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tv   Worldwide Exchange  CNBC  May 3, 2018 5:00am-6:00am EDT

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i'm courtney regan it's 5:00 a.m. here is your five at 5:00. the u.s. trade delegation is in beijing at this hour talking tariffs. tesla shares take a nosedive as elon musk hosts a bizarre earnings call. and spotify drops after reporting a quarterly loss chinese smartphonemaker xiaomi pls to go public. and goldman sachs bething on bitcoin by opening a crypto trading desk it's may 3, 2018 "worldwide exchange" begins right now.
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♪ good morning welcome to "worldwide exchange," i'm dominic chu. brian sullivan is on assignment. let's check the early market action as you can see behind me, some of the futures picture points to a more mixed open. fractional gains and losses for the major indices. the dow slated to open up 2 points, the s&p by a single point. the dollar hitting at the highest level of the year. if you look at some of those moves, we are seeing a pullback from those levels. dollar weakness across the board for the major pairs. euros now, 119.78. dollar/yen, 109.64. the pound 1.3573. courtney mentioned tesla, we have spotify and square down big
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right now. kraft heinz a bright spot. we'll have more on all of those names coming up. thank you very much. we're following a developing story out of china a u.s. trade delegation led by steven mnuchin arriving in beijing for key tariff talks let's get to eunice yoon live with the latest. >> thank you very much secretary mnuchin and his team are in meetings with the chinese after a briefing with the u.s. ambassador the team was greeted by the vice premiere and the chief of the chinese delegation, and not only that, he's also seen as president xi jinping's right-handyman man on the econ. these are high-level meetings, that's because a lot it at stake. both countries have been threatening to impose tariffs on tens of billions of dollars of goods that pass between the two
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countries. the chinese have been sending a lot of mixed signals in the state press and in official statements on the one hand, they're saying that they're conciliatory. for example today in the china daily there was an editorial that ran with the headline the art of a deal is when all parties are happy with it. on the other hand issuing strong statements that beijing is not going to back down so on state tv today, they were reporting that chinese importers have completely stopped buying american soybeans in the past two weeks, even though a tariff has not been imposed there are some serious concerns that a deal is not going to be reached at the end of these discussions. not only are they hitting some very important issues, like secretary mnuchin has said before that he wanted to bring up forced technology transfers or china's industrial policy, which to china is seen as a core to its nationalist economic agenda because of the timinand how
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these discussions have bee ing, they raised doubts among chinese officials. i spoke to one chinese official involved in trade negotiations in the past, he said that there was just no preliminary work, and not enough for working level people to really know what was going on and what the u.s. really wants so for that reason as well as the fact that the team will be leaving in 24 hours, there's question marks as to what can be achieved >> thank you very much, eunice we'll check back in with you soon for now let's bring in gordon chang, author of "the coming collapse of china. so eunice said the chinese officials are perhaps sending out mixed messages, some conciliatory tones, some signs saying, no, we're not negotiating. the u.s. holds the upper hand here, right? what do you expect to happen >> we all hold the upper hand.
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our economy is bigger. 19.4 trillion. theirs is 12.8 if you believe the numbers. the more important thing is they're so dependant on us last year 88.8 % of the overall merchandise surplus related to sales to the united states we're a trade deficit country. if the normal rules were to apply, we could push the chinese around the question is political will and when you have such a big delegation going to beijing, it signals to the chinese that we believe we have a weak hand. so i believe the way this delegation was misconceived. >> gordon, the strategy you think is misconceived. how we executed this move. how should we have done things if you were the one putting this whole plan together and advising president trump on what to do with trade into china? >> i would have let the chinese come to the united states. let them send an enormous
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delegation to washington they want to talk to us about tariffs, other issues, yeah, you can come to the american capital. this looks silly when you have all of these people, two cabinet secretaries, the u.s. trade representative, our friend, larry kudlow, and, you know, peter navorro. who else do you want to come to the chinese capital? it's wrong the chinese say this is not about tariffs or trade it's about the future of china if it's that important to them, it should be that important to us >> it doensd sousn't sound like have high expectations about what's to come >> there will be some concessions on the part of the chinese. things they would have done any way. >> like? >> they needed to open up their financial sector they have a debt crisis. their debt to gdp ratio is 350, maybe 400% because it number has been going up very fast because they've been accumulating debt at the pace of about 20% year over year the real gdp growth is maybe
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two. our economy is growing faster than theirs. so, yeah, they got to open up their financial sector so we can finance their problems >> gordon, what's the next milestone? as we look at the bigger picture for trade talks with china, what's the next success point or failure point that you kind of look at for how these things are progressing? >> that's a great question i don't know the answer. you have a willful chinese leader, a determined chinese political system and president trump on our side. and, of course, the midterm elections. that's a volatile mix. i don't know where it goes from here except maybe some real minor concessions. then more u.s. trade friction. they're taking 2$225 billion a year in ip even if it is not at the top range, it's a lot of money we've got to do something. there's going to be a problem down the road.
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but where it's going to be in that mix of time frame i don't know >> appreciate you being here with us today, gordon. giving us a lot to think about thank you very much. >> thank you. in corporate news out of asia, china's xiaomi filing for an ipo the smartphonemaker could raise up to $10 billion that would be the largest listing by a cli the chinese tech firm in four years. tesla reporting its biggest quarterly loss ever but still less than wall street was expecting. the electric carmaker lost 7$784 million last quarter, revenues rose, but the cash mile dwindled to 2$2.7 billion tesla says it is sticking by production targets for the model 3 sedan and the company plans to restructure to help cut supplier costs. look at what happened to the stock in after hours it took a nosedive you can see it clearly on the chart as elon musk host ed what
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many are calling a bizarre earnings call. let's get to contessa brewer with more on what happened there. >> that wasn't the only adjective used to describe the call elon musk had a contentious earning call the q & a session began, musk cut off several analysts mid question when bernstein attempted to ask about capex spending, musk interrupted him by saying next when joef speseph speck asked at model 3 deliveries, this is how musk responded >> we're going to youtube. sorry. these questions are so dry >> musk then turned to a 25-year-old youtuber who tweeted at him on monday asking whether he could pose a crowd source question on behalf of retail investors. during the call the amateur analyst appeared with elon musk
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and he also appeared on closing bell yesterday musk allowed not only one question from gali, but about 20 minutes. he cut off actual analysts during that period musk attacked the media. musk took a few final analyst questions, and then took a slot at investors >> people are concerned about volatility, they should not buy our stock. i'm not here to convince you to buy our stock. do not buy it if volatility is scary. there you go >> tesla shares originally rose when the company reported results, but look what happened during the call, a decline of 4%, down 4% in extended hours trading. the analysts are very concerned about this there are calls this morning, editorials saying elon musk needs to grow up this is a publicly traded
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company, you can't treat is as though you're the founder of a small startup. >> it's not just that. he's talking about just investors, day traders, if you don't want it, don't be in the stock. east not even talking about the short sellers, or the people out there borrowing stock to sell and cover it later >> but how about the analysts asking basic question about gross margin >> and there are editorials this morning pointing out the inaccurate statement there's a elon musk has made and the way that moves markets, and the responsibility you have as ceo to give out accurate information about your publicly traded company. also real questions about how much cash the company has burned through the last quarter they neglected to offer those details in the report. >> legitimate questions, and jeff bezos has not been on the call in years. elon musk doesn't have to participate in he doesn't want to answer some of those questions, though we do want to hear from him.
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s adidas reporting better than expected first quarter profits sales grew in china and north america even as the reebok brand continues to struggle. on the call, adidas' ceo says he doesn't see a major impact from any potential u.s. tariffs on china. shares of spotify are taking a hit in the company's first set of results since its market debut last month the streaming service posted a net loss revenue was in line with foreca forecasts. spotify added 4 million new paid subscribers, bringing the total to 75 million. it expects that to rise to 79 to 83 million this quarter which is short of estimates square reporting a wider first quarter loss they ramped up spending on product development and marketing. square said they would continue to invest big sums into the payment business shares are off by 5.5% we are just getting started here on "worldwide exchange. on deck, we have earnings and
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your money we're seeing some big beats, but the stock market doesn't seem to care we're breaking down why after the break. and later, love on the links. justin thomas helping a fan put together a magical marriage proposal, and it was all caught on tape. chgelddetage when "worwi exan" comes back hey, want the fastest internet?
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stretch of earnings season we're already over the hump. nearly three quarters of the s&p 500 have recorded results. 77 have beat earnings estimates. 73% have beaten revenue forecasts. that's well above the historic average. you would think that would be a big boost for the stock market, right? everyone is beating. it has not been. since earnings season began, the s&p 500 is down a quarter of a percent. so joining us now is lindsay bell, investment strategist at cfra research. linds lindsay, is earnings season the big driver that we have to pay attention to right now it seems as though people just don't care about the fact that companies are posting double digit earnings growth, sales growth is robust and everyone is beating. >> i wouldn't say no one cares but i would say investors are taking this opportunity, especially when you see high-quality beats where they blow numbers out of the water
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and raise guidance, i see the stock pop initially. investors are selling that they're taking profits, maybe even rebalancing portfolios. really what's happening here is there's a bigger issue at hand investors are concerned about that big 20% earnings growth we're supposed to get in 2018. they want to know what will derail that. you covered it at top, the biggest concern is the china trade war. add to that geopolitical concerns, skittishness around inflation and interest rates, you have an investor concerned about the future >> that's enough to change the course of the stock's direction even intraday. so you had that initial pop, then it sells off. it's the -- that's because they're selling off, taking those profits, worried about the future that's enough to do it in the middle of a session. >> exactly on average, if you look at the 74% of companies, of the s&p 500 that reported on average, the 24 hours within reporting, the stock has been about flat, which
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is unimpressive. that's if they beat on the top or bottom line imagine if they miss on either of those lines, the stock is going down more significantly. >> lindsay, as we talk about, we know the overhangs if it's china tariffs, if those things get removed, arguably the markets have some runway to go higher what is the current market action telling you about the sentiment, the overall feel of the market is this a situation where things have topped out? >> i think what you're seeing is investors are definitely a bit skittish and concerned here. i think that maybe the market could be range bound for -- until we get past some of these major concerns but we're also in a seasonably weak period for the market this is the sell in may period that everyone talks about. also we're in a midterm election year, which typically between may and december you see the market decline about 3%. it's a weak period of time for the market in general. but the good news is once we get
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past those midterm elections, past the broader political issues, the market usually increases about 16% from november through the next 12 months >> a lot of earnings are over, but you know the retailers, we have a lot of those left to go there's a lot of volatility there or has been. >> always. thank you for joining us, lindsay. still ahead on "worldwide exchange," fake news that's what tommy hilfiger is calling the death of the consumer more of his comments when we come back.
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welcome back let's check on what's happening with krcryptocurrencies. bitcoin down to 9,190. ripp ripple down a percent. ether up 3 points. and litecoin down about a quarter percent. goldman sachs is launching a bitcoin trading desk the new york times is reporting that within coming weeks goldman will start using its own money to trade bitcoin futures contracts on behalf of clients the move comes weeks after goldman hired a crypto trader to
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head up its digital assets team. what is crazy about this situation, we know there are many strategists out there who say this is all going to go really, really wrong in coming months these prices will drop yet you have well established investment banks with huge track records, not just trading their own money but client money, doing all of these things. win kcrypto you have to wonder f there's an overall view or if they're putting their flag in the ground somewhere to see what happens. it's like a land grab. >> is it possible when goldman enters it, it legitimizes it and calms the water a bit and maybe, because they're such a big player in general, they could change the tide? i don't now. >> could be. it's all about sentiment now still much more here on "worldwide exchange,"obviously beyond crypto. more on tesla's quarter and the earnings call that everyone is
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talkinabt g outoday. we'll be right back.
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welcome back to "worldwide exchange." this is your morning's headlines. this morning rudy giuliani is making headlines after he made a stunning revelation when speaking to sean hannity giuliani revealed what happened after that $130,000 hush payment to stormy daniels was
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facilitated by michael cohen days before the 2016 election. cohen was reimbursed by the president himself. >> that money was not campaign money. sorry. i'm giving you a fact now you don't know it's not campaign money. no campaign finance violation. so -- >> they funneled it through a law firm >> funneled through a law firm and the president repaid it. >> so far this morning the white house is declining to answer questions related to giuliani's comments, instead referring us to outside counsel nine members of the puerto rican national guard were killed in georgia when their cargo plane crashed shortly after takeoff bursting into flames no one was hurt on the ground. officials say the c-130 was decommissioned because it was one of the oldest in puerto rico's inventory. and three americans detained in north korea could soon be free they've been held captive for
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month, and their release could serve as an olive branch the son of a detainee said we look forward to all the families being reunited soon. dom and courtney, back to you. >> thank you very much, frances rivera. we are coming up on 5:30 a.m. here on the east coast. here is what's happening right now. wall street in a holding pattern as investors digest a huge batch of corporate earnings results. conference call crazines tesla shares take a nosedive a elon musk hosts a bizarre earnings call. and love on the links. the golf course marriage proposal that is getting lots of buzz today it's thursday, may 3, 2018, you're watching "worldwide exchange" on cnbc.
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welcome back to "worldwide exchange." >> let's check the market action and bring you up to speed on what's going on. the futures picture is pointing to what could be called a more tepid open we see the s&p 500 slated to open up by just a single point if things open up the way they are now. the dow up by 14 points. the nasdaq by 13 let's look at what's happening with the treasury complex. we know the ten-year treasury note yield has been a focus. we got back towards that 3% mark and have now pulled back the last trade there, 2.95%. two-year note yields, 2.47, 2.48%. >> let's check on asian equities there's a lot of eyes focused on what's going on between the u.s. and chinese officials as the talks overtrade occurs right now. you can see it was a mostly lower market for asia overnight. you have the hang seng down by more than 1% the shanghai was up about 0.6%
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xiaomi filing an ipo application in hong kong that's among the biggest corporate news happening out of asia let's check europe lower in the early going insurance, household goods were down the most in early trade slight gains of the ftse 100 just about flat. you have the xetra dax down about 0.2% the italy ftse mib is down about 0.4% a lot of watchful eyes in the european union about the trade talks in the u.s. and asia and china as well. >> as for the broader markets, check out oil prices we are seeing a bid this morning. wti crude, that u.s.-based benchmark, $68.14. that's about a third of a percent to the upside. brent you'd futures, up bay quarter percent as well. as for what's happening with the dollar, we have seen near term strength, a bit of a pull back
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today. euros have tallefallen eurozone inflation had slipped a bit in april gold prices, let's look at those. we are now moving on gold, up 0.2% 1313.80 the last trade on gold joining us now on the cnbc news line is guy adami. good morning to you. as we talk about earnings season, we're in the waning hours, if you look at the overall picture for it things are good. is that, in your mind, still what's driving the market action mostly >> no. if you look at it, earnings have been good. everybody, 2 1/2, 3 weeks ago said the catalyst to take the market to new highs would be a great earnings season. in large degree you've had it. i'll give you a great example of
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great earnings, bad price action go back about four days ago or so, look at the intel report i think universally that was looked at as one of the best reports of the quarter stock had the initial move higher and then sold off in a meaningful way when you see good news and bad price action you have to ask yourself what's going on listen there are a lot of headwinds out there. people either don't see them or refuse to see them the fact that the s&is still hovering around this 2650 level without bounce now literally since late january or early february has to give bulls pause given what's been a robust earnings season. >> guy, we her from the fed yesterday. rates unchanged. inflation close to the target were the fed's words, but not a lot of clues if they're going for the fourth rate hike if we don't get clues that they're going for that fourth rate hike, do you feel the
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handcuffs come off equities and gives them more room to move higher is that one thing holding equity growth back? >> i think that's the hope i think the bull camp will say the fed will not be as hawkish this year. my push back would be this fed clai chairman, powell, does not seem to be as concerned about affecting the market as the previous two fed chairs. he seems to be more stringent, i should say, or just doesn't seem to take it into account. that's a good thing. i don't think the fed should care what the market will do so i think that fed put which has been in place for the last eight years, i'm not certain it's there anymore maybe the market has to find out the hard way again, you know, we're not -- if you want to see something interesting go back to february 10, 2016 when the s&p 500 traded down to 1810, bounced, never looked back. that was sort of that v-shape
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bounce that people were looking for. you go back to this february and see where it went and where we are, you are not seeing that you're seeing a market that's barely getting out of its own way. i think that has to be a concern. to your point, people are looking to the fed for air cover. i don't know if they have it >> one last point for you here, as you put your trading strategy out there. what exactly would you be looking for with regard to tea leaves out there that will signal more down side for the markets or that bid coming back again? >> one word, banks people have said -- i'm one of those people, the landscape for banks is outstanding and the fact that rates are moving higher should be somewhat -- it should be a tailwind to banks. look at goldman sachs for example. good earnings release, bad price action the banks have not traded well if you're losing the leadership of the banks, and if technology,
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you know, ex apple is waning, there's some great reports in tech, bad price action, you have to be concerned. to answer your question, you need leadership in banks, you're not getting it >> you're concerned or frustrated >> it's 5:30 in the morning, what do you think? >> got it. thank you, guy we'll see you later today. appreciate your insight. >> bye, guys let's switch gears to retail brian sullivan wrapping up at the milkin institute where he caught up with tommy hilfiger to talk about the future of retail. >> we are cnbc, we talk about the economy, the consumer, as you know, all the time 10 being spectacularly good, 1 being the great depression, how do you see the consumer? >> i believe the consumer is at 11
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i'll tell you why. we're looking at the global consumer do you know in china there are 500 million emerging middle class who only want to buy brands want to buy foreign brands and known brands for us we're seeing momentum all over the world i don't subscribe to the fact that retail is dead. stores are going away. the apparel business is no longer in existence. our numbers prove that that is all wrong. >> you can see the rest of that interview on our website, cnbc.com let's bring in stacey widlitz to talk about that. of course they will say the death of retail is greatly exaggerated. clearly he has a big stake in the game you and i watch retail closely, too. we want to see signs of success. is he too optimistic
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>> you know what in tommy hilfiger's case, he's not too optimistic because they are the poster child for a brand that has turned themselves around, made themselves more relevant through collaborations with gigi hadid, they did runway to store they're doing what every brand out there should be doing. when we talk about retail in general there are the haves and have-nots. >> let's talk about that we know who the have is. we mention them all the time, amazon, online, everything else. as you look at where the prospects are, how do you segment out who the haves are and why they have, and who the have-nots are and why they don't have what the other haves have >> that's a lot of haves i think very much if you look at retail, it's brand turnout oriented i think if you look at the
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discount space with walmart, walmart has had this amazing run. they have gotten their stores together you look at the competitive environment and say lidl and aldi are causing more problems for walmart, the space is getting more competitive on the positive side walmart is getting rid of its relationship with -- not rid of its relationship, but in the uk sainsbury is combining freeing them up to do other things like with india and flipkart or a potential healthcare deal. there's so much going on in retail, so many moving parts, it will be interesting to see the haves who they team up with in the long-term. >> i would like to wrap up on that point about walmart in india. a lot of reports saying flipkart is in high demand by amazon and walmart. reports seem to suggest that the
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regulation hurdles would be lower for walmart. it is a big deal if it goes through. even if it's a majority stake, it's three, four times the size of jet why could india be important if you're a walmart investor, why do you need to watch this closely? >> it's a massive market it's the next big frontier for retailers. now that the market has opened up, and it's easier for foreign companies to come in and form relationships, it's important that big retailers get this right and team up with correct partners it sounds like amazon is increasingly going to go it air lone alone in india if walmart can form this relationship with flipkart, that's a huge win for them globally and time to cut with places like the uk, which is 4% of their opportunity and focus on india
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>> they have struggled to make a foot hold there because of the foreign direct investment restrictions in the past thank you very much, stacey widlitz. >> thanks. courtney, some other stocks to watch today, sprint posting a net annual profit for the first time in 11 years the wireless company adding 39,000 new paid customers in the quarter and announcing that the ceo will step down an be replaced by the cfo. shares are up by a half percent in extended trading. shares of kraft heinz popping after reporting mixed results. profits grew 8% last quarter kraft pointing to higher prices and lower taxes for that profit beat those shares up by 4%. and fitbit sales fell for a sixth straight quarter and missed forecasts the company sees weak tracker sales hitting second quarter revenues as well as a result shares are down by
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6% in extended trading time for this morn's top trending stories we kick it off with a big update to a story we brought you a few weeks ago. the city of philadelphia reaching a settlement with two black men taken into police custody at a local starbucks the men have settled with the city of philadelphia for $1 a piece. the city is promising to contribute $200,000 to a new high school program for young entrepreneurs. the men reached a financial settlement with starbucks itself >> unfortunate incident. but i think starbucks did as much as they could have done >> a lot to of apologizing publicly >> tackling it trying to fix problems we'll see if it works. unfortunate situation. hopefully a small resolution. the wells fargo championship tees off today, but justin thomas has already won in the eyes of his fans during a practice round
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yesterday, thomas stopped to talk to a fan and assisted in a mrarnlg propo marriage proposal. thomas handed over a glove and a ball which said will you once the bride to be figured out what was going on, she accepted the proposal, and thomas offered the happy couple tickets to the tournament as a wedding gift >> look at that. group hug. >> congratulations to the lucky couple >> way to go >> still to come on "worldwide exchange," hitting the brakes on tesla. shares of the company are falling as elon musk hosts a conference call that has everyone talking today we'll have a recap when "worldwide exchange" returns after this break ahh... summer is coming.
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what's the value of a walk in the woods? the value of capital is to create, not just wealth, but things that matter. morgan stanley welcome back tesla topping expectations despite reporting its biggest quarterly loss ever. the stock took a tumble as the earnings call got under way. phil lebeau was on the call. by the way, the only journalist to get a question in thanks for joining us early today, phil. what happened? bizarre. we'll separate the story into two pieces here. we'll get to the circus, but first let's talk about the numbers. that's what investors should be focused on despite the fact that elon musk called some of the questions boring, not cool
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cash flow is what everybody is focused on here is elon musk talking about his belief that they will be positive cash flow in the second half of this year. >> i'm feeling quite confident about achieving positive cash flow in q3 this is not a certainty, but it does appear quite likely in my view >> couple other pieces of news elon musk said the company is looking at restructuring in the next month its sfpl supply chai. it was a vague answer. margins are improving, they believe they can get into 25% or high 20s when they finally hit the target that they're looking at and the analyst questions, this is where it started getting bizarre. about 25 minutes, 30 minutes in, he said these questions are too dry. let's move along to a retail
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investor picked out by tesla to ask questions. elon musk also blasted day traders. here's what he had to say, if you don't like what happens with tesla stock. >> people are concerned about volatility, they should not buy our stock. i'm not here to convince you to buy our stock. do not buy it if volatility is scary. there you go >> he also blasted the media, and then he made it clear that he was done with analyst questions. at one point saying, come on, man, this is not cool. these are boring, bone head questions. tony sakanachi who had the question about order force the model 3 out with a note saying tesla's earnings call raises more boring and not cool questions than it answers. >> phil, first of all, ae lelons is a founder/ceo that has the
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same kind of lightning rod aspect to him like others do jeff bezos back in the day had the same thing where people gave him runway because he was a visionary, he was doing big, great things is this a sense now that elon musk will get this what i get the sense of is there are no normal traffickers of tesla stock. either you are very, very bullish on them or very, very bearish on them. >> exactly if you read the twitter comments afterwards, i heard them all last night i had people tweeting me saying this is good this is what elon musk should do because the analyst and journalists are doing nothing but asking repetitive and stupid questions. i should be doing this this does not change your opinion. you believe in elon musk you will go to the mat with elon musk you love he's throwing it back in the face of analysts by calling their questions boring and bonehead and saying they're too try.
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if you're a skeptic, this is another example where you look at elon musk and say this guy is a carnival barker and investors will eventually pay the price. we have not seen that yet. tesla shares, every time people have said they will fall, they have not fallen. they have outperformed generally speaking i don't think we'll see any difference in that regard. there's no doubt that analysts who are listening to this call, they were blown away by the fact that all they were trying to do is get clarity on profit margins, scalability of the model 3 and were told your questions are boring, not cool >> my goodness, boring, but very important. you have to understand the financial implications of these big decisions. >> courtney, you know this earnings conference calls, they're not supposed to be a big song and dance they are, by their very nature, there's a lot of boring, you know, very in the weeds questions in there
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that's the nitty gritty that investors want that's what earnings calls are for. for a lot of analysts, they're saying you left us with more questions than answers forget the side show and you threw it in the face of people, you did not give us some clear answers we wanted when it came to model 3 scalability, profit margins, et cetera >> he may be warning people about the volatility of the stock, but his compensation is tied to that you can't imagine he's not paying attention to it himself thank you very much, phil. thank you for joining us congratulations on sneaking in a question on that call. >> it was a circus >> we're approaching the top of the hour, that means the not boring team at "squawk box" is getting ready. joe kernen is in new york, times square, with a look at what's coming up. >> i was trying to get to speed on that call as well nice that phil came in so early.
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musk loves to talk about the future that car could be a game changer. the price has been creeping up on this one, too i understand how those nagging questions of, like, running out of cash, why won't you raise more cash now that you can, to a visionary they are annoying probably three months what if you're off by three months? already it's happened a couple times. i can see elon musk's point but also how people want to -- if you have a lot of money on the line, it makes a difference. reminded me a bit -- i remember steve jobs walked off -- bruce francis, one of our tech reporters. don't know if you were here, but bruce walked off the set and said i don't like that question and left we ran that a few times.
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i'm thinking about tequila today. >> wow it's before 6:00 a.m already on your mind >> it's almost cinco de mayo >> that's why. tequila season we have the ceo of avian coming on i remember when this was introduced, now it's taken some awards that maybe would have thought patron had people talk about avion. she says it is the papi van winkle of tequiltequila. you guys know what that is >> i'm a bourbon drinker >> i know what that is >> i never had it myself >> hard to find. >> really expensive. i googled it, found out all about it the other thing, courtney, you got married not -- been a while now. how about a registry where everything is online that you need so you don't have to go to some store you never heard of.
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that's a big business. we have the ceo of zola -- >> yeah. >> you heard of it >> we didn't register there, but heard of it. >> between tesla, pappy van winkle and zola, a lot of research, which i don't like i'm like elon musk i want to talk about the singularity or something. >> thank you very much >> dom, how did you do did you break 90 >> i will tell you after the show, i have some stories to tell you joe kernen, thank you very much. "squawk box" coming up after this show. here on "worldwide exchange," we are talking fed fears, stocks ending the day lower yesterday after the policy announcement. what you need to watch when the ll rgsbein today we'll be right back. i'm not a bigwig.
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need a change of scenery? the kayak price forecast tool tells you whether to wait or book your flight now. so you can be confident you're getting the best price. giddyup! kayak. search one and done. welcome back to "worldwide exchange." let's bring in pimco's ton tony cranzeni. the 3% on the ten-year is something we talk about a lot. we crossed over it we're back
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below now. what's your action plan? >> there's much to do about 3% it's interesting in comparing it to the last time the u.s. ten-year hit 3% in 2013, the markets expectations about what the fed will ultimately do is different. so investors should be less fearful. in 2013, markets thought the fed would eventually raise the policy rate to 4%. today markets are thinking in the next five years it won't go higher than about 2 3/4% this 3% is different than the last the action plan is to first investors should be looking at core bonds, which is a conglomerate of bonds, you could say, like the s&p 500 of bonds the yield on the barclays aggregate, key cage of this, is about 3.3% today money managers like pimco are able to achieve alpha. if they do, like pimco has, this means the returns for investors probably will be in the 4s, which is not bad for an
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investor >> tony, thank you very much i hate to cut you off, my gosh we're out of time. it's timfoe r "squawk box. "worldwide exchange" ends right now. thanks for being with us crest glamorous white whitestrips are the only ada-accepted whitening strips proven to be safe and effective. and they whiten 25x better than a leading whitening toothpaste. crest. healthy, beautiful smiles for life. ♪ with expedia you could book a flight, hotel, car and activity all in one place. ♪ show me the billboard music awards. the billboard music awards knows how to party. [ cheering ] what up, dog? show me top artist. unbelieveable. i've got my whole family up here. look at my dad looking all sharp. with just the sound of your voice, xfinity x1 gives you a front row seat to the billboard music awards, including throwback clips from some of your favorite artists.
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good morning boring, bonehead questions are not cool that's what elon musk told analysts on the teleconference call the stock is falling sharply. overnight a chinese smartphonemaker filing for a big ipo. and president trump's trade team arrives in china. what'she docket and what i could mean for the stock market. it's may 3, 2018, "squawk box"
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begins right now ♪ live from new york where business never sleeps, this is "squawk box. good morning welcome to "squawk box" on cnbc. i'm melissa lee along with joe kernen and mike santoli. becky and andrew are on assignment becky will be back tomorrow with from the berkshire hathaway koc conference call. and on monday, the berkshire summit let's take a check on the u.s. equity put pictufutures. we will some slight gains on the back of the fomc

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