tv Closing Bell CNBC August 3, 2017 3:00pm-5:00pm EDT
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>> seema thank you. >> that's amazing. >> very nice. >> there you go. it's a fad thanks for watching "power lunch. he does not relinquish the can >> "closing bell" starts right now. >> i'm channeling kathie lee and hoda here. >> too late for that >> hi, everybody welcome to "closing bell" today. i'm kelly evans here at the new york stock exchange. >> i'm scott wapner in for bill griffeth the dow is trying to hang on as it tries to extend its winning streak to an eighth straight day and post its record seventh straight close. >> didn't realize we were on that kind of streak. talked about 22k and see if we can close above that aetna one of the winners after they beat estimates and a stunning announcement regarding the affordable care act. how the bottom line and fateof
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prospects for health care reform factor into his decision. >> another huge hour of earnings reports due out after the bell we'll have the instant analysis and debate on whether you should bay or sell shares of viacom before it reports. >> yeah. we've got viacom, gopro, etsy, western union. >> another big day. >> another record close and whether president trump should be getting credit for this rally. bob pisani. >> reporter: it was the biggest thing on the streak. can the president really claim credit for the answer and the answer is partly yes look at bank stocks. everyone wanted regulatory relief in bank stocks. when president trump right at that election, bank stocks rallied 30% in less than a month. that's clearly hopes for regulatory relief, and they haven't done too much this year elsewhere. take a look at industrials, infrastructure spending and regulatory relief. that was a big part of the industrial rally loo being at that, right after the election, up 9%, 10% and
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industrials up another 9%. there's obviously something else going on besides the trump rally. take a look at technology stocks interestingly they barely fudged right after the president was elected in november, but they have been up 28% this year and the reason, of course, is because a number of companies have had outsized earnings and revenue gains, and that's the clear gainer in this year to the s&p 500. look at this earnings up 50% in the first quarter. now, earnings are up nearly 12% in the second quarter. not done yet third quarter 27% and typically droop in the middle of a quarter. that goes 9% or 10% by the end of this particular quarter stocks trade off a future earnings prospect and that's been the key the global economic growth and earnings prospect. here's a better question to ask everyone what if the president tweeted tomorrow we'll not see tax cuts. not happening, exclamation point. what would happen? i did my informal survey, the
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range, stocks would drop 5% to 10% and some people said even more than that i think that's a reasonable expectation so let's give the president a partial credit guys, back to you. >> bob, thanks so much so, how can investors sitting on the sidelines get into this rall joining us now with more is jason ware from albion financial and andy kaplan from regional atlantic guys, good to have you art cashin is joining in this conversation as well. >> he'll come in a moment. let's get some stock picks first. >> i was going to go to the legend but with all due respect we'll wait just a second jason, what's up with the rally? hit 22,000 we take some deep breaths and then continue to try to march ahead. >> yeah. we're still generally bullish on this market. if you look at real interest rates they remain low and valuations are not excessive inflation is tame. earnings in the economy continue to expand and indeed the global economy has picked up, and in as much as the administration would like to take credit and certainly bob pisani is giving them a little bit of credit as
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well, you know, our view is this is an earnings-driven market and it will continue to be an earnings driven market until there's something fundamentally that changes that. so dow 22,000 is a headline milestone, but our counsel to clients is to kind of ignore that noise this 4.7% move from dow 21k to 22k is no more significant than any other 4.7% move and stay the course and stick with an appropriate strategy and investment allocation. >> i want to get to everybody's picks here andy, let's start with you you have a couple of names that you think will do well as we march ahead from here. citigroup is one of them what are some of the others. >> another is intel and another is fedex very different names and really owning them for very different reasons. i love city because it's very different from all the other major banks in two major ways. it's a lot cheaper and the other it's getting a lot more revenue and earnings from abroad, especially in the emerging markets. what you're seeing this year is a big turnaround in sentiment and big turnaround in performance in the major
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emerging markets, like china, like mexico and brazil even though there were some worries with the mexican peso as a result of the trump administration really hasn't materialized would i bet fedex makes more money off amazon's work. amazon didn't even break a profit fedex is still delivering packages to a door at a price that get them a net return at the end of the day so there's a better way to play e-commerce. >> jason, he mentioned -- andy mentioned amazon is this going to continue to be dance with who brung you market. do you say with the so-called fangs? >> there's a lot of suck lar growth with the fang names and the majority of them are high quality. with the exception of -- we don't own netflix. i think netflix is still a good company and it's really highly valued in terms of valuation i think facebook is a secular growth in the digital ad market and alphabet, otherwise known as google, is still a secular
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growth name as well, and i think you can stick with those names apple had a great quarter and these are stocks undervalued trading around a peg of one or a little bit over and if you look at what you're trading on that growth, a pretty cogent argument to be made you can stick with those names. >> you like the fang names and i see home dew point, thor and visa. >> visea is an asset-like technology company that gets associated with a financial stock all too much of course, it's on billions of credit cards and debit cards so i understand the temptation to associate them as a financial. this is a company a little over a peg of one that has a huge economic mo electric moat. they have a monster quarter. home depot is benefiting from a tight housing trend and people look out there and say there's no new homes to buy unless i want to pay up so i think i'll stay where i'm at and upgrade my existing home and thor is
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benefiting from a bull market in recreational vehicles and a stock not talked about too often. boy, they have had a fantastic growth in what's been a quite secular and cyclical growth. they are the leader in that category. >> guys, thank you so much jason ware and andy kapran. >> shall we get to our closing pebble exchange? >> art cashin and michael block from trading partners and our own rick santelli who checks in from the cme i'll let you start off with scotty. >> arthur, had your hat on 22,000, everybody is feeling good now what seasonally it could be a tough period august hasn't always been great for investors, but what do you think is going to happen >> i think we'll have to look and probably consolidate a little bit here. august is the second toughest month followed by the toughest month which is september, and --
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and years ending in a seven have a little bit of a history forming minor tops in the month of august so we'll take a look at that. and the other thing, pisani was right about the dow, but it's up 2,000 points this year over1,000 of those points came from just three stocks, and that's boeing, apple and mcdonald's, and all three of those get a big chunk of their earnings from offshore, so there's a global aspect to this real, to. >> it's not like the s&p hasn't had a great year thus far as well it's like 11%, is it not >> but the dow is stretching away and that's why you're seeing some of the diverges between the dow and the industrials, the dow and the s&p because it's a very narrowly built rally. >> and this as we head in, rick, to the big jobs report tomorrow morning. what -- how important is this? it seems like after we had the services come in a little bit soft today we already had interest rates pushing lower, the ten-year back to 2.25. >> the bank of england didn't do
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anything normalization-wise to get themselves closer to the exit pretty much stood pat. don't see any major changes for the other central banks as far as the u.s you can make a pretty good case that they are going to be less aggressive in the back half than they were on the front half. i think with all that, you know, know that we just mid a record yesterday and we're about to make another record today. i just think that the amount of records we're going to see for the back half of the year are going to continue because i just don't see any real financial religion coming into play, and the stock market rally is built on a foundation that -- that in my opinion over the last six years may be questionable, but many of the people that we have honored absolutely are right considering we started building the stock market about halfway up the skyscraper. the foundation of late is founded on some pretty good earnings, and i don't see any of this changing any time soon, and as far as interest rates, 2.23 today is very important. it's kind of the 48 basis point
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line of bounds whiunds i see all the major sovereigns giving a little back in terms of the long-end yields over the next several years. >> you look at 2.23 is rick says on the ten-year. you can't look at that and think stocks are expensive even at dow 22,000 and the records which we keep setting almost every day, can you? >> i can't say they are expensive. i'm not looking for some major issue here with the market the thing that i'm looking at, is you know, rick said that earnings growth has been good. i would call it okay, and there's been some disparities. yesterday the energy companies were terrible. we see companies coming in and showing disastrous results look at the health care space, high-flying stock back down to earth. i'm worried about the economic data as well everyone is talking about the jobs number tomorrow wages are not going higher and not pushing inflation enough
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what does that do to consumer purchasing power heard about housing stocks and where does the housing market go if wages aren't going up productivity is not going up, the wages don't go up, so if have a slower growth, slower inflation, growth not doing what it needs to, that 2.23, you know, that could go lower. that could go lower. >> oh, you're talking about on the ten-year so, art, you know, we've got the jobless claims number this morning which is a pretty god gauge. there it continues to be strong, but as you said the wage number isn't really in the picture now. do you see that changing >> i agree with michael on that. i think you want to see if that's tightening up i had a meeting with a variety of different economists and reporters the other night, and they all say they are seeing the initial signs of a little bit of wage tightening, inflationary pressure beginning to tighten, so that will be very key tomorrow and we'll see whether that kicks in and early next week we get the labor market conditions index which is janet
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yellin's favorite so we'll keep an eye on that. >> are you calling the rally a punk it sounds to me that you don't think that stocks should be where they are and that you're looking for a pullback of some sort, and you didn't say anything that was positive about the stock market being where it is. >> all right let me get a little more positive here. i understand why folks are buying bank stocks >> you don't have to do anything on my behalf just want to know where you're coming from. sounds like you're looking for a pullback. >> when do i ever do anything on your behalf? tech is where the growth is and it's scarce. doesn't mean we have to chase it maybe there's a better opportunity to buy stocks like alphabet and then a sector like retail everyone has left it for dead. i keep hearing this is a great big short, the next one. i saw target guide higher and they are excited about back to school the dollar gets weaker and weaker that turns around and that's going to be a big tailwind and the other thing we're looking at here talking about taxes. the border adjustment tax seems to be out the window isn't that good for u.s. retailers? i think it can and should be so
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i think, you know, it could be a god time there like that sector and no one else likes it that's a sector i like as opposed to financials or housing. >> i knew there was a good feeling there with michael block. >> thank you, guys, arthur cashin and rick santelli heading into the close, a little more than 45 minutes to go dow is up 15 and over 22,000 for the second straight day. we'll see if it holds on the dow and the dow is higher and everybody else is weaker, s&p down 4.5 and nasdaq down 19, and the russell down half of 1%. aetna is reporting better than expected earnings. aetna exec mark bertolini joins us. >> and a look at whether to buy the media giant viacom after earnings due out in about an hour >> reach out to the show via facebook, twitter or send us an
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all right. we're back one day after hitting dow 22,000 for the first time ever, stocks still holding above that level up more than 18 points where are we going for our seventh straight record close for the dow? >> yeah. >> been that kind of a run for the industrials. s&p and nasdaq have a little more work to do. >> eight for the dow, and -- and eight-day win streak seventh record close. >> we'll get it right. >> let's get a check on today's market mover the consumer products maker beat wall street expectations thanks to improving margins and strong growth in its cleaning and household businesses and soda stream shares are popping after susquehanna upgrade that had stock to neutral. >> aetna is not getting a boost after posting better than extent abouted earnings, up 2%. the insurer raised its outlook for the rest of the year, and it is preparing to leave the last state where it provides individual insurance for obamacare. >> joining us now is an
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exclusive interview is mark bertolini, chairman and ceo of aetna. always good to have you on "closing bell. thanks for being here. >> thank you, scott. thank you, kelly. >> i frankly think that the thing that jumps out to all of us is the performance in the quarter directly related to your having pulled out of obamacare, and i'm wondering if you can expand on that for us. >> well, it really hasn't. we haven't seen the effect of pulling out of the aca this year we will lose $225 million. adjusted last year we'll lose 300 so the difference between the two years isn't all that dramatic, so we've yet to seat impact of sustaining those losses year over year. >> however, you are expecting to lose less, and i'm assuming by pulling out in the first place that you expect ultimately losses to turn positive, no? >> well, they will go to zero and we'll refocus or capital on other parts of the organization
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like medicare advantage, like medicaid and our commercial businesses, all of which are performing at a very high level this quarter and last quarter quite frankly. the marketplace is very stable medical costs are very much under control at the lower end, if not below the lower end of our range, so we are egsee -- you know, a very positive economic environment for health care >> which itself is interesting because of the cost shift on to consumers. it certainly just doesn't feel that way mark, let me ask you about the cost-sharing reductions that the government -- that the payments governments need to make to prevent the premiums going up even more next year. were you guys fact oregon into anything in there in deciding you're abandoning the exchanges all togethering? would the knowledge that you would keep receiving those change your mine at all? >> two things, kelly, are really important. the premium subsidies and the cost-sharing reductions have very little to do with the premium levels
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those were pass-throughs by the government to people who couldn't afford either their premiums or their out-of-pocket costs to be paid to the providers on the health care cost side and to the insurance companies to cover their premium. if those go away, people won't be able to afford their premiums, nor will they be able to afford to pay their providers, and so downstream the people who really get impacted are the very consumers who are getting those subsidies, so this idea that this is an insurance bailout is all wrong i think for us the bigger issue is the uncertainty any business that has the kind of changes this program has seen quarter over quarter, sometimes monthly, would not be able to sustain their business practices for any period of time, so when they get it right, which it can be fixed, it very much can be fixed, and it's stable, we'll reconsider participation. >> so you -- you just said the word bailout, and obviously you're referring to a term that
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the president has used he tweeted on the 29th of last month if a new health care bill is not approved quickly, bailouts, in all caps he said, for insurance companies and bailouts, again in all caps, for members of congress will end very soon. a couple days later, tweeted, if obamacare is hurting people, and it is, why shouldn't it hurt the insurance companies? so you have a president who is apparently taking the fight directly to the insurance companies. we know about the president's penchant for watching television news if he's watching now, what would your response be to both of those tweets >> they aren't bailouts. our premiums are the same regardless, and it's the costs that need to be paid to hospitals and doctors that otherwise wouldn't be paid therefore, people wouldn't be able to afford their coverage. only people who get hurt are the members and the citizens united states who won't get health care as a result, so these aren't bailouts for the insurance company. we don't keep that money
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it goes directly to providers and directly to pay for premium for members so i think it's misinformed. >> mark, your industry has certainly raised the ire of "the wall street journal. i think it wrote this morning jokingly, this, of course, being in the opinion section they said we're so frustrated with the insurers here we would almost like to see it go to single payer just to completely wipe out their business model. other day i heard bernie sanders on the radio again talking about how we need to get single payer sooner rather than later, so is -- that's becoming more and more part of the national dialogue, does that threaten to completely undermine your exist intelligence. >> no, because nobody is able to define it yet and if we had the time i'd take you through the logic of why single payer ill defined doesn't generate any savings for the american public. there are no single-payer systems in the version that we think we want to create in this country that have failed in vermont and failed in vermont and most likely will fail in
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california when it goes forward to their budget. so we need to talk about the costs of health care and getting those costs under control, and that doesn't happen by changing who pays the bills. >> you think that the white house, mr. bertolini, should continue with repeal and replace and keep trying until they get something done, or as others have suggested, just simply move on what's better at this point? >> the bill -- the aca cannot be repealed, period, end of sentence they don't have the votes to do it in the senate where they need 60 in order to repeal the aca. what we should do is fix it. and unless we can get a bipartisan solution to do that, we won't fix it right, so either everyone gets their heads together over in the senate and the house and does the job that the american people needs them to do and fix what we already have, or they should move on to something else. >> have you reached out to the
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white house or anybody within the administration of late at all to play a role in that fix >> they very clearly know my position we've offered our advice it's really easy to fix this if they would just get over the politics of who is going to win the '18 election. >> and all of this as medical costs have actually been under control. it's an incredible landscape thanks for joining us to talk a little more about it mark bertolini aetna. >> 35 minutes before the bell rings. we're trying to hold on to another record close we're above that level right now. it would be the eighth. >> in a row, but seventh record close for the dow anyway. >> one or the other. >> we've got two streaks going one is seven in a row and one is eight. trust me, they are both good we'll figure it out during the break. >> and it's not like everybody else is participating. the s&p still lower. >> teppva pharmaceuticals down
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teva pharmaceuticals plunging after better than reported earnings. >> an incredibly tough day you see the shares getting hammered after its second quarter reports. those results missed for the second quarter and the company lowering its full-year guidance for both profit and sales and cutting its dividend by 75%. the interim ceo telling shareholders in their statement today, quote, all of us at teva understand the frustration and disappointment of our shareholders in light of these results, pledging to focus on cost reductions, pursuing divestitures and strengthening their balance sheet. now they are pointing to a weaker environment for u.s. generic drug prices. interesting in light of all the focus on the high cost of pharmaceuticals. actually the opposite weighing on teva and others in the space teach. a research out from wells fargo shows the pressure on the sales volume in this space and the three months ended in june, down 12% and that's a trend we've been seeing over previous
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quarters not just resting with teva and seeing pressure with others and the msando unit showed pressures already. you're seeing positive reaction for pfizer the m.o. pointing out maybe investors are shipping over into pfizer shares has more of a defensive play from teva as it gets hit so hard and cuts its dividend and you may notice we're in front of the brooklyn courthouse awaiting the martin shkreli verdict, he, of course, famous for raising the price of a generic drug, not what he's on trial for. we'll bring you news as soon as we get it here. >> back to you obviously, as needed before the show started, piper cut teva to astreet low $23, s they see some more potential downside. >> a quarter of their market. >> wow. >> time for a cnbc news update with sue herera. >> hi, scott hi, kelly. here's what's happening at this hour heavy rain from a typhoon triggering flash flooding in parts of china
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provinces in northern and eastern china were hit the worst with rising water trapping people and washing out roads and decimating drops. >> oscar pistorius in prison for killing his girlfriend was taken to the hospital today. a prison spokesman did not provide any further details on his condition. last august pistorius denied tried killing himself after being treated in the hospital for wrist injuries. and prince henrik of denmark says he does not want to be buried next to his wife who happens to be queen marguerite he is unhappy that he was never acknowledged to be her equal on royal terms. the two, however, are still married. and on wednesday afternoon a boeing dreamliner took off from seattle from arquette, michigan, turned southwest and just after reaching the tip of south dakota it banked right again before turning south and veering into nebraska why, you ask well, if you take a look at that, tracking apps show the plane drawing a giant outline itself over the u.s. total flight time.
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18 hours you're up to date. that's the news update kelly and scott, back down to you. >> heard of people of doing that with the gps running watch, but with a jet >> with a jet. >> and a big one. >> that's a lot of fuel. >> you got it, it kelly, it is. >> thank you, sue. see you next hour. sue herera i'm here with alan valdes. >> no tax cuts, no health care, no deregulation. if he implements one of them i think can you see dow 23,000 by january 1st. >> this has been a big talking point with bob and everybody you don't think the promises are part of the reason why we're at the levels you think that we're not predicated on that. >> definitely part of it, but i think if we didn't have the earnings season that we've just had, that it wouldn't be anywhere near 22,000. >> what do you find remarkable about the earnings
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>> i think, you know, they have been great right across the board. >> 73% beat on the top and bottom line and a mediocre season according to analysts and it turned out to be a really good earnings season. >> we have to keep that going and everyone is talking about wages. is the there a risk that the market becomes decoupled from the u.s. fundamentals. people are saying a lot of that -- a lot of the good performances are from companies with international business. >> i think the market is decoupling, because if you look at the news from the government, from washington, it's been mediocre at best look at today's ism number. >> yeah. >> right across the board, but yet the market keeps going up to record highs the vix is still a little over 10 so there so it's really amazing that this market is so strong with what really is going on behind the economy. >> we'll see if the data can play a little catchup. alan, thanks very much. >> thanks, kelly >> alan valde. >> dow holding on to 22,000 but
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not in record close territory, 22,007 is where the dow industrials sit. up next, whether the trump administration and china are close to getting on the same patriot missile when it comes to stopping north korea's nuclear weapon ambitions, and viacom, gopro and shake shack, a few of the big names set rort toep earnings after the bell. instant analysis of all of those results coming up. whoooo. i enjoy the fresher things in life. fresh towels. fresh soaps. and of course, tripadvisor's freshest, lowest... ...prices. so if you're anything like me...
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welcome back we told you the dow jones industrials are trying to hold on to 22,000 they are doing that, but as you can see we've slipped, albeit slightly, into the red the s&p and nasdaq have been there for much of the day but still those declines are even muted at that. >> well, maybe some breaking news out of washington is behind the dow tipping lower. let's get to john harwood who has more. >> bracing news for the white house from "wall street journal" which just report that had special counsel robert mueller has impanelled a grand jury in washington to investigate the links between the trump campaign and russia now, this is a broadening of the investigation from the one that he began when he was appointed by rod rosenstein, the acting attorney general there was a grand jury in virginia that was probing
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michael flynn and his activities the fact that there is now a second grand jury in washington, according to "the journal" indicate that the probe is getting serious. it doesn't necessarily mean anyone will be indicted, but this is sure to sharpen the question of whether or not president trump does intend to fire robert mueller. this has been an open question some republicans as well as democrats in congress are pushing legislation designed to protect robert mueller, but we don't know where this is going and we don't know what president trump is going to decide to do we do know that he's expressed publicly with his unhappiness with attorney general jeff sessions for having recused himself from the russia probe which was one of the change of events that led to rosenstein appointing robert mueller, so significant news today from "the wall street journal" about grand jury in washington assisting robert mueller in his investigation. >> it would seemingly, john, sort of ramp up the overall
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process in that it would give the power to subpoena, to do, you know, wide-scale interviews or whatever the special counsel and the grand jury deemed were necessary within this investigation. >> exactly, and it's an indication that this probe isn't going away on its own any time soon, and it suggests that multiple potential targets are being looked at, not just michael flynn, so if you are one of the white house aides who have been linked to those meetings with russians, whether it's jared kushner or paul manafort who was the former campaign chairman or donald trump jr., of course the president's son, this is a significant sign that you ought to be concerned about where this is headed. >> john, thank you, for now. john harwood we'll keep an eye on into the dow. dow down close to a point and secretary of state rex tillerson
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speaking with russian foreign minister sergei lavrov and the two reportedly discussed the issue in north korea among other issues coming on heels of a public statement that secretary tillerson made tuesday listen. >> we do not seek an accelerated reunification of the peninsula do not seek an excuse to send our military north of the 38th parallel, and we're trying to convey to the north koreans we are not your enemy we're not your threat, but you are presenting an unacceptable threat to us, and we have to respond. we've been very clear with the chinese. we certainly don't blame the chinese for the situation in north korea, only the north koreans are to blame for this situation. >> chinese foreign minister wang yi responded to secretary tillerson's words this morning saying that beijing attaches great importance to tillerson's remarks on north korea and hopes all sides could meet each other halfway to find a fundamental plan to resolve the security concerns of the parties through equal dialogue. >> all of this comes as congress weighs increasing spending on
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u.s. missile test. had that test the other night. for more on now this plays out we're joined by the u.s. director at the institute at johns hopkins. thanks for joining us. >> thanks for having me. >> what do you think secretary tillerson and sergei lavrov and china could accomplish >> they could begin a dialogue process promising a double freeze by the chinese in which north korea would freeze nuclear testing and ballistic missile testing in terms of cessation for u.s. and south korean military excises >> why is the u.s. talking about russia rather than china >> because china and russia coordinate on major policy objectives countering u.s.
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interests to a great extent so on issues like north korea, both china and russia coordinate and where china can't make a dent, then the russians step in. >> you know, i'm curious what, sir, you make of the secretary's comment that, quote, we are not your enemy when speaking about north korea. isn't north korea the enemy of most of the countries on planet earth? >> yes, yes, indeed, with certainly their bad behavior, but we're trying to convein to the north koreans that we are sincere about coming to some kind of peaceful resolution on the korean peninsula but denuclearrizing north korea and in return we would not be their enemy, that we would not force the collapse or regime change. >> if i said to you, okay, on a scale of 1 to 10, where would you place the idea that any sort of diplomacy could work. >> at this point probably .5
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i'm very pessimistic and i think we're on a road for a major major crisis, and i think it will be on this road for a couple of months before all of the interested players will come for an 11th hour discussion for talk until then i think it's going to get very tense and very dangerous. >> it was suggested this week that the u.s. and korea could effectively just keep conducting joint military exercises, that the north would feel like it has to respond to and every time they try to respond with a missile launch or something like that they are draining their own resources. meantime, there have been reports, the only way that they can keep their funding source going is through hacking banks internationally, and, you know, how much does this reflect the desperation on north korea's part to keep up the whole charade, do you think. >> i think we really misread north korea's financial status i think they are much more comfortable.
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they have the resources. the sanctions, while working in some aspects will not bring north korea to its knees, i think the north korean economy is growing their trade with russia and china are growing and i think north korea will continue to have the resources needed to continue their ballistic and nuclear programs. >> all right thank you for joining us as we continue to monitor the situation between north korea. let's see, scott, the u.s., russia, china, an everybody else involved. >> yeah. we have about 15 minute left in the trading session today. dow jones industrial average is in the red if it stands the way it does right now into the close, we will not have another record close for the dow. we don't need a lot. you need about 22,016. >> we just want to see if we say above that. >> we have the streak going. we may not what the tariq have, but it's going
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meantime, tes lea stock roaring leede 6% after the earnings reas up next what, ceo elon musk had to say about the future on the earnings call. stay with me, mr. parker. when a critical patient is far from the hospital, the hospital must come to the patient. stay with me, mr. parker. the at&t network is helping first responders connect with medical teams in near real time... stay with me, mr. parker. ...saving time when it matters most. stay with me, mrs. parker. that's the power of and.
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tesla the strongest performer after earnings were up 7% at last check phil lebeau has a little more to add. phil >> when you look at what happened to tesla in the quarter, a lot is focused on the cash burn and how much liquidity they have right now and how much it goes through in the second half of this year. here are some numbers to consider cash burn in the second quarter, $1.1 billion they ended the quarter with about $3 billion in liquidity and capital expenditures in the second half of this year as they continue to invest in production, giga factories, et cetera, about $2 billion and speaking of those giga factories, remember, they have one that's up and running. that's just outside of reno in nevada this video says it all this shows you how quickly they are expanding that giga factory. giga factory number two in buffalo, new york, that's expected to go into operation and open in the third quarter, and then after that get ready for more giga factories.
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>> we're also thinking hard about where do we put giga factories three, four, five and six. we expect to keep the majority of our production in -- in the u.s., but it's obviously going to make sense to establish a giga factory in china and europe. >> and we expect that we'll probably hear about some of those locations by the end of the year there's also a number of people saying, well, is there enough demand for the model three officially there are 455,000 people who put down $1,000 for a reservation to get their model three at some point, 63,000 people have cancelled their reservation, a big backlog that they will start working on they are already working on it as they ramp up production guys, back for you. >> phil, thanks so much. news alert on uber. >> uber knowingly leased unsafe
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cars to drivers in singapore the cars were honda suvs that were subject to a recall, and when one of them caught on fire, according to "the journal," uber's response man was to leave other overheating cars on the road when they did overheat and wait for replacement parts in, a statement to cnbc an uber spokesperson says we acknowledge we could have done more and have done so. since the beginning of the year we've responded to six vehicle recalls and will continue to do so to protect the safety of everyone who uses uber guys this, all unfolded when travis kalanick was still the ceo and adds to a large list of crises that happened under his watch. this latest incident though, guys, could involve other executives who "the journal" says knew about the recall and the plan to replace components instead of recall the vehicles guys >> yeah, we wonder if those execs are still there. had suto clean house
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dow back in positive territory i think we've had some buy interest also had that mueller story from "the journal" pushing us lower regained five points on the dow and nasdaq lower by 6 and nasdaq down 23 and russell down 8. >> viacom lost out on the scripps network deal this week would another deal make it a more attractive stock. up next, a bull and bear square off ahead of the communication giant's earnings so that i can take my trading platform wherever i go. you know that thinkorswim seamlessly syncs across all your devices, right? oh, so my custom studies will go with me? anywhere you want to go! the market's hot! sync your platform on any device with thinkorswim. only at td ameritrade
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change the way you wifi. xfinity. the future of awesome. welcome back i didn't see arthur, but there was some buy interest on the close. >> he's around here somewhere, always is. >> factored in at this point. >> seven minutes to go and dow is up about five point right now everyone else still in the red. >> viacom set to report earnings after the bell take a look at what shares are doing going into the number. having a pretty good day, up a few percentage points there. it will be third -- it will be the third quarter under new leadership of the ceo, the new ceo bob backish. the company recently bid for scripps networks but discovery communications prevailed with a higher cash offer. >> should you be betting on viacom joining us is to todd younger and barton crockett from fbr capital markets. todd, you're sort of our bear here i've noticed viacom shares the
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last couple of sessions and you're the best performers in the market why don't you like their long-term prospects? >> it's pretty simple, really. my argument is that viacom earnings the vast majority of their profits from a product that their target consumer really doesn't want anymore which is linear schedule, ad-supported networks for kids and teenagers, and against that they have levered the company, i would argue, recklessly carrying four turns to ebitda which means that if those earnings falter at all, the equity holders are in big trouble. >> barton, what a difference a handful of months make you know, you had viacom as a perspective seller in the market of key parts of the business. >> right. >> and the fact that they were even in the conversation with scripps, i read as an overcoming
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positive >> viacom, i understand todd's argument, and to be clear i'm the bull here but i have a market perform rating are on the stock with a price target over 40, but i think part of my argument for the stock is that there's real asset value here, and i think if the family were to put this company up for sale, you can see scripps selling for 11 times ebitda. you see viacom with a script library losing money but could catch $5 billion to $8 billion there's an easy argument you can make for upside in this equity you know, on top of that, you have a new ceo when is had a turned around a lot of the latest headwinds, outperforming peers right now and their ability to hang on to audience. >> okay. >> and i think it's easy toe make an audience that the future comes better than todd paints it. >> had a lot of breaking news this hour. shares up 3% and barton crockett and todd junger weighing in.
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thank you both. >> we're coming back with the closing countdown. >> after the bell a ton of earnings amazon looking to hire 50,000 employees and other big-tech companies are also in the hunt on the eve of the july jobs report we'll take a look at where the bsjo are you're watching cnbc, first in business worldwide
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back on the floor for closing countdown. dow going for the seventh straight record close, and the way i look at it now, we're going to hold on to that, at least for this moment because we're three points ahead of that level. we're waiting for some big earnings after the bell, including gopro and viacom and shake shack, everybody's favorite i'm here with bob pisani who has been watching this after dow 22,000. >> reporter: that narrow rally we've been talking about, dow up 250 points in five or six days and the s&p down don't see that very often. big names have been moving the dow here i do think we drop the bid here on the s&p and if you can show that midday. four or five points there. this story about impanelling a grand jury. >> seemed to affect the market, albeit really slightly. >> a different level. >> just a moment. >> when you're talking about subpoenaing records and slightly different level here i would note larger term, semiconductors have been weak all week, a little bit of a
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summer swoon. >> peel keep talking about small caps and transports and diverging from what we've been doing, you know, but we'll get in a record close yet again. seven in a row for the dow second hour of "closing bell" begins right now >> thank you, scott. welcome to "closing bell," everybody. i'm kelly evans. here's how we're finishing up the day on wall street after closing up over 22,000 for the first time ever. we're looking at just about a six or seven-point gain as of right now. we'll always see how that shakes us enough to put us at 22,024 that should be another record high the price, of course, yesterday was 22,016 meanwhile, easy call for everybody else which are lower the s&p shedding 5.5 points and the nasdaq down more than a
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third of 1% to 6340 and the russell 2000s, which have been hurting, down half a percent to 1405 their record high close was 1450 more dellary weakness today, and we have earnings they will be coming out fast and furious this hour, and our reporters are standing by to break it all down for us julia boorstin will have viacom results and act vision blizzard, josh lipton is covering gopro and leslie picker has weight watchers and jackie deangelis on shake shack and landon dowdy is covering etsy. thanks, everybody. we'll see you in just a movement joining me on panel is cnbc senior markets commentator michael santoli and stephanie link and kim forrest who is portfolio manager at ford pit capitol group. mike, i like the discussion we were just setting up which is the overall market moves aren't huge but the individual stock moves are. >> without a doubt, maybe the
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12th or 13th day in a row that the s&p has closed in the 24770s a very tight band. didn't move a whole lot today, but below the surface you're seeing a lot of give and take. talked about that sort of reflex to perhaps sell on the news when you get even decent earnings report yet on the whole you have enough supporting the market here that it looks okay. the average stock is underperforming the index for the last, i don't know, ten days or a month so maybe we're having another one of these very quiet and unin itsable bull packs and we'll see how we have movers coming out after hours let's get to bob pisani. another record-setting day, at least for the dow, bob should we make too much of the fact that the dow has been powering higher lately while the s&p and everyone else is sitting this out. >> professionals are not impressed because it's so narrow dealing with boeing and mcdonald's and a little bit with apple and united health. so, look, it's up. that's what gets the attention
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of the general public. s&p has been down most of the time while the dow has been rallying 250 points. the s&p down a little bit. you can see today a little bit of see-saw action drought. that came on reports that mr. mueller, the special counsel, is empanelling a grand jury still trying to clarify that, but if so that would be a new level. we're talking about subpoenaing records and taking testimony, different than what we've been hearing before the dow dropped -- the s&p dropped about four points on that and recovered a little bit here take a look at the vix, volatility index intraday. did have a pop-up. remember, you're still in the 10 and 11 range that's still historically pretty low right now. more importantly i think it's what i'm calling a modest august swoon this week. take a look at the russell 2000 here we've been down six out of the last seven trading sessions. that's starting to get a little bit of attention on some of the technical debts. what's been going on momentum some of the big market leaders that are out there semiconductor stocks, for example, have had a rough week overall. they were down noticeably.
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sirius had good numbers and sold off nonetheless. qualcomm and others down 6%, 2% for the week big momentum names even more important is what happened in the energy space today. remember, we say very important because energy stocks are contributing a very large part of the earnings expectations for the second and third quarter we had some disappointing comments today from apache, oasis, concho and other big names, noble energy another one that was down notably. if you can't get the kind of earnings expectations from an energy group, that might mean overall numbers will have to come down for the s&p because you get such a big contribution. bottom line right now is right now s&p has just paused. there's some weakness in other major sectors and i think we'll have to see how this plays out over the next couple of days to see if something more important is coming on back to you. >> bob, thank you. stephanie, what do you think here we're seeing some turn
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obviously? had some record closes where's the most opportunity >> well, it's more in the thick of it with earnings. earnings are actually running better than expected kind of on a broad measure, running 10% on the bottom line. >> wow. >> xge, running 11.5% and sales have grown about 6%. not as strong as first q but second q certainly respectable and as we're all talking about this rotation, but even with the rotation, within sectors, like, for example, energy. the emps got hit hard today, but if you own the integrated names they did okay relative same with tech and spectors not so good but software holding its own and some of the more value names doing well, so i think it's really, really important to highlight that this is truly a stock pick per's market. >> i was going to actually suggest the other opposite if it's hard to get all that right. is it better just to have that index fund and say let it churn. i'm just going to ride it. >> let me just tell you. i would rather own johnson & johnson which was
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green today over teva which was down 23%. >> that's for sure. >> so that's the point of within sectors it really is very company specific, and you've got to get it right. >> let's get company specific with gopro's earnings. josh lipton has the results. >> josh, gopro reporting a loss of nine cents versus expectation of a loss of 25 cents. revenue up 34% to 2997 million versus an expectation of 270 million. gross margins also clocking in better than expected at 36.2%. more than 1 million cameras shipped in the quarter the street had modeled around 852,000. spinning ahead to the q3 guide, that's also better than expected, kelly, gopro a loss of six cents, analysts expected 12 cents and on revenue of 300 million plus or minus 10 million the street looking for 297 million. what does the goerpo ceo nick
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woodman think about the results? kelly, we'll ask him he'll on "squawk alley" live and exclusive tomorrow tune in for that interview back to you >> guys, this is a pretty big beat i don't know how much you want to talk about gopro. are you owners of it >> no, we're not, so we're a value shop not really that appealing. i'm happy to see that they have beat expectations. it says the consumer, some consumer somewhere is doing pretty well, don't you think >> maybe that -- i don't know, is it the drones guys, you know, because, by the way, i was in central park the other day, and you hear this weird buzzing sound and sure enough, you know. >> you weren't close enough to see the brand, right that's been the story on gopro is everybody else is in the gadget space obviously a decent beat and good to see guidance for the third quarter look good but a very seasonal business so you have to
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kind of put it in context, especially with the stock that's just been pounded into the ground. >> it has been pounded now we're seeing it up 15% i'm sure management is breathing a sigh of relief let's get to the shake shack and jackie deangelis has those results >> reporter: company reporting for the second quarter 91.3 million in revenue, 20 cents in adjusted earnings. on the surface there, you've got a beat on both in terms of expectations, but what the street isn't liking and why the stock is trading down in the after-hours session on the same numbers is the same-shack sales, the eke vent of the comps, down 1.8% so that seems like a little bit of a disappointment. at 5:00 shake shack will hold its earnings conference call when egel get more clarify and color from management and people will be looking to hear about the expansion plan and how things are going into different cities and they want to know what progress the company has made with the launching of its app. original reaction on shake hack,
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more with you, the apo, the bobby flay thick and this space has passed its date of most excitement. >> it's a very crowded space for sure this is not an inexpensive stock so you have that, and then you have negative same store sales at the same time when you have a mcdonald's with a 6% comp or yum brands with a 2% comp, you know. there's a lot of competition i think the lower end actually is doing better, a bit better than this kind of mid tier, if you will, and, i mean, it's a growth story so it's going to ebb and flow and you can't put up -- at this multiple you can't put up a multiple comp. >> we're throwing you gopro and -- we've got to the find some value stocks for you. >> i know. i'm going to bring up went we's, you know one of my picks here and i have watched this space very closely and fast casual, maybe we're at peak fast casual and peak car
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and peak fast casual, how about that it's true. a lot of people want to grab food that's good at a reasonable price. that's why we like wendy's. >> wait a minute let me ask you about this, kim, because i like where we're going. you're saying we're at peak car which implies peak fast casual and what's the flip side if people aren't going out and driving for the shopping experience and picking up the food, are they staying at home or having that delivered is that a grocery store play or what's the other side of that? >> we'll see if it's a grocery store play with kraft heinz because they kind of make meals in a box and that sort of thing. i mean, that's an excellent question, where does the consumer spend their money it could be on blue apron. it could be on other sort of things, but it looks like the whole fast casual, where the average ticket is somewhere between $8 and $13, might have priced themselves out of the game at this point. >> yeah. no, i know i'm kicking myself, steph, every time on the upper edge of that range
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sometimes. >> especially when wendy's and mcdonald's and -- and yum brands and they are improving their product quality, right. >> right. >> it makes it even that much more difficult for that next level to compete at that price point, and so that's what i think is happening now, that's not to say, look, yum sold off today on a really good number, but i think that therein lies your opportunity. wait for some of the stocks to pull back where you think the secular trends are in your favor. >> what your say >> and i think we're still waiting on the trends from kraft heinz. the consumer space has been hammered because they have the whole idea, we don't like the medicine generics, we like the food generics, the idea this that it's going to be kirkland at costco with 56% comp, by the way. >> i was just about mentioning that private label is really doing quite well, and if you talk to some of the private label, even the frozen food guys like conagra, they are working very hard at making them higher quality products so there's so much more to offer to the
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consumer conagra has a lot to do in terms of educating why it's good to have a frozen meal versus many years ago and i think they are making stride. that on the margin will hurt some of the other names. >> they get another group of companies that's trying to fight against how their mainstream core legacy products are being rejected by consumers and kind of seen as a little bit old-fashioned and out of step. trying to grow in the areas everyone knows is the future and how fast does that happen? >> right. >> whether it's cars or alternative fuels, enterprise software going to the cloud. >> and think the kraft heinz guys heard us. lesley hats earnings. >> they did hear you indeed, kelly. looking at a bit of movement in after-hour trading with craft heinz. beat on the bottom line, miss on the top line let start with the bottom. they reported 88 cents adjusted earnings per share that's compared with estimates of 95 cents per share. now, that's largely reflective of some of the cost-savings
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initiatives from the merger that celebrated its two-year anniversary a little bit ago they also revenue of 6.68 billion compared with estimates of $6.73 billion now, the story there it real reflects the consumer taste that trend towards healthier, fresher food, an they have been reacting to that by introducing new products during the quarter, but it's clear they are seeing weakness especially in areas like europe and. canada krflt hide made a $143 billion for unilever so a lot on the call will be curious as to whether there's any m & n activities in the future. >> quickly on craft heinz. >> the only thing that matters is what they do m & a-wise fundamentals have taken a back step. >> is it going to be unilever? they are rettyying up the shop >> i don't think it's university
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leave. i'm hoping in monday lees. >> just had an interesting ceo change burr does make sense. they could go after unilever. >> thank you all for joining us. president trump and the bill for a merit based immigration system we'll discuss where the jobs are ahead of tomorrow's key report and more earnings as soon as we come right back from the break contact the show via facebook, twitter on send us an e-mail closingbell@nbcuni.com you're watching cnbc, first in business worldwide i kind of feel like it's a game changer. i wouldn't go that far. are you there? he's probably on mute. yeah... gary won't like it. why? because he's gary. (phone ringing) what? keep going! yeah... (laughs) (voice on phone) it's not millennial enough. there are a lot of ways to say no. thank you so much. thank you!
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see how much you can save. choose by the gig or unlimited. call or go to xfinitymobile.com introducing xfinity mobile. a new kind of network designed to save you money. welcome back as i said, still more earnings, act vision police ard is out let's get straight over to julia boorstin with that result. julia? >> hey, kelly, that's right. act vision's results beating on the top and bottom line. adjusted earnings coming in at 43 cents per share, 13 cents better than analysts expected. revenues also beat estimates at 1.43 billion in revenues versus expectations of 1.23 bill on for act vision blizzard.
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saying act vision blizzard had 407 million monthly active users and they had 46 million active users with blizzard, up year over year. q3 guidance appears to be better than expected and the full year fiscal guidance seems right in line with expectations switching gears over to viacom which also just reported its results. also beating on the top and bottom line. we see viacom shares trading nearly 4% higher reporting adjustments to the earnings per share 3.36 billion in revenue versus estimates of 3.29 billion. viacom strengthened its top line with strength in advertising and affiliate revenues and gains across its film entertainment segment while continuing to execute on the strategic plan to
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reinvigorate the plans and break down fios. >> thank you, julia. shares up 4% i don't know if we can show the one-month stock chart. this is really much off the recent lows. >> definitely a lagard definitely a work in progress but you're seeing progress especially with things going on with ad-supported discovery scripps network and maybe people are starting to rethink what that part of the media business will be. >> if you back it out a month, keep an eye on viacom. a news alert out of washington kayla tausche, what's happening? >> kelly, we have an update on a speech that the president was originally expected to make tomorrow during which he would unveil some trade actions to china and sources close to the event telling cnbc that event has been postponed no word on the reason for the
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postponement or when it will be held when we get more details, we'll bring you that. >> kayla, thank you. let's get back to the earnings desk what have we got, guys let's move on to shares of cognizant technology, closing a little bit weaker today after an earnings beat and raising its guidance it's up nearly 25% this year and tech companies could soon face some challenges following the trump administration's announcement r.a.i.s.e. act yesterday cognizant up 2%, up 25 percent year to date if passed it would cut illegal immigration in half over the next ten years joining us-ins a ceo, conclusive is cognizant's ceo what do you think would be fallout on your business >> look, we're still assessing
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the impact of the r.a.i.s.e. act unveiled yesterday the r.a.i.s.e. act really targets the permanent resident process of the so-called green process, and our view is that it won't have an immediate business but we're continuing to assess and as always our rue is any immigration that is good for u.s. businesses, good for american competitiveness is good for the country and that's what we'll support. >> so you don't think this will have any impact on your business >> at the moment based on our preliminary reading we don't think so. >> what were your concerns were you afraid that it would? >> you know, our view is that we are in the middle of a major technology transformation. digital tech why i is pervading all parts of the economy and businesses around the u.s. and around the world are becoming more technology intensive, and this is the time for us as a
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country to lean forward, as a u.s. company, we're committed to the competitiveness of our clients and the competitiveness of america. >> right. >> and we think that skilled talent is -- skilled technology talent is core to that competitiveness and so we support immigration reform that's pragmatic, immigration reform that supports the competitiveness of the united states and immigration reform that allows u.s. companies -- >> do you support this legislation then, or are you looking for something that would have more avnet positive on your business in. >> we are looking for immigration reform that allows our clients and us to getacces to the best and the brightest from around the world so that we can drive the technology into our clients' businesses for competitiveness. that's really what drove our results this quarter we had strong results this quarter as our clients transitioned to digital scale, and that's the legislation that we'll support. >> with regard to your business
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and how your clients are approaching their i.t. needs, i wonder what other transitions are going on you know, you hear about a lot of large companies rethinking exactly how much they do inhouse, what their i.t. services departments look like transitioning to maybe more outsourcing. how does that bear on what you deliver to these companies >> you know, it's exactly what drove our results this quarter what we're seeing is as digital technologies become mainstream, our clients are deploying digital technology at scale and that means that they have to reinvent their business model, their operating model and their technology model, an they have got to do that all simultaneously they are turning increasingly to firms like ours who can help them with that journey because it's a heavy lift to make that transformation and to do it across the enterprise scale. >> francisco, thanks for joining us today. >> thank you. >> weight watchers earnings are out. back to leslie picker with those earnings. >> reporter: weight watchers,
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don't have much weight on their shares look at them right now up about 19% in after-market trading. that is largely due to a beat on both the top and bottom line and a boost to the company's guidance let's run you through the numbers. they reported are earnings per share of 67 cents. that's compared with estimates of 51 cents per share. on the top line weight watchers reported revenue of $342 million, compared with estimates of $330 million. eps guidance was raised about 12% for the full year to 1.57 per share, to 1.67 per share that's up from 1.40 a share to 1.50 per share subscribers also were up about 20.1% year over year we're listening to this conference call in a little bit where mini grossman will have her first earnings call since taking over and we'll report back with what we learned. >> oh, right she was at hsn. >> she was indeed, home shopping
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network. >> oh, wow, and i don't know if we call this the oprah effect, leslie, looking for her name in the release, but i guess, you know, they are probably trying to fight back against the idea that that's it. >> "the wall street journal" reports today that mindy grossman did spend a day with oprah just to kind of track her. >> as she should, right. >> mindy grossman supposedly bought stock in weight watchers before she started running for the job after oprah became involved not trying to avoid the oprah subject. >> from the moment she came on, it was like single digits not that long ago, an incredible run. leslie, thank you, 20% pop in wtw. up next, we'll talk about what eatiev listings loss could mean for investors and millions in capital venture funding and what that means for the space industry just ahead.
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sensing your every move and automatically adjusting to help you stay effortlessly comfortable. there. i can also help with this. does your bed do that? oh. i don't actually talk. though i'm smart enough to. i'm the new sleep number 360 smart bed. let's meet at a sleep number store. welcome back etsy's earnings are out now. let's get over to landon. >> reporter: coming in better than expected at ten cents a share including a couple of things it includes 4x gains and income tax and as far as revenue goes, 1.17 million, roughly in line with the 101.2 million the street expected. full-year guidance is slightly
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lower. we'll have more on that when the call starts at 5:30 p.m. right now the stock is up about 4.5% kell de, back over. >> landon, thank you time now for a cnbc news update. >> hi, kelly, and hi, everybody. >> michelle carter who encouraged her suicidal boyfriend to kill himself in dozens of tax messages was sentenced by a judge to 15 months in jail for involuntary manslaughter, but the judge granted a defense motion that would keep carter out of jail until her appeals in massachusetts courts are exhausted. a british-based computer researcher has been arrested are by u.s. authorities on charges that he conspired to advertise and sell cronos banking mal wear marcus hutchins was detained in los angeles last week, but he's widely credited with helping to develop the ransom wear.
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robert hardy who played cornelius fudge in the harry potter movies died his career spanned more than 7 years. he was 91 years old. here at home, a variety of amrita brand prodean bars could be contaminated with listeria and are being recalled it involves nine different flavors distributed to retail stores nationwide. you're up to date. that's the news update this hour kelly, i'll send it back downtown to you. >> thank you very much, sue. our sue herera it's time now for fast take. you ready, michael >> i think so. >> and we're playing stump santoli. >> i may not be ready for that but i am for this. >> begin with the talk of the town, none other than trader andy hall. some would call him the quote, unquote oil god shutting down his main fund after reportedly losing 30% so far this year, wow. >> long and wrong on crude oil for a while now, very bullish on it i mean, it's very rare to see one of the hedge fund managers or traders who guess two of the
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huge epic moves correctly. >> talked about the guys who had big shorts during '08-'09 and how they are doing now. >> doing it in the division of citi group and also if you're looking at the demand sigh, a lot of traditional numbers, might have thought oil would be able to get closer to the highs. >> it has moved up a little but not enough for a big call like that. >> coined of a bounce, a glorified bounce in the grand scheme. >> glorified bounce. >> the new york stock exchange right where we're sitting is on track to lose etf listings for the second straight year 50 shares have left. blackrock wants to diversify their opportunities. >> nyc and arco, the exchange where etfs were a huge business, kind of suffering from being the incumbent so if you want to spread out your technological risk you don't want to be at the
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mercy of any one trading platform but definite lay net bleed of lit glgs is that able to change the close so they can capture more of that business and it doesn't always get sent back to the nys sneh. >> for a final auction at the close. >> that would be a bigger deal if it gets accepted. again, this is etfs, not a tremendous money business but definitely regular trading flow. >> that's for sure >> okay. i need you to school me on this, neymar or neymar >> neymar. >> he has paid his 200 million euro buyout clause to put that sum in context thompson reuters says this would rank as the 30th biggest acquisition ever a brazilian target by a french acquirer. okay. >> which is pretty huge. >> however this buyout happened. >> i think some people need the explanation that this is a soccer player. the wait we set that up. he's a great soccer player one team wanted to essentially buy him from another team.
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>> the cutter basically wanted to buy him and it was funny people actually accused them of financial doping because they have just thrown so much money into this team. >> exactly. >> and been able to just make a deal like this happen. >> it's amazing. i don't know if any athlete can be worth it on the field, but it's fascinating i mean, all the machinations where the existing team was not going to accept the buyout payment. >> right. >> to let him go. >> and the late theft afternoon, by the way he's reportedly signed a five-year -- >> calling it a brazilian target not a spanish target even though he played in spain spanish holding company. >> finally, did you know you can get a tv antenna to get free broadcast tv "the journal" says a lot of millenials didn't know that and are rediscovering the rabbit ears as they cut the cable cord and i was one of them several years ago. >> one of of them who didn't realize tv waves are out there in the air. >> i didn't quite realize that all i had to do to get free broadcast was just kind of turn on the tv but during that whole
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transition and became very tricky >> when it became digital signals over the year, you needed the new antenna, kind of fascinating that we've so raised really a couple generations on the idea that you have to pay to the lines for your house. >> do you think we'll always be able to access those broadcast channels for free? >>ly think the government has it in their interest, always a pretty consistent sliver of the population that relies on over the other. >> just so god people will discover that radio is the original streaming music. >> thousands lined up yesterday for amazon's job fair but how 'rgog ctually got jocks. wee into break down the results right after this
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is the original streaming music. welcome back we set another record on wall street as the dow continued its win streak to maybe an eighth or ninth session now. up ten points on the bell. 22,026 different story for everybody else the s&p down five points and russell down about eight and the nasdaq down 22 and we've had more earnings movers after hours some big ones with, too, in fact look at weight watchers which is up 17.5%
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gopro is up 9.5% and viacom has now turned lower after initially popping on its results amazon is holding a jobs fair in baltimore, maryland, kenosha, wisconsin and robbinsville, new jersey yesterday hoping to fill 50,000 open positions. deer are a bosa did, they do it? >> not quite you said they wanted to hire 50,000 people, yes, but less than half that number actually applied on amazon's self-declared jobs day and it's unclear how many jobs were sell. we saw 25 people come on around 11:00 tham certainly though accepting 20,000 applications in one day is big for any company, even amazon, and the people we spoke to were excited for the opportunity citing immediate benefits, flexible hours and amazon's growth as a company as reasons for wanting to apply amazon says they are still
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processing applications and this is the first wave of hiring, but they are still well short of the 50,000 people they are hoping to hire now, that could complicate amazon's own expansion plans as more people shop online, but it also raises the question, kelly, are these the kind of jobs that people want, that is, low paying, physically demanding warehouse jobs that aren't making up for the many jobs being lost in traditional brick and mortar retail. >> joining us now to talk about that and the eve of the july jobs report. joseph fuller is a professor of management practices at harvard business school. welcome to you both. are you surprised that amazon is having trouble amazon is trying to fire them and in places that are concentrationed. traditionally retail hires has
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been everywhere people shot and as technology changes the face of retail there's locations where there's warehouses, distributioners? and very different way for hiring for retail. >> amsome is a very aggressive user of veeck and the wages are being bempt by the next alternative which is can you automate away the alternative? >> i was wondering this concentration of economic activity that amazon is bringing to different areas of the country, the massive logistical centers, whether it's the chicago-milwaukee corridor, near new jersey, where it it is, is it going to have the same multiplier effect in terms of creating more economic activit around these areas, or are they going to be isolated islands along the interstate in i'm trying to figure out how the overall economic landscape might adjust as we go more in this direction?
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>> reporter: it depends on how much they pay because one way is they were earning those rages and turn around and buy at local scores and so on what we're seeing is tech companies that pay less are dispersing to other places in the country but these tend to be the lower salary tech jobs the high salary cutting edge jobs, people that are programming the robots behind the automation, those jobs are increasingly in the big tech hubs we're seeing more and more of those jobs in silicon valley and seattle, not the places where there's warehouse hiring. >> let me go back to you, because they will just replace that labor if they can't fill it with technology. look, amazon has a retail, you know, bonanza coming up with this christmas shopping season, right? mean, it can't do that kind of technology replacement overnight, can it? >> no, and -- and they will continue to fine the labor
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market tightening even though the labor market has been gradually adjusting. if you look at the current unemployment rate very low, delining for people are lower educational credentials, declining for african-americans and teenagers and declining for hispanics. the pressure on wages should start emerging wages have gone up 2.5 year over year, higher than inflation and higher than economic growth, and you also have 360,000 more people in the workforce in june than you had in may, so very gradual adjustment of more people getting back in to the workforce so they anticipate better job. >> when we spin it ford in the jobs report in the morning, professor, the idea is the labor force should continue to maybe delicately to expand the wages should be going up, and what's happening with amazon is a microcosm of all of that? >> a bit, and -- and but we
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still have a real polarization in the labor force as jed was suggesting it's been a great era to be a highly educated college graduate or someone with high level numeracy or technology skills. the process for those people without those skills and lower education levels remain reason blip capped by the fact that there's a lot of downward price pressure in a lot sectors that hire these folks so simply raising raises puts a squeeze on margins at prices already under president bush-hour. >> amazon has been growing so fast for so long it's been a constant voracious hirer of talent of all sorts is this kind of job fair event, not to be too cynical, at least had a little bit of a publicity move >> it's a great wave to announce that you are hiring, but right now it's more of a challenge for amazon to hire these workers than a year ago. at a point in the recovery where we're seeing wages start rise most for lower wage jocks and
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for people with the least education they are actually looking to hire the types of workers for whom the labor market is tightening most right now. that's where we're seeing the biggest drops in employment and the biggest rise in wages. >> real quick, we've got to go jed, what's the best place right now to find a job? what's the hottest sector? who is hiring? >> we're talking about tech so the place where we're seeing the biggest demand in growth for forecast jobs is seattle where we're seeing demand for a lot of the higher end cutting edge jobs. >> i meant position. >> seat s&l a good answer. do you know the type of position >> for the tech jobs. >> for any job. >> like the hottest thing going right now? >> huge demand for health care given aging of the population and logistics jobs around warehousing, delivery, booming jobs. >> one of the hot spaces thank you both >> professor, real quickly, what were you going to say? >> the biggest growth in demand is hybridization of jobs, jobs that have not traditionally had a technology element but now do.
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>> professor joseph fuller and jess kulker, thank you again. some call it summer water or hampton's gatorade coming up, we'll look at how rose has become the hot drink to cool people off, but, first, watch out, spacex and blue origin there's a young space startup on the block, and it's looking to capitalize on low-end space launches the details on its upcoming rocket launch and what that means for the private space race next (baby crying) (slow jazz music) ♪ fly me to the moon ♪ and let me play (bell ring)
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welcome back let's hit more earnings with leslie picker. >> i want to draw your attention to shares of grubhub, trading in the red and after markets today. that's because they reported adjusted earnings per share in line with analyst estimates and on the revenue side that actually beat as well. grub hub reporting 159 million per share compared with $153 million per share, those were the analyst estimates. that the was a 3 it%year over year increase. when you look at numbers you have wonder what's going on with the shares another thing that they announced was guidance, and that was right in line with what analysts were expecting here they see q3 revenue between 155 million to 163 million that was compared with expectations close to 158 so nothing on the surprising side here with these earnings also which is very, very interesting, two long-term relationships with both yelp and
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groupon. grub hub said it would buy yelp's eat 24 unit and announced a five-year partnership with that company and yellp shares are skyrocketing after beating their own set of revenues and estimates and they said they were acquiring 27 company-owned order up food delivery markets from groupon so a lot of action in this food digital kind of older social media company action, kelly. >> yeah. delivery is consolidating. yelp up 18% and grubhub down 8 what would you say, michael? >> i think it's a very noisy situation because of all the partnerships had one with trip advisers not that long ago. people wonder how they are going and how aggressive financially it will be with all the deals and what it mean. >> and whether or not that's hurting grub. >> and sometimes restaurants that are customers of seamless won't like a linkup with yelp. >> we'll talk about some rose. a breakdown of the red hot sales of that cool summer beverage right afr isteth at fidelity, trades are now just $4.95.
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we're halfway through summer, but sales of the season's most popular beverage, rose, are showing no signs of slowing down we have more >> hey, con sungs has been on the rise here in the ice, but recently, we've seen a sharp jump in demand driven by millennials and different products >> there's much more than that is offered today including roses in cans and large format roses and roses in different colors. i think a lot of wineries are realizing this is a category in and of itself and they've come up with new products
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>> oregon will produce half of is 365 cases in cans overall, u.s. rose sales up 60% year over year going faster than champagne and other wine categories like chardonnay and cabernet. france and the united states consumed nearly half of the annual 600 million gallons produced globally. province in france is the largest rose producing region in the world, but spain, argentina, the united states, even china, is getting in on the action, but keep in mind, just ten years ago, rose, or this pink wine, was considered cheap and unsophisticated, but thanks to strategic rebronding, it's considered young, hip, cool and versatile. a perfect drink to accompany any meal, unlike champagne >> and takes the sting out of those tense political, just trying to set up the next thing.
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seema, thanks very much. we have another news alert from washington back to john harwood >> white house press secretary sarah sanders just put out a statement in response to the "wall street journal's" report about robert mueller she is quoting ty cobb as saying they're not aware of a new grand jury and she quotes james comey as having told the president three different times he was not under investigation and the white house has no reason to believe that has changed, so they're not acknowledging or recognizing thispotential development report by the journal. >> all right, thank you, john. that's the latest out of washington meantime, it's that other time again. i'm going to try to stump santoli. >> mike, mike, mike, mike. >> will this winning streak continue he was three for three last time we're going to find out next from at&t you can get unlimited data
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yesterday. apple had the most positive impact how many points did it add >> 62 is pretty close to 49. >> yes, it is. >> i'm going to say 62 >> you still, it's 49. it's 49, but we were going to say 52.49, that was really close. still not enough >> all right >> 49, but you're right. we'll give you half credit question number two. this is reich the let's shall we say nontechnical, question two, tomorrow's sony release is a fantasy film, the dark tower, based on the book series written by -- trz. >> yes
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stephen king >> he's the "game of thrones" guy. question number three and we're back on track. jobless claims have now been below the healthy labor market threshold of 300,000 for how many weeks 162? 406 1i67 2 that ain't bad >> passing grade >> we'll hold up this excited you know, this is what -- >> do i get credit because i know what the dow multiplier is. 6.8 dow points for every dollar changed in a dow stock i just didn't know exactly how much dollars it was up yesterday. >> no. >> $105 billion. >> yeah, you just keep going >> keep working. >> the same thing to you on earnings after hours >> still so choppy and i think
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it's about the set up, so the really depressed stocks got a bounce and the ones that were -- act vision is an exception probably going to hold those gains. >> that's true well, i hope you enjoy your lovely long weekend. >> you, too. >> michael, thank you. "fast money" starts now. live from the nasdaq market side, i'm melissa lee. your traders are pete, brian, steve and guy. tonight on fast, earnings, viacom, weight watchers, shake shack. the stocks are active. we'll tell you which ones could be worth your money. morgan stanley has a simple strategy just keep buying the strategist behind the call where tell us where he sees value now and later, it's been a record breaking year for the market and one thing that's been
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