tv After the Bell FOX Business July 18, 2016 4:00pm-5:01pm EDT
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equity investor. alternatives, people are pricing as if it will never grow even though they will not get returns. people are pricing in really negative outcomes on many financials and autos. they're pricing for general motors. pricing a bad outcome. there is a lot of opportunities in names that rely on a decent economy. [closing bell rings] liz: a record, patrick. you get to witness it. all-time record for the dow. is it for s&p? anything higher to the than -- yep, a record for s&p. thank you, patrick. david and melissa big day for earnings, guys. david: it is. whether called a trump rally or northanother record day. dow ending all-time high for fifth day in a row. nasdaq soaring to a new high for the year. we're awaiting second quarter reports from heavy hitters netflix and yahoo!. that is due out any moment as soon as we get numbers. i'm david asman. melissa: welcome back, david
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asman, i missed you. this is "after the bell." we have you covered on big moves in the markets. here is what else we have for you this hour. republican convention on the way, an event billed as a convention unlike any other in history. the gop is looking to bring together a divided party to take back the white house in november. this as we're getting news there is still a fight for ted cruz's name to be placed in nomination to go up against donald trump. protests for and against trump are growing outside the convention center. we're following it for you live with reaction from cleveland. david: let's get back to the market consist. dow ending day with fifth straight record close. dupont, home depot, apple, goldman sachs. phil flynn, price futures group and fox business contributor watching action in oil and gold from the cme and lori rothman from the floor of the new york stock exchange. lori, the nasdaq getting a big boost today.
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>> nasdaq was star of the show. japan's softbank bought arm holdings, this is $32 billion deal. that chipmaker supplies to apple. so that is a pretty significant deal. apple closed best level so far this year, 10 points, that deal to buy arm, sent shares surging up more than 40%. gave a nice boost to many other tech names today. so basically you've got a bunch of these chip-makers as well being lifted by the news on arm holdings. $19 a share up 40.5%. they hit new highs. some. names, coach, analyst at bayer upgraded to $50 a share. 43.38 the, that could be a an interesting buying idea. burlington coat up 8 1/2%. boosted their guidance that gave a lift to competitor tj maxx. dollar tree shares up 1 1/2%. we'll send it back to you guys. waiting for those earnings.
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melissa: there you go. lori, thank you so much. the failed coup attempt and all of the turmo in turkey doesn't seem to have much an evect on oil today. still settling lowers right? >> it sure doesn't. i'll tell you when that news broke on friday we saw oil prices jump a dollar. late on friday afternoon, right after the close. we didn't really see the full impact. once you get through a crisis like that and doesn't impact supply it goes the other way a little more. you get a relief selloff. i think that is part of what we saw today. this is very critical area when it comes to global oil supplies. 3% of the world supply goes through the turkish straits. any disruption would cause a spike in price. because it failed, it was off and running. gold, a little bit of risk premium in there. back to you. david: phil, thank you very much. july proving to be a hot month for stocks as all major indices
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seeing major baines although at the start of earnings season, thomson reuters predicting second-quarter earnings per share will decline, yes, again, 4.7% from a year ago. here to weigh in charles payne, steven rosilio and chris versace. charles, first to you, we have what people are still calling a earnings recession. how do you square the two? >> quite a few things. this still might end up being the sixth best earnings period in history and strong dollar and people talk about flight to safety and quality. last guest with liz, was absolutely amazing. if you think this is bubble, market, led by utility. i have never seen -- david: is that that search for yields is that what that is all about. >> not just search for yield but s&p utilities up 20%. that is mind-boggling. continue to invest in large great american companies or not so great.
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arm holdings, softbank paid 7% premium from the "brexit" low. that is uk stock that got crushed. why? because they believe it will be great, 10, 20, 30 years from now. david: chris, let's weave in politics. people are talking about a trump rally. could that be a factor here? >> i think it could be. we'll learn a lot where trump will take things this week. we'll see some of the policies are. hopefully we get a little bit of unity. doesn't sound like that might be the case as convention starts off. without a doubt it will be earnings. 100 this week. we'll find out whether or not the index is going to deliver 13% -- david: hold on a second, guys. we have breaking news from netflix. they're out with second quarter results. lori, how do they look? reporter: this is disaster. shares down 13%. we're going through the numbers. this is the problem, netflix reporting international streaming additions 1.25 million when the company's own forecast
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was two million. subscriber growth is all about for the company. rocky road for shares, down 13% year-to-date. implied volatility out of options market warned us of this. a lot of new competition, companies like hulu this is a big problem tore net nix, guys -- netflix. david: this is the worst possible outcome for what they were hoping for? >> yeah, absolutely. there really is a one-two. slower subscription growth and you have other companies like we just heard, everybody from hulu to amazon, even apple starting to come out with original content. i think it will be much more competitive environment. but longer term after everything settles out, amazon could be one of the names left standing given the content base it has. for me on pullback, might be something interesting long term. melissa: charles, i mean how do you miss your own estimate on
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that international subscriber growth? there were people out there thought they were sandbagging on number. that number wasn't that big. they come out and supposed to beat two million, and 1.52? whoa. >> they probably were sandbagging. that is why the stock will get hammered pretty big. and already is. this is class of its own. one of those high flying names and you throw away all the valuations networks. we've seen this before, with chris buying on weakness. i've seen the stock get crushed. i was in it week or so ago, next day someone upgraded, golly, i feel great now. david: good for you. what i'm rolling the dice on is ibm which is missed every quarter for last 4,000 years. i'm actually in at 150. i think that will be surprise upside. melissa: you're a wild man. chris, when you say you're looking at it for long run. the problem with this company in the long run they add subscribers, reinvented themselves which is amazing but now making this very expensive
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original content which bring as a t ofeoplon brd b en wh thpricincrse, haveetfl. i dot pathatuch r it ery nth. don'see ng tm hothey can ssibly add enougpeople to make up for how much they're spending. >> well you have to remember they had this huge push on international side. that is the growth story, right? we're fairly mature here in the u.s. all hinges on international. and the other thing they have to do is really ramping down those expenses. that is the only way they go from something like 24 cents in earnings this year to north of a dollar they need perfect co were probably priced to perfection. melissa: charles, he says the growth story is outside the u.s. that is absolutely true but the u.s. customers are ones that really provide the profit. they're the ones that are high margin users where they get the most money out of them. look at it, this is the fourth consecutive quarter of slowing growth here in the u.s. if they saturate that market they will have to really jack prices further.
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>> one word is china, the bottom line. you know what? china will be the difference maker. if the stock gets another big leg to the upside, for a brief window of opportunity beating everyone else to the punch in china. that will be brief. ultimately everyone will be there and be competitive. they could get the jump there. this very high flying, very volatile stock. it is not for faint of heart. i hope everyone in it understood the risk going into the close. melissa: charles, would you get back in again? you got in, got out, got upgraded, now getting hammered. what do you think? >> i will let the dust settle on that a bit. softbank deal has me more interested in internet of things. i was early into the names and didn't live up to the hype. i'm watching huge premium. i love things so thed with housing. i think that is sweet spot second half year. whirlpool i'm doing great and mohawk, one i'm looking at, mhk. melissa: chris, what do you
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think? >> i think i see where it settles out to recount my numbers to seat risk to reward is. like charles is saying there are other companies out there. one of the best performers thus far i think it will be a fantastic performer back half of the year will be amazon. even where it is it is still roughly a peg ratio of right around one. a lot of upside to go there. google is looking good. many other as they say fishes in the see. david: charles, excuse me, netflix has revenue problem. they have missed revenue estimates past four quarters now it is five, five quarters in a row. isn't this emblem mattic what is happening in country where you have high stock valuations but they keep missing on the revenue front? >> revenue fronts you're right have been tough over last few years. that is the big key. some can argue is the strong dollar. there is a reason why smucker's has been a great stock much late. church & dwight which makes arm & hammer baking soda, clorox,
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these domestically-based companies that benefit from strong dollar, with stronger u.s. consumer. contrarian argument of course is the larger multinationals are getting hurt by it. that's a problem. also pricing power, david. you're right. only right now in the last five weeks am i seeing signs of potential wage pressure to the upside. retailers, businesses are tough to be able to raise prices. they might later on in the year. david: is it, steven or chris who is available now? melissa: chris. david: chris, okay, the fact is we got a trade, potential of a trade war on the horizon. we have two candidates now for president, no matter who is elected president, both have been very sour on trade. does that affect companies? because netflix was at a lot of hope on international subscribers. companies that do that, are they in trouble now because of potential trade wars? >> any company that has significant international exposure or ones that are pinning their growth on
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international exposure and it is not just netflix. you could talk about under armour as well. you can watch out those companies. circle back to charles's comments, back to what is working, domestic american companies. american water works, dividend, fantastic dino. i'm severalling back to those type of names. i'm concerned about the earnings reports we get next couple weeks. i candidly see a major reset in earnings expectations for the back half of the year. expectations are for 13% growth compared to the first half year. 2011 to 2015 it averaged 4.%. that is, that's huge. melissa: wow. >> huge. melissa: charles, that's a good point except for you were saying at top, we were prepared for this earnings season that it was going to be the worst in the history of the planet. >> yeah. melissa: came in all these estimates were so low and this was really going to show and hasn't been turned out, hasn't
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been blockbuster but nothing like what was predicted. >> that is the expectations game. it began with alcoa of all companies. melissa: right. >> alcoa which was down year-over-year but nowhere near what they thought it would be. the stock subsequently ran, lot of names like u.s. steel, up 26% in a month. that you normally don't see in old staid companies beaten down and left for dead. expectations game play as major role. we're particularly short-term oriented investor class. i think the second half will be better. a point made, great point, will it live up to the hype? that will be tough. a lot of people looking like at the energy names, crude 45 or 50, compared to year ago in the throes of the meltdown, maybe that makes a difference. melissa: chris, you were talking, charles was talking about how the strong dollar was making a big difference for domestic companies. what do you think about inflation? last week alan greenspan was on the network saying he sees signs of it coming back. we've been waiting for inflation
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to rear its head for a while now given the fact we've been printing money at this rapid pace. do you see, do you agree with the chairman? do you see signs anywhere or does that sound wacky to you? >> sounds a little wacky to me i say that when we look at ppi, cpi, we haven't really got any major moves and when you strip out energy which the fed always does when you look at inflation, we've seen pronounced move in oil prices. melissa: hold that thought. we'll come back to it. ibm reporting second quarter results. we go to lori rothman. lori? >> not as exciting at netflix. ibm, shares up a little bit. down a little bit here looks like in the extended session. coming in ahead of expectations in terms of earnings. looks like revenue was a little ahead. ibm has been in the transition. they're trying to offset losses from their core computer business and focusing on artificial intelligence data, cloud, security services. there it is clicking up a little bit here in extended hours.
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not a terrible report. pretty much in line. melissa: way to go, charles, get your reaction because you mentioned earlier you wanted to see what ibm is going to do. >> so far so good. here's the thing. i think ceo is in the hot seat. she should be making even more aggressive deals than she is making. they made a lot of acquisitions here. but should be selling off those non-performing assets. street is starting to give them didn't if doubt and i hope she takes the ball and runs with it. melissa: tremendous panel. thank you, david. david: we haven't heard details from yahoo!. we'll get to it when we get them. the republican convention is underway. the gavel came down. what is the scene like inside. what can we expect from the big lineup of speakers? lou dobbs, host of "lou dobbs tonight" joins us live from cleveland. melissa: action heating up outside of the convention center as well. we're monitoring the growing number of protesters, both for and against donald trump. they're all out there. david: as we get closer to the official nomination of trump for
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so you never miss a moment, ♪ ♪miss a minute, miss a medal. ♪ ♪ why settle when you can have it all? ♪ ♪soccer to wrestling. track and field to basketball. ♪ fencing to cycling. diving to balance beam. ♪ ♪all you have to sa♪ ♪ is, "show me," and boom it's on the screen♪ ♪ from the bottom of the mat, ♪ ♪ to the couch where you at? ♪ ♪ show me the latest medal count♪ ♪xfinity's where it's at. ♪ welcome to it all. comcast nbcuniversal is proud to bring you coverage of the rio olympic games. melissa: netflix shares sinking after-hours following release of company's second quarter results. u.s. and international subscription additions fell short of wall street expectations. the company added 1.52 million subscribers in its international markets. analysts were expecting about 2.1 million. big miss there. david: big disappointment, yeah. the republican convention is underway. thousands gathering in cleveland
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what has been described as unconventional four-day convention. day one kicking off with the theme, make america safe again. focusing on gop's commitment to protect the u.s. there is no shortage of speakers tonight's prime-time line-up including donald trump's wife melania, retired arm lt. general michael flynn. senator joni ernst, tom cotton, arkansas senator and alabama senator jeff sessions and former new york city mayor rudy giuliani. we have lou dobbs, host of lou dobbs on fox business. a lot of people instinctively think about internationally, making it safe from terrorism and isis but then we have horrific shootings of police officers last week and on sunday. will the focus be on that, more on what's happening domestically on our own streets?
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>> as you say, david, most people think of when keeping america safe to be referring to foreign policy, our military, defending the homeland. when in fact we're being racked now with a, just a tremendous number of attack against law enforcement and importantly we are also at the same time seeing president of the united states himself not supporting law enforcement in the way most citizens would want him to do. in fact in the minds of many, he is leading many of the rhetorical attacks against law enforcement and in convention tonight will be focusing on precisely this president, his policies, and those including the former secretary of state in the obama administration who have brought us to the place in history in which we find ourselves. david: yeah. bringing it to the economy, lou, nothing affects an economy of a city or a neighborhood like safety. the issue of day-to-day safety.
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making sure the cops are there to keep you safe. if cops are being targeted relentlessly way they have been over past year or so, this could really lead to downward spiral of some major metropolitan centers like new york. >> i think that's correct and today we saw the acquittal of the police lieutenant in baltimore who was the senior officer in those trials brought by the state prosecutor. again an acquittal. four cases, absolute acquittal or hung jury. we're watching now, in major metropolitan cities all across the count a real attack on law enforcement. it has to be turned around. as you're suggesting there is premium in our markets. there is a premium in this economy for stability, for security and for safety. and we need to see mayors standing up for their police departments.
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we need to see governors doing so for their state patrol. and their state troopers. it, we have to have a president who is going to stand up for the idea of law and order. it is critical to all of our lives and to our society. david: it is indeed. we should remember in 1968, that is what richard nixon ran on. he took it hands down. lou dobbs, great to see you. >> thank you so much, david. david: melissa. melissa: wave of attacks targeting our nation's officers. details of horrific shoot in baton rouge that left three officers dead. more of that is coming up. >> it is reprehensible that the president of the united states has blood on his hands and will be not.
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news from the floor of the republican convention they are demanding a boat. these are the anti- trump forces. let's listen in. [inaudible] who is proud to be an american i am a united state senator from the great state of wyoming. it has been my honor to serve you you can be very proud of the delegates that you chose to represent you during our committee proceedings. they were tough they worked
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with great stability and common purpose what they achieved can be summarized simply we believe the united states of america is unlike any other nation on earth . we know that america is exceptional because of our historic role first as refuge and then as offender in now as exemplar of liberty for the world to see. we affirm as did the declaration of independence that all are created equal and endowed by their creator with inalienable rights to life, liberty and the pursuit of
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happiness. we believe in the constitution as our founding document and into the enduring the covenant. we believe our constitutional system limited government, separation of powers, federalism and the right of the people must be preserved and compromised for future generations. we believe that people are the ultimate resource and that the american people not the government are the best stewards of our countries god-given natural resources. as americans and as
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republicans we wish for peace so we insist on strength. we seek friendship with all nations but we recognize and are prepared to deal with evil in the world. based on these principles this platform is an invitation and a roadmap. >> rep. john barrasso giving us a platform of that republicans. we knew it was coming. a lot of anti- trump republicans there is a hand full essentially protesting because of the procedures that were russian sent -- went over state-by-state vote. they were very upset by it. they shout about it. although again because the numbers are so small they really couldn't do anything about it.
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it might be the end of the republican anti- trump vote. boat. we will see. melissa: with the republican convention kicking off while the will the party finally come together. mike pence could be the answer. >> one of the reasons is party unity. seventy people have said our unity. mobile insurance i spent 20 years active duty they still refer to me as "gunnery sergeant" when i call being a usaa member because of my service in the military to pass that on to my kids something that makes me happy my name is roger zapata and i'm a usaa member for life. usaa. we know what it means to serve. get an insurance quote and see why 92% of our members plan to stay for life.
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david: keeping abreast of the reporting it's down more than 60% after following the release of the second quarter. lori has an update for us. >> during the second quarter netflix only added 160,000 subscribers here in the unesco units and one and half million a broad enough below expectations also they are spending a fortune here in original shows and movies. that figure was just over $10 million a lot of concern that user growth is fading and they're spending more money. thank you very much. melissa: the delegate revolts began as donald trump tries to reunite the republican party. they were trying to challenge
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it again. thanks so much for joining us. first of all let me ask you about the tone of the convention so far. when he was talking about the romney convention i think it was the most boring thing he's ever seen in his life. it is going to be a lot more exciting. is this a better strategy in your mind. you want people to watch. donald trump open the presidency. of course it is good. you want there to be entertainment. you want voters engaged. more than any candidate.
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that is the imagination. a lot of storylines are also the people that are not there. the last two republican national presidents. they are making the narrative that the traditional party is in supporting them. >> i know a lot of these folks find the establishment. it's just some of these folks had, not to -- chosen not to come. we care about the voters in the millions of voters who are supporting donald trump. a couple of people. >> the thing that was supposed to make the establishment happier was mike pence who was on 60 minutes last night. i will play for you what i think is the funniest part of the interview. >> this man is not intimidated by the world. and donald trump this good man i believe will be a great president of the united states.
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>> i love what he just said. melissa: i think everyone in the studio is laughing because a lot of it's but he's like the ultimate straightman straight man. he finally said the thing that trump said. could they make a good balance that would make the folks that aren't there in a reluctant support happy quacks. >> of course. that's exactly what can happen. people were upset that donald trump was not uniting the party. now he did take some somebody who is uniting the party it's a big spectrum and governor pentz recommends that. but also he so good in the economy. when he came to indiana as governor. just three years to under 5%. 150,000 jobs created. you have someone as a strong leader melissa: thank you so
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much for joining us. david: baton rouge law enforcement officials speaking today. it ended in the deaths of three officers. the shooter identified as gavin long from q to 30, missouri was killed during an exchange of gunfire with police. john bell edwards speaking about the attack today. here's what he have to say. >> he came in here from somewhere else to do harm to our community and specifically to the law enforcement officers in our community. what is telling about that is for six days prior to the violence of yesterday morning there had not been a single arrest in baton rouge related to any protest david: we are joined now by the former attorney. whether there is a war on cops.
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i've to start with people who are suggesting that there is bias and police enforcement in the united states the day after they come out with a pledge that they want both candidates to take same when my first 100 days i will take action to end all of federal funding for low enforcement for law-enforcement agencies that discriminate against a notion that police agencies are racist. >> i think it's sad to come out with that even after the deaths of these officers. police officers note were not looking at color were looking at crimes. the statistics don't support this. it's been said for votes. i think it's ridiculous. >> and then we have hillary clinton speaking at that meeting sameness. >> we cannot rest until we root out implicit bias and stop the killings of africans americans.
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>> it said there is a recent component. >> she is suggesting that these cops went out on that day whether it was baton rouge or minnesota and wanted to go out and kill an african-american. i can assure you that that was not the case these officers that were unfortunately engaged in those shootings are very remorseful that they have to engage david: what she's saying and the president is saying is simply not true and i'm african-american professor from harvard somebody with a conservative bias came out with a study that said this he studied all the shootings by police of various individuals in the united states. we find no racial differences in officers involved shooting. blacks are 23.8% less likely to be shot at by police relative to whites. hispanics 8.5% less likely.
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totally denied and reversed that logic by clinton and obama. >> people want to continue this anti- police predicate even if it's a lie. it doesn't matter. at this point we had people going around to hang their hats on that. it's ridiculous. will they believe the facts or the rhetoric which isn't true. we have a responsibility to put out the facts into ask the politicians and those public officials that are putting out the false rhetoric to be more responsible because they are getting killed and it's can it continue. and these are the same cops at the front line of defense after demonstrations against them. >> think you for your service. melissa: thousands of activists arriving in cleveland marching to protest donald trump. the latest from the floor of the rnc it's all coming up
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legalzoom. legal help is here. melissa: the republican convention is underway. several groups planning to protest including the new lack panther party. cleveland with the latest. >> we had been and what merging for the better part of an hour. it is out here to try to end poverty. the scientists say that right now. it has been par for the course on day one of the convention and protest. it has been allowed but a peaceful march. it started with a concert. you can see people make their way through. i spoke to an older woman who was rolling through here in a wheelchair. she said ending poverty that's very important to her we saw
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some bernie sanders signs. all kinds of different marching. it has been peaceful. the police have been placing the so far. it is on their bicycles. you see a wall of cleveland police. they are wearing shorts and bicycle helmets. they are all equipped with cameras. that's what we have we've seen from the police so far. it's early but so far this is one of the most organized protests. they were there. they were making their way to downtown cleveland a little less than a mile to go. we will keep you updated. melissa: thanks for that. david: webster is in the newsroom.
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we lost our patients about ten minutes ago. eps coming and at 9 cents. it's one sent less than the estimated. as you can see barely moving at all and after hours. the price per ad has dropped 15% for yahoo. the biggest story is always what about their core business. is that the final day for bids who is going to be the winning bid. no one is talking about that particular issue. we know that verizon is going to be interested. possible at&t. even the cofounder of quicken loans bank. those are for potential buyers of the web business but nothing has been said on the report but the basic numbers
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are okay and as you can see it's been reflected in the stock for now. david: thank you very much. melissa: restoring law and order. he is pledging to make america saved again. response to the plan. >> we are the law and order canada and with the law and order party were to change things around. there is can be respect again for law and order. ♪
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david: we are looking at the floor of the republican convention. the mainstream media loves to talk about how divided the republicans are in the anti- trump movement is he huge. there was a popgun that just happened about how -- half hour ago where there was an attempt for them that would've made it easy for them to get their case. melissa: we have several reporters out the -- out there as well. it hasn't amounted yet to what some might have thought was coming that way. over the weekend the last couple of weeks with law enforcement. we are watching it unfold so far police there in control of what is going on. david: what has happened with the killings of police over the past week makes a fine point about make america safe again.
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i don't know if it was supposed to be so singly locust he can make it could make it from a very personal experience. i want to bring him in. the theme for today as he said "make america safe again" today. a lot of interest mainly because we haven't heard that much from her. what is the chatter there. >> a lot of people would just like to hear from melania trump. i think what the trump campaign is really hoping for in cleveland is for some return to a semblance of normalcy and the primetime program tonight. the afternoon coverage and we will see how much this
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continues to bleed on has been dominated by what is happened on the floor moments ago with a giant brouhaha over procedural fights. that is obviously not with the trump campaign wants to be the dominant narrative. melania trump is one of the high profile case. david: wasn't really a giant protest quacks. >> it was a pretty hefty one because you have the majority of what appears to be nine to 11 delegations put their names to signature requesting under the rules a roll call vote. the chair said it was overruled because enough signatures have been withdrawn. i guess there will be some hashing out of those facts. at their was of made-for-tv moment from the never trump folks to be there. i think they want to get back on track with normal programming starting with the start of the show melania
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trump. melissa: >> why were they successful? >> it's unclear. there were enough signatures at first to trigger under the rules a roll call vote of all 24 plus delegates on the floor. the chair said in the intervening minutes or hours officials at the convention were able to get enough members of various delegations to withdraw their signatures from the petition as a renter that mute so it was just a voice vote. >> thank you so much for jumping on. david: the latest from the floor coming up next. i hear you. to everyone with this pain that makes ordinary tasks extraordinarily painful, i hear you. make sure your doctor hears you too!
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(ee-e-e-oh-mum-oh-weh) (hush my darling...) (don't fear my darling...) (the lion sleeps tonight.) (hush my darling...) man snoring (don't fear my darling...) (the lion sleeps tonight.) woman snoring take the roar out of snore. yet another innovation only at a sleep number store. melissa: the last stand they flood onto the floor here.
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they gets a sense that this is the first day. they got out of the system and that's about as far as it can go. david: with a lot more action to come. risk and reward starts right now. >> those in favor of the rules package will say i those opposed shall say no. deirdre: drama on the floor. kicking off in cleveland ohio the last stand of the never trump movement. the biggest names in politics and business with us here
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