tv Countdown to the Closing Bell With Liz Claman FOX Business May 21, 2018 3:00pm-4:00pm EDT
i never want to see her give it up. there is some economic and tax reasons to do so i'm still she still an american at heart. all right liz is going to take you to the nice rally that we head on our hands. liz, at least for the bowls. breaking is. under somewhat unprecedented circumstances at this very moment a major meeting is convenient and inside the white house. the participants president trump and deputy attorney. they spoke with multiple trump campaign officials. we are watching this very classy. the markets do not seem to be thrown off by this breaking news. the dow jones industrial average we were already seen
triple digit gains. on the expectations that looks to be for now on hold. present trump giving wall street a boost this morning. as much as our farmers can produce. the markets then continue to gain steam before the opening bell again. this time treasury secretary moved from the trade were being on hold to his claims now that there is a framework agreement. we still have no details on what happened to the $200 billion target that was promised they would buy more of. the farm bureau federation
president is here to react exclusively. what about the farm bill that completely collapsed on friday. mike pompeo warning that iran is the strongest of sanctions. they will get even worse's. and then he is the top reigning expert in the world. the rhetoric not scaring wall reet either. at least for now. between the u.s. and china. and also boosted by $28 billion in merger deals. and the russell 2000 another all-time high right now. up nine points. in working the seat yet another record. an hour to the closing bell on this monday. let's start the countdown.
i want to tell you that we had producers who are watching the white house scrutinizing every door at this moment. the breaking news is as we mentioned present trump or may have already begun huddling right now be behind closed doors with rod rosenstein who you could argue is a fellow of the president at least that is the president sees it. he will be there with the president so while fbi they also had it there. a day after president trump demanded on twitter you know what, i hereby demand that the department of justice investigates whether it infiltrated the presidential campaign. this on previous word that there was an informant who had
contacted at least two members of the trump campaign during the campaign. the fbi said to investigate what i thought was an investigation to the russia meddling. maybe this was for political reasons. working to bring up any any headlines for this meeting. anything that we get we will bring to you. they are reading between the trade lines. not anything happening in the white house at the moment. no trade war. that is flashing on their computer screens. with a solid rally on our hands at this hour. the highest level since march 14. it had been up 317 points. right out of the gates when markets opened. we are in dow 25,000 watch. i don't even know where it have it anywhere.
stick around to find out. what is doing well. industrials are charging ahead right now. currently that is the best performing sector in the s&p 500. you can see some of the big industrial names. often these are the ones that sell overseas. very much in part doing business in china. look at boeing in here. at three and half% gain. let's flip over. we could go with all of these trade laggards. they are taking a bit of a beating. they are downed nearly a 5% at this hour. u.s. and china. is a truth on trade war. that would mean that the whole
situation and by the way the steel tariffs are still in place but that might come down. so the price of steel might come down. we have this just breaking. the federal communications commission says juergen have to wait longer to see whether the sinclair plan will go through know a decision according to the fcc before july 12 so you have the tribune down 2%. the fcc wants more comments when i say that that means when they ask the public or competitors for comments on white something should or should not be allowed to go through. doesn't we will have more clarity on that. most likely it can be traced back to a common of the trade tension situation. the u.s. and china agreed to further thoughts.
the deficit right now. it's anywhere and around $375 billion. but both sides agreed to speak further into narrow it to $335 billion. right now it seems to be none. this is not a definitive agreement this is what we hope will be a path forward. if it doesn't work. the tariffs will go into effect. nothing has been lost at all. the minute blake burman heard that. you set treasury secretary steven mnuchin there. they said we don't really had one right now. we have a framework tell me what happened with munition. the president seem to suggest as well. that there much further along than he let on.
went on twitter and wrote the following. china has agreed to buy massive amounts of additional farm agricultural products. one of the best things to happen in many years. and then he wrote they come down for the first time. that was about 730 this morning. it is a framework agreement. it is an agreement they have to go over and turn that into a signed piece of paper as i described this is not a government to government purchase order. we do have an agreement with them. as to what will be executed. you can expect more agriculture. the 35 to 40% in the near future. by the way larry kudlow
explaining what he said. the trade war is been put being put on hold. in the driveway here at the white house of the north line. that china has stopped its retaliatory measures. when he asked how long that might be. after the midterms in november. he would not put a timeframe on anything. we're almost splitting hairs with the word framework or we definitely have a deal or we don't. they are on the same page but maybe not on the same paragraph. there is an agreement on a framework remembered with the tax reform there was a framework before there was tax reform. not necessarily an agreement on a major big package. that is a splitting of the hairs that we try to get out there. at least you and i are on the same page. i'm happy about that.
i want you guys to check out the one week chart. earlier starting last week there was confusion about whether we would actually have some deal. there was a white house insider who said the chinese are to cut $200 billion from the deficit. and then the chinese said no. now we see the big move. today's trade rally looking to wipe out washes. the dow on friday closed 314 points lower since march 1 right now though. we are just slightly below the flatline meaning that we will if anything gets better we can see it move to the green. on a day like today do you believe this.
because if people bought a news that theirs can be $200 billion and don't worry about it will start buying that stuff out of china. if to be in the mood before the actual announcement. all the sudden it went above that 343 level that there watching. with the anticipation. that was a good trade. they could do well. as well as other things.
and the currency. it was about getting in and good levels. if we were looking at a six month chart here. you absolutely see as not looking good because things are looking better. i'm not sure oil as the china trade. and there is news on iran. and how you view that and how you view the names in the oil patch right now. i had been consistent on this. i think fundamentally oil is too high. the nervousness in the middle east there is still in products that will go up a lot more than oil is going to go out. every time it goes up and when they come back down. it doesn't come down as much.
i wonder how that works. it has to be able to install the products. i don't think oil is. good to see you guys. energy companies trying to read between the lines. what do we see at the moment america's new secretary of state. if it does not fall in line. how does that play to all of those americans and foreign companies that were just given the green light a year ago. we are going to take that up when countdown comes right back. you may only some of these names.
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from the unacceptable path that is chosen. secretary of state mike pompeo just hours ago. putting iran unnoticed. but what is the real story. about how the sanctions are going to impact u.s. and global businesses that already been given the green light about a year ago jumped back into the iranian market. one of the world's top experts on iran. welcome. thank you for joining us. secretary pompeo says these will be the most painful in history can you give us an idea if you were to guess what the new ones are supposed to look like and which sectors of the business world would be affected by this.
i think for the business world the name of the game is risk aversion here. you want to know their due diligence. and ultimately because you don't know your customers customer the name of the game will continue to be at risk aversion. it's up to washington to re-create that pressure that existed in 2010 to 2013. it will be back to the future here. let's talk about some of these companies that already dove back in. they were talking about general election -- electric. and european things as well. when you look at what these would look like does this mean that you have to stop drop and roll. if you are a u.s. company right now and and everything
they're already seen and they are going to put on ice and natural gas project that was supposed to start on the ground in iran not because it's an american company because it's a fresh -- french company. right now in the u.s. is looking to not only go after iranian banks and businesses but those who help. and those who do business with that guard corps. intertel is very important to know here. it's very risk tolerant. it was very hard to get them out of iran the first time. we will wind down and determine the operations. and just other other company. they had put out.
u.s. sanctions will target critical sectors german companies doing business in iran should wind down operations immediately. i'm not sure they are going to but totality for example said it will because it accounts for their global financing. what if you have a lot of u.s. shareholders. to me it would be. and if you touch the u.s. financial system that post november that's already reimposed in looks beyond that with additional sanctions and designations. now in germany and some central european companies are actually quite a bit -- interesting.
small and medium-size enterprises. they are not the ones to look at here. i think the bell weather is a big firm. up 66 percent. we will be watching it. thank you for your expertise. we appreciate it. the closing bell ringing and 37 minutes snapchat. company heading higher after they raise it to neutral. from the price target of $9 from $7. a memo to them. they are behind already. $10.77 in climbing. snap is up by one and three quarters% right now. up next they are rolling out the model three. ramping up production but pushing the upgrades like an
old school car dealer. where is it a bait and switch. they're gonna decide in just moments countdown is coming right back. ght?!? aha ha ha! a flying machine? impossible! a personal' computer?! ha! smart neighborhoods running on a microgrid. a stadium powered with solar. a hospital that doesn't lose power. amazing. i like it. never gonna happen.
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folks kind of second-class citizens. the stock is up. they raised raise the target price so upside of 70%. the only one getting there hands on the model three are the ones that ordered the premium version. those that ordered the basic models you are still waiting at this point he is defending his position saying the shipping middle and -- minimum cost. it would cause tesla to lose money into he was busy performing that.
at close to $80,000 that's equivalent to a bmw m3 and $80,000 are not getting that price either. this kind of trimmed the rally that we saw consumer reports said i can't recommend the model three because of big flaws they see and safety. that includes a really long stopping distance that's even longer than the larger f1 50 pickup. i think the issue with the model three i guess if i were to play devils advocate. i don't know what other companies would do that. we started to look around on who has started the best customized website. we found the mini cooper. you can pick and decide. here's the mini cooper. and i think i don't want the two-door then when you look at
the colors. would you go with me on the blue to match my dress. you get there and you say let me continue building but it started at 202000 with a convertible were up to about 25,000 and then if we want the iconic plan that's this because it has everything. now got 34,000. if you add something called the john cooper works a 45,000-dollar car my point is is in every car company doing what tesla is doing meaning you start up with the base. it didn't even have a passenger side mirror that's
how long it was. they were not required. that's the way they make money. in part of the reason why they raised their stock prices was because they expect them to make more money per tesla model three because they get to upsell a lot of these brand-new model threes but yes, it's all about that. you want to look good. susan, you and i will look good in this little mini cooper i think. everybody should look out for me and susan. we should be noting that the stock is not getting hammered on this news. it's up about 2%.
the closing bell ringing and 28 minutes. corn is hitting a two week high after actually having a nine-month high after president trump said china will purchase as much agriculture product as our great american farmers can produce. that is a lot. but should you be buying in as both the u.s. and chinese trade negotiators say there is no from deal. nobody more anxious for clarity he's here in a foxbusiness exclusive. what he is hearing and what farmers need to hear and what he must think of congress after the farm bill blew up on friday. brighthouse financial allow you to take advantage of growth opportunities... with a level of protection in down markets.
check out the media headlines. according to unnamed white house sources china had given in and agreed to purchase $200 billion more in u.s. goods. that is a lot. in the world of chinese trade diplomacy acting like america one and they lost is apparently a very big no-no culturally even if it's true. they have negotiated successfully with the chinese told us three weeks ago how both the sides can lend the type of war. don't rub anything in their faces. make them look like winners to the extent possible. before we get to where president trump is on allowing anybody else to save face.
i have to ask you about the farm bill which collapsed on the arm bill. not because they don't like the farm belt because they wanted to use it as a bargaining chip for immigration. what do you think happened there. we know that it was good to be a very difficult challenge for us and be partisan. but we have a really good week last week. we have some damaging amendments. and of course we lost. we are frustrated and concerned. and basically that this good farm bill that the culture committee and that id. the issue is a very big issue to agriculture also. that is our workforce. this illustrates why speaker paul ryan maybe needs to vacate the position now. he doesn't had control of his
caucus. from where you stand does paul ryan need to go sooner rather than later. >> this is a good man that's done a great job. we don't have to remember them back before. where we have the same kind of challenges. they are not easy legislation to get past. and of course in the end we always look for it to be in the bipartisan bill. this is about the food security about country. and being able to make sure that rural america continues to thrive and lead the way in agriculture across the world. he got hammered by some real critics on this. saying he thought he could get it through and he couldn't. let me now get to this trait a situation that appears to be
cooling just a bit with china president trump tweeted and i just want to read this to you. under our potential deal with china practically as much as our farmers can produce. i would imagine that this makes you absolutely jubilant. do you believe it. i think at the present is working hard to increase our exports in all areas of american businesses. we had been nervously waiting for him to give us some insight on what he thinks this may go. they're ready to meet the challenge. as long as we have good research and development dollars being spent to keep us on the cutting edge american agriculture can lead the way and step up to the plate we still have what they slapped on the port producers here in
the united states. a 25% tariff and that was in response to the 25% tariff that the united states have slapped on chinese steel and aluminum. the pork farmers certainly are concerned i would imagine again some of this is still in place. considering what we saw last week. the chinese are in to buy that much more from us. the chinese did not save face. is there a delicate way to do this where both sides could actually win. the opportunity to call out those numbers this early in the game what is really what we need to focus on as they are actually sitting down and talking about this. and were gonna try to work out some agreement. none of us really know you want to trade with china. let me just get this clear.
they had 1.4 billion people over there that need our products. i look forward to seeing it at least come through and help our u.s. and farmers. they are ahead in china. we understand that. we are doing everything we can do to minimize that damage to our pork producers. we will make up for that and i think will make up for it soon to come. one question before we go. what would you say to president trump right now if you were listening on this issue. we are very encouraged by the news that we have this weekend. we are good and to continue to work that we can expand our agriculture exports. that is where the growing middle class population is. thank you for the opportunity. tell the folks we said hi.
i will tie something. the closing bell ringing and 17 minutes. nearly 30 million americans tuned in for the royal wedding on saturday morning. i did our very own prince charles watch i'm going to ask him to react to the big day. he so touchy-feely. and how he is. including john flannery in the report card. can i get some help. watch his head. ♪ i'm so happy. ♪
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you can use it we are looking at general electric. it is still up. it's dropping the session lows after charles gasparino tweeted out my mins ago about a possible dividend cut. it's not funny. some people are trying to get this up. here is what we know. they announced today. they are doing a deal especially a merger with another company they head about 2.5 billion dollars from that. they've david billion dollars from the sale of the healthcare unit. they are still about 17 alien dollars short of the goal of cutting $20 billion in cost cuts during the first year in
office. with people inside ge are telling me the talk insight is that there is a further cut to the dividend to make up this difference. there's just not enough stuff that you can sell. they are talking about that internally. flannery had a meeting from some executives a couple you weeks ago. even some past executives showed up. the message to him was get moving fast. the cost cuts are not materializing in a rapid pace. i have to do is add up what he sold so far. 2.9% you get out of this. he has three or four things on the block.
it's not enough. what they're saying internally is that it's not enough. the dividend is clearly on the table. it doesn't mean that he's gonna do it. but it's clearly on the table. i would ask that. here is your tweet. i didn't look at it. if you think about it a long term chart. it was like this. a flatlining stock. it was a flatlining stock. it made a decent money. and then all of a the sudden the early 1990s this thing went to the races. it obviously never achieved
through all of the mergers and acquisitions in the fact that it was pumped up by the stock market. it's gone down since then. i think what he has to do is get this here. get this thing in order. get rid of the cost cuts. and may take getting a further cut in dividend. go back to the stated company that was. that makes a few dollars. that is okay. it's not the hype fire it once was. i think that is the challenge. that's i can to be easy. and he has an issue here. where if you have to cut $20 billion out and you're getting only $2.9 billion from the transportation which is a storied unit of ge. he's got a lot more to go. and that's a problem with this. we do have to mention the biggest financial boom when it comes. did you watch the royal
wedding. i saw a few pictures. the pageantry is there. with a huge hit. 30million americans tuning in life. in the royal wedding as a business was huge. but the sale of all of that. raked it in. and just free pr. bring a $400 million for britain. one of the best selling souvenirs the 49-dollar swimsuits imprinted with the pictures of that bride the bride and groom. right behind those in popularity. was the prince charles one piece.
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♪ liz: may look cool the dow is up 300 points but the russell 2000 is on track right now for the fourth straight gain. i'm just looking at these numbers here, it is any gain that would bring it to that, small and mid-caps do very well, especially when there is trade tension even though it is down just a bit. brandywine portfolio manager, managing director patrick kaisar is here. what do you know that maybe trade war, or trade tension might be tamping down a bit temporarily and we don't have great visibility on much else? >> yeah. so it is like anything else with the stock market. people tend to get emotional on the headlines, fear, greed,
emotion drives the market but we're value investors. talk doesn't often change value of business. we take a longer-term time frame. so we tend to at brandywine look through the noise. once we get policy or something more firm that maybe things change at that point but we're really at a stage where there is a lot of talk, a lot of bluster. people like to trade on that in the short term. but if you're really focused on investing the long term, it doesn't matter much. melissa: increase to the upside and downside for volatility has been quite pointed. >> yeah. liz: in you're a value investor what is the definition of value, give me names you feel fit into those parameters. >> definition of value is buying things less than they're worth. we look at free cash flow. so many soft names we like in the energy space, we like a lot of names. one of our favorites is canadian fairly -- natural resource. everybody think oil is going
down to 40 or 50. we don't think oil is going down to that level. oil is going to 80 or 60. this has tremendous amount of free cash flow. pell and amazon alone if the s&p 500, are worth more than the entire energy sector. i don't think that lasts. could be apple and amazon going down, energy going up. we like that a lot. they are generating a lot of cash. something underappreciated is something like kkr. private equity manager, alternative asset management. has a lot of tailwind, still raising money. kkr is converting to a corporation from limited partnership. should attract a lot more investors. very cheap stock. underappreciated value, oil is saying going up, don't buy automakers, cycle is rolling over, general motors, strong balance sheet, cheapest stocks in the world, ebb tax nice yield. liz: i would say buffett likes
it. you're not buying at highs of the year. [closing bell rings] that is why pat kaisar invited back. he gives us idea. dow on pace for the fourth straight record close. the dow around 25,000 mark. 11 points above it. that will do it for the "claman countdown." melissa: stocks surging as trade send shuns beginning to ease between the u.s. and china. still off the session highs, but huge gain in the s&p 500. nasdaq also in the green. it is a new record close for the russell 2000. fourth in a row. i'm melissa francis. happy monday. david: happy monday, thank you for joining me for my daughter's wedding over the weekend. we'll tell you about that later. i'm david asman. glad you could join us after the bell. first what else we're covering very busy hour. toning down the rhetoric on tough trade talk in china.