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

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canada are going to get rid of those steel tariffs and maybe that takes us one step closer. liz claman, a lot of things going on beneath the surface. liz: yeah. guess what? i've got my shovel. we are going to dig beneath the surface and get our fingernails dirty. good to see you. thank you very much, charles. yes, we have a deal, ladies and gentlemen. six months after the signing of nafta 2.0 in buenos aries at the g-20 where neither canada nor mexico looked completely thrilled, the u.s. has, in just the last hour, agreed to do what both the leaders of mexico and canada had asked the u.s. to do, and that is break down the steel and aluminum tariff barriers between the usmca and its ratification. reports say the 25% tariffs on incoming mexican and canadian steel and 10% on aluminum will go into the history books within 48 hours. president trump addressing the decision at a speech before the national association of home builders in washington, d.c.
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that was just about half an hour ago. the president saying it's a great deal for the united states and he is now calling on congress to pass, formally pass the usmca deal in short order. we have political and market reaction. we will take you live to the white house in just a second. but wall street had reaction here. took the news in stride. we saw the dow turn around. the dow had been lower by about 204 points earlier in the session. you can see all of that wiped away. we are up about 14 points, mostly thanks, though, to eye-popping consumer confidence numbers which came in, this is for early may, and they had a 15-year high. one problem with that number. we will tell you about it in just a minute. right now we have the s&p not quite making a go of it, still down three. the nasdaq lower by 31. medicare for all has been a rallying cry for bernie sanders, of course, a presidential candidate and other people who support socialist ideas. but could capitalism solve america's health care problem?
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some say up until now, it has not, but one of america's top obamacare experts is here to tell us it can and he's got a way and he will talk about how he thinks it can happen. plus, under armour's big win, "game of thrones" and charlie breaks it on goldman's closed door move. he's going to open the door. we are less than an hour to the closing bell on this friday. i know. let's start the "countdown." liz: we got some breaking news out of hollywood. lion's gate has just resumed trading after it was halted earlier in the session. look at lion's gate right now, jumping 12.25%. this after a report that cbs has made an informal bid for the company's starz cable network. starz of course the home of shows like "outlander" and "power." the reports that cbs is looking
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at a deal as a potential complement to viacom which cbs may also somehow merge with. you have heard about that over the years. right now we have the dow jones industrials down 21 points. we just lost all those 14 points of gains in about, what was our open, about 15 seconds long. what the heck happened here? wild fluctuations today on the dow. as we say, the dow swing for the index from trough to peak has been close to 300 points. it's really trade headlines that have been sending investors in one direction, that would be down, but the other, as i mentioned, we had the consumer sentiment number that looked a lot better than expected. i will get to that caveat in just a minute. but we've got to get to this. nothing like saber rattling in the persian gulf between the u.s. and iran to rachet up uncertainty and crude oil prices. from attacks on oil tankers trying to maneuver through the strait of hormuz which is the crucial choke point for oil transport to the iranians now saying within the last 24 hours, quote, we could easily hit u.s.
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warships in the region. it is no surprise that crude prices of both west texas intermediate and brent crude, which trades overseas in london, look to lock in weekly gains of nearly 2% at the moment. we need to get to a different kind of fuel. coffee. right? high octane? that's what i drink. like its name, luckin coffee has had quite the lucky ipo debut. it's not too cliche, i'm sure it will be on every headline tomorrow. but we do have the chinese coffee chain, if we can slip back to luckin, i don't know if we can, ticker symbol lk, soaring as much as 53% earlier today. it certainly moderated. let me quickly check. i don't think we've got that chart here. ticker symbol lk at the moment. we do have it up 13%. listen, it priced 33 million adrs, that's when a foreign company can list here in the u.s., at 17 bucks apiece. the stock jumped to the open,
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$25. for those of you doing the math, that gave the company a valuation of $6.8 billion. stock has moderated just a bit, adr's at $20.13 a share. there it is. we wanted to also show you starbucks because investors see luckin as a rival to starbucks in china, which has 3,700 stores in the middle kingdom. luckin bringing up the rear with 2300 locations, but luckin plans to double that amount by the end of the year. starbucks not getting hurt, up about a quarter of a percent. not so lucky, pinterest investors. remember at this time yesterday, gerri willis and i were talking about pinterest and how the numbers for the quarter were going to come out after the bell? well, the pin pulled out of the stock which is now dramatically deflating after its first quarterly result since going public last month. the online scrapbooking firm now down 12%. what happened? posted wider than expected losses. a loss was priced in, but it was much bigger than expected.
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pinterest also disappointed in its forecast for 2019 revenue because they came in in line with wall street forecasts. that did not please investors who expected a more bullish top line because pinterest shares have risen double digits since its ipo. we don't have that chart. at the moment, you can see that pinterest is having a very rough day. breaking news. mexico just out now saying it views the u.s. lifting of steel and aluminum tariffs on both mexican and canadian steel and aluminum with great, with quote, great enthusiasm and the action opens a path up to passing usmca in all three countries. but particularly here, will congress now bite as we are much friendlier toward our neighbors to the north and south? right now, we have steel stocks, this is very weird, we have steel stocks moving lower at this hour, lower. you would think that they would have moved higher because it has been a horrific time for these stocks since the tariffs were
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announced more than a year ago. top names such as u.s. steel and nucor have been hammered since the tariffs were announced. look at u.s. steel, down 66% over the past year and a half. you can see all the other names, alcoa, that's aluminum. the aluminum not hit nearly as badly. let me quickly mention we had steel dynamics down 40% since the tariffs a year ago. you have u.s. steel, we already mentioned kaiser aluminum down 7%. alcoa down 50% year over year. the deal crystallizing after president trump spoke with canadian prime minister justin trudeau earlier today. let's go to the white house, where we find blake burman. i have to tell you, we are losing whatever gains we were able to scratch back but we are still not as low as we thought we would be at this time, just this morning. what do you make of why this isn't being perceived of as good news?
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reporter: well, there's a larger component of the usmca. as you know, which is sort of the bigger puzzle to all of this. you really got two different components here. one is the steel and aluminum tariffs that within the next two days here are going to be lifted. 25% steel, 10% for aluminum. remember, that was placed by the untes o countries all around the world including canada and mexico, and after that, canada retaliated on the u.s. then there was the usmca signing that is the big trade deal, nafta 2.0 that the u.s., canada and mexico signed into agreement after that. however, here in washington, many up on capitol hill were saying there is no way they could go forward with the usmca unless the steel and aluminum tariffs, essentially taxes, would be rolled off. that is the other big component of this. this moved fast within the last
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few days. in fact, it was the top trade representative for canada chrystia freeland who was in washington earlier this week negotiating with the u.s. trey trade representative robert lighthizer. now we know a deal has been struck not only between the u.s. and canada but also the u.s. and mexico to roll back those tariffs. the president, we heard from him just a little while ago in which he said now congress should turn its eye and turn its attention to passing the usmca. watch. >> that deal is going to be a fantastic deal for our country and hopefully congress will approve the usmca quickly and then the great farmers and manufacturers and steel plants will make our economy even more successful. reporter: still a pretty big economic story when you look at it, especially when you talk about steel, because the united states, the world's largest economy, is also the world's largest steel importer. when you look at where that steel comes from, according to
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the commerce department, 19% of it comes from canada. 11% of it comes from mexico. add it up, i think that's 30%. it's a pretty sizeable portion. now that steel that is coming into the u.s. will be coming in without that 25% tariff level. by the way, should also mention that as a part of this agreement between the u.s., canada and mexico, they are going to set up some sort of a system that they say to make sure that steel and aluminum isn't dumped or subsidized once it comes into this country. liz: okay. that was the problem before. that's why president trump put the tariffs in. reporter: to begin with. liz: especially for countries like south korea, which they then struck an individual deal, and china. blake, i just want you to know, this is hitting the tape right now. vice president mike pence is actually going to go to canada and mexico, but the deal has been reached with canada and mexico, he will travel to canada on may 30th to meet with justin trudeau, the prime minister, and
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he will discuss advancing the usmca as swiftly as possible. blake burman, thank you very much. we are watching all of this. the dow has suddenly lost everything it clawed back. not everything. okay. our lows of the session, i want to make this very clear, we had been down 204. right now, we have lost in 11 minutes 112 plus points. going back down. we are down 108, here and there. i will keep you posted. this brings the bigger question to the forefront. even though the lifting of tariffs on canadian and mexican steel and aluminum came as a bit of a welcome surprise, and the markets responded positively, the dark skies over the pacific between the u.s. and china still look forboding. stocks can't seem to find the sun. the dow on pace to close lower for a fourth straight week. that's its longest losing streak in three years. is trade and the tensions that have been coming with it with china the rain cloud that's continuing to drench the
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markets, or are we due for clearer skies? to our floor show traders. chris robinson, what do you think? >> i think that the market continues to actually discount. if you look at where we are, the big picture, the 30,000 foot view down, we are 2.5% off our record highs. we just had a nasty 5% correction. the positive, we recovered half of it. so it's a good recovery and i think next week, we will really digest what's going on with the trade talks today. i think a lot of people are heading out for the weekend, friday, and i think it's probably going to be quiet another hour. next week i think we will be able to see if that can come through the rest of the market but we are still in good shape. the market continues, i think, to discount the trade fears. liz: okay. this morning, china state media, overnight for them, tim anderson, china state media put a freeze on what we expected
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would be what steve mnuchin, our treasury secretary, said just a few days ago. he has said that the near future, they would be restarting trade talks. chinese state media said pretty much there's little appetite to spark new trade talks and that the u.s. has been pulling off irrational acts. that could be why this market is suddenly dropping. what do you think? does everything hinge on china at this point? >> i certainly don't think everything hinges on it but definitely, the trade issues are one of the front burner items on the market right now. i think the positive sign this week is that after the 2.5% to 3.5% declines we saw in the averages on monday, we got almost all of that back the following three days. it looks like we are sliding a little bit into the bell today. but in general, i think people have to be pretty encouraged with the way the market fought back after monday's decline this week.
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now, that being said, we are still very subject to headlines and occasional tweets on trade, and it's just something the market's going to have to deal with going forward. liz: phil, then we have oil. f as if that weren't enough, we have real saber rattling with iran at the moment. we have ships heading toward the persian gulf. iran says yeah, we can hit those. is that just talk? suddenly we have oil moving higher and i don't know how that affects consumer thinking, but we've got the consumer sentiment number which, by the way, we should tell everybody was actually recorded early may before the president and xi jinping froze out talks. >> exactly. well, first question first. i think when it comes to iran, whether we should take it seriously, we don't have to, but i think the trump administration is. i mean, they are sending some ships out there. this is an extremely high risk situation for the global oil market. probably the biggest risk we
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have seen since the persian gulf war. we have to take it seriously. but as far as the comments out of the chinese state media about no trade talks, don't take them seriously, okay? if these are rain clouds, start singing in the rain because every time we sold a market off off chinese trade talks, people got rid of good stocks, threw them away and they were wishing they were going to buy them back. i think this is more negotiation. i think it's going to be hot and heavy. we are kicking the can down the road but at the end of the day, the u.s. trade deal or no trade deal, the u.s. economy's going to do fine. liz: amen. we always do, right? tim, chris, phil, have a good weekend, guys. thank you. we do have health care higher and holding some of those gains, with the closing bell ringing in 48 minutes. united health group leading the dow 30, up $4.57 a share. it is rising but it's not the only one. other health insurors are moving higher after the centers for medicare and medicaid services
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delayed their plan that would have forced pharmacy benefit managers to pass rebates on to you, the patient. anthem, cigna, cvs, humana, all gaining ground. that delay might enrage senator bernie sanders, who has been pushing medicare for all. some folks call that socialist, precisely because these middlemen along with insurors, they always seem to come out with lots of profits while patients desperately try to scrape together funds for medication. hence, bernie sanders pushing as you say, you know, medicare for all. but isn't there a capitalist approach that could solve health care in america? one doctor says he's got it. he's the world's foremost expert on obamacare, coming up. my drea. it turns out, they want me to start next month.
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what we thought is let's investigate health care on the final day of our special week-long series capitalism versus socialism. we bring in dr. klasko, author of "we can fix health care." he's the president of thomas jefferson university and professor, let's get to it. is there a capitalist fix to health care that could involve covering all citizens at a reasonable price and it's important, one where doctors are paid fairly and patients get quality medical benefits? >> absolutely. it's probably not medicare for all but it means you will have to do some of the hard things around the system. it means doctors will probably have to get paid differently. it means insurors, just your last segment, you looked at all the health care insurance stocks going up because of one thing that cms did. that has to change. it means pharma can't advertise their most expensive drugs. we haven't solved the problems that have made health care so expensive. we have just come up with things like medicare for all or here's
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the affordable care act. there's an iron triangle of axis of quality and cost we haven't dealt with. liz: can we go back to insurers and pharma? since obamacare, we have merck up 104%. pfizer, up 136%. lilly up 216%. it's disturbing when you look at the insurers and what they have done since obamacare because they were already doing brilliantly before obamacare. united health group is up 628%. humana is up 405%. these guys make money, no matter what system is or is not in place. doctor, where do the insurance companies shoulder some of the solution here? >> well, i think what's happening, i frankly believe that even they recognize that the gig is up. if you look at the cvs/aetna merger, united health group has been more about data and optum
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and ai, because health care is the only entity in our entire economy where the middleman has been up 600%. liz: i know. >> just those statistics you gave about pharma and insurers, at a time where president obama was trying to decrease the cost of health care, how are you going to decrease the cost of health care if you are bringing back 600% returns to your shareholders? liz: give us your three top solutions to this issue and hopefully some of it involves really holding on to the quality of health care. >> so the first thing i think we have to do is we have to invest in technology and deep learning machine cognition. you think about it, we don't talk about telebanking. we don't get up in the morning and say i'm going to telebank. it's just 90% of banking went from the bank to the home. the same kind of thing will happen to health care if we let it. we stopped that from happening. telehealth, for example, every state has its own criteria. that has to change. that's number one.
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number two, we have to let the market work. so hospitals that should close need to close. insurance companies that can't make it need to make it. what we have is this weird combination of gorilla capitalism among insurers and pharma but the government pays for it. we have to move to a model where literally you are getting paid for what you do. it's the goal of bringing health care costs down to a dollar. we have to deal with pharma doing direct-to-consumer advertising around their most expensive drugs to get patients to want those most expensive drugs. we have to deal with that. none of that was dealt in the aca and they need to be dealt with, whether we go with a capitalist or socialist model. liz: well, we solved it in four minutes. kidding. we have not solved it. but dr. klasko, great to hear your solutions and ideas. somewhere in between lies an answer. we hope we can get it. thank you. come back again. >> liz, thank you so much.
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liz: we are coming right back. 36 minutes before the closing bell, the dow is now down 81 points. it's either the assurance of a 165-point certification proces. or it isn't. it's either testing an array of advanced safety systems.
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liz: you'll have to forgive bitcoin bulls, if they're all over the emotional map. earlier this week, bitcoin punched up above $8,000 so they were doing the happy dance. now, the original crypto currency is seeing its largest intraday selloff in nearly a year. we are down 882 points to $7,056. the plunge coming just days after this pretty significant rally that saw bitcoin trading above that eight handle earlier. the entire crypto market feeling the pain. experts unable to see any clear reason for both this week's upward and downward moves but i would have to say it's just falling on technical issues here. it ran up that much, people had put in sell programs so they could get some profits out. maybe that's all it is.
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who knows. still, bitcoin is up 12% year to date. stocks here and abroad caught in another seesaw session. chinese internet giant baidu really feeling the sting. let's get to gerri willis on the floor of the new york stock exchange for today's fox business brief. gerri: that's right, shares of baidu hitting a new multi-year low after the so-called google of china swung to a loss for the first time ever since going public in 2005. stricter ad regulations and tariff wars blamed for the pain which baidu expects to continue near term. shares are down 17%. the everything store upping its delivery game. amazon taking a stake in deliveroo, a main competitor across the pond. shares currently trading, let's see what that is, falling. take it from there. under armour shares surging after jpmorgan upgraded the athletic apparel maker to overweight from neutral with a price target of $29 a share.
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the first bullish move on ua shares was more than three years coming after a positive meeting with the retailer's top brass. those shares are up 7%. up next, housing starts up but is housing really on a solid foundation? liz tackles that coming up on "countdown." at comcast, we didn't build the nation's largest gig-speed network just to make businesses run faster. we built it to help them go beyond. because beyond risk... welcome to the neighborhood, guys. there is reward. ♪ ♪ beyond work and life... who else could he be? there is the moment. beyond technology... there is human ingenuity. ♪ ♪ every day, comcast business is helping businesses go beyond the expected, to do the extraordinary. take your business beyond.
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with economic plus signs he says should spark their businesses in real estate. that, plus low, low rates. look at this. u.s. long term mortgage rates fell slightly again, that marks the third straight week of declines as the spring home buying season is in full swing. all right. so our next guest was in the room at the nar event with president trump and just left to rush over to our cameras. hps he owns a real estate firm in utah. kenny, thank you for being with us. >> thank you for having me. liz: the economy is very good. let's talk about what your business looks like. i see a lot of for sale signs in my neighborhood which is four seconds from manhattan. they are sitting there for more than six months. can you give us a sense of what's really going on? >> i think there's no such thing as a national weather forecast. i don't think there's a national real estate market. i think that's why it's important for the people that are looking to buy or sell find a local realtor that knows the
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market that can give you good guidance on what to price for, what to buy it for and really hold your hand through the process. liz: what did the president say that struck you and you said you know what, that is exactly how our industry is going right now? >> well, i think we were super appreciative, we always ask the sitting president to come speak to our group and we know how busy he is, but we just appreciate him taking the time to come visit with us and to be able to livestream it to our 1.3 million members. liz: we've got this trade situation and we are not quite sure how it will play out. that brings us to the question that i know you just said real estate is all local, so i'm not asking you to talk about what's happening in cleveland and compare it to what's happening in yuma, arizona, but i will say is there a sense, an overall sense of how home buyers are feeling when we do have that uncertainty? >> yeah. i think there's always an uncertainty and that's why it
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goes back to find somebody local that knows the market and also, the low interest rates, your buying power is better than it's ever been. i think there are some real opportunities to maximize on what you're purchasing. liz: why are home builders down on a day like this when we've got consumer sentiment numbers hitting a 15-year high? we tend to see a lot of real estate stocks down today, i don't know what the rates are doing, but the real estate investment trusts which do have a nice return, certainly should be seeing some positivity here. what do you think is going on with the actual investments for our investor audience? >> i think it comes back to their buying power and it's hard for affordable housing. we have a shortage all across the country of affordable hougs. that's a big thing for not just as realtors or builders or mortgage people. it's where our kids and grandchildren are going to live. it's super, super on our mind, in the back of our mind all the time. liz: i suppose that there is a common thread. you wonder if people are holding one job or two versus just a
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single one in the past, then the millenials are saying it's very hard to save money. where do you see the next generation when it comes to home ownership? >> well, i think it's important to think about the home ownership side. if you are the average median net worth of a renter is $5,000 compared to $250,000 for a homeowner. so you have to look at that millenial and say you know, it's not just a place to have thanksgiving dinner, to teach your kids how to read and help do homework but it's also a good long-term investment to give you higher net worth. liz: federal reserve has paused for the moment. that has certainly been very good for 30 year fixed mortgage rates. we are looking at 4.06. >> amazing. liz: around there. to me, considering back in the '80s when these rates were 15%, 16%, 17%, this is a deal. why don't we see more refis, more home equity lines of credit going in and more purchases of
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homes? >> well, i think the first time buyer is just trying to find something that they can afford, but the buying power, my first home i purchased back in 1995 was 8% and we thought we were stealing it. it's amazing to see what you can do. liz: well, it's good to see you, kenny. i'm glad there's a little bit of breathing room with the industry these days. thank you so much. >> thanks for having me. you have been great. liz: any time. any time. banking on a sale? with the closing bell ringing in 20 minutes and we are down 100 points now. up next, charlie gasparino with exclusive details on what wall street gigantor goldman sachs is doing behind closed doors that charlie says could be signaling a major merger and acquisition move in its future. charlie breaks it next. plus, before you get that weekend playlist going, download everyone talks to liz. i have to tell you, i'm hearing from so many of you. thank you, thank you. i want to hear from you. tell me what you like, tell me
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what you want to hear. tweet me,@lizclaman. it's on apple podcasts, it's on google podcasts. first episode available right now. i will drop a new one next wednesday. "countdown" is coming right back. you wouldn't accept an incomplete job
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at comcast, we didn't build the nation's largest gig-speed network just to make businesses run faster. we built it to help them go beyond. because beyond risk... welcome to the neighborhood, guys. there is reward. ♪ ♪ beyond work and life... who else could he be? there is the moment. beyond technology... there is human ingenuity. ♪ ♪ every day, comcast business is helping businesses go beyond the expected, to do the extraordinary. take your business beyond.
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liz: goldman sachs ceo david solomon apparently making some quiet moves that could have a very loud impact not only on his banking behemoth of goldman sachs but on the entire financial industry. that is a dramatic statement that could only come from charlie gasparino. >> we should point out that i have been speaking with former partners at goldman so this is their assessment of what's going on inside their own firm which quite frankly is having a rough time right now.
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goldman sachs's market cap right now is below morgan stanley's. you know, we are not talking about -- liz: 72 million? >> 72 billion. liz: i'm sorry, billion. what's a few billion among friends. >> morgan stanley is at $76 billion. if you look at jpmorgan we are talking in the hundreds of billions. i don't have it off the top of my head. you can check it out, it's big. that's what they're competing with. that's the problem for goldman sachs. morgan stanley is doing well. it's a financial advisory firm. thep ha they have tons of brokers. goldman sachs is being squeezed by fees. it's trading, which people don't trade a lot anymore. computers do a lot of the trading. that business model has gone. and investment banking which fees are being squeezed. what i'm hearing from inside goldman sachs is that they believe a transformational deal is likely, increasingly likely to come in the coming years. coming years, two, three years. liz: define transformational. >> selling or merging to something like u.s. bancorp.
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that's the name i have heard from several partners. why them? it's a commercial bank with a market cap of about $80 billion. it's almost a merger of equals. when you start putting them together, you are starting to build size and scale that starts to get up there with jpmorgan, with bank of america. liz: you look at jpmorgan, $359 billion market cap. goldman, $72 billion. >> if you merge it with the other one, you are starting to build a firm that's getting close to $200 billion in market cap, again, it's the commercial banking side with the wall street side and there's a lot of synergy -- liz: why is bigger better? >> bigger is better because you need scale now to make a lot of money. you cannot be a sort of boutique bank and it's very hard to be a boutique bank and focus on investment banking. trading is almost outlawed. not totally but largely outlawed by dodd-frank. even though donald trump's in office, they are pulling back regulations, they still haven't gotten rid of a lot of stuff in dodd-frank. investment banking, again,
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goldman sachs, premier firm, morgan stanley, they have been on a lot of deals together. they were on the uber deal. the fees are being squeezed. okay? so this is the problem. now, what does david solomon do. why are former partners saying this. they are talking to people inside. they say he's not hired investment bankers to do this tomorrow but they believe he's clearly thinking in this direction. he's cutting costs. if you see, he's doing some smaller deals around the edges. he bought some money management firm recently. small deals. he's doing small things. they really believe that he's getting this in shape to sell it. again, u.s. bancorp is a name i hear. i hear american express a lot, too. i don't know if that is as easy of a deal. kind of a different form. u.s. bancorp, there's almost no overlap. they are a commercial bank, roughly the same size, merger of equals. the partners may whack it up. we should point out goldman has not always wanted, you know, it's a very independent firm,
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but there are realities to the business these days and one of the realities is this. i think lloyd blankfein, the former ceo who from what i understand didn't get it and he didn't get it largely because he thought trump would come in and reverse dodd-frank which he really can't. solomon kind of gets it. he's also a banker. even with former bankers saying it's on his mind, he has to get through some stuff. they have to get through the scandal, the whisper number inside the bank, i know they set aside $2 billion as some sort of liability. i hear five to ten. they have to get rid of that. liz: the malaysia issue. >> watch for them to get rid of that. once that starts happening, people are saying that this thing is ripe for a deal. he almost has to do it. i don't know how they are going to grow organically, compete with jpmorgan. by the way, the size and scale of jpmorgan, they don't have to be in every deal to make money. they have gazillion dollar deposits. they do a lot of stuff, lot of fee-based income. they are big. they spread their costs over this large, very large company.
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it's hard to compete against that. you have regulations in place that make goldman sachs' business model on top of that, obviously, really problematic. so we should point out we ran this by goldman. they have no comment. i'm not saying they are ready to rock and roll with this tomorrow. i am telling you that former partners, partners, are saying this is going to happen. they believe this is going to happen. it's going to happen soon. he believes that david solomon is thinking in these terms, because he has to. and we will just have to see who emerges. the name i hear most likely, again, u.s. bancorp. i also hear american express. liz: now they will not do it -- >> just to screw me. by the way, sprint is up on our story yesterday about the constructive meeting, it's been up today in a down day. not saying that's definitely going to happen, the approvals. i don't want to hear people screaming at me you said it was going to happen. i'm just telling you, a better meeting, stock is up. i report this like baseball.
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we are in the third inning of goldman. we are in the seventh inning of sprint. liz: okay. just a bit outside. charlie, thank you. closing bell, nine minutes away. dow is down 106. "game of thrones" wrapping up on sunday. this sunday. we don't know who will rule. but our $3 billion closer on whether the winds of winter are coming or going. i can't tell you who i am or what i witnessed, but i can tell you liberty mutual customized my car insurance so i only pay for what i need. oh no, no, no, no, no, no, no... only pay for what you need. liberty. liberty. liberty. liberty. ♪
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...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. liz earlier this week there will be a brief reprieve from the auto tariffs bearing down on foreign auto-makers. that was good news, right? we have breaking news. toyota is releasing a statement about what the president said this morning, specifically the company is saying that president trump's proclamation on auto imports is a sign that their investments are not welcome.
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what do they mean by that? their investments. hold on, give me a second. toyota invested in the united states. they have plants here in the united states. they are saying what president trump said which was he will direct u.s. trade rep robert lighthizer to lead an negotiations. if we don't have a auto trade deal from the talks within 180 days he will impose tariffs on imported cars and parts. so toyota is not happy. that stock is dropping 1.25. we have a car related story. securities fraud class action against lyft a boston based law firm representing investor nationwide is suing the ride-hailing firm. the stock is down 3%. the lawsuit alleges that the company made false and misleading statements in its perspective before it went public. right now lyft stock is at $53.85.
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when hit high of $83. it certainly pulled back. somebody is always unhappy when that happens. closing bell, we're four minutes away. markets set to close out the week once again to the downside. let's spin it forward to gerri willis live from the new york stock exchange. start with the best performers. >> dow leaders and laggards. tell a story of the market. two obsession, china, and it is earnings. start with the positive stories earnings. cisco, travelers, coca-cola. all doing well. why? because of earnings. cisco had outstanding earnings report. they say they're not being hurt by china tariffs. they say they raised prices and they're also not producing manufacturing in china. that is why they're doing so well. travelers also had strong report. lower catastrophic losses. so big news there. let's go to the losers here. caterpillar, apple, all three stocks, china trade news not good for them.
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they're all having trouble. apple which is down again today. nomura cut their price target on the stock. a lot going on. a lot to break down. investors trying to decide which do we pay more attention to? should it be trade headlines or earnings news? liz? liz: going with earnings. i'm a business girl. i like going with business. trade is business, obviously. reporter: that's right. connell: gerri, thank you. >> you're welcome. liz: am i only person on planet earth doesn't want "game of thrones"? everyone on team "countdown," producers, production assistants. on and on. we know "game of thrones" is finally coming to an end after eight crazy successful seasons. still anyone left who will rule what is left. whatever. are the markets more typical than westeros leadership. we bring in a portfolio manager
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manager at federated. i guess you bought the show, linda? >> i do not. liz: yea, i'm not only one. you have to be under a rock to know that it is always winter and dark. do you feel like you're under a rock or looking for sunshine? >> we feel optimistic being second half of 2018. that is predicated on number of different things around the globe. consumer strong. fed is on hold. inflation is benign. earnings are stronger. in europe the pmi decided to turn around. we seem to be kicking brexit continuously down the road. china, one of the biggest regions that affects global growth has put something like 70 different economic stimulus plans into action. they're probably going to put a lot more, especially helping
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consumer as the trade war escalates more than what we expected. connell: we have good seven months left in the year. where should investors start placing bets that will bring them out on top at the end of 2019? >> so i'm going to hedge myself here. i know "game of thrones" is winner or loser but to me if you want to be invested in technology, especially software, so think, structural growth. that is helping technology, 5g. you have cloud data, augmented reality, they're all structural trends helping technology. microsoft a little bit more expensive on pe, but on free cash flow basis is very much more reasonable. liz: yes. >> on the other side if you are a betting person. you want to bet on trade, maybe looking at the industrial companies that have been hit over the last couple months. you know we talked about
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caterpillar, deere today. that is going to be helpful. [closing bell rings] liz: data center reits. that is a fresh idea. linda i would love you to come back to talk specifically about those. we'll put all the picks on liz claman's facebook page. now for "after the bell." lauren: happy friday, major averages closing out the week, dow down 102 points but off session lows. we were down 200 points earlier on in the morning session. i'm susan li in for melissa francis today. ashley: i'm ashley webster in for connell mcshane. this is "after the bell." we'll have more on big market movers. first, here is what is new at this hour? a one-on-one with the attorney general. fox news anchor bill hemmer getting the first interview with william barr since the

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