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tv   Countdown to the Closing Bell With Liz Claman  FOX Business  April 17, 2019 3:00pm-4:00pm EDT

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charles: i can use the other ones as skates. enjoy the show, my man. [laughter] charles: markets essentially sideways, haven't moved a lot as i hand it over to liz claman. liz: i'm old enough to remember the dotson. charles: yeah, i do too. liz: like we need this car immediately? dot-soon? that was a big joke. in the 70s it was funny. charles, thank you. charles: you got it. liz: breaking news, new rules for investments in low income areas around the united states. just announced by president trump at the white house, the so called opportunity zones giving business friendly perks to investors and developers who begin and finish construction on economic projects in poorer long-ignored neighborhoods. wait till we show you the opportunity zone funds that can help you profit and invest in. ipo mania, ramping up in the last few hours as pinterest prices above the high end of its range. we've got the ceo of the company
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that matches investors to start-ups before they go public. we will ask him, if pinterest could be the next list, and that's not necessarily a good thing. overnight beyonce up-ending the way singing stars drop new albums. her documentary "home coming" rewriting the rules of the music industry as she rolls out her new album along with, paired with a documentary, all of it on netflix. 11 time grammy award winning singer, songwriter and producer kenny edmunds has written for beyonce. he's here to talk about all of that, a real businessman. on wall street traders on the fence, markets get pulled in two different directions by healthcare to the down side but financials to the upside. dow jones industrials up 8. wait till you tell me how many times it's moved up and down, unchange line.
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wait till you hear who won all three top awards, on t-mobile, sprint and now the ideas of the merger, charlie breaks that. let's start the countdown, less than an hour to the closing bell. we are getting breaking news, the "wall street journal" has just reported that the u.s. and china are aiming for a trade deal ceremony, a signing ceremony in late may or early june. now, people according to people who are familiar with the situation, we understand that u.s. trade representative robert lighthizer will travel to beijing at the end of the month, and chinese envoy, sort of his counterpart will make the rounds in washington may 6th. the two nations have of course missed previous deadlines aimed at finishing a trade deal, but the journal is reporting a presidential signing ceremony could happen as soon as memorial day. so we're watching that very closely.
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got to keep your eye on that calendar because right now we understand that the chinese are trying to work out what works in president trump's calendar for an off-site signing ceremony, so not here in america. we will watch it and let you know. it is seriously touch and go for stocks right now. we have the dow jones industrials moving across the unchanged line more than 150 times right now. it's changed in the last few minutes. i suspect it will continue to change. why? we've got the healthcare hemorrhage that's continuing to day two. that's offsetting strength in tech and energy. so you've got the two pulling each other in opposite directions. politics also a driver. united healthcare particularly coming under attack from vermont senator bernie sanders who is of course running for president as a democrat. he pitched his medicare for all plan at the fox news town hall monday night in pennsylvania. that town hall was a ratings smash, leading investors to
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perceive and perhaps buy into the idea that sanders is on to something or at least he may get people behind him on that, so united health group now down about 1 1/2%. it's been an ugly two-day picture for that stock. kind of a nightmare for managed care stocks as the plan could pull back or eliminate the role of certain companies. top laggard on the blue chip index, though, let's get to a technology name, big blue, ibm reporting once again a bigger than expected drop in first quarter revenue. all of its main businesses except cloud computing missed analyst estimates. the stock getting hammered, down 4%. breaking hearts over and over of people who try to believe in ibm coming back. so what did ibm say? it is blaming lackluster demand for the mainframe computers and the stronger dollar. so that's what ibm is saying, down about $5.81 right now at $139.32. at this time, exactly yesterday, top of the show, remember i said
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breaking news qualcomm? qualcomm's stock took off like a rocket ship yesterday and still trading higher into the stratosphere. yesterday it gained more than 20% within, what, 58 minutes? and now you see it, it is adding another 12 1/4%. the company tacking on 30 billion dollars to its market value after resolving its legal battle with apple. now the resolution means that qualcomm is cleared to reign over the 5g phone chip space. brokerages rushed in to upgrade the stock. while they didn't reveal the terms of the deal, analysts are estimating that apple withhold royalty payments and worked out to about 2 bucks per share. there are reports that huawei may be next to settle with qualcomm. the sky's the limit at the moment for qualcomm stock, standing at a nice move to this hour. we do have apple looking pretty good, up 2% at the moment to $203. there's more on sort of the intel effect on this in a minute. we need to get to the white
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house because the new news just broke, a new round of regulations for tax-favored investments in low income areas. president trump just announced the details, and he said earlier, that the so called opportunity zones as they are called are a crucial part of the tax law to help lower income individuals. claiming his government is 100% committed to bringing jobs, opportunity and safety back to where you live, i just don't assume that you guys know what this really is. to give you a little history lesson, this is the tax benefit that was created by the 2017 tax cuts and jobs act. it's designed to drive economic development and create jobs by encouraging long-term investments, construction and building, in economically challenged communities nationwide. how many? there are 8,700 opportunity zones that have met the census criteria as poorer communities, and that meets with the economic innovation group, who estimates
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there are more than 6 trillion dollars in unrealized capital gains available for potential investment. well, who really gets to participate here aside from the beneficiaries? blake burman, i have talked to real estate magnates who are absolutely thrilled about this one because they get great tax breaks by building in poorer neighborhoods, but you are at the white house. you know, what is the response here? >> well, we had a little bit of a briefing from treasury officials earlier today, liz, in which they kind of went through the second batch of proposed regulations as you just laid out. this was the opportunity zone -- opportunity zone initiative was put in the tax law but now they have to match the details with it. that's kind of what we got today, not to get too much into the weeds here, but treasury officials say it will help with things like compliance, treatment of gains, what qualifies as an opportunity zone, as these funds start to develop, and as down the line, the hope and the thinking is the investments come in, the folks
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behind that who are putting the money behind that and the construction and the building behind that starting to hear some of the regulations that were roll out today. we heard from the president, just a little while ago on this, he pointed out that this will help some 35 million americans, or at least the communities in which 35 million americans live in, and he talked about the tax benefits as well as it relates to the treatment of long-term capital gains. here was president trump a little while ago. >> in order to revitalize these areas, we've lored the capital gain -- we've lowered the capital gains tax for long-term investment in opportunity zones all the way down to a very big fat beautiful number of zero. you're looking and saying no, i don't want to go there. maybe i don't love the location. i don't want to go there. then they will hear about the zero, and they will say i think i will go there. >> that's the thinking behind this, invest in an area, hold on to it long enough, a decade, the
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capital gains tax as you heard from the president 0%. a quiet day here at the white house. we're awaiting the mueller report to come tomorrow morning, redacted versions of it. the white house says, we saw from the president's tweet, the president spoke with the pope today regarding the notre dame cathedral. the president saying the u.s. will help out in any way as it relates to renovation and construction. liz? liz: blake, thanks very much. even if you are not the real estate magnate, there are funds that you can invest in. they are sprouting up everywhere. there's an opportunity zone fund. we will be watching this and get some of those fund managers on our area because -- on our air, because this is the way for the regular individual who is not in real estate to participate and benefit from this what appears to me to be a win for both sides, both for the poorer communities and for businesses. all right. alan greenspan's irrational exuberance, do you remember that, when he uttered that line
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during the dot com bubble? to the word recession following the burst of both the dot com and the housing bubble, and now one investment bank is warning using the dreaded e word when it comes to the markets. we have the r word recession. we have euphoria, right? that's the new word. rbc capital markets head of u.s. equity is warning that there may be too much euphoria around the s&p 500 right now. so here it is year to date. major average, while down today, just hit a 2019 high on friday and its second highest close of the year yesterday. should you the investor be fearing the dreaded e word or is there a work around? some type of precaution you can take? we go to our traders on the floor show right now to get their perspective and teddy weisberg, give me your idea when it comes to the e word. >> i think the e word is just another negative word to get investors a little unsettled.
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i don't buy into it for one moment. i think the footings for the market are still quite positive. you know, we've been told that even earnings for the first quarter were going to be so underperforming and so negative, and the fact is, we've had the banks and a few other companies that have come in the rails yesterday with terrific earnings. you know, even a broken clock is right twice a day. and i guess if enough people say something negative about the markets, sooner or later, they are all going to be right. i still think the direction for the markets are higher, not lower. the u.s. economy is in a lot better shape than a lot of people want to admit. nobody wants to give credit to anybody. but things are humming along, and the stock market reflects that. so i'm not nervous at all about where the s&p is. i think the markets trade higher, not lower. liz: okay. phil flynn, euphoria is usually followed by some type of emotional crash, you know, you give kids a lot of sugar at a birthday party and then they become a nightmare once they get home. >> right.
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liz: at some point, do you see that? will it be as bad as at least not teddy but other people might predict? >> i think at some point. but bring the sugar on. i don't see that euphoria. i don't know what she is talking about here. i look at some of the measurements she was talking about. she's saying well, you know, we have seen a lot of buying come back into the markets this year, well, we should have because the market crashed in december, you know, and she even points out in her own research that we're not seeing the type of levels of buying that we saw before the market corrected back in september, which to me tells me we have a long way to go. you know, and i think in the same article, we heard from an analyst from black rock saying he's worried about a melt up, and i'm like i hope we get it because then i can take some profits. liz: i'm wondering if we can look at one-year charts. they better expressed what i believe todd phil was just saying and that includes sort of september and then sweeping into a very ugly october.
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i was googling some of the pictures of words like euphoria, and it was amazing, everybody was predicting horrible things for 2019 in january, and yet we're up 15% for the s&p. >> exactly. liz: people have been wrong, wrong, and by the way, wrong. >> well, liz, january 4th was the low of the year. so of course they were looking at it negatively in january. but i think if you look at what's happening here, the highs on the stock market are reflective in the lows in the volatility indexes, which right now are sitting near august -- got as low as august 2018, so there is no fear that the market is going to turn around, and this fear of missing out trade continues i think to fuel the market. you have a federal reserve which is out of play in 2019. it is likely going to be cutting sometime in 2020 if things go as expected. you have got a bond market right now that's gone crazy from 2.80 in the ten year yield down to 2.30 and back up to 2.60. you are seeing a lot of movement in other markets, but boy, the stock market is just saying one
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thing, and that is long-term investors are looking for that catch in the equity markets that they are not seeing in other asset classes and it is going to continue, and those open interest numbers or holding numbers are showing how crowded that side of the trade is. the long trade is very crowded and i don't know how long it can continue without some kind of a pullback. liz: it just keeps going and going. thank you, teddy, phil, todd, we're here every step of the way along with our traders on the floor show. thanks, guys. intel inside? right? but it is also up top. simply for exiting not entering the 5g modem business. with the close bell ringing in 45 minutes, semiconductor giant leading the dow 30 right on top and on track for its highest close since the year 2000. it's at $58.62 right now. what happens? well, yesterday it announced it's dropping its kind of expensive modem chip business.
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it was way behind qualcomm and late to the modem party. iphone sales have closed. so by exiting the business, it's moving higher by $1.91. coming up, he's the baby face businessman, kenny baby face edmonds, not just a grammy award winning singer, he's here live to tell us about his new venture and the potential he sees in the blockbuster deal that beyonce just made with netflix. it is a fox business exclusive on the spirit of business. it is a first and all electric suv wins the new york auto show triple crown? jeff flock live there. wow! >> i'm not going to tell you what it is. but i'm going to show it to you. best design, green car of the year, and best overall car. what is that you are looking at? i will tell you in a minute, when we come back. ♪
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liz: the new york international auto show, before we get to that, we have this breaking news, ahead of her green new deal tour, democratic congresswoman alexandria ocasio cortez just launched a new video
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this afternoon on social media. she's apparently put it on the facebook page of a group called the sunrise movement. the tour hits more than 250 cities and towns, kicks off in boston tomorrow. here's a little bit of it. you can see, she calls it a message from the future with alexandria ocasio cortez. now, this as electric vehicle makers and buyers just got a power surge, not from her, but from a somewhat unlikely source. two months after aoc's green new deal got torched by critics, long time republican senator lamar alexander of tennessee has unveiled a bipartisan bill he calls a sort of manhattan project for clean energy. telling the "wall street journal," quote, there are a number of republicans who say climate change is real, and we have to do something about it. the driving america forward act extends while slightly cutting the soon to expire $7500 tax
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credit for those buying electric plug in or hybrid cars. to jeff flock at the new york auto show where no doubt this is a welcome development. jeff? >> those are the awards we told you about, world car of the year, best design in the world, and green car of the year, and look at it. it's the jaguar i-pace, and you know, we unveiled this car on your show last year, liz, and i tell you, this is a triple crown winner as you point out, big electric winner, all electric, very cool, and the first all electric car that jaguar has built, it's car of the year. fair and balanced here, some people think electrics, we're way too far out, those people would include the folks at toyota. take a look at their big unveils today, two of them, one, the toyota highlander, that will not have a fully electric version. it will have a hybrid version of course from toyota, huge when it comes to hybrids. they also unveiled today the
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toyota yaris, hatchback version. that also will not have electric. i talked to bob carter exclusively here on the fox business network about, you know, gm saying we're committed to all electric future. he says slow down. we're not there yet and won't be there for at least a decade. here's what he told us. >> it will develop in the u.s., jeff. i'm not saying that it won't, but it's going to take a little time. it is not going to be tomorrow. it is going to be in the next decade. that's when you are going to see us enter the market in a robust way. >> okay. wisdom from toyota. but, i will leave you with a couple of electric cars. i have to do that. one of them a concept, this is a kia. this is supposed to be a hot one. smaller suv, all electric. the folks at kia saying electric is the future. i leave you with perhaps the coolest vehicle in new york at the moment. this is the most powerful car
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ever -- street legal car ever built. this is something called the batista, 1,900 horsepower. you know that dodge charger? 700 horsepower? we thought that was a lot? 1900. goes from 0 to 60 in less than 2 seconds. top end? 217 miles-an-hour only because they have a governor on it, won't let you go any faster, it could go faster. liz: and it is jaguar, darling. >> jaguar. i'm an american. this is america, darling. i say jaguar. liz: jeff, great to see you. thank you very much. jeff flock. the queen b of disruption has just landed on the money tree with the closing bell ringing in 37 minutes. beyonce tearing up the music industry play book at this hour, by releasing her latest album in conjunction with her home coming
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documentary on netflix. it's the latest chapter in streaming's growing influence. kenny baby face edmonds has written songs with beyonce, whitney houston, justin bieber and more on his way to 11 grammy awards. the singer, songwriter and producer is here. the changing face of the music industry with kenny edmonds, it ooh's fox business exclusive -- it's a fox business exclusive. that's next on the "countdown". some things are out of
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liz: queen b surprising fans and the music industry early this morning by dropping an unannounced live album across music streaming platforms. just as her brand new documentary home coming about her coachella concert simultaneously begins streaming on netflix. meanwhile netflix stock down in this final hour by 1 1/3% or
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13 -- or 1 and 3/4%. as streaming wars heat up, how is it changing the game for musicians? our next guest has written hits for everyone from whitney to eric clapton, michael jackson, beyonce and madonna and now he is extending his empire, kenny baby face edmonds is joining us. thank you for joining us. >> thank you, it is good to be here. liz: when you first heard like the rest of us that beyonce and netflix had a hidden surprise and paired her concert doc with a new album, what was your gut reaction about streaming and how it is up ending the music world? >> it makes all the sense for beyonce. she's always kind of ahead of the game. doing a movie at the same time and then also coming with a
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surprise album which when you have a surprise album especially with beyonce, streaming is going to be much higher with it being such a long album as well. that means she's going to control it for a little bit. she knows what she's doing there for sure. liz: i mean, you are right, her talent is epic. does this unleash a brand new sort of model where say, for example, aerosmith drops a new album as it streams its concert from whatever venue. is that what you are seeing on sort of the future horizon? >>i mean it can happen for maybe established artists. it is a bit harder for new artists that can't quite do it the same way. it's not quite -- it's not quite as fair, i would say, to a brand new artist who no one knows. so, you know, it's changing the game a little bit, but not completely for everybody. liz: you know you talk about being fair. you are the kind of guy who doesn't wait around for things to get fair. for lesser known artists you started this organization called
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good vibes music group. i liken it to almost an incubator for music industry talent who aren't quite there yet. tell us about how that's going because it's been in place for a bit of time now. >> yes, it's a publishing company i started with a friend of mine who is out of canada. we wanted to get to those writers who really don't get a shot, who don't get heard, and so we look for them on the internet and have them submit songs to i can get an idea of where they were so we can work with them. we set up a camp in nashville. we did one in l.a. we did one in toronto as well. we will do more as well giving people a chance to kind of get in with the writer and let me work with them. we don't sign everyone per se, but we give everybody a chance to kind of actually go through the process of writing and that's the one thing that i love. i grew up being a writer always. it's fun to kind of share
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that -- share the things i have learned in my life. liz: you have done that and now you're saying wait a minute. there's so much more out there. you're doing what quite frankly a lot of celebrities have been doing lately, and that's pairing up or getting into the spirits business. you know, we could talk about everybody from ryan reynolds who has done gin or george clooney doing the big tequila business and then selling it for what was reported to be around a billion, but you are going into agave spirits. tell us about this. what is it called? >> yes, agave spirits. it is not tequila. i like to say avila is the new tequila. it's different. it's different because it is made in a different soil. it's made in an area called morello and because of the volcano that's there, it kind of makes it richer and gives it a different vibe, a better vibe, i
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think. of course it's my spirit, but i kind of like it. liz: yeah, and 55 bucks -- that's a good price point. right now only available in new york, california, and minnesota. i want to say to you at the end here, do i call you baby face or ba baby? >> you can call me kenny. you can call me baby face. you can call me robert, whatever you want to call me. liz: kenny, i tell you, when you talk about where you began, what is your one success point that you would like to make for any entrepreneur watching right now that has made you successful? >> well york -- well, you know, starting at this point, even in the spirit business, starting at this point, the one thing i have learned about it is that even as a songwriter, i have always written songs, and sometimes when you have quality, sometimes it takes a long time for the right song to get and finally show itself and become a smash, and like, even in this business, you know, i've met micah who is
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my partner in it and tasted this spirit a while ago, and it was really good, and i think that if you just have something that's really good, sometimes it takes time for it to actually show itself, but when it finally does, then everybody is there for it. the main thing behind that is whatever you are with, if it is quality, stick it with and it will happen. liz: we would love to taste test revel here at fox business. feel free to stop by. kenny baby face edmonds, congratulations. good luck to you. we're thrilled to have you. these come back. thank you. liz: dow jones industrials now up 13 points. we are coming right back. kevin, meet your father. kevin kevin kevin kevin kevin kevin
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this is just hitting the tape saying he will not withdraw from consideration for the federal reserve board. he is also saying he remains, quote, very committed to taking the federal reserve job. let's just put aside the fact that he hasn't been nominated by the president just yet. he's now making comments saying that the federal reserve should pursue stable dollar policy instead of a gold standard, not that the fed is pursuing the gold standard at this point. but at this moment, in a wall wall street interview, just now hitting the tape, herman cain saying if he were to be nominated, he's not backing out. let us get to lyft stock at this hour and take a look at it right now. while it is moving higher by about 4%, it is well below the $88 it hit high during the session when it first began trading about two weeks ago. it is the top tech watcher who is now saying the worst is yet to come. >> i think lyft will hit another all time low today, but today
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will be its all-time high, moving forward. i don't think it will ever see this number again. liz: galloway went on to call the ride-hailing app quote the of this generation. that's not a compliment. lyft is down 26% since it debuted last month. analysts threw shade at the stock and short sellers went to town. what does that bode for the next set of tech unicorns cantoring into the public markets? 18 hours from now, we're talking about pinterest and zoom video communications, both set to price after the close today and start trading tomorrow. joining us now in a fox business exclusive is the ceo of a company, it works like a for companies looking to invest and investors looking for capital. good to see you. >> good to be with you. liz: you have a different view of lyft. >> i do. i look at it from a longer term perspective. you have to take away the early
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trading that happens. in today's dynamic, you have a lot more momentum players versus ten years ago when you would have fundamental players come in. today fundamental players come in in the private market much earlier. momentum players have a bigger influence today. liz: one of the headlines i saw shortly after lyft had gone public was carl icahn cashed out of his lyft shares before it went public. well, i have viewers wondering well how do i get to buy shares before a company goes public? is that what you do when you play >> absolutely. you have to remember you put them into soros who is another long-term holder; right? liz: correct. >> it is not like he wasn't selling them out to someone who wouldn't be a long-term holder, taking advantage of being able to get a large placement before that happened which he wouldn't have been able to do in a normal ipo. it bodes well for lyft to have a long-term fundamental holder. the reason you can't get in is because for many companies, they are looking for a larger qualified institutional player
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to come in. and so just having one small player doesn't necessarily help them, which is why you can play. liz: what do you do? >> what we do is we have large databases. we have algorithms that actually do like you describe, place the game for people, and what we try to do is place not only capital, but long-term strategic value with these investors. so it may be a corporate. it may be a venture capitalist that has a lot of experience in the space, so someone who can help accelerate the business as opposed to just fund it. and that's what we do. liz: tomorrow the big moment for pinterest and zoom. >> yes. liz: let's separate the two here. pinterest first, very very well known, what do you predict for this stock? >> look, again, and i think about it from the long-term perspective, no different than lyft. i think pinterest is one of those companies where it has a fundamental impact on how people are doing things, like, planning weddings, identifying content, identifying content creators, and so that ecosystem i think will continue to grow.
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so i think they will have a big opportunity in front of them. and it's really if you think about it, it is expanding beyond what google does for search; right? in a very fundamental way. liz: after the bell pinterest is going to price, and we are hearing it will price as high as $19. that's certainly -- it's hard to even tell what pinterest will do. zoom, for example, that is a company that has a real solid business model as well. >> absolutely. and we use zoom-in our technology business; right? it's fundamentally changing how corporations develop their products, communicate within their prubts -- products, that's on the sales side and development side. that's a product that once it is in, it is very hard to take out. again, for these corporations that are fundamentally changing how people interact with their businesses, i think you have a long runway for that. and we're very early innings for all of these players. i mean, you go back to lyft and you think about uber talking about 2% of the addressable
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market being addressed, that's a huge market opportunity. liz: exactly. >> yes, they have big losses today but the question is if they get to 10, 20 percent and those two are the market leaders, what does that number look like? liz: how do people match up with you at cyndx? >> they would come to us. we focus on both family offices, focus on corporates themselves and we focus on corporates looking for investments across the board. liz: fascinating business, one day you will go public. >> hopefully. liz: good luck to you. >> thank you. liz: static on the line, the closing bell rings in 1 minutes. t-mobile and sprint shares sliding after reports that the telecom giants' merger plans could be put on an indefinite hold by regulators. up next, charlie gasparino with new exclusive details on how this call might really play out. the odds of the merger going through, charlie's going to
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liz: breaking news, t-mobile stock coming up off the floor here, just as charlie gasparino put out this tweet, scoop: t-mobile sprint officials pushing back at reports their 26 billion dollars merger is on life support. people close to doj antitrust still give deal 50/50 odds. now more on @ liz claman at fox business. charlie is here. >> there was a report out there that the deal was essentially on life support, doj, antitrust had a meeting at the beginning of the month they indicated to sprint and t-mobile officials
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unless you radically change this deal, we will kill it. the stock tanked. we made some calls. the ceo of t-mobile put out a tweet saying it was an inaccurate report. more than that, the people inside that was at the meeting disputed key elements of these stories. number one, there was no edict given at the meeting, according to t-mobile and sprint officials. clearly concerns are being raised about this deal, when you get rid of one of -- listen, there's four carriers right now, you get rid of one, it is three major carrier; right? that's going to raise antitrust concerns. there's skepticism at the d oshgj staff level. -- doj staff level. however there's no edict given. they are still negotiating this. i bounce this off of people that know basically have an insight into what doj antitrust is thinking. they basically confirmed what the t-mobile people are saying.
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this deal is not on life support. yes, it's 50/50. who knows where it is going to go. we should point out that doj antitrust, does not have to accept the recommendation of the staff. liz: of the lower staff who may not like it. >> even if they raise concerns. what we're hearing now is that these reports were overblown, again, comes back to this, will this deal definitely happen? i can't give you a definite. i give you based on all my reporting as it was two weeks ago it is now, it's 50/50. the argument both companies have put forth that a combined company will be very good for 5g technology and basically creating a 5g counterweight to what's going on in china right now with huawei. that argument is accepted. the people inside the trump administration on the economic and national security side like that argument. there is an antitrust concern here. you're getting rid of one of the
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major carriers, and sprint and t-mobile are going to have to prove that this is not going to lead to massive price increases. liz: if i'm t-mobile, i'm thinking -- they have tried to do multiple different mergers. they have been smacked down every time. why are they held to a different standard than, you know, perhaps some of the other names that were swallowed up by verizon and at&t throughout the years? i know they are big now, but they weren't when they were trying. >> i think the reason is -- and by the way, you should book someone on this. i think what a smart guy would say is you are absolutely right. by the way, this doesn't necessarily have to lead to higher prices because guess what? we're going to expand capacity by merging with sprint. we're going to offer more.
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we're going -- we can compete on price with the two bigger ones. the justice department would come back and say just on the face of it, taking 3 to 2 -- excuse me, 4 to 3, antitrust issue so we have to look at it. my only point here in doing this story is that i'm getting this from inside the company and people that know what the doj antitrust is saying, and they are essentially denying that report, that this thing is on life support and that it's, you know, unless they jump through 40 different hoops, it's dead. i mean, they are not saying that. as a matter of fact, they are saying that they were given no indication. maybe people were raising issues, but no edict or indication. and i would say again, i just want to make sure, i'm not saying -- i'm just telling you, i'm not saying they are going to do this deal, it is going to happen. i give it 50/50. just to be clear. liz: don't invite charlie to a family dinner, he will never stop talking. >> i will never shut up? liz: we're coming right back. >> where shall i begin?
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liz: closings bell ringing in three minutes. stocks are not really moving that much. microsoft in the commercial break hit an all-time high. so great day for mr. softy shareholders. charlie just reported that the sprint-t-mobile merger still has a pulse, our next guest says don't wait around for that battle to play out. it is another telecom worth taking a look at. president of the james advantage funds with his favorite name in the space right now. take it away. barry, what is it. >> sure it is verizon. great company. cash generating machine. over 4% yield while you hold it. it has a higher return on equity than apple. this is a very successful business. this whole thing is going on, a
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smokesscreen with the sprint t-mobile. heads they win. tails the others lose. if it pose through there will be three. they can push up prices. if it doesn't go through they control the 5g much more than the other two. they have much more pricing power. so forth. i see that going both ways. the stock hasn't done much this year, off the highs from late last year. i think it's a great opportunity to pick up bargain, to have something in your portfolio you can take to the bank. liz: let me push you on this. i know john legere very well. he watched him for years. he is a vicious competitor, very tough, i wouldn't put it past him, to come in the merger goes through either way, slices rates or versus raising them or keeping them static. so he grabs more market share. what happens to the verizon? might not be such a sticky business after all? >> well, if they did, if they did cut prices obviously they
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would be picking up more business. which may offset some of that i think that would throw a bit of a curve at all of us that hold the stock. we are not really, i'm not really anticipating that. you know as we look at it right now but they have the cap at that do it. if really good business decision they probably step forward. connell: liz: barry you have five billion in assets. we watched your company grow throughout the years. tell us what you see with the markets next six months? >> if you forgive me i kind of see it like a used car lot. i only buy use cars, i'm so cheap. you say, wait a minute these are priced much higher than i see in the internet, what is going on here? then you look under the hood. that is the valuations levels. you look under the hood, this is small engine.
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this doesn't have whole lot of go. the economy and earnings. lastly everybody wants to buy it. you realize it is just a gremlin. [closing bell rings] a little bit of danger. be careful. liz: we shall. crossing unchanged line 165 times, the dow is flat. connell: a big jobs push from the white house today. huge savings for investors with president trump touting the impact of tax reform the commitment to bring opportunity back to families in the u.s. the dow, if it would be up for the day, it would be a high for the year. melissa: so close. connell: it is one of those almost there. looks like it will settle a little bit lower but we'll see. fighting for gains into the close, down three points as we speak. we'll see how things settle out there. the s&p 500, tech-heavy nasdaq do end the day just slightly in the red. there we go. i'm connell mcshane. melissa: i'm melissa francis. this is "after the bell." we have more onhe


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