that is why caterpillar got clobbered. they described it as a high water mark they walked that comment back today. whatever it was too late. the damage done. boeing did great but it got hit with a correction too and now facing a possible loss of a $17 billion order of iran air. or how about united technologies, this was the best one. but the stock roll over. inincredible quarter people worried this was the last good quarter could the pullbacks, in three big stocks represent buying opportunity? we did it with bob lang brilliant technician lang believes the selling in these former market darlings was pre mature to say the least. in his view, given you another fabulous buying opportunity. i don't know anyone else who thinks this. i could not find a soul and why does he like it? the numbers look good and the technicals look good let's start with the daily charts let's start with caterpillar see, to make matters worst, when they reported a few weeks ago, they made the high water mark remark he believes if the stock can break ou

how forgiving is this market we were throwing away caterpillar because they basically told us, it may this year. that may have been the past. we have a selective memory in this market and the selective memory says, you know what it was always china. because everybody costs is up. energy costs are up and the dollar is going the wrong way. maybe it was always china. maybe the whole time it was china. >> so you think we can add to our levels above the april highs here to what degree is the path to 2,800 now fees iasiblfeasible >> i'll have to wait until next quarter but a lot of companies going up that have somewhat negative things to say we've forgiven them or forgiving them i can't tell which there have been stocks that have just been trashed and got bids underneath and the small cap rally was about, you mentioned economic data. employment, employment remember the jobless claims. the four-week average was the lowest since 1969. what a staggering statistic. >> that's when we had a guns and butter economy >> speaking of stocks trashed and have a floor under them. ge would be amongst them

caterpillar staged a comeback in the session after opening lower on a downgrade from bank of america,t unchanged, bank of america downgraded cummins, but upgrad d ed deere to a buy. so some cross currents in the industrials today. let's bring in the fast money traders to make sense of it. pete and tim, what -- now you've got the baseball, tim. is this -- >> come on, kelly. >> for segment what is this >> i thought when we talked about caterpillar, metaphor is a pitcher with a high pitch count. >> i see >> pitched a great game, but they run out of gas. i feel like you look at the multiple and stock at 140% into, then, this pullback, a trailing multiple, which is not its long term multiple, and, in fact, should be trading at 13 times. we know about the multiple compression in a fed world where rates move higher, so doing a great job, dealer sales will peak at 25%, and that's the story. >> i think mike has to take over from here. >> you know, it's funny, you accuse me of being a met fan, but seymour actually is. >> oh, man this is kind of a last chance inspiring story, mike, thank you. >>

. >> contrast dear with caterpillar. -- deere with caterpillar. the message was taken different by the market. caterpillar raise their forecast by 22%. the earnings beat by a lot to scare people. don't annualized it. they were trying to temper this and they scare the heck out of people. three ando win lowered estimates. it has changed a lot in four weeks. scarlet: do they see a benefit to the bottom line, will be profit margins fatten? >> i think it is keeping up. it will give them good incremental leverage. they can't catch up on that. in construction they can catch up now. >> they have another 500 million they can get out of structural cause. that will help in agriculture. they execute pretty well. going to be fascinating. is a net? out of all of these guys. thank you so much. bloomberg intelligence senior analyst. the market closes next. a mixed day for u.s. stocks. the dow little changed and the s&p up 4%. this is bloomberg. ♪ >> welcome back to what'd you miss. the s&p 500 is having its worst week in a while. i'm julia chatterley permit scarl

caterpillar 9% boeing 11% and 3m 13%.rade talk conversation when it comes to stock movers i will toss in, guys, another set of stocks here and these are consumer related names and the reason why they're important because they get a lot of their revenues from china as well. walmart, 0.1% of its sales profile. tiffany 13%, starbucks, 15%, mcdonald's 15%, and then apple, 20%. so as the consumer becomes a bigger force in china will these consumer names become the next stocks perhaps in the cross hairs when it comes to trade talks. back to you. >> thanks very much, dom good run down there. earlier on cnbc treasury secretary steven mnuchin said the u.s. is making meaningful progress on trade with china and he is optimistic about the road ahead. >> what i would have really said is this has been a trade dispute all along, never was a trade war. a trade dispute on significant issues both parties have agreed to suspend the tariffs, our 150, their 50 you saw they dropped the case on friday as a sign of good faith for our farmers thi

this is not just about huge companies like boeing and caterpillar. their stocks soared 3.2% and 2% respectively boeing doesn't need china. there's so much demand that the chinese don't buy from them, someone else with. caterpillar sells a lot of coal mining equipment to china, but to me, it's not that let's spend some time on the non-covered stories, the under-the-radar china touch that would have caused the most wory. the people's republic is responsible for a significant chunk of the growth, and if the chinese decided to make it do more difficult to do business over there, countless companies would have been hurt china's daily ran a story headlined "honeywell bets big on growth in china. as someone who owns honeywell, i was worried about the lead paragraph. honey well said on friday that china is the single largest contributor to its global growth and it was committed to expanding business in the country. end quote. how much of a contributor? get this, 20%. yikes! how about how united technologies china worries have been a huge burden on its stock.

caterpillar got positive positive comments.achinery analysts saying don't worry about interest rate hikes. that will not hurt a name like caterpillar and hiked that price target up over 200 bucks from 170 and change. 202 from 173. caterpillar up 2.%. exxon moving along with oil. we'll get to the oil story in a moment. apple has been a big one stealing the show. not far off trillion dollar market. 190.72. if it hits that mark it will hit trillion dollars. buffett and monger, berkshire hathaway parents have been touting it. picked up 70 million shares, saying all kinds of wonderful things about apple. that helped give it a boost. six days in a row of gains, haven't seen a boost like that in six years, since 2017. west texas, 70.70. that is above the key crucial $70 mark. oil up four days in a row, more than 16% in 2018, you mentioned iran, venezuela, that story and less production and more demand has cut down the glut. all these stories help put the oil picture together. apache, exxon, just to name a few. trish. trish: nicole, th

china trade talks downgraded caterpillar with the bizarre conference call out of tesla last night.ope's down coming off the lows and the yields at 2.95 as productivities miss, and the tesla tantrum despite the earnings beat. shares of the automaker dropping after musk's unique conference call calling analysts' questions boring and bone headed the service posting worse than expected results in the first quarter as a public company. >> waning hopes in u.s./china trade talks and the second straight week down they haven't done that since the middle of march. tesla, down with the model 3 production targets and the stock started to slump during yesterday's contentious call as elon musk cut off analysts including bernstein's tony saganacki who asked him about gross margins. >> so where, specifically, will you be in terms of -- >> do you have a requirement >> next. >> boring, bonehead questions are not cool next >> musk eventually decided to take several questions from a retail investor who hosts a youtube channel. baer today said ignore the noise. how much of this was noise >> let's go ov

look at the three stocks we have here number one is caterpillar. lots of news with the downgrade. the relative performance of cat was strong here today. you're going to notice this guy is testing the 200-day moving average. not the same sideways higher lows, lower highs pattern as the dow. you have a down trending pattern in caterpillar that's what they call a bull flag sort of move up and out of the range would be constructive in caterpillar of the three i brought this is the relative lagger. next in line is home depot you will see a really nice response from that 200-day moving average i have never seen a market that's respected the 200-day m.a. so much it seems to define everything in the market just a nice beautiful move up. we have come down. a little rounded cup here. we are set to move up in hd. i like the looks here. then the next one, i think the best of the dow now is boeing. again, just look at the distance here look at the air between the 200-day moving average we have a nice sideways consolidation. not even movement here just a clear break up through 370 bucks will ge

led by caterpillar if you want to talk proxies for the so-called trade war caterpillar and boeing areoth among the top five movers right now on the dow jones industrial average. and then there's this, a former "sex and the city" actress cynthia nixon gaining ground on governor of new york we have the latest on her story, next. this is no ordinary coffee. it's single-origin kenyan coffee from the nyeri highlands, 6,000 feet above sea level. but how do you really know that the beans journeyed to the port of mombasa and across the pacific? that you can trust they're 100% authentic? ibm blockchain. a smart way to track every step, ensuring this coffee did indeed come from 6,000 feet above sea level. and not a foot lower. ♪ ♪ think has exposure to energyfund infrastructure mlps? think again. it's time to shake up your lineup. the alerian mlp etf can diversify your equity portfolio and add potential income. bring amlp into the game. before investing, consider the fund's investment objectives, risks, charges, and expenses. read the prospectus carefully at alpsfunds.com/amlp we use our phones

i thought caterpillar underdone on the downside, bought it then, now i don't have a huge -- lucky to have a good one we have a huge run, i feel like i wasn't dying to be long cat, i was playing the -- the market misread that earnings call. >> an extension of the momentum we have seen in the past month, particularly in the f.a.n.g. stocks, momentum stocks. we're going to talk about invidia. we close at a record high. we saw that time and time again. the trade is that they trade up later on >> buy the weakness. invidia, that's a perfect example of a name, in the short-term, that will continue to work. no reason why you take your foot off the accelerator of that story given the gaming -- strength in gaming ai, the data center buildout. >> is that emblematic of the rest of the market >> i think momentum is back, i agree with karen to the point we could see a little bit of a pullback near term based on the fact that things get super accelerated. invidia ran to the number. overall market, i see it both ways, i see that you don't short a dull market. we're out of the way with the fed, out o

whereas the high water mark nonsense made you feel it would guide down cummings, cmi, just like caterpillar, talked about the same but the component degradations for the most part this market injuries are not self-inflicted. it is fli inflicted by the analysts. in many cases these forces are stopping people from buying high quality stocks and keeping analyst from pounding the table. let's start with the one that i think is probably the anti apple called united technology climate control, elevators and aerospace. all three were better than expected check that much, much better than expected. yet the stock has done nothing but go down since the kwaertqua announced. they got much better number. and a lot of people when they are looking at this company are saying that's as good as it gets let's get out of dodge especially if the president gets out of china that's what happened here. that's what happened again, i wanted to distinguish between apple and united technologies the expectations were huge for united technologies. the expectations came down for apple. and then there is ibm. i can't beli

that day was the day caterpillar . nfl and the day the emerging markets index fell. same peak on both so the relationship between the two has really helped and i think it is striking because we told the story about u.s. earnings and the global macro balance on favoring emerging markets. the truth of the matter is they become one of the same story. julia: what happened to coupling? joe: exactly. julia: i want to dig into what we got as far as the data from payroll today and the average hourly earnings.unemployment now now u.s, people keep getting drawn off the sidelines and we are not seeing a week gains we anticipated. what i am looking at here is countries with higher labor costs as a proportion of their revenue. what we are seeing if you have a look at what is going on over the 2018 area, you can see those ith high stocks outperforming the low labo stock costs. would you not see that pick happening for the low-wage costs companies sooner than the high wage costs companies? joe: it is an interesting thing isn't it? julia: i am not sure on that. we will watch this. s

>> caterpillar at 70 i bought that a long time ago. that was ugly.e plenty of ugly, but it is going to take time that's really at the end of the day, and - >> and it's just a fly or ride just a small amount of capital -- >> we don't have a full position, and the type of emotion involved with the last t ten points on the downside was headlines pummelling the stock any time you see that, defend it if possible. to be a contrary, if you have the analyst to back it up, the stock is fine. >> pure liquidation into tax day, basically that's not the reason, but it happened that way, and less bad news has the stock up 20%. >> wow, it is 20% now. >> still down quite a bit, though i mean, come on, went from 30, on the way to, like, 10, almost hit 10, i don't know >> a long way to go if it's chewing up the skepticism to go higher >> hanging on to a little bit over $15 right now look at shares of adobe, higher after hours, and leslie picker has more >> kelly, shareholders clearly liking what they are seeing with adobe's new announcement putting cash to work here,

you had one company, caterpillar might be as good as it get. >> why are they down? >> they're not actually saying that. you're rateright, they are, this is market issue, not a stock issue. the market issue is because of these trade tensions. is because of concerns about decelerating global economy. >> global growth. neil: and stormy daniels and, and stormy daniels. guys, thank you all very much, good sense of humor. we're down 249 points. it hasn't budged since they all began yapping. i don't know what this is about. i only mention the stormy daniels thing in the context that the media is going nuts. the president is not telling the truth, not fast enough. this thing is going out of control. bob mueller will want to throw him in at tickca. it is out of control, it is out of control. separating the fact from fiction and why the white house is taking the tack it has or did rudy giuliani slip up? after this. neil: the back and for the, you would think, this is knee deep in the middle of watergate right now, this payment michael cohen made to stormy daniels, we can get

boeing, united technologies, caterpillar helped lead the way.fact, caterpillar and boeing tacked on more than 100 points. ge had a nice pop today as well. may have a deal on the docket. and then we take a look at starbucks. starbucks moves higher. they firefighter their policy. you can go into starbucks now and use the bathroom but no drug use or sleeping and tesla, new, high performance tesla model 78,000 bucks, but you will certainly be able to go faster. back to you. liz: thank you, nicole. coming up, secretary of state mike pompeo threatening to crush iran with national and military pressure. the strongest in history. will it work? we've got the details. and stocks soaring after that trade war in china put on hold. but what happens next? bringing in congressman doug collins to tell us. coming up. don't go away how do you win at business? stay at la quinta. where we're changing with stylish make-overs. then at your next meeting, set your seat height to its maximum level. bravo, tall meeting man. start winning today. book now at lq.com start w

talking caterpillar, boeing.the farm sector, also anything in the energy sector that we the u.s. would sell to the chinese. the chinese clearly want our technology including semiconductor chips. stuart: bottom right-hand corner of your screen, not quite the high of the day, certainly up there. dow industrials up 368 points. well above 25,000. actually approaching 25,100. the reason for this big rally this monday morning is less tough talk on trade. the trade war, according to steve mnuchin is on hold. larry kudlow backed that up. >>> come on in please, nigel farage joining us from london. nigel, i want your input of dropping of trade tensions between china and the united states? >> trump is a businessman, he is not a politician. he views everything as a negotiation. if he goes in tough, he goes in hard. he says look, unless we get what we want, this is what will happen. he does that as of an opening pitch. he is happy then to con sill eight. it is typical of trump the businessman and provided he gets concessions

it centers on caterpillar but goes way beyond. that's next. >>> before the break, our data partners at kensho zeroing in on tesla. the stock has dropped more than 5% 34 times in five years. when it does, it often recovers most of the losses within two weeks. for more, go to cnbc.com/kensho. "the halftime report" with scott wapner and the traders is back in two minutes mr. elliot, what's your wifi password? wifi? wifi's ordinary. basic. do i look basic? nope! which is why i have xfinity xfi. it's super fast and you can control every device in the house. [ child offscreen ] hey! let's basement. and thanks to these xfi pods, the signal reaches down here, too. so sophie, i have an xfi password, and it's "daditude". simple. easy. awesome. xfinity. the future of awesome. >>> hello, everyone. i'm sue herera here's your cnbc news update at this hour. "the washington post" reporting that incidents of sexual misconduct by charlie rose were far more numerous than previously known it also found three occasions over a period of 30 years, in wh

but like all white-haired caterpillars, it will eventually turn into something beautiful. [ laughtertarbucks has announced it's adding a triple mocha frappuccino to its menu that has sweet cold brew coffee, whip cream, and a layer of dark mocha sauce at the bottom of the cup. and next month, starbucks will announce it's new drink, just a straw in a cake. [ laughter and applause ] asian restaurant chain pf chang's announced today, it will open it's first location in china. of course over there, they'll be called pf charles. [ laughter ] and, finally, a chinese social media app is banning images of the british children's tv character peppa pig because officials say it represents under ground gangster culture. [ laughter ] for what it's worth, when peppa pig heard the news, she vowed to bust a cap in their ass. [ laughter ] ladies and gentlemen we have a fantastic show for you tonight. she is a very funny comedian, currently in the middle of her "laugh your head off" world tour, kathy griffin is here tonight. [ cheers and applause ] she's had a fascinating year, and i'm looking forward

he bought a d6 caterpillar bulldozer used, it was like a 1955 model year, for $5,000. it was completely broken, the gears were stripped and we spent all summer repairing that. the first thing we had to do to repair it was to build a crane to take the gears out of the transmission. what i learned from watching him was just how resourceful he was. he didn't ever call a repairman, he figured it out. and i do think that is one of the things that was super lucky for me, to grow up in that environment where you got the seed resourcefulness in action. so my grandfather, a giant role model. host: you are an american icon, and these stories reflect how grounded you are. and starting a company from the time when you were doing it yourself, to today, and maintaining that touches that you have and at the same time, that vision, that is what leadership is all about. at the bush center we focus on recognizing leadership, and that is what we are doing this week. i want to thank you. i want to remind people that in honor of the fifth anniversary of the bush center, our friends at nort

boeing and caterpillar accounted for more than 100 dow points. then a selloff on our own charlie gasparino reporting there may be a dividend cut. despite a merger today, selling off some of the assets they need to, still gather some more cash, you can see the stock is up about 2%. still holding on to some. gains and still one of the dow leaders. then starbucks, we started out early this morning, there is a new policy, no long every vague after backlash from what happened in april and pr mishap, they're saying every one is welcome at star bush, regardless if you bought anything. you can use our bathrooms. wait. a clarification. this is what they say. drug use and sleeping is unacceptable. it is clarifying the guest policy. so don't do those two things. otherwise you're welcome to use the bathroom. look at oil, moved above $72 a barrel. oil surges, moved to 3 1/2 year highs. first settle above 72 bucks. back to you guys. melissa: fascinating. i don't know about the starbucks things. david and i are rolling their eyes. david, a trade war truce of so

shares of boeing and caterpillar weighing on the market. nicole pettalides on the floor of the new york stock exchange. i believe it is about trade. is that what you're hearing? >> it is always part of it. we had headlines whether or not we're talking to north korea. heat build up with china a little bit. the dow finish the down 3/4 of 1%, off the lows. had been down over 200. you can see selling across the board. as we showed the dow components, those laggards, a lot of industrials, which you mentioned, dave, such as boeing and also caterpillar, they're is a look. home depot down, dupont, 3m among other laggard. retail is really big story this week in particular. so far we're watching some of these. we look at autozone and advanced auto parts. autozone talked about higher costs for labor. after the quarterly numbers down 9 1/2% for autozone. that is laggard for s&p 500. look at rest of retailers, tj maxx, parent, tjx. up 3.3%. kohl's despite a beat. all of them are to the downside. nordstrom, jcpenney, and jcpenney has a story in its own,

unlike caterpillar their numbers are going up for the whole all four quarters have been going up.nd into the full year they're at 520 now s&p analysts combined with today's numbers. here is the problem eaton's guidance is 520. in line with where the street is it's not enough to move the dial, at this point. companies had nice run ups eaton did start up and coming back a little bit. there's a lot of people complaining there's no reaction to earnings because it's earnings started about three weeks ago. but, actually, there was a reaction if you look, we had a huge move up in the stock market the s&p went from 2500 to 2900 from october to january. that's a 16% gain. then problems when everybody started worrying about inflation. in february, we had a correction the s&p dropped 14 more th% at point. we have been moving sideways this consolidation phrase stuck in the 2600 2700 range that's because bears have got a more potent mix of commentary and arguments to make recently we did have big gains on tax cuts that came in the fourth quarter. now we have peak earnings. why no earnings rall

no surprise that gave a boost to trade oriented industrials like boeing, caterpillar, united technologies. all of them were up sharper. cyclical stocks had been meeting the charts. technology, industrials, materials, energy that are up 5 to 6% in may. that's the kind of leadership investors like to see. right now the large cap s&p 500 is less than 5% below its record reghs and small caps hitting new highs for a fourth straight session. selling pressure is dropping a little bit. buying powe while not soaring, is building modestly. out of markets aren' the woods just yet. several head winds still remain so commodies are still on fire. many of them are at three-year highs and the u.s. dollar is at the strongest levels of the year. r e yield on the u.s. ten y treasury note is also near a seven year high. the markets can handle all of this asong as rates don't move up too rapidly as long as the mark cs arevinced that we're still growing throughout the year. for r "nightly businessort" i'm bob pisani at the new york stoc nexchange. >> to kayla tausche with details on our trading relationship wi

caterpillar and boeing had been the poster children of this. take a look more broadly a lot of the things that we send over to canada, electrical machinery and autos, so you take a look at a lot of these old school industrial names are also sitting closer or at session lows right now on this news. >> and these are companies that presumably, in any kind of blossoming trade conflict, have a target on their back >> absolutely. >> also, the canadian dollar, the mexican peso getting slammed on the impact of all of this we'll continue to monitor any comments from canada but we want to also check in on the eu position and all of this we are expecting the eu to follow canada's lead and pose retaliatory tariffs against the united states as well, and for that, we are joined by david o'sullivan, european ambassador to the united states. ambassador, nice to see you again. >> hello good to be here. >> when can we expect those retaliatory tariffs that the eu has threatened >> we have already announced that similar to canada, we will both take a case to the w

them a moment ago the military hardware of the arctic a part of the russian federation huge white caterpillar tracks a massive white radar systems russia letting letting the world know essentially that it has got its weapons of war positioned in a well some of the most important geopolitical realms of our current political climate the. personnel carriers now continuing to come over red square we thought the triumph of s. four hundred policy that by the way many countries in the world are trying to get their hands on the s four hundred china already getting an early components for the s four hundred saudi arabia's trying to buy a turkey is trying to buy it many other countries in the middle east and central asia want the russian s four hundred triumph missile defense system incoming and absolutely enormous intercontinental ballistic missile atop that truck just behind me now surrounded by other upgraded renovated and juiced up personnel carriers here look at the size all that. my only question is how on earth does he pocket thing. we've got robot draw. going across to a couple stones going und

new workers went back in places like caterpillar and adm. the end result was the amount of people needing the benefits was reduce by half. in my opinion our goal in most districts i don't yours as well as my this is going to be something i think families can take advantage of. if there are problems, amended the bill here. if they're not any still have problems, let's see the results take the bill to the floor. >> i yield back. >> thank you mr. chairman. one in every -- folks have received assistance at some point in the last 12 months. is twice the national average and much higher than the state average. with the snap employment program i worry about the rural communities. i'm in north florida by congressman scott and we have similar type problems and -- ways have similar type problems in terms of transportation. for people who would need to go to a training center. for example for the people who go to a training center about 100 miles round-trip. in essence transportation has become a big issue for those on the snap program. i really though

we do have caterpillar sharply lower. it is a dow stock.a lot of points off the dow, down 330 as we speak. >> partly we haven't had headlines yet, even though the u.s. trip out there has already had their first meetings, got nothing out of it, perhaps giving a sense nothing has been accomplished. stuart: we shall see. that is a concern. hillary clinton says a big reason behind her loss is because she is a capitalist. i promise we'll play you the sound bite. we'll play it for you next. ♪ mgx minerals' disruptive technology can extract lithium - used for batteries from expired oil wells. mgx's new pilot plant aims to produce lithium-carbonate one hundred times faster than from conventional lithium brine. mgx minerals ♪ ashley: in the last hour football legend joe namath told us the nfl may have seen some ratings fall-off but he believes the league has not been damaged. roll tape. >> well that's an opinionated thing. the numbers may not be opinionated because they can be down. there are so many other alternatives too for people and sports fans

caterpillar accounts for most of those wins. back to you. liz: thank you very much, nicole.g interest rates. we've seen it with the 10-year it is at 2.99%. usually sends alarm bells through the market but our next guest says one sector can inflate your portfolio returns no matter if those rates continue to climb higher and higher. let's bring in rich green. the ceo of pnc investments with billions under assets in management. all right. let's get to it. how do you do that? often we get a scare and see the market fall when rates go higher and higher? >> let me start with, liz, we're big fans of cleveland browns. liz: thank you. >> we'll be rooting with you this year. liz: thank you very much. >> when i think about interest rates -- liz: go browns. >> going to the 3% level, you know, really it's a number. it's a few basis points higher than it was a week ago. i really think being late in the cycle, right, we've had a wonderful economic growth expansion. we're late in the cycle. i don't really believe 3% rates will have any significant impact to the overall returns on the stock

caterpillar coming out gate very is strong. at the s&p 500, a broader index doing extraordinarily as well pretty good start right here out of the gate then, of course, there's nasdaq, it is been a jugger not continuing to be up 25 points right here out the gate. joining us now elizabeth macdonald ashley webster jeff, and james freeman, we could actually now see eight session in a row with dow up. i say two days ago we made a turn that i'm jeff might have been near term aflexion point that takes us considerably higher. >> incredibly impressive is level of momentum but what i've been saying all along is that declines we're getting are not nearly declines that we will eventually get but once this gets momentum it is very difficult to reverse that momentum. >> and a test to ojai to retest that january 26th? >> i certainly think we're going to retest that high but i think once -- once market wins to absorb sort of concerns about trade and concern about rising interest rates and maybe some flaws in the five text stocks priced to perf

first on the caterpillar earnings call, definitely had a profound impact, no question about it.reading about it, you should listen to the entire earnings call. the high watermark comment is made in the opening statement. there was a question in the middle of the call, and the response was, yes, as far as this year is concerned, our margins may come down. but the last question of the call asks, are you guys trying to communicate something here about peak cycle earnings are margins, and they said absolutely not. i would say it is very clear. alix: so how do you explain the chart? it is earnings estimates for this year, next year, and 2020. 2019. it has picked up a little bit. 2020 has not caught up. does this scenario play out or do 2020 earnings estimates and 2019 have to play catch up? a little impact. growth rates will slow. i would argue that earnings estimates will continue to be revised up. ofjust got one quarter earnings, so the increase needs to be divided basically by four in terms of what it has for the annual impact. but we fully expect earnings estimates to go up. if y

liz: caterpillar historic make it is high water comment every year for the last 20 years.what the street we wanted to hear to justify bearishness. >> they came back and everyone is focused on privacy concerns, monopoly concerns, they are going to tear them apart. facebook's business seem strong, amazon -- charles: an example of fundamentals emerging after the -- liz: now more than the quarter of a nasdaq right now. charles: a lot of people say one of the big things helping the market is buybacks, right now we are on record pace and they are boosting the stocks we know there's no doubt about that, but, you know, the left also slams it because they are saying, tax cuts, this is what it's all about, look at apple, they will buy a hundred billion dollars worth of stock, david, what do you say when people push back on the idea that corporations are using their profits the way they want to use them? >> you know, apple is a great example. i would say that just about anyone who has exposure in the stock market, through pension, 401(k) is benefiting by apple stock buyback, it has t

charles: about a week and a half ago caterpillar had a downgrade to sell.et na not necessarily buying into idea that industrials will hit their peak. >> absolutely, these are companies that have done well, we saw nice action in boeing today. but that was do yo -- dow's best year, we're telling up with energy, years now, investment have kept supplies low. we've seen good prices are you know well off the 2015 highs. also we would go with some bond surrogate plays, they have been cast off for dead. charles: for example? >> pepsi, coke, procter & gamble. utilities, reits. charles: are you concerned they have no pricing power? >> you know, we like content producers better than distributers. >> higher from here? >> i would say so, yeah. it was a strong day today, hedge funds they are moving in. charles: thank you. >> coming up that there. big question, is it time to break them up next. i got scar tissue there. same thing with any dent or dings on this truck. they all got a story about what happened to 'em. i could feel the barb wire was just digging into the pain

itdidn't help that lockheed reported on the same day that caterpillar made the inane inaccurate remarkble action, lockheed, the market got skeptical about all of the defense stock so when ndown 2.6%. thanks to the pin action from lockheed martin. it was just hideous. hammering about martin, and how most of the earnings canme from lower than expected tax rate defense attitude the day after that, we heard from the one that took my breath away, and i think it is important that we spend time on this we heard from raytheon and they go over to more modest top and bottom b the stock was in the early market way up. and i said, oh, gee, action alert, we got the right one. but then it sold off hard. came in a bit weaker than expected but the four-year numbers are strong remember, this had been the best performer. no credit from the good and everybody freaks out about the bad. i went over this call again and again. i simply did not see why the stocks would just strip the gains. on april 26, we got the big push against north korea and south korea. and if one of the things defense hates is peace ta

commentsman ceo making like what we heard from caterpillar, saying fiscal 2019 will be more challenginghan anticipating. the company had already cut its 2018 outlook. so that is weighing on the shares. sprouts farmers market going counter to the rest of consumer staples. consumer staples are bouncing because of cal and kraft heinz numbers beating estimates. sprouts, that is not the case -- because of catalogs -- kellogg and kraft heinz numbers beating estimates. sprouts, that's not the case. shery: gina martin adams joins us. great to have you. we saw julie mentioned the 200-day moving average. ominous a sign that we broke through? ominous.rribly historically when you break through the 200-day moving average. the last couple of times turned up to be a buying opportunity. i would say a marker = is if we continue push lower and ultimately break the february and march lows, which create a double bottom. 206iistant level is at the -- try 600. if we -- 2600. that we wouldst go down to 2500. breaking the level ultimate leads in higher stock prices. one question is, for the financial sector at

tiffany's and caterpillar at all-time highs.tionary tale against socialized economic policies. i'll tie it together when we come back. e trax, great for when you move in together. -ahhh! and this is the chevy equinox, perfect for when you two have your first kid. give me some time... okay. this is the traverse... for when you have your five kids, two dogs and one cat. whoa! five? uhhh... it's the chevy memorial day sales event! get an additional $750 on these select models. that's on top of most other offers! find new roads at your local chevy dealer. we always came through for our customers. from day one, it's how we earned your trust. until... we lost it. today, we're renewing our commitment to you. fixing what went wrong. and ending product sales goals for branch bankers. so we can focus on your satisfaction. it's a new day at wells fargo. but it's a lot like our first day. wells fargo. established 1852. re-established 2018. ♪ with expedia you could book a flight, hotel, car and activity all in one place. ♪ charles: tiffany a

. >> desktop metal counts bmw and caterpillar as customers. raised 277 million dollars with backing bmw,ge ventures, lows, alphabets venture arm, and most recently forward. -- ford. >> it is a great market and will probably be the largest market for the technology. >> desktop metal employs 150 people, mostly engineers. along with research and development, this latest funding round will increase staff with plans to expand to more markets, europe and asia. caroline: in the wake of the cambridge analytic it data scandal, facebook suspended 200 apps that may have also leaked private data. mark zuckerberg promised an examination of all apps in late march. the 200 apps are suspended pending an investigation into whether they did in fact misuse data. coming up, we speak to the ceo of akamai about keeping the internet secure. that is next. this is bloomberg. ♪ welcome back to as special edition of "bloomberg technology" live from boston's institute of contemporary art. companies are spending more to protect their online systems the knowledgeed service

china trade talks downgraded caterpillar with the bizarre conference call out of tesla las

while stationed in germany he became a member of the caterpillar club whose membership is restricted to those who had to bail out of a disabled aircraft. during his military career, colonel stabbins was a professor of physics at both west point and united states air force academy. retiring in 1973, colonel chose reside in the great city of tea case, south carolina, which is in my district. he was instrumental in being incorporated as a city in 1982. he's been honored by a number of organizations in the community, including citizen of the year, grand marshal of the independent state parade and many more. colonel stabbins exemplifies the motto of the military school, the great school of west point, duty, honor and country. buzz, happy 93rd birthday on may 31. we look forward to many more years of doing what you continue to do. i yield back the balance of my time. the speaker pro tempore: the gentleman yields back the balance of his time. the chair recognizes the gentleman from california, mr. garamendi, for five minutes. mr. garamendi: thank you, mr. speaker. i rise today in memory of

companies, going on tirade like musk means selling, but think about this one wrong word like the cfo of caterpillarearned heard bay can erase 3 -- by the way kerk racerase3 months. after the close a mixed bag for retailers and tech names. >> by panel to discuss david nelson. kevin kelly, melissa, and stock. melissa, what do you think, you are big on momentum carrying us through. what do you make of last two sessions, resolve, climbing off 20200 point down sessions. >> i heard what you said last night, i agree, i am surprised today, we closed negative, i will give you that, we may break out of this range, you are convincing me. charles: gym eating to you -- i'm getting to you. >> you have to watch this closely as we do, you have to be impressed that market does turn. you have to be frustrated that fundamentals seem to play less of a role in the market day-to-day. >> like you said there are winners and losers, i am going to retail rhe real estate up ov% since macy's reported earning says that foot traffic is up. look at lululemon touching a 52-week high, they do not have their management straight but

boosted by boeing and caterpillar. doing big business in china. chipmakers, especially those that supply zte. the hope is the u.s. will save the chinese company. that is the hope if you are a company supplying to zte. right now, global stocks are mixed. >>> big trouble for big food. cereal, soda and soup companies in turmoil. investors are not keep up with changing tastes. campbell's soup and pep ty. consumer shares are down 13%. -- pepsi. consumer shares down 13%. sales growth for oil and shipping and materials is increasing. in the past, they would raise prices. they don't have the pricing power today. blame walmart and amazon. lowering expectations for the cost of a box of cereal or bar of soap. >>> the obamas are coming to netflix in front and behind the camera. a first of its kind deal for the former president and first lady. the deal producing scripted and unscripted series and documentaries. sometimes the obamas will be on camera or hosts and moderators. other times they will be producers. netflix did not reveal the cost. it is giving them

particularly caterpillar and boeing, they are the big winners in this. their fortunes tend to follow the fate where we think trade will go with the chinese. they are most adversely impacted obviously markets would not think that is the case. gold needs a flight to quality or haven right now when there is mo whiff of any problems of that sort for the time-being. so gold at a year-low, or low of the year i should say. the dollar index hitting a 2018 high. edward lawrence on what is causing all of this. i guess, edward, on optimism we avoid a trade war for the time-being pretty much, right. reporter: that is exactly right, neil. there seems to be movement from the chinese side here. this is only talk right now, but what they're saying the u.s. trade delegation seems to like. for now the u.s. will hold off on tariffs and so will the chinese. >> it's a framework agreement. it is an agreement. secretary ross has to go over and turn that into a signed piece of paper with companies as i described this as not a government to government purchase order but we have

boeing, caterpillar mirror trade with china, the better they do, they are looking today.how that's going to end up and in the backdrop the mueller probe. experts say they get a sense that phonetic activity has been winding down. i've been hearing this for 6 months. i don't know your definition of winding down, takes a long time to wind down. thank you, lady. blake berman at the white house because i'm telling you, blake, this is confusing a lot of folks, they were hoping to see imminent closure. i don't think they are seeing it right now. hope spring i ternal that they will. blake: remember first iteration or one to have iterations of the president's legal team, i believe the first team would be that this probe would be done by end of 2017. it is now may and there's no realtimeline as to when exactly this might wrap up so much that the big question now is whether or not the president will sit-down with bob mueller himself, you know, the back and forth between the president and his attorneys as to whroirpt -- whether or not that might happening. with all that happening, yo

the likes of general electric and caterpillar and boeing are rising. also within $11 billion deal selling its locomotive is in us and creating a new entity of which it will own half. its holders will own half. other industrials rising on the trade talks. watching semi conductors and appliedgy with materials, semi conductor equipment applied materials, semi conductor equipment maker, fell after the couple came out with a negative forecast. flipping the switch today, we have macron, the semi conductor maker, forecasting third-quarter earnings above estimates and raising its forecast and raising the low end of its sales forecast as well. the company is citing strong execution and healthy industry conditions at its analyst day today. other semi conductor related stocks are trading higher. it's a big week for treasuries issuance. here's the calendar for the week. tomorrow we have $33 billion of to your notes coming to market. on wednesday we have short-term bills as well as two-year floating-rate notes as five-year notes and seven-year on thursday. those fi

. >> desktop metal counts bmw and caterpillar as customers.he company has raised $277 million with backing from ge ventures, lowe's, bmw, alphabet's venture arm, and most recently ford. >> it is a great market and will probably be the largest market for the technology. >> desktop metal employs 150 people, mostly engineers. along with research and development, this latest funding round will increase staff with plans to expand to more markets, europe and asia. caroline: still ahead, amazon alexa continues to dominate. we will hear from their exact, tom taylor. you like bloomberg news, check us out on the radio. this is bloomberg. caroline: now, back to our special coverage. we next turned to the rise of the digital assistant in our everyday life. the latest breakthrough has amazed and scare some people. new program called duplex calls to make a restaurant reservation, it called a human on the other end of the line. it sounded just like you or i might, complete with islands and causes,. one could be the voice for millions, and is amazon's alexa.

caterpillar, nike, starbucks is building a storer 15 hours in china. if we have a protracted trade war, there are u.s. company tox that could be hurt. charles: tim cook keeps trying to play diplomat. he's in an interesting position. apple manufactures a lot their products there. but they are only the number 5 smart phone manufacturer there. >> kim is a globalist in he sense of the world. getting on the wrong side of president xi is not part of the business plan. in february they announced they will expand another data center to support their icloud service. they want to get into china. unfortunately our heart line and a lot of our others businesses have not. charles: rebecca, what do you make of the notion from a public relations point of view the chinese government controls the media. president trump has an opposition media. where xi has a strong advantage because no one is going to publicly dispute him. >> each country is a sovereign nation and you have to deal with it as it is. china is not an open democratic republic like we have. that's what the c

and trals like caterpillar, and boeing, and retailers are lost out, dollar general had tough quarters, sears announcing they are closing more stores, 72 unprofit instores. their sales continue to slip. costco after the bell announcing 10% gain in same-store sales. we'll watch for that. for the month stocks higher across board. liz: a new report, president obama's netflix deal. did he get help from insiders at netflix tha close to his white house? >> and cnn, calling out kim kardashian, saying celebrities like kardashian does not belong in the white house, talking about prison reform. >> time warner, not firing and cancel talk show bun by samantha b, saying an apology is enough after saying scripted antiwoman slur about ivanka trump. my next guest said this proves there is a double standard, coming up. the wonderful thing about polident is the fact that it's very, very tough on bacteria, yet it's very gentle on the denture itself. polident consists of 4 powerful ingredients that work together to deep clean your denture in hard to reach places. stay at la quinta. where we're changing wi

a lot of issues at the mercy of what happened on this trade front with china like boeing and caterpillar. they soared on the prospects that the chinesely buy more goods for us and that will do the trick. the thought of no trade war started a buying war at the corner of wall and broad. charlie gasparino is here and melissa. what are they whipping up about, you think? >> the market or -- >> neil: your money loving friends. >> the only rally was boeing. that was the big rally. the stock ended up at all-time highs. even apple had a small rally. >> neil: how much is china playing into this? >> it's definitely playing into it. some relief that we won't have a trade war. >> neil: you said eminent. >> we'll see what happens. this is a temporary suspension. the market reacting positively to that. it's predictable. the is was iced out of these meetings. >> neil: was he? >> yes. despite what larry kudlow said. >> neil: he's the march hawkish trieder. >> yeah. he wants to -- he thought the presidented erred and blamed it on mnuchin and the sanctions put zte out of business. they should they deserved

last monday caterpillar said it was the high watermark. stock was up. it came crashing down.r since then there has been pressure on the market. they wonder if it's as good as it gets. i say it could get better. >> sandra: >> sandra: caterpillar is a good barometer. >> we have a serious skills gap. it's what they call new collar, not white or blue collar. you need special skills to get it done. a piece out burlington northern paying $25,000 bonuses for pipe fitters, steelworkers. if you can get the fingernails dirty you can make a lot of money. >> bill: rudy giuliani calling out jeff sessions during this week and why he says the a.g. should intervene in the mike cohen matter. >> sandra: growing questions on the fate of three american hostages being held in north korea as the trump administration continues to push for their release. a live report straight ahead. >> stopping a nuclear war and helping protect the safety and security of people across the globe would certainly be the number one priority of the president of the united states. >> sandra: rudy giuliani calling on jeff