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tv   After the Bell  FOX Business  July 25, 2019 4:00pm-5:00pm EDT

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thank you very much. [closing bell rings] liz: guess what? we have very important earnings stacking up right now. alphabet, amazon, more. take it away "after the bell." connell: a possible breakout of big tech. two companies reportedly being targeted by the justice department for having too much power, about to report quarterly results. it is any second for amazon and alphabet. we'll bring you those numbers that may move the markets tomorrow as soon as they cross the tape here. good to be with you. i'm connell mcshane. lauren: i'm lauren simonetti in for melissa francis. this is "after the bell." the dow closing the session down 125 point that was off the session
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lows. almost 2/3 of the indices loss is boeing. s&p 500, nasdaq ening in the red yesterday after hitting record highs. connell: a little bit of a pullback. we look at big names we brought you "after the bell" are closing out today. tesla plummeting following big quarterly loss. the stock is down more than 13 1/2%. lauren: look at ford down 8%. disappointing earnings results. facebook erasing earlier gains despite a earnings beat. we told you yesterday a rise in daily active users. connell: at the white house the president holding an event celebrating the administration commitment to help american workers. we'll bring you headlines at this hour as well. lauren: we're waiting with bait the brett with latest earnings from amazon and parent alphabet. today's panel, adam lashinsky, "fortune" magazine editor.
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you're alphabet spouse. which means your wife works at google. >> that is exactly right. lauren: hitha herzog, chief research officer. thanks for joining us, as we await on the results start with you. connell: jump in for one second. amazon you can see falling like that. eps, earnings per share for amazon in the most recent quarter coming in $5.22. so comparable to estimates. that would be below the estimate of 5.57. so that maybe one of the reasons we're looking for the other headlines right now that amazon's stock is immediately selling off. alphabet, on the other hand, google's parent company is up almost 4%. we'll take time, talk it through the panel on amazon a little bit. let's go to deirdre bolton in the newsroom to throw more details together on this figure. what do we see, deirdre? >> you highlighted what is
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really pushing the stock down post-market. you can see it falling as you alluded to. they missed on earnings. that is why there is all this pressure. wall street was looking for earnings of $5.57 per share. they posted 5.22. that is a clear mess. highlight on revenue, they exceeded expectations. the company posted 63.4 billion. that is better than an estimate of 62.48 billion. that is a rise of 18% quarter on quarter. but the miss is big. we were be remiss if we didn't mention it. one of the things i will start looking at is the year on year. there were a lot of people saying that their costs would be going higher. this would or could eventually eat into these profits margins. so i'm guessing that is part of the problem. i will comb through the numbers, connell. when i find more. that is the headline. a miss on earnings. connell: miss on earnings. stock is down 1% on amazon. we'll go back and forth. these are both huge companies. i mentioned google's stock was
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up. we'll get back to it, alphabet. they beat on earnings. again we'll come back to that. adam lashinsky, let me go to you. we'll talk through amazon for a minute. we'll obviously have time, take our time, get to the alphabet figures. i want to point out they were better than expected. any, any take on the miss at least on the bottom line here, adam? >> interesting thing the miss on the bottom line, we're talking about amazon's bottom line. wasn't long ago there was no bottom line. they are starting to well in large part to the amazon web services business which is not only growing quickly, but makes a lot of money. investors expect a lot more when all they expected before was toward revenue growth. a miss will hurt. down 2% for a company like amazon is not biggest thing in the world. connell: no it is not. lauren: they were concerned that revenue were slow from previous
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growth. came in better than expected at $63.4 billion in the quarter. they also started that one day prime free shipping. that obviously is a cost. $800 million was the cost. do you think that could be one of the reasons their bottom line was missed? >> right. the cfo alluded to this in the last earnings call. i think it raised a lot of eyebrows when he alluded to it. this is exactly what we're seeing there. the actual investment was $4.2 billion so prime could go to one-day shipping. while they are trying to focus on top-line growth, clearly having these kind of costs impact the bottom line. you will see that come in the eps as we saw being reported just now. connell: lenore, quick take on amazon? adam said not the end. world but the tock is selling off on a miss on eps. what is your take? >> it is the first eps miss in the past seven quarters.
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yeah it is not great but it is not that bad. i really want to see what the mix is though. if he look at the first quarter of 2019 you had where music, video and aws was only about 1/5 of total revenue. but it accounted for 50% of the gross because amazon has been trying to focus on those areas that have higher margins. i'm betting part of this is going to come from increased costs in shipping as they moved to the one-day. if you look at the past trailing 12 months, their shipping costs were 30 billion, more than all of aws revenue. they have taken a hit on that. connell: over all margin of 4.9% for margin. north american business relative to expectations did better than international expectations. relative on north america, a little below on international. what about alphabet. >> this is much different picture. if you look at the postmarket trade, alphabet google moving much higher.
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beat on top and bottom line. wall street was looking for 11.30 on share. a beat, slight beat, 38.1 a was wall street was looking for. alphabet posting 38.9 billion in revenue that explains the green on the screen. i want to highlight something for your conversation on amazon, if i may, i noticed that the web services revenue is a little bit light. it is 8.38 billion. versus 8.37. wonder if that was not part of profit issue. i continue to go through the numbers. want to discuss that with the panel. you're going through all the numbers. connell: let's do that now, before we get back to alphabet. i think that is interesting, the growth there is tremendous growth on relative basis but the growth in web services has been slowing. i think the average growth was
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47% for years. fourth quarter of 2017 to fourth quarter of 2018 or over that year. now it has been coming down into the mid to high 30s. as deirdre says, a little lower than what people thought. a big deal what do you make of it? >> it is. it is a big deal first of all. i think they had alluded to this in the past quarter. we'd seen this drop happen. to your point it has been happening for the last couple quarters. with that said, i think increased competition. amazon is the not only web services on the market now. i think that because we saw that, since, again, since last quarter, we're seeing this sort of trend lower. so i think this is just sort of we knew this would happen anyway. lauren: alphabet the stock is jumping 6.25% now. lenore, looking at overall ad
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revenue, ad revenue in the quarter is $32.6 billion, who you are you reading that number? >> i am worried about them going forward, that such an enormous portion of their revenue is coming from the click advertising. as content is getting to the end consumer in different ways, seeing that with netflix, we're seeing that the consumer more savvy how they want advertising to get to them. i see that click revenue is roughly like 80 some percent of revenue. that i think they will have to focus on, getting a little more sophisticated. connell: what do you think of that adam? i'm sure you have that. >> i have a different take completely. what we see from facebook yesterday and google today, these two companies more or less completely dominate the digital advertising market, they continue to dominate the digital advertising market, rest of us, newspaper, magazine companies,
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just don't have it anymore. so google is addressing their mix. that is through their cloud services which gets to our conversation about more competition for amazon. but for the time-being they and facebook own this incredibly lucrative market. lauren: this is also, lenore, where regulators and investigators come in because they're looking at dominance for google and ad business. tulsi gabbard was the most searched candidate after the debate. she is suing google because she says google ads suspended her account. that affected her fund-raising, et cetera. this puts the company in hot water because of their dominance. >> she complained that her emails actually went to spam at higher rate than the other candidates emails. we, google still really does have to face this kind of potential evil empire image that
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it has got. it does control so much of how we get information. connell: you haven't had a chance, to talk, adam as much of that part. we talked on the show yesterday, with regard to facebook, comes up with all the companies, regulatory risk going forward from alphabet's point of view. >> i think this conversation will completely mirror the trade dispute conversation and interest rate conversation that we have whereas this is a very serious, long-term concern and almost completely meaningless to near-term earnings. you've seen this now today with google and yesterday with facebook. connell: did see it with facebook. lauren: let's bring in hitha amazon is not immune to the vests. the question is, how much patience, even if they go nowhere, even when you say noise, what is the end goal of the investigations and what is the patience of shareholders? >> we're talking about shareholders versus the actual customer too.
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when you say to the end game, again, this is multibillion-dollar company, so of course regulators have going to investigate it. even if there was a negative outcome, i'm sure investors would probably recoil for a little bit. but at the end of the day the amazon customer is so loyal. they do not want to they don't want to stray from the fact this is a very easy way of shopping for things. lauren: yeah. >> from that top-line growth, that will not have an impact on the stock f you're looking at it from the bottom-line growth, when we start talking about potential fines that the company could incur if regulators do find they are this violation of a bunch of laws of a bunch of laws and regulations that could have a major impact. lauren: amazon said they had more prime members on on july 15th than any other day. the customer is certainly shopping on alphabet. connell: amazon authorizing a
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stock buyback, $25 billion, class-c stock. that is looking from the news release. amazon down by 2%. alphabet, sometimes the options markets get it right, they were pricing a move up or down of 6%. stock up 6.25% after the earnings release. intel reporting its second quarter results. that is another big one to get too. jackie deangelis joins us with those numbers. what do we see, jackie? reporter: connell, intel soaring because we have a beat top and bottom line. revenue 16.5 billion, surpassing the 15.7 expectation. earnings per share $1.06. that was well above the 89-cent estimate. where intel tripped up last quarter was on the guidance. it gave weaker guidance, even though beat on top and bottom line. that was a problem. this quarter raising the full-year revenue outlook, up 500 million from april. so investors are looking at that
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in a positive light too. before the earnings came out we saw headlines regarding apple acquisition of intel's smartphone modem business. that is in fact happening. that will happen for a billion dollars. apple is getting a majority stake in it. after intel announced it would be exiting the 5g mobile chip business. the transaction is expected to close in the fourth quarter of 2019. i will note that intel paid $1.4 billion eight years ago. so unloading this asset. this is apple's second largest acquisition. so it also really makes a statement. final point, intel paid good dividend this quarter, 1.4 billion. it used 3 billion to buy back stock, guys. connell: jackie, thanks. adam, what about a quick point on big picture chip demand, semiconductor demand? we had some stories, so many discussions about the trade war with china would kill these companies, maybe less of an issue for intel than some of the other chip companies so reliant on business companies like
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huawei and other companies in china. now you have strong numbers coming out of u.s. semiconductor companies. what do you make of that? >> there is a lot here. intel is in a special situation. i interviewed the ceo of intel bob swan in colorado. they had a rough time doing manufacturing over the last five years. they were late on the most recent chips. they have those problems worked out. that is one reason their business is ticking up. they have their house in order. they have done a good job rolling expenses. this thing with apple, they shut down, announced they would shut down the business before selling it. they were getting cost structure in line. they were losing billions. a lot of good news in the numbers, for expectations. connell: fair enough. company specific issues your point adam, for intel? >> that and there not communications chips where they like to be. where people sell into huawei and other chinese companies. connell: do you worry more about
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companies that are reliant. >> absolutely. that is not settled by any means. connell: that is a good number intel. lenore you want to weigh in on this. >> i want to look at more details. intel beat, what we've seeing a lot, across the board with this earnings season. so many downward revisions. for example, in the past three months, their earnings estimates have been downwardly revised 26 times. none upward. their eps was down, estimates revised 15 times with only one up move. so, i mean the bar had been kind of lowered. i'm happy to see they beat. it wasn't a particularly high bar. connell: make a point on a different story. may not match what is on the screen right now, maybe we look at t-mobile for a second. there is another interesting story breaking after-hours. in the middle of all of this, if you were watching liz claman last hour you saw, there is t-mobile down 2%, you saw charlie gasparino, whether or
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not the t mobile sprint deal may finally happen. charlie thinks it would happen tomorrow. we hear it. mobile having a conference call about earnings tomorrow after-hours today it canceled the call. it reported results. the stock bouncing around. it beat analyst estimates for second quarter. new phone subscribers. that was, it added 700,000 plus phone subscribers. 710,000 in the quarter. compared with about 680 some odd thousand a year earlier. analysts are expecting right around 640,000. the point they did better than expected on that. they're adding, but whether this deal gets done, supposedly, adam, i don't know how close you are following this. they're talking to some state officials, the state ags to figure out if they get this thing finally approved and get it through? >> one of two things is happening. they're having regulatory
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problems at the last second they didn't expect to or a deal point suddenly become a problem which seems less likely to me but it it certainly possible. they honestly don't want to be on the record saying anything right now other than the black and white results. lauren: adam, many on the fcc and national security officials say they're okay with the deal if you set up dish network. they become the fourth wireless competitor, provider out there, but what we still don't have an answer. you know, where do we go with all of this in the competitive landscape? >> i mean the regulators are not necessarily going to behave on a quarterly schedule according to t-mobile's earnings announcement but again, charlie gasparino knows more about this than i will ever know. sounds like they're moving in the right direction but they haven't crossed the finish line. connell: that is ther to on t-mobile. the stock is down a little bit. i wanted to mention it. it was interesting they canceled
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the call. wanted to point out they did report earnings. lenore, if you want to put it all together, we had numbers in technology broadly speaking with one exception, we're actually pretty good here, the one surprise, amazon missing on eps. even if you dig in there they are pretty good. what is your 30,000-foot view where things stand in the industry techwise? >> the results have not been nearly as bad as some were fearing but keep in mind, like i said, those estimates have been clicking down bit by bit. one of the things i'm also going to want to look at with amazon, what has been going on with their volume because what we've been seeing out of cast freight, cast freight looks intermodal, basically trucks moving around in the country, they have been having month after month after month things are really dropping there. the things we buy moving them around has been really falling. that tells me the consumer is not feeling pretty fantastic.
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interesting to see that. lauren: let as bring in hitha back in on that point. if you look at their legacy, the customer, the prime subscriber, you feel the prime membership is tapped out. we found out they added this huge number of subscribers, prime members on prime day this is year. >> right. i don't think this is sort of an indication how the consumer is necessarily feeling. we also have to look at third party revenue with amazon which has been decreasing. it's a little bit after dichotomy when we look at amazon. yes, the prime subscribers have been increasing, we also have to think about this too, i said this before, the average prime subscriber has income of $150,000 a year. that is a pretty high-end consumer there. when you see the regular consumer on amazon, when the third party revenue start dropping you have to look at. connell: third party seller this
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revenue this past quarter for amazon was even $12 billion, a tick above expectations. that is a pretty good figure. adam, lenore, hitha, thank all three of you. good stuff. pledge to american workers. president trump wrapping up a event with workers and ceos, at the white house, working to expand training for skilled labor across the country. we're live at the white house to bring you the latest on that. lauren: falling short after bombshell, president trump and gop leaders declaring victory after bob mueller's testimony on russia probe. some democratic leaders are pushing for impeachment. why some say that could backfire coming up. connell: house vote happening this hour on critical debt ceiling, budget deal, to vie to divert a default of course. what is at risk if they can't get it done. we're live on capitol hill, bring you the latest. we'll be right back.
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connell: more breaking news, this time from washington with president trump's pledge to
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american workers meeting with ceos and workers at white house. manufacturers committed to training opportunities for more than 12 million american workers. blake burman there at the white house. blake. reporter: the white house held this event to celebrate the one-year anniversary for the pledge to american workers this is the campaign the white house has been pushing to get companies, organizations to provide opportunities for their employees in the name of retraining and education. the national association of manufacturers today, for example, pledging nearly 1.2 million opportunities. the white house says that brings the total to 12 million pledges over the next five years as a whole. here was president trump earlier today. >> companies stepped up to the plate and so many companies have done thousands and thousands of jobs and the training for these jobs. it is not like the old days where you go in, you do something much simpler. today with new technologies,
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computers, different things you have to know. this is not something you can easily step into. reporter: meantime the white house is throwing its support behind the prescription drug pricing reduction act which advanced out of the senate finance committee, a bipartisan piece of legislation led, at least led by chuck grassley, ron wyden a democrat. that calls for out-of-pocket maximum for medicare to be capped and the white house says, that they are going to work with the senate connell, to move this legislation forward. the white house is not saying at this point whether or not the president plans to have any executive orders attached to this, or along this issue at some point here in the near future. connell: fair enough, blake. jay timmons will be our guest later this hour. jay the national association of manufacturers president. he was at the event blake referenced at the white house to help workers in the industry. that is later in the hour. lauren: let's bring in ronna
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mcdanielle, republican national committee chairwoman. >> thanks for having me. lauren: we're talking about the manufacturing sector. a brand new "fox news poll," it shows 51% of the americans are feeling good about the condition of the economy that is the most since before 9/11 back in 2001. democrats are trying to counter that. the strategy seems to be, there is income ensee quality out there. what is your response, what is the 2020 campaign response to that? >> well, the economy humming under president trump, 6 million jobs have been created since he was elected. gdp is up. wages are up. we have more jobs than people to fill them. economic indicator, after economic indicator showing we have a strong economy. unemployment at record lows, for hispanic african-american communities. the democrats oppose everything the president has done. they opposed deregulation, they oppose the tax cuts. they're coming to the table, we're for student debt for life. "medicare for all." which means quality health care
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go away for everybody. that what they're for will burden american people, slow down the economy. they really don't have a message how they count geared things happening with president trump. lauren: the message might fall flat. they are trying to build it. elizabeth warren saying the manufacturing sector is declining. that recession is very near. that we need to change policies in order to change that outcome. tom steyer funding democrats in those key swing, manufacturing states. do you think this goes anywhere? >> well first of all manufacturing jobs have come back under president trump. what you saw today, he is looking at skilled trades, how we retrain the workforce so we can have more of these jobs open to americans. let's not forget. democrats are not putting usmca on the table. why won't they put usmca that will bring even more manufacturing jobs back to this country up for a vote? so the president's leading on this. democrats are full of empty rhetoric. the president has a record to
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run on. lauren: ronna, all they want to do is talk about investigating, impeaching, not legislating. that has come to bite them in the end. so you know, we have this meeting tomorrow between nancy pelosi and congresswoman ocasio-cortez. do you think that is a sign of there is no so-called civil war in the democratic party? or do you think it is something real there? because polls show if trump in 2020 goes up against one of these far left democrats he wins? >> people don't want a socialist nation. that is what the democrat party is proposing. they want a total government takeover of everything in our lives. they want to make the decisions for you who your doctor is, what medical procedures you can have, what school you can go to. that is not what america is about. the aoc and three they have become defacto speakers for the house. nancy pelosi is trying to rein that in. that is not where her party is anymore. president trump is saying we want the american dream.
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we want to limit taxes. we want to limit government. we want america as it is. it is doing pretty well for everybody. we've seen that with the numbers, let's keep it going. lauren: you might be right. joe biden said there is a need to impeach to get more information. so even moderates might be going further left where you say the democratic party is. so good to talk you. >> thanks for having me. connell: get back to breaking news on corporations we have for you this hour. amazon is down 2% in the trade after-hours. it missed on its bottom line. amazon spending a lot of money. making a lot of money to be fair, deirdre bolton. cutting into profit. good numbers for alphabet. let's talk more about amazon. >> two trouble spots you alluded to, part of the company's earnings miss is higher costs as you just said, connell. the company is spending more money on faster delivery prime members. we are. amazon paying more to get our
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packages in 24 hours. i want to highlight amazon web services. people talk a lot about the cloud. it still had 37% sales growth, absolutely nothing to sneeze at. but that was lower than consensus. in that particular division, they posted $3.8 billion in sales. wall street looking for 8.47 billion. the numbers are nitty-gritty. amazon is no longer alone in the space. microsoft, your product coming up, you can hear the football. that particular product had 64% sales growth. microsoft says last quarter. they're coming more and more into amazon's space. i want to highlight google. you guys covered share repurchase program. 25% of class-c shares. great for google. other thing interesting to note about google's stock, why up post-market, probably will rally, it is least loved of all the "fang" stocks. only up about 8% year-to-date,
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versus s&p 500, 20% year-to-date. you put facebook in there. up 55% year-to-date. google is very unloved this year. strong earnings, strong revenue. probably will have pretty solid day tomorrow. connell: really good point. it was worst performing of big tech stocks. other one to watch is intel. it would add 20 points to the dow as of now. lauren: i'm looking forward to the al get bet conference call. ceo sundar pichai is quiet. there might be a need to say something especially with the china story and investigations. the house is voting on a budget deal struck by congressional leaders and the white house. does it have votes to pass? we're on capitol hill with the latest reaction. connell: look at this. new video showing a third water bucket attack on uniformed nypd officers. this time happened in the bronx. the incident comes just days after two similar incidents reported in brooklyn and harlem. president trump calling on mayor
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open for at least 13 months, which is essentially what same-store sales means, in the third quarter that was above analyst estimates. not only did it do well in the united states on that front, but starbucks also did well in china on its same-store sales. the stock is up. amazon is down as we mentioned. spending a lot of money, cut into profit. web services issue as deirdre mentioned. alphabet, blowout figure, parent company of google, won't tomorrow, we don't think so, up by 8%. lauren: breaking news. the house is right now voting on a debt limit and spending caps package. hillary vaughn is on capitol hill for the very latest. what the is early read, hillary? reporter: voting is underway for a few minutes. they're deliberating or voting on white house budget deal that would raise spending caps or suspend the debt ceiling for the next two years. the president earlier today, trying to rally the house gop behind this bill, telling them
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today, quote, i'm totally with you, not everyone in the republican party is convinced that they want to vote in favor of this trillion dollar deal. they're also not convinced that is the best they can negotiate. house minority leader kevin mccarthy admitting earlier today that this deal has its flaws. >> i need half the conference to support this. look our conference our fundamental principle to make sure we have a fiscal house in order. we understand we live in a house that has to find compromise. this is not the bill that we would write. we're not in the majority. reporter: not just the house that is having their doubts there is bipartisan concern here on the senate side about this budget deal as well. >> i'm very concerned about the fiscal irresponsibility in this proposal. >> of course it is tempting. everybody likes to spend money. nobody around this place ever stands up says, i have a lousy
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idea and i need a billion dollars for it. >> i'm going to vote against it. reporter: a senate gop leadership source says there is enough consensus here, they think will pass through the senate and house. the president has sign what congress sends to his desk. lauren: hillary vaughn thank you. connell: joined by republican congressman rob woodall from the state of georgia. on the house finance committee. a number of republicans came out against this bill. you heard some of the language being used, irresponsible, reckless, if you like, i'm told after the interview you will head into the chamber to vote in favor, is that right and why? >> that is right. the question isn't who is excited about who is excited about this deal. the question is nobody is excited about the deal. the question is the next deal any better? the answer is no. the house has the president over
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a barrel when debt and budget issues. my freshman class extracted $2 trillion worth of concessions out of president obama. you're seeing nancy pelosi try the very same thing. connell: if this were to drag on, not to pass, the debt ceiling becomes an issue that hurts you politically, hurts the economy and markets? >> yes. i'm not worried about the politics. i'm worried about the policy. you're exactly right. i don't have a consensus in this country on budget cutting. i campaigned on cutting budgets. president trump didn't. nancy pelosi didn't. mitch mcconnell didn't. if this drags on, folks get nervous, spending goes up, by that same token, spending as it continues to go up, at some point everyone says the same thing, at some point it must be dealt with. how do you kind of square that circle from where you sit, look, all right, i will vote for this, i will not get a better deal. it is reality of how the house is constructed?
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i get that but how do you know when we're at the point where we must deal with it? what do you look at? >> remember we're only talking about the small portion of the budget that is discretionary spending today. that discretionary spending budget has not gone up one dollar in the 10 years i've been in congress. we've kept that spending completely flat. i can control this end of the spending. what i need to do is go after those mandatory spending programs that need so much reform. preserving medicare. connell: no one is doing that, congressman. >> nobody is doing that's correct in your party, nobody of either party. that is the question, when is that going to happen? what has to happen? some kind of a black swan event? market has to tell you, what happens for the market to tell you do that? >> i hope it doesn't take many of those crises. two years ago we reformed the medicaid program, for the first time. a trillion dollar in mandatory spending reductions through the medicaid program. we lost that vote ultimately in
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the senate when senator mccain decided to vote no. we passed that bill in the house. that is the largest reform of mandatory spending in my adult lifetime. i have men and women on both sides of the aisle, connell who would gladly trade away their seat to save this republic for their children and grandchildren. i just need leadership to want to work in that direction too. we're trying to encourage the president on that. i know democrats are trying to encourage nancy pelosi on that as well. connell: we'll keep talking about it, if nothing else try to add attention to it. i know you have to go vote. we'll let you do that congressman. thanks for coming on. >> thanks, connell. connell: okay. lauren: that was nice of you. connell: you know what, the job i guess. lauren: boying to pressure. puerto rico's embattled governor rossello resigning after a corruption scandal after more than two weeks of mass protests. we're live on the ground in san juan with the latest. the plus the death toll rising in costa rica. at least 20 people confirmed dead from drinking alcohol
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tainted with methanol. that according to the costa rican health ministry. more than 30,000 bottles of alcohol suspected of being tainted have been confiscated by government officials. we'll be right back. can't see what it is yet.re? what is that? that's a blazer? that's a chevy blazer? aww, this is dope. this thing is beautiful. i love the lights. oh man, it's got a mean face on it. it looks like a piece of candy.
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connell: breaking news we've been covering. we're looking at the share price of amazon falling nearly 3%. a rare miss on earnings there. alphabet, google's parent company, continues to have a huge after-hours session up by 8 1/2%. intel is up after-hours narrowing the second-quarter losses. benefiting from sales of barbie dolls and release of toyer to movie. mattel. four percent gain for that stock in after-hours trading. pretty good numbers from mattel. a lot of numbers. >> sequels are hot right now. speaking of hot. 108.6 degrees in paris. a new threat to notre dame. the heat wave going on across europe. the chief architect warning these extreme temps could cause the vaulted ceilings of the fire-ravaged cathedral to collapse a fire back in april,
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destroyed the roof of the building, toppled the spire. french president emmanuel macron promised notre dame will be rebuilt in five years. connell: that is crazy. in puerto rico, thousands celebrating on the streets today. governor ricardo rossello announcing he will finally step down. jeff paul with the latest from there. jeff? reporter: connell, after nearly two weeks of protesting outside the entrance to the governor's mansion, a lot of that anger shifting in celebration. a lot of singing and ricardo rossello keeps it dramatic up to the last moment where he released a video hours and hours after promising announcement. that minute the video was released on facebook, these streets got incredibly quiet. people huddled around whoever was streaming it. after several minutes they finally got the news many people wanted to hear. take a lessen. >> there is a lot of stuff to do. we got the first guy out.
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but there is a lot of corrupt people we want to get out of here. reporter: are you happy? what is your feeling right now? >> we're excited. i mean, most of all i'm relieved. it has been the toughest two weeks we've had. reporter: now the movement is historic partly it is first time in the modern era of puerto rico where a governor has resigned. it is also unique, because many of the people involved in this movement were youth, were the young people. the government here reportedly beginning, it was beginning to put in process the impeachment process but today after receiving the official letter of resignation, it looks like lawmakers here are not moving forward. here is how this could all play out. next in line, in order of the succession here in puerto rico, would normally be secretary of state. but that official already resigned days and days ago because of this issue. the next person in line is wanda vasquez who is the secretary of justice but a lot of protesters out here at some points been
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wanda rennuncia. what they were chanting about the governor. they believe she is extension what is wrong with puerto rico. we'll see what happens. the governor officially resigning august 2nd. if she becomes the official governor here in puerto rico, she is only the second in history of puerto rico. connell: thank you, jeff paul. lauren: investing in our nation's future the president trump joining workers and manufacturers. we'll speak to jay timmons the national association of manufacturing president about his contribution coming up. plus, beyond meat is stepping up the meatless craze, trend, fad, what do you call it? this time they're going after one of carnivores most beloved food. i know what it is. ♪ i'm really into this car,
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connell: breaking news from washington. moments ago, congressional leaders did pass this budget deal that we were talking about on the spending caps and the debt ceiling being raised. that has just passed in the house of representatives, on its way to the senate. lauren? lauren: we'll see if the president signs it. more breaking news. amazon reporting earnings after the bell, weighing in now on the impact of president trump's tariffs on the e-commerce giant. this was said during the media call just moments ago. quote, we do have some impact in tariffs in our capital purchase but we would say it's not material at this point. down 2.5%. >> these are the greatest companies anywhere in the world. we make the best jets and fighters and missiles and we make the best everything. we make the best product but we are the hottest economy in the world, we're the hottest place in the world and you're doing a fantastic job. connell: that was about an hour ago, the president, more than
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300 companies and organizations pledging training opportunities for more than 12 million workers at that white house event on american workers. that's ten times the number reported just this morning, as the u.s. faces a skilled labor shortage. more than half a million people, half a million unfilled manufacturing jobs in this country right now, according to president of the national association of manufacturers who just left the white house meeting and is kind enough to join us now from the north lawn of the white house. jay, good to have you on. >> good to be here. connell: tell us what came out of that meeting. what's the most important thing you guys can do with this pledge to get those jobs filled? >> so this is the one-year anniversary of the pledge for the american worker, and it's an initiative that has been led by ivanka trump and the president kicked it off about a year ago, so today, on behalf of manufacturers in america, i was very pleased to be able to commit to 1.186 million american workers being trained, retrained and upskilled in the economy
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over the next five years. we are really excited about that. as you point out, there with 500,000 open jobs today in manufacturing. we got to fill those if we are really going to be able to continue to compete and succeed in the world economy. connell: we talk all the time here about jobs going to china, obviously it's in the news all the time, but what's the bigger threat to companies in your industry? job going away for automation or jobs going overseas? >> so remind a few years and think about the threats that we faced here in america. we faced almost, well, we did face the highest corporate tax rate in the world. we faced regulatory morass that was stifling innovation in the united states. we created those inequities for american manufacturing and what you are seeing today is a very high level record of confidence for manufacturers in america. it's one of the reasons we have been able to create so many jobs here in this country, and it's why frankly, it's kind of the other side that we have those 500,000 open jobs. we want to fill those jobs and
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make sure the people that are already in manufacturing are upskilled to be able to future-proof their careers. connell: we will leave it there as we get close to the top of the hour. come back again soon. we will keep this discussion going. >> absolutely. connell: one day you're not at the white house. good to see you, jay timmons. lauren: on another note, can meatless bacon keep up with the demand of regular bacon? what do you think? connell: what? lauren: beyond meat plans to launch fake bacon and fake steak in addition to other meat alternatives. the company is targeting those who eat meat but don't like to eat too much of it. you like a juicy thick steak? connell: i don't know anything about this. i was reading a little bit about like the business side of it earlier because i don't have a personal interest which is fine and people do, it's their personal preference but there's a lot of room for growth. this is a huge industry now. if you think about the market for regular meat, that's fairly mature. lauren: another high today. connell: dunkin' getting involved with this beyond meat.
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crazy. lauren: it ipo'ed at $25. connell: watch alphabet and amazon tomorrow. those will be the big movers along with intel. thank you for joining us. "bulls & bears" starts right now. david: we got a tale of two tech giants here. look at shares of amazon and google's parent alphabet, moving in very different directions after hours. amazon down more than 2% with alphabet soaring. right now it's up over 8%. we will bring you the details of why the numbers are where they are and what you need to know ahead of tomorrow's open. that's coming up. but first, in a very busy hour of "bulls & bears" we have more breaking news. the house just passing a sweeping budget and debt limit deal, months in the making and backed by the president and leadership of both parties in the house and the senate. let's go straight to hillary vaughn on capitol hill with the details. hillary? reporter: david,ep

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