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tv   Countdown to the Closing Bell With Liz Claman  FOX Business  February 28, 2019 3:00pm-4:00pm EST

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one, they preannounced earlier this year. it was really surprising. came out on earnings and delivered better than expected news. now you are seeing buyers come back in. this stock is still well off its highs. it's an opportunity. charles: thank you very much. got it all down on tape. right, liz? we record all this stuff. liz: we do. hopefully we keep it. archives. charles: archives. liz: a squishy word. let's hope we have them. charles, thank you very much. breaking news. even with the pleasant surprise that fourth quarter gdp was stronger than expected, look at these numbers. investors are scratching their heads and keeping their hands off the buy button as we come face-to-face with the final hour of trade. the dow, down 60 points. the s&p down five. the nasdaq lower by 11. team trump quick to pounce on the number. half an hour ago, national economic council director larry kudlow took the stage at the conservative political action conference and used the 2.6% growth rate under president
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trump to punch hard at socialism, but the good economic news comes after the sudden collapse of the president's summit with north korean dictator kim jong-un. there will be no nuke deal for now. but now the north koreans are weighing in on what they say happened, and it contradicts what the president is saying. we are getting this all covered and bringing it before you. and we are waiting on elon musk's big tesla surprise. our panel has their guesses on what the electric vehicle visionary will roll out in less than two hours. plus, seven ifs that must be in play if the market is to enjoy another boon by the end of the year. at & t's content consolidation, and charlie breaks it on amazon's yes to ria regional sports network. let's start the "countdown." liz: this just hitting the tape.
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breaking news. dallas federal reserve bank president robert kaplan speaking out at a real estate council of san antonio meeting while discussing the fed's balance sheet, he noted that it needs to be a viable tool for the federal reserve during the next downturn when and if that downturn comes. what does he mean? of course, during the financial crisis, the fed inflated the balance sheet, printed more money so that it could help balance a very ugly stock market picture, an economy picture. kaplan also noted that the balance sheet should be sensitive to politics. this contradicts fed chair jerome powell's stance that politics should play no role in monetary policy. so we are watching all of this right now and what else are we watching? stocks are falling to session lows just moments ago on this final day of trade in february but it's actually been a very strong month for stocks. look on your screen here. we do have the dow jones industrials seeing a gain of about 3.75% for the month.
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we have s&p up 3%, the nasdaq up 3.5%. all three major averages up for two straight months with the dow jones industrials seeing its best two months since august of 2009. computer and tech titan hewlett-packard, though, is plummeting at this hour after reporting better than expected first quarter earnings and increasing its annual forecast late yesterday. what's wrong with that. bank of america downgraded hp to underperform from buy. the bank also lowered its price target from $30 to $19, that's a 20% cut there. we are at $19.36. citing lower confidence in hp's print supplies business. hewlett-packard is on pace for its worst day since 2011 and what does that mean? means it's down 18, call it 19% right now. troubled retailer jc penney soaring but look at the price of the stock. okay, it's $1.49 but it is jumping 20%. earnings news wasn't exactly fantastic but it does appear the holiday sales season wasn't as
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bad for jc penney as investors had expected. sales only fell 4% from a year earlier, while the new ceo vowed to take quick action at the retailer. the company lost $255 million last year. jc penney announced it plans to close 18 underperforming stores as well as nine home and furniture stores this year. we'll see. breaking news again. we have a lot of that. president trump depart iing alaa in just the last few minutes after making a surprise stop there on his way back from vietnam. the president stopped to speak before the troops who are stationed there, and he did say that the u.s.-backed forces have taken back 100% of islamic state's territory in syria. he did say that. but he shied away from one very important topic, the economy. he left that to the national economic council director larry kudlow. kudlow moments ago speaking at cpac in national harbor,
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maryland, where he touted today's gdp numbers and team trump's economic policies. let me get to edward lawrence, who has been following it all. he really hammered a couple of things, socialism, et cetera, but you have breaking details on a possible summit really coming together with chinese president xi? reporter: it's very interesting things at least showing up on the calendar. the chinese have blocked off the last ten days of march for a trip by president xi jinping to specifically mar-a-lago. the white house saying only that a meeting between the two presidents will finalize a trade deal. well, now it seems that date would be sometime between march 20th through march 29th and again, specifically at mar-a-lago, because that's what the chinese have available. the chinese are watching as president donald trump walked away from a deal with north korea that could have been a message that he's willing to walk away even if everything the u.s. needs, if everything the u.s. needs is not in an agreement with china. >> we'll see what happens with china. i think we have a very good
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chance. their numbers are down, but i don't want that. i want -- i want them to do great. but we have been losing anywhere from $300 billion to $500 billion a year with china for many, many years. reporter: treasury secretary steven mnuchin says they are close to finalizing a deal. he says it's 150 pages right now, with 27 specifically focused on protecting intellectual property. u.s. trade representative robert lighthizer says enforcement will play a large role and the chinese acknowledged it must be part of the final paperwork. the white house economic advisers say a deal with china will kick-start this already glowing economy. >> we got our economic report this morning. the economy's growing at 3%. that's what we told them. trump policies are working. lower tax rates, deregulation, trade reform, energy opening,
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conservative judges, foreign policy strength, blue collar workers are booming for the first time. reporter: as you know, the white house advisers saying that trade deal would then jump-start the markets again. as you know, the gdp came in for the fourth quarter at 2.6%, giving us a 2.9% gdp growth for last year. for manufacturing alone, i should say, that is an average of 19,000 jobs were created per month and that was the best year in two decades for manufacturing. liz? liz: it sure looks good. it really does. let's hope that the whole global picture doesn't drag it down. edward, thank you very much. that stronger than expected growth number, not helping the markets today but the dow is actually on track for its best start to a single year since 1987. do we all remember what happened in 1987? let's take you inside the time machine. 1987, that's the blue line, started off with a bang before
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an epic crash on october 19th during which the dow crashed 22.6% in a single day. as you can see, the 2019 line, the yellow line, because we are only two months in, so far looks like a carbon copy start of 1987. for the record, in 1987, by the end, the dow recovered to close higher by more than 2% that year but from the end of february through the end of the year, the dow lost about 13%. so even with an 11% gain so far this year, are we in danger of seeing a 1987 style repeat? to our traders. guys, what signposts should investors be looking out for here, and sarge, i don't see anything really horrific at the moment except maybe simply that we have had such a long run-up. >> tell you what, you know where i was in 1987? i was about 75 feet over there. so i have been in one place for a pretty long time. all right. this one's going to happen,
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folks. i think we're in a better spot than we were in 1987. by far. but we are going to hit some bumps in the road. there will be a lot of volatility. germany will go maybe into recession. the ecb will have to turn the money machine back on. this is going to push the value of the dollar lower. when this happens, i think we're going to have a little bit of growth here in the u.s. based on valuation, based on increased valuations for equities, whether we have the earnings or not. what i want the folks to do, avoid pharmaceuticals, avoid financials, get into growth, get into the cloud, get into these names that have the most upside potential while maintaining at least 30% cash. liz: okay. you know what, you just laid out your theory about this. i want to get to scott bauer. as we look at signposts, whether they are economic data or just a squirrely behavioral sign from stocks or investors getting nerve -- investors are always nervous, right? what are you looking for and do
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you think we are headed towards some type of 1987 selloff? >> well, first off, sarge, you really just showed your age there. i was a senior in college at the time. that being said, here are the big differences. the economy is not doing well now, just like it was back in '87. we are starting to see some of the weakness from europe, weakness from asia, seep in. big difference, though. back then, inflation was roaring. it is not here at all right now. in fact, you know, one could almost say we are almost in a deflationary environment. secondly, you touched on this, sarge. look at the dollar. the dollar was way stronger back then than it is now. we don't have that issue. thirdly, the pe ratio of the big major companies back then in '87 were far higher than they are right now. yes, ours have been lowered recently. the mid teens, whatever it is right here, but back in '87 there were 20 plus. big differences between now and then. liz: okay. phil, where were you in 1987?
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here it goes. >> you remember, i babiessysitt you. you don't remember that? liz: thank you. i love you. >> there you go. >> little bit. little bit. >> i still remember '87. i saw the market crash. this has got to be an opportunity and you know, i didn't have a lot of money and i saw these options. it was the first electronic options and i was like i'm going to buy this, couple hundred bucks apiece, i'm loading up on these things and waiting for the market to open and at the end of the day, i'm buying these things, i'm waiting for the market to open higher. the next day, the world's in a panic but believe it or not, the stock market opened sharply higher. the next day, i was like i got to sell these options. the problem is the actual market opened but the oexs did not because the computer didn't go up. actually, they were in the money but by the time they got the computers running, they were already worthless. liz: oh, well. i know you guys will ask me
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where i was in 1987. i was in columbus, ohio dancing on a speaker at a bar named witherspoon's. >> beautiful. >> really? >> phil, you remember -- liz: seeing the market plummet. >> the whole weekend before that crash. >> yeah. yeah. what i remember is before that, there was no correction at all. we were straight up for two years. liz: yeah. people have to be watching these signposts. guys, i think you will be interested in this next piece of breaking news that we need to get to. people familiar with negotiations are telling the associated press that bryce harper and the philadelphia phillies have agreed, you sitting down, to a 13-year, $330 million contract pending a physical. that would be the 14th highest in major league history. not even the top ten. harper has played for the
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washington nationals since 2010. have fun in philly. wearable wars. with the closing bell ringing in 48 minutes, fitbit stumbling in the final hour of trade after the fitness smart device company forecast current quarter revenue below expectations. now, even though fitbit says its health solutions business will enjoy double digit revenue growth, the stock is hurting at this hour from a report that apple was the one that captured half of the 18 million smartwatch shipments last quarter. fitbit is down 14%. apple's down, too, but just by half a percent. up next, the no go on the noko nuke deal. president trump says he cut short the summit with north korea's dictator because north korea demanded too much. but now the north koreans are coming out in the last couple of hours with their side of the story. what's the long game in getting the rogue leader to denuclearize? we take that up next.
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liz: breaking news. the u.n. security council right now is having a meeting. we've got rival ideas here, rival security council votes. one is from the united states, the other is from russia. that is the russian federation ambassador to the united nations. the council is expected at least to vote on these venezuelan resolutions regarding what is going on politically in that country. obviously the u.s. is for the opposition leader juan guaido and right now, china and russia are supporting maduro, the authoritarian leader at the moment of venezuela. we are going to continue monitoring the meeting and see what comes of it. we will let you know. we have a late night development out of vietnam. remember, they are exactly 12 hours ahead. north korea now contradicting president trump's claim that he was the one who walked away from
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the summit talks because the north koreans wanted all sanctions lifted. the country's foreign minister now says kim jong-un, the leader, only asked that sanctions that affect ordinary citizens be lifted in exchange for dismantling his most crucial nuclear facility. so with this he said/he said game in full swing, no one who watches "countdown" should be surprised about the fact that the summit yielded no deal. council on foreign relations president richard haass predicted it right here 24 hours ago. true or false, kim jong-un will bend to trump to denuclearize? >> zero chance. not.001 but zero chance. liz: that was short term. but with president trump telling south korea's leader in the last couple of hours that the u.s. will keep the lines of communication with north korea open, we turn to cliff may, founder and president of the foundation for defensive democracies to game this long-term relationship.
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we are more interested in the future relationship between the u.s. and north korea but first, what's your assessment of what triggered the collapse at the talks? >> i think president trump saw very clearly that kim jong-un wasn't going to make any serious concessions and i think the president deserves a tremendous amount of credit for walking away from these negotiations. he recognized what too often professional diplomats do not which is that no deal is preferable to a bad deal and that's what this would have been at this time. particularly i give credit to president trump because he's under a lot of pressure, not least because of the cohen hearings in the house, to come back with a political win, but a political win at this point might have been a national security loss, and he didn't accept that. so i think he's done very well by walking away from this. liz: he is getting a lot of credit not just from republicans, but from democrats who also worried that there would be a deal simply to hold up and say hey, look, we got this trophy. so yes, this is definitely a
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good development, considering the north koreans cheat and repeat over and over again. but how do we get them to the point where they do what we need them to do, and that is denuclearize? will they, or are we left simply with their promise that they won't test anymore? >> now what needs to happen is that the president, having tried carrots, needs to utilize sticks. now is the time for what the president has talked about in the past but never entirely implemented, a maximum pressure campaign to really weaken the knees, perhaps implode the north korean economy. it's going to require much more additional pressure as well on the chinese who cannot simply have north korea as a little bulldog to nip at our heels and create a threat to our homeland which north korea does, because of close to 25 years of not dealing with the problem that north korea represents. i think we have to now -- we now have to apply the stick and see
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if that works. if that doesn't work, well, that's when you have the pentagon and others looking at plans b and c. but now the time is for maximum pressure. liz: it is important, thoeshugho note, let's call it what it was, he had mocked president obama in the past for doing what president obama i guess had coined or people during that era called strategic patience. well, now what lesson do you think president trump will have learned from this experience and does it square with something that we found president trump -- president obama had said back in 2014. let's listen, then i will have you comment. >> we are not going to find a magic bullet that solves this problem overnight. what we're going to have to do is continue with a consistent, steady approach. we have to present a strong, forceful alliance and we have to prepare for any eventuality
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while still opening the prospect for a negotiated resolution to this long-standing conflict. liz: well, he was not successful. now what does president trump do beyond give them more time to be successful? >> look, strategic patience was a euphemism for doing nothing. for eight years, nothing was done about the increasing threat from north korea, the development of nuclear weapons, development of increasingly sophisticated missiles, missiles that could hit our friends such as japan, could hit guam, could hit hawaii, could hit the west coast, and eventually will hit, will have the ability to reliably hit anywhere in the united states. we do not have the missile defense system we should to prevent that which is another part of this equation we should be thinking about. we could have a missile defense system if we want to. the technology is there to prevent missiles launched anywhere in the world from ever reaching their victims.
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that could be done. the other thing is not simply to wait but really to put serious, serious pressure on the economy and also when north korea does such things as cyber warfare against american-based firms, against america in other ways, money laundering, there have to be consequences for these acts and there have not been seriously. we have a cybercommand. it's not just defensive. it can be offensive. kim has to feel the pressure now and he has to feel it really hard over the next few months. liz: well, he's a murderer, he starves his own people. it's been a horrific situation over there. i just don't trust these people. we will be watching. cliff, thank you very much. >> thank you. liz: clifford may. sea world making a splash. with the closing bell ringing in about 36 minutes, the theme park operator surfacing after topping fourth quarter revenue estimates. also, buoying the stock, an increase in attendance by 8% year over year. sea world entertainment up 25%
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this year alone. it's adding 6% right now. up next, the seven kingdoms may have a new leader as at & t considers merging hbo with turner, but could the move be more cutthroat than the "game of thrones"? that's straight ahead on "countdown." don't go away. (indistinguishable muttering) that was awful. why are you so good at this? had a coach in high school. 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.
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cme group - how the world advances. ♪ liz: it's one thing for a company to make a move that surprises the world, but when it surprises everyone on the inside, well, that's what's happening at at & t. apparently at & t is considering a major internal maneuver. new reports out saying that a friend of the program here at "countdown" and senior tv executive bob greenblatt is in quote, advanced talks to take on a leadership role at warner media. now, greenblatt potentially being tapped to lead a new unit
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which would see hbo and turner entertainment networks including tnt and tbs, the cartoon network, combining all into one. the rumored consolidation effort at the company's massive content portfolio coming two days after a judge ruled that at & t's $85 billion acquisition of time warner did not violate current antitrust laws. kristina partsinevelos tracking all the news. greenblatt worked here at fox television, he worked at nbc universal, now maybe he's got a new life ahead of him. >> exactly. which is why he is so experienced and like you mentioned, could be the "game of thrones" situation because if he joins forces with at & t to take over this potential new merger between turner and hbo, what does that mean for turner president, what does that mean for the hbo ceo. if you're listening, i'm just mentioning so many names, going through so much, just to recap, warner media has merged with at
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& t, they operate hbo, warner brothers and turner. right now, they all operate as separate entities but at & t has said they are looking at a roughly $2.5 billion in synergy. they also said they want to consolidate back room operations which is why it could make potential sense as to why they would join forces, turner with hbo and a new streaming service. to add more meat to this story, there's another report, too, coming from variety saying that at & t is also in talks with disney. why is that. because disney wants to increase its stake in hulu. hulu is a streaming service and if we are looking at some of the co-owners of hulu at the moment, disney has about 30%, 21st century fox has about 30% which will move over to disney, comcast owns about 30%, that's wrong on the screen there, and at & t owns 10%. so hulu or sorry, disney is looking to take over 70% of
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hulu. why would at & t sell its stake? one, so that it can focus on its own streaming service and then two, to pay down debt. it has over $180 billion worth of debt and at & t did promise shareholders this year that it would cut $20 billion of that debt in 2019 alone. so there's a lot of pieces to this story, liz. we do know there's a potential merger, hbo and turner, and a streaming service, and the potential sale of at & t's stake in hulu. liz: got it. we all know what synergies mean. means cost savings, right? >> cost savings, potential job losses. liz: kristina partsinevelos, thank you very much. we have 28 minutes before the closing bell. but about two hours and 28 minutes or an hour and a half, you would say, before tesla's big surprise. what is it? 5:00 p.m. eastern. i guess we will know, but don't wait around for that. up next, the internet is on fire with speculation about just
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exactly what elon musk is about to reveal later this afternoon. will it be something on that model y? maybe an electric truck? an update on an affordable model 3? or something all together different than that? our panel is in place with some crazy guesses that don't sound so crazy. got to hear them, next on "countdown." -driverless cars... -all ground personnel... ...or trips to mars. $4.95. delivery drones or the latest phones. $4.95. no matter what you trade, at fidelity it's just $4.95 per online u.s. equity trade.
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(nationwidyou see brad, songs are really about big life moments. baby shower here. big. life. moment. what is in here? ohh! oh, i hope it's a life insurance policy. what? it's a sensible gift. protection for you and your family, nationwide has all the tools to help you find the right coverage. tiny baby shoes. so close. (peyton) makes no sense. babies can't even walk. should have been a life insurance policy. plus it would have been a great song. think about it, the lyrics, the beneficiaries... brad, where are you going? liz: we're getting this breaking news. tesla has just triggered a website move. it's updated the website and when you go on it and you click on ordering, it takes you here to something that says the wait is almost over and here's this line, great things are launching at 2:00 p.m. pacific, that would be of course 5:00 p.m. eastern
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time, less than an hour and a half away. okay. elon musk's tesla surprise. he has tweeted about this for a couple of days now. the surprise yet to be determined but the speculation has captivated both tesla shareholders and tesla watchers, pretty much the entire world of twitter. our next guest isn't buying into all the excitement. one of tesla's long-time critics, gordon johnson, slamming tesla ceo elon musk saying quote, based on the 53 deaths we've counted associated with tesla cars, we believe musk's comments that tesla makes the safest cars on the road is false. vertical group managing director gordon johnson joins me now, along with former "wall street journal" reporter and president of river twice research, zachary carabel, both ready to make guesses on what this announcement will be. gordon, to you first. what are you gaming will be the tesla announcement? >> we think based on them shutting down s and x orders as well as model 3, we think the announcement will be around auto pilot 3.0.
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with tesla ceo elon musk promising incorrectly since essentially 2015 is full self-drive one to two years out. we think it's auto pilot 3.0 and we think he will probably say something along the lines of full self-drive one to two years out. what i will highlight is at ces this year, waymo's executive says full self-drive is probably a decade away. this will continue to be a promise tesla puts out they can't achieve. liz: all right. zachary, what do you guess will be revealed at 5:00 p.m. eastern? >> i hate to spoil this particular guessing party but i guess absolutely nothing. i don't know if it's the model 3, i don't know if it's self-driving, i don't know what it is. i do know the fact that we are talking about what is on tesla's website and what's coming up at 5:00 is an amazing testament to the ability of this company to market its buzz and itself as a leading indicator of where it thinks the future of driving's going to be because i don't think there's been a lot of segments about the next model of
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the hyundai or the new dodge ram. so there's a degree to which the very fact we are having this discussion points to an ability to really move the needle. i know these cars have their critics and elon musk certainly has his critics, but you know, there is something to be able to capture the imagination such that this becomes the conversation. liz: you, gordon, think this is game playing here but tesla has been very quick to say we are going into china, we are building the factory. where else do you see expansion? give me that guess. >> i think the real issue with tesla, you know, they have done a good job focusing people on production, but i think what people really need to focus on is demand. if you look at the q1 numbers, you look at their guidance, we think excluding the restructuring charges as well as the two price cuts they have made, they are going to lose under $300 million. the street is at a profit of $139 million. i think the other issue is, if you look at european demand, our
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checks suggest demand in europe has absolutely disappointed significantly. 20,000 total orders, that's two years at most they have done with the model 3. we think u.s. demand has fallen off. when investors come to the realization when q1 numbers come out that demand is bad, we think the stock comes under tremendous pressure. liz: okay, but since the ipo back in 2010, tesla has gained 1200% plus. it's rising intraday. can we show the website again? when you click on this order now, you can see this right now. the wait is almost over. where do you see, zachary, this kind of maneuvering being welcomed by the s.e.c., are they neutral on something like this? because they are breathing heavily over, as you know, elon musk and every single thing he does. >> right now, a little bit elon musk is trolling the s.e.c., which is probably not wise and probably not something the
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reconstituted board is overly fond of but a lot of that's going on. he's enjoying poking the bear. the bear in this case being the federal regulators. and you know, in terms of tesla and demand, they are leading the electric car market in the united states. gm obviously spent a lot of money doing this, but they are shifting some of their priorities. so you know, it depends on what you look at. if you look at absolute numbers, this is still a small and growing company. if you look at relative numbers, this company has managed to develop market share in a completely new market and really defined itself as the luxury and increasingly, the middleman brand for electric cars. i'm not so ready to pooh-pooh it. they are losing a lot of money which is something any stock owner of this and certainly any debt holder of this should be high highly, highly cognizant of. the fact they are where they are, i don't think it's something we should discount. liz: before we go, gordon, where will you be watching the announcement. >> from the office. liz: he will hover over his
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computer. good to see you guys. >> don't watch from your tesla screen. liz: i'm here, all night long. zachary, gordon, see you next time. thank you. yes or no. with the closing bell ringing in about 18 minutes and the dow down 51, a major player in the fox regional sports network race, ready to draft one of the most well-known names in sports. but what about the other 21 networks sitting on the sidelines? charlie breaks it, next on "countdown."
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liz: breaking news. just moments ago, russia and china vetoed the u.s. drafted united nations security council resolution which called for free
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and fair elections and unhindered aid access in venezuela. but by the way, on the other side of this u.n. security council just voted against the russia/china resolution, remember, there were dueling resolutions which supports the maduro regime. we are watching this very closely. can you imagine two countries voting against keeping aid safe when it comes to people who are starving? those trucks filled with aid were set on fire at the behest of nicholas maduro so they couldn't get to the starving people of venezuela. we are watching this story as we speak. once again, the united nations proving it knows how to get a job done. not. one of the most powerful titans in the business world may be poised to change the fox regional sports network's bidding game with one single word and that would be yes and it would be to the yes network. what about the rest of the regional sports network field? charlie gasparino breaking the news on amazon. >> as of now, we should point
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out amazon's interest relies mainly with the yankees or only with the yankees, we should point out. they are not bidding on the rest of the fox business -- rest of the fox regional sports networks right now. that may change if the price changes but right now, it looks like this is amazon working with the yankees and a deal could be coming down the wire soon, and you know, it's three or four other bidders, sinclair, liberty media and major league baseball in the lead for the other 21 of the fox regional sports networks. i will tell you, liz, this is a far cry from what we heard initially, particularly out of cnbc's reporting that there was massive demand for this, that amazon had put a first round bid in. it didn't. this is not going that well for bankers and jpmorgan. the initial, i guess the initial attempt was to get about $20 billion for all of them, including yes.
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yes was majority owned by fox, as you know. the yankees sold 80% of it to fox. they are now buying that back and they are going to sell a minority stake to amazon. what we are talking now, particularly if amazon doesn't make a last minute bid, we are talking about something like $10 billion. this is not going the way they thought. listen, the programming here is very interesting. it is stuff that people want to watch, right? but they want to watch less and less of it. people are cutting the cord. this is all about cord cutting and cable not being the sort of preferred way that millenials are watching sports. so that's why you see the yankees trying to cut a deal with amazon. that's why you saw -- liz: amazon will stream it. they will get it in front of more people's eyeballs. >> that's why you saw the bankers trying to bring amazon in. listen, they showed some interest, from what i understand, but right now they are still not in it. if they don't get in it, this is basically a $10 billion deal, far short of the $20 billion. the reason why this is worth $20 billion is essentially because disney had to pay up for the fox
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entertainment assets that they bought. when they paid up for those assets, because comcast came in and put a last minute bid, it raised the value of the rsns. therefore, it was worth 20 and that's what allen and company and jpmorgan tried to get but it's very difficult in this environment of cord cutting to get $20 billion for, let's face it, yes is a really good property. they will get a good deal out of that. but the rest of them, these are regional sports networks. they are not -- they are in places where you don't thrive -- i mean, listen, the colorado rockies may be a great baseball team, i don't know, but lot of people in new york don't want to watch the colorado rockies. liz: i need your guess on what elon musk -- wait, before you say it, let's show once again our viewers what they just put on their website. when you put in it goes like this. can we take -- yeah. it says the wait is almost over. when you go to their regular website and you click order now, it goes to the wait is almost over, great things are launching
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at 2:00 p.m. pacific. that would be 5:00 p.m. eastern. what do you think the announcement is going to be? >> got to be like a new model, right? don't you think? liz: they are hinting at the model y. >> great things are launching. you know, i will say this about musk. i think possibly paying the bond payment in cash. liz: a new way to order the car? >> maybe. i think they will announce something. listen, here's the thing you got to respect about musk is that he drives -- this is a heavily shorted stock and he's at war with the short sellers. he wants to crush them. he hates them. he hates them more than i hate them. by the way, they are all over me on twitter because every now and then i say something nice about tesla and you know, i have no horse in this game. but he despises them and he's looking to crush them every single day of the week. that's what got him in trouble, by the way, with the 420, remember, funding secure for 420, that was to crush the short sellers. this is what he's doing now. what gets him in trouble sometimes, he says things that
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don't comport with reality. that's why the s.e.c. has him in trouble over some of the production stats that he put out. but you know, he didn't show any sort of trepidation by that and he came right back at the short sellers so what this is, you know, whether this is material or not, he knows how to jazz the stock up and he knows how to stick it to the short sellers every single time. that's what he's trying to do. by the way, the stock is at its highs today, i would think, isn't it? where is it now? liz: the stock is at $319. >> at its highs today. liz: annual high, $387. charlie, we see the dow at its session low, very close to them, down 64 points. coming right back. don't go away. i'm thinking...i'd like to retire early. let's talk about this when we meet next week. edward jones came to manage a trillion dollars in assets under care by focusing our mind on whatever's on yours.
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♪ liz: i will say it ben. even with better than expected fourth quarter gdp number we're at session lows with three minutes to go. let me get to deirdre. she is down at the new york stock exchange. >> liz, with a little bit of perspective we can tell you the dow, s&p 500, nasdaq even with today's losses last day of the month are up as three triple units for the past two months combined. let's take you through the numbers for this month. if you look at the dow monthly leaders boeing, intel, and visa, all of those, if you look at the past 30 days, january, february a little shorter than that those ones have outperformed.
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if you look at laggards you have unh, coca-cola and wba. back to you. liz: deirdre, thank you very. a newsletter widely followed on wall street is saying if we're to see the stock market planets align for a big bull run, seven ifs must happen here. the sevens. >> reporter: it is called. the first two, the fed needs to stop balance sheet reduction and the federal reserve cannot hike rates. we'll have him tell you the rest. seven ifs report. he is here. get to three, four, five, six and seven, tom. >> liz, thank you very having me back on. we need the fed to expand the inflation target. it probably won't happen until later end of the year. we need global growth to stablize especially here in the united states. the gdp number was good but we need more. we need chinese growth to stablize. there was a bad number this morning.
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we need earnings to stablize because they're coming down. finally we need tariffs rescinded. liz: tariffs rescinded. apparently we're close to that if the trump administration is on the mark about this. tom, where then knowing that may or may not happen because it's a lot of ifs, do you advice people put their money? >> i think if you're a short-term person, you're tactical you can still stick with cyclicals. china, emerging markets outperformed year-to-date on expectations of better growth. if you're more conservative, stick to some high cash flowing companies. that is what your friend warren buffett does. it worked pretty well for him. liz: he likes the cash flow. if there is selloff not a bull run you have to go in there and buy. do you feel that way? >> yep. i think so. i think we could easily see some digestion in in market. it was great start to 2019 it
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was earnings, growth and fed caused the correction. not all the problems are solved yet. [closing bell rings] tom essay maybe we'll come off the mat on the final trading session of february. that will do it for "the claman countdown." melissa: stocks ending in the red on final day of february trading. the dow ending down 70 points at session lows, making a three-day losing streak. s&p 500 also down three days in a row. it makes it the longest losing streak for the index this year. nasdaq in negative territory today, but seeing the best two months since february of 2012. that's something is. connell: been a pretty good run. >> i'm melissa francis. connell: i'm connell mcshane. don't even have to say it. this is "after the bell." more on the big market movers coming up. first, here is what is new at this hour.


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