tv The Claman Countdown FOX Business November 7, 2019 3:00pm-4:01pm EST
>> my pleasure. charles: we are up over 200 points on the dow, 10 points on the s&p, the nasdaq up 31 points. these are solid gains, perhaps we'll be up for five straight weeks on the s&p. ashley webster in for liz claman. it's really what we want, we want a stable market moving to the upside. i don't think it's too frothy and certainly not too exuberant. ashley: i'll do my best not to brow it in the last hour. [laughter] great tough. and, indeed, breaking news, markets at record highs but pulling back just slightly after reuters just reporting that the white house plan to roll back chinese tariffs is facing, apparently, fierce sperm op -- internal opposition. that taking some of the wind out of the sails with the dow, s&p 500 and nasdaq all still on track to close at all-time highs after setting new intraday records. it's almost a daily occurrence now. the dow poised, as i said, to lock in its third record of the week, seventh of the year as
third quarter earnings also coming in stronger than expected today again. now this, the streaming wars not taking place in a galaxy far, far away, but right here on everett. ahead of disney earnings after the bell, our panel will be here to tell us who has the advantage in this epic ballot. meantime, walgreens spreading its wings. we'll take you to v where the -- where the drugstore chain is spreading its wigs via drones. -- wigs via drones. plus, twitter's bad daycharlie breaks it on why t-mobile and sprint may have to go back to the drawing board. we are less than an hour to the closing bell. i'm ashley weber the in today for liz claman. let's start "the claman countdown." ♪ ♪ ashley: and we begin with breaking news. juul hasp stopped the sale of
mint juul pods and has stopped accepting orders. the company citing new data showing that mint e-cigarettes are popular among teens. altria, owning a 35% in that company, is down just slightly on that headline. meantime, qualcomm shares hitting an almost two-decade high in the session and on track now for a record close on the chipmerrick's latest earnings beat and raised outlook. also gave its first forecast for global 5g smartphone shipments coming in, they say, between 175 and 225 million next year. qualcomm up 6% on the day. chinese shoppers, apparently they love ralph lauren polos and tweeds as the high-end apparel retailer beating quarterly are profit estimates. ralph lauren opened stores in china and tied on with local e-commerce partners. look at that gained today, up 14.25%. taking a trip the other way are
trip adviser and expedia. lower than expected book, and higher marketing costs hurting expedia. that stock down 25 r 26% -- 25%. trip adviser down 21%. in the all ahead of rival booking.com which reports today after the bell. and party city investors, well, spooked. the shares plummeting 62% to a record low are. the party supplies retailer cutting its annual revenue and profit forecast, that's not good, for a second time as halloween sales also disappointed. that stock down 64% on the day. let's get back now to the trade war. markets popping out of the gate this morning on reports that the u.s. and china had agreed to a rollback of tariffs pending completion of phase one of a trade deal, but nothing is set in stone yet. and the idea, as we just said, reportedly facing fierce
opposition within the trump administration. trying to make sense of all this, blake berman, live at the white house with the details. blake? [laughter] >> reporter: trying to make sense of all of this. yeah, that's one way to put it, abely. there's a lot -- ashley. there's a lot of voices, you know, that have their say on this kind of thing. here's what we know. according to sources, this is all still being mapped out. of course, there is an acknowledgment today though that if there is a phase one trade deal, there is going to be a rollback, according to sources, in tariffs. this all got scattered with a spokesperson for -- started saying, quote: both sides agreed to remove the tariffs, if u.s. and china reach a phase one deal, both sides should roll back existing tariffs in the same proportion simultaneously. that was from beijing today. so far though no one within the trump administration, and that includes the u.s. trade representative's office which is
leading these negotiations has put forth an official comment. however, a source familiar with the negotiations here at home says that the comments made in china today are on the correct course. so the question becomes which tariffs are in play, and when might they be rolled back. according to chinese sources, china wants tariffs lifted as the deal is being negotiated and comes together with all of the tariffs being rolled back before the completion of a full trade deal. those chinese sources also say the u.s. wants some tariffs to stay in place even after a completed deal. now, this is seen as insuring china keeps up their end of the trade deal after implementation. now, if there is a phase one portion of a trade deal, the tariffs we are told for the december 15th batch that are set to go in place will likely not go into effect. it is still incredibly important to note in all of this, ashley, that president trump and president xi till do not -- still do not have a phase one
trade deal to sign. we have been told that they are working on the, quote-unquote, apec timeline. that, of course, being the apec negotiations which were supposed to take place next weekend. so you're talking about 7-10 days or so. that is still the timeline that is being worked on for the phase one portion of the deal. but as of this moment, there is still nothing for either president to sign. so if that happens, of course, the debate and the negotiations will continue as to exactly the best way forward. we should also note, ashley, that we are now being told that the u.s. has offered to co-host an apec summit with chile potentially in las vegas in january, though nothing is official on that front. interesting there that, if that were to happen, one would think maybe that that would bring president xi to the u.s. but that is a long ways off and a lot of headlines, ashley.
ashley: a lot of statements and a lot of headlines, blake berman. you're nimble on your feet to deal with them all. thank you so much. by the way, on the heels of the trade news, a handful of economic and trade-sensitive industrial names that hit all-time highs earlier on optimism, guess what, they've fallen into negative territory. we are held hostage by those headlines on the trade deal. let's get right to the floor show, traders at the new york stock exchange and the cme group. let's go to steven guilfoyle at the nyse, we call him sarge. sarge, how frustrating is it as someone who lives this day in, day out that every little headline, every little statement is parsed for every word, and it does have an impact on the markets? what does that do to your psyche? >> i kind of enjoy it, to be honest with you. [laughter] you know, it gives me a little bit of a chance to make money every day with the flow. and to tell you the truth, although the trade headlines are the engine or the match, the kindling, the fire, that's all cash, baby.
>> the fed is adding $60 billion a month to the economy, managers came in with elevated cash levels, average americans are saving 7-8% of their paychecks, and they're selling the long end of the utility curve which means even more cash. we are being forced to price in higher multiples. ashley: ira epstein at the cme, where does it go from here? i know that's the question we'd all like to know so we can make our bets, but where does the market go from here? the trade headlines aside, to sarge's point, it seems like the fundamentals are pretty strong, the economic data reasonably strong the, certainly we're slowing down but till pretty impressive. -- still pretty impressive. given some black swan event, i mean, maybe if a trade deal goes down the drain, that would hurt the markets, but is there any major problem in just seeing the
market continue to creep steadily higher? >> no, i think you're on the money there. in fact, i love that today wasn't one of these days where we jumped 2, 3% in the indices on the news. that gives it more staying power. it was just a year ago this week when the market went into a swan dive of near 20%. check your charts, the week of november 9th. now the fed has succeeded, they are putting people into the stock market because yields, frankly, of 2% aren't that attractive to people. so what are they doing? they're buying stocks x as sarge said e and i agree with him, you rotate in this market, use the pullback, keep buying it. and i think you're going to get that christmas surprise. i'm already predicting the santa claus rally. ashley: let's get to phil flynn at the cme also. the optimism is there. we're bringing up the yield on the 2-year now. the 10-year yield just taking off today, getting up to 1.96% which suggests that, obviously,
getting out of the safe assets and getting back into the market, but there's also still a lot of cash on the sidelines. i mean, is that cash going to be, you know, cajoled to getting back in now? >> i think it is. you know, we were talking about that last week. and i'll tell you what, you know, the last time we had this big a spike in the yield curve in one day was when president trump got elected. look what the stock market did after that. [laughter] if that's any indication what we might be in for, we could be in for a big rally, and why not? if we get this u.s./china trade deal right now, we've got earning coming in, we've got a solid economy, i think, you know, ira's absolutely right, get your santa claus hat on, we're going to see an incredible rally. and he did bring up last year. last year we had the worst december, everything was falling apart, the world was coming to an end. ashley: yes. >> you know? and then all of a sudden -- so i agree, sometimes markets have a way of reversing, you know, mistakes, and that might be a big rally this year as opposed -- make up for the bad
one last year. ashley: very quickly, sarming, if i can just get into my next question, last december the fed raises the rates and everyone's talking about a recession this year couldn't be further from the truth. >> no, no. we're not going into recession. we had some hiccups, for sure. but like we said, there's a lot of reasons to believe in this equity market at these levels. quite may not be truth -- price may not be truth, but it certainly is fact, and you have to live with it. this rally will end when the lounge end of the treasury curve pays enough to attract investment. not til then. ashley: gentlemen, thank you so much. steven guilfoyle, aye a rah epstein, phil flynn, thank you all for chipping in today. we appreciate it. let's check the big board for you, still on track for a record close. the dow up 203 points. that would give us a new closing record. meanwhile, take a look at the stock and steam world, performing a major flip. shares down premarket but surging intraday.
the naming of a new ceo apparently outweighing misses on earnings and revenue as the third quarter numbers took a dive but, apparently, that new ceo giving the stock a boost, sea e world 28.54. coming up next, twitter also trying to stage its own comeback as it fights a world of problems from the street to stunning charges of espionage. that and much more coming up next on "the claman countdown." ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ i am the twisting thundercloud.
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>> reporter: that's right. so the bird getting lots of bad news today, and let's start with that report downgrade, cut to underperform, and price target taken down to 25 from 42. shares were down 3%, they recovered a little bit, but meanwhile the u.s. attorney from san francisco charging two former employees with helping the saudi government spy on dissidents. here is what he wrote: >> r eporter: used to bribe these guys you're seeing on your screen, and that story will continue. jack dorsey and elizabeth warren exchanging words over the policy to ban political advertisements. jack dorsey says the new policy was flawed and would allow oil companies to defend their records on climate change.
dorsey countered that he would consider her comments. hillary clinton called bitter's new policy -- twitter's new policy the right thing to do for democracy, but bill gates said private companies should not be fact checking political ads. ash, back to you. ashley: gerri willis, thank you so much at the nyse. dow, goldman sachs, exxon, unitedhealth, groupon, guess what? they're leading the dow 30 at this hour. goldman sachs up. coming up next, fox business getting an inside look at how walgreens is winging its way into the future of deliveries by drone. how cool is that? it's straight ahead on "the claman countdown." ♪ ♪
assembly plant to a start-up for an undisclosed amount of money, planning to begin production of a new electric truck by the end of 2020. gm's stock up half a percent right now. okay. it's a bird, it's a plane, it's a drone delivery. walgreens partnering with google parent company alphabet for deliveries right to your doorstep, but it's only in one location right now. we're there, and joining us to show us it all is hillary vaughn. good afternoon, hillary. >> reporter: good afternoon, ashley. this is the only town in america that actually has this program. we're here in christiansburg, virginia, they're calling it the future of delivery because you can order over 100 items from walgreens app and have them delivered by drone within minutes. walgreens is partnering with wing, google's drone company but also with local businesses too like sugar magnolia, which means
this program does not just drop packages on demand, they're also driving demand to local communities and local businesses. a virginia tech study of this program estimates in five years a fully functional could -- program could bring some businesses sales increase by 27% every year. we talked with walgreens' chief innovation officer, and he told us they see this program as the beginning of a newest rah of convenience. -- new era of convenience. what's next for them for this program in prescription drug delivery. >> we are exploring with wing and regulatory bodies regarding prescription delivery at the moment. but that's still in process. >> reporter: fedex also uses wing for what they call last mile delivery. they drop packages off here, and then the drones do the work, delivering it door to door.
fedex tells us they see it as a huge asset to get packages to people especially in rural areas that are impacted by inclement weather in the winter. a drone can just soar right over. >> when it comes to rural deliveries, which are very costly, this could help us improve efficiency as well as costs in those particular area ares -- areas. >> reporter: both walgreens and fedex are hoping to roll this program out nationwide, ashley. while it's just here in kris cansburg, california are, now, it could be in your area soon. ashley: coolest story of the day. fascinating video, appreciate it. all right, let's get back the those markets as we certainly are losing a little bit of steam. the dow up 168 points, we were way over the 200 mark. as you can see, the dow losing a little but still on pace to hit another record close.
the nasdaq and the s&p also up but not online, i think the s&p is still on line for a record close if we hold that but not the nasdaq. all right, fossils taking a licking after the. watchmaker reported disappointing third quarter sales, also cutting its full-year sales forecast. also got cut by t-bank who said wearables like apple watch are certainly cutting into traditional categories. fossil, as you can see, down 21% on the day. coming up next, a live action version of lady and the tramp is it to headline the rollout of disney plus next week. when it comes to the streaming wars, will the mouse house be more like the lady or the tramp? we explore that ahead of disney's earnings with our panel of experts coming up next when the countdown with claman comets. ♪
♪ ♪ ashley: all right. you can start the clock. disney reporting fourth quarter earnings in 32 minutes or thereabouts. shares moving higher, stock up just over 1% at 132.72. investors and analysts are waiting on pins and needles, apparently, as the report comes just five days before disney releases its highly anticipated streaming platform, disney plus. just coming round the corner. you can bet that investors will also have one eye on the
competition as rivals such as netflix and apple also step up their streaming game. here to weigh in on who comes out on top, there are a lot of players and more added seems like every other day, cfra media and entertainment analyst along with web bush securities managing director mike parker live via skype. i love that. thank you, gentlemen, for being here. toomey, let me begin with you. let's start with the earnings. one of the areas disney -- its two main areas of revenue stream have been the media networks and parks. both categories have been waning a little bit. what do you expect in this latest report? >> you know, so we know that media networks, they're essentially in investment mode. they just absorbed, you know, hulu. they are ramping up a lot of spending, you know, on programming, etc. so it's kind of guided to a relative tempered outlook for that division. also they've got direct to
consumer and international which is in a loss-making situation, even more so than the media networks. the theme parks, more or less, there's really nothing fundamentally changed in that business. we know they're still, you know, pricing aggressively. they've got the star worse attraction -- "star wars" attraction, we'll be looking for more clarity on the impact of that, there'll be a few more "star wars" coming out in the next few months in both parks. is all in all, i think we should be looking ahead beyond these results to see, essentially, how the company's integrated fox and indicators in terms of turning around and integrating those assets is going to be pretty crucial with their launch to direct to consumer, which you mentioned. ashley: michael, what are the expectations on the streaming service, is and they're getting into a very crowded field, but can disney plus make up for the losses in the media networks in
particular? is this a game-changer for disney in. >> it's highly unlikely they're going to make any money on this for several years but, you know, it's not a zero sum game. so if you look at netflix with 60 million domestic subscribers, you have to figure 48 million of those, 80%, are above median income. and if you're above median income, what's an extra $7 a month? odds are, you know, disney's going to get to 48 million subscribers pretty quickly. i'd say certainly within five years and likely within two or three. i don't know what their break even point is because they don't really pay for the content. they're really just taking content that they have already created for theaters or for broadcast television, and they have an immense library. but to the extent that they spend money on originals, they probably will have losses until they get to some threshold, probably 20 million subscribers or higher. ashley: yeah. i saw an estimate of 2024 before
they break even. this is a very crowded field, disney plus debuting next tuesday as we said. apple tv plus just debuted on november 1st, and of course, they joined there's going to be peacock coming out in april of next year, hbo max in may of next year and, of course, netflix, hulu, amazon prime video. will some fall by the wayside or, you know, what's your prediction on the wars and who wins? >> you know, i think it's important to remember that the streaming wars, as much as people like to kind of frame it as one kind of mega-battle, you have to remember that this war is plague out on several -- playing out on several fronts. a to lot of these companies are playing in different areas of that war. for example, disney on demand as well as sports, entertainment, others are kind of aiming to be the streaming and device hardware, etc., other areas of content, you know, like
entertainment as well. so i would, to your question, say that, you know, there's going to be companies that necessarily win in some categories and maybe not do so well in other areas of the war. disney, i would bet, would be among the winners in those areas they are focused on right now, sports and also, you know, with hulu. i think what's very important also to remember is that companies that can articulate, you know, kind of a value proposition that's quite compelling, you know, now we see with the hulu bundle with espn and disney plus, it's quite compelling. i think the one thing that's not going to change is that the traditional bundle is in decline, companies are really looking to entice consumers with more attractive value. that's more affordable, and i would argue that the traditional bundle as we know it -- even though it's fraying at the edges, you're still going to have -- ashley: right. >> -- you know, that business
not go anywhere anytime soon. so there's going to be multiple winners and losers depending on categories, not so much in others. ashley: let me get to michael on netflix, because i remember when they first said, oh, we're going to spend $7, $8 billion on content next year. well, now they're closing in on the $15, $16 billion. they invented binge watching on this platform. how does netflix deal with all this extra competition coming into the space? >> i think that the competition for subscribers is far less of a problem because of multiple subscriptions than the competition for content. and, you know, keep in mind each of these services has exclusive content, and virtually all of their content is exclusive which means netflix is a net loser and everybody else is a net winner. the only way they're going to get netflix subscribers to subscribe to a second and third service is to have things that netflix doesn't which means disney is and fox are going to
pull their contempt, comcast is going to do the same, and hbo max. you know, warner brothers is going to do the sail. so at the end of the day, i think netflix is going to scramble to create even more original content. i think the price is going to go up. i think that $15 billion spend is going to be 17 and 19 or 21, and if they don't grow at the rate that they forecast, that free cash flow burn is not going to improve. ashley: michael, just to follow up on video gaming, the gaming industry is just take off. i mean, the numbers that are involved in this just always amazes me. how much competition is that? >> it's different. you know, i think that it's like listening to music as opposed to watching a movie in the theater. you do both, you just don't do them both at the same instant. so games is a fun pastime. we have 168 hours of the week when we spend 50 hours working and 50 hours sleeping, that leaves 68 hours --
[laughter] so plenty of time to play games. but think about the game companies the way you thought about the movie studios back in the '40s. over the next 80 years, they got six new windows to sell their stuff. they're going to get bigger and bigger and bigger as you're able to play games without a console. ashley: terrific stuff. we're already out of time. thank you both for joining us and, of course, disney's earnings coming out after the bell. thank you, gentlemen, both. we appreciate it. >> thank you. ashley: keep an eye on the big board. we have lost a little bit of steam but, nevertheless, the dow's still up 170 point, still on track for a record close as is the s&p. about. but the nasdaq now falling below record territory. we'll see if there's a last minute burst though. we'll keep an eye on that. coming up next, the shocking new report that could upend the autonomous driving race leaving way mow solidly in the lead. "the claman countdown" coming right back.
♪ ♪ ashley: a new report threatening to put uber even further behind in the drag race for self-driving supremacy. an expert review of uber's autonomous software finding the ride-hailing setup is still using proprietary technology stolen by one with of waymo's former engineers who had jumped ship. the shocking report likely to put uber on the hook for a, quote, costly, unquote, licensing deal with waymo for the continued use. those licensing fees would be on top of the $245 million uber already paid out to waymo last year to settle the theft claims. not doing anything to the stock either way. uber up 1% today and alphabet/google also up nearly 1.a 5% as we head towards the closing welk talking of which
from one street fight the another. one of the world's richest men firing back at rising democrat presidential contend or elizabeth warren. connell mcshane -- >> i got into your teleprompter there. ashley: you did. connell mcshane firing back -- connell: don't get me started. [laughter] so gates, comments from gates are kind of interesting because, first, as you say, he's a rich guy, and he's upit about this. but it seems to be more that if he thinks you're going down this road, you're going to change the incentive for others on who innovates, and it's going to have long last effects. we'll talk to brad blakeman about that and a lot more coming i after the bell. i hear a company called disney might report its earnings. ashley: great stuff. moneybagscom mcshane -- [laughter] less than 20 minutes before the close. the dow up at 27,653. we have lost some steam but still a nice gain of just over
half a prosecutor. a combined t-mobile and sprint company promising free 5g services to first responders for the next ten years if the merger dose through, but question is, will the telecom titans be able to keep their promise as new talks over the $26 billion tie-up loom? that's a lot of words. ly gasparino breaks it next on "the claman countdown." ♪ of course i have- ever since i started renting from national. because national lets me lose the wait at the counter... ...and choose any car in the aisle. and i don't wait when i return, thanks to drop & go. at national, i can lose the wait...and keep it off. looking good, patrick. i know. (vo) go national. go like a pro.
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here to give us details, charlie gasparino. >> you don't look like liz. your hair's not red -- [laughter] ashley: i apologize to liz claman. >> and you're not screaming at me. a. ashley: oh. we're not over yet. [laughter] >> you've got a british accent. ashley: i'm really from iowa. [laughter] >> a couple things today. it was billed as sort of a marketing announcement that john legere was going to put out. he did mack some marketing news, not much, around the edges about the merger. then he took questions, and i give him credit for that. he's being transparent. and he confirmed two stories that are, i think, pretty big for the stock if you're in the shares, and these are two stories that he confirmed that fox business hassed reported early in the week. the first one is he did confirm there could be a possible renegotiation on the price of the deal. the deal's a $26 billion deal, it's a stock deal, you get a
certain amount of t-mobile shares if you own -- ashley: x number of sprint -- >> yeah, and vice versa. apparently, sprint -- not apparently, but sprint is worth less than when the deal was announced. ashley: aha. >> there's a cost to merger, particularly on litigation. there's also, financially the company hasn't done as well. he did confirm, quote-unquote confirm by saying it's a possibility -- ashley: cheaper price. >> that they could get a cheaper price. this thing not totally negotiated through yet, and that might happen. now, he said the deal's going to happen anyway, so it looks like sprint would agree to some negotiation. he didn't confirm it, but our reporting earlier in the week is pretty accurate. so if you own the sprint side of it, of the deal, you know, just -- this is something to watch for because you may get less, fewer t-mobile shares, okay in your ratio is going to change or may change, at least according to legere. ashley: number two.
>> he also cop firmed a report about them -- confirmed about them offering additional concessions to state attorney generals being led by tisch james, the new york state attorney general, xavier becerra, attorney general of california. if you own the stock, this is important, because if there's more concessions that comes out of their bottom line, if they agree to give away more spectrum, if they agree to give away more freebies to people, i mean, you know, they -- one of the issues here i think from the state a.g. standpoint is how good is this deal for low income people, particularly who own prepaid services. ashley: right. >> look -- he didn't get into the details but, again, they're talking about that. they confirmed our report that they're thinking of going that way. and, again, it's big for the stock depending on what they do, okay? so just keep an ab eye on these two things. the deal isn't done, it's not closed. state the a.g.s, we should point out, are suing antitrust
issues even though they've set up another carrier as part of the doj. the doj's settlement decree created another carrier as it merges with t-mobile -- ashley: is it a good deal for, the snowball because, let's face it, sprint has been struggling. >> this is what i don't get from the lawsuit ares, looking like it was going out of business. it was one of those problem companies that softbank owned, okay? so they actually saved it, they actually got, you know, caused divest cure of spectrum so that they can create dish becoming that next, that next -- ashley: right. >> -- wireless carrier. excuse me. i don't get it. i don't get what's anticompetitive here. ashley: no. >> i'm willing to listen -- ashley: you're fairly confident this thing will eventually get done even if those concessions you talked about will have to be agreed to? >> i'm not confident able
anything. [laughter] -- about anything. inform i, you know, lived through the financial crisis. that's when i saw every bank go nearly under. they have a shot. this is a democratic judge. he's not a liberal, far-left judge, not an elizabeth warren type person. i think a clinton appointee. so, you know, maybe mildly pro business, so who knows. ashley: we'll see, as they say. interesting stuff >> keep an eye, there's stuff here that can move, keep an eye on the stock. ashley: charlie gas gasparino, t stuff. the closing bell ringing in under ten minutes now. with the markets set for new record highs, should you be playing offense or defense when it comes to your portfolio or both? our countdown closing reveals his playbook when "the claman countdown." returns. ♪ - hello, i'm brad castillo.
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another record day for the markets, well, certainly for the dow and hopefully for the s&p. nasdaq struggling just a little bit. the s&p 500 is, by the way, on pace for its second record close of the week, but nasdaq, as i just said, slipping from record high levels. needs to be up by more than 24 points. it could do it, we'll see. all three hitting record intraday highs earlier in the session thanks to optimism again on the u.s./china trade deal. let's get back to gerri willis on the floor of the stock exchange. what are you hearing from traders -- [inaudible] >> reporter: we're taking a look at the nasdaq. there's been a pullback in that index and why? well, we had the headline earlier today that the white house planned to roll back china tariffs, facing fierce opposition inside the white house. no decision's been made yet, but all three indexes pulled back on that. even so, the dow and the s&p poised to hit a new all-time high. not the nasdaq. one stock, you've got to hear this, ash, expedia shares are down 28%. gross bookings in their earnings
report down dramatically, earnings down dramatically in that report. that's what's going on. back to you. ashley: very good stuff. gerri willis, thank you. expedia's not having a good day, to a say the least. now, some say the key to win anything sports is a strong ons. others say it's a strong defense or maybe the best defense is a strong offense. but today's countdown closer says you can create a winning portfolio with both. he is the co-author of the millennial money fix, a number accept on investment media's top 100 list of 2019. congratulations. we welcome the question of bona fide wealth, douglas bonaparte. congrats an owl of that, by the way. -- on all of that. offense versus defend n. a market where we're so beholden to headlines on u.s./china, explain how you can play both sides. >> yeah. so let's take a look at both sides. in the here and now, markets ripping, right? hitting intraday highs, all-time
highs, 52-week highs breaking out pretty much all over the place. we have small cap value, developed international emerging markets looking like they're on a run. ashley: right. >> that looks good. compare that against the backdrop to have economy, we hit 2%, striving for 2%, we hit 1.9. i'm not here to the pawb the .1% -- [laughter] i'm not jumping out of my seat for 2% gdp -- ashley: better that so, if i can give really general advice on just those two things -- ashley: look at sports theme. you can look at this, on offense technology. twitter and microsoft you like those two. defense, consumer non-discretionary and starbuck's, mcdonald's. start with offense. twitter is not positive. >> earnings really good. 25% drawdown. jack comes out pretty much says hey we'll ban political ads. that doesn't sound good for short term revenue. it is social media platform of
choice. i like metrics. if you believe in it long term you can scoop it up as a discount. ashley: president uses it every day. that is the best advertising ever. >> makes it very popular. ashley: microsoft is safe play. tremendous stock. terrific ceo. onwards and upwards. >> hyperbolic on a lot of cash. products look real good. i lock the office suite. i look them going after slack with office teams. even if tech gets whacked. you buy and hold for a long term. you find yourself doing all right. ashley: mcdonald's with terrible headlines. ceo, mr. easterbrook let go essentially. he had done very good things for mcdonald's. really doubled value. brought in all day breakfast. how much of a blow is that and why do you like the stock anyway? >> leadership is departing. it can get back above summer
highs. that leadership hopefully will carry through into the next few years we have here. i like the fact that people are still going to get sausage mcmuffins and french fries. ashley: you love margins. >> margins on franchises is pretty ridiculous. i think they keep going. then my favorite thing. ashley: starbucks, maybe not starbucks coffee. why starbucks in particular? >> so, two reasons. one they're everywhere. two i think they're doing a great job expanding in china. you have luck coffee in china. they have to do that. they have to now compete over there it is the cold beverage space i like. nitro cold brew. the margins are astronomical. you see a younger demographic gravitating. ashley: that is interesting. millenials love starbucks, every time, i don't get coffee at starbucks, people complain it is bitter, burned, whatever but a lot of the younger folks walking
around with giant chunks of ice with a little bit of coffee in it. that is what it seems like. that is the demographic? >> i don't think they will stop drinking their morning cup of coffee if things slow down or we have a pullback. ashley: it is expensive. you can go to mcdonald's get 50-cent coffee. >> that is not one they will pull back on. ashley: any areas you're avoiding? >> energy out of habit. i think it can be disrupted easily. i have always been burned in energy. i will not touch it as personal previous presence. ashley: what about financials? interest rates are low. do you like the banks? >> i'm indifferent to the banks. quite honest, this area has a lot to think about where we are on monetary policy. ashley: as we go to the bell do we continue to go up from here? >> i think we rip higher but look around corner. ashley: thank you, douglas.
s&p 500 set to close at a record high. that will do it for the "claman countdown." they're clapping away on wall street. we go "after the bell." connell mcshane, melissa francis. [closing bell rings] connell: this is a record close. new records on wall street. all three major averages ending the day in the green on word u.s. and china might remove tariffs if they're able to complete phase one of the trade deal. up on the day by 185 point. melissa: are those fireworks? i think they were. connell: i had those planned. melissa: nice. connell: glad it worked out for the day. this is the third record close for the week for the dow. it closed 100 point off the highs. still another record, the seventh of the year. good to be back with you in new york. i'm connell mcshane. melissa: i'm melissa francis. this is "after the bell." s&p 500 closing at new record high. the 18th record of the year. nasdaq fighting for a record there. we'll see how thatur