Skip to main content

tv   Worldwide Exchange  CNBC  August 20, 2018 5:00am-6:00am EDT

5:00 am
it is 5:00 a.m. at cnbc. here's your top five at five breaking deal news to lead the show pepsi buying soda stream for $3.2 million another tesla ftrifecta we're following a major development, that is venezuela, that nation devaluing its currency by 95%. dramatic images out of southern india where thousands are fleeing the worst flooding in a century. in the streets, we're kicking off our series with a top performing fund managers these men and women are crushing the overall market we'll get their secrets to
5:01 am
success and get a bunch of new ideas for you. it launches on this monday, august 20th, as worldwide exchange begins right now. good morning good afternoon, good evening and welcome. wherever you are watching, i'm brian sullivan thank you for joining us the dow is up six of the past seven weeks. right now, your money looks like it's off to another good start dow futures up a solid 70 points nasdaq and s&p futures are higher as well could be another big week. up five of the last six, six of the last seven more on the markets in a second. we've got big breaking corporate news right now pepsi buying soda stream for $3.2 billion $144 a share 11% premium over friday's close. welcome in a familiar face at this hour. sara eisen she con covers the consumer --
5:02 am
you've had a chance to speak with the cfo of pepsi over this deal what drives this purchase. >> good to be back on one of my favorite, worldwide exchange $3.2 billion you mentioned the 10 or 11 poers premium for friday's closing price. soda stream, the last two weeks had a blockbuster quarter and its stock has skyrocketed to an all-time high. the last 30 days, this is a 30% premium. what drove it. in a matter of weeks, it's a big bet for pepsi-co on sparkling water. that's soda stream's bread and butter sustainability as well, another consumer trend it's billed itself as environmentally friendly, reusable plastic bottles and of course, use tap water and key
5:03 am
focus. the outgoing ceo of pepsico. it's also a play on international growth pepsi is one of 200 countries -- soda stream is not they will leverage their tools, regulatory relationships to bring soda stream for global they have a solid penetration in markets like western europe and japan. that will be key for peps at well and the at home market do it yourself something soda stream penetrated years og and has grown and turned around its business thanks to marketing and right sizing the cfo of pepsico, i spoke with them haas night. this has been talked about for years. in fact, pepsi had a reels ship with soda stream where they tested their own brand, pretty unsuccessfully a few years ago they've got their product portfolio in the right place they need the ability to expand in more countries. he calls it a good incremental
5:04 am
growth opportunity for us. we get access to a business, home beverages that we don't play in. the why seems like just that soda stream is in a good place right now. that was appealing to pepsico and pepsico was able to convince soda stream and daniel byrne balm that it's good and complimentary. he will stay as ceo. he plans to operate et i much independently within the broader portfolio of pepsicoment he says this buyout ee flekts mega trends in the space. notably, sustainable and healthy beverages. he's had plenty of suitors the last 11 years. >> it's interesting. if you go to grocery store, everybody has a case of carbonated water mostly lacroix, which is fizz. that's a name we need to watch
5:05 am
carbonated ater, i think the growth is up more than 30% year over year. is this a full acknowledgment and not a surrender to say guess what, sodas are out, carbonated water may be the new soda? >> no question that's where the growth is in the industry. to your point, we see bottled water surpass soda, carbonated soft drinks in terms of actual drinks and sales in the u.s. sparkling water has grown faster than bottled water in the last few years. not just lacroix pepsi is in there. so is coca-cola. nestle waters they have pellegrino and evian and some of the other imported bottled water. the u.s. has been late to the trend and it's catching on like fire if you look at pepsi this year, they launched bubbly
5:06 am
their own brand of sparkling water. loy water, the competition of smart water. coca-cola has bubbly aquafina there have been incremental moves in the space they actually characterize soda stream, pepsico does as the biggest sparkling water company or brand in the world. yes, this is an all-in move for that i think it's why pepsico -- broke the previous strategy by going after a big deal pepsico had not really participated in the mega deals the last few years they've added incrementally money to the -- mostly in the facts category i talked to them about this. he said don't read into it with the new coming in ceo or anything like that it prepts a really good opportunity for them it talks about the froet in sparkling water. >> it was a continuation
5:07 am
at one point you effectively had fritos and peps owe and now you have hummus, saab rah and carbonated flavored water. sara eisen, i know you have a long day ahead when you say one of your favorite shows one of not the. >> all-time favorite the most -- the best show. >> you know what we say, everything but the hours everything but the hours sara eisen, great stuff. see you soon take care. >> thank you big deal there for pepsi also watch fizz, that stock we talked about stock futures are nicely higher. what about the bond market the bonds remain subdued we're getting a lot of talk from the fed heads that could move the market also today, oil fractionally higher $14 per euro gold was a decent move coming off the worst week in a year
5:08 am
the biggest decliner is bitcoin. the wild ride continues. down another more than 1.25% all right. let's talk more about this strategy session with our friend managing director at qma ed, you've had a call for a 9% gain on the s&p 500 for year we're up about 7% coming into today. do you think that we basically made all of our feigns for the year, or are you ready to ratchet up that expectations >> as point out, we're -- the market is slowly grinding back up toward that january high. we've had a bit of rough patch here since the big -- >> we've had trade disputes. venezuela is a humanitarian. economic disaster. shouldn't be upset with a 7% gain. >> if we get a 9% gain, i'll be happy to take that to the bank, especially in terms of cash and
5:09 am
bonds. >> so it's hard to be negative on u.s. stocks when you have 25% earnings growth, 10% revenue growth you got an economy that's growing at about 4%. and you still have reasonably well-controlled wage growth. so we still stand by the 9% total return if we do get past the midterm elections, we do get a ratcheting down in some of the trade tensions, it's possible that we could go higher. >> the media, i think we like binary stories what i mean is we're at peak everything and therefore, wee roll over or things rocket higher because we're the safe harbor for the world not sexy, but it's a murky middle ground where we've been grinding higher. that could last a lot longer than we think. >> i think so. >> doesn't have to be peak earnings and a fall. it can be up that mountain. >> we are at peak earnings growth, i think. if things roll over and we get a
5:10 am
more sustainable rate of -- we're going to have strong earnings growth the next couple of quarters. then it will go down to the mid single digits next year. that's fine. our analysis shows that equity returns do better when you have more subdued sustainable earnings growth than when i have gangbusters growth people recognize that's not sustainable. >> part of one of the stories we've done, by some estimates about a trillion dollars in corporate cash that comes back into the market because the corporate tax cuts we still haven't seen the majority of that become implemented. could we see another round of buy backs which are near or at record highs depending what metric you use another round of buy backs removing more stock from the market which means what? more pressure on the buy side for the stocks we have >> that's a possible scenario. the good thing about the tax cuts, as we've seen continued
5:11 am
high levels of buybacks. along with increasing investment spending as well one of the things missing from the economic expansion is an increase in productivity we got a pretty good productivity number late last week and there's definitely a correlation with increased investment spending and increased productivity if we extend the economic cycle further, it will accelerate and the last data point was -- >> see you soon. thank you. an early morning upgrade some of the analysts are being be productive. nike raised by piper jahri the risks of owning nike have diminished a backdrop, better product pipeline and expanding sales in china. the target price raised to just under 80 nike shares slightly higher.
5:12 am
in the meantime, tesla shares under pressure in the pre-market on another trifecta of headlines. let's get to landon who joins us with more on tesla. >> speaking of productive, that's what we're talking about here elon musk. slow down and rest huffington post sent an open letter to musk on friday along with a tweet saying dear elon change the way you work to be more in line with the science how humans are most affected the world needs it musk replied tweeting ford and tesla are the only two american car companies to avoid bankruptcy you think this is an option. it is not. the back and forth was sparked by an interview to "the new york times" saying this has been the most difficult and painful of his career sacrificing time with friends and family to help tesla meet production goals separately, elon musk spoke to youtubers about the future of electric cars. it could take three years to develop a 25,000 sds car it's really tough to do given
5:13 am
the competition in the auto industry reuters reports that -- is in talks to invest in an aspiring rival. they could invest more than a billion dollars in lucid for a majority -- >> we'll see you soon. we're getting started on a busy worldwide exchange on deck your five global top hotspots. the international stories that you need to be watching on this monday, including one of the biggest currency dee valuations in modern history. wait until you hear what venezuela just did beating the street all this week, hear from five of the 15 best performing fund managers this year. every one is up more than 20% this year. we'll break down their strategy, their holdings, get new names for you. stick around we're drowning in information. where in all of this is the stuff that matters?
5:14 am
the stakes are so high, your finances, your future. how do you solve this? you partner with a firm that combines trusted, personal advice with the cutting edge tools and insights to help you not only see your potential, but live it too. morgan stanley.
5:15 am
this is moving day with the best in-home wifi experience and millions of wifi hotspots to help you stay connected.
5:16 am
and this is moving day with reliable service appointments in a two-hour window so you're up and running in no time. show me decorating shows. 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 here's how your money and investments are settle up their day and week up six of seven weeks on dow jones industrial average we grind higher to the record highs again. up a solid 70. nasdaq and s&p futures in the green also interesting story in asia overnight. saw a bounce back about upcoming trade talks between the u.s. and china evolving over the weekend, some talks that president trump here will sit down, maybe not
5:17 am
with each other but with a group and have substantive trade talks. we saw the hang seng jump more than 1%. the nikkei down -- it was a moment ago now it's up .9 of a percent. gain across the board in europe. in the meantime, following a major developing story out of venezuela. taking dramatic economic measures nicolas maduro devalued the nation's currency by 95% he announced plans to hike wages by nearly 6,000% if those numbers don't seem real, they arement inflation is out of control a loaf of bread in parts of venezuela is the equivalent of 80,000 boll varss. it could make paper currency
5:18 am
worthless. turning to asia, a big week ahead for u.s. china trade talks. the vice commerce minister is in washington set to kick off two days of talks starting on wednesday. this is the first round of formal negotiations since earlier this summer. same with news out of china, apple yanking 25,000 apps from china's app store over the weekend. "wall street journal" said that apple carried out a purge of illegal apps that sell things like fake lottery ticket or other gambling services. they reached out to apple for comments, apple would not confirm. but said gambling apps are illegal and not allowed on the app store in china. looking to put $5.5 billion hotel portfolio on the block they look to raise cash. among some those in the offering, new york's essex house in central park. the four seasons in jackson hole
5:19 am
and chicago's intercontinental hotel. it is an historic day in greece. because that nation successfully exiting its final bailout. this caps about a decade of external financial help. let's check in on the ten-year bond 4.327% i know it seems high for us. but it's down over 50% in three years. greece has gotten a lot better is turkey getting better we'll keep an eye on that country as well. the turkish lira moving lower. if you missed it, get this both s&p global and moody's downgraded turkey's credit rating on friday citing volatility in the turkish lira it's just around 6 to the dollar in other news overseas, rescue under way that region dealing with the worst flooding in a hundred years. more than 350 people have died
5:20 am
in the raging waters roughly 800,000 others have been forced from their homes. india's military is leading the rescue efforts using boats and helicopters to try to reach people, some of whom have been trapped for days officials say it is the worst flooding in more than a century. rainfall totals in some areas doubling a typical monsoon season all right. >>. still to come, we're going domestic and get back on a washington watch and the big issues on your radar. a terrifying crash in pennsylvania over the weekend. the driver surviving an incredible wreck we'll get you moreetlsn atheweeturn. o
5:21 am
man: are unpredictable crohn's symptoms following you everywhere? it's time to take back control with stelara®. for adults with moderately to severely active crohn's disease, stelara® works differently. studies showed relief and remission with dosing every 8 weeks. woman: stelara® may lower the ability of your immune system to fight infections and may increase your risk of infections and cancer. some serious infections require hospitalization. before treatment, get tested for tuberculosis. before or during treatment, always tell your doctor if you think you have an infection or have flu-like symptoms or sores, have had cancer, or develop any new skin growths, or if anyone in your house needs or recently had a vaccine. alert your doctor of new or worsening problems, including headaches, seizures, confusion and vision problems. these may be signs of a rare, potentially fatal brain condition. some serious allergic reactions can occur. do not take stelara® if you are allergic to any of its ingredients.
5:22 am
man: are you fed up with crohn's symptoms following you? talk to your doctor today, and learn how janssen can help you explore cost support options. remission can start with stelara®. cost support options. jimmy's gotten used to his whole yup, he's gone noseblind. odors. he thinks it smells fine, but his mom smells this... luckily for all your hard-to-wash fabrics... ...there's febreze fabric refresher. febreze doesn't just mask, it eliminates odors you've... ...gone noseblind to. and try febreze unstopables for fabric.
5:23 am
with up to twice the fresh scent power, you'll want to try it... ...again and again and maybe just one more time. indulge in irresistible freshness. febreze unstopables. breathe happy. here we go little chris stapleton worldwide exchange will be live quarter mile from that building on friday. we're in d.c check us out more to washington the fallout continues from president trump's move to revoke the security clearance of former cia director john brennan. susan mcginnis joins us live with the latest. >> hi, brian the president is threatening to revoke more security clearances. john brennan is threatening to go to court. >> former cia director is threatening to go to court after president trump revoked his security clearance. >> i am going to do whatever i
5:24 am
can personally to try to prevent these abuses in the future if it means going to court, i will do that >> the president may take away more clearances seemingly to punish critics and those he perceived were involved in the russia investigation, including that of current justice department official bruce orr. >> i suspect i'll be taking it away quickly. >> john bolton is considering reviewing all security clearances inside and outside of government. >> i think it's certainly appropriate in a time when we're seeing what i believe are unprecedented leaks of highly classified information >> dozens of former national security and intelligence officials have condemned the action. >> as long as john is not revealing classifying information that he shouldn't, then i certainly think he has a right to speak >> meanwhile, the president lashed out at a new york times report saying white house attorney don mcgahn has been
5:25 am
cooperating extensively with special counsel robert mueller the president called the story fake news. >> this is a desperate special counsel who leaked this to "the new york times." >> the president says he allowed mcgahn to cooperate and has nothing to hide. "the new york times" stands by its story, brian >> it was just -- i mean, you think susan that things can't get more dramatic or any more whatever and every week we ratchet it up. don't we >> absolutely. it gets more unbelievable. >> happy summer. susan mcginnis thank you. let's get a check on the other top headlines. while it has literally been endless rain on the east coast, out west, can't catch a break. another major fire erupting in california philip mena has more in new york california fire crews taking on a new blaze officials say the front fire exploded to 300 acres with zero percent containment. it burns through a national park
5:26 am
in santa barbara county. high temperatures and low humidity are fueling the flames. as that fire burns out of control, firefighters contained the ferguson fire that scorched more than 96,000 acres near yosemite national park. a british woman survived a ten-hour ordeal at sea after falling off norwegian cruise. >> she went overboard and was found about 60 miles offshore. authorities are crediting warm waters for her survival. puppies on the table at a restaurant in taiwan they're specialize cream treats too realistic to eat they come in several flavors they're made to look like shar pei puppies. one takes five hours to make but it only costs five bucks how are they making a profit here >> i don't know how they're
5:27 am
making a profit. who would want to eat an ice cream in the shape of a cute little puppy honestly. >> it looks like art you don't want to touch it it melts so quickly and you have to eat it. >> melts in your mouth, not in your paw >> that's right. >> i'm done for the week phillip mena that's just weird. the federal reserve in focus. the countdown to jackson hole is on what investors are watching ahead of that big meeting. beat street, top fund managers in america this year every one is up more than 20%. got that coming up here later on in worldwide exchange. back after this. no more lugging your clubs through the airport or risk having your clubs lost or damaged by the airlines. sending your own clubs ahead with shipsticks.com makes it fast & easy to get to your golf destination. with just a few clicks or a phone call we'll pick up and deliver your clubs on-time,
5:28 am
guaranteed, for as low as $39.99. shipsticks.com saves you time and money. make it simple. make it ship sticks. (vo) ovewhelming air fresheners can send you running. so try febreze one. with no aerosols and no heavy perfumes. so you can spray and stay. febreze one.
5:29 am
5:30 am
pepsi buying soda stream sfor $3.2 billion. $144 a share unleash the bulls. why this week will mark a major milestone for your money how we got here and where we're going coming up. best of the best of the best we're kicking off our beat the street series today. we're going to hear from top fund managers. get their strategy, their picks and new kwds for you it all start on this august 20th you're watching worldwide exchange here on cnbc. >> good monday morning
5:31 am
thank you for being with us on cnbc it may not actually rain today which is some kind of miracle. buy a lottery ticket we've got a lot to get to. let's check on the headlines landon is back with those. >> a check on your executive recap. pepsico set to buy soda stream for $3.2 billion they will pay $144 in cash for the stock. this teal gives pepsi a new way to reach customers -- venezuelan president nicolas maduro devaluing the nation's currency and -- this comes as inflation spirals out of control in the country. the imf says the inflation rate could hit 1 million percent by the end of the year. an historic day in greece. the nation exiting the final bailout. this caps nearly a decade of external finances help brian, back to you. >> there you go. landon dowdy, thank you very much hey, here's how your money
5:32 am
and investments look right now nasdaq, s&p, the markets are up, the dow anyway six of the past seven weeks. been a slow grind higher the dow futures up 70 points s&p the same way the yield not reacting still pushed down by turkey fears, trade fears all those three plus percenters on the ten-year by the end of the year the bond market, the last couple of weeks, overseas in asia, a lot of optimism that we're going to this week sit down with trait talks between china and the united states in washington, d.c. that's got optimism and shanghai and hang seng in hong kong up more than 1% not quite the gain we are seeing a lot of green on the screen over there. outside of stocks, a look at global currencies and commodities.
5:33 am
oil prices held down gold up .9 of 1% coming off the worst week of the year the big decliner, gold down. 6412 on coin base exchange it is going to be -- that's cool what's that sound? here come the aliens going to be a big week for the stock market this week we cannot see the future like the aliens but we can see the calendar. as we mentioned last week, we've got a huge anniversary on wednesday. michael san toll i dropping in early to tell us about it. >> a landmark moment that sounded like an '80s arcade game to me so wednesday, this bull market as most simply defined as a period of time when the market is going up and not declined it will become the longest bull market in history. 113 months, that basically edges out the '90s bull market to
5:34 am
march of 2000 which is 112 months this is basically what we're commemorating here what's interesting about it, anybody who watched it and felt it knows that it's not been uninterrupt uninterrupted. it shows the cadence in three acts i'm calling it. you had the rebound off the low in march of 2009 that was about two years until early 2011 you had a serious correction it did not close down there. you had a sideways period after really that lasted after 20912 election then you got another lift higher really through 2013, most of '14. another two years, then more sideways deep correction, 2015, '16 since the election in -- really since brexit in mid-2016, been up in away. >> a couple things here. hopefully in 40 years we'll be sitting on the porch, the grandkids will be like tell us about the great bull market. this is the most unloved bull
5:35 am
market in history because we're coming off a financial crisis much the market was up, we collapsed. we've gotten back to where we were on an inflation adjustment basis. to your point, mike, we bring up that chart again we took over a year off. >> yes. >> during the campaign. >> the president will take credit for the rally i'm sure there's part of that in there. the reality is the market did nothing for the better part of the entire campaign. once the election was settled -- >> global markets that had a bear market within the s&p 500 most stocks were down 20%. the indexes themselves did not give you that flush. yes, that's a battle tested bull market you didn't start making new highs nominally until 2013 a lot was recovery not new high ground. >> let's bring in j.j. kin han chief strategist at ameritrade. >> i feel like it's a baseball player we don't think about much they have a career, live for 15 years and we look book and go
5:36 am
oh, my gosh, that guy really had a great career it doesn't seem to get respect while we're in it. >> no. it doesn't it's so unloved. what i find interesting is if you look at headlines, we're near all-time highs. look at all the headlines every day. neglect i have, negative, negative why this can't continue. you look at the numbers that come out, they're very, very solid. look at our clients this year. last year our clients took more exposure to the market every month. this year for the first five months of the year, they actually put less exposure they didn't expand it until june i find that also really interesting, this year has caused a little -- uncertainty, the volatility hasn't been great. it is higher than last year when we got to this point on the s&p 500. but it's kind of interesting to me that people still are a little bit more cautious than they -- >> i grant you a reserve of
5:37 am
skepticism or an unwillingness to feel all in if you look at your own index of exposure in january, it was through the roof you had a brief period where everything is working right. got the tax cut in, earnings get the second win, huge upside. the market was gently kind of rising all last year seemed like risk was run out of market i wonder if we have to get to a point eventually before the bull market ends where you get obvious headline euphoria. not clear to me. >> i agree with you. december 31st this year, even though it went up, our clients lessened the exposure. i found that interesting. >> they're nervous or because they've made so much, why not protect the gains? >> part of it both, one. stocks popular among retail is facebook facebook for the first six months of this year, people sold it five of the six months net. rather than be a buyer again, i think part of it are
5:38 am
taking dpans and part of it is i'm making money here. the most surprising thing to me of this rally when i look at this, stocks at at&t have been popular. anything still paying dividends has become a popular stock because you covered it right at the beginning of the show. bond rates aren't moving they've been stuck in this range for so long. >> it's easy to find the bear argument listen, it is logical. you can say we had greece ten years ago, turkey right now. trade fears. all these things that have happened the bull case, we haven't talked enough about is the reduction in stock. they were more than -- they were twice the number of publicly traded companies 15 years ago. the number of stock that's available in the market to buy continues to go down because of buybacks if you have the same pool of buyers chasing a much smaller pool of stocks, that obviously seems to trump the more bear cases out there. >> it does i think it's part of an overall
5:39 am
picture of high liquidity. you have companies handing cash back not having lots of ipos. that's a bigger deal to me than number of listed stocks to be honest with you. most of the ones listed are penny stocks, used to get thrown around, they don't anymore you basically have high stocks -- they sometimes seem like the only ones that matter i'm not saying that's correct. >> they do j.j., they run a lot of etfs effectively. a lot of the stocks are 50% of a popular etf. for good or bad, they do run the show. >> they tend to get most of the interest also. which can be good or bad i think the stocks have helped with the interest in other stocks overall to be honest with you. the biggest problem we have as an industry is always oh, what are we go going to do to get millennials interested it's actually a good thing the last thing, mike made an
5:40 am
important point before about it being since 2013 let's not forget, the bull case would be, we haven't seen the results of the tax cut yet fully in terms -- it's funny to me that stocks like home tea poe, et cetera that are -- depot, investing that money get hurt in wall street. >> corporate money still to come state side >> people talk about both sides of their mouth should we report quarterly the other end of it is, it f. a company invests money, they get punished in the short-term can't have it both ways. >> most hated bull market. but what a run. >> it's not cheap. it's hated but you've still had a lot of gains built up. >> absolutely. >> it's showing defensiveness. i don't think you can say until everybody is happy >> it's going to last. >> get all that out now, wednesday we party >> it's the anniversary day. >> put on your hat, baby. >> j.j. thanks for woman cocomio
5:41 am
early as well. >> we're going to break down numbers and onereally small number what it takes to beat the street some of the top fund managers in america this year. you'll hear their secrets to success. first a check of the pre-market winners and losers apple, cisco, microsoft up nicely we're back after this. can be relentless.
5:42 am
tremfya® is for adults with moderate to severe plaque psoriasis. i'm ready. with tremfya®, you can get clearer. and stay clearer. in fact, most patients who saw 90% clearer skin at 28 weeks stayed clearer through 48 weeks. tremfya® works better than humira® at providing clearer skin, and more patients were symptom free with tremfya®. tremfya® may lower your ability to fight infections and may increase your risk of infections. before treatment, your doctor should check you for infections and tuberculosis. tell your doctor if you have an infection or have symptoms such as: fever, sweats, chills, muscle aches or cough. before starting tremfya® tell your doctor if you plan to or have recently received a vaccine. ask your doctor about tremfya®. tremfya®. because you deserve to stay clearer. janssen wants to help you explore cost support options. happy anniversary dinner, darlin'. can this much love be cleaned by a little bit of dawn ultra? oh yeah one bottle has the grease cleaning power of three bottles of this other liquid. a drop of dawn and grease is gone. ♪
5:43 am
hawaii is in the middle of the pacific ocean. we're the most isolated population on the planet. ♪ hawaii is the first state in the u.s. to have 100% renewable energy goal. we're a very small electric utility. but, if we don't make this move we're going to have changes in our environment, and have a negative impact to hawaii's economy. ♪ verizon provided us a solution using smart sensors on their network that lets us collect near real time data on our power grid. (colton) this technology is helping us integrate rooftop solar, which is a very important element of getting us to our renewable energy goals. ♪ (shelee) if we can create our own energy, we can take care of this beautiful place that i grew up in. ♪
5:44 am
♪ wear waiting -- good monday morning. it's time for top trending stories. what are you going to be talking about today? >> hopefully not just -- we have sunshine crazy rich weekend >> crazy witches >> crazy rich asians according to the latest romantic comedy took in $22.5 million over the weekend for a five-day opening of 34 million d. crazy rich asians is the first movie to feature an all westernized asian cast. >> i'm dying to see this. >> that was the last one >> the joy luck club. >> is that true? >> yes >> i'm a news anchor, trust me. >> i'm not touching that one this next one. maybe this should have been your rbi. i'm just saying.
5:45 am
>> listen to this. speaking of box office in numbers, the spectrum, kevin spacey's latest film opens $126 this weekend no, that is not 126 million d. i mean $126. if you didn't know spacey had a new film out, you're not alone, obviously. it opened in ten theaters nationwide and averaged less than two tickets sold at each. billionaire boys club was shot before sexual assault allegations against spacey came to light $126 >> let's be clear. it was not -- less than two at each one because one theater did three seats. that was $45 45 of the 126 was at one theater. that means a number of other theaters had nobody. zero nobody bought tickets and a couple of others had one person. >> this had a big cast >> 10 or 12 bucks. >> numbers guy >> what else is trending
5:46 am
>> if you like to check users before selecting a show on netflix, you're out of luck with this one deleted all user reviews netflix cited declining reviews as a reason for the change i didn't know that you could find it on netflix click on, click off. >> brian sullivan. that's the numbers okay but this is my favorite of all the trending stories a viral video everyone will be talking about. the chicago white sox invited a nun to throw out the first pitch. boy did she deliver. sister mary jo unleashed a perfect curve ball from the mound. those look to be skills. wow. >> i mean, everybody need a reliev reliever >> look at that. >> impressive. >> yes. >> do you know how many celebrities and have come out to do this.
5:47 am
>> sister has game. >> simone biles, the gymnast took the gold this weekend in every event. biles came out on top on balance beam, uneven bars, the floor and the vault. this level of dominance in gymnastics is super, super rare. the last woman to do that was dominique dawes in 1994. at a terrifying crash at indy car race. watching nbc sports in the afternoon as i was major reckon the 7th lap several cars were involved robert wickens got into ryan hunter-reay. got into him, went up under the fences, came through, spun you can see a number of cars hit. most of the drivers were able to walk away. wickens did not. he was helicoptered out. here's the good news he was awake and he was alert track officials say. but he had to be airlifted to a local hospital more than an hour, they waited
5:48 am
for the fence to be repaired tomorrow, we'll have the marketing guy for indy car hopefully we'll get an update on his condition. thankfully he's awake and alert. he has major orthopedic injuries ten years ago, might have been different. lot of safety innovations. still ahead, dots in dorms on deck last week, we brought the big push to get into the dorm room we asked what you thought i'll bring you those beating the street next. one the top fund managers in all the la ts arndhiye need a change of scenery?
5:49 am
the kayak explore tool shows you the places you can fly on your budget. so you can be confident you're getting the most bang for your buck. alo-ha. kayak. search one and done. why did i want a crest 3d white smile? dinner date. meeting his parents, dinner date. so i used crest. crest 3d white removes 95% of surface stains in just 3 days, for a whiter smile that will win them over. look for a one dollar coupon in this sunday's paper.
5:50 am
your but as you get older,hing. it naturally begins to change, causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. healthier brain. better life. top performing fund managers this year. ranked by morning star thanks to them for running the data we kick things off with the baron fund the fund primarily invests in smaller size companies up 24% this year
5:51 am
more than the 2000s up 13% joining me is randy gorts man. congratulations. one of the top 10 or 15 fund managers out of thousands this year. >> thanks. >> thanks for joining us. >> great being here. >> your top holdings are names that are probably unfamiliar to almost everybody what is different about your strategy is that you take big bets on a fewer number of companies? >> actually, we do have a small portfolio at 60 stocks versus the thousands potentially in 2000 what we do is concentrate on deep fundamental research and make sure that the companies that we find are the best of best and we do our work to make sure that they continue to be best. >> define the best >> we look at top quality management really the first thing we want to find. we want to find managers that primarily guys that we might even know from other companies before but people who are highly qualified who can have a great
5:52 am
business plan, great strategy and importantly, a business that's protected it can deal with the ups and downs. >> a lot of ceos and executives watch this show. they're up early they may want to cover their ears i'll ask a dirty little question in the age of atfs does management still matter? >> i hope it does. baron has been around for 30 years. we found that you can find different companies, particularly in small mid cap, because people don't pay as much attention. when things go wrong -- >> the laws in -- see the number of analysts continue to -- >> that's a good.. that the inefficiencies continue and they get bigger and bigger. >> do you want companies lesser covered by analysts. >> we love that. we love companies underfollowed. we say you never heard of these companies but we will. you find that little company that eventually becomes the -- >> intersect ent i'd like to say -- never heard
5:53 am
of them. >> med tech company. they make stents embedded with a medication that goes into your sinuses postsurgery. >> been a rough ride the last couple months. >> this is an interesting one. they've got what we think is a $3 billion market opportunity. $100 million in revenues the base product is doing okay they introduced a new product, just about to get reimbursement. we think that happens in january 2019 so in the early days, you git some bumpy rides sometimes as we go through that process. >> you like the price going down now. you're buying for the years out if they get that insurance reimbursement. >> yes we believe that's going to happen it's likely that the medical studies are really good. this product could be a barnburner it's a billion 3 potential market opportunity for this new product. >> care dx, cdna medical, smaller cap, medical device company. >> interesting this is a technology that does diagnostics for when you need a transplant, organ transplant
5:54 am
they have coverage at 880% of te centers u.s. the total opportunity is $2.6 billion we think the new opportunity having kidney transplant is 2 billion on its own this product launched in q3 17. >> is that -- in the third quarter of '17 what they did is started marketing. they had great clinical results as well. la last quarter, the sales would have been absolutely terrific. >> those are two companies with little to know sell side -- >> these are under the radar and things that we think -- >> you're not getting the research upgrade this, downgrade that you're doing this from the bottom up with your team >> we do bottom up we talk to the street. there are smart guys doing great background work as well. we use every resource available to us. >> cyber security.
5:55 am
super hot topic. >> huge. >> what you hear from the bears, a lot of players out there is it going to become commoditized >> it's a great question of the it's not a one size fits all it's a niche i type of business. we've done a lot of work on the firewall side. we're interested in the -- holistic overview companies that can tie the whole -- see where the problems are in the network. they do vulnerability -- make sure everything is up to date and moving properly. they scan millions and millions of end points at once. it can incrementally update. it incrementally updates it. they can leverage new products top line growing about 20% we think this is a long-term -- >> listen, obviously you're finding names that are
5:56 am
out-perform being the index. we showed the chart comparison you want the overall markets to do well. that rising tide will lift all boats. >> sure. >> as a guy that gets deep into certain companies, how much of a macro view do you have do you think we'll see continued -- the anniversary of the bull market is on wednesday. 9.5-year bull market the longest of all-time. are you bullish longer term still? >> we think the united states is a terrific economy we've got amazing innovation we'll have bumps in the road we're going to move up and down. however, if you follow companies that have terrific cash flow growth over a period of time, like i was mentioning with the companies, they have these terrific open ended growth opportunities that can grow 20% a year we're going to do fine. >> better than fine for your clients up 24% for the year. awesome stuff there. kicking off our special series appreciate it, randy appreciate it very much. all week, folks, more like randy, five -- four more all at
5:57 am
more than 20% this year. who says you can't beat the street not us "squawk box" is next kayak searches hundreds of travel and airline sites to find the best flight for me. so i'm more than confident. how's your family? kayak. search one and done. happy anniversary dinner, darlin'. can this much love be cleaned by a little bit of dawn ultra? oh yeah one bottle has the grease cleaning power of three bottles of this other liquid. a drop of dawn and grease is gone.
5:58 am
thanks, janet. it's welcomemy happy place. store. you can learn how to switch to xfinity mobile, a new wireless network that saves you cash. and you can get 5 lines of talk and text included with your internet. and over here i'm having my birthday party. dj fluffernutter, hit it! ♪ dj fluffernutter simple. easy. awesome. ask how to get $300 back when you sign up for xfinity mobile, and purchase a new samsung phone. visit your local xfinity store today.
5:59 am
breaking news. pepsico is buying soda stream for $3.2 billion details ahead. drastic measures being taken in vein sdplal a. the country devaluing currency by 95% as inflation spirals out of control apple cracking down on illegal apps on the app store in china reportedly purging thousands over illegal gambling. monday, august 20th, 2018. "squawk box" begins right now.
6:00 am
♪ . >> announcer: live from new york where business never sleeps, this is "squawk box. good morning everybody welcome to "squawk box" here on cnbc we're live from the nasdaq market site in times square. i'm becky quick with joe kernen and andrew ross sorkin futures are higher both saw a sixth gain out of the last seven weeks you'll see the dow futures up by 81 points. nasdaq futures up by 26 and the s&p futures up by close to 7 points s&p less than a percent off of their high you can see overnight in asia, the nikkei down by a third of a percentage point stocks were higher the hang seng up the shanghai composite up by 1.1% some of the early action in europe, you're going to se green arrows across th

106 Views

info Stream Only

Uploaded by TV Archive on