tv The Claman Countdown FOX Business August 2, 2019 3:00pm-4:00pm EDT
right, liz claman? liz: i'm not panicking. charles: you never do. liz: hey, but we've got energy here because, charles, you know we are waiting on the president. we have breaking news. the president is expected to depart the white house in possibly a couple of minutes. he is tackling trade at the white house just moments ago but not the kind, at least this time, that triggers fear in the market. it involves a deal for u.s. farmers to sell hormone-free beef to the european union. while cattle ranchers cheer, footwear makers have a big beef with the president after his new threat to slap tariffs on $300 billion of chinese-made shoes and cell phones and laptops and so much more, yes, including nike. the trade group that speaks for nike is falling head over heels at the moment in fury. wait until you see the letter the footwear distributors and retailers of america just sent to president trump. their ceo is here with a warning, not necessarily for the
president only, but for everyone who buys shoes. tariffs, job growth slowing and the fed under fire, piling on to an already jittery market. one of the world's most widely followed economists is here on whether powell, trump or maybe both are making a major economic mistake. wall street might appear to think so. you're looking at red on the screen. u.s. investors following yesterday's tariff tantrum in a worldwide selloff over night, by hitting the sell button. but for crude oil, the dow, the s&p and the nasdaq are all still struggling as we kick off the final hour of trade. plus, square has made a slip. bankrolling your portfolio with bank stocks. and charlie breaks it. less than an hour to the closing bell on this friday. we're here for you. let's start "the claman countdown." liz: we are getting this
breaking news. reuters is reporting that u.s. transportation secretary elaine chao is ready to give the green light to an expanded trans-atlantic joint venture between delta airlines, air france, klm and virgin atlantic. sources briefed on the matter say this deal will in is essence be granted antitrust immunity and will allow for more benefits to you, the passengers, such as a bigger route network, better flight schedules and for you mile hogs out there, reciprocal frequent flyer benefits. let's look at delta which owns 9% of air france klm, not doing much, down a quarter of a point. overall, it is a rough day for the market. speaking of which, on the surface it looks like day two of serious pain on the screen but the dow, s&p and nasdaq right now are all off the lows of the session. even so, stocks are still on pace for their worst week of 2019. specifically we should look at the s&p tech sector. it's heading for its ugliest day in two months.
the s&p is an etf, the spdr technology xlk down nearly 2%. it was bad enough yesterday but you can see from this two-day picture which we love to show you, especially when there are big moves in a stock in one direction or both, this gives you the best indication. of course, what's in it, apple. remember that time when apple's stock was up $9 yesterday and then lost it all and more? after president trump's afternoon tariff tweet? the iphone maker seeing no recovery at this hour. bank of america merrill lynch kind of states the obvious. its analysts are saying apple could see a hit to earnings if the latest round of tariffs go into effect. i know we just showed you apple but for those listening on xm sirius, down two full percentage points. flip it over to the in nanards iphones, they are getting sucked into the vortex. equipment makers are hurting right now. intel losing 1.75% and of course, apple down 2%, but some
of this may be a downdraft that's been created by net app, network appliances is the biggest drag on the nasdaq and s&p. it is plunging, folks, by 21% right now. after it had to lower its first quarter and full year 2020 profit and revenue forecasts, both sides here. the storage and data management company blaming a broad slowdown in tech hardware spending, that's business spending, right, and they blame that on a worsening global picture. we like to point out positive stocks, too. the bullish spot in the final hour of trade, look at pinterest shares. they are on track for their best day in their young life. they debuted the ipo back in april. right now, up 18% off the highs of the session, though, as monthly active users rose significantly above estimates. for those of you who aren't pinterest fanatics, it's this website that allows you to pin ideas and pictures for decorating, recipes, fashion,
landscaping, anything you want. they reported second quarter revenue rising 62% from a year earlier. they also boosted their 2019 revenue guidance. shares of pinterest have risen about 75% since the ipo back as we said in april. we need to get to the white house right now where we just heard the president is moving up his departure. he will be leaving to go to bedminster, new jersey for the weekend. we will watch to see if he stops to talk to our cameras. he is leaving just after signing this limited trade deal with the european union. now, this agreement establishes that the u.s. will import more hormone-free beef to the european union, phased in over a seven-year period, with the remaining amount left available for all other exporters of beef. meanwhile, china trade threats continue to sink stocks. look at the dow jones industrials, down 166. i will point out we were down 334 earlier today, but a loss at this point of triple digits is still very much in play. "the claman countdown" as we
look here is looking at a countdown to september 1st. it is officially on for this new round of promised tariffs by the president that will go into effect on $300 billion worth of chinese imports that up until now, had escaped the president's tariff pen. let's get to edward lawrence at the white house. edward, now china had some very strong words, i mean, they used the term blackmail. i was amazed at what their spokesperson was saying. reporter: trade front and center here at the white house. before we get to china, that agreement that the president signed with the european union, it basically opens the door for ranchers to have tariff-free access to the european market for hormone-free beef. the u.s. trade representative says this could mean immediately, $270 million a year to ranchers. >> the agreement we signed today will lower trade barriers in europe and expand access for american farmers and ranchers in year one duty-free american beef exports to the eu will increase
by 46%. over seven years they will increase by another 90%. reporter: the administration preparing to raise tariffs on china. the president saying that about everything else china imports into the united states will be under a 10% tariff starting september 1st. he minute e hinted that will be short time, then it could increase to 25% or go away, depending on what china does. now, china is not backing down. chinese sources saying that in a face-to-face meeting with the chinese and the u.s., the chinese refused to put back any concessions that had been removed from the trade deal. the chinese also refusing to change their laws to protect intellectual property. the sources say that the directive for department inside beijing is to start the decoupling of reliance on the united states and that means buying products from other sources or make them in china themselves. the white house says the u.s. must stand up to china right now.
>> this president has come in and called out what we know to be the case about what china's been doing, whether it's forced technology transfer or technology theft. this is what everyone across the globe understands and recognizes. but this is the first time a president has come in and said no more are you going to take advantage of the american people. reporter: as long as job numbers are coming in the way they did in july, the administration feels like they can take on china right now. 164,000 jobs in july, that's pretty good, 3.7%, the unemployment rate and wages rising. they believe that now is the time to do this. liz: edward, thank you very much. you have to take all of this into account here. will the markets get over this latest round of tariffs and the likelihood that this year or at least in the next coming months might be a positive moment, or will it be this moment in time that becomes an inflection point that could end the decade-long bull run? let's bring in our floor show
traders. you know, guys, we saw the markets crater wednesday after the rate cut. we look to be regaining all the losses yesterday after -- but that was before president trump announced the new tariffs. we're still down sharply from over two days ago, right. chris, start with you. where do you stand? do the markets recover here? please keep in mind the nasdaq year to date is up 20%. >> yeah. i would say the same thing. the s&p is up, you know, tremendously as well, 20%. we were up 30%. this last week, we were at record highs. last friday everything was great. lollypops and unicorns. it's not unusual to have corrections like this. i will say this again. it's the percentages that matter, not the point totals when w have these moves. i think that given where we are in time, we are heading into august, lot of people go on vacation, most of europe goes on vacation, we could be in for some continuation where we have
these relatively large moves, 100, 200 points. i think in general, most of the information has been baked in there. i think the market is going to think about what really is represented in these new tariffs over the weekend and we'll see where we are a month from now. i would be very very hesitant to say that's it, it's over, you know, we're 5% off the highs or 3% off the highs, time to get out. i would not be surprised to see more two and three and four cent moves on a daily basis. liz: you have chris calling for 2877 for the s&p and right now, we are above that at 2925. do you agree with him and would you buy if it hits 2877? >> well, i'm certainly not ready to call an end to the bull market but i do think that this round of the trade skirmish or trade tremors, whatever you want to call it, has a much different feel than some of the other
trade headline induced selloffs we've seen over the last year, where the market has a very resilient way of snapping back within two to three days. it just feels that given some of the reports we've heard from your reporter ed lawrence on the chinese wanting to decouple from the u.s. supply chain, that this is going to be -- this is going to take a re-think by a lot of manufacturers and a lot of -- and some key companies in the tech sector as to how they're going to position themselves going forward, maybe for the next two to three years. liz: phil, the chinese talk smack like the best of them, and this spokesperson, i wrote it down because i just was so amazed at specifically how tough she really was, and the spokesperson said we won't accept any maximum pressure, intimidation or blackmail. we won't give an inch on major
issues. in fact, we will take countermeasures. if they do that and it's scorched earth, they are going to lose a huge number of consumers who buy their stuff from here in the u.s. but what will it take to break them at this point? >> i think she needs her own twitter account, number one. that kind of stuff would go out to trump. number two, listen, she's reacting to the donald trump tough talk. they've got to look as tough as trump going into these talks and they know right now, they have to talk tough because trump has the upper hand right now. as far as the stock market right now, you know, maybe past performance isn't a guarantee of future results but let's face it, the stock market has bounced back from every one of these trade war tweets, situation, and the thing you got to keep in mind, wait a second, this hasn't even happened yet. right? this is just talk up until this point. you're right, keep an eye on
that date. it may not happen. there could be 15 other tweets before this actually happens. now, there was also reports, of course, that the trump administration was suggesting that china could change their ways and avoid these tariffs, maybe by a big purchase of u.s. soybeans or cattle. liz: that's a big maybe. >> yeah, well, but it's out there on the table and remember, we come to the cliff so many times. if you sold the stock market every time you thought trade wars, we're going into a global recession, you would have lost every time. liz: that is very true. 100%. we've got to run. at the moment, we see soybeans recovering, about a third of a percent higher. soybean farmers are unhappy. i have spoken to many of them. they want to sell back to those customers. they really do, in china. we shall see what happens. guys, thank you. have a good friday. we've got go pro suffering a case of major road rash. with the dow down about 200
points and the closing bell 47 minutes away, the action cam maker taking a tumble after its first revenue miss in six quarters. go pro having its worst day in nine months, down 13, call it 14% at the moment. it is now a $4.34 stock. look, month after quarter revenue miss, wedbush cutting its price target to $5.60 from $6. we are about $1.70 away from that. it did keep its neutral rating. to ski once again. shareholde shareholders, not so much. next up, a questionable rate cut shocking the markets this week but did the president and federal reserve chair jay powell make mistakes that could push the american economy closer to recession or pull it back from the precipice? one of the top economy watchers is here with his analysis in
president esther george has just released a statement explaining why she opposed the rate cut that powell announced on wednesday. the interest rate cut of a quarter of a percent. she is saying that the economy's moderation this year has been in line with her outlook, hasn't changed, but george does say there are certainly risks to the outlook takes economy faces cross-currents emanating from the trade policy uncertainty and weaker global activity. if incoming data points to a weakening economy, george says she would be prepared to adjust her policy but she kind of feels the economy here is still on track and that's why she dissented and said we really shouldn't cut rates. now, when federal reserve chair jerome powell cut those interest rates wednesday for the first time in more than a decade, he left investors a little confused about whether we were seeing the beginning of a new extended cycle of rate cuts, but guess who wasn't confused at all? the bettors rolling the dice at
the market casino called the feds funds futures pits. let's get you this breaking news as of one minute ago. we just saw the odds of a september rate cut climb even more. they had been at 98%. they are now, folks, at 100%. that in just the last couple of minutes. so the odds of a rate cut at the upcoming fed meeting in september, 100% chance. now, we had made an earlier graphic that said 98%. we are still looking, though, for a 55% chance for october, a 22% chance of another rate cut in december, and january, 7% in 2020 and climbing. traders are one thing but what do experts in reading said tea leaves really think? we have one. david rosenberg, chief economist. david, we cannot ignore what happened between powell's announcement wednesday and yesterday at 1:30 p.m. eastern when the president threw down this gauntlet again by threatening china with new tariffs, which could ding the u.s. economy. what is your prediction today on
how many rate cuts we will see? >> well, you know, my forecast didn't change since the fomc meeting and it didn't change with the latest threat of these extended tariffs. this is a bit of a game changer because it's going to hit a lot of consumer items that were previously exempt from the previous round of tariff increases. but in answer to your question, i think that the u.s. economy is going to be going into recession at some point in the next year, and so i think that we are going back down to zero in the funds rate and i think the fed is going to have to get even more aggressive than that with its balance sheet and other forms of non-conventional easing. you know, powell said that we're not one and done so he already told you they are going to cut rates more than once. and he also said well, there's no extended easing cycle because the fed doesn't see the recession that i see. it's a case where your subsets
drive your conclusions. don't be surprised if the funds rate is back at the floor in the next year. liz: we have eight cuts left, because we just got a quarter point. you are saying we will see eight rate cuts or maybe one 50 basis point cut somewhere thrown in there? really? >> yeah. i think that -- well, you know, the reality is this. over and beyond the fact that the trade war and when you see what's happening between japan right now and south korea, you know, this is becoming more of a global trade war and with the imf cut its forecast for worldwide growth a couple of weeks ago, the big part of that was that cross-border trade volumes are contracting. to me, that's just basically, you know, an added confirmation as to what's going to be happening with the economy. it's just a matter of lag from what's happened in the rest of the world coming back on to our
shores through exports in manufacturing and the knock-on effect in the rest of the economy. i was saying all along there's no such thing as a get out of jail free card after a fed tightening cycle. history shows after the fed raises rates, keep in mind that between the balance sheet tightening and between the nine rate hikes, the fed de facto tightened policy 400 basis points this cycle. we haven't seen the full impact of that yet. liz: let's say you're right and we go to zero, could all those rate cuts be enough to counteract the drag that the new added tariffs, if they are put into place september 1st, might create on the economy? will they work? >> well, i don't think so. i don't think they're going to have a complete offset. people say will it work. it will have some beneficial impact in this sense. let's say the fed drags its feet or doesn't do anything. you know the ecb is going to be
easing policy. you know that mark carney especially with a no-deal brexit, britain's going to be easing policy. the bank of japan has already moved to much more dovish stance. so if powell were to take rosengren and george's advice and not do anything, the u.s. dollar is going to spiral upwards. actually, that is going to be a crushing blow to our exporters in manufacturing and at the same time, it's going to constrict dollar liquidity globally and is a net negative for emerging markets. that's the problem with staying put as the rest of the world eases monetary policy. liz: david rosenberg says we are going to zero. we're coming right back. thank you, david. can i get some help. watch his head. ♪
look at the picture. beyond's stock is down nearly 25% over just the past five days, making this the plant-based protein maker's worst monday to friday stretch since its debut in may. needless to say, it has spiked since that may debut but we do have it right now up 1.25%. again, it's an ugly picture. a secondary stock offering, you know, initially that's what really upset all the stomachs out there in america who own the shares but on wall street, bank of america raised its price target today on shares to $182 from $170 on hopes that proceeds from that sale will go to good causes, including growing production and supply capabilities along with some marketing of beyond products. credit suisse hungry for more, upping its price target by $49 to $174 a share. the swiss bank one of the lead underwriters on the upcoming secondary offering, so yeah, they're going to say good things about it.
right now, beyond meat is at $178.25. it's actually trading up about 609% since its $25 ipo price. can you imagine that? first day exactly two months ago it began to trade. from one big momentum name's week of pain to another's very happy friday gain. rubbermaid parent showing strength into the close. let's get to deirdre who is tracking all the action from the floor of the new york stock exchange in today's fox business brief. deirdre: thanks, liz. the company behind sharpie, elmer's glue, yankee candle, at the top of the s&p 500 right now, second straight quarterly profits beat in a row. it will no longer divest its rubb rubbermade products by year's end. engineering and construction giant down this hour, shares at a multi-year low facing the biggest intraday percentage decrease ever. the company reporting a major
loss for the second quarter, withdrawing its full year forecast. you can see the stock down more than 26%. payment processor square getting declined, the company facing more competition from paypal and others. shares are currently down more than 14%. up next, one of retail's biggest lobbying groups lacing up its kicks to take on president trump's new tariffs. what's the man representing nike, skechers, crocks and other footwear giants is doing to keep your expenses from running off the charts. "countdown" coming right back. 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.
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high? retailers are in an absolute uproar over the president's decision to put new tariffs on china a month from now. the s&p 500 retailing index particularly shows best how these names are expected to get slapped. we have it down half a percent, but you can see right before he announced the september 1st threat, before president trump did, you can see they were kind of going along, right, then you have this big drop, no recovery at this final hour of trade. now, the footwear distributors and retailers of america estimate a 10% tariff will result in a $3 billion added on cost for you, the consumer. the footwear group has 250 companies and 400 brands on their roster including nike, crocs, fila, among others. what do you do? put out a statement and letter to the president. joining us now in a fox business exclusive is the guy who did just that, the ceo and president of the fdra. your letter to the
administration says we will not take this news lying down, but what can you really do if come september 1st, the president tacks on another 10% on $300 billion worth of chinese goods, including shoes? >> yeah, that's a great question, liz. one we have been grappling with for quite some time now. we had 12 ceos in town a month ago telling the federal government that duties on products, on footwear particularly drive up costs for um kw consumers. we pay $3 billion a year in duties before this takes effect. our hope is the american public understands as prices go up, these taxes are paid by american companies which ultimately impact the costs that our american consumers pay when they buy these shoes. liz: why do you think the president keeps saying it's the chinese who are paying the tariffs? >> we scratch our heads with that, liz. i understand they are trying to change american consumer behavior with a big tax increase so that takes away demand for chinese goods and that may be a different way to talk about it.
but the administration seems so intent on describing this as something the chinese pay and you can't find an economist anywhere outside of peter navarro that will tell you that's the case. so we're not quite sure why he keeps saying that. liz: i was talking the a very smart economist the other day and then i was talking to somebody here who's a big fan of the president and both were saying when peter navarro has the ear of the president, there are ways that he views tariffs and who ends up paying for them, and some of it's a little bit of a pretzel move but as you look at what's happening to the markets, the markets are a voting machine. that voting machine is saying it is a tax on the american consumer. all right. so what are you hearing from the nikes of the world, the asix, fila, people you listen to? >> what we are hearing is that companies are continuing to look for ways to mitigate this impact. so that might mean moving production out of china, which it seems the administration wants american companies to do.
we have been doing that for quite some time. but it's also going to mean higher prices. you track the consumer price index for footwear -- liz: let me interrupt you. we are looking at price increases that people will see if these 10% tariffs go through. canvas sneakers, iyou know, i'm thinking, about $49.99, they would go up to $58.69. look at running shoes, now 150 bucks. they might go up to 187 and change. >> right. yeah. this is undoubtedly going to be an issue. people will see it right away. we are heading into holiday. that's going to be a huge challenge. it's not just footwear. it is apparel. it is accessories. it is paper products and toothbrushes. you name it. every single product that you see in a store will be hit with this. consumers are going to be in shell-shock, i can guarantee you. liz: i can understand why you have the footwear guys really upset because you just have to go back to the early depression
years, where smoot hawley, those were the depression era tariffs put into place. you guys have already been paying significant tariffs on any imported goods for quite some time. what would this bring your tariff bill up to? what percentage? >> yeah. so the average import duty on a pair of shoes from china is 11%. this would ultimately double that average. then as you break it out, some shoes have a 67.5% duty rate, 47% duty rate, you are adding 10% on top of that, these are untenable amounts. what's so concerning, as you point out, next year's the 90th and veniversary of smoot hawley. these things don't go away easily because it's revenue to the u.s. government. liz: everybody run out and get your running shoes right now. and work boots. good to see you. keep us posted on any developments here. >> you got it. thanks, liz. liz: matt priest. with the closing bell ringing in 20 minutes, we do understand the president is taking questions
just as he leaves the white house to go to bedminster, new jersey. we are going to get that for you as soon as we start seeing headlines hit the tape. that is how this works. stay tuned through this commercial break. it will take a couple minutes. you will be on perfect timing here. we will be right back. the dow has cut nearly all of its losses. imagine traveling hassle-free with your golf clubs.
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so yes, the s&p down 17, well off its lows. same with the nasdaq. all right, we've got what is driving this rebound, three names. boeing, mcdonald's and travelers. they are accounting for 75 points of this comeback here. so they are the ones who are leading this rebound. not bad here. >> don't cite the "journal" here. they put out a press release. liz: i won't cite "wall street journal" here. breaking news. cbs and viacom have reached a working agreement on the combined companies' leadership team. viacom's ceo bob bakish is expected to lead the combined company -- okay, charlie wants to do a victory lap. go ahead. i will leave myself out of it. >> the preliminary announcement is today on the deal you have -- by the way, we reported this yesterday that it was coming down the pike. we had thought the official announcement would be next week when they both announce earnings. i think you will get that next week. but we got right now the
preliminary announcement that they have a deal to merge the companies, that bob bakish, the ceo of viacom, as first reported by fox business, that he was in the pole position. he is going to be the ceo. joe eianniello will be second i command. the question is does joe stay beyond the transitionary point. it is unclear from what we know right now. i don't think he will. but we'll see what happens. but this is pretty big news. the long-held goal to shari redstone who runs the controlling national amusements holding company, owns the controlling shares of both companies, wants these things together -- liz: she won. >> she finally won. how did she win? we have to point out the big thing, the big shoe to drop was les moonves, the former ceo of cbs who opposed this vigorously, remember, took her to court, delaware court. actually tried to take her to court so they could nullify her
controlling stake in cbs. big lift. he got pushed out of the company for unrelated reasons. a me too issue. once you took him out and essentially, she had friendly people at viacom, she started packing the board with her own people. it was about, you know, it was about -- it was when it was going to happen was a matter of time. we were first to report that it was back on track. i think this is in march. it's been a slow burn since then. since march, what we have reported essentially first, bob bakish, the likely ceo, joe ianniello's future unclear and this thing was coming down the pike in the summer. cnbc, i hasten to mention their name, they said it was likely to be announced on the 8th. i always gave it a month, sometime in this month. what we have here now is a preliminary release. i think we get the full details and the full merger announcement on the 8th. you may see a done deal by, from
what i understand, by the 8th when they release, both release earnings. just be prepared for that. the 8th may be the done deal. you just have the preliminary announcement now. we know what the management team is like. they are getting the market ready for this thing. it's a big deal. now, we have to point out that the combined market cap of cbs and viacom is something like $30 billion, right? not that big, okay? we should point out that, you know, what is apple's market cap? lo . liz: close to a trillion. >> one of the biggest media companies in the country, content companies, is worth $30 billion. the biggest sort of tech soon-to-be media company is worth a trillion. the question becomes cbs and viacom even together have enough scale to compete in this, are they in it for the long haul, do they sell themselves, do they try to buy discovery.
there's a lot of questions still going like how long are they going to be together. does shari redstone want to cash out. she's got a lot of kids and grandkids and they want part of the fortune. this is big deal. i know i'm getting the wrap but i want the mao make one point h. here's another story. t-mobile/sprint. the state ag is touting a gop ag joining the group, ken paxton from texas. really controversial guy. it's not in the state ag's lawsuit that he received campaign contributions from the big competitor of those two, at & t. also, he's under indictment. the other part of this story, this is interesting and it's going to be building in the days to come, people close to the state ag's office are predicting more gop ags joining the group, putting more pressure on this deal. now, be prepared. that's going to come, from what we understand, in the coming
days and weeks. more gop. right now it's just all democrats and now paxton. they are saying there could be more, likely to be more. that's going to put a lot of pressure. if this is a bipartisan coalition of ags, you got a problem. okay? liz: charlie, thank you very much. we do have some headlines coming out of president trump's moment before the cameras at the white house before he leaves for bedminster, new jersey on the weekend vacation. he is saying that china quote, has a lot to do to turn things around. he has the ability to increase tariffs. he can do that, he says, he says the u.s. has to have a better deal. what are you pointing at? oh, okay. stop interrupting me. >> it's going back down again. liz: we have gotten as close to the flat line as minus 13 points for the dow. look at us now, down 114. remember, low of the session, down 300 plus, 334.
so i'm looking here, he says china has to do a lot better. not even a deal with china. he has to do a lot better. and he feels that he can absolutely increase tariffs. so there goes any weekend positivity for those who were hoping, particularly our friend matt priest here from the footwear industry, who would hope this would not come to fruition. the president reiterating the threat that he can and will slap 10% tariffs on september 1st on $300 billion of fresh stuff out of china. all right. nasdaq down 114. when we come back, we will have just a few minutes left for the whole week of trade. things could change within the break. don't move. (vo) the hamsters, run hopelessly in their cage. content on their endless quest, to nowhere. but perhaps this year, a more exhilarating endeavor awaits.
we'll have the tape as the president getting on marine one. i am seeing this not just the chinese. he is waving the tariff wand at, he is saying he does not, it is about auto tariffs, the european union. auto tariffs against the eu are never off the table. he also says, if he doesn't get what he wants he will have no choice but to put on auto tariffs. now, names like bmw, mercedes, volkswagen. they're very concerned about this. and their stocks had a lot of trouble breaking out to the upside over past couple months as they wait for that we do have chinese yuan, the currency dropping rather precipitously at this hour. which might mean that the u.s. dollar is only gaining strength. that is not necessarily something that the president would like to see but as soon as we get those pieces. meantime closing bell ringing four minutes from now, the wild week for the markets a few minutes left. the traders are watching the
clock. with three minutes left the trade. deirdre bolton, which stocks are the biggest movers for the week? reporter: huge day here. we want to focus on the week, liz. we want to take you through dow losers, pfizer, nike, dow chemical, we talked a lot about nike, big exposure to china, huge percentage of revenue coming from there. those tariffs not helping nike. look at dow leaders for the week. some were limited overlosses. extremely defensive. merck, proctor & gamble, j&j. liz? liz: thank you very much, deirdre, in case you missed it, the cleave economist at luskin, widely followed, made somewhat after stunning statement how many rate cuts we should expect. he actually cut to the chase. here is what he said. >> i think we're going back down to zero on the funds rate. i think the fed will have to get more aggressive than that with its balance sheet and other forms of non-conventional
easings. liz: normally that would be terrible news for big financial names but market maven brian yacktman says, you know what? don't worry about that at the moment. now it is time to look at some of those bank names. go ahead, brian, which ones are you looking at? >> we're looking at three biggest deposit franchises, jpmorgan chase, bank of america and of course wells fargo. we think all three of them are being overly discounted in this environment. investors focus on the short run, that interest rate expectations are coming down, it will hurt their profitability and their net interest margins. but for a long term investor focused on global champions that have enduring pricing power, these banks have pricing power in the low cost deposits. we think right now is great buying opportunity to get into them. liz: you like bank of america, you like wells fargo and of
course jpmorgan. it is interesting people love higher rates with they're savers. we've seen the savings rate in america actually climb which is good news. what do you see on the horizon that maybe concerns but the markets or not? >> well i think that, a little bit, if i were concerned at all, the fact as rates continue to go down it is allowing a lot of these corporations to get debt perhaps shouldn't. there is a lot of manipulation. that seeds to sort of zombie companies that eventually you could be looking at, you know, a big collapse in corporate debt markets but what, when i bring up these three banks, they're better capitalized than what we've seen more liquidity. they're trading at about the cheapest valuations relative to the s&p 500 in about 40 years. liz: wow. >> what will underpen their profitability is the deposit growth. the deposit growth has been growing for five years. if you're a short term investor
we think great returns. [closing bell rings] liz: it's a friday. we hear the closing bells ring. dow jones industrials losing about 110 point, even though we got a decent julyumbers of 164,000 jobs gained. ashley: thank you very much. the trade threat we've been following all day. stocks down across the board. just a bit of a recovery in the final hours of trading. the dow closing down, well, 96 points, not triple points. well off session lows . i'm ashley webster in cor