kimberly-clark is raising prices among most of its products to combattyigher commo costs.n 60%, and that'sne according to estimate and consumers will start to see the higher prices in the first quarter of this year and the first quarter of next. shares popped to $116.46. >> and the move by kimberly-clark follows price increases by other consumer companies like procter & gamble. those costsre intensifying because of the ongoing trade tensions with canada and with ina. so if rising prices continue to be a part of a bigger trend. how do you inflation protect your portfolio. joining with us some ideas tonight. ken mahoney, the president of mahoney asset management. >> as inflation goes up, rates go up and important for bond holdings and you advocate oating rate funds. the american beacon floated away. >> so it keeps adjusting its arates the portfolio manager keeps up with that. so you don't have the basic 3% and losing 4% or 5% and we've seen the last few years, and w thatn the best floating rate funds. >> do you have decent income and it's a 5% dividend and in fact, if inflat

courtney mentioned kimberly-clark.y were upgraded to neutral frunderweight at morgan stanley and the analyst cited the potential for the recent price increases to take hold which we reported on yesterday. the price target $114. that stock gained 1.5% to 118.26. >>> and breyer wasupgraded to equal weight at morgan stanley. the alyst expects improved results and the recent sell-off n the stock makes it attractive. the price target is $23.50. the shares re 4% to 1a38. astrazen was downgraded to hold from buy at jefferies. it is now fairly valued aic the target is 39.46. the stock closed below thatt level 37.96. >>> is the housing marke starting to favor buyers? some areas just might be showing f it. we'll tell you where coming ♪ ♪ ♪ ♪ ♪ ♪ p >>sident trump is calling on the justice department to sue the makers ofpioids. duri a cabinet meeting in washington today mr. trump asked attorney general jeff s asions to bri federal lawsuit against certain companies that supply opioids to hospitals. several states already have filed

might be turning around which in this case meant people believed the higher prices would stick kimberly clarkaid the increases would be mid to high, that means they won't start a ruinous price war to with proctor. the stock never recovered from the big first quarter sellout. if you want to know the true power of this move, look at the stock of kellogg on say a nothing. these rallies are a signal that interest rates are headed loer, high yield bond market equivalent stocks that can only rally like this if investors aren't worried about rising interest rates 2.93, they were so petrified kim are berly clark is raising prices to offset kmot commodity into nation. wait a second, they put through their price hikes just as commodity costs have started to fall down precipitously. you know what happens then it should translate into sweet margin expansion next comeback stocks playing dead but not staying dead, well, how about this one simon property group that's the huge shopping center, real estate investment trust did you know jc penney has locations in 67 out of 107 simons malls here is a stock penn

>> yeah they can, and kimberly clark on this news is up significantly and by the way i own kimberly clarkty in place and you have automakers talking about steel and aluminum before tariffs you see the same thing in commodity which has something to do with the terrorist and they have pricing pressure. >> i see market at the moment up about 280 points on the dow industrials. that's a very nice rally right from the get-go this thursday morning. can i presume that the turkey problem which has been a problem for some time is that gone away, david? >> well turkey problem i think people realizing if you unique to turkey you have who is in a -- >> no contagion? >> i don't think so. and in i think some of the earnings reports. i have to tell you all investor psychology and i think that problem can be resolved quickly if it gets realistic about things. if -- >> if. that's the big if. but it is up today despite fact that turkey is up by iphones we see who is winning that war. >> don't buy many iphones they have to meet -- they have to repay loans to the the tune of 150 billion within the next year.

kimberly-clark down 1.8%. campbell soup and krft t,nsumer staple -- kraf consumer staple names.verall, stocks are strong. shery: thank you so much for that. coming up, turkey's cratering market, a possible bailout by they imf -- the imf. rumors are being met by radio silence from the central bank and present erdogan. this is bloomberg. ♪ marketshis is bloomberg balance of power. mark: president trump isn't considering lifting sanctions against north korea. john bolton tells fox that kim jong-un's regime hasn't taken the necessary steps toward getting ready -- rid of nuclear weapons. toton spurs the north release the names of all foreign soldiers killed during the korean war, including those from south korea. an official at the u.s. drug enforcement administration says the percentage of bitcoin transactions involving illegal activity has fallen. it has dipped from 90% five years ago to just 10% today. an analysis of the blockchain data shows that speculation has become the dominant driver of bitcoin use, but the dea cyber task force says the total transaction volume associated wi

government will take control of energy and steel sectors and turn consumer good companies like kimberly-clarkr colgate pol-- to a co-op. >> it is just does not work. it is an odd argument to be making for socialism now, when the economy is perks up, i think people feel it. i think they feel it in terms was not trapped in their jobs, i have a daughter just starts work out of college. i feel there is more opportunity. i think people feel it. it is odd for me to hear this message now. liz: you pay a heck of tuition. >> well. when i stop. >> switching gears, arizona democrat gubernatorial candidate david garcia proposed a border policy, taylor made, taylor madl immigrants to pour in over the border. >> just imagine, just imagine, no wall. no wall. in sout southern sairs sairs. a. >> john lennonnism, it silly, i am pro immigration, i have 3 daughters that are immigrants, but i would like a legal system. since democrats have moved to -- >> he had a deal but democrats -- >> right, but i think it might have been used against him people say abolishes i.c.e. that does not sound like a policy it sounds

these conditions for very long before they say what we have seen out of procter and gamble and kimberly clarkarles: speaking of earnings, ladies, today president trump tweeted out a proposal to look intoning these quarterly earnings reports and follow a european model. it's something i felt we needed for a long time. danielle, what are your thoughts on that? >> somebody asked me what my reflection was after hearing the news. i replied maturity. companies feel they are under the gun every 180 days. it's ridiculous. people have been in the investment community for as long as we have, we have been vying for something like this to come about for a long time. i was pleased with the sec's answer. >> i think transparency is good. this creates a lot of tension for companies and allows for forbes guidance in a way that is productive. but there needs to be a balance. now as a quarterly report the way to do that? i don't know. i'm happy to look at other ideas. the president tweeting it out always puts more pressure for things to change. charles: jackson hole next week, are you anticipating any fireworks

macy's allegedly reported a weaker than expected quarter, sending the stock down 16% and kimberly-clark is raising tissue prices to offset their cost of inflation. that stock went up bears take away, slowing growth, high inflation, hey, stagflation. >> sell, sell, sell! sell, sell, sell sell, sell, sell sell, sell, sell sell, sell, sell >> the worst would be the lower third i'm asking my producers, the lower third deco these are all terms i'm going to get used to in the 15th year of the show i'm almost there let me put this in context context changes the way we look at this stuff. ready? let's start with china the chinese are digging in their heels on trade now, we hear endly president xi is playing the long game, waiting out president trump, something he can do because he is not democratically elected. true, i have no doubt. but the chinese stock market is playing the short game the chinese communist still runs what is in many ways a command economy. when they decide to have a stock market so companies can raise capital, i think they may have misjudged that stocks can't be commanded to

interesting that in the last week, we've seen proctor and gamble talk about raising pric prices kimberly clark now deere. so you're going to start to see more inflation talk and that's what i want to look at in these earnings calls who else is going to come out and say we're going to raise prices we talk about the risk and efb's talking about turkey one of the things we know about inflation, when it happens, it happens exponentially. the other thing is the cost of labor. we see this and it's something the housing market has paused. they don't have enough qualified people to do the demand out there, so what's going to have to happen to these costs >> then retail, which has been on fire so far this year they're facing a trucking shortage so they're facing higher costs when it comes to transportation. how are you factoring in this sort of inflationary pressure on corporate america? >> so, i think inflation is firming. but i don't think it's running away and i think the entire inflation we had this year, month after month after month, wage growth is yet to show signs of strength been talking about

ones come to mind we have liked historically in the show let's start with 3m, procter & gamble, kimberly-clark pepsico. any of them would be great and something with a bill more juice, i think of fang, face book, amazon, netflix and alphabet, formally known as google why these? i think that facebook has the ultimate mode about. it's a rapidly growing site where you provide the content and they provide the ads it's a brilliant company, deep bench. amazon, there is a $4 trillion market for goods in the world and amazon only has a small fraction of it netflix? this is a company that wants so much to dominate entertainment that it intuitively recognizes what you want when you want it game changer why do i still like this alphabet isn't that flayed plaid out? no, no, no it's because a dominant surge. the advertisers love it there is a balance sheet of beauty and a whole passel of people working to invent something new to supplant or compliment search. oh, and wemo these are just examples. they're about growth i know it seems rather commercial to do what i want done here, but i also think how poor i

kimberly clark makers of clean exand huggies and scott toilet paper, is the latest to announce rising prices for customers. they cite rising costs, warning consumers could saee the price o up by october. procter & gamble made a similar statement, tide detergent and pampers and bounty, could see price increases of 4 to 5%. cited cost inflation and market dynamics for rising prices but manufacturers and consumers alike should also be bracing for the coming effects of tariffs in president trump's ongone trade war. joining me to discuss, sarah eisen. markets are way up. they are starting to shake off the fear of tariffs, huh? >> you can thank walmart and cissco but the walmart story is interesting, it confirms what larry kudlow is saying. the u.s. consumer is doing very well and out there spending. last quarter we saw 4% growth on consumer spinding. that's very good, a sign that the tax cuts are working. so kudlow is right to say there's a boom in the economy butless also a boom in the confidence of the administration and the big question is are they going to shoot this recovery or themse

certainly these price increases and the likes of procter gamble and kimberly-clark are going to be difficult them to manage. on the macy's front should look for -- we know the headline number is not going to be great. they have already telegraphed that comparable sales will be down because of this major friends and family sale that last year was in the second order and this year it slipped into the first quarter. so we know we will see a decrease, so we will be looking for whether they did a good job managing inventory and how did they fare on gross margin. were they able to sell things at all price rather than forcing discounts and promotions down people's throats to get them to spend? scarlet: macy's will be recording results tomorrow. sarah, think so much. the market closes next. you can see we have green across the board here. the s&p is breaking its five-day losing streak. four day losing streak. this is bloomberg. ♪ [applause] >> "what'd you miss?" stocks closing of the green. largest500 holding its march in the dollar raising to a fourth month high. i'm lisa. scarlet: i'm scarlet fu.

bright spot, take a look at a few consumer staples, kimberly-clark up 3.4 percent, this comes on speculationiad may have an un-disclose position. investors liking that because it can give a tailwind. >>. look at the first word news with mark crumpton. >>. turkey taking its -- >>, turkey taking his boldest stance yet to try to stave off a financial crisis. loans are already topping $20 billion, president erdogan set up a stink with the united states, imposing new tariffs on a wide range of american-made products. jim and mattis is pledging -- jim mattis is proposing closer cooperation with argentina, the military partnership between the two can be strengthen he proposed, it's his first visit to argentina by an american secretary of defense since donald rumsfeld in 2005. foreignunt, the british secretary, said it would be a strategic mistake if no deal is struck before britain leads the european union in march. speaking alongside the foreign minister, hunt said that would not be in the best interest of any european country. he is visiting several european capitals to discuss the latest in prai

kimberly clark said they're going to put on -- if proctor hits the price and the price of oil goes downross margins will be fabulous. >> that's true yeah that's true. >> i was looking, sorry, at the press release about the offer that has been made to acquire china buy logic products i mentioned it briefly and you know what the company does i have to admit, jim, i'm not familiar with it. >> i know because the s&p includes it in the chart book. >> it's a consortium of bank of china, group investment limited, cdh investments. they say they have a highly confident letter from goldman sachs for the financing. >> right. >> and they say it represents it's $118 all cash offer they came public with it they came public because they would have had to filed 13 d apparently there was ownership among the group that would have had a show they own more than 5% so they came public with it and are going to, obviously, pursue it hoping to get to a definitive agreement from china buy logic products more for you there. >> now, david, i just listened to that. what i kept thinking was if elon musk actually ha

kimberly-clark, general mills.re the ones that had the big, big run-ups we're seeing here a rotation back into the old leadership group of technology with no dramatic drops in the consumer staples. they're sort of now sideways after having risen rather dramatically, up about 10% since the month of june. it is that sector rotation that keeps the market so strong right now the dow is flat, down seven points >> let's get to the bond pits as well, rick santelli at the cme >> good morning, carl. it is an interesting morning if you are a fixed income trader or fed watcher, or just a market strategist in general. we had the first two inflation data points in the form of july ppi. we'll let the markets speak for themselves a 2-careyear, short up gave up ground 10-year gave up some ground. overseas i'd pick bunds but i did it over a week because the move is more subtle. but if you look on a weekly basis, it did dip out of the range that had been established even though the range had been downward aiming. it seemed as though

kimberly-clark was upgraded.or some of its products although jpmorgan says there's some uncertainty whether they will stick giving the competitive pricing environment. >>> and take a look at best buy today. the company announcing an acquisition, it's an interesting acquisition because they'll buy health care company great cacall for $800 million in cash. its an all-cash deal. greatcall? they focused on personal emergency response services and devices for senior citizens including the jitterbug line of phones with big screens and large buttons. the company has 900,000 subscribers to the service, including push button urgent response, medication schedules and 24 hour access to urgent care by phone. i know you're thinking about the word buttons and the fact that i -- >> you have modified. >> have i? i used to do the "t" was a "d" and now i'm in between. >> for me -- >> you appreciate it. >> i was just reading something this morning about how your pronunciations of certain words what it means to people. >> what does

kimberly clark i own. the companies are pricing in increases without having to eat them. the consumer feels like going out to spend. americans spend a lot of money. charles: we're known for that. >> we're finally starting to see that again. charles: what some people will say, you know what? we were pretty excited at peak on the eve of the great recession. we were spending a lot of money, credit card debt was through the roof. where do we start to be concerned we're too optimistic, we're getting in over our skis? >> i think the difference is, look at crash or recession 2000, 1% gdp. no comparison of the nasdaq, 71 times valuation in the nasdaq now at 23 times valuations. the valuations are much more realistic. also the difference is, the bush tax cuts came in 2002. last time we had 3% gdp growth for full year, 2004, 2005. we had the tax cuts before the bull market ended. that is why i think you're seeing the extension. charles: we know success begets success. durable goods report came in. forget the head lines. i think the part about business is the untold story right now.