they are always going to make the playoffs but will never make the championship estee lauder is tryingwin the super bowl the ceo is the bill belichick of the cosmetics business not that long ago estee lauder relied on u.s. department stores and made up one-third of the business they knew brick and mortar was the place to be. right now they realize many of the buyers for prestige makeup don't go to department stores any more, they don't go to the mall, they go online or ulta beauty we pivot stop depending on the no growth outlets for growth he goes on the road to talk to young people in china to figure out what they like he has hero brands he can sell the world over that's why i love the stock of estee lauder but a slowdown because it does become more attractive as the economy is weaker what do you do it's crazy to switch back and forth between the slowdown stocks and come pthat's somethig hedge funds can get away with. you're better not trying to gain rotation find the stock of high quality company where they figure out landscape and takes risk estee lauder is a prime example. it would

we are looking at estee lauder.st performer in 500, doing the best since february. emma chandra will take us through the numbers. emma: estee lauder shares hit a record high, with double-digit gains at the highs of the session. this builds on a big year for the $65 billion cosmetics giant. stock is up 40% year-to-date come outperforming their global peers. we seem to have the wrong graphic there, but hopefully we will be a be to bring you the right one. they've been putting in -- we will be able to bring you the right one. they've been putting in healthy returns, but still doing better with prestige products, particularly in skincare. they beat in both profits and sales, and now sees earnings this fiscal year of at least $5.90 a share. while sales growth declined in the u.s., asia continued to be a key growth area, particularly in china and hong kong. sales growth top 25% in fiscal 2019, the second year they've seen that level of growth in a row. the company said the u.s.-china trade war is factored into their outlo

mo16 cka ment >>> estee lauder jumping after a strong beat on earnings, up more than 8%.n care and makeup products company mentioned escalating u.s. caroli/china tre tensions as a source of tension. that stock up 50% this year, heavily outpacing its consumer staples counterparts consumer staps ales are defensi. like a p and g they are showing strong growth and a lot is coming out of asia i mean, the u.s. was actually the weaker spot in that earnings report, but double-digit revenue increases in places like makeup made for a pretty strong report. certainly doing wonders for cramer's long standing instagram thesis, which he will not back away from. you leave the house, you've got to look your best, right >> hong kong seeing no slowdown despite what had been significant protests and unrest there. >> that's what we got from the consumer staples companies if there is a slow down it's in heavy machinery, in the manufacturing sector much like better seeing here the consumer in china is holding up pretty well, at least when it comes to smaller items like makeup and hair care sg 2

companies, 10%, represents a record high for estee lauder going all the way pack to 1995 and get this, becky, since the beginning of the year this stock is up a whopping 52% in that time >> wow. >> we'll continue to watch el shares, one of the big standouts in an otherwise green tape, even more so green on estee lauder. >> dom, never walk away when your telestrator is gone that's the lesson. >> i saw the note. >> thanks very much. if today's gains hold, the s&p and dow would be higher for the third straight session so what's behind the sentiment change over the last few days? for some answers let's head down to bob pisani at the new york stock exchange bok, what's going on >> well, you know, becky, it's been quite a rally in the last several days here. the dow has moved about 800 po ts begins the bottom on thursday afternoon that bottom is not a coincidence. the bottom correlated precisely with the bottom in ten-year yields the it happened, the yield was 1.47% at the bol tom and the yields came off of their lows on thursday and so did the stock market look at that core limpingts prett

estee lauder in the green. as ulta greer gears up to repor earn earn, could this be the start of makeover for the group? your trading nation team today bill, get us started give us a snapshot of how you think ulta and estee are holding up here. kind of different segments, but at one time or another have been leading consumer stocks. >> both are trending strong and there's tho reason to think it's going to stop. ulta broke out above highs in march and that was about 315, 320. you have to 200 day moving average. however a weekly close below 315 is going to encourage more selling. that's where the 50-day moving average is as for estee lauder, you're seeing this thing tread strongly broke out about two weeks ago above a trend line we're coming back, testing about 195 to 197 it's well above the 200 day moving avrnls. is right now, it would say the trend is going to continue as long as it stays above 195, 197. >> obviously the backdrop is as a sector, cosmetics are doing well you have the selfie economy in their favo

estee lauder was up to 201.65. microsoft is giving mine craft game more graphics by chip maker nvidia. nvidia shares jumped 7% to 170.78. >>> chinese social media company weibo topped earnings estimatess itincreased its full year revenue outlook. it jumped 14% to42.31. >>> pg&e fell after a judge decide jury could whether the utility is responsible for a massive wild re that killed22 people and damaged more than 5,000il ngs two years ago. the company could face up to $18 billion inamages as the blaze was the second worst wildfire in california history. pg&e lost more than 1/4 of their value closing at 10.67. >>> twitter closed 900 accounts it believed was connected toa. ch it said it would no longer receive advertising from state controlled news media entities. shares rose more than to 41.70. >>> and after the bell vidu results topped expectations as they saw an increase in the daily app users. shares initially rose in after hours trading and they closed the re nlar session uprly 8% to $104.22. >>> google made big

the cosmetics company estee lauder will be reporting earnings.ucts like clinique and la mer will likely lead to a rise in fourth—quarter revenues. investors will be on the lookout for comments on any impacts the company is facing because of the ongoing trade war between the us and china. investors will also be looking at potential disruptions to its asia pacific business, because of the protests in hong kong. for the rest of the week, look out for more earnings reports from retail companies like target, gap and nordstrom. and finally, also happening on wednesday, the federal reserve, america's central bank, will release minutes from their last meeting in which they made a 0.25% cut to interest rates. joining us is emma—lou montgomery, associate director of fidelity international. good morning to you. all eyes on the us central bank once again, scouring for clues in the notes we get about the latest decision. absolutely. on wednesday week get the minutes that might explaina wednesday week get the minutes that might explain a bit about the thinking

estee lauder was an amazing quarter.ght now estee lauder, used to be 30% american they cut that down to 13 america is not as good a market as china great numbers in israel, great numbers in russia. >> north america -- >> they knew they knew. insta and insta and insta. the ceo spent a lot of time with young influencers in china talking to young people to see what they want that's a great growth market imagine sitting down with youngsters, talking about how they look better. >> yeah. >> they love tom ford, by the way. tom ford remember, tom ford is also scatt logical. he goes out on a limb. >> i haven't >> jim, netflix has only been below 300, a handful of times this year. but it is a dollar and a half away you think this is a pressure from the pricing on apple, we think, reports indicate $9.99 a month going live in november, being more expensive than -- >> $6.99 or even -- the free services as well that disney will offer at a discounted price of almost 30% for the list what i come back to is how much money -- i don't know

you had estee lauder report recently, saying bullish things as well.thing is that coincidental, but will freak a lot of investors out anyway, the fact that lady gaga just announced recently she is going to exclusively debut her cosmetics line on amazon, and that is the first major celebrity to exclusively introduce a line on amazon, so it is probably not related, but investors are starting to sell the stock first and ask questions later. anthony, thank you so much. coming up, politicians are no stranger to soundbites, but who said these statements may actually surprise you. we are looking at a couple of faux pause some politicians have made in the past and we will figure out whether it is joe biden or donald trump. from new york, this is bloomberg. ♪ ♪ romaine: time now for a look at what stories are trending. terminal users are reading about porsche, expanding its subscription services in flexible car ownership. the price of the two-tiered monthly subscription service will increase $100 to $3100 a month. bloomberg.com has a story on contain the may la

estee lauder shares are up by about 6% this morning. >>> "squawk box" follow-up right now. 15 years ago went public josh lipman joins us with more of this little start-up that could. >> priced at 85 a share, market cap of 25 billion. the stock has since surged more than 2600%, some of the company's growth has been fueled by its acquisitions like youtube, which the company bought for $1.7 billion in 2006, generating an estimated $20 billion in ad rv new per year and double click, which it agreed to pay $3 billion for in 2007, helping to power google's ad business. its biggest acquisition, $12.5 billion for motorolo then it sold it to lenovo. but google got to keep a lot of motorola's valuable patent portfolio. 40% more than amazon on acquisiti acquisitions, 500% more than apple. ceo has told me recently she's open to more acquisitions, specifically when it comes to her company's cloud business nutanix allows companies to run so-called private clouds, meaning keep their data in-house, outsource other pieces to the cloud patrick moorhead said that's sought-after technology, which he thinks

that was estee lauder. , they beat 10.4% estimates despite slowness in the u.s.. big growth in asia, plus the outlook positive. wynn resorts up strong on positive results and kohl's of 4.9%, rallying ahead of the report tomorrow. , ain, it is a risk on day rebound from some of the volatility last week as the bulls are trying to take charge. david: coming up, boris johnson is on his way to funnel europe to talk brexit and 2 million barrels of iranian crude have left gibraltar, heading east, while hong kong has had another week of demonstrations. we talk about what it all means, next. this is bloomberg. ♪ david: this is "balance of power" on bloomberg television. i'm david westin. itika: president trump is reiterating his criticism of the federal reserve and what he called the lack of vision by jay powell. on twitter, the president urged the fed to cut interest rates by at least 1% to help the world economy. he added that the u.s. economy is strong and democrats are trying to "will it to be bad" for purposes of the 2020 election. thes johnson is dismissing notion of

this looks like a great broadway show i usually fall asleep on broadway you have to listen to estee lauder's call. we know they have a business segment weaker than others still, china was on fire so the e commerce purchases were incredibly strong and the stock had 22 points in response. is this stuff that good? i guess so i don't go to the counter. i don't know about you, but what the heck were people thinking using premium makeup with an inverted yield curve how dare they? how could sales of clinique be so strong and how can people want to buy mac? it sounds ridiculous because it is even though i've heard it for months mac. m-a-c, my wife has a whole wall of it. what is it i don't know it costs money stopping traders in their tracks but not commerce the recession talk hasn't vanished even if it's buried under a mountain but days like today it's hard to find. let's go to john in kentucky, please, john >> caller: boo-yah, jim. >> boo-yah back. >> caller: okay. yeah, great. my grandson and i he has a little education portfolio that i've got for him for his college. he's 9 we recently bought so

14-year-old wears masks all the time. >> yes that's a high-margin product forres forrest dr for estee lauderp more than 50% year to date however, if there is a little bit of concern about the overall category, it's getting skimmed off the top of that. >> you heard it here first masks are the new contour. >> okay. i'll pay closer attention to what's going on in my household. >> you should. >> it's a good policy. >>> now let's send it over for a cnbc news update good morning so here is what's happening at this hour. dorian is now a category 2 hurricane. it is expected to strengthen over the weekend as it heads towards the east coast of florida. it's expected to make landfall monday night the national weather service says the storm currently has maximum sustained winds of 105 miles per hour. >>> a new york city teenager has been arrested after telling undercover agents his deskbliiro conduct a violent attack in the name of isis he is expected to face a judge later today to face ter-related charges. >>> hong kong police arrested pro-democracy activists in a mounting crackdown on people involved

their sales are generated in china with chinese consumers 15% for coach and kate spade 13% for estee lauder. >> courtney regan, thank you. >>> the fast money team shows us they are treating today's bill fall and uncertainty ahead and also ahead, how smaller individual businesses are preparing to ride out the trade war storm and core neiarnage onl street the real estate investment trust hitting a 52-week high and oflling along with the rest the market the cnbc special market in turmoil will be back in two minutes. >>> the energy sector the worst performer. here is a look at the biggest decliners among the group and energy hit hard as much as more than 6% lower. welcome back to the special report, markets in turmoil the fast money team making a lot of decisions as the market fell. melissa lee, take it away. >> traders on desk tonight, stocks of course getting hit hard today as trade turmoil slams them how should you position yourself month? b.k., what do you do >> be cautious we talk about buying protection making -- when the sun is shini shining. you can still buy protection what is going to

that's what's really driving the success you saw with five 9 the last quarter >> so, i am an estee lauder associate and i am concerned there was an issue involving some sort of manufacturing issue, it was cleared up immediately. people were concerned whether they have something that was wrong with the product what does five 9 let me do that i couldn't do if i just hired a bunch of people very considerate and nice >> it's all about intelligence when you think about you as a consumer when you're calling into a brand, you want to get to the right person as quickly as possible finding that right person is critical finding the person who can answer your problem, estee is a customer of five 9 think about the old days of estee. the front door of a retail outlet, you walk in and talk to somebody in a white coat the call center has moved from the basement to the front floor of every business. it's all about intelligence. >> you said in the conference call, the market is huge and customer interactions are absolutely exploding that's because of e-com? >> e-commerce is a huge driver >> lululemon, whe

>> i don't want department stores i have an department store exposure with estee lauder, 20% exposure they're doing everything else other than the department stores. >> do you still like walmart >> i do like walmart. >> walmart looked like it was in great position fundamentally and technically. >> still are >> it feels like it's wobbling >> we had a vacuum of news post-their last earnings so you will get not only earnings but the conferences, conference season starts in september. there is a big consumer conference that they will obviously be talking at and all the other companies will be as well we'll get real time data points. i have to think the jobs market, wages, unemployment. >> that is good for walmart consumer the reason i like walmart is they have been spending aggressively for the last several years. they're starting to put the brakes on that a little bit. a little bit >> josh i think raises some interesting points we have largely dealt with what has been a business sentiment story, more cloudy, outlook picture. the consumer has been the pillar of strength. consumer sentimen

charles: estee lauder is the stock today, up 21 bucks t could be up more.he skin care division, hair care did 2% if it wasn't for the strong dollar 4%. they do so much business outside of this country. i know the politically economically correct answer, strong dollar, but can it be too strong? should the fed do something about it? >> i don't think that we, i don't think the dollar is so strong on an overall u.s. economic basis that you need to do something about it right now. there are certainly companies where you really do have to worry about it. particularly those companies, where they have got more than 50% of the revenue outside of the united states. you have to know that is a headwind. it is delving company by company, stock by stock. charles: right. >> again even bond by bond. i wouldn't say buy all bonds because we think the bonds will go up as recession fears increase. i think you have to be very careful about what you select. charles: we have seen this earnings period where companies with, majority of their business outside of this country have do

. >>> and estee lauder hitting an all-time high after the company announced what its ceo is calling outstandingnings for its fiscal fourth quarter. the company also raised guidance for 2020 and expects its global prestige beauty to grow 6% to 7% during the year. shares are spiking. look at that, almost 13% higher. plus, it may be all fun and games when it comes to kids' toys like care bears, but president trump's china tariffs have been anything but. liz claman talks to basic fun's ceo on what he says has been a nightmare trade war, next on "the claman countdown." ♪ ♪ introducing the all-new chevy silverado. with fifty industry-firsts. it's the strongest, most advanced silverado ever. quadrupled their money by 2012? and even now many experts predict the next gold rush is just beginning. so don't wait another day. physical coins are easy to buy and sell and one of the best ways to protect your life savings from the next financial meltdown. - [narrator] today, the u.s. money reserve announces the immediate release of u.s. government-issued solid gold coins for the incredible price on your screen.

getting hit as well, sally beauty, estee lauder. the last day of the week, the month and the summer, sort of, labor day marking that unofficial end of summer and our traders are at the new york stock exchange and the cme group to help us out, talking about what's coming ahead in september. that's what is on all the investors' minds. we have john, chris and ira. john, i will go ahead and start with you and say i'm not looking in the rear view mirror. most investors are looking forward, thinking about the tariffs that go into effect this weekend, they are thinking about the fed and is it going to cut rates. do you think that september will see some calm ahead even as august was so volatile? >> well, september has also been historically a pretty volatile month. but we do have some interesting data out there. we have investor sentiment at all-time lows. meanwhile, we have fantastic unemployment numbers. unemployment at 30-year lows. this is not typically the type of environment, 2% gdp growth, that's slow but it's not recessionary. so a

but when you think of hong kong, you think of the metaphor of estee lauder, that's where the chinesewill -- it will come to a head and then like tiananmen square go away. how does the pla let this happen >> it is the worst economic impact they have seen in 15 years, jim you have a lot to unpack next hour we'll see you in a few minutes. >> most important thing out there. most important story outhe tre now. >> good to see you let me ask you something. can the past help you write the future? can you feel calm in the eye of a storm? can you do more with less? can you raise the bar while reducing your footprint? for our 100 years we've been answering the questions of today to meet the energy needs of tomorrow. southern company some bad news. >>to whom it may concern, due to budget shortfalls, the panther's baseball program >>ballard softball >>vikings basketball >>woodlawn soccer the tigers basketball program ...is indefinitely suspended. ♪ to whom it may concern to whom it may concern to whom it may concern every kid deserves a chance to play ♪ >>> want to take a quick final check on the

take a look at the shares of tiffany's, estee lauder, louis vuitton. to luxury, the overall retail business, travel and gaming industries have been hurt in hong kong. switching boards to take a look at a bloomberg index of north american luxury goods. it has been falling dramatically since the protest started in april. tough decliners include fossil, tapestry. bloomberg economics says hong kong's economy is ill placed to absorb the blow. in addition to the luxury goods sector, the trade dampening, the u.s. china trade war, is a rough picture for them. this is china's credit growth. in july it fell to the second lowest level this year. 1.0.gate financing was this is really reflecting weak loan demand and credit conditions in china. they say it foreshadows sharper deceleration in the economy and could mean further monetary easing in china. thanks very much. saudi aramco is still the world's most profitable company despite the falling price of oil . profit came in at $47 billion in the first half a drop of 12%. -- the cfo outlined plans to stay at the top

estee lauder hitting all time high levels in today's session after reporting an earnings and revenueeat the beauty company is setting strong demand for skin care produc products also issued a much better than expected full year outlook and the stock is higher as a result. shares of target also moving higher on news that it will launch its own grocery brand it will be called good and gather good and gather. and is expected to hit stores starting on september 15th target says that by the end of 2020, good and gather will have more than 2,000 items. that stock up almost 3%. >>> increasing shareholder value no longer the primary focus for many of america's top business leaders. that is correspond to a new statement by the business round table out today, a group of ceos from nearly 200 major u.s. corporatio corporations, the updated commitments which in addition to generating shareholder value do now include investing in employees delivering value to customers, dealing fairly with suppliers, and supporting local communities. notable companies that were missing from the pledge included ge,

. >> the unbelievable ceo at estee lauder called them out as doing really well.inting that out >> jim, boeing high for the month, really. you see some of the banks perking up as we get yields higher >> boeing, every time it trades up, you have to understand that's someone who says they're not going to have to stop production if stop production goes to 300, continues production goes to 400. if you want to roll the dice like that, be my guest i know the changes they're making, apparently, are very good i believe that the key to that is other countries' faas, not just ours, but if they get that thing flying again, that's really going to help gdp it's going to help >> some say -- well, wilbur ross says 0.4 >> i've done a lot of work and think it could be 0.5. >> really? >> yeah. >> huge contributor to gdp no doubt >> boeing is our best. >> jim, really quick, there's a story on the tape about leverage loans. five deals falling flat in the past few weeks things -- something that people have been putting in the worry column >> i think that when i look at who did particu

make those items more expensive. 16% of nike and tiffany sales are generated out of china 13% for estee laudere? >> courtney, thanks. for more on the u.s./china trade fight, let's bring in our guest melanie heart director of china policy and anna ashton with the u.s./china business council. melanie, where do you stand? i hear the same thing from a lot of people that maybe come from your side of things, and that is that, yeah, china has done some things in the past but we should be addressing it through tpp or addressing it through our allies and we're doing it the wrong way. but then again you have schumer saying stay tough. where are you on this, melanie >> look, we can be tough with china without holding a gun to our own heads and forcing american consumers to pay, american households to pay up to $1,000 a year to cover these trump tariffs. we can be tough standing together with other countries that share our trade concerns, our ipr concerns, our industrial policy concerns with china and the g7 is exactly the kind of forum where the u.s. should be bringing other leaders together on this issu

well, check estee lauder shares hitting a record high they reported higher profits and beyond meat, thisnow why stu is so fascinated with this. he is and they are investors are not i would not say obsessed right now, but it's a healthy gain. they're up about 1.5% today, up to $146. this is after hello fresh, oh, yeah, the meal delivery service, they said that it's adding beyond meat to its menus and that's one reason it's up. bitcoin is up, gold is down, but bitcoin is up, modestly, $278 again that's a modest gain for what happens with this very volatile stock, i say stock, you know what bitcoin is but it's up to 10, $708 for one bitcoin. bank, thank you that was a good discussion. i appreciate it. coming up jc penney and macy's both expanding into the used clothing market. partnering with a company called thredup to offer secondhand items at a discount. the ceo joining us in our 11 a.m. hour and nbc universal canceling the release of the controversial movie "the hunt." now remember that was all about elites hunting deplorables. now it looks like the movie could hit theaters after all we