kimberly-clark parent of huggies, kleenex up 22% so far this year.ng us for a cnbc exclusive interview to discuss the health of the consumer, his business and much more, michael hsu, ceo. welcome back. >> great to be with you. >> how do you see the stock performance? do you see it as a reflection of your turn around strategy or the general environment of staples right now? >> we are focused on delivering long-term shareholder value and our strategy to deliver balanced sustainable growth and just glad that the performance this year improved versus prior couple of years and off to a good start. >> where are you in terms of performance in sales, especially given the fact that your biggest rival procter & gamble ramped up the growth lately? >> we had a couple slower growth years and really stepped up to about 4% organic growth year to date this year and seeing good performance from our north america business which is a big business for us but also really strong growth from our developing emerging markets up about 8% overall year to date. >> what is the s

revenue for kimberly-clark. i like that. even better colgate, you're talking about over 70% non-u.s. revenue exposure. that formula works for me. overall, i want u.s. revenue exposure. from a sector basis, i don't want to dismiss their ability? >> as part of the call, barclay's downgraded clorox. it is a 20.5 p.e >> it's a huge problem for me y. would love to own some of these consumer staple stocks, but i never can because the multiples are always too high. even at the worst of the year last year in december, they were trading at like 19 times, 20 times. even with the emerging markets exposure, this upgrade to revenue growth is still low single digit. i don't see how anyone justifies the valuations with that limited growth. when i look across the sector, i got nothing i can do there. >> maybe that's more of a long only mind set. i think there is plenty of trading opportunity and you can gross up a lot in staples. we look for areas where we can be long one stock and short another. it looks like a trade on the price action wh

. >>> the price target for kimberly clark is $152. the stock rose to $136.83. >>> barclays downgraded clorox, with the analysts sighting the potential for softer revenue growth that could impact earnings. price target 51. the stock fell today. >>> alcoa, analysts cited r aluminum prices in the n term. share prices fell to $21.30. >>> the sudden demise of the largest travel group is being felt around the world. >>> general motors has furloughed another 1200 worke00 asesult of the labor strike that's entered its second week. the latest round is on top of 4500 temporary layoffs. the automaker and his suppliers handed out on friday. those aff ted are from a facility in ohio and a powertrain plant in ontario. warning of consequences should britain leave the european union without a plan in place for trade. a no deal brex could have an impact on the car industry. disrupting suppliers and sellers as well.r >>> the t operator, thomas cook a behemoth ran his own hotels and flights is no longer in operations. deaving hundreds of thousands of tr

consumer naks mike meerk and kimberly clark. momentum names strong all year selling o. is there the reversal, the rotation going on? there is optimism over trade talks fling the rotation. trade has been the primary driver of the stock market all year. for "nightly business report" bob sani at theew york stock exchange. >> joining us to talk me about the market rotation. ken kayman, psident of the arcadians asset management thank you. >> thank you very much. >> you see this as a safety play by the investors. >> the value sector of the market underperformed the last five years a the growth seetarier is twice the return cumulatively than the value sector and led by mostly momentum stocks andang a tech stocks. >> right. >> a lot of people are worried that the market might be getting topee saying do i have to ride the roller coast down in t t hot spots when there are great bargains in what we call value. >> whicho goes the volatility. we have seen the extreme volatility at cer iin points the market, much linked to headlines on trade. you were saying the value stocks more pre

which one do you like the best >> of the ones you just mentioned, i would probably lean toward kimberly-clarke all very rich as far as valuation goes, they're not growing very fast. >> they are growing for a change >> they are a little bit kimberly-clark, i think where we have an advantage over a company like clorox in the ecommerce space. people will buy diapers and toilet paper and paper towels and tissues, they'll buy that stuff in bulk through ecommerce. you can't say the same thing about bleach >> what about lulu too late 227? >> i love it i wish i bought it an hundred bucks ago. but it's always just a little bit out of reach if i could get it to drop back to 170 or right around the 200-day moving average on an expectations miss, i would definitely lulu. >> and they do the teen retail survey, so they have a really good sense of what the younger generation is buying, and lulu continues to rank highly, really high for women, second performance brand after nike and climbing the ranks for men or boys. >> teens -- boys or men? >> men's, digital, international, those are all growing at 30 plus

you put up the next full screen for me kimberly clark, consumer staple names that have been strong.y have been on the weak-side in the last several days so it's those momentum names that have been moving in different sectors that we have seen we have seen rotation into cyclical names that's been a little better. we have a nice rally in the transports and there you see southern, john dooer, this is just the last few days since wednesday's close this is associated with the yields we have seen. it sends a signal to the stock market overall i want to show you the transportation sector. the transports have been really strong look at this this is that four-day rally in the transports a classical group. so, yes, we're getting rotation. it could be a little confusing big momentum names like consumer staples haven't been doing as well but this is a good sign. back to you. >> thank you very much so the investor kpo dust out of stocks is it a warning sign for the rest of the market let's bring in michael, welcome to both of you michael, let me start with you bob detailed the movement in bank s

they're back again today some consumer staples that were big, kimberly clark lagging bi the upside today. semiconductors back a little bit. this has been a cyclical rally in the ls week or so so if you look here, we've had retail and bank and energy and industrial stocks rallying. this was beaten up on the global slow down. today if you look at things, ths not as strong as it's been in the last week. so retail, banks, energy stocks, fractionally up. industrials more on the flattish side they're not big market leaders how far can you go buying these on a sluggish global economy that's why i think wells fargo had a great call on caterpillar and deere saying we've had a great run with these stocks. caterpillar is up 10% but wells fargo said bounce on sector rotation and trade optimism, yes, we've had it, but decreasing construction sales, that's an issue for them and i think this was a very good call for wells fargo. so cat's down about 1 is.5%, deere about 2% guys, back to you. >> thanks very much. >>> well the market swings today are emblematic of the tug of war that's been going on all w

a lot of these consumer names are still strong a lot of them are hitting all-time highs from kimberly-clark to walmart to dollar general, they've all recently hit new highs nike, lululemon, companies like that with strong brands, they're going to continue to work. >> we are still awaiting the gop response to house speaker nancy pelosi let's get to eamon javers still outside the u.n. traveling with the president this week. eamon. >> yeah, a things to watch for one we don't exactly know who the republican leaders are who are going to be giving this response at this point or how many of them are going to be -- we will cece the top three leaders in the house of representative, just the top leader or the top two? that's something to watch for as republicans game out their response to what nancy pelosi has said she is opening an impeachment inquiry. that means they're beginning the process here of moving toward the possibility of drafting articles of impeachment. one thing that i'm going to be watching here as the leaders take to the microphone is this question of tone the president has been twee

the whole thing was going to collapse, buyers started standing up in the recession stocks think kimberly-clark, procter & gamble but these are not the kinds of leaders you want to see. they're just the exactly the kind of stocks that do well in a slowdown later the strength explode to adobe, mastercard, visa, nike among a most host of other stocs what do they have common they're not really dependent on the health of the global economy to make their numbers. domestic, yes. global, no they can make the numbers. second, there is another camp of investors who are trying to gain out the election oh, boy. specifically, this group wants to price in the possibility of elizabeth warren presidency. now warren has started to edge out joe biden, and she's no fan of certain industries, especially the managed care ones i could have done another. there have so -- stick with me on this, because let me just deal -- i'll deal with the managed care in a second, but it's really extraordinary how bad they are today something happened that i haven't seen in a long time there was an analyst, a good analyst who said

all throughout the year that have been the ones that have been weaker in the last five days, kimberly clarkick, hershey's you get the idea rotation out of the more consumer staple names and into the cyclicals. back to you. >> rotation seems to be the word of the day thank you, bob nasdaq outperforming the other major averages of the day. bertha coombs has those. >> hi, courtney. apple regaining that $1 trillion mark for the first time in 2019 and seeing its best day and at the highest levels we've seen for the stock since back in november when it was near all-time highs now it's only 4% from all-time high that's helping to boost the nasdaq composite and the nasdaq 100. what's stunning here in terms of that rotation has been the move into the beaten up small cap stocks, russell 2000 now up over 5% for the month much better than the rest of the other indexes. still just coming out of correction now over the last couple of sessions here and some of the big movers have been really beaten down, retail stocks, as bob was talking about some of these small caps have really seen some major moves her

kimberly-clark is big. what's not moving is energy and retail and industrial stocks banks are kind of flat as well they had a great run overall but still the rotation still moving very well. just want to highlight 3027 is the old intraday high for the s&p 500. we're ten point away from that that was also at the end of july >> we got an intraday s&p chart. what happened this morning we were all over the place >> reporter: we're going up and down based on bond yields. that's what move things. last week we bottomed on bone yields wednesday morning as yields started to lift the markets lifted this morning we went up and down depending on economic numbers and some of the discussions going back and forth on trade. that's really the marginal mover in the market. >> bob, thank you very much. those bonds are also moving because of central bank action and the ecb announced its latest moves. steve liesman joins with us the breakdown. >> reporter: the european central bank cutting rates and launching a new round of bon

and the names you'll know are the top of the list, will include things like knew monnew gold, kimberly-clarkeing opens up down 2.8%, $10. that represents 70 points on the dow. so of the dow's decline, 70 points of it more than a quarter is boeing at the moment. >> keep your eye on amazon today. we'll talk to mark mull haney who takes the target from 2250 curious to see what his reasoning is here. i've been told it is regarding the impact of prime one day shipping and the initiative that might drive overall retail sales for amazon 2600 street high if not, awfully close. >> i would imagine it is pretty close. it seems also -- as there are so many believers in long-term story, has 100% buy rating on it take the opportunities, if you believe in the story, when tactically it pulled back. it has not been a great performer relative to the highs last year. so 177 no0 now. a lot of head room where it is trading and where it was when it hit a trillion dollar market cap. >> there is $1 trillion market cap right now. microsoft, the case for a good time now we were focused on friday on ulta because of th

yeah >> this is a market that loves -- >> kimberly-clark had a big spill as the momentum shift happenedays takes it to overweight >> clorox, all about the bags. all about the generic threat to clorox existential. a lot of the products are being knocked off. you go to -- you go to costco, they're gunning for clorox i put the -- i buy burt's bees stuff. i think it is a good brand david thought they overpaid for that, but it's done well what >> did i feel that way >> yes i learned this morning -- >> i think i did >> you know who is stealing your seltzer thesis is guggenheim taking boston beer to 462 from 449. >> spiked seltzer is the biggest thing. i went to my beach house, i opened a refrigerator, filled with spiked seltz, i thought it was club soda, these are good. don't get behind the wheel after spiked seltzer i have canopy on tonight i was talking to some doctors, what is the level that you're drunk with cannabis? what is the level? they don't know. each person is different one of the big problemsin america is that the state troopers do not know when to pull you over. they're trying t

and we've also got the ceo of kimberly clark, michael hsu to talk about the state of the american consumers, and the fact that these consumer staple stocks like his have been trading at new highs he's a new ceo, he's got the benefit of the doubt in the market, has engineered a nice turnaround in terms of cost cuts and top line growth, but a big rival png hot on his heels that is growing at the fastest they've grown in years i'll see you at 3:00 >> when we come back right here, we'll have more on today's rally. "squawk alley" is up next. don't go anywhere. through the at&t network, edge-to-edge intelligence gives you the power to see every corner of your growing business. from managing inventory... to detecting and preventing threats... to scaling up your production. giving you a nice big edge over your competition. that's the power of edge-to-edge intelligence. we believe in education built for all people., - [woman] snhu was the best experience of my life. - [man] without snhu, i wouldn't be the leader i am today. - [woman] i graduated high school 19 years ago. i still finished. - [man] i

tech has been strong and consumer and defensive names have been strong merck was down yesterday kimberly-clarkm names, weak what is happening today? how about these four names exact same thing this is what i'm telling you, a little bit of a trend, too early to take a major trend, we're sthe seeing this for a second day in a row. deeper sick-li eer cyclical nam. john deere, fastenal, this were all up yesterday what are the names looking like today. today's performance. generally they're outperforming a little fastenal down 1% some evidence that some deep cyclical rotation may be going on right now the important thing is all year low volatility stuff has ruled the markets. i'm talking about consumer staples have generally been strong reits have been strong utilities, these are -- from the 52 week highs, these are essentially right near historic highs throughout the year. what else? rotation is going on these are the ones hit badly these are the ones that may be doing better if we finally start getting some rotation into the markets overall. industrials also only 3% from their historic highs disc

defensive names that have been momentum stocks recently have been lagging merck, proctor, coca-cola, kimberly clarkall lagging so far. it's those momentum names that are sort of pulling back we've had fin tech stocks like paypal and visa, they've been strong all year. waste management has been strong wallet disney has been strong. that's what a momentum stock is. they have been lagging here. there's definitely rotation going on in the market we are closing at the highs for the day, the dow jones industrial average up 60 points. >> welcome to the "closing bell." i'm morgan brennan in for sara eisen. >> i'm wilfred frost alongside mike santoli a fantastic final 15, 20 minutes of trade to the s&p positive the nasdaq was just negative at the close. the dow, as bob pisani just said, closing at the highs of the session, up 70 points or around a quarter of 1% the small cap russell index did outperform, up 1.25%, largely because of its weightings in the likes of energy and banks that perform well morgan, the chart i'm picking out is the energy sector today, over ten years, yes, energy was the best today at

mondelez, altria, colgate, kimberly clark. i like costco. it. in general, where the consumer is spending his or her money, that's where you put your money? >> what's strong we think continues to be strong. we are obviously watching the strong data we just saw but we are going to look at the data to come. stuart: one more for you. i know you don't like tech at this point. what are you doing? you are contradicting yourself. you like strength, buy into the strength. big tech is strong. >> very quick. stuart: what's wrong with it? >> you are trying to catch me there and you're right to, because i think it's a tale of two types of investors. if you are a tactical investor, i think you have to be mindful of this ebb and flow in the trade discussion. tech is really in the eye of the storm. volatility valuations are reasonably high in tech. if you were to de-risk anywhere, why not take some chips off the table. that said, from a long-term secular standpoint, where we have had clients, we have been overweight tech for a very long time, there's been a