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tv   Closing Bell  CNBC  June 21, 2016 3:00pm-5:01pm EDT

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remain vote. >> i'm going to go out on a limb and make a prediction. >> do it. >> england is going to be here in 500 years no matter what happens. >> no matter what happens tonight, it will be. >> maybe not 500. >> i have a feeling "closing bell" will also mention the brexit. >> it starts right now, so we'll find out. hi, evening, and welcome to the "closing bell." i'm kelly evans at the new york stoxx exchange. >> i'm bill griffeth. did somebody say brexit? >> oh, boy. >> stocks are seemingly in a holding pattern as we await the findings in the uk. there are other big stories. >> how about apple. the new report says apple will only have subtle changes this year. that means there won't be a long line this year. it could have an impact on the already struggling sales.
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hillary clinton went after donald trump today, this as we get surprising details about trump's campaign finances we have all that coming up for you. and also a read on the economy. we'll tell you what to expect from fedex, adobe, and k.b. holmes coming up. >> a good cross-section of industries there. >> very good. >> to see what's going on. let's begin with janet yellen's testimony on capitol hill this morning on the economy. you saw it live on cnbc this morning. steve liesman has the key takeaways. >> guess who talked about brexit. she didn't say the word but she talked about it. she emphasized the uncertainty over the brexit this thursday, the recent slowdown in job growth, and global economic weakness. >> a uk vote to exit the european union could have significant economic repercussions. for all of these reasons, the commission is closely monitoring global economic and financial
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developments and their implications for domestic economic activity with markets and inflation. >> ubs said overall the testimony is, quote a reminder that she's gotten cold feet about the pace and policy formation. they still see two hike this year. they think the economy will overcome these challenges suggesting the job market could pick up momentum from here. there was a suggestion that one takeaway from yellen's testimony that it's the chair who's looking to raise once this year unless there's a market turnaround in the economy. >> steve, that's what people were looking for. is there any way she'll try to get the odds back up to 50-50 for a rate hike? >> i don't hear it, kelly. you're absolutely right to ask that as a question. that's the first thing you ask as a reporter. that's why all the stuff about
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we could raise in june a month ago? that's why it was so important. we're not hearing that from her. the policy on hold and then give us a call then. and that may be after the summer. >> there were questions last week after the fed meeting about the fed's credibility, whether it had been damaged. do you think she did anything to restore that? do you think she felt the need to address that? >> i don't think she did that, bill. the idea is that one jobs report or this slowdown could really change what is essentially a long-term policy tool is. there a way too step back. they didn't get into this idea of rules-based -- which is something they supported before, but the case intensitier for it now. the idea that the fed has changed so dramatically, it came up once but really wasn't followed up on unfortunately. >> we'll hear more from her tomorrow. >> i have to point that out. tomorrow could be a little more fireworks, maybe the house a
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little more political, a little more strong in their feelings about fed policy could make it a different kind of day. >> we'll see. and thank you, steve, for now. our steve liesman. now to the other big overhang. wilfred frost is live for us in london. what's the latest? you can't move without hearing the word "brexit." it's that times ten for me here in london. i've got the "london evening standard" hot off the press. it says at the top, "goes head to head aztecs reject brexit." interesting, though, of course, the picture focused david beckham. there's a sense that all the politicians have said what they have said and now they're making up their own minds. i was out and about today trying
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to talk to some voters, one particularly special group asking them if they're going to vote and what their main issues are that's making them decide which way to go. one is that the group had voted. i asked her which way she's voted. >> out, i'm afraid. >> and the main reason? >> don't be afraid. >> i'm not afraid, but i'm still almost undecided in having to make a decision and get it posted off. i had to decide one way or the other. i could have voted either way. >> i really have been so sickened by the grotesque bullying and brow beating of the remain campaign. >> do you know? >> i'm undecided, but -- >> i know you think i'm boarish, but i'm thinking they're both out.
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>> i mentioned earlier that some of the politicians may be not getting all the focus now. i want to get back to the polls. david cameron was speaking earlier today in front of 10 downing street. that's when the pound fell significantly. not because of what he was saying but a poll came out and said what we have been suggesting the last few days, a little bit of a brexit. the markets are focused on each poll and i'm sure they will be over the next 24 hours. it's so much what the politicians are saying. it's what the people are expecting the voters to do, particularly undecided. we're just over a day away and they're hardening up their views as we
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>> i think it's going to be very close, and it's anyone's guess at this stage. the markets will keep moving whenever we get a poll. >> thank you, will fred. that means it could stretch on through the wee hours of the neat and even for us. there are plenty getting results in around 2:00 a.m. a significant portion around 3:00 a.m. and then 4:00 a.m. london time. >> we'll be around for a while. i bet those ladies loved will, don't you think? he's such a nice boy. >> oh, my gosh. that was awesome.
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>> look at that. they just love him. they'll answer any question he has. joining our "closing bell" exchange, we have stephen guilfoyle -- ladies love him too -- and rick santilli from chicago. we have jane it yelling speaking today and tomorrow and the market is taking everything in stride. are we just in holidaying pattern until the brexit votes are out, do you think? >> a lot of guys are. i know it's been light lately, but today it's just incredibly light, but both things are having an impact on us. janet yellen sounding disappointed in her delivery. she almost sounded like she was frustrated with the market. then we saw the bet fair -- not poll but gambling site. they have a 74% chance of a
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remain vote. that gave us a little pop. we got up to 2092, 93 where we met resistance and we're in between those two levels right now trying to get one way or the other. i do feel we're possibly pricing in a new event either way. you have a catastrophic selloff if people receive an expect vote and get real nervous about that, but being we're this high, we're kind of pricing it in and we may get a knee jerk. >> and we have george soros out there talking. i have to imagine the people will fred was speaking with, those kinds of dire warnings probably only make them feel more anti-establishment. >> i like the lady that said brow beating isn't something they're ee nna they're ee nnmored with with th.
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and then george sore soes, where do i begin with him. as an american, i think we should keep our mouth shut about what they should do, but i'll tell you history is pretty clear how it's progressed. what? 41 years ago it was about a common market. i remember the beginning chapters when i came in. that was about seven years in the making. but the common market was huge. it was a great thing. those days are gone. this is about politics, pure and simple. i'm not the first person to say it. it's about brussels and power consolidation, and i think the people get it. i think what they don't understand is the unknown to leash. i guess the markets are really just a betting site extension these days. you know, whether it's about janet yellen, whether it's about brexit. the fundamental underpinnings, they're not talked about much anymore.
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algorithms don't program about that. we're long on the tooth in the cycle. i wish it was more based on the fortune 500 company, good earnings, good r & d, but it isn't. this is the market we're dealing with. >> chris, i guess you've positioned yourself with the european equities based on what you think the markets will do after that vote. how do you think it will respond and what are you doing with european assets right now? >> yeah, it is all about politics right now. the lead camp has not made a convincing cost benefit analysis that really supports a brexit decision. so we really need to separate propaganda on one side and valuations on the other side, and from an investments standpoint of view, look, european markets are very cheap. they're trading in an all-time high u.s. market. europe's on 14. not only that, but europe is
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trading on earnings which have been grinding down for four to five years right now. so the combination of cheap valuation, trump earnings, making european stocks look very attraction tirch right now. with regard to brexit, you get paid to invest now and if you take a three-to-five now, you can sell that kind of money. >> sarge, do you think that to chris's point once the coast is a little more clear people will look at the relative cheapness over there? >> i think once you get past the reaction, you'll see the relative cheapness. i think come friday for the short-term trader, you're going to see a reaction to the currency markets without a doubt, the debt markets and equity markets. this could be something rather significant on a short term. let's not forget. this is a nonbinding vote. they have to do so much negotiation if they vote to get out, which they might not do.
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but if they vote to get out, it goes to the parliament, which will then consider the view of the people. they might not go ahead with it, but if they go ahead with it, they'll have two years of this and that at another thing the market has to worry about. this could go on forever. >> oh, yes. thank you for those encouraging words, sarge. thanks, guys. thanks for stopping by. >> thank you all. >> any time. >> by the way, spanish elections sunday. look at who is elected in italy. i was over there years ago, it was kind of the yub start almost comical party. he's a comic, and now they're gong to be mayor of rome, mayor of turin. this goes far beyond just what's happening in the uk. >> oh, yeah. >> anyway, the markets are taking it in stride. the dow's up 37 points. the s&p is adding another 6 and the nasdaq, interesting will i a big laggard is only up 4. >> an intriguing question, is apple's iphone 7 destined to be
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a dud even before it hits store shelf this fall? we have a special report on the new features that could be tabld for the iphone's tenth anniversary next year. fedex, k.b. home, and adobe are reporting. we'll tell you what analysts are expected. plus adobe's ceo talks with us exclusively. you don't want to miss his comments. you're watching cnbc, first in business worldwide. sir! it's the president!
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second quarter passenger revenue to fall compared to a year ago. that's actually a smaller decline than previously estimated, hence the gain of 3.5% today. and carmax is lower on disappointing first quarter earnings. profits have fallen for three consecutive quarters as they face rising expenses, pricing extensions and stiff competition. a lot of used cars out there. carmax reporting a 7% decline in finance income due to an increase in loan loss provisions. >> the new i phone 7 could have fewer changes than consumers might have expected. josh lipton has more for us. josh? >> kelly, if you're waiting for big changes to the iphone, you could be disappointed. that's according to "the wall street journal." the model unveiled the fall was only going to boost subtle
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changes. specifically the new phones will still have the same display sizes, 4.7 and 5.5 inches and the phones will not have a headphone plug making them thinner and more wa water-resistant. we're not sure if that's temporary or a permanent departure. this comes at a delicate time for apple. we know the stock is in the red this year and over the past 12 months giving worries about the health and future of the iphone franchise. remember in q2 i phone units did slip year over year for the first time. a full 15% drop. what should investors make up this news? i caught up to piper's gene munster who city things apple can sell a lot of iphones even if changes are not exciting. that's because there are a lot of people on older models,
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2 x 50 million, who could still be waiting to upgrade. munster said a lot may be saved for 2017 which will be iphone's 10th anniversary. back to you. >> the big news to me is getting rid of the head phone jack. did a profungtry -- >> it's going to be in the lightning jack. >> but what that means for existing head phones isn't clear. i wonder if there's any talk about converters. otherwise i turned up hits on wireless earbuds. how many people are going to want this phone if they're going to have to change their whole ear budd approach. >> certainly we stress that apple is always tight-lippeden about what it's in its product
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pipeline. regarding the headphone jack as bill just alluded to, the speculation would be that the lightning connector serves as kind of a dual phone as power charm and head phone connector but overall, the assumption here is you won't get a radical change. it would be thinner, water-resistant. if that's true, it would take away one advantage that samsung has. but we wait and we see. >> yes, we do. josh, thanks. josh lipton. i know apple fans out there are going to roll their eyes at us asking these questions and being skeptical but an ironclad rule of retailing and just being a successful merchant is if you want people to buy a new product, you make it compelling. >> that being said, you still use a blackberry. >> that's okay. but that's a whole different
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story. even people who need to upgrade this time around, i can see them waiting another year if they know they're getting a whiz bang phone for the 10th anniversary. >> if they know that. otherwise the 10th anniversary. >> i don't know. awfully smart people running apple these days. we all await that vote we all know about on thursday. >> and facebook's instagram is out with new data showing user growth doubling over the past two years but how long did that -- >> thai did you notice how they snuck the music in. move ahead, kids. also donald trump says the economic policies would throw us seatback into an economic recession. whether clinton's speech swayed them or not. $728 a month.
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welcome back. 35 minutes left in the trading session with the dow up 53 points. biotech stocks are lower today. that's been a drag on the nasdaq. you can see the biotech index, the ibb, is down 1.5%. bioamgen and especially celgene down more than 2% right now. hillary clinton attacking donald trump's policies as his fund-raising policies are called into question. john harwood has a recap. john?
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>> kelly, just as donald trump tried to find that hillary clinton was dangerous, she tried to do the same on the economy. she'd note thad he'd taken several companies into bankruptcy and unlike his priefr companies, she said you simply cannot threat on the cut a deal on u.s. debt as donald's done. here's hillary clinton. >> it matters when a presidential candidate talks like this because the world hangs on every word our president says. the markets rise and fall on those statements. even suggesting that the united states would default would cause a global panic. >> hillary clinton went on to ridicule donald trump's claim that he would make america great, noting that several of his companies make their products overseas. she also said he wouldn't benefit average people because his tax plan is steered to the
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rich. >> he'd give billionaires a tax cut. corporations would get $2 more billion. that means he's giving away to the 220,000 richest families than he would to help 220 million hard-working americans. >> now, donald trump plans to hit back with a tough speech on hillary clinton's ethics and scandals tomorrow, but donald trump also has a financial squeeze to worry about. look at these numbers. hillary clinton, her campaign has $42 million in cash on hand. donald trump only $1.3 million. he sent out a fund-raising campaign in which he promised to match anything dollar for dollar. we'll see if it works for him than his fund-raising campaign has so far. >> joining us right now is jimmy williams.
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he hosts decode d.c. thanks for joining us today, jimmy. >> thanks for seeing me, guys. >> president obama made it clear throughout his time in office that you've got to do something to help the middle class. do you think that's what hillary clinton is going after? i mean she was really going after donald trump today burke when you talk about the economy, what is it that she can do or donald trump can do to try to help that middle class? >> well, no one can do anything about the middle class unless corporate america starting people their wages. wages are stagnant for all intents and purposes. that's not a good thing. unemployment is low, but people are still looking for job, so corporate america has to step up. tax plans are tax plans and it's the job of the people behind me to raise taxes or lower taxes. both of the democrats and republicans have tax proposals
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out there. mr. trump's would add and this is not me saying this 9$9.5 trillion to the next ten years thachlt is not helpful to our economic growth. senator clinton has a different plan. lots of economists have looked at what she has to say. in the long term they're unsure. if you don't believe me in any of this, look at what moody's had to say. mark zandi. he worked for john mccain in the 2008 campaign. he completely band donald trump's economic proposal. >> it's reminding me of the campaign in britain. about the economic damage and what one or the other would do. it is interesting how much of hillary clinton's speech today was simply about donald trump. is that what we can expect for the rest of her campaign? >> sure, and vice versa. it's a battle of personalities, not so much policy.
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that's the saddest part about this entire election cycle, is we're not really focusing on what they're saying as opposed to what they're saying about each other. that's the same thing that trup will s -- trump is saying, crooked hillary. she's doing the same thing nchl the end, they'll determine who sits in the white house next year. something tells me we know what the clintons have offered but we don't know what the trumps will. my gut is we'll probably go with the clintons. >> we're not here to argue policy per se, she's talking about on the one hand wanting to -- i mean donald trump wants to cut corporate taxes. she doesn't want to do that. on the other hand they're also talking -- let me finish my thought here. on the other hand they both want to renegotiate trade agreements. but how do you make it
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attraction tip to help a company in the united states if you're going to keep the taxes so high it makes more sense to move them? >> what trump has proposed is taking the corporate rate down 15%. so basically that's unheard of. barack obama sent a bill to the congress three or four years ago taking the corporate rate down and they never did anything on it. i get that we're losing the corporate tax break, but you have to look at the loopholes. they would be paying a much, much lower wage not to mention what they would do with s-corps, and that would devastate them. that's the first part. the second part is the trade agreements. everyone knew what was going to happen. i worked on the china bill, the africa bill, all those bills. and every single time we tried to put in work, the republicans voted against those. now the republicans have figured out that sometimes trade doesn't
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help american workers. what you're never going to be able do is bring back manufacturing jobs like we had in the '50s through the '80s. we're not coming back. but what you do have to do is incentivize corporate america and bring them back to high tech, et cetera, et cetera. >> low taxes can do that, but we're not going to press that. >> 50%. >> jimmy williams there, responding to the speech of hillary clinton today. >> time for a cnbc news update with courtney reagan. >> hi, bill. here's what's happening at this hour. the last nuclear power plant will close in california. it provides 9%. they have long pressed them to close diablo because of its proximity to seismic faults. a mall has been closed down
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in brussels after a predawn alert over a package. the metro was briefly suspended as well. at least a dozen protesters were arrested the morning outside the national rifle ordination. code pink blames the nra for blocking gun legislation on capitol hill. and america's favorite fast food restaurant is chick-fil-a. the chucken chain took home the top spot by a wide margin with 87 points on a scale of 100. papa john's came in second. that's the cnbc news update. >> papa john's. >> the bread sticks are pretty good. >> domino's, pizza hut. >> so chick-fil-a is -- >> that i will throw my support behind. heck, yeah. >> i don't discriminate. i eat at them all. i love them all. >> if i'm going go for chicken,
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i love el pollo loco. >> and bojangles'. >> they won't let us go on. you'll start to hear music. what did i say. thank you, courtney. on we go. i'd like to thank my mother and the whole academy for this today. the nasdaq up ten. a leading trader will tell us what he's watching into the close when we come back. >> and we're watching now for after the bell earnings for fedex, k.d.b. holmes and adobe.
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we have more testimony from janet yell entomorrow, we've got to the russell rebalancing on friday, but i think everybody is waiting for brexit. don't you? >> no question about it, bill. everyone's talking about it.
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it will happen on thursday. assuming it's a close vote until they get the tally together and friday couple it with the russell. it's going to be quite a day. >> all things being equal, what would the russell rebalancing do to the market, do you think? >> one of the things that we're seeing in these major events, everybody's coming out. a lot of this stuff ends up pairing off. i think the nature of the way it's been, a lot of guys are looking at the selling opportunity. look. bill. there are a lot of conflicting things. well there's been cash, the banking calendar has been slow. we'll focus on the fed and elections later. but one of the things we were looking at is preannouncements, yet something else to put pressure on corporate earnings. if you have all this cash and you have rates that are negative, why isn't that coming into the market? it would be if people were
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exciting about it. >> see you thursday. >> thanks. >> kelly. >> thank you both. a little more than 20 minutes left to go. the dow is hanging onto a gain. coming up, we'll tell you what to expect from the earnings report after the bell. plus, donald trump may be promising to make america great again if he's elected president. but given his fund-raising, he may have a hard time getting to the white house. more coming up.
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welcome back. facebook and instagram announcing today. >> julia boorstin from san francisco with look at that. julia? >> hey, kelly and bill, that right. facebook has 500 million active users, 300 million who years data sharing. the community is increasingly global. 80% of instagram users are overseas and the users click like an average of 4.2 billion
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times day. instagram's growth is particularly impressive compared to twitter. its growth has been stalling with it. and it reportedly has 150 million active users. it was said on cnbc this morning there's huge potential to grow inzbram's ad potential dollars. it can tap into facebook's 3 million advertisers. in contrast twitter's advertiser number was just 130,000. snapchat doesn't disclose advertising numbers. this comes amid facebook making investments. the wall street journal paying $50 million to media companies and celebrities to create video for facebook live. this is part of beta program. quote, we're working with these
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offers to work on experimentation with this new for matt. facebook hoping the live video will engage users and draw ad dollars over from television. guys? >> i've got one. one of the first things you said. 80% of their users are overseas? what is that about? >> well, just shoes just how global instagram is and the potential not only to have a massive user base here, but also grow overseas. so you know, we have to remember tha that all of facebook's apps are global. >> i wonder, julia, any signs that snapchat is stealing the momentum from instagram even as we talk all the successful numbers and the rollout? >> it doesn't seem like it. snapchat is huge. i think we're seeing a lot of users use these services aet the
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same time. they'll have senate chat and instagram on their phone and use it for different things. senate chap is for communicating where insta program is more for sharing. i don't think that the success of these two services is mutually exclusive but snapchat doesn't disclose as much because it's a private company. now that we have these numbers, it's pretty impressive that instagram is twice as big on daily basis. >> it is. thank you so much, julia. >> as you know, i joined instagram recently. >> i don't because i got ought of it which got me in trouble at the wedding. >> i don't know why. >> i saw one of you in a yankees head, sort of jay zesque, so it does make its way to me. >> yes. i have nothing to say. don't try to follow me on instagram. it's really not worth it. >> we've come off the heise. the transport is negative.
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the vix is higher and the small caps. the nasdaq is only up 8. >> our next guest is telling clients to sell rallies right now and he'll explain why when we come back after the break. this is my retirement. retiring retired tires. and i never get tired of it. are you entirely prepared to retire? plan your never tiring retiring retired tires retirement with e*trade. i'm in vests and as a vested investor in vests i invest with e*trade, where investors can investigate and invest in vests... or not in vests. sign up at etrade.com and get up to six hundred dollars.
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all right. i've still got jim crime never my ear. not that it's bad thing, but it's distracting. we have team coverage right now. susan li is back at global headquarters ready to preview fedex's numbers. josh lipton is in san francisco tracking adobe and diana olynick is following kd homes. susan. let's start with you. >> they're calling for eps growth of 23%. revenue should be cobbing in at $12.7 bill and that implies gains on the upside from last year. analysts i spoke to last year, they're looking for more guidants, but then they want updates on the $5 million merger with tnt. they want to talk about brexit as well since fed iks has a
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substantial european business. that's something i'm watching for and the competition from amazon. back to you. >> all right. i saw susan li's lips stop so i know she's stopped talking. let's go to san francisco and josh lipton. josh? >> they talk about adobe. it's made the transition to the cloud. investors have piled in sense that market low in february. adobe stock is up some 30%. it's now up 20% over the past 12 months. today wall street expects adobe to report revenue of $1.4 billion. also they'll focus on annualized recurring revenue that's a leading indicator for the health of that business. the bogey there is $3.4 billion. on a call, robert matson says he'll be listening for any color about digital meade yarks market
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strength and guidance for the long-term margins. guys. >> thanks. just a reminder, kelly will be talking with adobe's ceo in the next hour. he'll be talking with her before he even gets on the analyst calls. so yu get that news coming up. die a narks what are you looking for on kd homes? >> for los angeles-based kb, we're expecting revenue estimated at $747 mill. this on the heels of a big miami-based la nar. he thinks kb is pretty cheap and ripe for the picking of a possible takeover. shares are up 18% so far this year. we've seen the builders benefiting on this, especially on the cheaper end, so kb could benefit from that a lot. bill? >> all right, die a nachl thank you. thank all three of you. back to you at the top of the hour when all those earnings do come out. in the meantime joining me on
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the floor of the new york stock exchange with the dow up 24 points right know, we have steven. i've been remiss. art cashin said the markets are $4 million to buy. we'll keep an eye on thachlt what do you do with this market here? clearly it's obsessed with just a few things going on right new york -- now, all of them headline risks. what do you do? >> we think that the markets are going to end the year in the u.s. slightly up. from our pe speckive, you see some of the rallies in the u.s. and use that. it ooh going have to be global. it's going to have to be very, very active. sideways, it's going be here for a while. and then also have the patience to move away from the headline risks. brexit which is going to be a slow moving train. the elections which will be more
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grandparents' day locked and focus on the person of the hour, the day, the month, the decade. i think the guidance she gave about whether it's one and done, two, the spacing of the rates, i think, goes back to earnings, what they're going do. >> there was a time when the fed signaled no rate hikes for a while, that was the greenlight to buy. that's no longer the case, is it? >> no. that's what narths are looking at. also it's a global interest rate right now. we've been saying for some time this is a banker's world. so you've got the ecb driving medias. similar to japan. so it's not just the fed. there's a lot of global demand for triple rated securities and there's not a lot of vendors for that. there's only so much the fed can do. you have an okay economy, 2%. not a recession in the u.s. we're not calling an end to the world. but trim some of your winners and go global. >> just muddling along. >> muddling along, i think, is
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the technical world. >> good to see you. all right, kl. we're going to have the closing countdown. what are you coming one? >> oh, boy. after the bell, tough tuesday. donald trump, his rival hillary clinton slamming his economic plans. all filings show beleaguered donations. we'll look at the businessman's bad day coming up. you're watching cnbc, first in business worldwide. what are you doing? getting faster. huh? detecting threats faster, responding faster, recovering faster. when your security's built in not just bolted on, and you protect the data and not just the perimeter, you get faster. wow, speed kills. systems open to all, but closed to intruders. trusted by 8 of 10 of the world's largest banks. & in a world held back by compromise, businesses need the agility to do one thing & another.
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this is called a wait-and-see market. remember, this was all during testimony fed chair janet yellen which began 10:00 eastern time this morning. so we had a minor rally on the open this morning, but it's been sideways since that time. >> i think what you want to look at is the bit of the bump we got toward the end of the day. that, traders tl me, is mostly due to oil, which paired its losses. that's one of the reasons the market is in positive territory today, energy as well aztec stocks as well. yellen, a bit of a on. she didn't do much, some will say. the fed will raise rates. >> that's often the goal of the fed chair, right?
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>> yes, yes. >> we're back to 170. that was the last print i saw. i don't know if it's still there. a steady stair step there. they've been buying that recently out of fear what was going to happen with protection it. so this is sort of the thaw. >> right. i was going to say that would suggest maybe they aren't concerned about brexit, although the polls continue to not give us any clarity either. >> that's going to be the case. >> right up until thursday. >> yes. the dollar rose. that was another trade that we had seen anticipating a brexit vote. so we're back to 94 there. in fact, i saw it higher than that a little bit earlier. and the vix. the great fear indicator itself which plunged yesterday, came back a little bit. we're back above 18. still, that's not signaling much fear right now. >> not a lot of clarity, i think, for your the markets from today's testimony from janet yellen. i'm not sure anybody's expecting
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much more when she answers questions from house members tomorrow. so, again, the investors are waiting to see what happens in london on thursday with brexit. >> we had a global investor on a little while ago who was saying european shells are so cheap relative u.s. shares you could buy them and still make money on three to five years and especially the banks that have been so hard hit in europe because of the knellive rates and the fierce about what brexit would do to the european economy. that's been a hard hit sector as you well know. >> and i think the european banks have a lot to do. if indeed they decide to leave, there are a lot of questions. you know, if the -- if they do -- if the uk does leave, what kind of costs are imposed? [ inaudible ]
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>> thanks, mary. see you later. going out with a 20-point game. >> the alzheimer's association ringing the bell at the new york stock exchange wheel they're ringing the nasdaq bell. thank you. i'm kelly evans. the stocks going out with a 23% increase. the nasdaq was lacking all day managed to post higher by 6.5 points. energy, a top former. the transports are weak today, down about 23 points. the vix continued to move higher. even the small caps were weak on the session. we'll have more on that. but the investors are set for a
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trio on big earnings and our reporters are ready to cover them all. josh lipton waiting for adobe, and diana olynick will be joining us. thank you, we'll be out to you shortly. michael santoli along with kevin new mark on a tuesday and steve grasso will join us shortly as soon as he's finished on the floor. mike, given what happened this morning -- the poll, i forget whose it was, coming out and saying, hey, there's still a bit of an impulse for britain to leave the european union, but then we kind of improved the tone. >> yeah. the market shrugged it auchlt it feels like it got into a neutral position. obviously they got back a little bit of that late-date selloff. it seems to me, though, that the direction of surprise, of course, would still be if the uk
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votes to exit the european union, but that doesn't mean that the market is necessarily going to be too jarred along the weight of that. a lot of stuff below the surface, you see the stuff that was weak today. on the other hand, the broad market pretty resilient. >> it was interesting to see lennar, beat on the bottom line had positive commentary. we'll check. >> we talked previously how, you know, 10 or 15 years ago t housing stocks were like a good tell for the market. nowadays, i'm not sure they tell you very much. you know, i would say we look to them all the time, but i'm not so sure that retail or housing or the markets the way they used to be. >> what about apple which arguably has been in recent past, they've come out and talked about how there's not going to be major innovation for the iphone 7. >> my general view is that
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people who keep on looking to grow stocks for the future of the market are going to be disappointed largely because they're very fully valued overall and i still continue to believe you'll have to see strength in financials and strength in the energy stocks. >> bethe way, apple's reaction today up, you know, 0.8% when you have that report from the journal saying don't expect that much out of the phone and then you have a lot of people crying that they might get rid of the head phone jack. >> myself included. >> there you go. the market shrugging it off saying they don't expect much of it out of that. >> also interesting that energy hung in there. >> it's absolutely true. you mentioned the transports were lower as well. they act like they're on wheels. so it is interesting that energy stocks managed to hold up okay. you know, not much has knocked
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this crude oil rally off target. it still remains in a decent pullback. >> steve grass sow here. >> thank you. >> there's a question on the hee yields and whether it should be tracking oil as tightly as it continues to. >> i think the complicated thing about oil and what you guys just touched on is that oil can be inversed to the actual energy stocks. don't get confused. they're loaded with yield. look at those top couple of holdings. for me you're starting to see a lot of e & p buying. that's different than what we saw last week or a couple of days ago. think it's a yield event versus a rate operate. >> e&p, exploration and production. >> exactly. >> we get fedex, kd homes, and adobe. at least we get earnings in what is otherwise a quiet period. you want to look at these
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companies ultimately for a better read on the economy. >> i think ultimately people know where the economy is and it's a soft patch. if you're going to look for the transports or look never in the economy, i think you're better off looking with safety, the staples, the top tear energy. that's where you're going to get the yield. as you and i discussed before yesterday, there's not a hecht of a whole lot that's going to change for me after this vote. i don't think people are going to be happy with where rates are. people are still going to be reaching for some type of concern on capital. >> also fed chair janet yellen took to capitol hill. she was asked about a recent slowdown. we can play that for you. >> economic growth has picked up at a weak pace and if that slowdown is a reflection of weak growth earlier in the year, i'm hopeful that we'll see stronger
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gains going forward. and while it is an important report, i would also emphasize that it's important to never overblow the significance of a single report or a short -- a small amount of data. >> that said, michael gapen joins us. here's a chief economist with barclays at post 9. >> the labor market which is the most important signal about expansion and contraction in the u.s., no, you dolkt make too much about any one report, but the trend is awfully week. it's going to signal something more pernicious. >> how likely is that? that em ploit growth tends to lead all of those. claims start to rise.
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it's one thing not to hire, it's another to start firing. it's enough to put recession probabilities in. but 30% chance over the next four quarters. >> mike, i have a question. for the last four or five years, job growth has been relatively good, right? >> good. >> month to month we hear it's good. somehow for some reason, it's never the right reason to raise. all of a sudden years and years after 200,000 job as month, all of a sudden we're on the brink of recession and we can't do anything because we might only get 50,000 job as mojts. why is that? >> for years we were being told, don't worry. we were definitely in line with that. i think it makes sense to say we have three reports between now and september. i think what yellen said let's validate it. if they are and you get a uk
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vote to remain and financial markets stabilize, they'll be right back in there talking about september. >> what's the number you think it will take for the next jobs report? >> for them 1rks 50. for me, a little stronger. >> 150 for a june number sfl. >> i think they need to see more than one. but as long as it's 150, that's enough for them. >> it seems like she's grasping at this point. every fed chair gets to that point where they seem beaten. she seems beaten. first we heard about china worries and brexit worries. today we heard more about china again. so it seems to me there's never going to be a right time as you said before. i thought they wanted to get one out of the way before the it. she's scrambling for another reason why they can't raise. >> right.
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it's like walking into a bar and there's a sign, free beer tomorrow. if you want to be a little disparaging, yes. they found markets in the past. not enough inflation. china and oil earlier this year, u.s. labor markets now, they seem to find a reason to be cautious. >> hold that thought for just a second. the adobe systems looks to be lower. josh lipton has the results. josh? >> let's get you those numbers. reporting an eps of 71. a revenue of $1.4 billion. that's smack in line with what the street was forecasting. just looking through the release, digital media. that's your creative products, document services, $3.4 billion. that is also right in line with what analysts had forecast. rb c-notes that represents about 65% of this company's total sales. on the call we're going to want
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to hear more about the trend's in digital media, digital markets and guidants along the long-term markets. kelly, back to you. >> that doesn't surprise me. the stocks are up year over year about 25%. when the stock is fully valued -- >> it's a great performer. when the stock is fully valued, you need to be well in front of what the consensus is. >> i don't think when we first started off this spot, we talked about safety. i'm not sure if adobe fitz the characteristic of where you wanted to go. it was down initially on the print. once we get that conference call, maybe you see them start to rally and start to pop it back because it's been a great performer. >> it was a little
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disappointing. >> it was. adobe has been an incredibly short one. a lot of people picked it up. maybe from the mid-750s to heig 90s. it was supposed to grow. >> does this mean the fed gets high grades, mike? >> adobe, sure, what i not. >> or visa versa. the larger question before we let you go, going back to what we were saying, i suppose, if the fed can't raise rates at the next meeting, is it fair to say they might be one and done this cycle? is that a real possibility. >> yes. so assuming it's labor market weakness that kicks them off, yes. i think it's likely this could be it. >> it's astonishing. >> and it's the one time. i still think it's more likely
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than not you don't get that, but if labor markets are indeed rolling over, then it's not a move from september to december. >> by the way, i want to draw everybody's attention to the guidance. 43 to 46%. the hp ink shares are popping higher by about 5%. anything you want to add, guys, on hp? >> it would be the polar opposite kind of stock. this is kind of your cash cow. >> adobe going the other way. we'll speak exclusively with the company's ceo in just a few minutes. thank you steve grasso and michael gain. be sure to catch more of stev
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grasso with "fast money" coming up in the next hour. mark zandi on why trump could trigger a recession. we're going get results in from fedex and what the numbers say about the state of our kmim and what they spent last month. we'll look at whether that's a red flag. you're watching cnbc. first in business worldwide.
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. welcome back. the dwight ants, josh lipton has it. josh? >> let's walk through the numbers. on the top line adobe's dwight ants was from 1.4 to $1.7 billion. analysts were looking for 71 cents. remember, this stock heading into this print had been up about 30% off that february low, but now heading low in the afternoon hours. i know you, kelly, and jon fortt have the exclusive. plenty to talk over with him. >> we plan to. josh, thank you so much.
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fedex earnings are out. let's get to susan li with that. >> when it comes to eps in the quarter, we're looking at 330 a piece. analysts were called for 328. revenue coming in at $13 billion. analysts were looking for 12.7. and we're looking for guidelines right now. a full year of guidance. back to you. >> susan, thank you. >> it's a very steady stock in the last year or so. it's had some of the premium come out of it. it's not one of those transport stocks that people think has a real wide swing. >> let's get more. a 182 price target -- $182.50 price target. appreciate you joining us again. they beat on the top and bottom line, the revenue number,
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especially, donald. >> it's starting to bear fruit, one, and, two, let's face it they're the deliverers of e-commerce. ups ground hasn't grown but fedex ground has. >> why were they allowed to go forward with at&t when ups was blocked. >> you have to understand the two dominant forces in europe are dhl and ups. adding tnt to ups would have been adding to one of the two biggest competitors. fedex is not. it made all kinds of sense and
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it did not put them in a dominant position as it would if it was ups. >> you're probably right. they emphasized when jeff bezos was at the code conference, do you see it the same way? >> we do. amazon, $105 billion, walmart, $525 billion. one-fifth the size of walmart. walmart owns 300. they're the largest customer of swift, first or second largest customer of any major trucker out there.
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>> shares lower by about a percentage point. >> you're not going to get, you know, fedex is going to trade off their guidance. it's a well run company. >> if you agree with that, donald, what else do you see in terms of the may crow environment here as factor? >> well, there are a couple of different marketplaces out there. part of america is in recession and part of the consumer in the united states is arguably in a mild recession. but e-commerce is white hot. if you're an etailor, it's an on going secular growth. looket at the economy overall
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does not tell you anything. fracking looks very different than amazon. >> is there any glimmer of hope, donald. thal the recession is starttology bottstar starting to bottom out? >> we're see 10g% down volumes. last year it was 10%. although the cops are easier and easier, it is more negative on top of negative. >> and so, donald, what is the outlook when it comes to pricing? do they give the shipper as little bit more leverage or does fedex have a decent pricing story? >> think they have a decent pricing story. let me tell you why. the what happens is this. people who have done business
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with walmart, when they went out and acquired trucks, it was an inive tish package tore. they realized how hartd is to hire pilots and pay for fuel and interest rates, et cetera. amazon is one of the lowest operating margin customers they have. because they're so big, bus that kay any gauche rate it. it's not like they were making that much money. so if you lost the revenue, you're like, good riddance, i wasn't making much money anyway. kd homes earnings are out. let's get straight to diana
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olynick with those. >> base earnings, 17 cents. we expected 13 kents. housing revenue increased. they saw double digit increases in all four of the company's regions. average selling price increased 2%. net new orders up 8%. jeff mets zber calling out the first home time buyer. he said we're encouraged by the improved conditions in the market conditions and the recent participation from humidity buyers. the only other builders who were focused and as we saw earlier, lennar with a big beat, they had that. some of the other builders in the last couple of years have really focused on the move up
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and the higher end pulte home. again, a big beat, shares up 11%. >> do you know what the share of kd homes was a little over ten years ago? >> 70? >> over $80. i bring it up to show you that years ago when kb beat, it was, wow, that's great for the stockmarket an an economy. >> look. rates are as low as they really ever have been. if they're not doing okay now, they're a bigger problem. >> first of all the estimate for this quarter was for 18 krenltds. they made 17. that's why the stock is just sitting there. i do think there's a way to distinguish housing becoming a net contributor over this year
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and the comes years versus the house sector those two things can be inpen deb oftz each overing. >> sure. >> you know, it's weird. rates are so low. it's kind of mind-boggling. >> it's the generational thing. >> did you call me old. coming up, the ceo will join us exclusively on how his company is impacting the bottom line. first, though, donald trump's campaign, spending and whether it could prevent donors from getting money to his campaign.
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welcome back. new reports shows donald trump is behind hillary clinton. the democratic candidate took aim at trump's financial record earlier today. >> donald trump has said he's qualified to be president because of his business record. a few days ago he said, and i quote, i academy goi'm going to
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country what i did for my business. so let's take a look what he did for his business. he's written a lot of books about business. they all seem to end at chapter 11. >> for more on, this let's bring in randall lane, editor at "forbes" magazine. thanks for joining us. how big a deal do you think this fund-raising gap is? >> it's a huge deal. trump is already behind and hillary has $40 million in the bank. trump's got about a million in the bank. given that he has 70 employees and hillary has 700 employs, he has a lot of pressure. the problem is he's going to have a lot of problems getting money considering he keeps
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talking about how rich he is but doesn't give husband own money? >> it's the same prop that? super person risks. mitt romney always played down how rich he was. compared to him. donald trump is m many, many -- he's the richest. he told me in september -- he can say i've got it in real estate. he told me in december he had the money in cash. he showed us documents some of if you're a rich donor and you're looking at donald trump who in fairness as loaned his
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came. he goes back and foshlgt. the but it's very hard to have one super-duper rich person when people are less rich than he says he is. >> randall, it's evan new mark. let's go two weeks from now, three weeks from now just before the conviction. if he's sitting there with a weak treasury, what does he do? does he pledge his own money or bow out? >> he's not bowing out. he could do that, without showing incredible weakness.
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this is somebody we've seen. he e says almost $800 million in cash and he says he's worth over $10 billion. that's showing that he does not very any faith in his campaign, who's going to put him in. >> right. the roi here -- >> oh. >> if he had made it this far with the way he kind of did a shoestring, you know, medial saturation kind of heavy campaign, it's hard to make that announcement now he has to throw out that successful play book and throw out old establishment rules that have never been part of who he is. >> that's a fair point. what he's done so fashion his roi is spectacular. i mean spectacular, what he spent to get the nomination is
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unprecedented. i was in his head quarters. there were no desks. so what he's done is completely flipped the script. the problem is now he's running a campaign where it's not state to state, gorilla warfare. he's running against one incredibly well financed opponent who has a well financed parties behind her. the polls are showing he's behind. ful he was leading, it would be less of a crisis. those polls change. but in the time being unones following the other. >> thanks for joining us, randall. it's foom for a cnbc news update with courtney reagan. here's what's happening now. bipartisan senators hope to introduce a bill. led by susan collins from maine
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and including bill nelson from florida held a news conference saying their proposal aur as common sense solution. >> they looted shots and baltimored roads. the south african party con dimming the buy lens. an increasing number of americans are near sighted. women appear to be at the greatest risk. and former english schons it. is for them to remain in the european leaders. that's a cnbc news update at this hour.
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welcoming back. checking on the name, fedex down 1%. adobe, dropped more than 4%. kd homes is hanging onto a gain of about 2.5%. for more on what's behind adobe's earnings, jon fortt joins now with ceo of adobe, shantanu narayen. >> thank you for joining us. it's at the high end of the range. it's this guidance that's got people concerned, so i know there's a bit you'll want to say about if quarter. you said you're target 20g% growth for the entire year, you
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got in growth. that imply as really, really strong q4 to hit the far get, i marriage. give a little color on what you skpkts and how do guess confidence? >> first, i picture fiscal 16 too be a great year. o we raise our digital media from $3.875 billion to 4 billion dollars. and today we actually stated we expect to meet or exceed all of our financial taim target for the year. it is a traditional q3.
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all systems are on track with respect to continuing to grow our marketing revenue at 20% per year. on eps as you can see, we're also demonstrating significant leverage in the business. >> let me ask you. you and i have talked several times how things look like they're playing out. m & a for example. we've heard of plans for microsoft to buy linked in and we heard from jeff weiner. you're targeting creatives and marketers. but tell me how you're going to nav gatd in this environment of giants increasingly? does that make it harder for you comparison wise. maybe even thoughing investors what you want to show them? >> i think jeff -- i think the area we're in is a significant
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taunt for us. when you look at what's happening with creative expression. the amount of content. did tall media had a cooperative quarter. we exceeded that. and it's amazing that three years into this transition we're actually adding record new annualized record revenues. when you think about digital disruption and what's happening with every business rethinking their online presence, we're the undisputed mashlgt leader in that particular category. we have a difference yated offering. from that port of view, we think we have the assets requires to grow the top line and bottom line aggressively as we've been
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demonstrated. >> you were so ahead o the kwam. especially with google and rack space beefing up and coming after you in some of your core markets, how do you stay ahead. >> i think what's happening in that particular space is now with our cloud transition, 81% is part of it. so we feel very good about it as well as the retention we're seeing. with respect to what google and others are doing as well as amazon. from our point of view, that only helps us. it should actually help us reduce our overall cost of delivering the kind offer is fast that you do.
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they're potential partners and are looking to attract our business rather than compete with us. >> shantanu, i want to talk abouting your stock and also mobi mobile, which you said in the past is drawing new creative subscribers into the ecosystem. are both of those trends continuing along the same line? is either slowing down. is it time to put more into your cloud to boost it? >> first of all, a couple of announcements to make, jon, we announced the new interface design and that is doing extreme wale. we earned 15% of an lotic trance actions. it's clearly a tail wind for our digital markets business.
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we saw a potential increase for revenue in the last three quarters. we announced a major upgrade where there's deeper integration of the stock and mobile applications. stock is one of the businesses we're very excited about. it's extremely meaningful. >> >> excellent stuff. thank you for joining us. a new report saying health care won't get cheaper. >> what's it mean. next. no. it's all about understanding patterns. like the mail guy at 3:12pm every day or jerry getting dumped every third tuesday. jerry: every third tuesday. we have pattern recognition technology on any chart
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a new report is out on what will be driving health care costs higher. bertha coombs has more. bertha? >> kelly, they see health care spending growth up about 6.5% next year. that's about in line with what we've seen the last few years. part of the reason is high cost drug spending they see stabilizing. so what is driving growth? well, it's one of the cheapest areas of health care. it's those urgent care and retail health clinics. they're very popular. we use them a lot. >> the doctor's office, i have to call them and see if i can get in and sometimes i have to wait. but i can just walk into an urgent care. it's konked by my insurance.
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i don't even have a co-pay. >> yeah. doesn't even have a co-pay. ite's cheap and convenient. it's so convenient where we use them for routine ailments. they say over the last ten years spending at doctor's offices have gone down 17% for those types of visits where urgent care visits are up nearly 20%. and they also say that the growing volume of use is starting to add up to overall spending. >> last year high-cost specialty drugs was the main driver of transition. this year it's more transition that's driving trend sthoos that utilization is really causing a bit of an inflationary uptick. so what are companies doing? they're looking at narrower networks, they're looking for more high deductible plans. and for us, that is going to
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mean continuing cost sharing perhaps even for urgent care visits. back to you. >> cmd would be one. >> i use them on the upper west side in new york. >> me too. >> with the kids, they sauls seem to come down with a fever before the weekend. >> or the flu before a big trip. what's interesting is the same issue has come up where it should be covered by insurance in full or in part. >> you always got the impression they were operating in the gaps. i don't mean it's a rip-off. i've used it too. there's a convenient for it. if it's people are consuming more of this thing called health care. it's not that the price of the average unit of health care is going up in an inflation airway. >> i guess that's a better outcome. >> you prefer it that way. if you're getting decent results out of that -- >> exactly. the hyperloop.
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dealing with the city of moscow, next. i take prilosec otc each morning for my frequent heartburn because you can't beat zero heartburn! ahhh the sweet taste of victory! prilosec otc. one pill each morning. 24 hours. zero heartburn.
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moscow is getting a hyper loop. phil lebeau has more. phil? >> kelly, what's interesting is that this is the latest deal hyper loop one has designed to look into developing future hyper loop runs. but they've not come in the united states. all of them have been overseas. the latest with the city of moscow, essentially looking into developing some hyper loop routes in and around the city, tied into the city's transportation grid. again, these are possible routes. it doesn't mean there's a deal they're actually going to start digging. they're doing this in
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development with the russian development forum. listen to this quote from the executive chairman of hyper loop. the longer term vision is to work with russia to implement a transformative new silk road, a cargo hyper loop that whisks freight containers from china to europe in a day. it was just last month we saw the test sled for hyper loop one demonstrated outside of las vegas in nevada. they're looking at building a full-scale test hyper loop that they plan to test in the fourth quarter. again, kelly, they believe by 2020, they will have a hyper loop transporting cargo somewhere in the world. maybe in northern europe, now in russia. it will be interesting to see if any of these come together. we still don't know how much money would be involved, at least in the limited run hyper loop. >> it's fascinating. i love this story, the whole concept. phil, thank you. this is going to cost -- does
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russia have the money to spend? >> you know, russia is the number one producers of memorandums of understanding that go absolutely nowhere. there have been thousands of understandings for development. they get -- you know, it's a political tool. in moscow they look like they're moving forward. we're bringing new technology. it's a political thing. i would bet a lot of money that -- >> that was impressive footage there. >> they were zipping around -- >> is our dog in it? >> like the old sputnik. >> it's a race. >> i totally agree. >> if i had a rubele for every memorandum of understanding i ever witnessed in russia, i would be a very rubele-rich man. >> it would get you nowhere. >> adobe, fedex, getting a check
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on the stocks and what to listen for right after this. e differences. [ crash ] and reunited three decades later for a tour that sold out in three minutes. and your cisco hybrid cloud handled millions of ticket orders without breaking a sweat. before all of this, [ crash ] the experts at cdw orchestrated a cisco hybrid cloud solution. scalability by cisco. orchestration by cdw. andrea sikon. medical doctor from cleveland clinic, watson, let's review the electronic medical record of the next patient.. no problem. it's a pretty huge file. done. sorry for the wait. that was quick. as part of our research, i also compared lab results with notes about prior treatments, then cross referenced it with thousands of medical journals. and i get the benefit of much more data, and a lot more time to plan the best treatments. i stay focused 24/7 and never sleep.
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you sound like a lot of medical students i know. this just got interesting. why pause to take a pill? or stop to find a bathroom? cialis for daily use is approved to treat both erectile dysfunction and the urinary symptoms of bph, like needing to go frequently, day or night. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex do not take cialis if you take nitrates for chest pain, or adempas for pulmonary hypertension, as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, get medical help right away for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision, or any symptoms of an allergic reaction, stop taking cialis and get medical help right away. ask your doctor about cialis and a $200 savings card
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stop taking cialis and get medical help right away. this man creates software, to protect this customer, who lives here and flies to hong kong, to visit this company that makes smart phones, used by this vice president, this little kid, oops, and this obstetrician, who works across the street from this man, who creates software. they all have insurance crafted personally for them. not just coverage, craftsmanship. not just insured. chubb insured. let's take a look at shares of fedex, responding to the earnings. in anticipation of the
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conference calls that should get under way in a couple of minutes. adobe down 4%. at $95, it was at 25, evan, five years ago. so it's gained a lot of ground since then. >> you know what i would say. when you see companies like fedex and adobe, i'm not a bubbling optimist about the america, or the economy, or anything. but those are -- fedex and adobe, i can't really speak for kb homes, are well-run companies, that have been steady growers over a period of relatively, you know, high economic turmoil over the past few years. they're still going. they're still doing well. i think what we'll see in earnings season again is nothing's going to come out as a big surprise. you're not going to have a lot of aftermarket surprises. u.s. capitalism will chug along fine. >> the can profits have been falling since 2014. >> they've fallen five quarters in a row, this will be the fifth
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quarter in a row. on the other hand, on a calendar year basis, for the earnings in 2014, $117 last year, the current estimate about 119 for this year. so it's been down for five quarters in a row, but basically standing still. >> a lot of that was also the energy sector. >> exactly. >> therefore, the stock market was there a few months ago. >> it was repeated that we've heard from other folks when they said the industrial section is in recession. >> it is a concern if it's not pulling out of that. i think a lot of things -- if you're worried about the auto sector coming off peak. that being a source of further weight on the industrials. >> carmax had to increase its loan loss provision. as people try to sense whether that cycle has turned. you're not in the market for a car anytime soon. >> no. the financing nowadays is so
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cheap, it was like, by the way, i hate to say it, i'm going to tell all those young people out there, you've got to be crazy not to lease a car or buy a home right now. you'll regret it a few years from now. >> thank you both for joining us this hour. that does it for "closing bell." "fast money" begins now. "fast money" starts right now. we're all over the two biggest stories impacting your money out of d.c. and london where the fed's two-day testimony in the possible brexit has the traders listening. wi wilfred is on the ground in london. we start with steve liesman. they seemingly looked over comments from the fed's monetary policy report that could have big implications for this market. >> markets were mostly focused on what the fed chair said in the q&a session at the senate banking committee.

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