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tv   Closing Bell  CNBC  June 21, 2017 3:00pm-5:01pm EDT

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apple should buy next. we will make the case tonight. we'll name that name tonight >> how about they make icloud e-mail better. >> or siri >> buy gmail >> thanks for watching "power lunch. "closing bell" starts right now. >> does anybody on december 21st say yes, it's the first day of winter >> i'm glad because i feel like i haven't taken full advantage of the season yet, i've got to go -- >> we've had a lot of rain you have to go to cape cod this weekend. >> it's a good cause, bachelorette party but the traffic is going to be -- >> i'm going right into the heart of the storm here. >> we have a storm coming? >> welcome to the "closing bell"
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everybody, i'm kelly evans right here i'm here at the stock exchange weather central or something i'm bill griffith, energy still -- this is kind of a catchy tune, isn't it? energy weighing on the market yet again today. oil to a ten month low, you is that true earlier, health care has been a big winner today with a number of biotech stocks pushing that index higher. we're going to have more on what's behind the moves coming up here. >> take a look at footlocker today. it could become the latest amazon victim. nike is getting closer to selling on amazon. another retailer should be worried with foot locker down 5% which one is it? you've heard this story, this is unbelievable george clooney selling his tequila business for $1 billion. jeff cohen sitting here next to me he can't believe this. we have a special report on why tequila sales are so hot right now. >> it's only 700 million up
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front. >> oh, well, okay. >> the 300 -- that'll come down the road if they sit certain targets. >> this reminds me, griffin was known as a lounge singer, but he created jeopardy and -- >> which reminded when we watch it >> wheel of fortune. and he made -- that's where he made his money george clooney just made his big money in tequila here. >> we begin though with the big corporate shake-up of the day. uber ceo travis, in case you hadn't heard by now, is stepping down that adds to the list of vacant sis at the ride-hailing company. here's how he described his role back about two years ago >> i'll be the first to admit
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i'm not perfect and neither is this company like everyone else we make mistakes, but at uber we are passionate about learning from them. >> did you see that list of positions that are open right now. cfo, coo, chief marketing officer, general council, dan is with us today from axios and jeff cohen from elevate partners, a leadership development firm is with us here at post money. you sort of saw this coming? >> i did
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>> who's the person that could right the ship but also keep them going in a hypercompetitive environment. is that person sheryl sandberg >> she would make sense, right she has silicon valley credibility, she's a woman, she's been involved in a big public company, that's a part of this, uber does want to be a public company it would behoove it to have a public ceo and finally, good network and would be able to recruit you have that list up there of all the empty spaces the biggest job is filling those positions. >> right now i can hear karen
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swisher yelling at the television screen saying it's not going to happen here is this -- >> but, but sheryl did -- can i say -- >> go ahead, dan. >> it's the sort of job that doesn't make sense, except it didn't make sense when travis was there. right now it's a clean ship. it's been 24 hours she'd be able to create her own shop >> is this a classic case, jeff, of just an entrepreneur who can't make the transition to running a company that he helped found? >> i think so. you know, it's, venture capitalist talk about the ability of the company of the scale, but at the same time, you actually need for the ceo to be able to scale as well. so, while he had, you know, some ir rev rans for sure in vision and passion when he came in which probably appealed to bill and the other venture capitalists, there comes a point when you actually need to grow up a little bit. and you need to develop aforementioned soft skills like the empathy and understand what it makes to run a big company. so i just don't think he was
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unfortunately able to pivot and scale like he should have. >> when uber announced they're going to allow tipping, it made other changes important here and may turn off customers it talks about how now they're going to charge you after two minutes instead of five, if you cancer al ride, how they're going to charge you by the nin they're waiting more than a couple minutes things like that look, they don't have unlimited funding, especially in they want to go public they have to make it look good and it's super competitive for everyone eating their lunch. they have to charge ahead in this environment, and how are they going to do that? >> they do and the tipping is the most interesting to me, if only because -- it was a philosophical reason, travis layed it out in the white paper a couple years ago the one thing though is we've been talking about these problems at uber for the past four months or so. the company itself, in terms of the riders coming in the revenue from the reporting, it's been doing fine the company is not hurting actually on the ground, it is hurting at the headquarters and
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it's getting slammed by people like us, but in general, it's doing okay, and it's still by far, in the u.s. at least, by far the market leader. >> before we go, very quickly. do you think this delays the ipo speaking of that you know those investors that sent that letter, they hear the clock ticking, and they want to cash out at some point on this thing, right >> it depends who they get it's going to be a very tough search you need somebody that understands the financial markets. you need somebody that understands the politics of each market that they're in, you need somebody that can actually change the culture, but i think if you can get someone savvy, it's the opportunity of a lifetime for the right ceo i think a lot of people will be lining up. >> all right jeff cohen, dan premac, good to see you. thank you for joining us both today. i'm sure we'll talk more about this let's get to the market for this day right now the dow is down 49 points, you heard earlier that oil continued lower. hit 42 and change, right, right where it is right now. let's talk about all of this eric marshall's with us.
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portfolio manager of the hodges fund, he's out there on the floor somewhere, and rick santelli is in chicago steve, you're been talking about lower oil, it's happening. how much lower and why isn't it taking the rest of the market with it right now do you think >> i think the break evens have come down. efficiencies through a lot of the companies, a lot of large integrated names, i think that's a good thing overall i do believe that it was a telegraph punch that we saw from the ipo that's coming down the pike since when do the saudis to want share in the wealth. i thought that was telegraphed movement in the direction of oil. if you look at global growth, that's probably a telegraph punch as well. and i think, you see this run-up that we've had in tech this run-up we've had in every sector, except for energy and financials, keeps a hopeful eye on pro growth policies
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normally they give up 30 seats the demes only need 24, maybe it's pro growth policies that shorts don't want to get in the way of >> eric, what about you, i see you have a couple names here in the market environment how would you describe the landscape and what are those ideas? >> you've had more defensive areas of the market do well, and republican the momentum high multiple stocks do extremely well on the other side and looking ahead, we think the most important thing for the market to broaden out right here is really seeing good earnings growth in the remainder of the year we think it's continue here in the second quarter when the results come out in a few weeks. and we still think you can find good opportunities and financials, some of those stocks, pockets of consumer
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discretionary and technology there's still some opportunities out there. even though a lot of those areas have lagged the market so far this year. >> we're showing tower semimy and eagle materials there, you know, briefly speak about why, but tower in the semimyspace, why do you think that's interesting? >> well, we think that there's a lot of leverage in their business, they basically operate semiconductor foundries. and their customers are fabulous semiconductors we think we're in an early stages of growth in the internet of things. we think the cycle here for their business is much longer than previous cycles because of the landscape for semiconductors has changed. and that stock is trading at less than ten times what we think their earnings are going to be two years from now
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they're getting beaten up and we take advantage of it here. >> that's one of those, somebody's got to do it kind of companies. hey rick, we talked about coming out of washington, what that would do to the yield curve and things, and growth in the economy, but if the price of oil continues lower, does that complicate the fed's ability to raise rates down the road, do you think? >> based on everything we've seen thus far in the market response, i would say no, it was a work in progress listen, we all reck the first time we had the big nose do i have in oil, and it had big repercussions in the financing end of the fracking game and much of the money side of the equation and high yield. we all remember that and this time, if you look at the hyg or you look at some of the spreads, there is some widening going on, the hyg is getting a little choppier to the downside, but it's a far cry from the impact that we saw the
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last time, so i do think that every phase we go through with energy, i agree with steve grass, the break evens are lower, some of the financing issues over time clean up and end up in stronger hands i still say, net net, that dropping energy prices in the u.s. partially responsible and how much of our own energy we're using, what lng we can export. these are all big dynamics for positive change and for our economy, but they're not going to be immediate. to answer your question right now, there are some who say the 30 years acting a little bit soft, maybe it's energy, i mean, i can't connect those two dots at this point. >> all right, very good, guys, got to gob thank you all three of you thank you for joining us today >> about 45 minutes to go. dow's down 45 points today s&p is only down about a point here nasdaq is positive by 42, some big differentiation there and the russ sl down about a fifth of a percent >> coming up next here, we'll talk about that move that nike
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could be gearing up for that's already sending shares of underarmor and footlocker lower. actor george clooney just sold his tequila business far bundle you're watching cnbc, first in business worldwide when this bell rings... starts a chain reaction... ...that's heard throughout the connected business world. at&t network security helps protect business, from the largest financial markets to the smallest transactions, by sensing cyber-attacks in near real time and automatically deploying countermeasures. keeping the world of business connected and protected. that's the power of and.
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up after a goldman note suggesting that company is close to selling products directly on amazon currently sells subsidiary, but it's products on available on amazon through third party dealers. nike rival underarmor already selling on amazon. >> there's an underarmor store on amazon. check out the sporting goods retailers, dick's, footlocker, finishline, they're all down big declines here. so what might this direct relationship with amazon mean for nike we bring in liz dunn, a pro forma to talk about that there's the question what difference does it make that they're not selling through third parties that they would sell it directly on amazon >> i think it makes absolutely a
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ton of sense for nike. selling directly to amazon allows it to control it's brand imagery, you referenced underarmor, the fact that they have their own brand landing page it's very organized. and brand appropriate. so this will allow nike to do that and i think it'll also be more profitable than selling, you know, some of those wholesale relationships, those third party relationships that end up selling on amazon. >> i wonder if it was telegraphed to some extent when they announced the layoffs, might have been early last week, they talked about sort of bolstering their director consumer business. it feels like whether it's consummated with amazon or not, it's hard to imagine it wouldn't be at some point this is an area of interest for them is there any reason they would stay off of amazon could their deals with existing retailers for something, would that pressure them >> i'm sure it's a point of conversation around the, you know, the conference room table at nike. nike is a very innovative forward-thinking company they've aligned themselves with more of a tech mentality than a consumer mentality
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if i scan the list of consumer companies, nike is very much, you know, forward-thinking and at the forefront of things so i think that it makes absolute sense for them to align themselves with, you know, the biggest, the most growth in the industry, amazon is obviously growing. i think there was a point where a lot of brands were hesitant to sell directly to amazon, but what amazon has been touting and what i think nike is realizing, it can be very supportive of the overall ecosystem for the brand. it's tough, tough break for some of the retailers that sell nike. >> yeah, i was just going to say, so, we see those other retailers, the sporting goods retailers down 4 and 5% today, does that mean the market is suggesting that they see cannibalism, in other words, if consumers are going to amazon and buy a nike product, where they otherwise would have gone to a sporting goods store. >> i think there's a little bit of that. sfernl you're on kind of a replenishment business, if you're a runner, i order the same running shoes every three to four months -- >> same. >> sort of on repeat and i order
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them from amazon they're not nike -- >> what are they >> i don't want to get into that >> it a -- >> you replenish your running shoes every three to four months. >> i do too. and i go for the cheapest, whatever whacky color combination to get the size 11s. >> i wear the brooks reserena. it's kind of an old man running shoe >> it's a warren buffett company, it's a great company. >> but nonetheless, if you have that kind of replenishment business, ting lends it to that. also, if you think about, like dick's for instance, how many families already have, you know, two, three, or more amazon deliveries coming to their house every, you know, every week? >> i see this now, instead of the tide button, right there's going to be the shoe button for liz and for kelly it's time to reorder your next shoe right? you hit the button, and it arrives by -- >> they should know. there should be technology to say your soles are wearing down. it's time to get new ones. >> shoe arrives by drone in the
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next hour. thank you, liz. >> thanks for having me. >> liz dunn from pro forma joining us here. tomorrow on closing bell, goldman sachs president and co-chief operating officer harvey schwartz will be joining us we are looking forward to it you don't to want miss that tomorrow right about this time on "closing bell." coming up here, why bioteches are on pace for the best week of the year. up next though, i don't know what i'm more surprised about, that chuny had a tequila company -- >> four years after starting >> only four years old we'll talk the tequila dreams of george clooney coming up
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[ pop ] despicable me 3. rated pg. it looks like oscar winner george clooney has the mightest touch when it comes to tequila does he ever landon dowdy has the story for us, landon >> george clooney is selling his tequila company for up to $1 billion. he will initially pay $700 million with the potential for another 300 million, based on the tequila's performance so for ten years, clooney and co-owner randy gerber and michael meldman are expected to stay with the company after his acquisition. clooney said quote, if you ask us four years ago if we had a billion dollar company, i don't think we would have said yes, this reflects the belief in our company and our belief in him.
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but, we're not going anywhere. we'll still be very much a part of it, starting with a shot tonight. maybe two. the deal is expected to close in the second half of the 2017. he doesn't expect to add to earnings until it's fourth year. this comes as tequila sales are on the rise. according to alcohol research group, iwsr, tequila volume grew by 7.4% last year, and it is the market leader in spirits, in fact, back in 2014, he acquired another tequila brand, and more than $400 million from others in exchange for it's bush mills whisky brand tequila is hot and he is betting big. >> okay. everybody who reads page six knows that randy gerber is cindy crawford's husband and the story goes, i was just reading that the gerbers and george clooney -- >> have house next to each other. >> they bought -- yeah, they built homes in mexico together, and they wanted
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half hour to go in the session i'm talking about some sectors like health care that you think are well-positioned right now. >> yeah, number one performing sector today, and it's gotten to be the best performing sector this year. truly a huge move in the last couple of months here's a picture of the xlv. here's the common etf for the sector what's interesting, the sector was in sideways consolidation for almost two years up until about three weeks ago, we finally broke out above that level. this is a broad-based move equal weight health care has done well. it's not just a one day move, it's not just a short term trade, this is something that has a little bit of legs,
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pharmas, medical devices -- >> it's still unusual to have a market where it's one of the leadership sectors i guess it's just the other obvious leadership one is this the kind of move that takes the market with us >> it's taken the place of tech. we've seen that sign of tech wobbling a bit, so it's been great to have sectors like health care to step in and pick up the slack another thing i'll mention, one of the most bearish times of year a lot of times the market does experience reversion, health care traditionally does well as a defensive sector this is a sector not only a good risk/reward, literally just broken out recently, but it has defensive qualities and it's probably better risk/reward looking at health care than owning technology at this point. >> i'm trying to work that out in roman numerals. it's like 45 maybe bear, yeah, oh mark, thank you so much. mark newton, bill. >> all right
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time now far cnbc news update with contessa brewer, hey. >> here's what's happening right now, jared kushner is in jerusalem for a day long visit and restarting israeli palestinian peace talks and also meet with palestinian president. army sergeant beau bergdahl arrived at court this morning for the pretrial hearing he's accused of endangering while walking off his post in afghanistan in 2009. he's scheduled to go on trial in october on charges of december sergs. recalling 207,000 infant car seats because the chest clip can break and cause a checking hazard christies offering a number of memorabilia from the estate of former first lady jackie kennedy. it's part of christie's rare watches in the new york sale today. the former first lady wore this tank watch for many years, it was a gift from her
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brother-in-law, in 1963, that's the cnbc news update that the hour, bill >> thank you, contessa see you later on nightly business report tonight. >> okay. >> look forward to that. $55 million later, there is a winner in georgia in the most expensive congressional race ever the gop added to their house majority with a win in yesterday's special election in georgia to fill the seat formerly held by now secretary of health and human services, tom price. republican karen handel defeated her opponent, the democrat jon ossoff by a margin of 52-48% ossoff tried to turn the election into a referendum on president trump and the gop's national agenda while handel sought to localize the election by campaigning on her record serving as georgia's secretary of state biotech's was just talking about are on pace for their best week of the year that could continue if the reports are true about president trump's new approach to drug
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pricing, meg is here with what we may be hearing at the white house. >> biopic stocks by a report that a executive order from the trump administration on drug prices might not be as ownerous. my sources as well as reports from the "new york times," last week from politico and kizer health news indicate that the trump administration isn't working on measures like government regulation and prescription drug prices rather policies look to focus on enabling things like value-based pricing considered more constructive by the drug industry now the "new york times" obtained a copy of four page draft of an executive order saying proposals identify issues like high out of pocket costs for medicines, but largely focus on policies championed by the drug industry, including measures to strengthen intellectual property protection and foreign markets. and already the backlash is coming representatives elijah cummings and peter welsh wrote a letter to take on the drug industry
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saying, quote, your statements and promises gave many of us hope, your planned actions suggest that you have abandoned these promises in favor of the very pharmaceutical lobby you warned of. now one risk rally i'm told is that the president could react to reports that his approach is soft on the drug industry which of course he once said was getting away with murder sources tell me the administration may be waiting until after the senate votes on health care to release any policy on drug pricing, things could still change for now biotech up 3.# % rallying on hopes this may not be as bad as they once fired >> i was just going to say, i think the health care bill is what we need to watch carefully to see what's in that. if we get many details, we may just get bullet points, but we may get a sense for what we're planning, don't you think? >> i haven't heard there's anything potentially tied to health reform that could affect drug pricing it seems like this is something they're considering separately of course the fda has taken some
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moves to try to increase competition, particularly among generics to bring the prices down, but it does sound like the drug pricing executive order that we're hearing about last week won't be tied to health reform, but maybe hear about it after the senate comes to a vote >> all right thanks, meg. always good to see you >> you too meg terrell. 25 minutes left with the dow down 58 points shares of lazee boy are coming up it's the 20th anniversary of the listing on the new york stock exchange we're going to talk about what's ahead for the financial company and why they say it was bnttoe the we chat of banks right after this
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welcome back, let's check out some of the market movers today. mentioned laz-y-boy. they're revenue they also reported the 16th consecutive quarter of gross margin expansion. >> wow >> isn't in a crazy? pricing power. red hat is higher as well today. raised to 115 dollars to 83, it's trading on 98 right now
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it comes on the heels of the quarterly earnings and revenue beat, red hat also increased it's outlook for the current fiscal year. >> not too shabby. >> up almost 10% right now >> celebrating it's listings 20th anniversary today the stocks up more than 40% over the past year and firm's latest post, it aims to become the we chat of banks. joining us now is ralph palmers, he's the ceo of ing group. welcome to you >> good to see you >> um, a lot of people know ing, that's right, get the best rate. because you guyed had pioneered the model. has the model, you know, has the financial space caught up with you and what is the next chapter of innovation and where you're investing today? >> basically what you see is that on the back of the internet, revolution, we were able to actually build business out of it. most banks would deliver an incident experience, but we actually build businesses around the internet which is the other
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way around we have been very successful with that. now with the mobile revolution, the digital revolution really, it's next stage. we're doing exactly that, but what we see now is the internet revolution, can still play a role in the connection between banks and the consumers. but the digital revolution is completely different probably even more in the banking products and consumers don't actually come to branches anymore. they don't have time to do their finances it's nobody's hobby actually to do their finances, not even mine
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how do you reach them? the first one is to build an co. system yourself. and the other one is to make sure you have a strong brand so that once they are on an ecosystem like that and have to make a payment or need banking services, the thing of ing, and they will actually go to the connection in the ecosystem to us >> look at what is happening today, apple just announced it'll do payments within i message. what they've done, they've
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builden ecosystem of ourselves the ecosystems we're talking about are multiproduct, multiservice ecosystems. and banking is just a part of it very it's a hidden part of it. the payment is nothing special, right. you want to build an ecosystem for yourself, people need to be drawn to it, so you want to go to place for financial services, you can't do that if bring your own services that ecosystem that we're going to build and that we're building has to be open open to third party providers -- >> you could be a marketplace. >> exactly
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that's what they're looking at we're a digital and germany we're at the zero branches and 8 million customers. that's a model a lot of competitors are looking at nobody has built it as a model per se they see it as an add on but what i think is different training going forward you make thing vs., very easy. and that you show that you open other players on your ecosystem. >> it's offering to 1.2% from 1.0 something and it was huge news especially with the long end not going anywhere, how are you guys looking to differentiate yourself is that still going to be your bread and butter you can come to it kept coming
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in because of the superior service. basically we thought they were coming in because of pricing, but they actually came in because it's so much easier to bank with us and that is what is in a place where and needs to be different. >> ralph is the c over ing group joining us here at post nine. >> and we have 15 minutes left until the bell is going to ring. s&p just down a point.
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nasdaq is up 45, it's three quarters of 1% day >> our colleague david favor's interview delivered headlines ranging from jack's prediction of a four hour workday to humans beating artificial intelligence in a third world war, but what about his company? alibaba, oh yeah, should the stock be in your portfolio iba mi udeten bear ba o alabcongp. (dance music) (large boat honking) ♪ i'm living that yacht life life life life ♪ top speed fifty knots life ♪ on the caribbean seas ♪ it's a champagne and models potpourri ♪ on my yacht made of cuban mahogany ♪ gany, gany, gany ♪ watch this welcome to holiday inn!
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across our entire network, to more companies, in more locations, than centurylink. we do business where you do business. ♪ ♪ but we are down 5 # 53 points right now on doubt. meantime, shares of alibaba have been red hot they're up 3% today, but up 61%, year to date >> just about matches their revenue growth >> unbelievable. alibaba's executive chairman jack moss spoke at the gateway conference in detroit yesterday,
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and talked about his plans for growth, listen >> by year 2036, we tried to view a economy that the world fifth largest economy, last year, we're ranking number 21 and next to the years we want to be the fix in the fifth largest economy, we want to support two billion consumers. we to want create a hundred million jobs for the world we want support ten million business, be profitable on our platform >> won't be able to keep up in the space, joining us now, and chris johnson from johnson research all right. ross, you're our bear on alibaba actually let's begin with you, they affect part of the space in many ways, why aren't you optimistic on alibaba's future? >> well, i am optimistic per se,
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i think the issue is really simple they have no competition he is coming to detroit saying i am going to connect you all to the chinese consumers, i'm going to be the fifth largest economy in the world it's easy when you're not playing by the same rules as anybody else is the stock still a good value in your view it must be >> value is a perception of the market, bill, and what we always look at is the sentiment of the market, and quite frankly, we love it when there is negative sentiment out there like ross is
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telling us right now this is one of those companies if you look over the last 12 months, it's up 75%, the analysts are a little bullish on it, when you look at it. the average price target is around $130, so they're now adjusting the price targets higher more importantly, the traders, when we look at short interest on it, there is a concert of involving door i'll kind of pander to it and say i'm going to call it the great wall of worry. this is a stock that is fumed by sentiment that is bearish, and it's going to continue to go higher as the market continues to turn more bullish right now our price target is well above 160 for the year. >> right >> alibaba is 143, ross. >> i don't think the market's bearish on baa baa that's why it's up 75% and, you know, to be fair. we do own it through the indexes. we were very bullish on china and we're bullish on alibaba's competitors like ten cent and
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others and i think it's important to understand here that all it takes is one tweet from you know who, to say, hey, this isn't fair when does amazon get to sell in had china, and baba stock dropped 25%. let's be real. let's be real. i think it's fornt keep in mind here and if that protection comes off and i'm telling you, it's totally unfair business, what happens here versus what happens there. and this is exactly the kind of thing that trump should be working on he's all talk, blah, blah, blah, do something about alibaba >> hey chris, what about msci yesterday adding, announcing they're going to add chinese shares i know baba's trades are over here anyway. it'll open up theoretically. this is something that chinese
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regulators have been waiting for for a while. could there be a halo? does this play into it >> i believe it will, yeah >> absolutely. i believe it will. i think it opens up a little bit more to alibaba. you know, there's been so many things out there, headline wise, that have brought down alibaba over the years whether it was economy in china, slowing down et cetera, et cetera, but the bottom line, and ross is correct, it's a little bit unfair, but i don't see it coming to an end any time in the near future. the bottom line is they continue to show that revenue growth, and there is a lot of pessimism towards a company when you look at this though, it is one of the strongest performers in the big sector right now i mean, it's well above it's 50, 200 day moving averages, if this stock pulls back to 130, 135, you're going to find all the people that have been sitting on the sidelinings waiting to get into alibaba buying those shares up i'd love to see a pull back a little bit now this is a stock again that is
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just being driven higher by that wall of worry. >> all right we've got to go guys, thank you both ross and chris johnson telecom is taking it's u.s. cable subsidiary to the ipo market owbol tell you what you need to kn aut that offering you're watching cnbc, first in business worldwide we are survivors. we are survivors. and now we take brilinta. for people who've been hospitalized for a heart attack. we take brilinta with a baby aspirin. no more than one hundred milligrams... it affects how well brilinta works. brilinta helps keep platelets from sticking together and forming a clot. in a clinical study brilinta worked better than plavix®. brilinta reduced the chance of another heart attack. or dying from one. don't stop taking brilinta without talking to your doctor,... ...since stopping it too soon increases your risk of clots in your stent,... ...heart attack, stroke, and even death. brilinta may cause bruising or bleeding more easily,...
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okay coming up on the last two minutes of trade here, we have the dow down 61 points, oil seems to be the story the bear market continues we got down into the 42 range today on wti, now we're in the august contract by the way, and you know, there's still analysts who think we could get into the high 30s before this move, this current move is over, but we'll see what that does the dow itself down 58 points, we've been down a little more than that earlier in the session but what's interesting health care stocks moved higher today we were talking about that a little while ago with the health care and the biotech stocks. this is the day before the health care plan is unveiled in the senate, i'll bring you in on this one whether that has an impact on that or not, we will see >> biotech doing the last couple of days. certainly moving up.
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yields holding steady a little bit. the bias though now seems to be move to higher the ten year yield now back to 215. >> it's not helping the bank stocks still down today that was a problem we had a big problem of course with the retailers, another day of follow through relative carnage, this time to amazon's wardrobe announcement. penney's are down. and against amazon and the big question though, you put up oil is when are the shale producers going to actually slow down production. they haven't we have new lows again on all the big names. oil names. >> braeb even price is lower now than it was earlier. >> certainly around $40, even et guys are not making a lot of money. so i want to watch the rate count.
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we're at 750 or so, arguments is going to come down by 100 or more if oil stays at $40 a lot of downgrades today of the big oil companies. >> thanks bob. as you saw ing and our new friend the ceo ringing the closing bell thank you, bill. welcome to the closing bell everybody, i'm kelly evans, here's how we're finishing up on wall street today. mostly red with one exception on the nasdaq and a big exception by the way, the nasdaq deposits three quarters of # 1% russell shedding a quarter percent. the dow dropped 52 points in the bell to 21414, it was lower by just a point to 2435 today the dollar index a little bit softer, the transports are down about nine, we have much more to
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get to on the markets here in just a moment. and as you can see there, now with the rebound today, the nasdaq is in positive territory for the month of june. the first day of summer to mark it all oracle set to release it's earnings this afternoon. we're going to bring you instant analysis of those numbers. shares were up 1% today. and cable and tell co operator trades innen ipo shares will price any moment now also give you those details as soon as they are out joining me on the panel today jerusalem -- >> we'll leave that open for now. some mystery >> thomas, i won't ask you about, we will ask you guys about middle names unless you want to volunteer them >> mine's jay, mine starts with a j too. >> jpmorgan guy, did you have the x? >> i originally had an x and i requested the i.t. department and they let me do thomas.lee.
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founder of fun strike and ann also here at post nine with us lead portfolio manager at well's capital management michael, real quickly, these oracle numbers are cresting, what do you think about the overall market >> market doing it's thing oil tries to take it down. banks are weak so it continues to kind of find a way not to fall apart altogether, i will say, oil started to really soften up, high yield bomb prices, that's something that you at least have to keep an eye on. that's been a big support. another one of these days where the market hovers near all time highs without being impressive across the board >> there's crude today down 2.5% tom, quickly to you as well here we going to get 2435 for the s&p 500, does it just keep going
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>> even charlie evans of the fed kind of acknowledged this yesterday. amazon is making me rethink how concerned i should by about low inflation. >> yes you know, the only thing we have to think about is how what it means for corporate profit margins. we think there's still wage pressures build iing that is a great point. as long as the wage piece holds up, they don't have to worry about the spiral if you're a company, you have to pay higher wages and can't pass that along maybe amazon can pull it off, can everybody else >> that's a challenge, certainly, especially in the consumer area. that's the biggest challenge for them and i think it's going to continue to be, amazon's putting more pressure, pressure on pricing, good for the consumers, good for you and i, but tougher for the companies that are trying to support that >> by the way, oracle earnings are out now. i think judge has the full numbers for us let's get right to that. shares are popping, josh >> well kelly, oracle reporting
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eps here of 89 cents, that's versus expectations of 78 cents. revenue also a beat there, 10.94 billion, that's first expectations of 10.45 billion, just looking through the release, total cloud revenue, 1.4 billion, new software licenses, 2.6 billion, and looks like license updates and support around 4.9 billion in this release, oracle's saying we delivered over $1 billion in quarterly sass revenue for the first time next year he says is going to be better remember that stock heading into the print was already up about 20% year to date heading higher now in the after hours. more from mr. herd by the way, tune in tomorrow for squawk alley. going to have oracle's ceo on to discuss these results. that'll be live and exclusive. tune in tomorrow for that interview. guys, back to you. >> all right, joshua, thank you. what do you think, michael look, it's a nice move on the shares for oracle here which
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tends to be less -- it's not one of the names where every time earnings comes out -- >> it's not up all the time. 20% year to date it's been an outperformer year to date. that's been more of a catch-up move it was kind of relative to the market and the nasdaq for maybe a year before that i think this is a perfect of reasonably-priced play on a broad spectrum of, you know, enterprise software. i don't think it's more, more than that in terms of overthinking it. >> and you guys must be feeling good as shareholders >> yeah, we are. the one thing that i think the market misunderstood and the reason why it did trade at a discount was the transition in the model. and as long as the cloud starts to grow faster than the core model, or the core business is deteriorating, that's good for oracle, that's probably what was ran through in the numbers >> when we saw the earnings yesterday, we thaubd ad nauseam, that's the example of thousand pull this off. what more do you need to see shares up 7% right now to show this move is happening fast
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enough, that they're able to keep market shares too >> you need that growth to continue on the cloud side and you need to see it translate into earnings growth and i think with that you could see multiple expansion, that's the one thing they haven't gotten yet. >> thomas, any thoughts on this one? >> you know, i know you don't to want get too specific here, but, you know, i think one of the things that's happening is they're trying to -- they want to be part of the sort of big tech bucket, and not the old tech, you know, kind of left behind. >> exactly they don't want to just be seen as -- let's be candid. cisco is kind of the example of old tech, very reasonably valued, very financially stable, but really not a participant in the growth areas of the industry and i do think or skl making it big to separate itself >> the security stuff yesterday trying to find that toe hold, we have some breaking news on the fed to get to. oracle shares are up 7.5%. steve leishman, what are you
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telling us about the fed >> fed governor jay, we have his testimony before senate subcommittee yesterday and jay power's going to talk about the u.s. financial system being stronger than a decade ago and banks having stronger capital levels but the fed is also acknowledging that it could make changes to the dodd frank regulatory reform. he supports living will submissions every two years opposed to every year. supports exempting smaller banks from dodd frank regulations. reassessing the rule in addition for smaller banks and those who don't trade a lot. smaller firms from the vocal role also supports easing some of the stress test rules and considers changes to the leverage supplement ri ratio which the banks don't like very much overall, the fed should reduce unnecessary burdens. and kelly, the background on what's happening here i think you know is that a lot of the fed support what's happening, what was done with dodd frank. but obviously the political wings with the republican congress and president trump are blowing the other way. i think the fed is trying to do
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what it can to maintain the essence of dodd frank and giving where they can on places where regulations are either redundant or maybe have overstretched and affect banks that shouldn't be affected by them >> steve powell was an obama appoint appointee, right >> he was an obama appointee as part of a democrat and republican target.
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>> it has been one of those group that's been kind of quietly coming around, and this market keeps wanting to do that, making an effort to grab the groups and take them to the front and biotech groups >> it's like the golden state warrio warriors, they want to move that ball around. >> my guess is, this market's going to lose a few more than golden state did before it's over, but we'll see. >> they're a little more rocky what do you think, thomas, about health care? you know it was a leadership sector going back a couple years now. >> yeah, i mean health care, tough year last year and i think in some ways, if growth concerns are developing, right, you want to go to groups like health care and tech where there is secular growth. it kind of makes sense. >> why do you have growth concerns. >> i think that there are some leaning indicators that are going to tell us there's growth concerns inflation break evens have been
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weakening, the o curve is flattened like crazy >> if i say you can't do inflation or the yield curve, look at what the oil is doing, it's down again today. and that's the weight and the drag in large part >> that's right. but these do sort of spill over into what you should expect for growth without policy, right and so if we have a delay in stimulus and tax reform and health care, then we could have an air pocket, because business is wait. i think in some ways, the downturn in interest rates, et cetera, is telling us growth could be weak. >> meantime, you mentioned that you guys we should check on how the shares are moving again. who else do you think is attractive >> we are looking for places where the smarkt ignoring too. so there's a small cap company about a $2 million market cap. it's a company that does provide technology and solutions to banks, and to retailers. they have 20% share in the retail market. so, really the three things i like about them is banks are transforming, doing less, you know -- shutting down branches
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consolidating branches, more atms growing and more technology for self-bank solutions. they're a provider of that they're in the retail channel which, you know, this transaction last week, point of sale by consumers is probably going to change to something that we're all walking around checking out everything with our cell phone, and lastly, they have an integration of wind core and asset they integrated where you'll start to see the synergies come through over the next two years earnings growth could accelerate, completely ignored by the market right now. >> oracles now up 8%, over 50 bucks a share. do you guys like it, you know, how would you describe the value, they are now, you know, after this >> well look, i think we predicted that they could grow earnings, high single digit, the management team's been saying they could grow at 10% if they can grow 10% which the street doesn't really have priced in, nobody on the southside is predicting that, that's going to exceed expectations i think in multiple it will expand. >> all right 8.5% we'll keep an eye on it. thank you guys both.
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>> thanks. >> and good to see you coming up, two big shake-ups rocking wall street today. first uber's ceo travis out after several controversies at the ride-hailing company we will discuss whether it was a mistake for yuber to stay private rather than reward with an ipo plus saudi arabia's king naming a new error in removing the crowned prince why it's significant and how it could impact the oil market further. as always, contact the show or send us an e-mail, you can tell u' your middle name. yore watching cnbc, first in business worldwide and i had all these points from my chase ink card. so i bought ingredients, utensils, even made custom donut cutters. wow! all with points. that's how i created the ripple: the doughnut in a doughnut in a doughnut. suddenly it's everywhere. i mean, it really took off. what will you create with your points? learn more about the ink business preferred card.
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i am your classic founder, entrepreneur that's way more into product innovation and building a company than i am like thinking about liquidity. so this is about building the company, you guys see me over the years, it's always been that way for me
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>> what does that sty everybody else. >> first off i don't think this is unique to private companies public companies have enron size, you know, scandals so, i don't think this has brought a ramifications in private companies and whether they decide to go public or not. i do think openness generally leads would make sense for that. i don't think it has bigger ram a ifications >> did staying private afford
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uber any protections that other companies might get by being too scared to go public. >> so, i don't think being private or public really matters. you have to have confidence in all the cases and you have to be the shareholder and your employees and their families >> it would seem if it were a public company and you're sitting there watching the stock go down the other day and having to have your investor relations people kind of fight this on a daily basis as the headlines keep coming out. you can understand whether they cry uncle. but i do want to get behind a
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little bit the motivation of the whole critical point they are a large company with lots of outside investors, but also they're in the market for talent every day so they have to kind of constantly hire and sell the company to new prospects >> i think that's a great point. i think the heart of this matter and the heart of this decision, people are like any other company, but in particular a technology company, the real asset of uber is it's brilliant team and if, and if you think about yourself, like, would i want to work at uber with all of this going on, you read that blog post, it's a, you know, gut-wrenching kind of blog post. >> susan j. fowler. >> yeah. so i think their ability to track and retain talent is probably the biggest catalyst for this change. >> and so i guess it depends on who the next ceo is. right now it's being run by committee, i'm not sure that makes it an attractive place either who do you think is the right person for no this role? >> you know, i think it's a
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tough call >> they have -- ultimately, i think the right ceo would be someone who will be a builder, and who can help improve the culture of the company as they need the issue and mentality is very, very hard to find will not be just a professional seal. it's complex for sure. >> all i would say too is now, it's still going to be hard for them to go public. you'll have to navigate as you're preparing if you just wonder, and this would have been the outcome anyway if you would have, you know -- >> you obviously don't know, on the other hand, it's unproven
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right now. you don't know what kind of reception they might have had. valuations -- >> much more excited about it. >> you're invested in one of the competitors. they're all over the place these guys thank you for joining us >> thank you >> we just have an earnings alert on seal case tell us about that one >> look at shares of steel case, falling here in after hours trade down double digits here's a story, earnings and revenue, missing expectations, 15 cents adjusted, the wall street expectation 19 cents revenue at $735 million, that too came in below what wall street was looking for. disappointing guidance, and in the press release, the company says orders in the americas declined 3% compared to the prior year driven by reduced demand from large customers, and region revenue declined 10% although it did see strength in asia pacific. the stock now down 15% one name to keep an eye on, kelly. >> yeah, i'm looking at it now
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they provide an integrated portfolio of furniture settings. >> it's office furniture >> yeah. >> so this is definitely kind of a read on big companies building out space -- >> that's interesting. you don't need these employees anymore, right >> you don't need them all in one place. >> yeah, that's kind of fascinating. decline for steel case this afternoon. uber may still be private, cable operator usa is highly anticipated ipo any moment now we're going to bring you the details as soon as it happens. plus walmart fighting back against amazon by reportedly pressuring suppliers not to use ke o f web services,urast ta on this escalating rivalry is up next
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morgan stanley welcome back, time now for today's fast take and the first one up is walmart. reportedly trying to keep suppliers from using amazon web services according to to the wall street journal, amazon fanning the flames michael by saying that walmart has quote incorrect view that aws is somehow supporting amazon's retail business >> i'm not sure if that's a misapprehension, look, there's some ways question make demands on the technology -- >> amazon web services is the only reason that amazon can lower prices the way it does >> it subsidizes the business. it reminds me of some investors, professional investors who were suspicious about trading through goldman sachs over the years
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>> who's the loser there >> next dunken donuts is losing some in the afternoon. shares are lower after a conference that with mcdonald's and burger king, the shares are down 4% as a result. >> it's interesting. yeah, this is such a kind of great expansion story in terms of dunkin and the franchise base i think there's something to this mcdonald's was criticized for emphasizing coffee as much as it did. breakfast all day means it's, you know, mcdonald's is more in mind for coffee. >> drinking less of it >> it's not awful. >> i'm sorry. >> it's not awful. i'm going to get my mom, terry if you're listening, i'm trying to dvd you here. next, this is a first virgin
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mobile announced today, it'll only sell iphones and it's going to offer a year of unlimited data for just a buck of new customers. they are going to slow things down for streaming anyway, what does the move by the subsidiary tell you, michael? >> it's a niche vender and plan they're offering out right here. it's somebody who clearly they want to simplify and then as you say, restrictive terms in terms what have you're getting. >> what i don't fully understand, the iphone whatever it's called, eight or ten, it hasn't come out yet. it's not like that came out and there's all this excitement. is it supposed to be exciting enough that they're only -- >> i don't know if it's a matter of exciting, they're just segmenting their customer base in quite a way >> it's higher. >> reporter: it's like southwest, only flies one plane. you know, for years only flew one plane. and it simplified the operation. finally, i do love this. forget mowing lawns. kids who want to make summer money these days are fixing those iphones.
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>> it's pretty musing story. it really is. >> they're making a lot of money. >> a lot of these entrepreneurial kids i still wondered, i was waiting to read about what equipment is needed to kind of do all of this and set yourself up in this business, but, the money's good. >> yeah. >> people break phones every day. just like the -- >> this kid made $24,000 in revenue last year. >> reporter: that's the kid on nan tuskt. >> yeah. customers aren't as price sensitive there maybe. >> if best buy opens the screen fixing business, they're out of luck. >> that's true shake-up in succession up next, why you should care about that oil-rich nation promoting a new owd incrneprce and how it could impact the energy market stay with us
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everybody else weaker though, about a quarter percent drops. s&p was only down about a point and a half, there's your wall street update, time now for cnbc news update with contessa brewer >> hi, here's what's happening, the kremlin's russia's considering retaliatory measures to respond to a new round of u.s. sanctions they are planned to be imposed over moscow's role in the ukraine. senate democrats held a rally about the capital blasting the
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republican health care bill process as skreetdtive and -- secretive and mean senate republicans are set to unveil their bill tomorrow the florida pan handle is feeling the effects of tropical storm cindy. some of the worst damage so far has been in op lieu is a county. vain flooding the gulf coast from the florida panhandle through texas. in fact parts of louisiana now under a state of emergency tennis star james blake agreed not sue new york after he is mistakingly arrested and tackled in 2015, remember this video. in exchange the city has agreed to fund for six years a legal fellowship in blake's name the fellow will serve terms on the review board and push for investigations of police misconduct that's the cnbc news update right now back to you, kelly >> all right thank you, contessa. our contessa brewer. there's been a shake-up in saudi arabia, jackie deangelis joins us with the details and how it could impact oil prices, jackie
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>> hi, good afternoon, kelly the deputy crowned prince, mohamed being named crowned prince or successor to the current king his father nbs as they like to call him is seen as a visionary in the kingdom. just 31 years old, he's replacing his 57-year-old cousin representing a generational change here. and he's been the driving force behind the saudi vision for 2030 part of that includes an economic perform program that's going to help diversify revenues away from oil. he's been seen as more modern, more in touch than his predecessors, he's willing to talk to the media. this is a big opportunity for nbs. he'll potentially be able to rule for decades and affect real change he's also close to the new savvy energy minister and they have been shaping saudi's opec strategy as well the timing for the changing of the guard is not a coincidence here tensions are high, plans for ipo need to be executed flawlessly and oil prices have sunk under 50 it's very important for the kingdom to get the world, to get
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the markets, to believe in it's leadership what does it mean for oil? well, short term, probably no implication here, but the goal is to keep prices supported around the $50 level and make sure that ipo goes off without a hitch. that's a longer term play for the saudis, but it's clear the ground work is being laid now. >> yeah, that's doubling down it seems on that, jackie, thank you. >> sure. what does it mean for oil prices going forward let's ask the cnbc contributor, john, the market today just moved lower again. which seems to reiterate why the saudis need a plan b but how is their leadership transition or change going to be back into the oil price, do you think? >> well, interestingly enough, today's drop was emblematic of the split between saudi arabia and iran and the cartel members.
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that was dismissed hours later by three other opec delegates according to to the reports we've all had. so, what the market is concerned about right now on short term kelly, all of this, these battles in syria and yemen and over qatar represent a real fissure, but also then how in the world do they work together to limit oil production and keep the prices up or even stable >> so the upside john is that tension and conflict within the region might actually have everybody producing more and therefore be negative for the oil prices opposed to the old day would be considered kind of build in a premium to the oil price. >> or shooting war between saudi
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arabia, it's back to the bad old days and we'd be off to the races to the upside. there's little doubt, key production, we'd get effective at the strait of hor mousse and the ability of supplies, 40% of the world's supply to transit through there would be impacted. just this past weekend, we saw iran undertake naval exercises with the chinese navy who says that they will be coming in on the side of iran if the conflict over syria were to expand. >> john, then is that the only way the oil price moves up if there's an outbreak of conflict in the middle east >> that seems to be the only lever at the moment. >> let me follow-up. are you saying it's an incentive for middle eastern oil producers that there be a conflict
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>> i guess, and i know michael, to suggest this seems a little bit insane, but my point is simply, if you are are one of these countries now, and you desperately -- i don't care what solomon does to modernize the economy, they had to backtrack on some of the stuff to keep the payouts going and so forth, they need the revenue, so if the only way for them to get an increase now is for there to be a conflict, skirmish, issue, is there not in a way in their interest to have one >> it's a question of a price versus volume. i mean, if they believe they'll able to maintain the production at a higher price, who knows, that's the calculous cartel economics always fall apart over these things. i don't know exactly how the
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game theory plays out. but this change in leadership, obviously raises those kinds of prospects. >> and what were you going to say, john? >> kelly, to your point there, i wouldn't put anything passed them at this point particularly as they get more and more desperate i will say that nbs does want to try to potentially cut more and raise prices that way, the old fashioned way. >> in the 30s, at this point, right? two and a half dollars away. >> today was a key support point has been tested. 4208 is a level to watch we could rally significantly off it, but break it, absolutely, upper 30s, right now there's no reason to think that the rally will occur because nothing's changed. there needs to be a concrete reaction and raised this price and again, desperation will drive a
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different calculous potentially and make it seem more otherwise would be >> all right, john, thank you. john joining us there and as mentioned, crude having another tough day. we asked you to tell us what you think about the show here's what one viewer just had to say about the uber segment earlier, quote, hedge fund of one, that's handle tweeted, should uber have gone public sure offloaded stream valuation and risk of misbehavior on us. i know what he's saying, it's, you know, why should all of these things be a dumping ground for public markets, but i guess my point to uber is, they can also be transparency, sunlight is a great disinfectant. >> why are we being deprived the opportunity? by the fact that they're staying public you never know what you're buying. >> facebook member, the public markets, i think helped to push that company in the right direction. >> did create a certain discipline >> anyway, keep the tweets coming rick santelli with questions
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based on today's news. can michael get them all right can you? shares of tell co operator stoet price any moment why broad band pricing could double and what that means for the cable guys and how would you like to see our set here and have a little tour and maybe some post show drinks with me and bill griffith now is your chance to bid on just that. i don't know if that price has moved. this is a problem. it's all for a very good cause head to our page, you can learn deli ie details and adnes next tuesday, get to it. [vo] when it comes to investing, looking from a fresh perspective can make all the difference. it can provide what we call an unlock: a realization that often reveals a better path forward. at wells fargo, it's our expertise in finding this kind of insight that has lead us to become one of the largest investment and wealth management firms in the country. discover how we can help find your unlock.
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welcome back, any moment now usa is expected to price it's initial public offering. the company which is a combination of acquisitions is a new entry and already crowded field of cable and satellite tv. and not paying for cable tv at all. joining us now, he's a managing partner at news street research. how big of a deal is it for you? >> it's a small issue. it started off at a billion five, they're going to increase it in size it's actually a very small number of shares given the size of the company overall so there's been a tremendous amount of demand going after fairly limited surprise. >> limited flow. >> so why is this such -- by the way, the brand name of cable vision is optimum, right >> correct >> why is this such an
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attractive public offering now would be a horrendous time to do an ipo of one of the companies. >> because these are great assets investors to want get their hands on as many as they can all you've got to invest in at the moment is comcast and charter. and those are fantastic companies, in fact i'd argue probably more exciting is equities for large funds -- >> you think comcast is basically a hot ipo? >> not a hot ipo, but it's a hot start. >> why so we know that cable story, challenge, they're basically giving that away for free now. is that all about broad band and the internet >> all about broadband, they don't make money in video. it's basically a service they provide to you as part of a package to the household, all of the value of the companies in broadband. in order to cut the cord on video, you need a high speed broadband connection and it better be high speed
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exactly, the more you consume over the top, the better that broad band connection is and there's only one company in most markets providing you with a really good broadband connection effectively in more than 70% of the country got a monopoly on that product, it's a fantastic business >> it's known as being this kind of brutally efficient operator, right? keeping high margins, is that because they're underinvesting in the actual network, where does it come from? >> they've operated in markets in europe that are much, much tougher in the u.s so the competitive environment in their markets in france and rally, the dominican republic's kind of it's own thing those are markets with much higher competitive intensity where pricing is less than half of where pricing is in the u.s it's the same business they're operating the same kinds of networks, and in order to survive in those markets with, they have to be in the focussed on costs >> because we work for comcast and i'm always thinking through, you know, the competitive landscape and the other day, i
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was thinking, okay, so let's say you it's 35 bucks a month or something. and if i'm satisfied with that offering, my internet might cost 80 they could ratchet that way up, what happens if i decide, i've got verizon or whatever. what if i pair my unlimited data plan with youtube, i still don't know if that brings the cost down for me. is that some kind of viable option do you think? >> no, you'll hit your unlimited isn't really unlimited on wireless you're unlimited at fast speeds up to a certain threshold. usually around 20 gigabytes per month. >> but now, what if they change that going forward because they realize this is a huge opportunity to take share from these cable companies. >> they don't have enough capacities on the networks in order to do it roughly 6% of all of the traffic today that flows over networks flows over the wireless networks and those networks are full. if you were to dump 50% of the traffic, they would literally keel over. >> so this is why you're
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cautious on verizon and taet in order to get spectrum, they'd have to buy one of the biggest players, right >> exactly we're cautious on verizon because they don't have enough capacity to support the revenue stream they'd have to go out there and buy dish the guy sitting on the opposite end of the spectrum are cable guys -- yeah, exactly. really big fat pikes that they can upgrade endlessly at very low costs. and there's just an ever increasing demand for more capacity over networks >> the whole case for the industry and the broadband providers seems to assume that even cord cutters are not necessarily on a net basis going to save an enormous a. money if there's pricing in broadband, if you want to layer on top of skinny bundle and netflix, over 100 bucks a month. >> that's looking at it from a consumer's perspective the bulk is for the broadband providers is they're kind of indifferent if you cut the cord or not if you cut the cord, they call
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it $15 in free cash flow your broadband flow goes up by $30. they're net ahead $15 on free cash flow. so, from their perspective, they're happy to provide you videos of service because they're in the consumer service business, they want to keep you happy. they don't want you to be buying services for one of their competitors. >> if if the movie theater just started to be a place where you went to buy popcorn. that's where they make their money anyway. >> that's what i already do. >> jonathan, final question, where does this leave landscape that we've described are they becoming an attractive prospect >> they want to be the opposite. they want to be an acquirer. they're doing the ipo to get a public currency out there. what they want to demonstrate to the market is that they've got a better way of running these assets than anyone else. they can run them more margins, more free cash flow, and that'll give them the ability to go out and buy more assets like these
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and replicate the story across the bigger picture >> coming to the grocery sector which could use a break by now by the way, and now we have it coming from cable, kind of >> that's right. >> they're going to trend. >> it's a great time to own cable assets one of two things are going to happen either they're going to figure out how to take margins up themselves or bought either way, cable investors are going to do really well. >> jonathan, thank you >> sure. explaining the whole landscape. we are still waiting for that process. jonathan chaplain. the new car buying experience is better than ever according to a new survey, but it shows more are complaining about some features. we'll have those details next. then coming up on fast money technician is going to make his case for why you should forget tech and buy health care instead. more "closing bell" after this world ugly and messy. they are the natural born enemy of the way things are.
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yes, ideas are scary, and messy and fragile. but under the proper care, they become something beautiful. (upbeat dance music) (dance music abruptly stopping) (dance music starting then stopping) (upbeat dance music) (bell ringing)
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welcome back a new survey revealing the highlights and low lights of new car buying phil has all the details >> there's good news and bad news in this latest report and this report is is based on 80,000 new car buyers. talking about their 2017 models, 90 days after they bought them what did they find the three best brands? in other words, those who had the fewest number of complaints started with kia for the second straight year, then the genesis brand, the luxury brand created by hyundai, and porsche at three. one interesting note about this report on the eququalitity, thee was a surge in the number of complaints about driver assist technology we're talking about collision avoiding systems lane departure warning systems adaptive cruise control.
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all of those systems designed to keep you from making a mistake from behind the wheel, people have been complaining. partially, frankly, the systems are annoying they don't know all the time how they believe be working and whether they're doing what the drivers expect them to do. when you look at bottom three, these are the guys who did not do well in the eyes of those who bought those brands. volvo, jaguar, fia thet. overall quality has never been higher bad new, all of these new features designed to keep us safe, they're not always work the way we expect them to. >> how did the subaru do >> i don't have the list, but they tend to be one of the highest rated brands >> it's pretty good. >> improved their reports. >> i like, they've got the light blinks and side view mirror, if you've got the blinker on,
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that's a good future, but you know, there's a lot of other beeping and things don't you think this is almost like the way it used to have music players before apple came? maybe there's a role for them to make it much more elegant and user friendly. >> this is what i call the messy transition over the ten to 15 year, you're going to have more and more of these technologies introduced and in some case, people not used to them are going to say wait a second, i don't like this the it's not that these are malfunctioning, it's that they're not working the way people expect them to. sxwl and the it's such a big ticket purchase. it's harder to say i don't want like this fit bit. i'll try the next one. >> thank you, phil i was going to say phil san tolly. it's that time again we're going to try to stump as sarah would say, the san tolly >> i like the article.
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i think you've marred it stay tuned, cheer him on and we'll see you you do, next this is the new new york. we are building new airports all across the state. new roads and bridges. new mass transit. new business friendly environment. new lower taxes. and new university partnerships to grow the businesses of tomorrow today. learn more at but i keep it growing by making every dollar count. that's why i have the spark cash card from capital one. with it, i earn unlimited 2% cash back on all of my purchasing. and that unlimited 2% cash back from spark means thousands of dollars each year going back into my business... which adds fuel to my bottom line. what's in your wallet?
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did that do okay >> great i'm not happy with what they did behind the scenes. michael, i think if you don't get 100% today sh there's no-no hope >> what is my middle name is one of those questions >> jerusalem yeah, that will be separate. question one for you big news about travis being out as ceo of uber it was not his idea. it was the xwrd of a more under the radar cofounder. was it a, bill gurley, b, john zimmer or c, garrett camp. >> c >> yes talking a lot about the founder of this company. and john zimmer, he's the lyft guy. lyft taking market share from uber today, s&p releaseded number frs buy backs in the first quarter which you flagged.
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how much were buy backs down year on year 84.9%? 12.3%, c, 17.5%. >> a >> no. >> year over year. it was not down that much? >> i think the it was 17.5%. now, there was still an increase, but it was smaller did i bring, notes are up there. >> we're going to go to the judges on this >> raight, there's a vertically folded piece of paper and a follow up question which company, thank you very much, spent the most on buybacks in the first quarter bonus. >> multiple choices. >> single company spent the most on buy backs apple. >> yes correct. i think we're going to give you credit yay, clap, clap, clap. $7.2 billion here's the press release stock buybacks totalled $133 billion for q1 this is a 17.5% decrease from
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$161.4 billion from howard silverblack's lips it's the first day of summer and many people are planning their summer road trips. when oil prices have been sinking, but what is the national average for gas now 1.89 2.28 or 2.94 >> 2.94. >> no, no, tht unbelieve bable it's 2.28. when is the next road trip we live in this. in the tristate area >> it's all about the state taxes. that's a whole variation and where they are in the refineries i'm glad about this. i told you i was going to tank one. i don't know i feel conflined about it >> i saw it as 1.7 >> really? it's down 17%. it's a better story. and it shows you that buybacks were never the reason stocks were going up. the market was up in the first quarter. >> it was still a lot. it didn't hurt
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i'm telling you, all right, when is the next road trip? bill griffeth, he would know the price of gas >> july 4th. >> good luck with that this was fun >> we need to do stump griffith. see you next week. i think. that does it for "closing bell." we'll see you tomorrow time for "fast money." "fast money" starts now live from the nasdaq overlooking times square i'm melissa lee. your traders on the desk -- tonight on fast, the head of the world's largest bond fund says there's something unusual happening in area of the market. he'll tell us what this is, plus, oracle out with earnings moments ago, the stock surging to multiyear highs in the afterhours and later, uber cofoupder and ceo announcing his departure today add mid mounting pressure from t


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