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tv   Closing Bell  CNBC  July 15, 2016 3:00pm-5:01pm EDT

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build institutions that promote that common humanity and those who do not. those who would somebody is less than them because of their tribe or ethnicity or faith or color and those impulses exist in all our countries. and those impulses, when we do not speak out against them and build strong institutions, to protect people from those impulses, they can take over. they can be unleashed. so that all of us have responsibilities. not just a few. i want to say that even as we're relentless against terrorists, it's also worthy for us to recognize that our nations have worked together for security and
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peace and human dignity around the world. i want to thank so many of your countries for the partnership that we have forged, the progress that we have achieved together over these past eight years in rescuing the global economy and securing vulnerable nuclear materials, comprehensive deal to prevent iran from obtaining a nuclear weapon, halting the spread of ebola and thereby saving countless lives. in paris, the most ambitious agreement in history to fight climate change. new sustainable development set of goals to end extreme poverty. and promote health and education and equality for all people, including women. and, through the efforts of many of you we have continued to try to move beyond old conflicts, supporting the tradition to democracy in burma, forging a new partnership in vietnam.
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deepening our new chapter of engagement with the cuban people. helping to support the efforts in colombia to end decades-long conflict. that's the power of diplomacy. that's possible when our nations and our peoples work together in the spirit of mutual interest and mutual respect. what a contrast to the death that terrorists offer. what a powerful reminder of the progress and opportunity and hope that we can advance when as nations and as peoples and as individuals we refuse to be defined by our differences alone and we remember that we're all part of one human race. even on difficult days like that that's what gives me hope and what should give us all hope because on this planet of more than 7 billion people, the hatred and the violence of a few ultimately is no match for the
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love and decency, hard work of people of goodwill and compassion so long as we stand up for those values. so long as we answer those who would undermine those values. i'm very proud of the work that we have done over these last 7 1/2 years in partnership with your countries and so long as i have the privilege of being the president of the united states i'll continue to stand alongside you to promote those values all across the world. thank you very much, everybody. [ applause ] >> the president speaking maybe for the last time to the foreign diplomats of other countries that serve in the united states. among them, the ambassador to the united states from france with remarks, obviously, in light of the terror attack last night in nice, france. let's go to aymanjavers for
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more. >> reporter: you heard him respond to some of the reaction from newt gingrich, the former speaker of the house and president not mentioning him by name but clearly referencing gingrich's suggestion in public last night that muslims inside the united states be somehow tested for their ideological beliefs. the president said that very suggestion is repugnant and an affront to all we stand for as americans. he said of the terrorists we should never do their work for them. that is, he said, the terrorists trying to divide the western world, the civilized world, by religion and ethnicity and we shouldn't engage in that ourselves and appeal to the diplomats of countries around the world who were in that room saying we as the western world need to work together to solve this problem, tyler. >> very much. thanks, everybody. michelle, have a great week in cleveland. you will be hot in cleveland. i know that. thanks for watching, everybody. let's go down to "closing bell"
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with bill and kelly. thank you, tyler. welcome to "the closing bell," everybody. >> it's been a record week for stocks. here's a fun fact. if the s&p were to close higher today, it would be the first time the index has closed as a record every day of a five-day week since march of 1998. i'll bet keith knew that already. that's according to our friend howard at s&p. we'll stay on top of every move going into the close this final hour. >> wells fargo shares lower after earnings this morning showed weakness. shares down nearly 3%. the bank's cfo joins us live for a first on cnbc interview coming up. a closer look at china's latest economic data and why it could be pointing a disappointing picture for the second half of this year.
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horrible terror attack in nice. president obama speaking just moments ago. we'll have the latest details for you coming up. let's start, though, with the markets. when a week it's been. the s&p trying to make a run at five consecutive record closes in the same week. bob pisani here on the floor of the exchange with play by play. bob? >> we have a shot at making that five-day record. best since 1998. we'll see. take a look at the week. still up nicely even flat. look at that. all four days up about 1.5% overall for the week here. take a look at the markets in the last hour. this is a very important week overall. s&p 500 essentially at a historic high. bank earnings beat. a huge story. retail sales and industrial production today better than expected and we have an ipo mark that's finally showing signs of life. this is very important for the market's psychology. look at the sectors much everybody worried about banks a couple of weeks ago. up 5% this week. materials and industrials to the
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fore. utilities, of course, down this week and the go-to safety play two weeks ago. things have really changed around, guys. next hour, we'll talk about what you need to talk about next week and look at and it's got to do with big stocks. we'll see if the good news commentary of the banks continue in that group. i'll have some thoughts in the next hour. guys? >> bob, thank you. bob tells us what to say and what to think so he'll tell us what we should be talking about next week. now the exchange for this day, though. david from lumis sales with us. new york stock exchange trader keith bliss. >> hi, bill and kelly. >> rick santelli is there. another week where the market continues higher with head scratching. people wondering why it's happening now. we have had two reports that show that the cash levels of individual investors continues to increase even as this market goes up. >> there's cognitive disso nance
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right now. but i always go back and talked about it before. the real important index for me is russell 2000. looking at the march right now, everybody's -- all the indexes basically flat. russell is one that's positive. what we have noticed is investor flows in the iwm which mirrors the index and traded above technical levels. and that was the one remaining index to catch up and not hit the all-time high at 1290 but we see open brook and field running up to 1400 in that index a eand continues to drag up. >> what are you watching? >> keith makes a good point. february 11th, the russell 2000 as he's referenced up better than 25%.
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that's meaningfully better than the 17% gain for the s&p 500. to me it is important because it signals greater breadth. more stocks rowing the boat to allow the market to go higher. russell 2,000 confirmed by high yield bonds that rallied 17% and i think breadth is an important gauge for the market to find higher ground. same time, importantly, and briefly, 65% of individual investors say as of yesterday they're still either neutral or bearish and that type of contrarian indicator i think is also positive for stocks to go to higher levels. >> some take comfort from that. >> always. >> rick, i could point to a number of things that happened this week. you know, the yield on the 10-year up almost 20 basis points. the yen -- >> over 20! >> okay. last i checked is 19 and continuing to go higher. the yen falls against the dollar this week after what's going on in japan. what do you make of it all?
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>> the relationship between 007 and bonds. that's what i'm looking at. 007 is basically the yield close of boons today. going out three decimal points to peg it in positive territory. first time since the uk said adios to brussels. fast forward. here we are at zero plus for boons. yes, we settled last week and 23 basis points in 10s. above a close yield and summarize it, maybe the initial fear and shock of negative rates that gave us part of the reason for that stock surge and so much more interest in corporates may have at least stabilize a bit and seeing logic come back in the markets. retail sales is pretty good and rates moving up and stocks may not have an update today, they have had a wonderful week and i
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think with a real small data week next week after this week, i think it's very simple. my world, 166 from february 11th, bill, the low yield close for months and months. that's the next resistance. that's it in my opinion. after 136, if it's a month, above what had been the low yield then it's in. we have to pay close attention next woke. >> the surge, keith, second quarter with something to do with the change in sentiment, right? retail sales were stronger. inflation data was okay. industrial production, you know -- >> that's right. >> but -- >> went higher. >> hang on. >> go ahead, keith. >> we have luck with the data coin sided with the way the surge was coming in. who would have thought that brexit brought us out of the consolidation pattern and hit the low point on june 27th and then the market turned right
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around. probably because of soothing noises out of the bank of england and then the other central banks. who cares how we got there? off we go. back to the russell 2000. it's been the best performer since june 27th. almost 12% since that day. take that number on july 15th and analyze that for the return and nothing short of breath taking performance. >> i was going to point to earnings. it was a mixed bag. jpmorgan chase with good numbers. wells fargo and citi down after the reports came out. our good old fundamentals continue to push the market higher at some point do you think? >> absolutely yes. not just earnings, but more important will be corporate guidance, especially their cash flow performance, bill. i think it's still quite to the positive. that a next couple of years you can see analyzed returns on stocks. 7% or better. and i think the corporate profit
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environment from a c-minus, d-plus to a b-minus by year end and important catalyst for the rally to have legs. >> guys, thank you. >> my pleasure. thank you. president obama just wrapping up remarks of the horrific truck attack in nice, france. hadley gamble is in nice with the investigation. hadley? >> reporter: well, hey, kelly. basically we have heard president obama expressing solidarity with france and the french president. he's basically like french president hollande linked the attack to terror and syria and iraq but you have to remember, of course, that at this point, french prosecutors say that there's no direct evidence linking the suspect to any terrorist group, at least not so far. they're not sure that he was working with anyone else. so the big question tonight for france and for any other country really seems to be how can you
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prepare for a lone wolf attack on a massive scale? we are talking statistics speak for themselves. 84 people killed last night. dozens of them children. over 200 people injured. so many of them injured critically and so the big question for french authorities is how can they prepare for something like this? how can they keep the country safe? we know, of course, they upped the security toerss by as much as 90,000 around the euro cup games but it seems as if even though the french prosecutor came out today saying that the security forces on high alert, they weren't able to prevent an attack like this one and broader context of this, i mean, we are in the area where in nice is famous for blue waters, tourism, but really, tourism didn't slow down as a result of this and seen serious actions by mourners today. they were erecting makeshift memorials to the victims, they were mourning and holding services in the nice cathedral but you have to remember same time a country now become used
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to acts of this kind over the last several months and becoming the new normal for france and this is something that president obama certainly was trying to address in the remarks. kelly? >> new normal. >> yeah. let's hope not. >> thank you. >> thank you. >> hadley gamble on the ground there. 45 minutes to go in the session here. we have seen the market move from positive to negative territory in the session today. wells fargo shares down today under pressure on the heels of the earnings report this morning. the company cfo will speak with us in a first on cnbc interview of low interest rates and energy prices having on the bank's profits. it's a conversation we have had with john shrewsberry before. >> yes. wall street journal's ken brown will be here to explain. foand millions moremericans lwho feel its effects.s,
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welcome back. shares of citigroup lowered today. the stock up for the week. reported better than expected earnings this morning. the ceo said the results highlight the company's resilience in a challenging
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environment as it continues to reduce non core assets. >> while shares of wells fargo taking a hit today and down 3%. low interest rates are weighing on profitability. >> and the lump in oil prices, of course, hurt the nation's third largest bank. they have a large exposure in the industry and first on cnbc interview, welcoming back chief financial officer john shrewsberry. good to see you again. welcome back. >> hi, guys. thank you for having me. >> we could wade into the weeds and look at the energy loan charge up 29%. blah blah blah. the big picture is you and the whole industry love to see interest rates move up. you're still trying to figure out how to make money in a very, very low interest rate environment. right? >> well, we are in a low rate environment but as you'll notice we managed to generation $5.6 billion worth of net income by
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growing loans, 9% year over year. we did it by growing deposits and fee streams and oil and gas has stabilize somewhat for us. we're still taking some losses. it is a relatively small port folio for us and the credit, 39 basis points of losses on average loans. that's a cyclical low and been lower previously but credit is not really a bad story for us right now. the portfolio is performing really well and will be better when rates are higher. >> finish your thought. >> well, it's easier for banks to make money when rates are higher, short and long rates, so we have had to work hard to get more loans on the books. we have gotten more invested and we have been talking about this lower for longer expectation really for sometime. it's definitely proving itself out. but in this environment, we're still generating an almost 12%
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roe and $5.6 billion of net income. so believe me, it could be worse. >> to your point about loans, john, we have seen from jpmorgan and you guys that there's been -- i don't know if surge is right word, uptick, especially in commercial real estate, for example. can you speak about where you're seeing demand for loans being strong and working push out the business and make sure that you're able to grow it, you know, where you can? >> sure. well for us, been broad based. you will recall we acquired some of the businesses of ge capital last year and brought a lot of loans and leases on to our books and organic loan growth has been in commercial lending, in commercial real estate lending, in jumbo mortgage lending, auto lending and credit card lending so very broad based and some of the businesses we're the market leader. in others, we have a lot of room
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before we fully indexed and opportunity as a result. 9% loan growth year over year. >> you mentioned a stabilization in the oil markets. prices have come back to some degree. is there a price at which that would be ideal for your loan portfolio and most if not all of the companies on your books can be profitable? have you thought about a price like that? >> no. there really isn't that price. our energy book is both oil and natural gas. the book we are talking about is 2% of the loans so frankly just about every other borrower benefits of lower energy prices and i'm sure our great overall market performance is benefiting from having lower energy inputs so -- but there's no magic price. the company's -- >> i get that it's a small part of portfolio and getting a sense of the market and resume more
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production at what price. clearly that's not a metric you use or keep an eye on right now, i guess. >> no. because it is different for different types of companies depending on what base and drawing from. it's different for services companies, different for midstream companies. so there is no magic and depends on the mix of crude and natural gas depending on the kind of an extraction or upstream company we're talking about. hot, mid-40s, high 40s has been helpful. a lot more opportunity, capital raising is going on. but there's no magic. and i think we're approaching equilibrium in terms of millions of barrels a day consumed and produced and probably means that we could be here for some period of time. >> before you go, john, how would you describe how the consumer and industry is doing today? we got data points this morning that seemed better and still a lot of concern and frankly confusion out there. >> i think it's pretty strong.
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you know, you can see it in housing. more people buying homes. jobs report was, obviously, much better than people expected last month. gdp groit we have, however, however lackluster is driven by the consumer, the consumer has more cash in the bank, a better credit profile overall. big-ticket items selling and financed and our consumer credit portfolios are performing really, really well so i think that's bullish. >> before you go, domind announced a plan. where do you guys stand on that? is that something in your plans, as well? >> we started that process with entry-level employees a couple of years ago and already to the $16 per hour for entry level employees. as we have talked about before, the value proposition of wells
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fargo is bigger than that. we promote from within. we have great ben filths. on the hourly wage, that's already in the run rate and we have moved there long before. >> very good, john. thank you. >> thanks. >> thank you very much. >> thank you. >> chief financial officer at wells fargo. the dow up 9. any positive number is a record again. s&p down 2 points right now. a former nato commander and former homeland security official give us their take on battling terror attacks. stay with us.
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that terrible attack in nice, france, put people on edge. >> for more on how to handle the new approach to terror threats, let's bring in wesley clark along with former department of homeland security official mustafa tamis. general clark, how do you possibly secure roadways? >> i think what you have got to do is look at incidentses a reflective of what happens with a lot of people together. work in advance. figure out where you're going to have a lot of people that's a vulnerable. put a plan together, and then
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red team the plan with a group that's trying to actively figure out how to undercut your plan and then, of course, you've got to get all of your intelligence agencies to work together, cooperate, share data. there's no counterterrorism intelligence agency in france. we have a lot of flaws yet internationally on this thing. >> right. >> we are much better in the united states. but in the united states, we still have to take an event like a democratic or republican convention. we have to do everything we can on security and we have to red team the security plans so we have to get a group of people whose mission success requires to poke holes in it. and that's the way you beat them. >> mustafa, i can't imagine what the people of france are going through. they just went through a huge soccer tournament hosted with incredibly tight security. no events.
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they had to have been breathing a sigh of relief and then this last night. it's the soft targets that are so easy to exploit and so impossible to protect. right? >> well, we live in a very open society. and we have incredible amount of soft targets, a shopping mall or a store again or these conventions. and so long term we have to change this how we approach fighting this. we can no longer approach it with boots on the ground and winning in iraq and syria. where we are losing is cyber battle. we are not battling in the idea side. and so isis is dominating this and we have got to really change that. >> i suppose you don't know how to answer or win that battle, general clark, or do u? >> so i think, you know, for us to win that battle we have got to work more closely with our allies. so we have done a good job in this country and in terms of assimilating, making people feel
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welcome and making sure that muslim americans are americans first and i think they are but europe hasn't done that good of a job and exchanging intelligence information with the european allies they don't process it the same way we do, maybe prioritize it lower or don't have the resources. so i think what happened in nice is another indicator that europe needs to upgrade its efforts, comparable to the way we did after 9/11. >> mustafa, i was reading your notes where you cite that statistic that there may be 100 to 200 fighters around the world who consider themselves extremism, of an extremist ideology and ready to defend it. how many would you estimate in the united states with the rogues that don't identify ahead of time with the ideology and how do you protect against that? you just can't, right? >> that's -- well, that's the real threat. right? there are people that are being
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inspired by isis in the united states and around the world. and that's the real major threat, especially for us here in the united states. in france, for example, you can get in a car in syria and drive to france and in the u.s. we are separated by water. you have to get on an airplane. we have strong no-fly lists and fairly strong in terms of protecting ourselves and in this inspirational aspect, that's where we all are vulnerable and we have to start challenging isis narrative online. we have to make sure that people understand that they're giving mass carnage in the muslim world. >> general clark, we have the gop and democratic conventions coming up. any additional precautions here that need to be taken? >> it's hard for us on the outside to know and we wouldn't want to know that. if i knew it, i wouldn't want to say it here on bloomberg. but, you know, everybody understands the significance of the events and confidence the
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intelligence agencies, local and state and national are doing everything they can to assure we don't have a problem there. >> we can only hope. >> yeah. >> gentlemen, thank you. general, good to see you again. mustafa, thank you for joining us, as well. appreciate it. time for a cnbc news update. >> good afternoon to you. here's what's happening. the hunt on for an escaped murder suspect in florida. police say the 21-year-old jumped out of a jury box at the broward county courthouse and somehow managed to get out of the handcuffs, shackles and jump suit. running around in black shorts and a t-shirt. police are searching downtown ft. lauderdale. researchers say they have the first documented case of a woman infecting a man with the zika virus through unprotected sex in new york city. it was previously known to spread from men to women. zika can cause serious birth detects in babies.
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final arrangements are under way for the republican national convention. volunteers are inflating balloons. more than 100,000 balloons will drop on the convention floor when donald jump accepts the nomination. cnbc will be there. now for the cute photo of the day. get ready. take a close look. this is a baby squirrel snuggled up with a little of kittens. the owner says the mama is nursing the squirrel with the babies. i feel like we all needed that. that's your update for this hour. kelly and bill, back to you. >> show the little head with the other -- that one. >> i wonder how soon before they explain that he was adopted. >> well, you know. took him a long time to figure it out, too. >> i look forward to the story. >> yes. thank you. >> thank you, guys. all right. 26 minutes left in the trading session here on cnbc with the dow up 22 right now. a leading trader will tell us
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what he's watching into the close on the final trading day of the week coming up. later, herbalife shares are soaring. dealing a blow to one wall street titan and a boost to another. the latest on the herbalife saga coming up.
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dow up 20 points in record territory. s&p down a point. joining me on the floor of new york stock exchange is tim anderson of tjm investment. we have had quite a week for the markets here. what do you expect happens next week? what is the catalyst, do you think? >> it's fascinating to look at the funds flow data this weekend because it feels like there's been a big asset asset trade allocation going on. we have hit the low yield and everybody said the 10-year going to 1.25 and then going to 1. >> now we are back. right? >> now up above -- at 155. >> yeah. >> the germans issue a 10-year bundt at zero. it trades below for a while and
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now back up a little bit above and classic if that was a follow the herd peak bond moment and, you know, the stocks went through their all-time high. >> right. >> and haven't looked back. we have been up consistently now for 12, 13 days. and every other time -- >> are you willing to get in at this time? >> if money comes out of bonds, a positive thing, you have room in stocks and realize we are at a little bit of a revaluation moment. >> yeah. >> because managers seem to be much more willing to buy the market at pes approaching 20. >> especially those -- especially those cyclicals suffering so much. thank you. >> sure. >> kelly? the dow up again again about
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23. s&p down a point. nasdaq lower, too. chinese economy appears to be humming along and ken brown said that can be deceiving and will explain. donald trump said he would not hold a news conference to announce the vice president today deferring to the tragedy of nice and took to twitter announcing it anyway. what the trump choice of indiana governor mike pence means coming up.
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welcome back. china is back in focus. still shrinking private investment growth tells a different story about the chinese economy. joining us now is ken brown from "the wall street journal." welcome back. >> thank you. >> what are the investment
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figures telling us? >> broadly you have the government spending and all the things that everyone wanted to grow, services, private industry, shrinking or not spending as much. >> i mean, it is that transition of a production oriented economy and a consumer oriented economy. easier said than done. >> these numbers were scary because we have seen so the first half of the country china's grown based on a big boom in credit. the government is lending money and banks and we saw this time sort of a stop in not the lending, the lending kept going but spending by private businesses and also slow down in the service sector and the areas hoping and what you're looking at now is when's driving growth in china is government is building airports and government is building train lines and all this other stuff. it is not the recipe they need. >> supposed to move away from and highlighted a bankruptcy a couple of months back and yet even that firm is still kind of
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going and one of the zombie companies. is the shift happening at all and the growth is there? >> there are shifts and some of them driven by the government. a lot of them not and very slow and, you know, one step forward and two steps back. the debt is going higher and lending strong in the quarter and reforming the local government debt reforming more and not working. it is just everything you hope to keep going and everyone is banking on and the bulls are not happening and that's what get worrisome. >> what's the why part? do you think? >> it's hard with everything, hard to know and a businessman in china running a private business, it's been a one-way thought, which is to invest more and grow and in the biggest, second biggest economy in the world growing 10% a year and no-brainer. now they're not. the situation here is very different than china and that's
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what's making people worried. >> it's fascinating and seems to placate the markets for the time being but there's a sense of maybe it's putting them on the wrong track longer term. >> look. you can be cynical. read the reports in hong kong and china and everyone is bullish because their lives depend on china. when you really look at, you know, so for example, real estate kept things going and now you have super high prices in all the big cities. shanghai and in the east and a glut in the rest of the country. it just -- the things are not playing out and worked through and now you're seeing the private sector get nervous. >> you left asia but you're still focusing on it. >> it's important. what happens in china is super important. >> it is. good to see you. >> good to see you. >> ken brown joining us today. the dow climbed back to positive territory and just slightly. it is up 11 points. watching the s&p and the dow just to see if we can do the five days in a work week with
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five straight gains. we haven't done that in nearly 20 years. nasdaq down 5. our next guest says if the bull market has legs, three sectors outperform and he'll tell us what they are after the break.
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11 minutes left here now. we are wondering if the dow and the s&p close at all-time highs tod today. for the s&p, first time since 1998 every day of the week a new all-time high for the s&p. right now s&p down 2 points. however, art cashin pointed out that the market shows an imbalance to the buy side of $750 million. we'll see if that has an impact on the close. >> could be priced in. the dow up 22 a moment ago. a golden week we were calling it. we'll see if it happens. >> david nelson is joining us right now. >> thank you for having me. >> do you like this market? >> yeah. i mean, it is amazing how the conversation's changed a couple of weeks. we were staring in the abyss and the market at an all-time high or pushing to it and even the world index recovered all the losses from brexit. i actually think that in the
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long run, brexit might prove to be a positive catalyst. certainly a wake-up for the eu and the european union as a whole. europe as a whole. maybe they'll make some needed changes. i like what i see. >> does that mean we should stand all conventional wisdom on head? we were told and warned and presidents to companies to -- you name it, telling us brexit can't happen and will be a disaster. >> price is truth and the market hit an all-time high. you know, price performance often leads fundamentals. maybe the stocks trying to tell us something here. we have had a decent start to earnings right now. i'm not sure how good this quert's going to be and oil in the mid-40s, it is good for the sect sector. >> we mentioned before the break you see three sectors that have bull market has legs leads the way. what are they? >> can't have a bull market without tech and a name belike there is broadcomm. reduced exposure to apple which
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i mike. defense sector is still a theme for us and, you know, the sad outcome that occurred in france reminds us how much money we'll have to invest in the military. the south china seas, build-up of military assets there, defense is a winner, for sure. >> defense. you think defense would be a sector to lead us higher. not cyclical per se and strength could be one -- >> it's a sector dynamic for a lot of years and doesn't matter hillary or donald trump in the white house. defense spending is going higher. >> all right. thank you, david. >> thank you. >> good to see you. thank you. yes? that would be david nelson of bellpoint asset management. heading to the close, the dow up 8 points and waiting to see if the 750 million -- oh, that's what we're waiting for. where were you? >> in honor of your 21st birthday, present you with the cake. >> is this -- >> this is to cut up the fake
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i.d. >> are you ready? >> happy birthday to donna back home, too. ♪ happy birthday to you ♪ happy birthday to you ♪ happy birthday dear kelly >> i'm afraid he'll slide off. "happy birthday to you ♪ >> thank you so much. happy birthday to kayla. it's a cluster. he's got one coming up soon, too. >> as a matter of fact. >> i have a wish. >> there you go. you can't say what it is, though. >> thank you so much. thank you. here i wanted a coca-cola. i had a cake coming. >> yes, you did. happy birthday on sunday. >> should i tease herbalife here? >> why not? we have the closing countdown in just a moment and something about herbalife coming up, as well. >> i get started on the cake, we'll tell you about the settlement talks with the ftc. "closing bell" will be right back. you both have a
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all right. we got, what? little less than four minutes left with the dow up 8 points. s&p down 2 1/2. let's review the week. s&p for the week, wondering if it's possible to have five consecutive days and one week where the s&p hits a record high. not yet. i mean, we did four monday
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through thursday but it's not happening right now. we'll keep an eye on that. for the dow, four, looks like four consecutive record highs there. tuesday through friday. for the industrial average. welcome at the 10-year, bob. 136. we began the week. we are going out at 158 now. so 22 basis-point gain on the 10-year just in 5 days. >> what is no one prepared for right now? that is whiffs of inflation out there. that's one trade nobody's prepared for so i predict that if there's any problems in the next couple of months that's where it might show up. i'd be surprised. nobody's positioned for this. >> a catalyst for the rally in week began in tokyo after the parliamentary elections there in favor of prime minister abe and the nikkei for the week had a pretty good week. up 9%? >> yep. >> and up a fraction overnight to 16,497. the yen meanwhile, so strong and
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had been coming -- safe haven down 5% this week against the dollar. there you go. that's the one i was after. down 4.6% there. >> very confusing. dollar/yen. yen/dollar there. >> a pretty good week here, right? >> yeah. we were just looking at it. doesn't get much better than this. everyone, including myself, worried about not beat but benign on bres it and the loan growth decent. jamie dimond was positive. economic numbers, industrial production, better than expected overall and even the ipo market. remember that? showing some signs of life. this is as goldilocks as it gets. we we'll see with the industrial names, intel, but given what the
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banks said, my heavens. we would have a very nice rally continuing if those big tech names made similarly benign comments. what everyone is worried about is the second half. everyone thought the banks imply to take down the earnings numbers and they didn't do it and didn't take the bait and why the market's been holding up so well overall. >> through all of this, still tremendous amount of skepticism, especially among individual investors loathe to put money back into this market at this point. right? >> you heard about still big outflows of money from europe. which may or may not be the right time to buy. i have no idea. whether it is. we can see people pulling money out. bringing money back into the united states. that's probably not a bad place and so it's off the new high and we have said that skepticism is the market's best friend. >> thank you, robert. have a good weekend. so we'll have a record for the dow.
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doesn't look like for the s&p unless they can pull one buy program off at the last moment. advan advanc advanced foods at the dow. prep for prep at the nasdaq. second hour with the birthday girl herself kelly evans and company. have a good weekend, kelly. >> thank you, bill. welcome, everybody here's how we're finishing the day on wall street. dow gaining 7. s&p watching to close positive. hasn't done in nearly 20 years. proving how difficult the feata. the nasdaq down about 4. how executive compensation could be hurting shareholders. details on research coming up. joining we have senior markets commentator and columnist mike
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santoli here and kevin newmark. welcome to you guys and david seeburg, too. thank you. mike, you know, a couple of different ways going here, i guess the dow is positive. the others negative. the transports by the way dropped 30 points. dollar significantly stronger today. >> it was. today was a rest and things that maybe looked overheated after the four days of rally backed off a little bit. i don't think anybody should be all that concerned and the chatter right now is market too overbought, the short-term traders gotten too giddy. ready for a backtracking? maybe so. it would be a logical place and with the exception of that real curiosity. i think everything else in terms of the breadth and strength of the rally is respected. but again, it was the no-growth sectors leading today. >> right. >> yields even though they were higher were not high enough to get into the dividend trade. >> i don't know if we show the
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dividend board but -- consumer discretionary hurt and the retail sales number lower. i don't know if that was priced in. >> it comes back to can the financials go up unless you see a real bump-up in yields. and yields really did back up this week. i mean, they're -- i think the 10-year up around 160. just under it i think it closed. 30-year around 230 and down in 210 at the end of last week and big moves in yields. the question is whether there's follow through. >> her's what dickbovet would say they're making a ton of money, doing business as well as they can, you know? interest rates be what they may. >> i think, you know, i think overall it's hard to imagine the financials doing very, very well did f you dent get the 10-year
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back to 2%. >> they are doing what they can. jpmorgan with expenses and earnings are down year over year. and even though they did better than expected, they're making lemonade out of lemons. >> economic numbers over the last couple of weeks have been good. >> right. >> there's -- you look at the bond market. it's predicting recession. it's not really. it's the bond yields overseas causing the low u.s. bond yields and overall economic picture is better than people expecting. i don't think that means it's -- >> to your point, yields creeping higher. >> they're much, much lower than they were at the start of the year. not even close. >> i look at where they were before the brexit vote. right? around 1.7 on the 10-year. maybe lower than that. so that whole move from 165 over 170 down to 135 was this real buying panic in treasuries. until you undo that -- >> i think my one -- biggest
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mistake for investors to the viewers out there is whatever you do, don't chase performance here. i think that's probably the real danger because you have seen such a bull market in long dated treasuries this year and you have seen such a bull market in utilities and some of the consumer staples that if people go this week and look at the funds and year to date and doing so well and pouring money into them, that could be the one mistake to make right now. >> david, would you echo that? >> i agree with that. my perspective is we have seen a big move in a lot of different sectors. do not chase. do not chase. i look and say there's certain sectors to keep an eye on. names, cyclical, cheap. you look at the airlines and the banks you were talking about. those are, you know, really vehicles right now for trading. i look at the banks in particular. seeing movement in the banks. by the quantitative funds that taken control of the market. hedge funds lost control.
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passive funds have control. you see a lot more volatility in sectors and the fundamentals don't jive with the way the stocks are trading and saw that in the financials and look and say trading vehicle and the airlines were beaten down. that was a sector i looked at buying in and established positions and we did and have more runway to go and energy, i don't know that i jump in here and stay away from that. everything else looks toppy. >> all right. let's get down to bob pisani to recap the week that was. historic one. >> you didn't think the historic highs this week. i didn't. take a look. that's essentially what happened here and led by groups that people didn't expect to hit new highs. steel hit new highs. bank stocks with a great high. and of course the sector leadership group, utilities, telecom, on the downside overall. doesn't get more bullish in a way than this. so look. historic highs on the s&p.
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bank earnings beating. economic data like retail sales improving. ipo market showing signs of life. overall, it was an excellent week. next week, i want to hear from big tech names, companies like microsoft which gets significant amount of revenues overseas and in china and intel and handset sales overseas and get a significant part of the sales outside of the united states. general electric finally, that's reporting on friday. they get about 55% of their sales outside of the united states. guys, if those companies come out and give relatively benign expectations for the second half of the year as the banks have done, i think then we certainly have more room to go in the rally. have a good weekend. >> bob, you too. thank you so much. you've been making that point. watch the industrial figures numbers. not like manufacturing was great. >> the market is kind of gotten ahead of this. people were talking industrial
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recession until recently. it's been an outperformer since the lows of january. so yes. that's where you look and also flagging the persistence underperformance or blah performance of consumer discretionary and mixed signals in the market but i think industrials are one thing to look at. also next week, the consumer finance stocks. capital one. all of them. similarly underperformed and the stocks and should be in good shape. >> a guest said you can't get a big rally without tech. it's been a big driver this week. bertha coombs has more at the nasdaq. bertha? >> here at the nasdaq, brought the composite above 5,000. closing above there for the first time this year. on a weekly basis. four straight days above that level. still shy of the all-time high. however. and the real standout sector is the chip sector. that's what's really driving things in tech.
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the index of a new high this week. best stock performance year to date is nvidia. hitting all-time highs this week and downgraded today at wells fargo. can't blame investors were wanting to take profits there. and the big question next week is, can these tech companies deliver on earnings? we'll hear from netflix on monday. they also have international exposure in terms of where they're expanding. but the real question is can they deliver on their top line? a lot of disappointment in the first quarter. from big names like google, like apple. we'll see whether they can deliver and continue to move the momentum forward coming to tech. overall, tech earnings down about 5% this quarter. health care is one sector that is expected one of three that's expected to positive earnings growth. bio techs on watch.
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bio techs flat for the week and among the best performers. such a long way to go to regain bullish sentiment. back to you. >> yeah. we saw a little bit more life there today. thank you. >> happy birthday, by did way. >> thank you! not until sunday but i'm going to take it all in. >> make it a weekend. >> pokemon cake. exactly. >> i'm excited about the cake. >> i know. sitting over there. looking at it. >> i know. >> bio techs. we talked about this at the highs. >> i was like don't go near them and turned out to be right. >> you've made a lot of great calls. >> some bad ones. some okay ones. look. i think -- i think -- i don't -- i don't think that's going to be the thing that takes this market forward. you could see a bounce in bio techs but i really think it's going to still continue to be around. what the german bundt is going and bank of japan rather than
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that bio tech company had a great quarter. >> not to be silly but pokemon go is a success. marrying the idea of augmented reality with, you know, getting people out of their homes, walking miles and miles a day. i mean, sure it's one of the things where it's exciting for a week and may go away a little bit, mike, but is that enough to get people excited about a new sector and lift the market more broadly? >> people are excited about the speed with which one of the phenomenon can become an economic phenomenon. right? caught everybody but surprise. blindsided by the mass app download. who does it take from? gives and takes. >> yes. >> i think the people talking about the fact that time spent on other apps has to come from somewhere. >> remember candy crush? king? does that company exist? >> acquired. >> the things, i don't want to
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say it's a flash in the pan because it will be a flash in the pan of three years, but you just -- you know? bewa beware. has appeal of you millennial types but we older people -- >> david, what do you think? >> look. go ahead. >> go ahead. >> look. i say mall traffic is different than spending. right? look. i think it's an interesting technology. i think the near term impact on a lot of consumer companies, we had a report yesterday. i do believe there's long-term obviously positives to go along with this and coming off another platform and i believe that's probably the biggest risk. you look at the other platforms out there and say what's at the biggest risk and there's a negative call about facebook. it was a negative tweet of some sort. i look at it and say i don't think facebook is the one, however, to see really impancte in a negative way. they execute on all cylinders.
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really monetizing and executing really across all platforms and that's a stock that i would stick with. >> reminds me of almost flipping through the channels and have the broadcast behemoths and probably the cable channels on the margin all it rations of each other and a hit show on one of them or oprah in the mix probably steals from one of the other ones of those and not the min. >> looking at netflix an you're saying from the standpoint of netflix and earnings on monday, all about subs and the way they can get and maintain subscriber growth. for that stock to work, they need to put it up. that's in question. right? >> we'll see. >> they're teetering on a razor. we have the olympics and a presidential election coming up. it keeps eyeballs on different than original content or themed shows so that could actually impact subscriber growth talking about something changing up there. >> all right. we'll find out from netflix next
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week and like the original programming that beats all. live content. bye, david v. a great weekend. thank you for joining us. catch "fast money" crew next weir. something that's happening in the market that hasn't in more than two decades. find out what that is at 5:00 p.m. the bulls are in charge on wall street this week. the dow, s&p setting new highs. up next, two stock pickers with us to tell us if you should keep riding the big performers irks ji a m. a major victory for herbalife. we'll discuss whether aikman can recover from this loss. americans are buying more and more of everything online. and so many businesses rely on the united states postal service to get it there.
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welcome back. the dow did close at a record high today. closed about 18,516. and it was a big week for the major averages. s&p also hit a record high earlier today. so where can you still find value in the market? let's ask david pearl who joins us here at post9 and tony share. guys, so david, first to you,
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are you still finding attractive opportunities out there? >> yeah. we have seen the market go to a high and there's been a bifurcation which, you know, consumer staples all-time highs, big premiums to the market. economically sensitive stocks are all at discounts so technology and so there's stocks making a lot of money at really low valuations that are attractive. >> a couple of examples? >> yeah, so gilead pharmaceuticals, one of the cheapest stocks in the market, seven times earnings, seven times free cash flow. it's basically saying that revenues are going to decline and go out of business at seven times. and they're generating 17 billion of cash, 15 in the bank. so they're getting no credit for that cash and gilead built on acquisitions and one of the reasons you own it is management will buy some more companies and drugs. they have the leading hepatit
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hepatitis-c drug. cost down to users 50% and expands the market and they have a new version of the drug that applies to people who couldn't use before. and they have 90% market share so i think it's really undervalued. >> we'll come back to boeing and apple in a second. tony, say what you think is attractive here. >> oh, well we agree. we like areas of the market underloved. we're contrarians by nature and looking for very high quality. we thought the jpmorgan report you saw this week stellar, very good thing. kind of on all fronts and we like to see insider buying and jamie dimond tipped his hand of $27 of his stock and we don't think he'd do that until there's a bright future ahead of a runway ahead of them.
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we like that name quite a bit and ebay and nvr. >> ebay, why? >> ebay, you know, is we think a diamond in the rough and always gets compared against amazon. we think the two can coexist together. ebay is working on profits and cash flow and working on a great business model opposed to top line revenue and a couple-year period of a turnaround process and starting to see good sign that is it's working and opportunity ahead for them. we love the cash flow it generates. >> mike? >> david, in addition to gilead, you like apple. two of the most profitable mega cap stocks in the market with depressed multiples. why don't you think the market is telling us something about the trajectory of the businesses over time? >> i think the market is short term in nature. we are long term investors. >> the market at 18 times. so it is not short term about the whole market. >> procter and gamble trying to
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find a new growth engine or apple and you have to wait a year for the next really big iphone cycle? and the two issues of apple is used to get a new phone every two years and now probably three years and in china a big bollous of users and waiting for the next super cool iphone. curved screen. so you have to be longer than the next three, six months. >> evan? >> i have a question for both of you guys. not to pick on you but given the let's call it very poor performance of active fund managers and stock pickers, it's been definitely a good half dozen years and this year's no exception, why is it people should listen to active stock pickers? >> well, you know, it is a pendulum. the best time to be an active stock picker when everyone thinks i should just index the
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market because there's inefficiencies and getting to that point where the money is. correlations have been really tight meaning it all goes up or down the same day. we had three corrections this year. people get out in one trade and sell the etf. they sell the whole market at the same time. there are opportunities but you really have to have a longer perspective. >> you are not picking unknown stocks. you are talking about apple, gilead. talking about large measure proxies for the market, aren't you? >> just shows you it is human nature. people want immediate gratification. this happened to apple in 2014. went down 40%. that year before the big new iphone. it's happened before. we have actually owned apple for ten years. >> tony, just make it real quick. >> it's a great question. most active managers are just far too active and trade far too much which increases the fees inside of the mutual funds themselves, number one.
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number two, most managers considered active today don't actually take much of a bet against the benchmark and we feel like you have to do that to be able to beat the benchmark. >> thank you guys. appreciate it. breaking news out of turkey. susan lee with more on what's -- >> reporter: unconfirmed reports but let's show you what's happening with the currency. dollar strengthening. bonds are moving at this point. unconfirmed reports of military action in the capital of ankara. we have the prime minister speaking on local broadcaster saying that a group within the military has engaged in an attempted coup. again, we don't have a confirmation and we are just getting information as we get it here but that's the latest. back the you, kelly. >> we'll speak with former ambassador burns in a moment. add it to the things to pick his mind about, i guess. any thoughts real quick before
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we go? early, unconfirmed. >> market's going to sit back on this and not necessarily price in too much detail. it is the prime minister himself saying it was a faction put down and seems as if there's some tactical calculationless here. >> good thing it's friday after the close. >> wouldn't have helped in the market today. that's for sure. up next, heading live to nice, france, on the attack and what about the man behind the horrible act. later, discuss whether the event could put terror next month next week in cleveland. we are back in a moment. hi daddy! gain the freedom to fumble with the new water and shatter-resistant samsung galaxy s7 active. buy one now and get the samsung gear s2 for free. exclusively at at&t.
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two americans among more than 80 dead in yesterday's attack in nice, france. hadley gamble rejoins us with the latest. hadley? >> reporter: hey, kelly. so at least two americans shawn and brodie copeland father and son killed last night here on the promenade and notice that they're already beginning to open up the street once again. we understand it could be open as soon as a few hours from now and we can smell the strong chemical odor coming from this area. they have been cleaning all day. this, of course, is the scene of that crime that happened last night here in nice. 84 people were killed. dozens of them children. over 200 people injured as well. many of them critically. of course, french authorities through the day today updating all of us in terms of what they found out about the suspect himself and seems he may have
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been a lone wolf. they have as yet not found any evidence that he was working with any known terror group or terror group claimed any responsibility for this but world leaders including french president and president obama himself were quick to put this down to terrorists. take a listen to what president obama said earlier today. >> we will not be deterred. we will not relent. we're going to keep working together to prevent attacks and defend our home laland, taking isil leaders and pushing isil back in sir why and iraq and standing with our partners from africa to afghanistan and we are going to destroy this vile, terrorist organization. >> reporter: so president obama there saying that they would not be deterred but it's interesting, of course, we have heard throughout the day the world leaders and tying it back to syria and iraq and the french prosecutor said there's no evidence as of yet what happened here last night in nice, horrific attack, anything other than a lone wolf attack and
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bigger question for france and every other country and the united states is a hard look at the intelligence services because apparently the attacker not on a known watch list, the u.s. or here in france and also not known to intelligence services and something a bit new this this sort of new age of terror. guys? >> all right. hadley, thank you. that's hadley gamble in nice. for more on this, we're joined by nicholas burns. appreciate you join us. just hoping you can provide some thoughts on this scale and the approach we witnessed last night. >> right. this is the third major terrorist attack in france in a year and a half. and obviously, what a tragedy this was. obviously it means all of us in western countries have to ban together and through intelligence cooperation, through judicial cooperation and military action to defeat the
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islamic state and to defeat people who act in the name of the islamic state. the french not as your correspondent said determined what motivated this man to commit this horrific act of terror. but it's clear that the islamic state itself is encouraging lone wolves, encouraging people, perhaps even people without prior records of terrorist activity to take matters into their own hands. and the defeat of the islamic state ultimately is defeat and may take many years and goes a long way to disabusing the young people that this is the course of action to take with their lives. but it's extremely difficult to defend against and so i think some criticism of the french i think not well placed because how do you defend against so many hundreds of thousands of people in the case of france young men from north africa who are either visitors in france or new it have sevens of the french
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republic? >> sure. ev evan? >> is there any way that suicide attacks can really be dealt with, especially if they're done in a lone wolf manner? part of that is, can politicians be honest with people with their public that really there may not be any solution no matter how much money you spend and try to do in the case where somebody's willing to kill themselves? >> well, i think that president obama has been honest with the american public and i admire him for doing that. what he is saying is listening to him over the last few years is this is a long battle against terrorism. it is not going to be won in the next week or two or three and it requires a patient long-term struggle to defeat the terrorist groups that are taking the fight to all of our countries, but especially the european countries over the last few years and that we have to ban together. the military is part of the answer. but not the whole answer. there has to be judicial and
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intelligence cooperation. we have to work on creating healthy societies. and i think contrast president obama's statements which i think is very good today with what donald trump and newt gingrich is saying and the suggestions of a religious means test and keep people out of the united states because they're muslim or they believe in sharia law in the case of newt gingrich, this is completely the wrong way to go and gives a advantage to the islamic state. it's also un-american and anti-democratic so we have got to be smart here in this country as well as in the european countries about how we react to this. >> people understandably alarmed and looking for somebody to understand that anger and that fear. there's more to ask you about that. but just now we are getting reports and hope to ask you while you're with us, it looks like turkey's prime minister has said on national television that elements of the army have attempted to seize power in the country and that that effort won't be permitted to succeed.
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apparently the rumors of a coup swirling in a couple of months now. the economy's been doing pretty poorly. the currency is declining. erdogan consolidated power. are there parallels to egypt? how serious do you think this coup is today and where's turkish politics headed? >> well, we know very little about it. we know what the prime minister said to a local news agency and the there's been a long period of distrust between some in the turkish military and the erdogan military. they see themselves as a secular version of islam back to the founder of the modern state in the 1920s. president erdogan brought it into the center of life.
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may be a cause of this and we don't know. that's speculation on my part but there have been not good relations and the presidency also jailed many generals. so while we don't know the origins of this, obviously one can only hope for peace on the streets of ankara. turkey suffered a terrorist attacks over the last several months. >> yeah. their security situation is also deteriorated. all right. thank you again for joining us. that's former ambassador nicholas burns this afternoon. >> thank you. time now for a news update with courtney. >> hi there, kelly. after 13 years, congress released a classified section of the official report on the september 11th attacks on the world trade center in new york city. the 28 pages bring up potential links between some of the hijackers and saudi arabia. but the links were not independently verified. nearly 3,000 people died in those attacks. the justice department will review the response of the
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orlando police following last month's deadly attack at the pulse nightclub. the orlando police chief requested the review after the department faced questions about the timing of the s.w.a.t. team response the night of the shooting. 49 people were killed at the club. hillary clinton is reportedly holding meetings in the search for a runsmate. massachusetts senator warren seen in a war leaving the clinton home this afternoon. it's the second private meeting between the two since clinton clinched the nomination last month. bp issued the final estimate for the cleanup of the 2010 oil spill in the gulf of mexico. get ready for this one. $61.1 billion. it's the largest spill in u.s. history. the well leaked for 87 days pouring 3 million barrels of crude oil into the gulf. that's the news update for this hour. back to you. >> thank you. herbalife shares today soaring. the ftc said it wasn't a pyramid scheme and will have to prove the business model is legitimate
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more details on the reports of a military action in turkey. chief international correspondent is on the line. michelle, what can you tell us
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this hour? >> you have as many details as i do but if this is a coup, kelly, another incredible geopolitical event of the dramatic sort we seem of the seen and ambassador highlighted this, which is the current leader of turkey erdogan has embraced a much more islamicist form of government and military there and always -- much more secular version of islam. so that there would be tension between the two is not surprising. i think what we wait to see is what happens on the streets. you remember the protests in 2014 which presumably started out about protests related to the environment. organization -- inner cities and getting rid of parks and -- much more autocratic. >> michelle, we dropped you for
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a second there and want to make sure we have the connection. there's reports that turkey shut down key bridges to the main city. that jets are flying overhead over ankara there and we are looking at images of turkish television of tanks and what appear to be the city center. so, something of significance has clearly happened. both sides are claiming -- i don't want to say victim ri but that they're in control of events. all right. that connection dropped. >> i'll tell you one thing. i was in the middle of an attempted coup before back in moscow. in 1993 when the white house got shelled. boris yeltsin with a stand at the parliament an tanks in the street right by where we lived and you don't know what the story is until, you know, at least 12 to 24 hours later. so these things, these things have this kind of -- this running narrative.
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doesn't just happen and settled. >> michelle, are you back with us? go ahead. i was going to say in response to evan, too, that this thing might be unfolding as we speak. >> yes. for sure. i would highlight significant of europe following reason. turkeyality the center of trying to slow and stop the flow of migrants and made a deal to prevent that. to the degree of instability raises questions of the policy of europe which has been at the core of the issues of the continent faced. >> turkey also faces a number of allegation this is it's been cracking down on freedoms, of course. for citizens in the country. mike, they have taken an extremely hard line of the kurds in their country. the conflict in syria being one reason why all of a sudden the kurds helping to try to address issues in iraq are now the very same trying to push for independence in turkey.
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so whether it's them or the islamic state that's been responsible for some tragic and significant bombings there, it's clear that there's enough perhaps, you know, fear and anxiety among the population to perms be supportive of something like this. >> the regime under stress from directions and of course the public. i would wonder, michelle, there's a way of making the calculation of the u.s. posture is of something like this and where the administration think the interest of the united states lies with this regime? >> that's the question to try to answer before they say anything. in theory there would be behind the concept of democracy and same time erdogan is a problematic ally and i think we wait to see what they're going to say. he's -- you highlighted, kelly, why he's been so problematic in certain ways and autocratic over time. restricting press freedoms. large levels of incarceration.
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the round of protests in 2014 spoke to what was a lot of discontent related to erdogan and what is in the u.s. public foreign interest and we wait to see what they say. >> a couple of months ago the u.s. accused of some in turkey foment the change of power we're discussing for here for that reason. when we come back right back, we'll of course bring everybody up to speed on what's happening in turkey at this hour. stay with us. smart devices are up. cloud is up. analytics is up. seems like everything is up except your budget. introducing comcast business enterprise solutions. with a different kind of network that delivers the bandwidth you need without the high cost. because you can't build the business of tomorrow on the network of yesterday.
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welcome back. we are following events in turkey at this hour of conflicting reports about military action in the capital. let's bring in the turkey bureau chief for ntv on the phone and it was ntv where the prime minister said there was an attempted coup that they had control, though. can you confirm what exactly is going on? >> so 21:00 central european time and there was a first two airplanes fire -- fighting f-16 who flies low altitude above the turkish grand assembly. the turkish parliament and then there were helicopters above
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ankara, the capital, above the building where the chief of defense is and, again, above the parliamentary assembly. and then the army shot in istanbul the bridge, the first and the second bridge and particularly the section between asia to europe so crossing from asia to europe is closed by the army and then m-16 tanks, armored vehicle and tanks, went to the airport in istanbul, the international airport where a few weeks ago terrorists attack took place and ankara. and now the city center in the capital ankara is totally closed and also attempt to take control of the -- over the turkish public broadcasting company and the turkish prime minister stated on our xachannel that it was an attempt of coup and done
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by senior military officials in an illegal manner and outside of the chain of command. however, while we're talking now with you, the chief of defense released a press release saying that it was a form eer coup det and that they were trying to take the control of the country totally. so this is where we are now. >> okay. >> and the military controlling some cities and some part of some cities, but yet, they do not have the control, total control of the country. >> okay. let me make sure piece by piece we have the facts straight. so there was an attempted coup in turkey by the military that you're seeing was partly successful so the turkish military at least has control in part of the capital city?
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is that right? >> yes, indeed. it's right to have control partly of the capital city ankara. and they have also control of the airports. and there's no more landing at istanbul in the tlal airport or ankara nor in other airports and shutting down one by one the airports and in front heavy armored vehicle and tanks deployed and not only in the airport but also in the strategic part of the cities. mainly istanbul and ankara so far. >> this is unfolding. evan, do you have a question? >> yes. what do you think -- i'm asking you to speculate a little bit. but what do you believe in the cities, in istanbul and in ankara, would the reception of most of the population be towards the military? do they lean more pro military or lean more to supporting erdogan and the current
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government? >> actually, it depends on the neighborhood, particularly in istanbul. but so far what when we see the pictures and the militaries who are saying that -- to the citizens because citizens are questioning what's going on? is it an exercise, a drill? or is it, you know, fight against terrorism operation. and the media are saying that they're taking control over the country. and that it's a military coup. and yet, so far, there isn't -- it's -- let's say it's welcomed or please. there isn't yet a bad reaction and more in the european neighborhood and european areas. of course, in places where president erdogan and also our more conservative are living, we have to see, we have to see what will be the reaction. but so far, this is -- it's at
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least what we have seen on tv, cameras and the exchange we have with friends is that there is worry, there is a concern. but yet, where the military are deployed they're welcomed by the population so far. >> briefly, do you expect that the government will now be in a position to effectively negotiate to handle power or will this power escalate? >> i think that president ird wan and the turkish prime minister will not give the power to the military and the thing i'm worried there might be a power struggle and that there will be p a battle between the police officers, which are very close to the vovt and the militaries. >> all right, thank you. we just want to get more from our headquarters. susan lee has more. >> let me get you updated on the market moves.
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we have the u.s. dollar extending gains against the lira. looks like people are buying into safety. a rotation in with a move on the ten-year. down to close to 155 or so. 30-year has moved significantly in the past hour. and again, these are unconfirmed reports of military action taking place in the turkish ank. saying that military has taken over. the turkish military says they have taken over for democratic order. human rights to remain. the turkish military saying all existing foreign relations will continue. the white house is saying they are currently monitoring the events underway in turkey. back to you. >> thank you. >> we're going to deep following the story in turkey. meanwhile, donald trump has selected indiana governor mike pence as his running mate. just three days to go until the
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republican national con veng, we'll discuss what it means for his campaign.
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we're following more headlines this hour out of turkey, where the military says and source just confirmed they have taken control of part of the city. >> the travel situation out of turkey airport, the large nest turkey. looks like all gates are closed at this point. this this is coming straight from the editor airport website. it's unclear whether the flights headed towards istanbul will be able to land. again, these are unconfirmed reports of military action underway in the push irk capital. the latest that we have. back to you. >> thank you. we poke just a moment ago with ntb turkey's bureau chief.
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>> very, very insightful. he was reporting to us that essentially, the military had taken control of sounded like certainly part of istanbul, which is not the capital of turkey, the largest city in turkey. and ankara, which is the capital. and he was suggesting that based on reports from his friends, that there was a degree of control being exerted by the military in those places. but that he was sort of still in the dark as to what the consequences of all this were going to be. >> and what everybody's going to be watching for, fearing further conflict, potentially between the police. >> right, so become some kind of negotiated, prison and we have some kind of a settlement or by the way, it's about midnight there, so it's hard to say exactly how much more is going to be determined throughout the night. >> looking at live image, we'll continue to bring them to you.
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we'll take a quick break, come back and tell you what we know in turkey at this hour. 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,
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yet many people still build portfolios with strategies that just track the benchmarks. but investing isn't about achieving average. it's about achieving goals. and invesco believes doing that today requires the art and expertise of high-conviction investing. translation? it's time to bench the benchmarks. welcome back. as we try to keep you up to speed on what's happening in
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turkey, reports of a military confrontation were quickly confirmed as the push irk military attempting and being successful in part at staging a coup. the president, he's consolidated power while he has been in office. has reintegrated some as pechts of islamism into his administration and between that, between security situation, they've had horrible blom bottomings from the islamic state. there's concerns about the kurds and any case, the crackdown has been going on for quite some time. apparently, rumors of a potential coup has been circulating for some time. but the latest we know in some of the cities, there has been some ability by the military to take roll. >> and clearly, some strategic locations controlled by the mill tarik they've put a a statement out saying they are in control and it remains to be seen what the president can do. if he has anybody on his side. >> tell people to stay tuned. these things take hours.
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my guess is there will be some resolution by the end of the weekend, but you don't know who has who on which channel on whose side. these things are very messy very quickly. >> looking for this to be like morsi with power in egypt, but we'll continue to follow it here on "closing bell." time for "fast money." "fast money" starts now with breaking news. you are looking at live images out of turkey where there's a presumed military coup. the prime minister binali yildirim says his government is in charge, but the military says thaer in control. this is having impagts on the markets. gold is higher. lira is sinking against the u.s. dollar. let's talk about this because clearly, the flight to safety is back on. it just took another event like this to snap us

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