Skip to main content

tv   Countdown to the Closing Bell With Liz Claman  FOX Business  June 6, 2019 3:00pm-4:01pm EDT

3:00 pm
>> come back. there are good jobs out there. there's training, too. charles: when jeff flock talked about people thinking $3 is a lot for gas instead of $2.50, that underscores the fact we must be making more money. the dow is up 135. we are near the highs of the session. liz, you may have amazing news in your hour. liz: we are hoping. we are watching for this news. in the meantime, in reaction to the breaking news, we have the mexican peso erasing losses as u.s. stocks spike in the final hour of trade on the bloomberg report that with just three and a half days until new tariffs are expected to kick in on mexican imports, the u.s. now considering delaying those tariffs. president trump announced just last sunday. a delay would give negotiators on both sides more time to complete a deal which obviously as you see from this spike, pleases the bulls. as the clock ticks down to 12:00 a.m. monday, those talks going on right now in the nation's capital. the goal is to come to an
3:01 pm
agreement that would stave off specifically the president's threat to impose tariffs in 5% monthly increments on all of mexico's exports to the u.s. avocados, american cars that are made, assembled in mexico, fresh vegetables and so much more. mexican foreign minister saying earlier talks are advancing so what we are going to do, we will take you straight to the white house for an up to the minute update on perhaps maybe what charles said, maybe great news in this final hour of trade. as the trade wars do rage on, talks on an infrastructure bill have ground to a full stop. the ceo of u.s. concrete was so optimistic before president trump walked away from the democrats when it came to talking about infrastructure. he is here in a fox business exclusive on what it will take for the government to break ground on a $2 trillion deal this year. amazon cleared for liftoff by the faa to start flying its
3:02 pm
delivery drones. joining google now in the first drone dogfight over the skies of america. top tech analyst gene munster here to tell us why you shouldn't expect an air prime delivery any time soon but there's got to be an investment play. he's got it. on wall street, markets slightly higher after gaining more than 700 points in the last three days. let's not say slightly. in the last few minutes we are spiking 184 points for the dow. oil bouncing back after getting mauled by the bear. we do have the nasdaq looking healthy, up 20 points. plus the international monetary fund's assessment of the american economy. we have beyond meat's first quarterly report and charlie breaks it next. less than an hour to the closing bell. let's start the "countdown." liz: we need to take a look at
3:03 pm
barnes & noble stock. we now have it resuming trading after the stock was briefly halted and it is spiking, 34% right now on this. the "wall street journal" reports hedge fund elliott management is now the lead bidder for the bookseller which was up for auction. this is a $6.20 stock. barnes & noble was recently valued at just $311 million versus what it was valued a decade ago. you ready? $3 billion. of course, it's been quite the victim of the amazon effect on brick and mortar bookstores. for now, barnes & noble is in play. if you bought it yesterday on a whim, you are up 34%. this on a day when the dow jones industrials is on pace for a four-day winning streak helped along by a potential delay on u.s. tariffs on mexico. look at the transports. yesterday, what a rally. today, we are seeing a bit of a brake tapping here, tapping the brakes. we have that down 114 points. erasing about half the gains we
3:04 pm
saw yesterday for the transports. all of the components within the transports, that's everything from the railroads to fed ex and ups and some of the airlines, are trading lower. why? some face trade war roadblocks. avis, kansas city southern, leading the charge lower. half of the railroad operators revenues come from its mexico business. so this becomes an issue. you can see matson is down 4%. avis down 2.25%. kansas city southern down about 2%. trade is also taking a toll on michael's companies. the owner of michael's stores, the shares hitting a record low after first quarter sales miss. that stock down about call it 12% here, $1.11 to the downside to $8.23. the arts and crafts retailer lowering forecasts on every front. full year profits, adjusted earnings per share and adjusted operating income. what did michael's say? they said the latter reflects a
3:05 pm
25% tariff rate. while consumers may not be shopping at michael's for their threads, they are getting their fix elsewhere. shares of stitch fix are soaring to their best day after beating top-line estimates for the third straight quarter. the online personal styling provider is dressed for stock success. revenue up 29% year over year. that's a surprise. profit as well of seven cents per share versus expectations of a small loss. analysts are lavishing praise on stitch fix, hiking price targets tore the stock. jpmorgan raising it to $34 from $30. right now we have it ats $27.29 spiking 15.75%. we need to get to more breaking news on this bloomberg report that the u.s. may be weighing a delay of the tariffs on mexican goods coming into this country. these are the tariffs president trump tweeted out that took a lot of people by surprise last sunday. the markets are reacting rapidly. the dow did spike higher on the
3:06 pm
news, hitting a session high of 164 points to the upside. we are up 138. look at the ten-year treasury yield. when yields fall, that means there's a lot of fear in the market and people are rushing to the bond market. right now, yields are rising. they hit session highs as investors left bonds. the yields went up, the price went down and now we have that yield at 2.13%. want to see more reaction? check out the mexican peso. while it looks like it's still down a fraction, you don't see where it was. the mexican peso gained more than a percent and that erased nearly all of its losses prior to the report. let's bring in jackie deangelis, who is standing outside the white house. jackie, what can you tell us? is there true hope that an agreement can be reached to avoid the tariffs before monday? reporter: good afternoon, liz. well, the conversations continue today. the mexican foreign secretary said that some progress had been made this morning and that talks continue at the white house here this afternoon. i want you to take a listen to
3:07 pm
what he had to say earlier. >> i think [ inaudible ]. we had some advancement. we are going to return later to continue discussing the several points that we proposed. reporter: he's basically saying the talks have been constructive so far but remember, that's what we heard after yesterday as well. what's happening behind closed doors right now could take several different twists and turns. it's really difficult to say even though the market is reacting to those headlines exactly what's going to happen. i want you to keep in mind two things. you have the president of the united states out of the country. you have vice president pence that is not here, he's traveling on the road today. so here's who we know will take part in the meetings this afternoon. some white house representatives, representatives from dhs and also from the state department. we don't know exactly who, either, and if the officials
3:08 pm
having conversations today are authorized to make agreements like what we're seeing in terms of these reports. of course, trump has said he has no problem waiting until monday until that deadline and imposing the 5% tariff, that is small, it's not the maximum 25% that he threatened here because he really wants to see mexico step up to the plate. the conversations yesterday admittedly were not about tariffs. they were actually about border problems and immigration across the border. that's what mexico needs to demonstrate it can curb for the president to make a move on this. liz: jackie, thank you. i want you to listen to our floor show because one of our traders specifically is talking about that. because we do have trade talks at least with the mexicans advancing, but investors have to weigh the impact of more tariffs and what they might do to the u.s. economy. imf managing director christine lagarde commended what she says is still a strong u.s. economy.
3:09 pm
>> in a matter of a few weeks, the u.s. economy will be in the longest expansion in recorded history. our assessment is that the economy will grow this year at about 2.6% and next year at around 2%. this represents an increase from our initial growth forecast by .3%. liz: an increase, okay. now, yes, while lagarde is praising the u.s. economy, the futures market is oddly pricing in a 70% chance of a rate cut next month and a 57% chance of at least three cuts by the end of this year. how do investors read this? great economy, you usually cut rates when we have problematic economies. will this record expansion come to an end in the not so distant future? is lagarde wrong? let us bring in sarge, phil and
3:10 pm
todd. sarge, your morning note jumped out at me because going back to what could possibly derail, if you believe some of the businesses out there that are very concerned about this, these mexican tariffs, you said the problem may lie with the fact the president doesn't give parameters to the mexicans of what would be enough when it comes to border control to then erase these threats. >> yeah. listen, let's start off with christine lagarde. know what i do when i see christine lagarde in the paper or on a website? i don't read it. because she doesn't add value. that's out the window. put her in the same box with larry summers and paul krugman. there's never any help so we don't need them. liz: even when she's right? i got to tell you, she has been right in the past, because i cover these. i go to d.c. and cover the imf events. on the last two or three, she called it. she said that, you know, look, it's like jumping off a pancake. you're not really taking that
3:11 pm
big of a step. but she said in advance of the tax cuts, if america puts in the tax cuts, you will see a real punch to this economy. she was right there. she's been right on some other things, too. >> in my opinion, she's been right after the fact a lot more than she's been right ahead of the fact. not just her, okay? there's a lot of economists i don't like. i'm not singling her out. what we have to do is focus on the yield curve, first off. repairing the yield curve is job one. that's why the fed has to cut. they should make a statement this is not due to economic conditions. they should say this is because the yield on short term paper is so much larger than the yield on longer term paper that we have to recreate net interest margin so there can be a healthy lending environment which there is not right now. sell all the treasuries you want, tell the chinese, the germans will buy the long end. that doesn't matter. all right? the longer the yield curve, it's almost cemented where it is for now unless something changes dramatically. it's the short end we have to repair. that's a direct result of the fed's error in december.
3:12 pm
i can't hear anything if you want, but i'm sure the other guys want to get in. liz: phil, i know you want to get in. if the president were to give parameters, say all right, if you stop this number of people, i mean, that's been the issue where the mexicans are waiting on some real guidance and hard metrics on what to aim for. we could still see something happen sunday night, monday morning, and what would that do to the markets? let's prepare our investor viewers. >> you know, i think we have already seen what could happen. we saw it in the energy complex. a massive turnaround at the end of the day. we saw stock markets rise. listen, a lot of these threats by donald trump, you know, really haven't hurt the economy but they have hurt the markets. that's i think the point with christine lagarde and everybody else. everybody assumed that donald trump, trade war was going to slow the u.s. economy, even christine lagarde was biting her teeth a little bit when she said
3:13 pm
the economy's doing good despite the trade war talk. but my ultimate thing is that donald trump made a huge point with mexico. hey, you're not doing what it takes. we are going to really press you every way we can to get you to stop with this border crisis because mexico can do it. listen, if these people stayed in mexico, they would be kicked out. if they have a passport to the u.s., you can stay as long as you want, that's got to end. i think donald trump is essentially ending it. his promise initially was, you know, build a wall, mexico will pay for it, it might be cheaper than this trade war. liz: i hear you. i hear you. todd colvin, a bear market with oil even with the spike today. where are the flows going when you have to balance what could be a trade war but also what christine lagarde says which is hey, a really decent economy still and maybe the overhang of
3:14 pm
promise to a hinted fed cut. >> we need to take a step back. first, the stock market has retraced all the hiccups we saw last week. the bond market remains with yields extremely stubbornly low. that didn't happen overnight. go back to march or even october of last year. trsh treasury yields have been in a tail spin while the stock market has been rising. there's been a real disconnect. with the geopolitical risks rising from the trade wars, and to go to christine lagarde's point, let's not forget the fed raises rates when they want to but cut them when they have to. this may be one of those times that they have to, despite what they have said since beginning of january. liz: great to see you guys. thank you so much. we are 45 minutes away from the closing bell ringing. the red umbrella turned inside out. don't you hate that, when the wind hits you and your umbrella inverts? that's kind of happening to travelers. it is the biggest drag on the dow jones industrials right now. down about $1.13.
3:15 pm
you can see nike, second worst. you've got kbw downgrading travelers, a huge insurer, to market perform, saying rising claims from mother nature's wrath this quarter could impact profits. up next, the debate rages on over the construction of the border wall. steel slats or concrete? but the ceo of u.s. concrete is looking well beyond the wall at a stalemate over the $2 trillion infrastructure bill. forget concrete. that's stuck in political quicksand. not only does the ceo have a degree from wharton business school, he's a west point trained army ranger. he's next on what we need to get this deal done and why american businesses are depending on it. let me ask you something.
3:16 pm
can the past help you write the future? can you feel calm in the eye of a storm? can you do more with less? can you raise the bar while reducing your footprint? for our 100 years we've been answering the questions of today to meet the energy needs of tomorrow. southern company who used expedia to book the vacation rental which led to the discovery that sometimes a little down time can lift you right up. expedia. everything you need to go.
3:17 pm
3:18 pm
3:19 pm
liz: we need to get a dow in stintra day up right now. we are at session highs. look at the climb from earlier today. so much of this has to do, look at this, up 176 points, much of this has to do with this bloomberg report that has come out that in essence says the u.s. is weighing, delaying those tariffs that the president had
3:20 pm
announced via twitter on sunday. 5% incremental by month tariffs on all mexican imports coming in. this should articulate to you guys how much the bulls and businesses dislike tariffs. because if there's news that this will be put off, they are very happy. dow jones industrials up 182. all right. let's get to infrastructure. if u.s. infrastructure brought home a report card, it would be sheepishly handing it over to its parents and it would be stamped with a d-plus. could actually be worse today because that dismal grade was given in 2017 by the american society of civil engineers. the engineers assess that the u.s. will need $4.5 trillion over the next decade to improve our roads, bridges, dams and airports. for now, those repairs are in limbo as president trump says he will no longer discuss infrastructure while the democrats continue to investigate him. this is alarming news for u.s.
3:21 pm
concrete, as 17% of the company's revenue is dependent on infrastructure spending. it is the leading supplier of concrete and aggregates for projects including major u.s. airports, huge real estate developments like hudson yards in new york city, and top tech companies like workday and facebook. yes, they built some of their campuses. the ceo joins us in a fox business exclusive. bill, may i first just say, sir, on the 75th anniversary of d-day where we have seen such heroism, back during that normandy invasion, we just wanted to thank you for your service. i'm sure you were quite moved by what we have seen. >> of course. it's a historic day. this is the 40th anniversary of my graduation as well from the military academy. it's a bittersweet day for me. liz: from west point. thank you for all that you have done. i know it is bittersweet. the long-promised infrastructure bill was a shining beacon of hope for your company, now you are kind of looking at a
3:22 pm
standoff between the president and democrats. it's got to be frustrating for you. >> it's extremely frustrating. i have been lobbying for increased infrastructure spending since 1993, the last time the federal gas tax was actually increased. if it had just been indexed for inflation it would be at 31 cents per gallon now but the political stalemate we find ourselves in is extremely frustrating. liz: i would imagine. now, there are some federal grants out there, nowhere near $2 trillion, but the faa just announced yesterday, for example, $840 million for projects, 380 u.s. airports, but isn't the really pressing issue our crumbling roads and bridges? >> you said it at the beginning of the segment. a d-plus from the society of american civil engineers. think back. i'm over 60 years old. when i was 10, everything in this country was new. 1957, we had the world's best infrastructure with the eisenhower highway system.
3:23 pm
you go out into new york city now or los angeles or san francisco or chicago, you would say what happened in the last 50 years. many times you say nothing, it's been band-aid after band-aid after band-aid. but there's no political will for it now. there's no political will because we still don't have a groundswell of popular support. polls indicate that 60% to 80% of the u.s. population think it should be priority number one. until they make their legislatures or the administration hear their voice, it's going to continue to be kicked down the road. liz: with the trump infrastructure plan turning into a political football, i guess delegated to the sidelines, you have non-federal projects and they're big, you have done massive construction. you did hudson yards. built on a strong economy. you start to see a lot of those projects when there's a firm gdp. are you noticing strength or a slowdown, something in between? >> no, that's an excellent point. in your introduction you said
3:24 pm
u.s. concrete had 17% of our revenues involved in infrastructure which means 83% of our revenues are non-infrastructure related which means gdp north of 3% is much more meaningful to us. right now, we are not seeing a slowdown in any of our markets, in almost any of our sectors. right now, our only hindrance is weather and weather has been a front page news item for the last couple months, obviously. that does slow down construction projects. but it doesn't cancel them. we have a very very strong underlying economy right now. liz: that is so great to hear. christine lagarde is right. see, we just heard from her saying it looks decent at the moment. good luck to you. come back, because this infrastructure battle has come to a standstill and there are not even any talks about it. i'm sure that's something this country needs, wants and you do, too. thank you. >> absolutely. we will never give up. thank you. liz: bill sandberg, been fighting for a long time on many fronts. we are coming right back.
3:25 pm
stocks right now at new session highs. now we are up about 187 points. stay tuned. -driverless cars... -all ground personnel... ...or trips to mars. $4.95. delivery drones or the latest phones. $4.95. no matter what you trade, at fidelity it's just $4.95 per online u.s. equity trade. ni'm workin♪ to keep the fire going for another 150 years. for beauty that begins with nature. ♪ to make connections of a different kind. at adp we're designing a better way to work, so you can achieve what you're working for. my body is truly powerful. i have the power to lower my blood sugar and a1c. because i can still make my own insulin.
3:26 pm
and trulicity activates my body to release it like it's supposed to. trulicity is for people with type 2 diabetes. it's not insulin. i take it once a week. it starts acting in my body from the first dose. trulicity isn't for people with type 1 diabetes or diabetic ketoacidosis. don't take trulicity if you're allergic to it, you or your family have medullary thyroid cancer, or have multiple endocrine neoplasia syndrome type 2. stop trulicity and call your doctor right away if you have an allergic reaction, a lump or swelling in your neck, or severe stomach pain. serious side effects may include pancreatitis. taking trulicity with a sulfonylurea or insulin increases low blood sugar risk. side effects include nausea, diarrhea, vomiting, belly pain and decreased appetite, which lead to dehydration and may worsen kidney problems. i have it within me to lower my a1c. ask your doctor about trulicity.
3:27 pm
but how do i know if i'm i'm getting a good deal? i tell truecar my zip and which car i want and truecar shows the range of prices people in my area actually paid for the same car
3:28 pm
so i know if i'm getting a great price. this is how car buying was always meant to be. this is truecar. we're on the move. hey rick, all good? oh yeah, we're good. we're good. terminix. defenders of home. the ♪exus es... ...every curve, every innovation, every feeling... ...a product of mastery. lease the 2019 es 350 for $379/month for 36 months. experience amazing at your lexus dealer.
3:29 pm
liz: i need you to mark the markets right here. while we are up 191 points, we have breaking news. fox news' john roberts has just reported that the white house itself is pushing back against that bloomberg report of a delay in tariffs, citing two officials that said while talks are going well, an imminent deal with mexico is not the case. now, if you look at that and hear that, you are still wondering well, both those things can be true and yet they can still weigh delaying the ta tariffs on sunday/monday but at the moment, john roberts reporting there is no delay at the moment. meanwhile, "the washington post" is reporting that under a possible immigration deal, mexico would deploy 6,000 of its own troops to the guatemalan border. that deal would also allow the
3:30 pm
u.s. to quickly deport central american asylum seekers. that's from "the washington post." stocks are still at session highs. in fact, they are climbing here, up about 200 points. >> i know i got a different story but just to reiterate what i reported on cavuto earlier today, gop senators are pushing back on this tariff thing. the general consensus is that they don't want the tariffs on mexico. they think that's bad for republicans running in certain states, texas, mainly farm belt, wherever, you know. liz: the market is a voting machine. right now it's voting against tariffs. >> you think what's going on right now is cooler heads are trying to tell trump to decouple the use of tariffs and the border. no one's denying that there's a border problem. liz: but charlie, can i just take the other side here? nothing has worked. this tariff threat has got their attention. >> but we can go into a
3:31 pm
recession with this tariff threat. liz: but the economy is strong. isn't now the time to take on this issue? >> that's the conventional wisdom but listen, ted cruz wouldn't be against it, john cornyn wouldn't be against it, who is the woman that had the crazy commercial from iowa, the senator, joni ernst is against it. i'm telling you, there's a lot of -- you could lose the senate if the economy starts falling out in those areas because of a tariff war. i think we should get back to my story. on the sprint/t-mobile deal. $26 billion deal, is there a lot riding on it? there are people in the trump administration who believe if we are going to beat the chinese at 5g we need this deal to go through. liz: can we get sprint up here? >> these two companies are, they are better together than apart. liz: sprint is down. >> okay. that's interesting. they're down. here's what we know about the state of play of this. it needs to be approved by the justice department. career staffers in the justice
3:32 pm
department, not makan delrahim, the trump appointee, want to kill the deal. he's in a difficult spot. they are still negotiating. we do not think the deal will come this week. i can just say it's possible, something dramatic has to happen. from what we understand it's not coming this week. makan delrahim is out of the country in paris or -- i think he's in paris for some economic conference. he's not due back in the country until tomorrow. you kind of need him here to do it. unless something radically changes which it always could, i'm just saying, they have a deal tomorrow, there is a possibility that somebody comes up with a deal and everybody is going to sign off. justice department review will be announced earliest next week and it could come by next week. we should just point this out. very difficult deal, lots of negotiating. at & t -- excuse me, t-mobile and sprint are coming up with
3:33 pm
additional concessions, giving up spectrum, allowing maybe more competition, maybe a fourth carrier to come in if they buy that spectrum. they're not going to create another carrier. they will sell spectrum where another carrier could come in. it needs to be approved not just by t-mobile and sprint, it needs to be approved by their principal owners. t-mobile's principal owners are deutsche telecom. sprint's principal owners is softbank. there's a lot of moving parts here. it needs to get approved. one other thing, what companies tell me -- liz: what is that? >> is that a real t-mobile chart? liz: what is going on here? >> one interesting aspect here, the justice department hasn't said no yet despite everything you read. that, i would say, besides the fact the economic guys like kudlows of the world want the deal done, that is a positive. not saying it's going to happen. i'm just telling you it's a positive. sprint is off its lows, i believe, based on my reporting. liz: we started this report, it
3:34 pm
was down a third of a percent. looks like it's going flat. charlie, thank you. charlie, thank you very much. 27 minutes before the closing bell rings, now we are up 230 points. maybe it is on the promise, perhaps, that the mexicans will send troops to the guatemalan border. more on this. kevin, meet your father.
3:35 pm
3:36 pm
3:37 pm
3:38 pm
kevin kevin kevin kevin kevin kevin kevin kevin kevin kevin trusted advice for life. kevin, how's your mom? life well planned. see what a raymond james financial advisor can do for you. liz: folks, we need to now look at intraday charts of the dow, the nasdaq and the s&p. why. you see this spike? it comes on a report from "the washington post" that perhaps the mexicans are now ready to deploy, to agree to deploy some 6,000 troops to the guatemala border to stop the flow of migrants. this of course had been a wider request by president trump, who had threatened on sunday that he
3:39 pm
was going to slap 5% tariffs, 5% increments month after month, until october when they hit 25% unless mexico secured the border. well, on this report it looks like they're ready to take a step that as far as i'm concerned, they hadn't yet done and that simply is that they would offer to send up 6,000 national guard troops to their southern border with guatemala to stem the migrant flow. you've got the dow jones industrials jumping 244 points. i remind you, when we started at the top of the hour it was about 122 points to the upside. nasdaq, s&p jumping. let's look at the leaders here. specifically in technology. yes, they are rallying right now. all the names, amazon, facebook, alphabet, microsoft and apple are jumping and helping sort of balloon this rally even higher. let's bring in top tech analyst gene munster, managing partner at luke ventures, to weigh in on the sector and in essence all of these names that could or might
3:40 pm
not be affected by tariffs but it sure looks like everybody is pretty happy at the moment. talk about tech specifically and how it would benefit from the tariff wars dying down. >> well, tech has a particular big impact here, just because it's obviously the future of the growth i think of, if you look at the market, whether it's china, the u.s., less on mexico's side but this is a critical aspect of growth. so tech has a particular benefit if, in fact, we can come to some resolution and the particular bigger headwind in the event this continues. i want to emphasize that headwind piece. the nasdaq over the last month was down call it 5% now but if you look at companies even with the surge in the last few minutes here, companies like apple and amazon are down 11%. so there is a disproportional benefit and a risk really to these tariffs. i also want to make one piece very clear to people. these are complicated
3:41 pm
geopolitical discussions going on not just with mexico but with china. i think that even though the market is optimistic about some of the moves from mexico that there might be some resolution, i'm in the camp that this is going to take a long time. i recently had conversations with former u.s. trade officials and both of those have warned that this is probably kind of a six-month window. to put it together most clearly, it's nice to see what's going on today but it doesn't mean we are out of the woods. liz: okay. well, let's talk about apple because you had tim cook announcing that he felt it really wasn't going to be affecting apple and that he didn't believe the chinese would sort of punish apple as the united states has blacklisted huawei. they would not be in sort of a tit for tat here. is he right? do you believe that? >> i do and it's important to think about the two levers related to apple and china. there's the direct government intervention lever.
3:42 pm
this would be the equivalent of china putting tariffs on apple products sold in china. i think that that is unlikely and i think that's what tim cook's recent comments related to, that it's unlikely that's going to happen. keep in mind that about three million chinese people either directly or indirectly work with apple and so this is an important partner. apple is an important partner, outside of all of the huawei. the second risk, of course, is some backlash, call it a boycott of apple products from chinese consumers that want to express some of their feelings about what's going on with this trade dispute. that's something that we are paying very close attention to. last night, we went and looked through different, this by the way, this next piece is surprisingly positive, and supportive of what tim cook has said. i have been in the camp for the last few weeks that apple has great risk around a boycott in china. but what we have picked up again last night is looking at their two largest social media sites,
3:43 pm
wechat being one, and only a small portion, 4% of the conversations on those sites related to apple are about not buying or boycotting apple products. i feel like there is definitely some room for optimism around apple and their china business that it won't be as negatively impacted as maybe i would have thought two weeks ago. liz: i don't want to ignore big news out of amazon, that amazon has now been cleared by the faa for drone delivery testing, mostly in rural areas. they are second now to google's project wing. so now you've got the two biggies working on what could be a meaningful move to add revenue if drone delivery is suddenly widespread. you've got to tell our investors because there is always a trade here, would you pick one or the other to be more successful when it comes to drone delivery and that that would really add to the bottom line? >> that's an easy one. amazon is going to be the
3:44 pm
beneficiary. when we talk about the pace, this is science fiction in motion when you think about drone delivery. you talked about being in rural areas. i want to caution we are probably a decade away from this really being mainstream and actually having an impact. amazon in particular has a good sense not just based on them being an e-commerce company but they are also very much a logistics company. we have heard about some of their other projects, these warehouses essentially, actual planes that take many, many packages and deploy drones from them, think of it as a warehouse in the sky. most encouraging about their long term. what does this mean for the consumer? again, it's a decade away. we will have more drones. that's one piece to it. think of noise pollution. but also, we will be able to get our things much quicker and cheaper. liz: all right. you say amazon will be the one at the moment to beat google at drone delivery revenue bump. good to see you, gene. thank you very much for joining us. >> thank you, liz. liz: on a very busy day.
3:45 pm
we have moderated just a bit. still up 209 points on news that mexico may be ready to add troops to its southern border. i switched to liberty mutual, because they let me customize my insurance. and as a fitness junkie, i customize everything, like my bike, and my calves. liberty mutual customizes your car insurance, so you only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪
3:46 pm
3:47 pm
3:48 pm
3:49 pm
liz: i am about to give you the best lesson as to why you shouldn't time the markets. if you got scared last week and sold out of the markets, you have missed a three-day rally, today, yesterday and the day before, of 922 points for the dow jones industrials. so for the week, it appears that we may, depending on what happens tomorrow because remember, we are getting the jobs report for the month of may from the labor department, this would be the first week to the upside out of seven weeks, so
3:50 pm
it's been a long stretch of bearish moves here but right now, it looks like we may by tomorrow at 3:00 p.m., 4:00 p.m. eastern, when the markets close, be to the plus side. all right. crude oil spiking in the after hours on the report that the u.s. may delay tariffs on mexico but now really on the move in the aftermarket session on the "washington post" report that mexico is offering to do something it has not previously offered to do when it comes to offering to secure the border, and that is deploying some 6,000 troops at its southern border with guatemala. the report is easing concerns over an expectation for a slowdown in energy demand. oil was down a good portion of the day before jumping just before settling higher by about 1.75%. we are now up 3%. if that gives you any indication of the real reaction. this comes just one day after crude oil fell into bear market territory. that means down 20% plus since its recent highs. to jeff flock. you have such an active, packed
3:51 pm
day at the moment, right? reporter: i tell you, we are now in the after hours, we just hit a session high again, up $1.61 as i look at the board, 62. you're right. we spent most of the day bouncing around flat, you know, little bit down, little bit up, mostly down, and then phil called it. i got to shout-out to phil flynn, our oil guy, who said watch the close. he goes if we close up at the close, and we get any kind of a movement to the positive, we are going to -- it's going to take off. in fact, it had. then fuel to the fire was this news that maybe the tariffs and maybe that there's going to be a deployment of troops to the border. i mean, that would be huge. we say some of this stuff has been baked in. i don't think that's fully been baked in. that's just your obvious proof right there. it was a fun day. you look at the mess in the pit here, you can always tell when it's a busy trading day. it's a mess. what can i tell you? liz: those boys, they need to
3:52 pm
get a lesson in housekeeping. jeff, let us just remind our viewers, we still have an inordinate amount of supply here. we just saw an incredible build on wednesday of, what, 6.8 million barrels. the supply is outweighing the demand still. it's important to note. reporter: phil makes a point that the energy information folks that some of this data may not be -- they have been correcting their data as they go forward. number two, we have this situation with wet weather, you know, floods, which have kept people from driving, which have stopped some production and which have kept the farmers out of the fields. they're not burning any diesel. that may be the reason for the build as well. theoretically that's going to correct itself. liz: we will watch for it. jeff, thank you very much. jeff flock. closing bell, we are now eight minutes away. dow is up, room 222. we stand at 25,761. who got that reference? you have to be born before 1978.
3:53 pm
closing bell, as i said, eight minutes away. don't go away. und personnel... ...or trips to mars. $4.95. delivery drones or the latest phones. $4.95. no matter what you trade, at fidelity it's just $4.95 per online u.s. equity trade. no matter what you trade, at fidelity for people 50 and older colat average honey have you seen my glasses? i've always had a knack for finding things... colon cancer, to be exact. and i find it noninvasively... . . you can always count on me to know where to look. oh, i found them! i can do this test now! ask your doctor if cologuard is right for you. covered by medicare and most major insurers.
3:54 pm
3:55 pm
i'm workin♪ to make each day a little sweeter. to give every idea the perfect soundtrack. ♪ to make each journey more elegant. at adp we're designing a better way to work,
3:56 pm
so you can achieve what you're working for. ♪ liz: at its highs the dow was up 260 points. that was just a few minutes ago. right now we're still gaining but 189. i want you to look at the transports here. when we began the show they were down 154 points. they have erased quite a bit. still down by only 88 points. do traders believe this rally tahas exploded in the hour? gerri willis on floor of new york stock exchange. what are they saying, gerri? reporter: liz, this is interesting stuff i can tell you. mexican officials are making progress in talks with the u.s. that accounts for some of the turnaround we see. i got to tell you, particularly people who trade oil they don't believe this idea that the u.s. would actually impose higher tariffs on mexico because they say it is so easy for mexico to
3:57 pm
retaliate. retaliate on what? retaliate our natural gas goes to mexico, other products go to mexico. there is a lot of disbelief down here about how it will play out. lots of questions about it. as you see we've been all over the place with oil prices. finally beyond meat, in my ear, you want me to go there now, earnings 15 cents a share. put up or shut up time for this company. it is up, 300% since it went public. back to you. liz: i know. i have still to get one of those beyond meat burgers. reporter: i have. no? >> liz: from a beef guy. reporter: maybe people who made it. didn't like it. liz: get someone to test it here. sean o'hara is here. put beyond meat aside.
3:58 pm
those numbers coming out after the bell. we have 2 1/2 minutes before the closing bell rings. what a final 40 minutes of trade here. what do you think when you see this kind of a move? >> i feel like we're playing ping-pong. bad headline about trade and fed, market falls off. good headline about trade, market rally as little. we'll be that way until this bets resolved. until we get back going under the hood, evaluating fundamentals. >> liz: what you do and do well. we like to hold our countdown closers feet to the fire. there is no fire but sizzle. time you were on three picks did well. american tower, cci. look at these moves, particularly american tower up 22%. so you're doing something right. >> stay in the same place, cyrus one. publicly real estate company. their focus microsoft helping
3:59 pm
them buildout out the cloud. we'll go from billion to 75 billion internet-connected devices iot story that can't happen without that. tech, this one was up for the month of may where nasdaq was down. fretting about the 10-year at 2.11 is that a bad omen for stocks? if that is what you're worried about, it is a great omen for real estate because most loans are priced off 10-year treasury. liz: 2.06. it went down. we certainly come back on the 10-year. 30 seconds left here. what do you advise investors to do, suddenly three days straight we have compiled real gain of 800 plus points on the dow? >> you have to check your goals. what you own you should own based on risk tolerance and time horizon this is a good
4:00 pm
opportunity to paring some positions to lower valuations and higher quality stocks and buy some dividends. liz: great to see you. shawn o'hara. [closing bell rings] one report, we stress one report, that mexico is ready to move on border security. as we wait, time for "after the bell." connell: some reports liz was talking about, that u.s. may delay tariffs or mexican troops moving to the border. whatever, dow is up 188 points. four days in a row gains for the dow. that is the longest winning streak since the 18th of march. s&p and nasdaq in the green for three days in a row. it has been quite a week of bouncing back. we'll see where it pose. good to be with you. i'm connell mcshane. melissa: i'm melissa francis. this is "after the bell." more on the big market movers. first here is what is new at this hour. weighing all options, mexican


info Stream Only

Uploaded by TV Archive on