tv Worldwide Exchange CNBC April 26, 2019 5:00am-6:00am EDT
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it is 5:00 a.m here's your top five at 5:00 amazon smashes earnings expectations we'll dig in on the monster quarter straight ahead what happened at intel ouch shares are sagging right now why the chipmaker may have raised the big red flag on the future uber, it may need a lift company investors likely frustrated by another drop in value ahead of its ipo speaking of cars, we've got a pump price alert as we head into the weekend, and former white house strategist steve bannon blasting wall street and china in an exclusive sitdown. his kmends comments and reaction
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from beijing ahead on this friday, april 26th, as worldwide exchange begins right now. good morning, good afternoon, and good evening. i'm brian sullivan yesterday was 3m today it is another dow component. that is the stock to watch today. that is intel. it is deep in the red. stock up 8% in the premarket companies slashing its revenue forecast last night. as cramer called it, 2m after that fwrb number the worst decline since 1987 intel likely going to be the story today.
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we're seeing a similar drop here, but the nasdaq yesterday hit a new all-time high intraday you pay attention to two things. the close, where we closes, and also the intraday move actually, we still have hitting many records on these indexes. we're not closing at them. once again today, it is all about earnings we have got a ton of big names that could move your money big-time we've got to start with this one. one of the biggest names of all, and that is amazon the company crushing estimates for the first quarter reporting a huge ep sr. boat we don't use words like crushing and beat for no reason. sfa more companies running their business on the platform companies also looking to make free one-day shipping the
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default option for anybody who is a member of amazon prime. joining us now on the cnbc news looirn is scott, managing director of consumer research. >> i think you are feeling confident in your -- i think we're feeling very kfrt in what amazon is doing. pretty mazing company. pretty amazing quarter other people competing against them need to be very nervous as they wake up this morning. the margins there, unlike a lot of their other business, are very real. >> absolutely.
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north america profits -- profit dollars actually slightly exceeded aws's profits this quarter. we've seen them building profitability and you see this flowing out to the balance sheet. almost $40 billion in cash sitting on the balance sheet huge free cash flow last 12 quarters the way we look at it, they produce $15 billion of free cash flow e-mailing back and forth to clients. you know, amazon seems to have almost more money than god at this stage, and it's going to use it and as you talked about before, they're going to use it to invest $800 million next quarter to bring one day free shipping to the prime membership base we think it's a big deal it's a shock >> how do they make money on that they have to -- it's funny you say that they raised prime membership rates, and then they gave gained four million prime members
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clearly, it was okay that they did that they are pushing hard to get sufficient the last several robotics were put in i would think that they're going to go back and try to put morrow bottics, get more efficiencies, cube out these facilities to drive what they're doing and i do also expect to see more forward deploy type of facilities it was in -- i was in florida. i think daytona weech yesterday, and an article came across my desk 68,000 square foot facility. amazon is building you may see more of those types of facilities as well. >> i've got to repeat what you said weave got a lot of business owners, small and large, ceos who watch cnbc i don't know any of them who can say i'm going to raise prices
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and gain customers they gained four million customers after they raised prices >> it's crazy enough they it said on the call this is our proprietary data where they -- >> they don't like to reveal that data. it's incredible. it says to me you could raise it to $129, $139, $159 a year, and you're probably okay that's a drug that is amazon >> i mean, i think it's very seductive, obviously, to have all of what amazon is offering that's what prime is all about prime is about free shipping, but it's also about the other perks. prime video. there are obviously a lot of values in a prime membership it's perceived that way from a consumer it did show unbelievable
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resilience that they were able to raise it, raise the rate, have -- as they said, have the best prime selling they've had in a while it's hard data to say they actually gained about three million prime households in north america. >> wow >> pretty good stuff if you are -- and the income is something we've been talking about. b income is rising very rapidly at amazon. >> wow we got to leave it tlrk but wow, what a quarter raising rates and gaining customers. they call that a good problem. scott, thank you very much >> thanks, everybody >> all right we have to move on because there's a lot more earnings we want to get to this morning. kate rogers is in with those kate >> hi, brian happy friday shares of intel deep in the red. earnings and revenue boat for the quarter, but the real story here outlook intel slashing revenue guidance for the year they're partly blaming china for that slowdown. as you can see, intel shares down almost 8% in the premarket.
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>> they are higher by 7.5% starbucks reporting mixed quarter. earnings of the coffee giant beat estimates here, but revenues came in light starbucks shares were a bit higher >> this is your beat >> premarket strayed >> what happened >> so a couple of interesting things here. ceo kevin johnson, who we will hear from on squawk on the street, around 9:00 a.m. >> this whole show is just -- >> i know. well, we're here now let's talk about it. they call it out in the u.s. and in china basically u.s. comes up 4% that's the third quarter in a row. we've seen that in china they talked about delivery in
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loeks now in the u.s 16.8 million active rewards members, and they also said that people are basically responding well to some of the new premium beverages that they put out in the u.s. you are not tracing coffee prices on the cboe every day look at coffee prices. coffee prices over the last five years, that's a five-year chart here on the radio. they're down 54% coffee prices are near on an inflation adjusted basis all-time lows. too much coffee. demand is growing. they've got to be making money on what they're buying they have to be buying cheap >> well, they've called out specifically those premium beverages. one of them is tea and the other is cold brew, and they have a cloud macciatto campaign, and that went viral. one of the most --
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>> i'll take a graunde latte. >> there you go. the china number is very important. they're deep discounting now >> the china starbucks >> exactly kevin johnson called out the deep discounting and competition over these too and why that was so important >> we have 51 minutes left on the show you ready? >> totally ready >> see ya. >> see ya. >> all these earnings driving u.s. markets the major averages are on the red. close to all-time highs. still day to day moves are one thing. nice the headlines. you likely care more about the longer term trajectory of the market let's dig in on that joining us now once again our favorite guest seema shaw, global investment strategist we've seen china be the best performing developed market in the world this yoer. we've seen the u.s. market hit new highs. what's caught my eye is the fact that europe, your markets over there are actually starting to show some signs of life.
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>> yes it's -- i think it's long, long awaited, but it does make sense given how correlated we have the european economy with the chinese economy. as you expect to see the chinese economy recover and stabilize. it should also list european growth of course, on top of that we've also got quite a supportive ecb at this stage. >> yeah. is that ecb position and are the markets there in europe, are they the united states a couple of years ago in other words, if investors, our viewers are put money into those indexes, can they expect to have some kind of a multi-year run as the ecb takes action >> i think it's difficult to say with europe, because, i mean, it continues to disapint, and we were hoping that this is finally the year that it's starts to show through i think the one thing is we've seen so many outflows from european indexes, and xc outflows that it's so underearned, and you need a slight improvement maybe coming from the better economy, and you can see a real drive in inflows
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and especially when you look at valuations as well europe is actually pretty undervalued. we could see a pretty big move up, and then, of course, you need the ucb to remain supportive you can't just see strong growth and then -- you would immediately see outflows >> it has continuously underperformed there's risk from brexit >> it would look cheap compared to others, and that is where you see the invest returning >> are you shocked by the strength of the american markets this year? >> i think what was, you know -- if you look back compared to where they were in december,
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yes, absolutely. then when you look at what the fed has done with its very, very significant dovish pivot, it does make some sense i would be having concerns going forward, though. if you look at comparing the xe markets and bond markets, there's a disparity there. the bond market is maybe putting out more concerning signals where the xc market is saying it's fairly strong maybe that's suggesting that we could have a slightly weaker second half of the year ahead to the u.s., but overall, i think it's definitely a lot better than where we expect to be at the end of last year >> i think you're going to be in los angeles next monday. didn't i see your name on the list >> that's right. i'm going to be speaking on a macrotitle and talking about the global outlook there with china, europe, and u.s., everything it's going done an computing time
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uber kicking off its road show today sources telling reuters the ride-hailing giant is looking for a valuation between $80 billion and $90 billion. that is much less. and the $120 billion investment bankers told uber that it could fetch lastier. on the flip side, slack gearing up to hit markets itself for a direct listing not a straight ipo. >> what can you expect
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those stocks with your money we'll find out plus, guess what else is worth your money we'll give you a pump alert the head of the weekend. every day, visionaries are creating the future. so, every day, we put our latest technology and unrivaled network to work. the united states postal service makes more
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. he says corporate america is funding china's fight with the united states. he made those exclusive comments in an interview with us and kyle, the hedge fund manager we aired a bunch yesterday, but there is more to the interview that we did not air, and that's coming up here on world wooitd exchange bannon's comments come as president trump signalled that a china trade deal could be coming soon. here at the belton road forum president xi gave a speech where he made a veiled shot at the u.s. suggesting that the
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u.s. is the one that needs to be more open. in his speech, he said we hope other countries will also create the environment that enables investment, treats chinese enterprises, students, and scholar as people, and provides a fair and friendly environment. the reason why you can read the words "other countries" as the u.s., is because most recently the u.s. and china have had a whole lot of problems over visas for scholars and for students. much of rest of the speech was xi jing ping trying to address some of the credit simples that have been discussed here at the belton road forum about the infrastructure program there's been a lot of criticism that it's a death trap for countries to get involved. that's the transparency that's lacking. that it favors chinese companies unfairly president xi has said that china would insure financial stakt of the project, and that the projects would be done in a transparent way, and that china would have zero tolerance for corruption there's a lot of talk about how the program needs to be
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inclusive, but i think at the heart of it, brian, what was interesting about that comment that he made when he had the veiled dig to the united states, was that it shows just how much china doesn't fully understand the level of anger that you could see in those comments from them and how their views are becoming much more mainstream. that the u.s. over years has been very generous with china and has been integral to china's economic success. >> i think that means there could be a trade deal. there's a lot of stake holders
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who want something to happen, but i think what we're seeing more and more is because of these hardened stances that a conflict is likely going to be staying for quite some time. when i talked to some of the companies out here who their business relies on the u.s.-china relationship, they're expecting to see what they described as points of crisis in this relationship. >> you'll hear from a top energy analyst where about where he is finding opportunity in oil and energy better late than never facebook putting the stop on one key thing th lely s enatikhabe flooding your news feed. we'll tell you what is going away when worldwide exchange returns.
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stock futures in the red right now. the dow jones futures indicating a drop of 56 points, but really, again, like yesterday it was all about 3m one stock on the dow kind of dragging everybody down. today 3m is intel. intel stock down 8% in the premarket. they cut their guidance. we'll talk more about that coming up. commodities, oil down again this morning. braebing a three-day win streak. oil still on pace for its first eight-week win streak.
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all the way in 2015. crude oil up 40% this year and staying with the oil theme we were about ready this morning to get results out of oil majors exxonmobil and chevron as well today tells a broader story about investing in and around the energy space joining us on set, tim, managing director, energy research at oppenheimer. i know you don't cover those two stocks, but we don't care. there's a bigger theme here.
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>> you do cover objection dental david faber broke the news that oxy is going hostile for anadarko chevron, of course, had bid. they thought they had a deal there was a $2 billion break-up fee. we're waiting to see what chevron -- will they have a higher bid >> do you believe that oxidental will bid anadarko. >> do we need to come close to the dallas 76 bid right now. i know oxydental management is making rounds trying to solicit approval i think it is a coin flip right now. i would be shocked if chevron -- their initial offer was final. i think the balance and security they provide with over a $200 billion market cap means they don't need to exceed the oxydental offer. the yields, the low data in that equity would make that.
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>> it's been a tough story for the company. they streamline their portfolio earlier in the decade. they have a very large dividend obligation it's $2.4 billion a year. at the end of the day the growth story is a little more muted for them, and you tend to see investors favoring growth in the industry >> yeah, all right
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tim, looking at oxydental. it's a pleasure. thanks for coming in talk to you soon coming up, a worldwide exchange exclusive former white house chief strategist steve bannon and hedge fund legend kyle bass both sitting down with us tetr,oghe and both blasting china. the interview you can't miss coming up. - i love my grandma. - anncr: as you grow older, your brain naturally begins to change which may cause trouble with recall. - learning from him is great... when i can keep up! - anncr: thankfully, prevagen helps your brain and improves memory. - dad's got all the answers. - anncr: prevagen is now the number-one-selling
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what's wrong with the company? more ahead get ready to pay more at the pump gas prices are likely to rise in your town. blasting china and wall street what steve bannon said about a trade deal that every investor needs to hear. the exclusive sound as worldwide exchange rolls on right now. >> happy friday. i'm brian sullivan there is a lot to get to today, but before we get to all your money in businesses, let's get you up to speed on some of the other top stories, including a nasty storm that is headed our way on the east coast. phillip mena in new york now with more. phillip. >> hey, brian. good morning first, we're going to talk about joe biden and donald trump it's going to be one day since joe biden officially announced he is running for president, but the former vp and the current president are already taking pot shots at each other. sflo i think that when you look at joe, i have known joe over
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the years. he is not the brightest light bulb in the group, i don't think, but he has a name that they know. >> the president's insults came in response to biden taking aim at mr. trump in the video announcing his candidacy in the clip he criticized the president's comments in the wake of the charlottesville white supremacist rally as he was -- zbliefrmt a deadly storm is churning towards the east coast putting 20 million people at risk this weekend. so far at least five people have been killed by flash flood sg and tornadoes. the deadly storms are carving a path of destruction leveling homes and scattering debrie. history repeated itself at the nfl draft. after baker mayfield went number one overall last year, another heisman winning quarterback out of oklahoma goes first again the arizona cardinals selecting kyler murray with their top pick brian, this guy is an incredible athlete. the first ever player to be drafted in the top ten in both
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baseball and in football how about that >> amazing you know who the arizona cardinals drafted for their first round pick last year >> josh rosen. >> what position does he play? >> quarterback they're stacking up. >> it's amazing. yeah have a great weekend >> you too let's get back now to business headlines this morning and your executive recap. all the news you need to know in about one minute kate rogers, can you do that >> for you, brian, anything. here's what's leading cnbc.com right now. intel is the stock to watch today. it's down big, as you can see in the premarket, after the company slashes its revenue forecast for the year we're going to hear much more about intel's quarter coming up later this morning intel ceo bob will be live at 1 1:20 a.m. eastern. amazon crushing estimates for the first quarter reporting ubs beat amazon hiring a premarket two big ipos also on deck. uber kicks off its road show today. sources telling reuters the
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ride-hailing giant is looking for a valuation between $80 billion and $90 billion. that's much less than the $120 billion investment bankers told uber it could set last year. on the flip side, slack gears up to hit the markets through a direct listing, and stock activity is picking up on the private market according to one report the company could be valued at nearly $17 billion that compares to its latest valuation back in august of just over $7 billion. brooirn, baugh >> kate, we'll see you in a few minutes. thank you very much. here's another macromarket your money and investment flip right now. we're halfway through the 5:00 a.m. hour. stock futures are dragging down. being dragged down by intel. dow futures off 54 right now the stock had its single biggest drop a price weighted index like the dow. not market cap price. one stock. i get all choked up. one stock can do a lot of damage >> with the overall market covering just below all-time
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highs, where are the big opportunities for you and your money in a market that has had a heck of a run already. joining us now joel shulman, founder and cio of entrepreneur shares they have some of the best performing etfs out there. great to see you again >> good to see you >> called it back in december when everybody was, i mean, literally hiding under the table sucking their thumbs crying, you were slow and steady you said reinvest. >> we launched a new ipo we did a non-u.s. ipo for that reason our u.s. midcap has been up 45%, and the u.s. large caps -- >> 45% in what time period >> since christmas christmas. >> your midcap etf was up -- >> not -- we have an sma.
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did you see opportunities in the u.s. small caps? >> yeah. we're in the process of launching a u.s. small value fund for that very reason because they've been beat up in fact, in the last month they've been up 6.5% the last 30 days small value -- small growth -- it's one of the few areas left in the u.s. that's not yet caught up to the 2018 highs. >> that's why i brought it up. i do wonder is small value an oxy moron? how do you value small value like jumbo shrimp. >> these companies have been beat up. we like -- within small value there's two groups they happen to have the ipos like lyft. >> when i look at 38 or 45 or
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whatever percent gain in four months, joel, in four months i understand we had summer taining. it's hard not to ask how much more realistically do we see from the rest of the year? i'm not trying to be pessimistic. it's unbelievable. >> we're asking the same thing these are the questions that people are asking back in september. how much more? i think things are nicely valued i love the idea that on any given day you can have amazon going up on the 3m or -- >> everybody is not a bunch of let mings. >> i think that's a sign of a healthy market >> people paying attention to
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individual stocks, actually doing their homework, looking at the numbers, understanding their business >>. >> i think for -- >> what i concept. >> in investments, this is what we want. we want good stock analysts, good pickers your audience and so forth knowing companies to pick and going after them, and that's the way to do it i love these markets >> do you love the u.s. markets over europe with the non-u.s. small cap? you want to buy low. i'm told where do you sell? we have a non-u.s. small cap that's global, and so we think that within our funds we obviously like all our funds, but we think our best product right now is non-u.s. small cap. right now that's per cede as value. there's growth oriented stock, and it's perceived as value. this market got beat up last year >> looking at small caps around the world, and incredible returns off those.
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now, you might have caught a big chunk of that yesterday as we interviewed them live as it happened there was a lot more to talk about. excuse me. we kept it going that includes talking to those guys about what bannon thinks about a china trade deal listen >> listen, this is not -- there is economic war with us. this is not a trade deal this is an armistice, okay >> an economic war zoo we're about ready to make a trade deal >> i think we're long -- i think -- the market is -- this is when i say the market, and wall street are the -- it's the ir department for the chinese communist party. every day you hear, oh, we don't cut a trade deal that has $2 trillion of soy beans. the market will drop is,000 points >> we're leading -- we're trying to lead. >> 100%. there's a pressure on president
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trump that's been relentless president trump has finally changed the entire apparatus of the u.s. government and set a strategy eenlic economic dialogue or getting passed along with they're stealing our technology, and we're financing them he is finally saying no. we're going to have six major verticals of structural reform that basically integrates them into the west. we cannot go on with these two systems we have. we're either going to have free market capitalism as the industrial democracies happen with freedom of speech, freedom of religion, and free capital markets with fish responsibility or -- >> a sovereign nation can tell a different sovereign nation how to act >> if we cut a loss from technology, the ccp would collapse we're the united states of america. we are a sovereign nation. you get to a point where they managed decline, and it was basically giving china everything they wanted it was the working class that suffered all the factories and jobs went from the midwest the opioid crisis, jd van, the guy from --
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>> >> they took the place, and when the jobs and the factories left tariffs are about self-worth and self-determination these factory workers, we need to bring those manufacturing giants back. that's why you said something to me, kyle, years ago that stuck with me. i'll never forget this as long as -- i've used your line, by the way, which is there's never been a country in the history of the world that pays high wages to make low value. >> it means we can't pay anybody a wage we have to make it overseaed. >> there is a balance. >> in other words, can the american consumer -- can we change the dialogue? >> global free trade brings it, right? basically you are going to see a
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low wage nation move up like we've seen in china. you are going to see high wage nations move down. it's what's going to happen over time is it a game that's rigged or not? we're giving china the ability to raise money through hong kong and raise dollars through the united states, and they're forcing capital -- dollar-based capital into the msci and maybe the bloomberg bond index they're forcing hundreds of billions of u.s. dollars into china to help them build the one -- they have to have dollars to do this >> we basically have plays in china making good for the -- this is what the revolt in france is about. we have to start to have some evening lib yum. that's like china -- what trump is doing, these major structural reforms starts to integrate them really into the free market industrial democracies of the
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west, okay we now know is a system that's created more freedom and more wealth than any system in history. once the chinese -- once the chinese understand that the ccp is leading them down a path that can't be sustainable, once you get these two systems working together, the world will not just have people they'll have enormous prosperity >> this show goes out. this show is being broadcast live right now >> do you believe -- they know that you have the ear and so do president trump. do you believe we will cigarette a trade deal of some kind. there are many people in the chinese company party that understands that they need massive economic reform. besides political reform economic reform to more integrated it's those reformers that back channel keeps saying you guys got to be tough with us. you have to be tough with us because we've got to stop this madness. particularly the warlordism
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that's state-owned industries are. remember, this is the way the chinese communist party skims cash off the top it's the state-owned industries, and china's greatest export is deflati deflation. it's overkaft and deflation. >> artificial currencies pay. worldwide exchange on cnbc.com we went 15 or 20 minutes we went back and forth
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all of us were sweating when it was over when we come back, disney bracing for a record weekend at the box office could the avengers have the first ever $1 billion opening? plus, a baseball play you've never seen before. reds ofider ffutelje winker had a big problem. dip or not to dip? the full story when we come back
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later today gas prices could be even higher according to triple-a, the national average price for a gallon of regular is $2.88, up nearly a quarter for this time just in the past month with oil higher, get ready for even higher prices literally prices could go up today. time for the morning's top trending stories kate rogers back with those. what are we going to talk about today? >> let's start with this a year after the cambridge analytica scandal, facebook is still dealing with the fall-out. their latest privacy move is banning once popular personality quizes from the site the privacy problem was less about these quizes themselves and more about the data these apps were allowed to collect cambridge analytica acquired information on 87 million people what do you think about that >> well, i think they're collecting people's data without them knowing, and that's probably something that most people would not like. as far as that goes and their little push towards greater privacy and transparency, it's a positive move. >> what about the personality
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quizes weren't you big on that? >> no. i have a facebook. you can like it, but -- >> you can do it on buzz feed now, i guess other avenues. >> experts are saying that this is the $1 billion mark >> wow i know that julia borestein apparently -- she got an early look it's great, and it's three hours long, but it goes by like that >> that means it must be really good can't wait to see it >> here's a video that you are really going to have to see to believe. have you ever felt like baseball games are just too long? cincinnati reds left fielder jeff winkler got a little hungry in the sixth inning yesterday. he made the catch and then paused to check out a braves fans nachos, and it looked like the fan was ready to share, but
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winkler decided not to grab a snack from the enemy seems like a wise choice >> missed a chance you swap the ball for the nacho. give the guy the ball. he was going to get it anyway. then take a nacho. that's a trade deal. >> nacho feels like a heavy >> nacho fee♪s like a heavy every day, visionaries are creating the future. ♪ so, every day, we put our latest tenology and unrivaled network to work. ♪ the united states postal service makes more e-commerce deliveries to homes than anyone else in the country.
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>> the chiez every rise of bernie sanders, and he has gone from a 12-week 25 periods chance of winning the democratic nomination he has really impacted these stocks now with biden entering the race, the likelihood of medicare for all has come down because biden has been a supporter of the affordable care act. there's still a lot of risk over the next course of the year and a half you know, until we eventually get to the election. regardless of who wins the democratic nomination, recordless of who wins the election, i think it's unlikely medicare for all right? there's great opportunities in health care. as long as you are willing to take it on the chin until the election i think that's the key you know, this sector is under valued compared to its 20-year average, and it offers the highest estimated growth this year of all sectors on both
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revenues and earnings. investors just aren't paying for it right now >> it seems risky to buy a group of stocks based on gambling on a political outflow? >> you are absolutely right. i mean, this is what has brought the stocks down, and they are just trading at a great discount to their historical values a lot of these things are trading at peg ratios of 1 to 1-2, and the s&p is at about 2 if you are a long-term investor and have the opportunity to get into these stocks and really reap the reward a few years down the road you know, if you are looking to trade, get in, get out, make a quick toss you better look elsewhere. health care is not the sector to do that. >> overall, but quickly, the overall markets, red hot start to the year. how much more do you believe there is left in this tank >> i think there's quite a bit left i mean, you know, everyone was predicting an earnings recession. that's premature everyone was expecting a 4% earnings decline
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companies are beating those estimates by 5%. if we just get one turn on the multiple, we go from a 17 to an 18, that takes us up to 3,100. there's plenty of room to run. >> yeah. i mean, it's just been simply an incredible run this year, and you see more to come mark tipper, you made a lot of people happy with that comment thank you very much. we'll chat with you soon >> as we do every day at the end of the show, we do the most random and interesting, hopefully, thing you're going to hear all day it's called the rbi. it's friday, so that means it's payday for many americans. when you probably think of america's highest paying jobs, you probably imagine athletes, skos, doctors, lawyers maybe even some television news aijors according to the "wall street journal" you need to add oil refinery worker to that list last year oil and gas drillers and refiners, some of them had a median pay of nearly $200,000 per worker per year.
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we'll get our first look at gdp for the first quarter. pricks are straight ahead. lots of big earnings movers to tell you about amazon with the big beat intel flashing its guidance. if you look at the dow, that's one reason it's down intel is down $3, $4, and pickup truck sales driving ford shares higher plus, uber sets to launch its ipo road show today with a valuation much lower than the $120 billion number that investment baimgers pitched last
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year it's friday, april 26, 2019. it may never stop raining again. >> i'm okay with that. the pollen, wash it away all kinds of allergies >> taxi driver "squawk box" begins right now. live from new york, where business never sleeps, this is "squawk box. >> good morning, everybody welcome to "squawk box" on cnbc. s&p futures down by 3.5 points the nasdaq off by 25 again, we're not far from the new records.
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