>> finding the puddles >> i love to do this i love to drive through puddles. i don't do it where people are in the way oops, i didn't see you there >> thanks for watching power lunch, everybody i'm wilfred frost at the noouvg stock exchange. goldman sachs these the trillion dollar figure investors should be focused on has nothing to do with apple new drama in the trade war saga as president trump vows to stay the course on tariffs and now auto tariffs on cars made in canada could be play illume nuhitting an all-time high today

i'm michelle caruso-cabrera. there's a rise in snap chat dysmorphia here's a hipnt more on this trend coming up "the closing bell" starts right now. good afternoon and welcome to "the closing bell." welcome also to michelle caruso-cabrera let's check in on the markets before we get to all those individual stories the dow swinging more than 150 points on trade. the nasdaq inpace for its fift straight day in gain we're up around 0.3% for the s&p. nasdaq a full 0.5% >> a pretty indecisive day just far. cnbc bob pisani is watching this up tick and what it could be for

the year >> goldman sachs estimates buy backs could hit a record $1 trillion this year, a rise of 46% from last year a part of is due to tax reform, but revenue growth has also been a big contributor. here's the good news, august is the most popular month for executions it's even possible this recent rally is partly fueled by those buy backs. the buy backs blackout period has also ended for the companies. also the tick companies will benefit from the buy backs tech is accounted for 40% of the year to date repurchase authorization. not all buy backs are created equal. while some companies are indeed reducing their shares, apple is the great example by about 5%, five year chart, share count reduction for apple.

also at the same time they announce the buy backs so in the long run it's a wash and the share count does not actually go down pay attention to that. so far this year the total share count reduction has actually increased by 0.5% here and so they take away on the back end what they add on the front end by giving more options to their executives here it's a little frustrating if you're following the whole game. back to you. >> bob, when we consider the question of sector leadership you and and discuss regularly, has that been influenced do you think by buy backs already have wenot already seen the sort of bounce back in stocks if not for buy backs? >> there's no doubt techs have been helped a bit by aggressive buy backs from the tech companies.

to the extent that the corporate buying is the marginal buyer in the united states, that mutual funds for example either neutral or net sell, yes, definitely the more companies buying back their stock, the more influence it has on the market >> great stuff thanks very much see you at the close saying, quote, i think rates should be 4% today you better be prepare today deal with rates at 5% or higher it's a higher probability than most people think. and just last week of course i sat down in an exclusive interview with dimon and asked him about rising rates here's what he had to say. >> i personally think ten year bonds are going to be going up, not down with inflaegz of 2% it would be 4% we've had a suppression of rates for a better part of a decade around the world those things are reversing, but

so far to good effect. which is global growth is going to be strong for a long period of time. in america it looks like it's currently accelerating >> the u.s. yielding 2.9%. he did an interview with me at the aspen institute over the course of the weekend that one risk to markets is that rates could rise faster than people are expecting. but the conclusion is global growth has been stronger for a decade and overall he's encouraged >> and we're always worried about the flatlitening of the yield curve. it's what we are always wringing our hands about lately >> ultimately i think he's optimistic and positive.

>> gordon, what do you think i so long interest rates have been going down. now we're told eventually they're going to go up but suddenly we're worrying the yield curve is going to go up. >> i think it's a sign of a healthy market if you look at the way this whole bull run has been triggered by low interest rates, maybe these prices are somewhat elevated so to see that the market is staying where it's staying and the rates are going up is an encouraging science and speaks to what you were talking about before, wilf, about global growth and the overall strength of the economy >> what's your view on this? do you think rising rates or trade is a bigger threat to equity markets >> i still think rising rates are a bigger threat. and i actually agree with jamie. he mentioned suppression rates i know we all talk about but it

seems like we forget when this conversation comes up. central banks around the globe have bought government bonds with the expressed intent of lowering interest rates. but they've all taken their foot off the accelerator at different paces. once upon a day janet yellin np september press conference suggested federalties -- so perhaps he's taking 3 plus 1 equals 4 >> what does that mean for the stock mashlgts if we start to see yields go to 3% or 5%? >> simply when bond yields are low stock pe yields are high and now bond yields are rising

stock valuation is not -- so i think it's going to be still rising stocks because the economy is higher. but the degree of rise is going to be less than it has in the past >> do you think we're now in an environment where the dollar will strengthen even without more rate hikes simply because there's room for other currencies to soften >> i think the fed path does aid in certain ways although it's not a path every central bank finds itself on. look at where the pound is trading today. but, wres, i think that's part of it and i do think all the other currencies of the globe, particularly chinese currency, since may of '17, they are contributing and it is a deflationary issue

with respect how it comes to our shores and of course it's going to be something that multinationals have to contend with and the trade issues of which they are very wrapped up in the same issueoffs globalism to be sure i think the dollar is going to keep going it certainly looks to me like the euro and pound will have enough force on the counselickee down side i don't know right around 100 >> gordon, you start to have winners and losers when you have a strong dollar and one that's not anticipated to move higher >> i think one of the things we're seeing here with the attempt by the administration to deal with some of the trade issues that we've seen overseas, that you're starting to see american equities becoming the place people want to be. while they're obviously going to be affected by certain currency

fluctuations, i think by and large the fact tat the interest rates are going up a little bit and the currency is fluctuating is still not going to be enough to derail what we see right here, which is full retrace back to the january highs >> what do you think about the commodities at the moment and what does thatm p imply for the equity markets >> the sense people are not running to them because of concerns that the equity market is going to turn around, i think these are other indicators that we are in for, you know, slow and steady here. the escalator is just going along nice and easy. no sign of anything to slow us down right now >> i'll ask you a further question along those lines when you see what's happening to copper, does that milwaukee you nervous at all a lot of people look at copper and say there's something bad

going on in the economy when you start to see copper fall as it has. >> when you talk about small caps in the u.s. outperforming commodities, underperforming, those things to me appear to be trade concerns, which i'm not for sure have yet really impacted the economy i'm not sure they're indicating anything market wise i still believe it's very much negotiation that ends with some sort of settlement and if it doesn't it causes market concern i think the president will pull back on his ret rhetoric. now a management change has occurred at pepsi. we'll look at both of those developments coming up and president trump tweeting that his tariffs are working, quote, big time. we'll talk to former u.s. trade

rep ron kirk about whether or not that's the chase and get his res.tion to the latest trade that and of course we'd like to hear from you "the closing bell" is back right after this break alerts -- wouldn't you like one from the market when it might be time to buy or sell? with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time.

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click, call or visit a store today. welcome back we've got a market flash on t-mobile and sprint. and seema mody has the details >> sprint and t-mobile deal still in early stages of regulatory review. and no decisions yet that according to reporting from reuters, both stocks are now pairing gains after bringing up in a separate report that the doj had been allegedly open to a three wireless player landscape that would essentially encourage competition. but this report from reuters now throwing cold-water on that second report. just about 3% off its session hays there's a shakeup at

pepsico. joining us now to discuss is maria brennen president and ceo of women and cable cell communications, maureen. lady and gentleman good to have you here i'm the girl on the set soi have to do the whole segment about why there aren't more women doing these things why do you think we've lost a woman ceo at one of the biggest companies in america and are we going to see an improvement in the numbers? >> is that for me? >> so i'm -- >> it's for maureen. >> so i am optimistic in the change in the numbers. there were a flurry of numbers today. i know we're down in the number

of women holding ceo positions what has changed, me too has change they've participated in womens march, both men and women. and i think they're going to see an association with their wallets. so i'm optimistic ayou may see a change maybe not from within but from the company itself. >> is it really filtering into how they pick what goods to buy or sell? >> well, i do. i do agree with maureen to some extent i think we are seeing sort of an unprecedented tide of awareness, the sorts of things that some of the organizations that we work with had recognized for a long time you know, there's wonderful data and empirical to boot that says when you have gender diversity and that includes in a ceo ranks you see companies in general

perform better i also think a little bit of what is in play here, we all go about the glass ceiling, and i think the university continued the phrase the glass cliff and sometimes what you see is you see women being put in positions to be change agents as ceos of organizations that are already suffering. and if they don't have a measure of success instead of it being more about the company they were inheriting and the inherent problems that came with it oftentimes we see it reported as having to do with the gender which of course is a double standard i think plays into it as well. >> maureen, when you look at the degrees women and getting versus men, the vast majority of advanced degrees are going to topics related to education. they're not getting degrees enscience, a lot of them aren't getting degrees in management.

there's a problem with the pipeline, isn't there, just beyond this whole concern maybe there's bias, et cetera? >> so the pipeline i look at to make it more defined the mba pipeline, which is a 40% number. and that almost seems statistically impossible that's why i feel there is a big pipeline coming and these women are more empowered than ever i think we've learned things who sort of came to the table with her raw talent and brains played any card of being female or a woman of color or anything like that i think we've all taken a lesson there. again, i'm optimistic. >> what's your take of industries performing of employing women in top roles.

>> i think when you look at the more successful companies and those that have resources at their disposal, we'll starting to see some certainly some really strong players in that regard i think, you know, much to the point of what maureen just said, we pressure it, women and people of color and things of that nature i'd like to see us really get to a point where everybody is measured in terms of the standard and it becomes just so natural for things to be, you know, look, when you have 50% of the population you would expect that mer than 4 point something% of women running fortune 500 companies, you would expect that number to go higher. likewise when you look at fortune 1,000 company and how they're limited, and the number of women ceos perform, their

performances are impeccable. to some extent it's almost like an education campaign. on the one hand you hear about some of the failings of female ceos, but you don't necessarily hear an equal proportion of the successes like we've seen at pepsi and some of the other companies. >> all right, ladies, thank you so much for joining us today we really appreciate it. all right, so we have about 39 minutes before the closing bell the dow jones industrial higher about 39 points. sea world seems to be putting it its past controversies behind it free beer, new rides and a planned expansion, that story is next following a big second quarter beat illumia has become a stock favorite

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welcome back to "the closing bell." 36 minutes left of trade we are up higher 28 points or so on the dow near the highs of the day or well-off the lows which was 28 points sea world trading higher today afterpiecing a revenues beat this morning the company said it jumped nearly 5% due to positive reception of new rides, attractions and events the stock up some 17% for this

quarter, at least, putting behind some of its recent controversy. >> it had. this stock had a very tough ride for a long time. and it was in the cross hairs of activists and such clearly they've changed the product lines for them to get back in. >> falling today after tariffs could cost at $100 million we noticed the maker of rubber maid products, they make all kinds of stuff they said on the earnings call it was appealing the tariffs and considering alternative sources for materials. but they bring in so much stuff from overseas. they've got candles and clothing products and tons of stuff made overseas >> a painful session for him no doubt. >> cry him a river >> we've got 34 minutes left of trade. it's been a positive session improving throughout the course of the day, and overall we're up

about 0.5% on the nasdaq now, new u.s. sanctions on iran start tonight at midnight. with more to comin' iranians oil and shipping psychiatries. disney is up tomorrow and word is leak out on its content plan to take on netflix. is this at&t innovations? yeah, wow..this must be for one of our new unlimited wireless plans. it comes with a ton of entertainment options. great, can you sign for this? yeah. hey, uh.. what's in that one? that's a shark. new and only with at&t, you can get unlimited data, 30+ channels of live tv, and your choice of things like hbo or pandora premium. more for your thing. that's our thing. visit att dot com.

welcome back to "the closing bell." with 31 minutes until the cl closing bell here's a look at the sector heat map. a vast majority in positive territory. i've got to say there's not a lot of big moves to the upside, either >> a constructive set of charts gaining momentum throughout the day. and real estate the one negative sector today was the best performing sector last week. time now for a cnbc news update. hey, sue >> hello, wilf hi michelle. here's what's happening at this hour, everyone

a historic moment as boston swears in that city's first african-american police commissioner william gross taking the oath this morning he joined the police force in 1985 >> articulate a plan for diversity that includes all of boston, everybody. no walls and to be transparent. it should not be a mystery about how we serve you a harvard study finds women are more likely to survive a heart attack if they are treated by a female physician. experts suspect that female doctors may have a better understanding of how women react during a heart attack. and venezuela's attorney general now says all of the perpetrators of the apparent failed attempt to assassinate president nicholas maduro and their immediate collaborators have been identified opposition leaders warning maduro might use the attack to

further suppress his critics maduro retweeting the video of the attack his communications ministry says that video is authentic. you're up-to-date at this hour michelle, i'll send it back to you. the u.s. will reimpose sanctions on iran at midnight tonight. these are the so-called snap back sanctions that were waived on the iran nuclear deal in 2015 the u.s. withdrew from that deal in may iran's auto and aviation sectors are once again off-limits to individuals who are subject to u.s. jurisdiction. and you won't be able to buy persian carpets or iranian pista pistachios or the company's safras

company'saffron. that's the day international financial institutions corg to the u.s. can no longer facilitate oil transactions with the country. john bolton said today the u.s. pressure is not designed to topple the government but designed to get them to the negotiating table. >> our policy is not regime change, but we want to put unprecedented pressure on the government of iran to change its behavior so far they've shown no indication they're prepare today to do that >> i think it's anyone subject to u.s. jurisdiction so we've got a total, persia, french companies and a lot of them had to throw in the deals because of that factor >> and boeing was never actually able to deliver a plane.

they had trouble getting licenses in the first place, there was pressure from congress having been there, their economy has a lot of issues even if there were no sanctions, price control, the revolutionary guard in control of the economy, so you as a u.s. business person -- not a u.s. business person, but you would have to worry and they're not that interested, by the way, in foreign investment period in the first place. >> some of the more u.s. totalitarian companies have made a bit more progress than that. >> and boeing for sure they had delivered three big planes >> he would welcome talks. no one thought he'd achieve talks with the leader of north korea. is that true that could happen despite the negative rhetoric between the two. >> i think it's absolutely

possible >> and we'll have to see whether the international community starts to come around a little bit towards the president. as we discussed with tony blare on this show a few weeks go he had a strongly worded message for iran, although still said he would have kept the deal >> here's the thing, because of the u.s. dollar being the world's -- the whole world's currency, the u.s. is in the driver's seat. european countries can say, well, we're going to protect our industries but the fact of the matter is if a corporation wants to use the u.s. dollar that're subject to u.s. jurisdiction, and they're going to have trouble. their governments can say whatever they want, but if have to deal with u.s. treasury officials, they're going to make those choices to not do business there. >> and we shall see what will happen we've got 25 minutes left of trade. equity markets are higher. not resoundingly higher but looking constructive the russell is up about 0.5%

shares up by tech company illumina up next we'll talk to the company's ceo about what's driving a boom in genetic testing and what's next in the pipeline and later a new report from tv ameritrade shows retail investors are getting out of disney stock that's ahead of that company's earnings which come out tomorrow

shares of illumina trading at an all-time high. the maker of dna sequences reported second quarter earnings the beat the street and led to several price target boosts on wall street. >> joining us now is our own meg terrell. welcome. >> thanks, guys. and thanks for being here. >> thank you for having me >> let's talk eabout those earnings last week that have driven your stock so much. one of the things they focus on are your consumables were up quite a bit, but they noted china may have been stock up ahead of some tariff concerns.

can you talk about the importance to your business. >> china is emerging as in the last few years it's emerged as a big genomics market. and what's driving the demand in china is really the demand from patients and consumers we're seeing strong demands for researchers working in cancer research, so a rot of cancer testing and also prenatal health so it's seen a big uptick in china for couples that are going through pregnancy. so the demands from consumers for us has been driven by the demand from consumers as well as our strength and position in the market how tariffs has caused some customers to purchase ahead of what they tariffs was going to come in, and that's what we

expected we expect most tariffs will be a bit of a move, but the fundamental demand from china is going to be driven by research and the strength of our technology >> how much would you compare the level of investment and growth you've seen from china versus the united states of course there's been huge projects going on in the inunited states where the government through different projects wants to sequence different americans. do you see growth coming outside the u.s. a lot more 1234. >> if you look at where the numbers are coming from you'll see the demand has been very broad-based. so last quarter the united states, revenue from the u.s. was up 19% and revenue from europe was up 30%. revenue from asia pacific and japan was also up 30%. and revenue for china was up

42%. so you're really seeing strong double digit growth across the regions. you're seeing research across each of those markets be strong. you're seeing clinical oplications also be strong >> one of the stories with your stock, like any new technology, the first products to come out they're really expensive, right? and then you make more and more and your products are getting cheaper. nobody likes the costs going down, but that means many more companies, industries, whatever you want to call it can buy your product. how low can the price go and how pervasive can your genomic testing get? what's your view of how this all goes >> if you look at the first human genome done in about 2003,

it cost about $2 million, and cleary that doesn't scale. we want to make it available to more people around the world and a lot of the in investigation we do has been around to drive the cost of sequences down, make it simp lar to yutz so ituse so it's availao more people around the world in 2017 i talked about the fact we were on a path to get to a $100 genome. we deeply believe in the elasticity of this market and that's what's driven our growth so far and every time we've taken the price down we've opened up vast new applications from genomics

i still believe we're in the very early stages of >> which markets could benefit from this most quickly is the fragmented nature of u.s. health care make it less susceptible. >> there's definitely a regional view on prices and then there's a marbling view of prices. from a regional sper spective certainly as you think about bringing the prices down you are making making genomic testing available to more countries. they're opening up these developing countries that frankly will have as much utility from genomics as anybody else so i think the long-term play is around bringing genomics to developing countries and we are pushing towards that from an application per speskt

what we found is every time we bring prices down we open up new applications if you look at consumer genomics and consumers going out and get genomic tests to understand their genealogy or health traits that's a market that got enabled by lower prices for genomic testing. and the primary markets are again oncology and reproductive health, but if you think of cardiology, cardiovascular conditioness, those are getting opened up. >> have you taken a genomic test >> there is not a single dna test i didn't take >> thank you very much for joining us now a new episode of the profit airs tomorrow night, and it's one of the most heated

episodes yet here's a sneak peek of a fiery visit to an l.a. dog works >> i can make this work with or without you. >> please don't bring my business -- don't bring up my business ever. because i treat my people the right way. >> that was it that was the one thing i was fine until he did that >> i'm just surprised out of everything he said it was like the camping world and the good sam thing. >> because that's my baby. >> marcus raising his voice, i'm shocked. >> you can catch that particular episode of "the profit" tomorrow night 10:00 p.m. eastern time here on cnbc we've got 15 minutes left of trade. s&p and dow lag behind, but all four of the indices in positive

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welcome back to "the closing bell." tv ameritrade index is out and it shows positive earnings spurred retail investors optimism in july >> but where will retail investors look you always have great insight into what the retail investors are doing because you see the fles what do you think that means for this coming month? >> i think the key lesson is the retail investors are confused about whether to raise earning more or the constant headlines more >> trade in particular >> yes, it's this constant back and forth. a couple of things i'll add to that, there were net buyers this month, but with that volatility is one of the factards in our

index so that helped even it up. facebook was on that list to sell five of the first six months didn't show up last month. >> there were certainly some sellers out after that of the other tech names it's familiar names people were buying even more prominently than facebook. >> three tech names that are buyers and i think people are staying with the names that have been successful for them i think one of the interesting things for your viewers they were also buyers of at that point and ford which you may say that might seem strange, but people are going out and saying i can get almost 6% yields here. so it's tech and yield that, you know, really get back to the original question which is who

it seems to be the real areas. >> i want to go back to facebook they were net sellers for five months >> five or six months. >> so they ahead of what was the awful sell-off to what degree we often think of retail being the laggards. they're always behind, the last ones in, the last ones out but that would suggest to me they were behind this trade >> people who plan their vacations longer than they plan investments probably aren't going to make decisions. what we find is if people take the time to engage with the market they're probably making a bits bet r decision because they're more informed people >> talk to us about disney they've got earnings coming utof what are retail investors saying about that >> they were net retailers of

disney and the stock did phenomenal in july with the fox deal, et cetera, there is confusion as to what that means i think that's also a little confusing for people to what are they going to talk about, what does streaming mean for disney obviously with the buy in netflix they have big faith in that streaming, but if you remember last earnings they talked about the fact that easter helped them significantly. >> we've got julia coming up in just a little bit to talk about disney why were they sellers? >> the stocks have made big moves monthly or six month to three month highs there. again our client is acting a lot more like professionals. wal-mart being one that may have

surprised people also. had a very nice july >> always good to have you on. >> always a pleasure to be here, guys all right, we have a news alert on at&t. julia boorstin has the details. >> its filed its brief and appeal in the department of justice to black at&t's a acquisition of time warner arguing the judge ignored economics and common sense to allow the deal to go through it's an 86-page brief. we found some key parts of it. so far they say the doj's contrary conclusion rests on two economic errors. it found to aplea the principle of profit wade maximization. it goes onto say,t quote, the government would argue the maurj time warner would raise the costs of at any time's rival distributors and it said, quote,

the district court erroneously concluded it will not give time warner leverage. it is a pretty lengthy brief here, and we'll be back with anymore key parts. this is ongoing for at&t as it tries to complete that time warner >> the time warner acquisition is completed they completed the acquisition but they're trying to challenge it even after the completion >> at&t stock up about 0.5%. after this short break we'll be back with the closing count down just six minutes left of trade and after the earning we're going toet g reports fr ♪

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you'll know what you're invested in and how it's performing. so you can spend more time floating about on your inflatable swan. [ding] welcome back to "the closing bell." just over two minutes left of trade. let's start with the intradade chart of the nasdaq. we opened a little bit higher and gained momentum throughout the session, and the nasdaq with the best performer and the big indices. but the s&p and dow just a little bit behind but

nonetheless constructive territory. let's have a look at the sectors today. all by one in positive territory. and now telecom has dropped into negative territory consumer discretionary up at the top and pepsi include in that list technology doing well as are our financials and energy. if we have a little look at the dollar, some dollar strengthen to talk of once again today particularly against the british pound which has had a torrid couple of weeks but up about 0.25% today. shanghai year to date it's down 23%, and today down some 20 perts year to date and the daks germany down 2.5% year to date it just puts in perspective whenever people are concerned about trade fears the s&p 500

year to date up 6porous. >> the president noted this, which i don't know if it's good news or bad news but certainly the interpretation has been -- you can debate whether this is the correct way to look at it but that's how a lot of people are trying to spin it the markets are saying they're more concerned about the trade wars notice united states than it is fipt the important thing is broad participation, not tremendous volume at all, but we don't expect that. so in addition to tech which has seen small gains with consumer discretionary, energy and banks this is that rotation we keep talking about. we're also getting new highs in a small number of groups but pharma has been on fire ever sense lly talked about their earnings and hitting 52 week highs.

there's select groups of break outs >> and energy was the worst sector last week it's up today amid new sanctions of iran coming into effect today. there is the bell. the dow up 36 points at the close. the daz nack the best performer. ring the bell alt the nasdaq is safer roads here at the new york stock exchange is frankel. michelle, back to you. welcome to "the closing bell." i'm michelle caruso, cubraro in for kelly evans. dow jones industrial finishing and the russell 2000 at 1,684.

it's going to be a big hour for earnings there you see their preearnings move doctors are calling it snap chat dysmorphia we're going to talk to a plastic surgeon about procedures patients are asking for thanks to the social media services that is coming up. joining us today our cnbc markets commentator mike s santolli leading the dow today was disney while ibm was the biggest decliner on the s&p, newell brands was the laggard. what the message in the markets today? >> the message was in the absence of any real headlines you're well supported by

earnings and it looks like the upward drift the path of least resistance it's almost as if the absence of a negative headline getting in the way means the markets can notch these gains on a day-to-day basis volatility really waning >> and that this comes despite a negative day in asia and flat day in europe. >> we didn't really pick up any of that kind of sell the -- selling snngt overnight. i think friday's job report, the earnings given the reason the credit markets are holding together pretty well to say, fine, the market refused to go down when it was hovering at this 2,800 level at the s&p. very weak momentum i would say >> we didn't have the were

ezabout rising interest rates today either maybe that's one reason why we didn't see the raise in equities >> the ten year treasury is not wanting to move up that neutral rate that long-term picture is what matters not the short-term one what we worry about are the long-term ones that are moving up the qe is onboard to september, so you're absolutely right that's the game and that's what we want. >> what's your take on the fact we've had a positive day for markets despite no particularly good news? >> i think the earnings are extraordinary. not just in the large s&p companies where people worry about trade war issues because about 47% of the revenue comes from abroad. but domestic small cap midcap

continues todries the stellar. the benefits haven't showed up, so that's why you're getting such good action on the russell 2000 we're having a pretty good run right now domestically and i think that's what's holding up the markets. i don't think we're going to do much better than 5% or 6 perts, but that's a whole lot better than you'd think we'd make crazy rhetoric, trading issues, collapsing trade war cur aepss and yet the s&p is bulletproof >> you mentioned dividends there, kevin, and of course it's also looking like it'll be a record breaking year for buy backs which is a rise of 46% from last year merchandise the note attributes part of the effort in buy backs to tax reform mike santollli clearly we're all

ulwarl of buy back risks >> it's an addition to i think that buying power they've had for a while. i don't think the main effect necessarily is in supporting the actual shares of the companies doing most of the being. because those indexes that attract the buy back heavy stocks aren't necessarily outperforming on a consistent basis. it just consistently put more cash in the hands of investors so it's not really a big source of earnings growth, marginal but it's a bull market acting like a bull market this is what companies do when cash flows are high and they get a tax wind fall. >> it's another reason why we continue to see it supporting the market, right? yeah, michelle, to be honest i think there's a riddle ipplay here and this is good news and

bad news the last time we had a big surge in stock buy backs the number is 2007 2007 was when we sparked a big record high stock buy back so what you learn here is this is a cyclical move cash flows as much as the tax benefit are quite here, and what we may be seeing is the end of the bull market because the forward look on markets out and this thing is over that's why we're not getting this huge lift in the market >> kevin, is the trillion dollars enb dollars in buy backs a sign at the top? >> i hate buy backs, let me list the reasons. number one is you're not sure the company is going to buy them back here's something else i don't like, the discipline of

increasing the dividend yields. look what happened in ge, for example. i love the idea it changes the discipline of the board to decide we're going to raise our dividend yield and stick to it and raise our business that way. i don't necessarily want to take my portion of it profits of xyz corp and have my manager decide the shares i'll reply the capital maybe i'll buy back some of our shares or put it somewhere else to get some diversification. i hate buy backs >> kevin, i like that we've got another news alert on at&t and julia has got the details for us at&t responding to the department of justice filing its brief and appeal of at&t

acquisition time warner. they waived the evidence and rendered a comprehensive 172 page decision that systematically exposed the holes in the case. there's nothing in the justice department's brief today that should disturb that decision that's the response from at&t by that brief that was filed by the doj. >> they're recently making the argument that they're just relitigating all of the same points as they did before. >> that's what it seems like i think the fact this statement was so short and to the point saying that appeals are not do overs, they feel like if you were to rel really appeal their win on this one you'd have to really question the legitimacy of the decision that was made in that 102 page decision by judge leon so their viewing it as it's nothing really new here.

we'll have to see how it plays out but a veryquick and susin succinct response. >> in the absence of that, people have wondered if in fact is this the government's way of making a gesture, sending 24 message saying, look, we're not just going to give a green light in general to stuff like this. if we don't succeed on this one, maybe the next one we're in the final stretch of earnings season reporting so far 80% of the companies had peat expectations. that's according to fact set this is the strongest earnings performance since fact set began

tracking this data in 2008 kevin o'leary, what do you think? this is one of their explanations why we've seen the s&p 500 move higher here as you've pointed out >> yeah, the earnings have been excellent. everyone's been talking about peak earnings. earnings have been really good, even beyond my expectations. and it makes me think in allocating capital every day, waiting for that ten-year to breach 3% and stay above it. everyone else is thinking where do i go in triple bs there is no reason do that yet the market is toning to grow at the end of the back year with one exception with financials which has been the biggest disappointment in my view because you've got about 7,000

banks and the backlog is they're all going to be merged together and this is wonderful. or rates are going to go up 3% on the ten-year, boosting the optimism in these names. and oats a really interesting situation. >> you're not alone, right it was consensus banks are all going to move hire >> but they killed it in 2016 and 2017 meek, what's your view on the banks at the moment, because yes they haven't performed as well as they could have dup but they had a great last month so far. i think a lot of it, the indexes special are colored by the four big banks. so i think that they're not expensive relative to their own history and to the markets

so you would think that in the right conditions if we start to get assurance that in fact we shouldn't have to worry about a big slow down in the economy or the end of this cycle at all very soon then the banks should do okay. >> what do you think of the financials 1234. >> we should have continued in unison >> what i think are the fascials are value stocks the faang market, the tech market, the russell market, that doesn't spell value and doesn't spell banks. you just stay away from it if it's not a buyers market value >> it's momentum and it's growth organic growth companies, those types of things. health care is working right now for similar reasons. but cyclical, financial not as much >> we have an earnings alert on

etsy >> eps coming in at 3 cents, the street had been looking for 4 cents. revenues of 132.4 million. the the stock is up over 100% year to date you can see it's just up over 5% now, and just a reminder we do have the ceo josh silverman with us on squawk box around 7:30 >> thank you for that one, mike. etsy playing pretty well >> it has. it's been a great performer. a lot of these sort of smaller names have done well here in the last six months. it's amazing because it's very tough to kbets your head around the valuation. 6 billion drz company right now, and you have to the wonder if

people think it's got strategic value and they're doing the right things and do something else down the road still to come disney is the big name reported earnings tomorrow the stalk has been red hot over the past month up next a debate on whether you should buy the stock ahead of the results tomorrow. plus pepsi shares are getting a pop after the ceo announced she will step down in october. how the fast money traders are playing the shake-up and we want to hear from you you can reach out to the show, twitter or facebook. "the closing bell" back right after this break this isn't just any moving day.

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this is staying connected with xfinity to make moving... simple. easy. awesome. stay connected while you move with the best wifi experience and two-hour appointment windows. click, call or visit a store today. welcome back we have an earnings alert on zilo seema mody has the results >> mixed report. earnings beat by 3 cents, but revenue came in on a consensus announcing it acquired mortgage lenders of america it's headquartered in overland park, kansas it comes as zillow has been

expanding into the home buying business where it buys homes directly from home owners. the company pointing out in this press release it has purchased 19 homes in phoenix. i would also point out that wall street has been very cautious about its move into this home buying business. recently announced it has taken a position against zillow shares the stock is halted right now, expected to resume at 4:35 p.m. eastern. >> it's tough when the guys from the big short shorts your stock. >> yeah, exactly >> thank you >> seema, thank you very much for that we'll keep an eye on that stock. meantime walt disney shares significantly outperforming the dow in the last three months but will the stock keep rallying after the company reports earnings tomorrow? julia boorstin has a preview of the numbers for us >> when disney reports earnings the results may be overshadowed.

disney's quarter is expected to be strong. analysts expect it'll agree while revenue is expected to fwr grow nearly 8% espn will be in the spotlight. after last quarter disney said its subscriber base fell about 3% on the flip side the question is how much businesses are compensating for traditional declines investors will also be looking for details on the upcoming dissny streaming service set to launch next year it will include a live action star wars series, and three to four original movies as well as 500 films and 7,000 tv episodes from disney's library plus all new disney releases. we'll have to see if they give an update on the timing of the fax deal closing or his

interests of fox makes a higher bid for comcast plus any reaction to the possible loosening of rules >> julia boorstin, will of course be covering the numbers again tomorrow as well gents, good afternoon to you ivan, let's start with you does disney have enough cash and ammunition to be pursuing all these endeavors, whether it's buying fox assets or investing content to its rival netflix >> absolutely. they have cash,t, a stock they're now starting to appreciate they can use as a cur asbestos i think they probably have the strongest position they've ever been in. i think they can pursue even more, other acquisitions or content purchases as well.

>> what other acquisitions would you like to see them make? >> i think the fox acquisition is going to be pretty good i think it's all about content whether you're cutting the cord or skimming the bundle, people will have a blank screen >> what are you listening for this afternoon that might change your mind? >> the reported earnings is probably not much. and the ralty is that the negative factors that i think the market is not appreciating when part of the fox acquisition, are they going to get anything close to the multiples they're buying them for? i'm really doubtful. i think that's a negative thing maeb they could overcome somehow. another factor is how will they manage to increase their margins or prevent margins from eroding in a streaming world not everyone that gets espn

wants it, and although they probably have the right strategy for a durable multi decade company it's not going to be as high margin. costs for content, delivering content, costs for marketing are going to be much higher than they are presently i think anything they can say to talk about that would be, you know, helpful one way or another. but they're really early in terms of talking about plans for streamed services. the strategy absolutely i think is a great one >> but you're saying it's a long time to go and costly to get there. >> i was going to say the dream scenario for a disney, for anybody looking at this industry is going to be agnostic in the way people get the content it doesn't seem at least right away you're going to be replace that kind of revenue dollars

>> i think the streaming could be as low oz $8 or $9 to the midteams what interesting about disney is some of their most older content is in movies and they dominate the action adventu adventure genre which drives >> yes, they've got the liwraer. they could do all that, right? do youone it during the transition because the transition can be costly it can be dangerous. it is experimental, a dramatic

change >> uncertainty is the time you want to buy and if things work out the stock price will be a lot higher than it is now. >> brian the stock price is up 14% or so over the last tlohree months do you think investors would want them to just focus on the fox assets excluding sky >> yeah, i think one of it main reasons the stock has had such a rise in particular is because there's an expectation they won't go for sky i think thoifbl laid out a credible strategy over the long running which would include sky. i would give them full credit from a strategic perspective because the bigger question then is they don't then how warrant was it and what are you going to do with europe if there are alternatives to you?

i think investors will look at it negatively, though, if they do bid for sky or reitrit that interest >> we've got another earnings alert. the cloutd kmukdss firm reporting a strong beat on its bottom line. 3 cents adjusted analysts were suggesting a 5% loss the stock is up over 14% in extended trade keep in mind, this stack has been on tier we also have a news alert on twitter. julia boorstin, very busy this hour, she's got the details. >> they've terminated his account because of violations of the company's terms of service

jones responded to being ban frumd apple and others on periscope. twitter saying its info wars and accounts aren't currently violating its rules saying some of the content noted from jones being banned from apple and the like certainly not published on twitter. >> julia, in terms of each of the rules they have, of them maintain a block if they so desire >> usually they do and it's content used to insight violence, that's a term brought up consistently of these different companies. so they want to support free speech but anything that is designed to

slight violence oftentimes i think it's crossing that line. perhaps twitter is more of a platform to director people to different things but it's places like youtube which are more likely to actually host the content that's designed to incite violence. pepsi shares have doubled over coke over the last five years. fast money traders are going to weigh in next. plus president trump isn't afraid of ruling on tariffs of cars

welcome back to "the closing bell." weight watchers out with earnings lesly picker has them for us >> this is stock that's doubled year to date and still investors are selling on the news today despite what looks to be quite large or a pretty solid quarter here a beat on the bottom line with $1.01 per share versus 88 cent consensus and an increase in their earnings guidance for 2018 revenue guidance on what the street expected about $410 million for the second quarter and interestingly enough margins are expanding, revenue growing and it appears to be showing in the numbers but yet it's been a

darling for last six, seven months or so with july seeing some weakness in the stock >> clearly didn't live up to expectations >> yeah, i mean or just the stock could run so far ahead, more than doubled this year. but also down more than 20% on its high also i don't know if there's much to it but it seems as if they've run inverse. it's almost as if they compete for mind share as time goes on >> pepsico shares, stock nearly 80 rers, and coca-cola gaining. >> jenlts, a very good afternoon to you both. what's the take on this guy?

is this a turning point for the stokt? oats not today but could it be for the future i think she's picking the perfect time i think it's cheaper than coke on valuation, probably shouldn't be if you're just looking at this from a technical basds i think the stock has to close above, i think the all-time high is 22 in january. i happen to think both coke and pepsi are expensive. >> seamor what are you doing with this stock or the sector? >> obviously they have had some issues the carbonated soft drink world is not what it once was. they're treeing to growth in other products but interesting their snack brand has been outperforming the

beverages. i think the question is whether this has been nelson pelts or others who have been pushing to separate it into the pieces. maybe the best way to do this is refranchising. i don't think it's generally compelling here. i don't see any of that stuff mg happening overnight. >> i want to quickly come back to something you said, whether it's starbucks or pepsi, do you think when the high profeel ceos step down they are considering share prices and it could be a silent instead of a top. is it coincidence, i don't know but i would take it into consideration which is the reason i'm not ceo of pepsi. >> bottom line is i don't think their stock has really d

drastically outperformed i don't think that's what's going on here. i do think she resigned somewhat earlier than people had expect but i think a successor has been in place and i think the investor community >> you've got to see the clothes wilf was wearing over the weekend. it's the craziest thing. thank you both very much i think the boards of starbucks and pepsi could have considered these guys they've made some great choices. >> they already have full time job. fast money tonight, bitcoin falling back after what looked like a come back rally tom lee will be on the show to talk about crypto currencies and very much more

want to make sure you watch that at 5:00 p.m. eastern time. hello, guys. here's what's happening at this hour, everyone a violent and deadly weekend in chicago with at least 73 people shot, 11 of them killed. the shootings started friday afternoon continuing through this morning >> there are too many guns on the street, too many people with critical records on the streets and a shortage of values of what is right, what is wrong. what is acceptable, what is condoned and what is condemned mtsb investigators are on the scene of a sudden plane crash in a parking lot the lead investigator says the pilot did declare an emergency but did not state the nature of his problems

a 400 pound black bear broke into a house in connecticut this morning. it rummaged in the kitchen before it headed to the bedroom where it encountered the homeowner. the homeowner says that she played dead until the bear eventually left. after it had some honey nut cheerios or something like that, i guess. >> that is one brave woman how do you stay calm >> i don't know. >> very impressive indeed. sue herrera thanks very much up next former u.s. representative ronir kk responds to the president's tweets that his tariffs are working big time

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wow, one of the big after hours losers is zillow group, and declined more than 10 bucks on the wake of the numbers that i'm not sure are that bad but maybe it's the fact they're getting into the mortgage business >> it's unclear if there's unease out there it just seems they're more and more getting into the the trance

acti transactional side of things it used to be they said we're more of a mead i company, and now buying homes and this mortgage location service, i don't know if that's the reason it's declining this way but it seems it's suddenly changing the story. >> what's the difference between a media company and a mortgage company. >> but a media company growing very fast in a hot housing market is one thing, but a mortgage company is dependent on homes. president trump is on a two-week vacation. that doesn't mean he's taking a vacation from the trade wars or twitter, though. >> kayla with that ever developing story >> president trump over the weekend said tariffs are working big time as a deficit reduction strategy that because of them the u.s.

will be able to start paying down large amounts of the $21 trillion in debt accumulated homeland security collects tariffs at borders on behalf of the treasury department. here's some back of the envelope math we can do for you first the tariffs already in effect if you base them off full year imports they rake in about $17 billion based on last year's import levels. then you have the new tariffs being considered on an additional $216 billion on chinese imports as well as cars and car parts from canada. all of those taken in together would bring in another $66 billion. the u.s. imported about $60 billion in cars and parts from canada in the last year. as we reported this weekend the white house is still weighing tariffs on those imports as nafta talks continue the talks with canada have been difficult since the g-7 even as

progress is made with auto on nafta. and all the administration's policies may yield roughly $80 billion in revenue on tariffs give or take but that $80 billion could make a dent in the deficit but it would be a small one considering the budget deficit stood at $607 billion in june and you still have half a year to go, wilf >> okay, kayla, great stuff. joining us now to discuss is ron kirk, former u.s. representative under president obama. thank you very much for joining us i guess the first question is did the president have a valid starting point particularly when it comes to the terms of trade with china >> you know, this is such a dizzying sort of phenomenon to keep up with because, one, you have to separate the president's

tweets which seem to be unending from what actually is administration policy. and so of the tariffs that we have going into effect right now i think it's hard to calculate the real value of them because you also have to look at the reality these are taxes being paid by american businesses, as they are in many cases tariffs hurting american businesses and families i don't think you can only look at it as a one side of the ledger analysis. you have to look at it in totality >> but wilf, his question was did you think that the underlying premise from which the president starts, that we had to relook at the terms of trade? is that valid? >> i think, yes, all of us have done that. we did that in the obama administration we brought a very different approach to our trade relationships than we had before, utilizing the power to op markets, to give american exporters what they've asked

for, which is fair -- >> are you satisfied with those results? >> i think we were making great progress in that we were getting more access to other markets and better treatment of american goods in china because of our joint efforts at the wto and others, and there was more work to go. but i think there's a wide delta between the acs we've taken and not being completely satisfied than just going to the very blunt tool of slapping tariffs on everything that comes into the united states, which seems to be this administration's only approach to them every problem is a nail and every answer is a hammer and we know that's not the most thoughtful way to pursue this. >> in your experience in working along these fronts is there a way to get to a process with china to actually discuss some of the underlying issues, at that point what would it take, i guess, is the question to get to that phase? >> well, it takes a multitude of

formulas look, it didn't just start with us because this is both a problematic relationship, but on the other side of that continue it's a huge opportunity for the yoons united states to expand jobs china is going to add as many consumers over the next 20 years as we have people in the united states by a factor of two or three. that's a great opportunities for us to help them grow, to meet their needs. it's a huge opportunity for our farmers and our entrepreneurs. we've utilized the number formulas for not only engaging them through the trade organization, but the strategic and economic development in which we had very blunt conversations with chine about their more protectionist policy, how they needed to help create their own entrepreneurship by respecting and protecting

intellectual property. and you can't -- there's not one silver bullet. you have to do all of those things, and we were making progress on that again, i want to make it plain i'm not quarreling with the administration's correctly calling out china for their unfair trade policies. but what you can ignore is this administration creates -- this administration treats mexico and canada >> it's been great to have you on from dallas much appreciated ron kirk, former u.s. trade representative great to have you on >> snap chat allows you to filter out flaws and some are trying to make that happen in real life. we'll speak a plastic surgeon about the latest disturbing congd. mi up. >> plus facebook wants your bank information, supposedly anyway we'll discuss that story coming up

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snapchat is out with earnings after the bell tomorrow analysts are preparing to filter through that report. at the same time snapchat users are growing too accustomed to the way they look in photos with snap chat filters. >> in a growing phenomenon users take snapchat photos into their plastic surgery consultations in hopes of coming uton the other side like their selfies.

dr. gabriel chu, this on the surface sounds incredibly worrying indeed that youngsters are so influenced by the social media phenomenon they're trying to have plastic surgery albeit something business >> first, welcome to my world here it happens just last week, i had a patient come in asking me of more of an an mated eye and she could not figure out why it is not possible >> an anime eye you say? >> that's one of the things that all comes from a self-absorption or you can call an obsession sometimes. they first start with looking at yourself in the mirror and photographs then digital photography and being able to manipulate things on applications, the selfie generation we had different sets

of adjustments that were being done and now we have applications that can even make you look like an animal. >> i am sure people are not making requests getting bunny ears >> what's the ethics behind this if someone comes in making requests based on social media style influences, do you go ahead and do the surgery or long consultations or you try to warm them up first? >> that's one of the things we have to do as doctors is we consult with them and try to figure out why they are looking for these changes. most of the time it is not something that's reasonable when it comes to very specific changes. used to be that people would come in asking a nose looking like their favorite actress or actors and now being able to do this with a simple swipe they think that it is easily done,

they think there is time involved in the healing process and surgery and the costs they're talking about to do different things when we think about cosmetic surgeries, we want to have an improvement of ourselves but not a complete change of something that's not unrealistic >> you are not a psychiatrist, right? you are a surgeon. >> sometimes we have to play psychologist to our patient. i am not allowed to wilford l iu can make me look like this all time >> doing life procedures and we

just saw the prices of it flashing up on the screen of $20,000 or $30,000 >> we have to driiscuss these things with them and a lot of requests are unrealistic we don't go ahead and move forward with surgery asps will say that one-third of all requests for surgery, you want to say no to. when it comes to pay she wantie different things, we have to educate them what is possible and what is impossible and what's the best thing to do is sometimes just to go ahead and continue with these changes that they're doing with >> i don't think it is going to change >> dr. chu -- how much does that cost >> i want to look like this all the time >> if you go down to the 99 cents store, it is 99 cents. >> that's the way forward. we'll do that.

i appreciate the time this afternoon from your operating office >> up next, why facebook wants to cooperate your bank information in their feature we'll be back in a couple of minutes. great, can you sign for this? yeah. hey, uh.. what's in that one? that's a shark. new and only with at&t, you can get unlimited data, 30+ channels of live tv, and your choice of things like hbo or pandora premium. more for your thing. that's our thing. visit att dot com. what do advisors look for don't just track an index, help me meet a client's need. is the fund built to sell or built to last? etfs are only part of a portfolio. so make it easy to explain. give me a quality fund that helps me get clients closer to their goals. flexshares etfs are designed and managed around investor objectives. so you can advise with confidence.

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the ibm cloud is the cloud for smarter business. facebook is considering a feature that would incorporate a users' financial information into messengers allowing users to track banks and keep track of balance and receipts >> this is one of those cases where i think an art have been taken a little further than it was met. great reporting from this. i think people throughout the day focus on just the headlines of the article and in fact if you read the article, it is not

suggesting that we are at that stage yet. the conversation may have existed but no banks really kind of starting up with this yet >> it shows that facebook is guil guilty until proourven. >> something to keep watching. >> michelle, thank you very much see you tomorrow, "fast money" begins now >> we are live right now from the nasdaq market site times square i am brian sullivan, your traders on the desk are tim s seymour and tonight on "fast money," the crypto currency is going back to $7,000 what can save bitcoin? it does not need saving. facebook already has your data and now they want your b