tv Closing Bell CNBC May 11, 2015 3:00pm-5:01pm EDT
expensive sculpture ever sold. not bad for one night's work. let us know how it goes. >> i will. >> what do you got? the bold zillow upgrade ahead of earnings. >> listen in on the radio, too. thank you for watching "power lunch. "closing bell" with kelly evans begins right now. hi welcome to "closing bell," everybody. i'm kelly evans down here at the new york stock exchange. >> welcome back. >> it's good to be back. you're not allowed go on vacation anymore. i'm bill griffeth also here at the new york stock exchange. a down day, we've pulled back a bit. but just a bit from the big rally we saw on friday. that tepid jobs report. one thing of note in the bond market the treasury yield curve between the five-year and the
30-year is now the steepest we've seen since last november. something we'll be talking about coming up. >> the first thing i noticed is the level today, 2.6%. some big moves over the last couple of trading sessions. all of that coming up, also making big move zillow the real estate upgraded. should you make a bid on this hot sale? or is it actually time to sell? plus the new king of saudi arabia numbering president obama by cancelling plans to visit the white house this week during that summit meeting at camp david. coming up former u.s. ambassador to saudi arabia robert jordan comes back to us. he'll tell us whether this is all over the nuclear negotiations with eye ran. this new king. he's his own man, that's for sure. the dow jones industrial average giving up some of its gains, down 100 points now. half of 1%.
the s&p down 11. the nasdaq also down 11. and, bill can't comfortable break that 5,000 level. what's it's been two months now since level? >> let's talk about that. we've been stuck in this range for a while. we have sam stoveal with us. kim forest. jeff colbert, jeff cox from cnbc.com joins about the end of the bull market or bear market? >> the end of the bear market. >> and rick santelli joins us as well. >> and people get into the panic of oh my here we go again with bonds. for the last several years we hoped to see a great rotation of money out of bonds into stocks.
we didn't see that for low yield and bad economy still stays ss intact. it was not a goldilocks job report. the fed not moving anywhere. i'd be surprised from here to september. but the bond trade is well intact. >> sam do you think it's that grim? what do you think of stocks versus bond land? >> well when i start thinking about the first quarter and everyone talks deja vu all over again regarding 2014 and 2015 i say things are quite different now. we're looking at gdp closer to 2.5%. we're looking at valuations today that on a projected 12-month basis are closer to 18 than they were less than 16 last time. and so my feeling is it's going
to be a lot harder to repeat 2014 as we move forward in '15. >> you have to admit, jeff kilberg, with the rallies, all of that is still in the context of this trading range we've been stuck in since the beginning of march. we really haven't gone anywhere in that time. >> absolutely bill you're right. and look what happened the bulls on friday, they got lucky. they got that middle of the road number. we saw that big rally. just like lebron james got a lucky shot on our chicago bulls, we're seeing those games fade a bit. why, bill? because of the price action. 75% of the price action was established. so, i think it's more of a short cover than conviction buying. >> there have been some great basketball games in this playoff series. >> there have. he's clearly still bitter about that. you still have the blackhawks, my friend.
>> kim, over to you, where do you see the investors right now? >> our investors are going to invest the money they put in today and reap it three to five years out hopefully. we're looking for companies in the i.t./tech sector not social media. not anything of that ilk. but productivity-enhancing companies. so that would be tech and industrials. and we still are find something values there. because after all, they give companies productivity their products are in demand. >> wait a minute kim, i think this is a subtle slam on social media. >> subtle? >> it doesn't seem like you're a big fan of its use of enhancement of productivity? are you staying away from it because you don't think these companies are going anywhere? >> well it's difficult to say where they're going. you know they're a media advertising platform just like
tv just like newspapers. and it's eyeballs and results that drive money to those sites. and we're still in early days. i know we like to think we're not but we really are, in how people buy things, how they decide if they like a product or company. are we really going to facebook tole research our next car, i'm going to say no. i think google still gets that money and that's why we stay away from it. >> rick santelli we saved you for last to let you talk about what you're talking about. i'm going to let you talk about the curve there, 5 to 30 the steepest we've seen since last november. what's that about? >> well, you paired two maturities definitely moving in the opposite directions. 5 and 30s are steep. i'll tell you why. five-years closed at 165, i see them at 158. 30s closed at 275, they're at
303. there it is. we could argue what it's about. we could argue about the silliness of six months of inflation. oh, my god, the boogieman is in the closet ridiculous. it's dealing with policy and a world surmounting lots of debts and trying to chew their way through it. i doubt we'll see the current yield of the year anytime soon. let's look at the lay of the land, the high yield closed for september for 10s. and november for 30s. the high yield closes for the year are getting contested as well. you can't ignore this moment it up. they might have been wrong about three years late but the market is saying right now -- >> do they have to combine them buddy? >> how many years do the fundamentals never match up? >> the s&p comes up we have no
other choices. if the s&p goes -- rick -- they're going to have to buy them? >> yes, it's called an escape value, valve, yes. but one escape valve may make it move down or up like the ones we'll see today, if stocks go up enough, we'll probably spike that. could we see 2.35 2.45 2.50 absolutely. >> let me go to you, jeff how much of this as well is driven by europe china? you have two cross-currents where the german boot has really made a move. >> and china. >> exactly. slowing there as they try to add more stimulus. >> he's talking about a trade. you're not talking about fundamentals. i think, you know the market -- i don't see how you see is a rising yield environment when
you have the economy for the first quarter could have say minus sign in front of it. the second quarter growth you'll be lucky to get 1%. i think at some point, as the killer just talked about, is this going to be pushing and pulling each other through the whole year. and i don't think we'll see a breakout. >> but we already have we've seen the breakout. how many times have you talked about in the past about fundamentals don't match the stock market going down? >> you don't see a strong economy? >> come on strong economy -- we think there are more jobs more jobs, millions of jobs veterans, people saying they're not part-time, they're really good jobs. but the productivity, we have a much more efficient economy. to me, that's the key. >> i just don't understand how you see a rising rate environment in such a crappy economy. i don't get it. >> market logistics. so we got to 3%.
next year we spend the whole year at 2.25 or 2.30. there are a lot of people offsides and fixed income. >> bingo. a lot of sentiment changing on the dime. people get kiddish. >> move it a lot, killer. >> hold on we have to go but kim, i want to end if you don't mind zeroing in on some of those, tech and industrial you think might be attractive here? >> i'm going to be a contrarian and say ibm i think is something they'd look at it. i think they can capture cloud dollars especially among their existing clients. then look at boeing. they're a great company, i know they price their products -- you know a lot of it is dollar-had based but there's only a
dualopoly for big planes you got to go to boeing or the other guy. >> you can name it airbus, that's fine. >> you know -- >> i got it. >> boeing is one of the performer. the dow is down 82 put until recently been in the green. >> thank you, we've got to go. thank you, folks. fun discussion to welcome kelly back. 15 minutes to go into the close here. even though interest rates are moving up, maybe because of that we are seeing pressure across the board. the s&p offering 9 points now, nasdaq trying turn pos, it's down 5. >> how much is digital viewing adding into tv ad dollars? we'll find out when we come back we'll tell you when media giants are thriving and suffering during this digital revolution. and since friday wall street upgraded the stock to a
buy. we've got that coming up on "closing bell." it took tennis legend serena williams, fencing champion tim morehouse and the rockettes years to master their craft. but only moments to master paying bills at chase.com. depositing checks at the atm and transferring funds on the mobile app. technology designed for you. so you can easily master the way you bank.
we're off the lows. coming off that low. the s&p down 9. nasdaq, when you left, we were flirting with 35,000. >> guess what -- we still are. we'll see if the end of the year makes any difference. investors meanwhile paying close attention to the media industry as the season kicks off. we're taking a look at how digital viewing is impacting ad buying julia. >> well kelly, this year may be the tipping point for broadcast tv. the biggest drop in tv ad sales since the recession is expected in a year when the economy is growing. advertisers are projected too spend 10% at broadcast networks 5% less on cable tv ads this season according to research and ad buying magazine global. tv viewing is down 9% this season thanks in large part to netflix streaming.
cbs is the only bullish media giant projecting growth. bob iker said disney and abc are doing just find. fox is facing pressure as it struggles with ratings declines with younger viewers and the end of "american idol." and netflix traditionally with additional outsales. nbc makes sales on aol. as for which company will take the biggest hit from the decline, analyst michael nathanson said it would depend on each company's willingness to accept lower prices and selling of apps. kelly, back to you. in full swing, but how much does wall street care anymore? and will media buyers still see it go the way of rabbit ears for antennas. jarod moses is founder and ce of the entertainment group
and ad buyer. and brian weezer is a media analyst from pivotal research group. good to see you both. thanks for joining us today. do the upfronts mean anything to you? >> you know, it's more about the celebration and release of these shows. >> it's a show now. >> it's show business. all the deals have gone up 75%, 80% before the show starts. so i think it's the celebration as the actual show. >> it does matter for investors, the sentiment around the media. that is what matters. i used to sit inside of an agency as part of the negotiations most them don't begin in earnest until next week. there are some deals done but very little. when the deals get announced when you hear about pricing volume increases it will matter a little bit, more than normal because it will impact the sentiment towards the media which is terrible on the part of investors at this time. >> jarrod you're one that
represents the brands when it comes to buying. one of the core sentiments are is there does this make that kind of buying -- >> you have to bundle. >> you're now bundling? >> absolutely. you have to go from terrestrial to digital, digital to terrestrial. you can't just buy one now. >> brian, we're talking about a business model created back in the 1920s by bill paly who virtually created the model for advertising. isn't 2 time that we break that model with multiplatforms that companies can make that not just used for television ad revenue? >> well there's a few things to
that the first thing is buying in advance. they have something called new front which is is intended to get advertisers to commit a year ahead of time. separately when it comes to can cross-platform buying most of media has been in attachment with tv invent tour for years. >> that's what jarrod was just saying. >> exactly. >> if ultimately what julia said, this is going to put downward pressure on pricing. this reminds me of the content for everything. if it's lower is it still going to hurt them in the long run? >> i've studied this extensively. what drives prices is the change in demand at the time up front. and you can't predict that right now, it's very difficult even if you're sitting at an agency to know with certainty. but here's the funny thing, pricing has almost no relationship to the revenue because the networks have a lot of flexibility in terms of
volume for inventory for sale. they have minutes of ads. they can change their yield on which advertisers get what units, et cetera. so there's a lot of moving parts here. >> how do you decide what price to pay? let me just use cnbc as an example. much was made last fall when our ratings were going down people saying uh-oh, what's wrong with cnbc? yet, ironically we had our best year ever financially. let's face it we're not just paid for our tv presence. we have a digital presence we have a social media presence. all of which are revenue-generating at the same time. how do you look at media property and decide what you're pay noorg entity? >> on top of all of that you also have a great brand and that brand has halos advertised as well. you look at the qualitatives as well as the quantitatives. if you could create a package. this has taken place for weeks, trust me we've been talking to
the networks about bundling packages. >> you don't just parachute in? >> absolutely. for a year now, we've been talking about bundling for the terrestrial. we try to find out, one, where can we get the best volume for the best buy. and two advertising media at the same time. >> obviously, this means competition os are brands includes all of the platforms who are the strongest and weakest as we stand here today in your view? >> when it comes to network tv your parent company comes very well with cable and broadcast. cbs will do very well they'll be the leader in terms of pricing for network tv. that will be the benchmark that everyone else will follow off of. >> do you agree? >> i do agree. just because you have the largest land mass for people to capture. >> who would be the strongest for you, jarrod? >> i think you can look at the
unconventionals. i think the netflixes are moving again. obviously, youtubes as well. >> jarrod moses and brian wieser. good to see you both. holding steady right now with the dow down 66 points. also saudi arabia's new king snubbing president obama by announcing he will not attend meetings with the president at the white house this week. is the u.s. alienating one of its closest allies because of negotiations with iran? we'll talk about that next. also uber planning a new round of funding that could value the ride-sharing company at $50 billion. coming up we'll discuss whether that's an appropriate valuation or a red flag of a tech bubble? yes, we're still asking that question.
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as bill would say, we're off the lows of the session. we're down more than 100 points. >> that's a drinking game thing, right? >> at the top of the hour. you can invent your own. but now, the dow is off 63 points we're seeing broad-based pressure, though. a couple of bright spots have to deal with more specific stories, that including kalter pill boeing express. and the dow back about 5,000, down about a point. >> we did take a hit today, we
stayed over $59 a barrel there. key support there. the head line from the "wall street journal" is that opec doesn't see oil prices consistently trading at $100 a barrel again in the next decade. in fact opec is saying it's looking at a $76 target in 2025. the journal is citing a draft. they do have a monthly report starting tomorrow. we'll be digging into that. opec's strategy was to start a price war, it didn't want to decrease production. of course, we're watching the june meeting to see if any cuts are made. or if they fall out of step with what their strategy has been so far. of course that could really change market dynamics. for now, again, as i say, we were lower today but still supported here. back to you. >> thanks jackie.
complicating the picture on oil is the new king of saudi arabia. he was scheduled to attend the summit at the white house at camp david this week but he's changed his mind and he isn't coming. many bill saying it's a snub. >> and joining us is the former ambassador to saudi arabia and author of "desert diplomat." mr. ambassador, good to see you. >> thank you, bill. >> do you consider it a snub? the white house is pointing out that secretary kerry was there last week met with the king and left on good terms. now we get the word that he's not coming to washington. what do you make of that? >> there's not a lot on this meeting with king salman. this has been a train wreck over several years. this administration basically from hosni mubarak, the saudis and monarchs were greatly troubled by that and wondered if
they might be next. once we saw them with any force over king assad usings chemical weapons. and then the nuclear negotiations going on with iran in which the saudis feel they had may be in the midst of a major shift in power in the middle east in iran's favor. if sanctions are lifted iran has billions of dollars to use against these monarchs in subtle ways. then, they of course if they achieve nuclear status can actually become a major threat in the region. >> so, i mean you sound like you agree, it's a snub? >> i think there's an element of a snub here. the other factor of course is there are only two of these heads of state coming to the summit meeting now. so king salman may not feel that he needs to be the big dog in this group. he also has his hands full quite frankly, with what's going on against the houthis in yemen.
>> right. >> i'll remind you that wouldn't be enough by itself to keep him from coming. i think he also probably is not looking forward to being lectured by president obama about reform as the president has said to the "the new york times." >> right. >> this is a woodshed moment that is probably like a trip to the dentist for these heads of state. >> where does this mr. ambassador leave the middle east when it comes to the it? we already find ourselves on different sides with iraq and at the same time helping saudi arabia help fight against the islamic state. so i just don't understand now what the u.s. is trying to accomplish in these talks? >> well it's a very tricky business. i think the president is trying reassure these gulf states that if we do reach a deal with iran we still have their back from a security standpoint. this is a very difficult assurance to provide since we have not delivered very much on
other assurances we provided in the past. so i think our credibility is really at stake here. it may take more than just this one summit meeting to reconstitute that credibility. but i think this is at least an effort at bringing them together. and i'm swhalomewhat skeptical it's going to be very successful, though. >> what do you make of king salman? this guy hit the ground running when they came to power. he came into secession, and now he's snubbing the united states which you agree with. how is this going to affect our relationship with saudi arabia going forward, do you think? >> i don't think we're in line for a divorce but i do think some serious marriage counselling is in order. this has been building for a number of years, not just with king salman but others in saudi arabia and the rest of the gulf. our credibility sat is at stake. we're talking about pivoting
away from the gulf. that's not good news. the fact that they've been able to exercise their authority to us after many years, and now we're saying to tell me you need to step up and take your responsibility. at the same time we're unwilling to provide them with aircraft and other armaments because we want them them to protect themselves and it's somewhat riskier. i think they've become very skeptical about what we're going to deliver. >> last question mr. ambassador where do you think this leaves the chances of iran getting done this year? >> well i'm still quite skeptical, if we don't have any kind of compliance mechanism, if the inspection not air tight and if the enforcement is not air tight, there's just no deal to be made that's where we come out here. >> ambassador gourdjordan, thank you.
time for "cnbc news update." the white house is dismissing an article that president obama misled the public about how the u.s. killed osama bin laden. oak, and secretary of state john kerry will meet his russian counterpart sergei lavrov in sochi. the state department also saying he will meet with vladimir putin. and authorities say george zimmerman was involved in a shooting incident in lake marion. it appears he suffered a minor gun wound. and a jury in north carolina says starbucks is not liable for charges after a police officer claims he suffered damages from a cup of coffee he spilled in
his lap three years ago. that's the "cnbc news update" back to you. still negative across the board i think we include nasdaq -- yep, down a point and a half. zillow after wall street slapped a buy rating on that stock. but should you make a bid on the real estate company at this point? coming up. also ahead -- >> why did you stop taking the anger meds? >> i didn't think they were work. >> agent ari gold will be here at the new york stock exchange. yes, we mean ari gold. he conquered hollywood, now he wants you to help conquer the business and financial worlds with his gold standard rules. trust us it's a very interesting interview ahead on "closing bell."
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the big gains we saw on friday after the jobs report came out when the dow was up about 250 points. today, down 69. at the lows we were down 102, i am told. the s&p is now down 8. and the nasdaq sitting right on -- you know we were waiting so long for the nasdaq 5,000. and now it's just going to stay right there. it's never going to leave 5,000. >> oh man, just to remind us. a first of its kind funded real estate project is now open for business in washington, d.c. and it's reshaping a nation and real estate values in the nation's capital. diana olick is there. >> reporter: this is still a traditional neighborhood. up would never know it from inside the build. the first ever crowd-funded real the city estate venture. it allows anyone to go online and put a couple hundred or couple thousands in to turn a wreck a building into a
restaurant and so much more. >> we raised $250,000 from 175 people. at $100 a share. >> reporter: miller's platform fund rise allows investors to buy shares in commercial real estate projects. in return, investors get rental stream property evaluation and they get to be a part of something bigger. >> we started fund spz rise with the idea of why can't everybody be part of investing in the neighborhoods. >> reporter: this area eighth street is in transition. just in one month, a thriving market that embodies the crowd. it has a retail store, a bar, a high-end asian food restaurant. >> i think when you have the synergy of businesses you get that lifestyle brand. >> needless to say, the place is
chockful of millennials. you have the vendors feeding off of each other, whether it's restaurant, whether it's retail. we're told it's cash flow positive. the investors are getting dividend checks as we speak. and let me tell you, every week night there was a line at the restaurant to get in about an hour long because they don't take reservation us. if you want to learn more it's automatic online. >> thanks diana. thank you. no doubt, some of those d.c. residents are using zillow to check on their property. upgraded by the way, up over 6% on the upgrade but still down 7% overall year to date. so should you be bidding on zillow as an investment? >> let's talk it out. gentlemen, welcome. daniel, first of all, why do you
think they're a sound investment? >> well, you know look i think that my colleague upgraded the stock, it's setting up nicely for him this year. zillow reset their expectations earlier in the year so estimates could end up proving conservative. zillow averages over 100 uniques. and a robust marketplace that could account for 10% of the marketplace's revenue. we think they created a sustainable mode that will make them part of the real estate space. >> james, you don't like it mostly because of price on this stock, right? >> right, absolutely. and the price action that we're seeing today in my opinion is indicative of short covering. zillow has over 20% in the flow. when we have an upgrade like this it tends to squeeze the stock higher. it also happens that we have
earnings tomorrow after the bell. options makers are implying an 8% move. it would make sense to try and cover ahead of a catalyst event like that. with all of that being said zillow has an absolutely dismal performance on earnings day. over the past 12 quarters it's rallied 12 times. as you said we're still down 7% even with today's move. it's very difficult to justify anything here but a short position. >> and daniel i want to go back to your point about the ad value chain. i think there's some concern about how quickly zillow can sign up new advertisers and new listings. why do you see more potential here than some of the skeptics? >> you know i think that there can be some fair points made about signing you up premiere agents. that's been a knock on the story that penetration is a lot higher than what zillow has said about 10% i think people are missing three things one, now that
they've gone above the agreement, they're going to start signing up mlss real estate agreements and subsequently, we also think they can sign a out la of bulk deals. a lot of these real estate brokers are looking four exclusivity in the markets. that is a clean sign of average revenue per agent growth over time. we don't think it's necessary for zillow to sign up tens of thousands of real estate agents in order to drive 30% growth rate. >> we had it like fundamental versus technical. >> and they kept it civil. >> they did. thanks, guys. the dow down 64 points off the lows of the day. you're welcome. >> that's right. by the way earn season is coming to a close. how do things shapeup you may be surprised by the results. we're going to talk about that next.
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welcome back. so there's some discussion about why, bill we saw the dow off about 100 points at the start of the hour. there have been different things passed around. perhaps some of it comes back to the comments that were made to the president honkishly, as investors would have anticipated. frankly, you look at interest rates and it does buy into this idea of the fed moving talking about say higher regime with that talk. >> we know the fed is anxious about that. we're going to get one more jobs report before the june fed meeting. and you can be sure maybe the rate increase is on the table for june. >> they had should have a come-down talk for that. >> somebody is putting it together. meanwhile, earnings trickle this
week. >> remember it was supposed to be a negative one,dom chiou has that scorecard. >> this is a little more positive. this is how we're going to frame it. now that close to 90% of the s&p 500 has reported their numbers, we've got an interesting picture. because again, these are against analyst expectations but still, two-thirds of company it's in s&p 500 through this morning, have beaten the average analyst estimate for earnings. again, these are analyst expectations that can be taken down, yes. we've got a number of tweets how the analysts can not get it right. that is the caveat here. two-thirds of them have beaten expectations. 10% have just about met them. 1 out of every 4 have missed estimates. as we drove down to the actual earnings and growth picture, here's where it gets more
interesting, all right? on the earnings growth basically what this means, out of all the companies that have actually reported what the expectations are for 10%, 12% of companies that haven't, if everything goes to plan we'll actually see about 2% growth for the profits for s&p 500 companies. again, profits are positive over last year. we thought back on april 1st it was going to be a drop of 3%. again, this is not gang busters earning by any measure. but still, better than the decline wes thought we were going to see. here'sy it gets sticky. if everything goes to plan about a 4% drop in terms of last year in terms of sales growth of these companies. we thought it was 2.5%. remember we got a slew of retailers coming out including mace's and ralph lauren guys we'll see how this affects those numbers. back over to you. >> thanks dom, it's just too
bad, jut as you want to say, hey, at least we have a positive earnings quarter, the revenue now, just grim. >> that has been the case for a while now. that's got to pick up. >> dom chu back at headquarters. 11 minutes to go here. >> and three minutes to sell. that's how the imbalance is to the sales right now. signing we've been seeing a little bit. >> it moved down a little bit. dow's down s&p down 7. zappo is instituting the dream of many namely eliminating bosses and bureaucracy and allowing employees to self-manage, no titles, no nothing. but is that a smart strategy for the workplace? that's later on "closing bell." announcer ] andrew. rita. sandy. ♪ ♪ meet chris jackie joe.
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there is an ancient rhythm... [♪] that flows through all things... through rocky spires... [♪] and ocean's swell... [♪] the endless... stillness of green... [♪] and in the restless depths of human hearts... [♪] the voice of the wild within. about eight minutes left on the trading session here with the dow down 76 points joining us right now, scott rostan from the trading and good to sigh both here. usually you visit us on after the jobs report.
they're anxious to get starting on raising rates here aren't they? >> i think you're right, bill john williams would not be aopposed to raising rates for june. i think september is a better day. when you look at a number of part time for economic reasons as a percentage of the labor force, you're looking at 4.3%. the last two expansions, those numbers two 2.6% and 2.3% respectively. there's still a little slack but it's coming up but still not snuff. high enough. >> scott, what should investors do? >> investors should look at this long term. household names now aback, and now the confidence at the sweet level moving up and the bull is back. >> anticipating higher rates,
the cost of doing these deals is going to go up? >> exactly. the cost is cheap. share prices are relatively high, therefore, it makes financial sense to do it. but they've gault a lot more confidence to start going shopping, if you will for those transactions. >> anthony, i know it's not the hat you wear but i'm sure it still comes up in figuring out how people are going to react? what do we anticipate as we enter this paradigm? >> i think the markets are experiencing more. but we've actually look at what happens to the s&p 500 and the equity market in the first two years if the federal reserve raises rates. if he raise rates because inflation was a problem and i measure that by how much is the cpi rising. the cpi is not a problem. the f & a market goes up 5% on
average every year the first two years, when the fed is raising rates. but guess what if the fed is rising faster than that. the s&p markets go down. >> the traditional of the 1980s? >> today, inflation is not a problem. inflation at 2%. hard to argue inflation say problem. >> anthony, scott, appreciate it very much. i wonder why you looked at me when you said the '70s? >> it was just a general gesture. >> five minutes left in the trading session. we have the closing countdown. and is uber really worth $50 billion. that puts it on par with general motors it's more valuable thanmy major airline. a venture capitalists tells us whether uber is worth it.
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points. heavy volume today as well? >> that's a problem. that's the highest level since we closed out in december. the way i understand the long end of the curve. it's about inflation and growth expectations. what do we have in growth? 2.5 gdp. i don't know what the right number is on the tenure. but it's creeping up fast. >> we were highlighting el earlier, the spread between the five-year note and the 30-year bond, the spread has now widened to the highest level since november. >> right. the curve is steepening. >> it is. >> particularly on the long end is why we're seeing it move up. i don't know what the number is something is wrong. this thing is moving up too fast. or the market is telling us expect inflation or growth. i can't figure it out. that's the problem. you hit it right, bill. the ten-year was the major problem with the stocks. as it moved up towards the
middle of the day, stocks falling. >> that's what they're watching right now. the dow down 83 points and the nasdaq still flirting with 5,000. stay tuned, much more coming including for you "entourage" fans ari gold himself will be here. he's written a new book on management techniques. that's in the second hour of the "closing bell." see you tomorrow. thank you, bill. welcome to "closing bell," everybody. i'm kelly evans. and here's how we're finishing up the session on wall street. looked pretty grim at 3:00. in fact we're going out towards the lows of the session. giving up half a pert. s&p down 10 closing at 2105. and the nasdaq was hugging, flirting with the 5,000 level again. failing to close about it for another sex, down 10 points is the level there.
let's bring in today's panel talk. dan briehouse is here. kayla tausche. and steve brasso will join us shortly once he's finished with the trade stand. is this because the federal reserve is truly going to raise interest rates? >> less enisten, we think they are. more importantly, you had a strong rally friday in the face of decline of yields. you gave back treasury that is to say, yeelields moved higher. resiliency in the stock market. we closed at that. >> we were bantering with rick
sant santelli. he thinks there's a disconnect between this trading range moving higher and a still weak economy. would you agree with that? >> listen, ire don't don't know. >> do you think the economy is weak? >> economy is clearly weak. the question is not whether or not a 180, 190 yield. i think bgig thinks that's ss that's probably not the right level. >> kayla. >> in the last few weeks we had a chorus of investors saying over and over again that rates basically should not be at zero. basically going up against the feds saying okay it's been long enough. whether it's june or 2016 at this point rates should not be at zero. they're basically taking the matters in their own hands. it's arresting the moves we've seen in the treasury market we
saw today and as dan said we didn't give up the real estate that we saw in friday's market. >> how weak is the u.s. economy. dan just said undeniably, it's weak. i just spent ten days on the road in virginia west virginia pennsylvania and new york. obviously, things aren't as booming as they were in manhattan. but they still seem to be much better than five six years ago in the depths of the crisis. how would you assess things? >> well obviously, there was a first quarter that was kind of weak. there may have been reasons for. the question is the underlying economy. i just came from new orleans, the aol founders he takes a bus tour around america, looking at startups and entrepreneurs in other cities. things that blow you away i was in nashville, new orleans, other places is a new economy, an entrepreneurial economy that is not being measured very
carefully in the numbers. it all could dissipate. and sometimes, lukeyou look at these start ups, and you feel what are you thinking? my own gut, the economy is stronger than any economy in the world. the first quarter numbers and the softest we see is not really a long-term thing other than a growing economy. >> steve brasso is joining us off the floor. steve, what do you think people are trading? >> i think people are trading too much in their head and not at the marketplace. we always think it's so much to quantify. but it just seems like where's the dollar going to be in six months? do you know? where's the euro going to be? where's oil going to be? >> do you have to care about that? >> yeah, you do because these guys are modeling for all of these things. they used to model for one or
two things. now it seems they model for 12 things. what they do they do whatever they can to tidy up along the edges, then they have no idea and they scratch their head for the big yardage in the middle of the field. >> i would sort of pivot off of that point and somewhat disagree. the argument we've been makes to the clients it all funnels down to the dollar. agree there's a focus on a hundred different indices and economies and the like to somewhat agree, if you have a view on the dollar. >> that's my view exactly. >> for me, ultimate list,ly, for me it's breaking down technically. with that rise. >> are you talk about the dollar? >> the dollar. >> do you think the dollar goes lower again? >> yeah. >> the house view is
technically katie stockton seems the dollar trade has run its course. fundamental, i think a lot of people have wanted to pile in on the dollar on the short side. to some degree with this last drift in the stock market you can largely attribute that to lack of strength in the market. >> now, you're telling me that the lower dollar is going to be better for the trading environment. you just told me it's a higher environment. >> the dollar is going to break down. it's taking the rest of the market with it. i think the dollar goes lower. the euro goes higher. i think the european markets come in they've outperformed the u.s. equity markets. >> right. >> this is me on a slow day. >> was it months ago that the euro was going to parity oil was going to 30 bucks. >> right. >> that's why people have a hard time predicting what it will be like in a few months.
>> it's inwinding. it's long maturity to unwind that. >> walter? >> well we just got a question and a thought which is the big thing that seems to be happening in china where they're now emulating us a bit. cutting interest rates, trying to stimulate an economy. to me, that's the big one that's going to change things. if you have a slow-going chinese economy, everything in the long term that's going to be bad for markets around the world. >> i was just going to ask, there are some who argue the fact that china is coming in with more stimulus shows that they're willing to stimulate the markets. ultimately china has to be a headwind for all of us correct? >> it seems to me i just read hank paulson's book on china. very favorable on china, until you get to the end when he tox about headwinds. i think there's not only headwinds but real gusts to slow down china. and that's going to the thing
that affect the economies around the world for the next year or two. >> dan, i just hope none of us keeps that next innovator in athens or new orleans or wherever from working on these concerns? >> no i don't think this has anything to do with it. at the end of the day, this discussion we're focusing on china has been slowing for several years now. a lot of people act surprised that breathe is closer to seven than ten. let's not forget that has been the goal now. >> when is that happening? it's clear they're slowing, but are they pulling off that transition? >> no, listen it happening. the question is are they able to manage it the whole way from the top to the bottom. there's an uncertainty. to walter's point for that being bad for china. i would disagree if the fact that that china has been slowing down for recent years. the rate is closer to 5%.
they don't look at the gdp number which we all acknowledge is more or less man-made. they look at electricity. and railcars. and you look at it specifically. >> it's not a bad thing? >> i'm saying slower growth than what we've experienced is not a bad thing. you've seen this over the last couple of years. where i would agree with walter and the consensus, if you have a more rapid slowdown than what we've experienced. >> i think we both agree on that. >> walter go ahead. >> no i said i think we both agree on that we're talking about a 5% 7% growth rate in china, that's fine. if something rapid that happens and, you know it will also tie into i hope we do the transpacific trade agreement and other things because getting in competition with a china that is having economic problems is not going to be a pretty sight. >> economic problems is
relative, too. because you're still seeing companies on a specific basis a lot of multinational companies. i'm thinking apple, of course best in class but 71% sales growth in china last quarter. you talk about gdp growth possibly slowing but when you have companies able to turn in 71% growth. >> that's a really good point. i'd like to you find a more a few other companies that are anywhere close to what apple is doing in china. apple is a night ride 34. >> alibaba, 41%. it's not 71%, but still companies like that. >> i'll be here for restaurants from starbucks and young, caterpillar in the markets. during the season it provides the best sort of glimpse into what's going on beyond the macro numbers. you list ton what ceos and cfos are saying on the conference
calls. >> they never embellish, god knows that. >> we are going to talk about the company sending everyone to france. the chinese company doing that. walter, i'm evening areager for your thoughts. next levels to watch? >> you have to be look at the 21-25 level on the s&p. if we come down you look at 2080, level on the bottom 2125 on the top. those are your book ends. >> duly note the. steve grasso as more coming up with the "fast money" crew at 5:00. and dennis gartman is thinking this is the perfect buying opportunity. you can find out why. uber could be heading to a uber valuation. the ride share app is about to do another funding that could send it to around $50 billion. we'll hear have a venture
capitalists who says not to worry about private company investments. there's plenty more investments to be made. and it's an investment you may not have heard of. hurocrasy. 450es he's offering a three-month severance for those who want to walk away. you're watching cnbc. first in business worldwide. what's on your mind lisa? i'd like to talk about a trade idea. let's hear it. [ male announcer ] see how schwab can help light a way forward. so you can make your move wherever you are. and start working on your next big idea. ♪ ♪
uber reportedly planning to do another round of fund-raising which could send it even higher. kate rogers has the details. >> that's right, they've reportedly briefed investors on its plan to raise $1.5 billion to $2 billion in new funding. that's according to "the wall
street journal" on these sources. the report also notes it could close up earlier this month. these plans of course could change. the 100 startups involved at
$2.5 billion, uber current $41 billion. if you're wondering about the size, last week uber reportedly posted a bid for an app for $3 billion. according to to that. they will raise the thought of when uber would go public. it would surpass facebook which has a $50 billion valuation when it debuted in the nas contact in 2012. uber declined to comment on this story, kelly, back to you. >> all
right, kate. thank you very much. from the valued private companies, let's bring in steve botman a management partner. welcome. >> thank you. >> let's look at the sheer fact that a private startup barely five years old is now worth $50
billion. should the company be in the hands of the public market? >> that's a great question and a little above my pay grade. from a regular reagor in washington, d.c. to a startup. >> this is what's different from last time in a way, we've made it safer for these companies to incubate privately. has the general public missed out an on opportunity here? >> well i think no question. when amazon went number the last boom, it's a $1 billion market cap. and if you think about that what type of opportunity that lent the american public to invest in a company that's now hundreds of billions. and the -- some of the regulations that would have been put in place, essentially made
this a very unequal playing field for small investors who want to take that opportunity. and in general, public in general. >> we'll come back to the valuation of uber itself in a moment. >> super. >> dan, you guys deal with companies almost exclusively in the public domain. >> sure. >> how do you feel about uber in a $50 billion valuation in strong hands? >> i think we had this conversation when facebook was going public. we had this conversation when google was going public that both had remained private too long. i think the argument around that on facebook is that there were benefits to being a private company. there's a lot of criticism on private markets focus on short term-ism you can meet the wall street demand for capital return, whereas, when you run a private company, that is not a concern. i'm curious if you think this
factors into the discussion at all. >> absolutely. i don't think it's the facebooks or the ubers of the world. those are brand names before they even went public. i think focusing on them is an exception to the rule in a lot of ways. it's really about the $50 million going to $100 million. the $100 million going to $200 million, $300 million. it's really those businesses that we've sort of lost from the public market because what we've essentially done is uncriminalize research on wall street. we've threatened banks, we've december sa miezed our system so investment banks can't afford to tout. >> but have we made it safer, quote/unquote? >> sure zero ipos is safer. >> but then again, you're not creating the wealth that we with the amazons and that really helped the portfolios from the '80s to 2000s.
steve, my question about uber is, okay so you have them raising money three times in a year. i'm thinking about alibaba, raised money at a $32 million valuation in 2011. never need go back to the private markets until it went public because the business was turning up so much cash that they didn't need to. the fact that the company is going back to the well over and over again, does that tell you about the availability of money? or the need to support the business model with additional capital? >> well certainly, it says something about the availability of money. they can get it closed the money's there. i would say, though in alibaba's case they were aiming and still aiming to be the amazon of china. and they're the lead dog there. so if you think about the soon to be largest economy emerging with an amazon-like opportunity, that's a big opportunity. similarly, with uber.
you know, it's not just a limo company. potentially, i mean our economy is about 10% automotive-driven. if we reduce the need for cars by 20%, 30%, we're talking about trillions of dollars in value migrating to a firm like uber. >> so, walter i know we've been taking all of this in i'm curious how you're thinking through the relative benefits of uber being public versus private and continuing to raise capital at higher valuations? >> first off, you have to look at it in historic terms. what uber is doing is transforming not just the taxicab industry. but the way we work. the now ubers of this the ubers of that. it starts forring the way cities operate. and as somebody just said you're talking about a trillion dollars that's going to move
away from an automaticotive-based companies to how things get things on demand. i find uber to be the most transformative concept in the daily economics in the past five or six years. so i think it's huge. and obviously, costs a lot more. it's not like starting up a facebook even. meaning they it pay out a lot. they have more revenues the revenue department raich yoshgstios. they're not making profits but they're starting to make revenue. it keeping you regulated. by the way, travis has read the biographies probably all of them, of steve jobs. >> we've got to blame you. we've got to go. in a word valuation of $50 billion you don't think that's evidence of some bubble? >> at 120 times revenue,
investors are paying a few years up for value. so a lot of things are going to have to go wait for the next two, three, four five years, even if you're growing at 400% a year, you're paying 120 times revenue. so a lot of things are going to have to go late. but the nice part about the structure is a preferred structure. every venture structure is preferred. so that means, essentially, uber if they raise $2 billion at this valuation. if uber sold tomorrow for $3 billion, what's often untold in the media is investors get all their money back. the common shareholders that's why it's a whole other topic, but that's like -- so you get -- it's money good. but you have an option if they are half as successful as they think they are it could be a big win. >> we'll bring you back. we've got to talk about it. >> absolutely. >> no i love it.
steve brotman, managing on uber. mary thompson. >> hi there, the stock down 9% in after-hours trading. this is a company in web hosting and cloud management. the company's earnings were pretty much in line with expectations but the company loader it's margin guns for the second quarter. expecting the margins to be 34 to 34%. that's down to 36%. it's revenue growth between 1.5% to 2.5%. wall street was looking for 14%. a hit on that guidance. back to you, kelly. >> mary thank you. it was supposed to be the key to safer roads. and now driving around in those cars in california have now
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no managers no problem, right? that's what zappos' ceo issued a memo explaining that zappos is adopting a holacracy. he gave them an option of taking a severance check, they did and they left. now the chinese group thousand with now with a paid holiday in france. which management style do we prefer. steve, welcome to the program. >> great to be here. >> what do you think of this tony shea move. would you adopt a holacracy? >> i know tony shea i've been to the headquarters and seen the innovation, if anyone can pull it off, tony can.
this is an interesting company that has reinvented shoes. they invent vented how work is done. they have the severance. he said if you're not happy, take the severance, leave. he's trying to get the best and brightest who innovate on their own. we used to call it self-directed work teams and we would do it in r & d settings. it was effective for a limited period. this will be the first time it will be taken across the organization. it will be interesting to see if it would. >> in other words, we need to develop some technology we need to fix x, y, d, here's your task accomplish it. how does it work with day-to-day workforce management? >> well this idea was invented in the 1970s to some excellent, in silicon valley, one of the great innovations at the time
was not just the micro chip or the personal deputy but when intel decided to have one open case. and when an employee came to bob noyes. what's the innovation chart, noyes said here it is you're in the middle. here's everybody else. you have a dotted line. work towards the mission. that works okay when you say, okay our mission is to create -- make sure the law works. it's cool in a site over zappos a case with a woman calling up and wanted a refund because her husband just died. she just bought the boots. the salesperson says fine and then sends flowers to the funeral. you don't also want a lack of
standardization that it depends on who you call and who you get. so i think it's like when you go into an airline or a hotel, do you want an empowered workforce, or do you also want to know what you're getting when you are getting it? >> steve, what do you think about this chinese company sending everybody to france? is that a better way to align incentives across the workforce? >> can you imagine what the french thought when they saw 6400 people coming off in uniforms and hats coming off of 84 planes. they probably thought it was an invasion. it's a great pr ploy. it's great for employee happiness. but this is a group in china that is all about tourism and trade. they're getting tremendous amount of press on this around the world. look. i think these kind of experiments are necessary. i'm glad people are trying it. i don't know how widely you can do these kinds of things but it's really important that people do these things.
>> we encourage our own bosses to try with the france thing. real quick, walter. >> yeah, that's great that the company is doing it. they don't pay a salary to most of their workers. they're just on sales commission. you got to look at the whole country or holacracy, as we would say, just because you get the trip doesn't mean if you're not paying a base salary to people, that part of the company, you know we should be skeptical of-these things. >> and that's a pretty common one across commission-driven workplaces we have "cnbc news update" to get to with morgan brennan. >> hey, kelly, the white house is dismissing that president obama misled about how the u.s. kill osama bin laden. >> obama white house is not the only one to observe that the story is riddled with
inaccuracies and outright falsehoods. the former deputy director of the cia, mike morell, has said that every sentence was wrong. >> meanwhile, a panel of independent experts says the world health organization and the national community failed in their response to the worst outbreak of ebola ever recorded. the news conference held two days after liberia was declared free from the virus. and the wrecked cruise liner, costa concordia is on its way. lastly wrigley field bleacher creatures will be back in force for the cubs game tonight. they're ready to make the season debut. the right field bleachers will be finished in another month. that's it for the "cnbc news
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welcome back. since september, for the nearly 50 driverless cars on the roads in california have gotten into accidents. each time the car is reportedly going around 10 miles per hour. for more on this it just makes a better case for old-fashioned cars. let's bring in richard rawlings. the star of discovery's fast n loud." let's get on the news of the driverless cars. have you ever encountered one of these either in testing on or the road? >> you know i still haven't. i think it's an interesting ideology. it might work in some arenas but i think america is built on the freedom we have in a car, being able to get in and go and the power and actually gripping the wheel. i think it has its uses but i
don't think hot rods are going away anytime soon. >> it probably gets more attractive when people say, wait a minute look what they used to drive out there. but cars have become driverless already. you have cruise control and these features that take a lot of the decisions out of the hands the driver anyway. it seems as if we're inevitably going in that direction. do you think that's a mistake? >> oh no i don't think it's a mistake at all. i agree with your comment that it's going to make the hot rods even more wanted. sure i got in my car and drank my latte, but i can't wait to get home and drive my car. >> and the higher tech the cars get do you pass that along? does it loose its ability to become an investment because it's always changes? >> no you really do the investment quality of keeping a car is just as cool as take an
older-style car and putting all the cool gadgets in it. imagine riding around in a '69 that's driverless. >> there are some people that pick a car with which one best connects to the iphone. the guts of the car, the experience may become more reliant on apple or somebody down the road. and one of the worries is they become the quote/unquote dumb boss. >> once that old style, that car that makes more noise, fast n loud, if you will. >> yeah. >> you can roll down the windows, have a good time turn up the radio, all of that stuff. but i think of the actual act of doing is more fun than telling the car to do that. >> do you have a car, dan? >> i have my dad's car. my dad in 1956 got a pontiac lemans, he's since passed away. i have that car.
the underlying point here lost in the whole discussion about gadgets, that's where this is going. the actual act of driving. my car is stick. i like getting in the car. i like getting in the highway. god bless my father it's a convertible. that is something to some degree is never going to get lost. and where the car companies of the future are going to succeed is threading those two needles. give me a car with all the gadgets but one quote/unquote fastest. >> walter which car do you drive? >> i grew up driving a chevy and a point. we have a volvo now. i'm a big fan of richard's? >> walter how do you go from those cars to a volvo? and what is 30 years ago saying to you now? >> i got married. >> he didn't know what to tell his wife. >> acura. >> let me ask richard, a question. you know steve jobs' dad, somebody who bought cars like you did when you were young.
reconfigured them and sold them for a profit. i think you had like the mercury comet ones and the chevy some growing up. when i was growing up i loved opening the hood. fixing the spark plugs, tuning it up. playing we the carburetors. nowadays, it's like computers, you don't get to break them apart. you don't get to take out the tubes or the transisters or tuning up the car. >> i really don't think so there's two schools of thought there. it used to be air fuel and fire and you're good to go. it still is basically the same principle, because it's a combustible automobile. just like you learned to work on the computers and what have you, you can test them and do cool stuff. the cars of today, they're
basically like an iphone. you get in there and get somebody tech savvy and start unlocking that you can increase speed and torque. >> that's the now way of tinkering with them. >> that's right. that's the new hodt rod. >> we know the gas monkey is the one to match or the book "fast n loud," blood, sweat and tears. >> glad to be here. olive garden is taking a page out of the subway playbook. that's heating up the cnbc hot list. ellen rosin will have that next. and there's a new stock exchanges. >> listen to me buy alibaba. and spin my planet buy it. >> that was the clean version. ari gold will join us live. we're back in two.
bond real estate and bread sticks. sounds like the start of a new business. it's the line for today's "hot list." allen brings that to you now. >> hi kelly. it's unusual day when you say the bond market is the big pull. but the bond market is the big pull with the spike we've seen on the 30-year notes. diana olick wrote up her wonderful piece about crowd funding that facility in d.c. and now it's letting individual
investors get into the real estate market. and good news for all of the olive garden bread sticks they're going to make sandwiches out of them. chicken parm the bread sticks were the best thing there. so they're making that. >> i love those bread sticks. you may recognize him as a movie, vincent chase say former agent. now television's favorite agent. ari gold joins us live on the new york stock exchange. giving us his rules to live by. stay with us. financial noise financial noise
well our next guest is known as one of the master deal makers of the entertainment and film industry. he's ari gold. and now the former hollywood agent is out with a tell all book sharing his secrets and advice on how to be as successful as he is. it's called "the gold standard rules to live by." ari gold joins you now. this is all about your time as a hollywood agent. >> it's calls rules to rule by. you can indeed rule.
thank you. they wanted me to give you, publisher, hackett, 18 different rules to rule by. i had 118 rules so i have chase, ari. >> let's cut it to. >> what is rule football one? >> first of all, there is no number two. if it's number two, are you losing. you don't have any power until have you all the of the power. you know what i'm saying? >> i get you. you don't have any power until you are have all the power. happy ness can't buy money. tell the important part of the truth, few don't have enemies, get some. >> can i say tell the important part ott truth is a rule that everybody should live by. if you haven't mastered how to tell the important parts of the truth, you haven't mastered anything, is that fair to say? >> you can't embrace fear of confrontation. you seem like a man and you slept your way through the middle. >> i appreciate you noticing that. >> i want to jump in to that
conversation line and ask there is a part in the book where you talk about the importance of telling a good story. i thought that was really interesting. >> well, when you are in a social situation and you have something, it's like you are giving them a gift. you know i was i happened to have been hunting down bears with hugh jackman. we took the skin and made ponchos out of it. as we were taking off in a rocket. we used those, whatever the story may be. >> that is giving them everyone around you a gift. so that they remember you want to make your mark. have that moment crystallize an event. let them know about it. then you also have to know when to leave the party. >> that is almost the most important start. you don't to overstay your welcome. sorry. >> does every deal maker need someone else to make you look good? >> listen i gave lloyd a lot of
tough love. he was a gay asian assistant who feed to progress and i crushed him and the reality is he came back stronger and now is living the dream thanks to my tough love some it was a gift that i gave him. >> there are a lot of people who you say don't appreciate doing a lot of good work even in the mail room why is that critical? >> in this day and age, everyone is looking for a cut, everyone is an instagram star. they're not contributing to society. everyone that worked for me as an agent had to have a college degree. now i'm running a studio and by the way, my first order of business running that studio was to give vinnie chase a job and true to everything that he's ever been a part of he wanted to also direct.
i am taking a chance. you can't win if you don't shoot. >> speaking of this you lived your whole life to get where you are. hold the book okay. >> by the way, why else would i be here? >> i thought it was. >> here on takes? it's eight at the gold house. i should be home punishing my wife. stay with me stay focused all of you. look at her. >> i think you have a question dan. >> you got where you are, everybody can appreciate that. speakingle of reality stars, celebrities the internet and all that nonsense. when you look at those people today, do you resent them? do you think they will fade out and go away? >> i think to give the energy away from my being to resent them is too much. >> you are too much for that? >> yes. >> can you talk about your wealth ari, how much are you worth and did the money come from public stock investments? >> listen it's public knowledge, mrs. ari, she doesn't have a first name. she's mrs. ari, melissa gold has
a great deal of money. i was lucky enough to mary na that. that being said i haven't touched penny of it. we just came back from the amalfi coast, i have this bronze look because i would be clean shaven if i was doing many i. >> for a real show? >> a real show. >> yes, good. stockmarket,ee owe. >> by the way, i want to say, you are welcome. >> thank you, ari. stockmarket, yay, love it hate it, lose it leave it? >> i love it. i love all of the energy heres. everyone is completely focused on getting ahead and winning. i think had a taken another path i would have been grinding it out on the floor. >> probably with the top guy. >> i would have been doing my thing and probably taking a victory lap at this moment with warren buffet. >> we are auto of time unless you wanted to squeeze in right here. >> not much. >> while let you off the hook.
walter, thank you. >> thank you walter for contributing. >> which is maybe not up to the par of walter's books, we suggest you check it out nonetheless, we call it the gold standard rules to rule by. you can see ari gold up in the entourage movie coming up u out in theatres. retail sales and important inflation reads the panel will give their take on those and what else they're watching after the break. car that drives you... ...and takes the wheel right from your very hands... ...this isn't that car. the first and only car with direct adaptive steering. ♪ the 328 horsepower q50 from infiniti. when a moment spontaneously turns romantic why pause to take a pill?
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welcome back. time now for final thoughts with the panel. if we can sort out reality from fiction here. that was ari gold the character from "entourage." for those familiar with the series or not. maybe not, walter. listen, let's talk about final thoughts. earnings season is coming up is it on the hot list if it has potential? >> this these types of swings in something as boring as the bobbled market should be it will garner attention, it's flipped over to the united states, obviously, it's going to make further headlines, that's what will happen. >> i will be digesting all the
things i learned about dan this hour. it's a little troubling. >> it's the tip of the iceberg. i'm deeper than that. >> in all seriousness, i am always watching the financials, in particular this week. when you have yields rising usually those stocks go up. there is a potential to get foreign exchange manipulation this week. with a couple guilty pleas in the works. you could see serious volatility there. >> i'm still thinking of your comment about the u.s. economy and how important uber will be. how much would you suggest for people buying this place? >> you look at uber they're doing great. google are doing driverless cars and google map. i this i the combination of big data, matching application, self driving cars and the new economy that can allow workers and people who need to works to hook up on demand rather than being a part of the company.
>> i love it. >> walter thanks, for your time as always kayla, thank you preshl it. "fast money" is coming up in moernlgs melissa lee what's on tap? >> i want to know what ari gold has against jeremy piven? we have suntrust ahead of that earnings disaster. we got him on. >> very closely watched move that one. can't way. over to you guys. "fast money" starts right now. overlooking new york city's time's square i'm melissa lee. tim seymour, dana jerrian, steve grass so, why stocks will go 1 trillion sooner than you think. >> that analyst will join us in our call of the dauda. first, while are you worried about the late-day the next great trade could be taking place as we speak. an under cover rally, morgan