tv The Claman Countdown FOX Business October 22, 2019 3:00pm-4:00pm EDT
3:00 pm
too attached to up or down and look at the markets from an opportunistic standpoint. right now, charles, it does look like there's some pretty solid upside momentum from here. charles: let's leave it there. by the way, i agree with you guys more than those other two guys. liz claman, over to you. liz: i will take it. if you are wondering why the dow has lost some 90 of its 119 point gains, just look across the pond. british prime minister boris johnson just lost the most important part of the brexit vote that was going on. his timeline to exit by october 31st from the european union has just been shot down. johnson threatening immediately that the government will now accelerate preparations for no deal on the halloween deadline to break up with the european union. a hard brexit. the pound is gyrating, so are our markets. we are looking at green on the screen, but what we're going to do is take you live to london for up to the minute details
3:01 pm
because it could start to push our markets around even more. here at home dairy farmers, autoworkers and company ceos are keeping a watchful eye on the nation's capitol at this hour as a push to pass the united states mexico canada trade agreement gathers steam after national economic council director larry kudlow said it could pass congress this autumn. are we not in autumn right now? well, the former commerce secretary under president obama, gary lock, of all people has been the one pushing the deal on the hill in the past couple of hours. he is going to join us in a fox business exclusive, tell us which dems are now on board and what dems who are still not sure are telling him. on wall street, a mixed picture as travelers and mcdonald's hold the dow back from a bigger gain than we see at the moment. plus the brexit news. we do have the dow up 23. the s&p which had been up by about 7 points has now completely reversed, down --
3:02 pm
down 5, and the nasdaq is now down 42 and heading to lows of the session. we have big oil on trial in new york city at this hour as exxonmobil faces charges it defrauded investors over the truth about the impact of climate change on its business. we will take you straight to the courthouse to check on that because folks that is a widely-held stock. a lot of news going on right now. we have an important downgrade on one of the top banks. we're less than an hour to the closing bell. let's start "the claman countdown". let me get you this breaking news, it's been just 24 hours since the new wells fargo ceo charlie sharp officially took the helm of the embattled bank and he's been smacked with a downgrade. a couple of minutes ago top banking analyst dick bove cutting wells from a buy to a hold, which is the reverse of what dick bove did on august
3:03 pm
1st. now, bove is topping his note with this, quote, a new era of turmoil is about to begin at wells fargo. shareholders are unlikely to benefit until it ends. the bank was hit by scandal back in 2016 when the l.a. times revealed that employees were setting up fake accounts for customers and then charging those customers for services they never requested. want you to look at the stock. it is still up a third of a percent but before bove's note it was up 1%. bove also adds this, not only will sharp's changes which are are certain to come cause uncertainty but the lending giant's high-yielding assets are declining while it's low-cost funds are failing to grow. we're watching wells fargo. it is at $50.63 right now. let me get to underarmour. the founder and ceo stepping down at the end of the year following struggling sales and reports of cultural issues at the sportswear maker. so the stock is up 5 1/2% as you see on the screen.
3:04 pm
maybe it's because of this, gentlemen, that's chief operating officer patrick frisk who will succeed kevin plank. up 1% year to date, sounds great -- up 19% year to date sounds gat right? look at rivals nike and lulu lemon. they are both up year to date. analysts feel those two names have vaulted way ahead in the female focused athleisure race. biogen surprised the markets with news it will seek approval for its previously-abandoned experimental alzheimer's drug, huge jump in the stock. vaulting past the $300 mark at one point. it is below that right now, but the story is in the year to date chart. back in march it had fallen off a cliff, totally plunged when the drug was left for dead and those trials for that particular
3:05 pm
drug were stopped. well, today the seeming revial and -- revival and plans for approval have managed to erase the entire 25% year to date decline. not bad for biogen. let us now go to london and the debate over brexit. it is now raging. just minutes after parliament voted down prime minister boris from the european union on october 31st. they said no. johnson says it was joyful that the house actually accepted his deal in the first vote today, but he's disappointed in yet another what he called delay. what does this mean and could it be why, ashley, our market has really clipped some of the gains here? you're there. you are watching the events in parliament. you are in london. tell us how you perceive this. ashley: well, i think this was expected to be honest with you, liz. the initial reading of the bill that he introduced, all the nuts and bolts of his agreement with the eu was approved.
3:06 pm
all that meant was yes we will look at it. the second vote, the one where the government only gave parliament three days to go through the pages of the text, well, it was not unexpected that he was not going to be able to push that through because boris johnson wants it to fast track. he wanted to get this thing through parliament, voted in on thursday, would have gone to the house, and many amendments would have gone back to eu early next week and assuming they said fine, he believed he could get this thing done by the october 31st deadline. that has been shot down. the eu president yonker has said that he has been following the events of parliament and says that he will now consult with his european leaders on the request to delay brexit until the end of january. let's not forget, boris johnson sent an unsigned letter this past saturday asking for a delay and they followed it up with another letter and said i don't want a delay. so interesting times, but i
3:07 pm
think, liz, what will happen here is that the government has put this bill on pause, and now we're going to have a lot of rhetoric about maybe a general election. but i think it also in preparations for a no deal. liz: ashley, the dow has now turned negative, losing more than 119 points of its gains. i want to read you this headline. the european union commission is in essence consulting leaders on the u.k. request for an extension until january 31st of 2020. ashley: yes, that's right, next year. three months from now. you forget, we're in 2019. that's exactly what the request was for. liz: exactly that request. ashley: to january 31st, exactly that request. liz: unbelievable. we're just watching these markets here, everything is negative now, except for the russel 2,000. ash? ashley: yeah, it is interesting to have that reaction because
3:08 pm
the threat of a no deal liz was still very much on the table. although i would point out under a law passed by parliament, that could not happen, unless the eu itself says we're fed up, good luck, good-bye. i got to tell you, that's not going to happen. the eu doesn't want the u.k. to crash out with no deal. it does them no good at all. i think the eu will hang on in the hopes that parliament can come up with something. but boris johnson, very clear, he needs to get something through, and he got let down today by his partners, the northern irish party who had been up until had been in partnership with conservatives, but they weren't happy with the deal that boris johnson gave them. he kind of paid for that in the end. we wait to see the next twist of turn this story takes. liz: it is:0 i london. we will watch this. we have one eye on the live camera there at parliament. ashley is covering that story. he will interrupt us if there's anything more.
3:09 pm
as we look at these fires that are hard to put out across the pond, it becomes a question, could a headline spark a potential fire sale here in the u.s. of stocks stateside; fliri? despite the s&p 500 hedging close to a record, a report in market watch says bullish sentiment seems to be drying up based on the average daily trading volume over the past three months as it relates to market cap has fallen towards a ten-year low. let me just make that simple. people aren't buying and selling stocks as much as they have been in years past. if volume dries up, could investors face tough times during the next sell off and what's the fire sale strategy? phil, fire sale to me means you got things on discount that you wanted that were too expensive previously or does it cause too much fear? >>i think it is the fear play when you're talking about fire sale, but that's when you need to jump in and buy if you get
3:10 pm
that opportunity. i don't think it is going to happen. i think one of the reasons we are seeing lack of liquidity in the market right now is because of the volatility that we see. the market is up. it is down. people are stepping away from it. at the same time, i still think you are seeing a lot of money move into etfs. let's assume on the worse case scenario, that this is going to cause a major market meltdown similar to what we saw last year, the one place you don't want to be is in etfs, because they are a derivative of the market, so if the markets are doing bad, they are going to do really bad. the best thing to do if you are worried about that and want to stay in the market, pick up some cheap puts, it is cheap insurance and if the market does fall apart, that should give you at least something where you can actually make money if it gets really hard. liz: do you believe that the volume is almost thin, almost like the dead sea drying up with minerals on the side, do you believe that is coming to pass and what does that signal and
3:11 pm
when do you start buying if there's an opportunity? >> invest tors are being forced on the side lines. so many headlines out there that are mostly head winds that investors are sitting back and watching everything unfold. we are in no different position now than we were three, six months ago. the buyers aren't buying. the sellers aren't selling. yet our market seems to gravitate very slowly higher and higher. what's going to happen? we have the potential to fall off a cliff here. keep it in perspective. a 5% pullback really not that big of a deal when you look at the year tor -- the last year or the last few years. a resolution with china? does that happen soon? i don't know if it happens soon. how do you protect yourself against all the headlines that could put pressure on the markets? buy the vix. it's traded down to about 13 1/2 level, once it gets there, continues to bounce up against that. you could protect a lot of down side risk if you are able to pick up some positions in the vix and watch this market trade
3:12 pm
back and forth. i think this low volume will continue for at least another quarter. liz: yeah, i know. the dow is barely clinging to a gain of about 2 points. ira epstein, what do you think? >> i'm not in the the camp with everybody here. i don't see the fundamentals having changed that much to a negative. number two, brexit, no brexit, doesn't matter, they keep extending it. why does it really mean that much to us right now? mr. johnson the theme of the plan got passed. as for u.s. china, we are seeing phase one coming to a completion time. supposedly it's mid november. the fed has the markets back. we're in a a distribution area. we can see that. the market on the indices keeps going up for the old highs, doesn't get through them, but it doesn't break much. we're in a holding pattern. i don't think that's so bad. look at how close to the highs we are. liz: yeah, you know what? abouthat yld curve inversion, it ain't there anymore. right? >> right. liz: the screaming signal of a
3:13 pm
recession, we don't have it. the ten-year is at 1.76%. two year at 1.60. gentlemen, thank you very much. >> thank you. liz: closing bell ringing in 48 minutes. insurance giant travelers sinking to the bottom of the dow 30 heat map. it is down about 11 bucks. make that 12 after falling short in its third quarter results. you know, earnings disappointments are really taking a bite out of mcdonald's shares as well. the golden arches discouraging sal sales. could it be that impossible burgers are biting back at mcdonald's, the home of hamburgers? well, we're checking it right now. mcdonald's down $9.65 to 200 bucks even. you know what? the beauty of u.s. capital is that anyone can walk through the halls to hunt for support on whatever key issue matters to them. what about the key trade deal
3:14 pm
that has hit some capitol hill sized speed bumps? up next we have got the man doing just that at this hour, former commerce secretary gary lock is here, live exclusively with the pitch he's making to bring both sides of the aisle on board with the usmca pact. he will tell you how he's doing it. the countdown is coming right back.
3:15 pm
most people think of verizon as a reliable phone company. (woman) but to businesses, we're a reliable partner. we keep companies ready for what's next. (man) we weave security into their business. virtualize their operations. (woman) and build ai customer experiences. we also keep them ready for the next big opportunity.
3:16 pm
like 5g. almost all the fortune 500 partner with us. (woman) when it comes to digital transformation... verizon keeps business ready. ♪ here, hello! starts with -hi!mple... how can i help? a data plan for everyone. everyone? everyone. let's send to everyone! [ camera clicking ] wifi up there? -ahhh. sure, why not? how'd he get out?! a camera might figure it out. that was easy! glad i could help. at xfinity, we're here to make life simple. easy. awesome. so come ask, shop, discover at your xfinity store today.
3:17 pm
liz: we want to look at boeing shares. hopefully it is an intraday chart here because what you see is that the stock is still up, but it is dipping off its highs of the session. moments ago we got revelations that kevin mccallister, the executive in charge of the jet maker's commercial airplanes is leaving the company. he will be succeeded by stan deal as president. it comes one day after boeing's
3:18 pm
board meeting. as you see here, the boeing shares are off the highs of the session, although still seeing a gain of about 2%. to capitol hill, ceos of ford, tyson foods, 3m and many other companies are waiting for word on when and if the u.s., canada mexico trade deal will be ratified by congress. their companies have major exposure to all three countries, in the modernized nafta part two and they have been waiting nearly a year for the governments of both the u.s. and canada to give their stamp of approval. what is the hold up? president trump insists speaker pelosi has the votes now, but the white house has not officially submitted the deal to congress yet. that's a step required to start the vote clock. commerce secretary wilbur ross says he wants the deal ratified by christmas. as you see, it is a wet white house at the moment. we can check the calendar out. congress has just 20 working days left before the holidays, and while some democrats are still undecided, would it
3:19 pm
surprise you that the man beating the bushes to get those democrats on board and get this thing passed is a democrat himself? he's charging through the halls of congress day after day to build support for the usmca, served as secretary of commerce under president obama. he is now the honorary co chair of the past usmca coalition. we welcome the honorable mr. gary lock. he's joining us from those hallways in a fox business exclusive. how much of pounding of the pavement have you done there? >> it's been busy today meeting with a lot of members of congress. more meetings to go today and tomorrow. we're getting good reaction. a lot of interest, a lot of support to pass this what i call nafta 2.0. nafta in its 25 years needs to be updated. there have been some deficiencies that have cropped up along the way, and we need to take into account the new economy that we're in, whether it's digital books, digital music, e-games and things like that. there's good support, but there's still some concerns, and that's why the white house under
3:20 pm
u.s. trade representative lighthizer has been meeting with a working group put togethery speaker pelosi to iron out some of the details, get a little bit more clarity, certainty on issues like enforcement. how do we make sure that mexico lives up to its agreement? how do we make sure that there are ample protections for the environment so that american companies are not at a disadvantage they protect and follow environmental regulations that other countries like mexico won't. so we need to make sure that those are in place. so those are some of the issues that folks are talking about and trying to hammer out. liz: all right. so when people are trying to convince others and we all saw lincoln, the movie, where they are crsing out names, trying to convince people to get on board. how many have you convinced to get on board? we can put some of the democrats who are for usmca up on the screen, but tell me how successful you have been. >> actually we have gotten a good reception. we're continuing to meet people. it is a bipartisan coalition of
3:21 pm
myself and former congressman joe crowley, a democrat from new york, republicans, former secretaries of agriculture under the clinton and obama administration supporting this because this agreement is really good for american workers, whether you're in agriculture, whether you're in biotech, whether you're in the new digital economy, whether it's music, games, software, to auto manufacturing. in this agreement are incentives for american companies to keep as much of the work here in the united states as possible. and if companies are to move some of that work to mexico, then they have to make sure that almost 45% of the car, automobile is built in factories paying at least $16 an hour. so you cannot just go to mexico because of cheap labor. liz: right, mexico, and by the way, president obrador has put in writing that the mexican country will absolutely hold to
3:22 pm
those labor rules there. i do just want to say that i find it fascinating you as a democrat having worked for obama, working with republicans, you know, americans all they hear especially outside the beltway is that oh, everybody hates each other and the sides can't work together. you know, i loved what josh harder, the democrat from california had said, he said that a dairy farmer in stanislaus county told me recently that he quote doesn't have democratic or republican cows. he just has cows that need help. and this isn't about party. it is about protecting our ag industry, trying to get it done. can you gain it? will it be done, ambassador lock, before christmas? >> i don't know if it will be done before christmas, but i'm optimistic because all reports are that they have had really good progress in the working group meeting with the white house between u.s. trade representative lighthizer and the democrats and the reports are that they are making good headway and putting in those detailed assurances on
3:23 pm
environment, enforceability of labor standards, a delegation of democrats went down to mexico to actually meet with the mexican president to talk about these very issues. so there's real i think commitment by the members of congress to really make sure they come up with a good deal, one that is clear, enforceable, and that obviously will benefit american workers. and as you indicated, you know, this really has nothing to do with democrat versus republican politics. it is about creating jobs for the american people, lowering the barriers that let's say canada has on our dairy industry, wine, and agriculture, as well as making sure that it's not so easy to outsource jobs to low-cost factories in mexico. so there are a lot of provisions here that will actually produce more jobs here in america for american workers. and democrats, republicans, all care about creating jobs for their constituents. liz: indeed.
3:24 pm
ambassador, will you come back? >> happy to. liz: ambassador gary locke of the past usmca coalition. up next, exxon on trial. we will take you to the court house. also check on the exxonmobil stock. the dow is recovering a bit, now back up 26 points. [ orchestral music playing ] mom you've got to get yourself a new car. i wish i could save faster. you're making good choices. you'll get there. ♪ were you going to tell me about this? i know i can't afford to go. i still have this car so you can afford to go. i am so proud of you. thanks. principal. we can help you plan for that. start today at principal.com.
3:26 pm
3:27 pm
liz: breaking news, i told you we would take you to the courthouse. we're taking you inside the courthouse to see opening arguments in the exxonmobil case. you can see this right now. it is actually in new york. and as we look at the stock, and this is widely held. it is in a lot of your portfolios. it's still up about 1%. this is the trial against new york attorney general. the oil giant is accused of misleading and defrauding investors about how climate change regulations would impact its bottom line. the accusation is that the
3:28 pm
company hid the truth about how this bottom line would be affected and how costly climate change could actually be. the trial is expected to occupy manhattan supreme court for the next three weeks. let's get to jackie deangelis who is outside the court. jackie? >> good afternoon, liz. that's right, the opening statements are ongoing. the prosecution has rested for the moment, and what kevin wallace, the attorney for the prosecution basically said was that potential investors were worried about the risk of climate change when they wanted to invest in exxon. so exxon had these different projections, one set that it was using internally and one set that it was using when it was having these meetings with investors to make them feel like there was less risk associated with some of these projects. take a listen to what kevin wallace said. >> investors were concerned about the impact of climate change regulations on exxon's
3:29 pm
business. [inaudible]. the explanations were not true and accurate. >> the leading defense attorney is still currently speaking, but part of his argument, part of the defense's argument and what exxon is saying here in response is that the cash flow projections that are being discussed were more future projects -- for future projects, unfunded projects that didn't actually impact the bottom line here and that's what the prosecutors are saying was a misrepresentation to shareholders and there could be a fine in this case anywhere from 500 million to 1 1/2 billion dollars. ted wells still speaking. we will continue to dip into that. this is going to be a fascinating case. it is expected to go on, this trial, for about three weeks. rex tillerson, who is the ceo of exxon, from 2006 to 2016 is
3:30 pm
expected to testify next week because, you know, it's possible that he had a hand in this as well. and folks are going to want to know about that. liz? liz: yeah, ted wells is a very experienced litigator. we will be watching this one very closely. the stock holding up at the moment. jackie, thank you very much. snapping back to life with the closing bell ringing in 30 minutes, dow jones industrial up 37 at the moment. it was just it was about 20 months ago that kylie jenner single-handedly tanked snap shares to the tune of 1.3 billion dollars, marked off the market cap in just one day after her twitter comment on chat and the app's new format saying ugh she didn't really like it. but with 152% surge year to date and some of the biggest bears on the street turning bullish now, is now the time to unghost one
3:31 pm
of social media's most haunted names? our all star panel ready to duke it o right here on the "claman countdown". that's next. of course i have- ever since i started renting from national. because national lets me lose the wait at the counter... ...and choose any car in the aisle. and i don't wait when i return, thanks to drop & go. at national, i can lose the wait...and keep it off. looking good, patrick. i know. (vo) go national. go like a pro.
3:32 pm
hi, my name is sam davis and i'm going to tell you about exciting plans available to anyone with medicare. many plans provide broad coverage and still may save you money on monthly premiums and prescription drugs. with original medicare, you're covered for hospital stays and doctor office visits, but you have to meet a deductible for each and then you're still
3:33 pm
responsible for 20% of the cost. next, let's look at a medicare supplement plan. as you can see, they cover the same things as original medicare and they also cover your medicare deductibles and co-insurance. but they often have higher monthly premiums and no prescription drug coverage. now, let's take a look at humana's medicare advantage plans. with a humana medicare plan, hospital stays, doctor office visits and medicare deductibles are covered. and, of course, most humana medicare advantage plans include prescription drug coverage. in fact, in 2018, humana medicare advantage prescription drug plan members saved an estimated $7400, on average, on their prescription costs. most humana medicare advantage plans help you stay active and keep fit by including a silver sneakers fitness program at no extra cost. and, you may be able to
3:34 pm
save on dental and vision expenses, because coverage is now included with most humana medicare advantage plans. you get all this coverage for as low as a zero dollar monthly plan premium in many areas. and your doctor and hospital may already be a part of humana's large network. if you want the facts, call right now for the free decision guide from humana. there is no obligation, so call the number on your screen right now to see if your doctor is in our network; to find out if you can save on your prescriptions and to get our free decision guide. licensed humana sales agents are standing by, so call now. liz: trip down memory lane, essentially not even that long ago, just over a year and a half ago, reality tv star kylie jenner tweeted this out february of 2018, quote, so does anyone
3:35 pm
else not open snapchat anymore or is it just me? ugh, this is so sad. so jenner was tweeting that out shortly after snap unveiled its new redesign look that she apparently wasn't too pleased with. that tweet alone wiped out 1.3 billion dollars of snap's overall market value. when she did that, the stock was at $20 a share. taking a look at snap since it went public, it's lost 42% and it's since never recovered the $20 a share price. it is at 14.09 right now. the company is set to report a loss after the bell today along with tsunami other tech names reporting this week including twitter, microsoft and amazon. let's bring in our tech panel. next guest is in charge of the largest news and review site focus on all things microsoft windows central executive editor is here, along with "wall street journal" reporter dan gallagher. i want to start with you, dan, because the journal is having a
3:36 pm
conference right now. the antitrust chief over at the department of justice made a pretty controversial comment a few minutes ago that's hitting the tape. and that is in essence he will go after any company that is exhibiting anticompetitive behavior. facebook is getting slammed. apple i believe turned negative. it may still be negative. a lot of the other names that we know william barr the attorney general is interested going after are now wondering are we next. what do you think is going to happen, and what do you see for that as an investment? >> well, i think that kind of trade has been going on now for the last couple of years hanging over the big tech stocks. certainly he put it in a very simple clear way what the intentions are, and we've already -- we've seen that play out, but i think we're definitely -- especially facebook, maybe arguably the most exposed to this sort of action because they've been most under a cloud of scrutiny since the whole hacking -- not hacking but the cambridge analytica
3:37 pm
incident two years ago so i think they are probably seen as more at risk than the others, and that's obviously not good for the facebook stock, good for its competitors like twitter and snapchat. i think there's a long way to go to see what ultimate government action is really going to happen here. liz: daniel, i need to talk to you about snapchat and exactly what dan just said. snapchat has found its voice. they have been very obvious about making it quite clear that facebook has been anticompetitive, has tried in many different underhanded ways to hammer them. they had the file, and they're not keeping quiet about that. they feel there is anticompetitive behavior. does that eventually make this stock a winner as maybe facebook backs off and lets it run as fast as it can? >> i'm not so sure. first of all, i'm not really convinced that government action here would necessarily solve any of these problems. but let's say they do, right, they come in and break up facebook. snapchat still has its issue is
3:38 pm
how do they monetize the platform? they have been turning gaming recently. that scene is so competitive right now and only going to get worse in 2020 as google gets involved and microsoft and apple is already there. you started off the story talking about how they lost so much money because one person tweeted out something negative about them. to be able to sink a whole platform tells you something about the stabili of that platform and long-term longevity of it. i'm not convinced snapchat has a long-term plan here. they are kind of coasting along. but i don't know what they are going to do in the future. liz: dan gallagher, you know, the users and the number of users has certainly shown some signs of life recently. the problem has been in the past that every time somebody threatens the facebook of the world or whether it is microsoft or any of its other names, boom, they come in, sweep them up and buy them. >> yeah, i think that scenario is a lot less likely right now
3:39 pm
because there's so much government scrutiny on these companies. i think that's actually the most likely near-term impact is i think we will see a lot less bigger deals fall out of these companies because they know everything they are going to do is going to get a lot of extra eyeballs. amazon buying whole foods didn't really change the way amazon dominates retail but it's been talking point for politicians who think amazon is now way too big and needs to be broken up. so i don't think that sort of problem is really going to be the issue here, at least for these companies right now. liz: daniel, mark zuckerberg has to testify tomorrow on capitol hill, and it's going to be a very -- i think it is overused to say he's in the hot seat, but it's getting warmer in there, especially considering that steven mnuchin, the treasury secretary just said today for libra is premature to have even announced this crypto currency project and now it looks like
3:40 pm
zuckerberg istancisg himself from libra. how does that take the focus off of his so called effort to actually stabilize the company and make it more trustworthy? >> yeah, they've got a long uphill battle here, and the libra thing i think is really bad. they did prematurely announced it. everybody abandoned them pretty much on it. they tried to spin it as a positive, but i don't think anybody is buying this right now. we are still i think a while from accepting bitcoin, and so how that ties into it, i'm not really convinced yet. they have a public perception issue. unfortunately when zuckerberg goes in public and testifies, it almost always is worse for him as a company. i'm not sure what's going to happen tomorrow that's going to necessarily change that. they are experimenting with some things, you know, hiding likes on articles so you don't get as much interest. instagram has been playing around with this too, another company they own actually. i think some of these things may help. you look at what's going on with
3:41 pm
the political advertising the exception they made where politicians can evidently tell untruth or lies in ads. i think it will be problematic for them heading into 2020. >> great to have you both. thank you very much. >> thank you. liz: again snap coming out after the bell. when we come back, we will take you to a galaxy far far away. "the claman countdown" returns in a moment. the dow clinging to gain of about 20 points. the s&p down 5. each day our planet awakens with signs of opportunity. but with opportunity comes risk. and to manage this risk, the world turns to cme group. we help farmers lock in future prices, banks manage interest rate changes and airlines hedge fuel costs. all so they can manage their risks and move forward. it's simply a matter of following the signs. they all lead here. cme group - how the world advances.
3:42 pm
their medicare options...ere people go to learn about before they're on medicare. come on in. you're turning 65 soon? yep. and you're retiring at 67? that's the plan! well, you've come to the right place. it's also a great time to learn about an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. here's why... medicare part b doesn't pay for everything. only about 80% of your medical costs. this part is up to you... yeah, everyone's a little surprised to learn that one. a medicare supplement plan helps pay for some of what medicare doesn't. that could help cut down on those out-of-your-pocket medical costs. call unitedhealthcare insurance company today... to request this free, and very helpful, decision guide. and learn about the only medicare supplement plans endorsed by aarp. selected for meeting their high standards of quality and service. this type of plan lets you say "yes" to any doctor or hospital
3:43 pm
that accepts medicare patients. there are no networks or referrals to worry about. do you accept medicare patients? i sure do! see? you're able to stick with him. like to travel? this kind of plan goes with you anywhere you travel in the country. so go ahead, spend winter somewhere warm. if you're turning 65 soon or over 65 and planning to retire, find out more about the plans that live up to their name. thumbs up to that! remember, the time to prepare is before you go on medicare! don't wait. get started today. call unitedhealthcare and ask for your free decision guide. learn more about aarp medicare supplement plan options and rates to fit your needs oh, and happy birthday... or retirement... in advance.
3:44 pm
oh, wow. you two are going to have such a great trip. thanks to you, we will. this is why voya helps reach today's goals... ...all while helping you to and through retirement. can you help with these? we're more of the plan, invest and protect kind of help... voya. helping you to and through retirement. >> it is the destiny of the
3:45 pm
jedi. liz: disney unleashing the trailer for the final episode of the original st wars saga. it is like a tear jerker. the rise of sky walker staging the ultimate battle between the light and dark sides of the force. episode 9 of the george lucas epic striking theaters on december 20th. listen to this, you guys. advance ticket sales are already outpacing that of disney's other behemoth franchise "avengers: dge" by 45%. the force awakens, the last jedi, along with the spin offs rogue one and the hand solo prequel bringing in more than 4 1/2 billion dollars worldwide at the box-office. look at the stock, disney glowing green at this hour as well as verizon's plans to offer disney streaming service free for an entire year to unlimited customers and new fios broad band subscribers. the shares up 2% at the moment
3:46 pm
to $132.82. connell? connell: yes? liz: i'm a little -- connell: on connell: oh come on now. liz: okay, i don't really care. have you bought your tickets yet? connell: no, i'm in the minority. me and cavuto are the only ones who hate star wars. liz: hate is a strong word. connell: i know, don't like. i'm not into it. i saw the early ones. liz: i'm not surprised, you are on the dark side. connell: i'm certainly on the dark side. so true. we are heading out to california your neck of the woods because this situation out there, pg&e has warned people there will be more blackouts so the mayor of san jose wants to make a transformation of the utility making it a customer owned utility and making it more accountable. the mayor will be on to talk about that. and we have morings earn -- and
3:47 pm
we have the earnings after the bell. see you then, on the dark side. liz: okay, see you then. let's get to the bright side. charlie gasparino has more details on how adam newman will float away on a pile of cash. the dow is now down 19 points. we will be right back. see how much you can save with usaa insurance. now you can, with shipsticks.com! 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, guaranteed, for as low as $39.99.
3:48 pm
shipsticks.com saves you time and money. make it simple. make it ship sticks. shipsticks.com saves you time and money. that could allow hackers devices into your home.ys and like all doors, they're safer when locked. that's why you need xfinity xfi. with the xfi gateway, devices connected to your homes wifi are protected. which helps keep people outside from accessing your passwords, credit cards and cameras. and people inside from accidentally visiting sites that aren't secure. and if someone trys we'll let you know. xfi advanced security. if it's connected, it's protected. call, click, or visit a store today.
3:50 pm
and now for their service to the community, we present limu emu & doug wi city. [ applause ] it's an honor to tell you that liberty mutual customizes your car insurance so you only pay for what you need. and now we need to get back to work. [ applause and band playing ] only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪ liz: shared office space company we works board worked through the night to strike quite the deal. we works largest investor soft bank will now be taking over the company, but who is the largest beneficiary? the shareholders? or the former ceo adam newman? charlie, i think we know the answer. >> i mean, you know, this is a little bit of behind the scenes
3:51 pm
that went around. actually there was kind of a bake off between the soft bank proposal which is an equity investment with some strings attached which you know about, adam newman gets a big chunk of money. he gets a loan. he has to pay back the loan. he gets consulting contract. if you add it all up and subtract it, he gets more than a billion dollars. that was one thing. the other thing was jpmorgan and a coupon that they would have to pay back. he went with the one that helped him. now, we should point out that i don't think it's quite 1.7 -- liz: there was also the consulting fee that was added on. >> yeah, i mean, you know, it is a lot of money. over a billion. here's what his people are are saying. trust me, i have been speaking with them today. they are framing it -- he's framing it as the best deal for the company and its employees. he said he chose this thing -- remember he kind of controls the board. he chose this because he believed that -- not believe it, it is true. it is going to happen. tender offer, the employee
3:52 pm
shareholders are going to get some money out of this because they own shares. he denies that he did this out of personal gain, despite the windfall. and apparently he's going to play a significant role in the future of the company. liz: doubtful. i thought soft bank -- why would they talk to this guy? look at the valuation lost. >> that's what his people are saying, he's going to have some sort of creative managerial role because he knows this company better than anybody. let's strip it all out. the jpmorgan deal would have laden the company with debt, no doubt. apparently they raised the 5 billion. i was skeptical but they raised it. however, that might be a negative. the positive was that shareholders, people that are in the stock, the early investors, they wouldn't have gotten crammed down and deluded. this deal clearly dilutes the shareholders. in the jpmorgan deal they were not going to pay a dime to mr. newman. he would have been out, right,
3:53 pm
or nonexecutive chairman land. this deal paid him. i'm telling you, you have to have -- unless i'm missing something here, you have to have a lot of -- to sort of rationalize this deal. yes, the other deal was expensive. it would have been debt, but it didn't cram down the shareholders. he got no money. this deal the deal where the guy at the top conceivably -- i mean he's responsible for its botched ipo, for the overspending, for being in a million businesses they shouldn't be in, the gross mismanagement, gets money and consulting contract. and stockholders get diluted massively. i'm just telling you, i don't know the law -- because this is a private company, you know. this is not a public company. i'm assuming those shareholders
3:54 pm
could sue. it seems like it's right for suit. it doesn't make sense to me. you have a lifeline from the bank that doesn't dilute the current shareholders, every time we ask for a comment, that's what they give us. you would think you would take that; right? liz: i feel badly for employees who are about to get laid off. >> and on top of that employees that don't own share wills get laid off. -- that don't own shares will get laid off. >> we will be right back. charlie, thank you very much. dow jones industrials still negative, down 15 points. six minutes to go before the closing bell rings. we're coming right back. ♪ ♪ ♪ ♪ ♪ ♪
3:56 pm
3:57 pm
or trips to mars. no commission. delivery drones, or the latest phones. no commission. no matter what you trade, at fidelity you'll pay no commission for online u.s. equity trades. ♪. liz: s&p and nasdaq hitting close to session lows here. talk about hasbro's stock. hasbro's stock is actually cha tariff fight, demand are
3:58 pm
hitting the name down 16%. you know hasbro, right? maker of play-doh, even though i was told not to eat i ate because it smelled so good. rival mattel is getting caught in thedown draft. down 6 1/3%. bring in somebody who understands markets. clear bridge portfolio manager. 146 llionn assets over at clear bridge. give me a sense how you feel about the market as we put up names you really like? >> it has been a very volatile market over the last few month. the market was very strong, beginning of the year, we sold off hard in august. we recovered sharply. tough market to navigate. so many different crosscurrent. liz: today, for example we would be up were it not for travelers and mcdonald's. they are contributing 140 points of losses for the dow which is down 29 points. you know, how can investor
3:59 pm
anticipate that? as you look at some of these names, united technologies you like, blackstone, apollo. kinder morgan, why these names? >> what we're seeing today is continuation of a lot of things we've seen, bigger macro things. brexit with the vote going on in the uk. in terms of stocks we're looking for, as we look at environment and uncertainty and volatility. we're looking for companies with current predictable revenues, strong free cash flows, reasonable valuations, attractive dividend, even in a world where capital appreciation is less than we expect going forward, you're able to benefit from the current income. liz: couple seconds left when investors and clients call up and say i'm nervous, what did you tell them? >> you should be. capital markets is volatile business. it is uncertain world. interest rates incredibly low which is supportive. corporate balance sheets are if reasonable shape. the economy, while slow something pretty healthy from
4:00 pm
consumer debt and employment perspective. [closing bell rings. liz: michael, thanks for joining us. volatility, you're seeing in play. we're closing at lows for the session for the dow, s&p and nasdaq. let me send it over to "after the bell." connell: a lot of volatility back and forth throughout the day on wall street. at the end of the day the dow closes lower. that is a rough close. final few minutes of trade. investors weighing corporate results which were mixed. new regulatory concerns as well for major players in the tech world. as we work it out, the dow settling lower by 36, 37 point. so not great but we'll see. good to be with you. i'm connell mcshane. melissa: i'm melissa francis. this is "after the bell." the s&p 500 and nasdaq also in the red. more on the market movers but here is what is new at this hour? brexit denied. uk lawmakers rejecting boris johnson's timeline to lead
35 Views
IN COLLECTIONS
FOX Business Television Archive Television Archive News Search ServiceUploaded by TV Archive on