tv Countdown to the Closing Bell With Liz Claman FOX Business April 12, 2019 3:00pm-4:00pm EDT
many people on this side of the atlantic believe the will of the people of the uk, uk citizens, are being robbed by the elites. we appreciate it. thank you very much, nigel. >> thank you. charles: liz claman, over to you. liz: i've got to tell you, i'm looking at some of the wireless stocks and some of the names that could benefit from what the trump administration just rolled out on your show, charles, and they are on the move. this of course after the administration just rolled out its plan to take the lead in the global race to super high speed wireless connectivity. the president along with fcc chair, as you saw right there, just announced the biggest spectrum auction in american history. this is a critical step to providing the electromagnetic frequencies necessary to roll out 5g. the government owns them, they are ready to have an auction to sell them to the top buyers here in the u.s. it's the next wave of wireless. but the 5g race comes with some pretty serious challenges that the commerce department must
shoulder, so we've got former commerce secretary carlos gutierrez to crystallize both the national security and business implications. it's a fox business exclusive. we will also tell you which stocks are poised to really move on this news. meanwhile, boeing in the spotlight as the faa holds a closed door meeting right now with american air carriers that own its 737 max jets. "wall street journal" aviation reporter andrew tangle has been out in front on this story. he's here exclusively to tell us what he believes is going on behind closed doors and what it means for airline stocks, boeing and more. on wall street, it's really not boeing but disney, shoving the dow higher by 228 points on this friday. its new relatively inexpensive streaming service thrilling investors and analysts. s&p 500 is up 14, the nasdaq up 26 for reasons we are about to spell out for you unrelated to disney. plus we have just obtained a
letter from lawyers for the hollywood agents trying to keep writers from canning them tonight at midnight. it's a bitter dispute with tinsel town writers like seth macfarland, oliver stone, tina fey ready to say to their agents you're fired. we are going to reveal the contents of that letter in just moments. less than an hour to the closing bell on this friday. let's start the "countdown." liz: breaking news. we have a cliffhanger in the 11th hour in this battle between hollywood writers and their talent agents. midnight tonight, the agreement between the writers guild and the association of talent agencies expires which means writers can fire their agents en masse and empower their personal lawyers or managers to negotiate deals with studios instead of the agents. within the last few hours, fox business has obtained this letter from lawyers for the ata
which represents the talent agencies. it was sent to the writers and in essence in this letter, it threatens the writers guild saying that per california law, no one can negotiate such deals without a special california labor license to do so. i have just gotten off the phone with sources who tell me that federal law supersedes state law here and that the writers guild believes it would prevail if the agents were to sue. we've got more on this in just a few minutes, on what could be hundreds of agents out of work tonight. right now, markets are surging. let's get to that, but off session highs, believe it or not, because it's a nice rally at this hour with the dow fueled by financial stocks, but more importantly, by disney. disney hit an all-time record high today. at the moment it's $129.76 a share. nice move of 11.25% at this hour. wall street tuning into the company's new video streaming service, which is priced, remember i said they really want to win it will be $5.95?
little bit less than hulu? they came in less than netflix, that's for sure. $6.99 per month. the company expects between 60 and 90 million subscribers will pay it out to watch offerings from all their iconic brands including marvel and "star wars." speaking of space sagas, disney just dropped its trailer on the internet for "the rise of skywalker." it is boosting excitement for the mouse house and disney's gain is coming at netflix's expense as investors bet netflix may take a hit once disney rolls out this service because it is less expensive than the video stream pioneer's basic plan. you got netflix down 4.75%. we are watching that race but we have another component dazzling the dow at this hour as well. we don't want to ignore it. it's jpmorgan. quarterly earnings for that bank came in better than expected, though trading revenue did drop 10% year over year. the stock is jumping $4.45.
we are showing you a two-day here. you can see the big jump, as the mega-bank size and breadth makes it a barometer for u.s. economic strength. ceo jamie dimon painting quite a buoyant picture saying among the midst of global geopolitical uncertainty, the u.s. economy continues to grow. they are jazzing up investors for next week when a whole third of the financials report earnings. we put them on the screen. they are getting a nice bump. that is more than just a little bit here when you look at bank of america, up 3%. morgan stanley, up 4%. goldman up 2.5%. amex coming up in the rear, up .75%. wells fargo bucking the trend, not happily if you are a shareholder. shares are slipping after it lowered its forecast for net interest income this year. that stock is down three full percentage points. it may not be as epic as the trojan war, but just as the people of troy couldn't see the greeks coming inside the giant horse, there is another battle
happening right now that is all around us. it's the international battle for 5g, as president trump and the federal communications commissioner announced literally 20 minutes ago, brand new initiatives that are sure to really spark a new investment in a battle that the u.s. does not want to lose. blake burman was listening to all of it at the white house. blake, explain to our viewers why the push for 5g is so important and more importantly, when we talk about investing, some of these stocks that could win the wireless spectrum race here, could be very interesting to have in people's portfolios. reporter: you have the convenience for you and i, everyone at home, it will make the speed of wireless internet faster for when you download, use your phone, et cetera. then you've got for businesses, what exactly this means. we heard from president trump just a little while ago say this is going to be a big advance for health care, for example, manufacturing, for example, agriculture as well. so there's the business component.
but there's also the national security component here, as you talk about, this race for 5g, as it's trying to be developed and instituted here in the u.s., but all around the world as well, as you got the u.s. developing 5g technology and also, the chinese developing huawei technology, 5g technology, rather, specifically through huawei. the president said a little while ago that 5g is in the vital interest of this country, it's also a national security issue for this country. the announcement today came from the federal communications commission in which it said it will have its third auction of 5g spectrum, its largest yet. they gave the official heads up to the folks within the industry saying that auction will take place in december. here was president trump speaking on this issue just a little while ago. watch. >> the fcc is taking very bold action, probably bolder than they have ever taken before. it's a new frontier to make wireless spectrum available by next year the united states is on pace to have more 5g spectrum
than any other country in the world. that's a big statement because as you know, some people got ahead of us. reporter: there was also a simultaneous announcement from the fcc, as it announced there will be a 20.4 billion world digital opportunity fund is what they are calling it separately. the goal there trying to get high speed internet to some four million rural homes and businesses. liz: did you know, i know you do, but i'm just asking your viewers, it's the commerce department in charge of making sure this rolls out properly. it's very interesting to see, right? this is going to be on the shoulders of commerce. reporter: it is a big business issue. it is a big business issue, it is a national security issue. it encompasses a whole lot of things. liz: how do they do it? that's why we are bringing in former commerce secretary carlos gutierrez here in a fox business exclusive. he's going to weigh in on the unspoken word in the room and
that is china's huawei. china's business and national security implications for america and how we can do if we can what the president wants, and that is to win the 5g race. that's coming up in just a few moments. in the meantime, it's always nice when -- for certainly the bulls when you have a big move in the markets on a friday, and we are off to the races in this final hour. but we have seen extremely low trading volume on the new york stock exchange this week. in fact, yesterday was the lowest volume day so far this year. what does that mean? it means there aren't a lot of players taking advantage of this. now, is this a coil spring ready to snap? what catalysts are investors really waiting for, earnings or possibly a trade deal? phil, what do you think it is that investors need to see before they get in here and bring up the volume? >> i think it's both of those things. i think you are waiting for the trade deal, you are waiting to see how earnings are going and really, i think the reason we
have such lack of volatility is what i should say is that there are so many differing opinions on where the economy is going. i mean, we went from a few months ago with everybody predicting the doom and gloom recession right around the corner, now you've got a 50/50 split by people in the marketplace that don't know if we're going to be -- our next move by the fed is raising interest rates, is lowering interest rates. so there are more questions than answers but you hit the nail on the head, liz, because when people are on the sidelines, generally speaking, it's for the wrong reasons and it probably is a coil spring to start moving a lot higher. i think today's market action could be a precursor to that. liz: the volatility index, chris, is the weakest -- well, the weakest, the calmest in six months, right? i mean, what does that tell you about this possible coil that could suddenly spring like a slinkie? >> there is certainly a lot of money on the sidelines.
last week we were talking about how much money had left the markets, especially after the christmas lows. i think it's the same thing. i think a lot of people got trapped, are out of the market now. monday is tax day so if you have been waiting to throw more money in your ira, that's going to come back in. we have earnings season. you know, there's a worn-out expression, the market climbs the wall of worry and there's plenty a lot to worry out there. i think earnings look good, there is certainly a lot of money that needs to get back into this market and i think what phil said is absolutely right. i think if the spring is coiled, the probable next move would be go back and retest the october highs. we are about 1.5% away from testing those. i don't imagine that we rally 5,000 points in the dow since christmas to not go get that last 500 points. so it's pretty interesting in the next couple weeks. liz: i have been covering business news for 20 years and i will tell you, each time that
there is the most worry, people later say i missed it, i missed it and they get in at the precisely wrong time. but at the moment, there's a screaming signal, the ten-year treasury yield which started to move higher and is certainly showing that when you have a flight to risk and away from quality, that yield starts to rise. i believe we are, yeah, 2.56 at the moment, that's a decent move in basis points today. >> well, it is. even though the treasury is up a little bit, i think that people are relieved to see that we got out of this negative yield curve scenario that we were in for a few days last week or the week before, and i think with the higher valuations we are seeing today from the chevron/anadarko deal in addition to the move in bank stocks, it could really put us in position to support the s&p on this move to 2900. liz: so great to see you. thank you.
have a great weekend, guys. tim just mentioned the anadarko deal. that deal in the oil patch that broke this morning has shareholders interestingly enough running in two totally separate directions. with the closing bell ringing in 47 minutes, chevron shareholders are sprinting away from the stock. the biggest laggard on the dow 30 after the super oil giant offered $33 billion for midsized oil player anadarko. but anadarko investors are enamored with the cash and stock deal. it's spiking 32% to the very top of the s&p 500 all because of the premium chevron offered to pay. $65 per share is a 39% premium to yesterday's price. right now, anadarko's not there yet. it's $61.94. up next, a meeting between the federal aviation administration and owners of boeing 737 max airplanes. when we say owners, we mean the
airlines. with us next, the "wall street journal" reporter who has been breaking the boeing deadly crash fallout stories right and left. his name is andrew tangle. he's got new information exclusively here next. my dream . it turns out, they want me to start next month. she can stay with you to finish her senior year. things will be tight but, we can make this work. ♪ now... grandpa, what about your dream car? this is my dream now. principal we can help you plan for that .
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liz: this is a live picture of medics, police and secret service who just moments ago right there administered first aid to an individual who sources tell john roberts just tried to light himself on fire right there at the white house. law enforcement source telling fox news an individual, a male, lit his jacket on fire while standing on pennsylvania avenue. this video was just as they were able to tackle him. the secret service did that, then the fire department responded. secret service has mostly cleared the north lawn right now and we are hearing from blake burman that they have been told by secret service they cannot get to their normal camera positions right now. this has impacted portions of the northern part of the white house and the area is being secured by secret service. they are checking to see whether the individual perhaps had an additional device on him, or if he was simply trying -- not
simply, but trying to light himself on fire. you're looking right now at the white house press corps which is usually always there, right by the lawn, and it's pretty evident that the president is fine inside, as we have just seen him in the roosevelt room having the event on 5g. any developing news, and we will get it for you. dow holding on to gains right now of 244 points. one stock story involving a dow jones component is continuing to send turbulence through the markets and it is boeing. today it happens to be higher but the federal aviation administration is holding a closed door, three hour long meeting at faa headquarters in washington, d.c. apparently there are representatives from the three american air carriers that own boeing 737 max jets. american, united and southwest. and officials from three different labor unions are apparently also in attendance. 300 or so boeing 737 max jets have been grounded worldwide. many airlines putting them on
the ground after nearly 350 people died in two separate crashes, one in indonesia in october, another in ethiopia just last month. showing its skepticism that boeing can fix the situation sooner rather than later, southwest has made the decision to remove boeing 737 max jets from its flight schedules all the way through early august but that actually may now be conservative of an estimate. "wall street journal" reporter andrew tangle has been reporting from the front lines of this boeing saga. to the meeting first that's going on today. deduce for our viewers what they are discussing. faa and u.s. airlines. >> u.s. airlines and the pilot unions want to know how the work on this software fix for the 737 max is progressing. ultimately the airlines want to make sure that the airplane is going to be safe to fly and it can get passengers on these planes and the pilots want the same thing. they're not going to fly the plane if they're not satisfied that the plane is safe.
liz: i need to ask you, because the big question is the safety and the issue of what happened. for our viewers who aren't really understanding of exactly what downed these two planes, i'm not sure investigators have fully announced what it is, there is this mcas software system, correct? and it has been misreading data and telling the plane that its engines are stalling and it has pointed the nose down, and that is what was certainly at the forefront of what brought those two planes down. >> neither investigation in the lion air crash in october in indonesia, nor the crash in ethiopia on march 10th, neither has been completed yet, but investigators in both cases have released preliminary findings and both preliminary reports have implicated this mcas flight control system in the max jet. now, the system was added to the 737 max because of the plane
having larger engines, moved up a bit on the wing. that created some issues with performance so they put the system on to automatically lower the plane's nose to improve the handling and make it like the older jets. now, in both cases, that system apparently misfired. liz: it was the sensor. they have added another sensor. there have been close to 100 test flights since the grounding of these jets and dennis muelenberg, the ceo of boeing, has been on some of those test flights. he says okay, we are pretty sure we've got this fixed. but it becomes a question of whether everybody else believes that. china took the lead in grounding the boeing jets, which in a way showed their muscle, but everybody else followed. >> it was highly unusual for a foreign regulator to ground the jet and make a decision like that without the agency, in this case the american faa, to take
the first step. so yesterday, he told a crowd in texas that he was impressed with how the software functioned, as it was supposed to, and that helped boost confidence on wall street before the market closed yesterday, but ultimately, the world airlines and world regulators are going to want to see some sort of global stamp of approval given the fact that the faa's credibility has been called into question here. liz: andrew, southwest says we are keeping them off the schedule until august. some people are saying september. when do you think they will be back in the air? >> it's hard to say. airlines can add the schedules back into the system. the schedules when the plane's ready to fly. but it could be longer. liz: folks, he's been out front in breaking stories right and left on boeing. we are watching it. thank you very much for your great reporting. health care right now is hurting. not hurting stocks at the moment, because the dow is still
up about 228 points. but with the closing bell ringing 37 minutes away, there is a dow component involved here. health care stocks are not playing along in this strong final hour rally. investors are hitting them now for the third day in a row on worries that pharmacy benefit managers or so-called middlemen could get hurt if america's drug rebate system is changed. anthem, the second worst performer on the s&p right now. humana, that's a 52-week low. united health, that dow component, getting slammed with centene. cigna, red on the screen. up next, deadline day in the epic hollywood drama pitting script writers against their agents. we have an update on the tinsel town tussle that could end with the writers handing agents pink slips. "countdown" will be right back.
a hollywood thriller in the battle between script writers and talent agencies. we just got a statement from the writers guild of america in response to the letter, a law firm representing the agents sent to the writers this morning threatening action if writers fire their agents tonight and empower others like personal attorneys and managers to negotiate writer deals. quote, the guild stands by its action in lawfully delegating the authority it has as the exclusive representative of writers under federal law. the agencies are attempting to intimidate attorneys and managers for writers and to stop them from performing work they routinely do. now, folks, this has been going on for some time. come back out to me first, guys, because i have to tell you, writers have accused agents of ripping them off for years while negotiating so-called package deals with studios, saying that the agents were taking all the money that should have in part gone to the writers.
so that's what's brought us to tonight. we have also obtained this, a sample letter that's floating around hollywood that actually guides people how to fire their agents. it's dated 2014 because these issues have been going on but it follows yesterday's latest proposal from hollywood agencies which have been sharing a portion of the revenue from tv and film packaging fees with the writers. according to reports, the writers guild would have to create a specific fund that would receive the percentage of the packaging fee revenue. the two groups did meet for a fourth time in six days yesterday and while there were a few little crumbs that were exchanged, so far, no agreement. again, expires tonight. sources from both sides have said pessimism is growing over whether a deal will be reached by tonight's deadline. we are talking about hundreds of hollywood agents who could be fired by their writers. writers have power these days. all right. 29 minutes before the closing bell rings. there's some other names on the move that we need to tell you
about. let's get to kristina partsinevelos for today's fox business brief. reporter: silicon valley based ride hailing company uber revealing a lot in its ipo filing from its impressive 91 million average monthly users at the end of 2018 to an alarming message that the company may never be profitable. while uber did not specify the size of its ipo, earlier reports that plans to sell around $10 million worth of stock. giving the company between a $90 billion and $100 billion valuation. the road show begins the week of april 29th and is expected to start trading under uber on the new york stock exchange in early may. jpmorgan says nike is expected to capitalize on the upcoming 2020 olympic games, making it a positive catalyst for sales. analysts also indicate it will benefit from the back-to-school seas season. jpmorgan has an $85 price tar t
target. the company currently trading about 1.5% higher. and the bristol-myers and celgene merger was approved. the $74 acquisition of celgene received a go despite activist investors' campaign to undo the deal. it creates a pharmaceutical giant with almost $38 billion in yearly sales. both currently trading down at the moment. plus, china fighting back on restrictions imposed on its 5g technology. is it really a security risk for the united states? liz talks to former commerce secretary carlos gutierrez. comcast business built the nation's largest gig-speed network. then went beyond. beyond chasing down network problems.
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hour, president trump unveiled his plan to spark massive investment here in the united states that would fast track the buildout across the nation and specifically in rural areas of this next generation super-fast wireless connectivity known as 5g. but in the same breath, he said he does not want the government to lead the 5g effort, saying it should be the private sector that drives this push, and yet he is also working on an executive order that would empower the commerce department to prevent private companies from buying telecom equipment made by foreign companies, saying that that equipment could possibly pose a national security risk. why commerce? because they are the ones in charge of overseeing this. here in a fox business exclusive, former commerce secretary carlos gutierrez. good to see you once again. >> pleasure. good to see you. liz: explain to our viewers the big announcement today, and part of it is really interesting. the president definitely says he wants to take a leadership role and he will do so by having this
big spectrum auction, that's the air waves, when private companies buy the spectrum. but how are you reading the part where he says even as we build it out, you can't use foreign equipment? >> well, that's a little bit contradictory. first of all, i think it's good policy, but using money from the spectrum auction should be just the first step. i wish that this would have been the president's mindset on day one of his presidency instead of getting us into this tariff trade war that we're in, because clearly, that's the future. the philosophy here should be we need to protect workers, not protect jobs or bring back jobs. jobs are changing. so we need to train workers for the jobs of the future. and those jobs of the future are all about 5g or all about the internet of things, and 5g enables that. it's all about robotics. it's all about artificial intelligence. and right now, china, japan and
korea are leading the way. so this is the future, not tariffs on steel and i'm very glad that the president's on this. liz: as you applaud him and i agree, let's just call this what it is. it's an infrastructure investment, is it not? i think this is terrific, because you have people behind him wearing their hard hats and maybe those were so-called older economy jobs but now those guys are going to be involved in rolling out this brand new 5g network which everybody's going to want because for those of you who don't know about it, it's that fifth generation super-fast ability that would do everything from slashing latency, or the time it takes for wireless connectivity devices to talk to each other, and it would allow massive downloads in seven seconds. but what does commerce need to do to make sure that we are enabled, that private companies are enabled to be able to roll
this out using equipment that is best in class? i'm not saying huawei is, but that is sort of the underlying theme, isn't it? avoid using huawei equipment from china? >> that's a very good question. on one hand, the president said the private sector should do this, the government shouldn't be involved. but the government is involved all over business. we have -- we are going to expand cfius. we are going to expand export controls. so who we can export to, how much we can really monetize these technologies, tariffs are a way of getting involved with the private sector so i agree with his comment but we have to make sure that all the strategies are consistent. the government is all over the private sector these days, and we should allow the private sector to get going, but today, there are a lot of obstacles to be able to export, to be able to invest, to be able to joint venture with an asian company. i just think we have to be
consistent and right now, we're not. liz: you just got back from china. today we had news that a chinese official is telling the world trade organization that any country, because australia is doing it, too, that says you can't use chinese equipment because it's dangerous, there could be spying, is discriminatory. by the same token, i can tell you, i have talked to people who worked for some of these companies and they say the minute you turn on a chinese phone it's probably beaming something back to the government there. >> look, i don't have access to the classified information that may lead to a conclusion like that. but china obviously is getting very aggressive on this. they retaliated against australia using coal exports. so i think over time, not the next two years, but five, 10, 20 years from now, it's going to come down to competition. it's going to come down to innovation. it's going to come down to who's
better, not through regulatory protectionism or through tariffs. and i think we've got to get our heads around that. there are companies in the u.s. who sell to chinese companies. many of these companies who would be devastated if we had an -- liz: retaliatory. >> of course. of course. we have to see this holistically. liz: carlos gutierrez, the man behind my favorite special k red berries. >> good to see you, liz. liz: ran kellogg for so many years. thank you. the closing bell ringing in 18 minutes. the dow charging higher, 245 points to the upside here. silicon valley's bad boy billionaire elon musk being put on notice by fellow billionaire and long-time tesla critic, david einhorn. up next, charlie gasparino about to play referee. who should you believe in this epic street fight? new exclusive details on elon's numbers from the inside.
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liz: one of tesla's most vocal short sellers is going for the tko just hours after tesla suspended online sales of its least expensive model 3 version. david einhorn, who runs green light capital, pulled no punches in the new take-down, warning that quote, the wheels are falling off and that the electric vehicle giant is once again on the brink of disaster. those are his quotes. charlie gasparino is here. charlie? >> i like david a lot. i have known him for years. liz: here comes the but. >> these are all the guys that are short the stock. i'm just going to tell you what the company is telling bankers. bankers are now, when you see
sort of controversy like this, people questioning the numbers of tesla, whether it's selling enough cars, particularly their cash position, bankers, that's the signal for bankers to go and pitch financing deals to tesla and they are doing it actively as we speak. or as of a couple days ago or yesterday, probably today, too. what the company is saying is much different than what einhorn is saying. i'm not saying you believe the company. this is just all about the marketplace of ideas and what the market will sort it out. the company doesn't believe there's a need for financing in the near term. what do you describe as near term, three, maybe six months. they don't think their cash position is eroding as fast as the street and mr. einhorn and other people think it's eroding. they believe in the near term that their finances are fine. again, bankers are taking a different view. they are pitching, bankers are paid to pitch and do deals so they are pitching more capital, essentially, selling stock,
doing whatever, shoring up that balance sheet. but they are being told that's not the case. they don't need it. at least in the near term. now, we should also point out that tesla executives, these are the bankers, senior executives, they are -- the conversation always turns to crazy elon, what's the deal with him, you know, he's tweeting stuff out, he runs afoul of the s.e.c. every five minutes, you know, on his settlement that he's not supposed to tweet unless he gets approval. here's how they are describing him. this is some of the words. they describe him as crazy. that makes sense. a handful is another one. you have called me that, right? a weird dude. liz: weird dude. so eloquent. >> a weird dude. liz: that's the best they can come up with? >> they also say despite his quirks, being weird and stuff like that, he is kind of weird. you have to admit. liz: most geniuses are. >> i thought einstein was pretty normal. no? by the way, dr. evil was normal. he was a genius, right? liz: very well.
>> they say despite his quirks, they describe him as a genius. and they also believe the company, despite all the competition that's coming at them from others in the electric car space, who are going to get, you know, the sort of government handouts that tesla got early on, they think they have the best electric car in the world. they are well poised. they got the right guy leading it, guy that wants to work 24/7 to make it work even though he's crazy and a weird dude and does crazy stuff, but they -- there is not -- here's the thing. these companies are often full of you-know-what. i get that. i'm just saying, as an investor you got to look at both sides. liz: it's not affecting, yes, intraday the stock has come off its highs but it's basically flat right now. i'm not sure people take einhorn's flailing and saying it's a disaster in the making, if there's anything more than just a short seller talking. >> yeah, listen, i always believe, i have questions about the numbers myself just so you
know. companies like to sugar-coat numbers. i get it. but the sense of who is that in there? liz: this is a tweet. i want to thank elon musk for the shorts. hems he's a man of his word. >> that's old. when the bankers are meeting with tesla, the fact when people met with jimmy cayne and everything, there was a palpable sense of being scared. this is through 2007-2008, they couldn't roll the financing that was lending them money, that's not what's going on here. i think one of the issues with the company, they know if they needed it, they probably could get it. so take it for what it's worth. i think we are kind of -- i think we are moving the stock a little bit, right? liz: am i too mean to you? >> i didn't think so. liz: you told me -- >> i was kidding. you know, it's like a joke. liz: like donald trump, i was kidding. >> i'm kidding. i would drink, i would womanize. i would make outrageous statements like liz claman is
mean to me. elon musk is a weird dude. liz: i'm not mean. you deserve whatever i give you. charlie gasparino. closing bell, we are eight minutes away. dow is still holding up 240 points. green on the screen with s&p and nasdaq. strong employment, rising wages. that's going to be good for restaurant stocks in your portfolio. [ speaking simultaneously ]
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jacket on fire sitting along pennsylvania avenue along the north fence line. uniformed division officers immediately responded as you see from the video. they extinguished the fire, rendered first aid. he was transported to the hospital what appears to be good news, for non-life-threatening injuries. nothing nefarious at least for the moment. here are the market set to close out the whole week. a great rally at this hour for the dow, we're still slightly in the red. nasdaq for the week up half a percent as well. we should tell you that with a record close at 2930 we're not too far from that for the s&p 500. that was back on september 30th. gerri willis live on the floor of the new york stock exchange. ii want to hear about today's biggest lag guard at least one of them. reporter: monster beverage, down
three peers. why would they be down so much? wells fargo cut the price target. they are the 8th brokerage, number eight to do this. why? because the company is facing a ton of competition, including guess who, amazon. they are coming out with own private label energy drink called sailmo red and silver. if you have more competition in your business, last company you want would be amazon. the stock is down 3 1/2%. down 3 1/2% year-over-year. liz: water. i'm going with water. gerri, have a good weekend. reporter: thank thank you. liz: some companiesll benefit from low unemployment and rising wages. how does that work? how would it help your portfolio? we have the portfolio manager of gradient investment. i'm sorry, explain to me how companies that have to pay more
in wages can help somebody's portfolio? >> well, first of all with those rising wages and rising number of people who are employed there is more people going to restaurants more often. even if they don't change number of times per week, they feel more confident about the future. they order appetizer and dessert. so the total actual ticket goes up. that leverages all other costs inside the restaurant. that is the reason we like cracker barrel. this is a name really hasn't participated along with darden and mcdonald's two of our holdings those have done very well. there is widening gap between valuation between cracker barrel and the other two and we think that should narrow. liz: and sysco, with s, not a c. >> you don't have to pick which
brand. they service almost all brands across the u.s. into europe as well. here is company growing their dividend 50 times since 1970, when they went public. last time they increased the dividend at 8% rate, well ahead rate of inflation. they have good 2 1/2, 3% type dividend yield. we think they will probably grow in valuations by perhaps 15% this coming year. liz: i always look forward on a friday what might move the markets next week and we're expecting to get some gdp numbers from china. china gave as you little bit of precursor today with surprise export growth. what does that mean for our country, and our stock market? >> i think what it means is, even though china was kind of put off kilter by the timing of their new year, which is in which is februaryish, that means the strong rebound we saw in march means demand came from the
u.s. it came from europe. [closing bell rings] that should be very positive for u.s. gdp. liz: mary ann, thank you. the dow climbing in final seconds, up 266. we hope you guys have a great weekend! melissa: stocks green across the board. the dow ending the day, wow, look at that, up almost 270 points, near session highs. s&p 500 closing up for the third straight day. it is less than 1% below its record close. the nasdaq in the green two out of last three days. i'm melissa francis. happy friday. welcome back. connell: good to be back in new york city. i'm connell mcshane. this is "after the bell." this is a good friday for the markets. major averages for the week, the dow finishing slightly down first time in three weeks. it was a big day for bank stocks. jpmorgan, pnc, wells fargo all reporting, kicking off earnings season.