lead by the closing bell on may 28th and you could win a trip to cnbc world headquarters. there have been more than 3,000 entries so far you can still enter until 9:30 monday morning so head on over. stockdraftchallenge.com to enter and get all the rules. if you missed it, here's some of the highlights bethenny frankel taking facebook, jarvis green with netflix. noah syndergaard betting on tesla and here to react, cnbc contributor michael farr great to have you with us. >> thank you nice to be here. >> i know you're glued to the tv for the whole time which team had the best? >> absolutely. you know, i think it's very hard to bet against mr. wonderful so i'm going to go and a little bit of a contrarian with kevin o'leary and i'm going with kevin because stocks are up 25% since december, end of december. 25%. so you're trying to figure out what's going to continue to
2:39 pm
perform in the environment to come, not really what's had the momentum so i think kevin's picks with johnson & johnson up around 14%, lackluster performance, p&g and phillip morris up 20%. if holds steady, those are good strong value names. >> worst team? >> worst team. this is tough because they're all pretty fabulous and i'm probably the worst guy to pick a short-term contest because i invest for ten years at a time but i think jarvis green's list of constellation brands, netflix, lululemon, those stocks are up the worst ones up 36%, the best so far since the lows in december the best one, netflix, up 60% already. when you buy something up 60%, when a market is up 25%, i don't know how much more room you expect it to run >> all right michael, hang on for a minute. we talked about the stocks that were taken but also a lot of stocks in discussion and controversy about some of the stocks that were left on the board. and dominic chu is here to look
2:40 pm
at those that were left behind the orphans, dom. >> i had the cards for each team yesterday and marking down every pick as it came along so as i looked at the 60 plus stocks, plus 3m, by the way, not up on the board since we put it in late, i was curious about the names not taken because i thought to myself, if i were picking in a contest, these are ones i would look at take a look at these ones left on the board if you know the ones that were taken but why not lyft and the reason why i say that, not because i'm proposing that people take and buy lyft stock but this is a stock for a contest that's been beaten down so much. could it get a bit of a short-term pop and how powerful could it be? we don't know but could be good for a contest. another one i thought was interesting, could go over here, gilead on the biotech side of things and maybe that's a way to play an underperforming part of the health care sector health care, the worst performing sector so far this year and you take a look at other names like alphabet. there was a time when a stock like alphabet/google would be
2:41 pm
one of the first stocks taken out there. also, canada goose if you look for that big pop some of these names have the ability and variability to give you a big boost for a contest standpoint i'm not saying for anybody's overall investing portfolio but if you're picking for a contest, guys, it could be some of the names to provide some fire power. maria ho's strategy was variance we'll see if those names could have done better. >> michael farr, any stocks left dom just talked about them, you think were the missed opportunities? >> yeah, you know, and i think yes, a couple there. i've gone to the safer side of the street already with kevin o'leary and intel cut its forecasts too on basically a concern about demand and revenues going forward and chip demand so i still go to that and then i continue to like google in an earnings sort of a recession, you've got a 20%
2:42 pm
grower with $100 billion in cash i like google. i mean, they're very dominant. j.p. morgan, going to bet against jamie dimon at this point? i think not. the banks have been so beat up here's a couple of banks to perform. i would have had them on my list. >> michael, i want to go back to your choice of mr. wonderful's trio of stocks as your faves mr. wine-derful, you preceded that >> i cherish the thought. >> but it's dividends but you're a dividend guy, but they don't count in this. do i extrapolate from your defensive tilt here that you were defensive on the market as well >> well, okay, so i think a lot of the easy money from this rebound has been made. the markets just made new highs again this week which is wonderful, is to be enjoyed but also a little bit sobering when you have to say, jeez, we're making new highs if that old rule is still true where you buy low and sell high,
2:43 pm
this sure isn't low. so take a look at those performers that have done really well, maybe you want to trim some of those positions and invest in those things that have solid balance sheets and good earnings growth that will do it and can endure a downturn. there's still a lot of months left in this contest, a lot of months left in 2019. i think it's so important to be able to have your money at the end of the day money is awfully hard to make. let's try to keep it and grow it slowly nothing wrong with getting rich slowly >> all right thank you so much, dom thank you. michael farr thank you for the latest news on the draft head over to cnbc.com/stockdraft. now to the bond market rick santelli is tracking at the cme. rick >> reporter: hi, melissa lee everybody seemed to have been scratching their head early. wow, 3.2 strong gdp but, you know, take a look at the pce core at 1.3. the smallest personal consumption expenditure, of course, since q1 of 2015 it played havoc with the markets.
2:44 pm
although it seems though equities are getting back on track, very squeamish response continues in treasuries. look at 2 year note down 5 on the day and 10 on the week, looking at three day of 10 year yields they're down 3 on the day, down a half a dozen on the week maybe the dollar index is also interesting because, you know, it acted sort of like the other markets and in the context of what you just looked at, the 10 year, the difference is the dollar went higher and gave some back but still up there, 10 years gave some back and they're extending a three day downside with the range and completely different dynamic and up two-thirds of a percent on the week on the dollar index, a week where we have the potential to close with the 98 handle and finally, the dollar you want, the chinese currency steady eddie for a long time and very quietly yesterday as you see on the february 1st start it had the highest close since the third week in february now turn back down again, but we want to monitor this maybe the volatility has given us clues about when the trade deal will get done
2:45 pm
back to you. >> no one picked the tlt, rick i thought it was interesting it was even in there. after the break, the beginning for disney's ticket sales. how many box office records will the movie smash? we'll see. from tackling to teaching. why one nfl star is helping his temas arhoamtelen w to invest in themselves stay with us my experience with usaa
2:46 pm
2:47 pm
has been excellent. they really appreciate the military family and it really shows. with all that usaa offers why go with anybody else? we know their rates are good, we know that they're always going to take care of us. it was an instant savings and i should have changed a long time ago. it was funny because when we would call another insurance company, hey would say "oh we can't beat usaa" we're the webber family. we're the tenney's we're the hayles, and we're usaa members for life. ♪ get your usaa auto insurance quote today.
2:48 pm
huge day for disney and for oz perlman who picked it in the stock draft, "avengers: end game" opening in the u.s julia boorstin joining us now. julia? >> reporter: melissa, "avengers: end game" is well on its way to bring in between $900 million and $1 billion at the worldwide box office this opening weekend. now, that would fly past the last record holder no matter where it falls in the 900 to 1 billion range. the last record holder was "avengers infinity war" and $60 million were a record breaker pushing the film's ticket sales in the first two days above $300
2:49 pm
million worldwide. china, the world's fastest growing movie market is responsible for about half of that in addition to rave reviews, 96% positive rating from critics on rotten tomatoes, "avengers" is top trending topic on twitter for days now this isn't just a big win for disney's studio which spent a reported $400 million to produce the film, but it could also benefit disney plus, the streaming service that disney is launching in november because they will be featuring marvel and all of these characters in the movie on that disney plus service. >> julia, thank you, julia boorstin up next an nfl player who gained fame for a colorful explanation of compound interest is about to join us to talk about the nfl draft and what all those soon to be millionaires need to do with their money. carl nassib will join us when "power lunch" returns. as investment management professionals, let's measure up.
2:50 pm
cfa institute. craftsmanship and technology that have made the rx the leading luxury suv of all time. lease the 2019 rx 350 for $409 a month for 36 months. experience amazing at your lexus dealer.
2:51 pm
let's build a better let's create jobs,ing. build bridges, insure prosperity. as investment management professionals, let's measure up. cfa institute. 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.
2:52 pm
welcome back to "power lunch. of course the nfl draft under way, still under way it's still going on. look at the thousands of people there. and of course the draft makes instant millionaires out of many young players including the top overall pick from last night kyler murray the oklahoma kid second guy in a row to be picked
2:53 pm
number one second quarterback in a row to be picked number one out of oklahoma today in our segment invest ready set grow which we do in partnership with the savings and investment app acorns we're joined by tampa bay buccaneers defensive end carl nassib. he works to teach his teammates the power of saving over spending welcome, first of all. >> thank you very much >> where did this interest in personal finance and in teaching your fellow players how to do well by their money come from? >> well, it came from when i first got drafted in the nfl i didn't want to pay somebody to manage my own money so i took a while but i educated myself and wanted to share that new knowledge with my teammates. >> and your mantra basically as i understand it, you have an acorns account among other things-s to keep it simple you favor index funds. >> i do. >> you favor a simple strategy of using i.r.a.s, roth i.r.a.s especially >> absolutely. i was really pleased when i started my acorn account all the portfolios they had set out for me were almost the
2:54 pm
percentage my portfolio i had set out for myself that was pretty reassuring being young and -- younger and we have a much larger time span to invest, so i think with the long-term investing index funds are a great tool and something that in this economy it's been great for everybody. so it's been great for me too. >> being young you always think that you've got all these years, but as a football player you don't really know how many years -- >> absolutely. >> and hopefully you have many, many years ahead of you but you don't know what injury will bring you. so how do you plan for that sort of career? what is the advice you give to your former teammates? >> great question. what i was told a lot is what are you going to do? you're in the 1% now but there's a big caveat i'm in the 1% of earners and we're in the 1% of earners but 1% of wealthy people, that's not us except for the top overall picks, the big contracts >> russell wilson. >> exactly yes, sir he's up there. so i just want to tell them
2:55 pm
realize your status. i have a friend who's been in the nfl for six years and he just told me yesterday, just got my first million dollars and six years it took him. it's a matter of realizing your spending habits and living below your means more and more nfl players are doing that every day >> sure. that's what i was going to ask you have an interest in this and there's a great moment in hard knocks on hbo where you're actually trying to explain it to your teammates and they're eating clams or mussels, something, broccoli. >> we eat healthy. >> i was very impressed. you have an interest in it what about everybody else? what more can be done to make sure is it at the college level that these fundamental concepts get across because you shouldn't have to be in your 20s to learn about this. >> so what really interested me, i had the same reactions when i learned about the power of c compounding. i called my mom. i was like is this really possible and she said it absolutely is. and not really many people know about it and i just think that's such a big thing. is not scaring young nfl players
2:56 pm
like if you spend your money you're going to go broke but i think it's so much better to put a positive spin on it and say look at the opportunity you have to develop real wealth and all the great things k do with that >> living below your means is never a bad strategy >> it's a good one pretty solid >> i noticed one thing in the notes. you spend more in the off-season thanyou do in season because why? >> well, i don't live near any of any friends or family so i have to portion off part of my budget. >> you travel. >> yes i'm here in -- >> and when you're in season i assume you eat a lot of food supplied by the team >> yes they do an amazing job feeding us >> you stay under a 3,500 budget >> during the season >> how closely do you keep track of this? >> much better now when i first got in the nfl i was not that good at it. but i do that first of every month. >> how do you do that? $5500 a month in the off-season. do you actually log it >> i do. i've gotten much better at excel. excel is not easy. and i've gotten better at it but no, i log it
2:57 pm
try and get it to at least where i only have $400 or $500 miscellaneous spending and then everything else is accounted for. >> let's talk a little football. devin white, lsu linebacker. very fast. >> yes, he is. >> that was the first pick of your new coach, bruce arians are you looking forward to playing with him >> i am. >> he's a player's coach everybody says >> i am. jason light our gm and coach arians are doing a great job so excited for this year >> we wish you luck. >> thank you so much >> thanks for what you do. >> thanks o'for having me. appreciate it. >> we'll be right back you should be mad at people whos forget they're in public. and you should be mad at simple things that are unnecessarily complicated. but you're not mad, because you're trading with e*trade, which isn't complicated. their app makes trading quick and simple
2:58 pm
so you can strike when the time is right. don't get mad, get e*trade and start trading today.
2:59 pm
[horn honks] man this is what i feel like when i wear regular shoes, cramped and uncomfortable. we can arrange a little upgrade. which is why i wear skechers... wide fit shoes. they have extra room throughout. they're like a luxury ride for my feet. try skechers wide fit shoes. ifor another 150 years. the fire going they're like a luxury ride for my feet. ♪ to inspire confidence through style. ♪ i'm working to make connections of a different kind. ♪ i'm working for beauty that begins with nature. ♪ to treat every car like i treat mine. ♪ at adp we're designing a better way to work,
3:00 pm
so you can achieve what you're working for. ♪ "closing bell" starts right now. have a great weekend, everybody! it is the final hour of trading. we could get record closes on the s&p and the nasdaq i'm will fred frost. >> and i am sara eisen p after a busy week jeremy siegel will tell us the number one headwinds facing this market >> and "the avengers" already breaking records of its own and the amc ceo is here to tell us how his theaters are looking to capitalize that's a cnbc exclusive and it's coming up. >> next week big earnings from alphabet and apple we'll tell you how to get ready and discuss how those reports could shake up this market "closing bell" starts right now.

43 Views

info Stream Only

Uploaded by TV Archive on