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tv   Closing Bell  CNBC  February 22, 2018 3:00pm-4:58pm EST

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ammunition companies we tried to highlight, who are these names. on a much more personal note, i want to wish a happy 80th birthday to my mom i love you i'll see you tonight my mom turned 80 today. >> happy birthday. >> inspiration, left home, didn't graduate from high school, got her ged later and now i'm sitting here i love you. >> happy birthday. >> thanks for watching "power. >> "closing bell" starts right now. ♪ >> happy birthday, mrs. sullivan. >> absolutely. >> welcome to the "closing bell." ime chel caruso-cabrera. i'm in for kelly evans. >> i'm bill griffeth stocks in rally mode but way off the highs. dow was up 300 points before noon, hitting peak, and since then pulling back. the s&p still positive but the nasdaq has turned lower. >> the dow and s&p 500 are looking to break a two-day
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streak as the ten-year pulls back from highs. bob pisani here at the nyse. let's start with you. >> listening to this lovely music. i'm 12 years old again another thing about today, selloff in the middle of the day. three days in a row this is happening. up 350, cut essentially in half. the market started very strong in fact, the cyclicals were the story. looked like early january. what i mean by cyclicals, growth names. united technologies up 3%. that's moving the dow up 30 points boeing was much stronger earlier in the day still up but a classical cyclical name. let's show you 3m. these are all dow components, cyclical stocks, all of them, up 1.5%, 30 points. this was 237, 238 and now back to 235 caterpillar up 2%, four-point gain another 30 points. this was almost 160 just a couple minutes ago finally, one group that hasn't
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been doing that well today, the bank stocks. goldman sachs, all the big bank names are down fractionally. even though there hasn't been huge moves in the ten-year you can't blame the selloff on the ten-year, it's been essentially 2.91, 2.92 all day we've had a lot of volatility on, frankly, not a lot of news. >> thank you if you were 12 years old when that song was popular, i must have been 5. >> we'll talk later. >> see you later, yes. meanwhile, a positive close for the nasdaq would be its first in four sessions as the index looks to avoid its longest losing streak since november of 2016. as you saw, bertha coombs is at the nasdaq market site >> the song may say love is going higher and higher but sectors are fairly flat, now dipping into the red tech has been what's outperformed all year-round, even in the rebound here we're seeing chips getting worse.
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biotech has lagged the biggest movers today, the earning stories, bloomin brands, hitting highs, cheesecake positive and roku with disappointing results. the large cap, f.a.n.g. names, they have been under pressure. they were coined that, given that nickname by jim cramer because for a while they were what was leading this market higher now it's getting even narrower amazon is really the stock that's been moving things here the amazon effect in terms of tech rise. for a second day in a row, it's found resistance at the $1500 level. now sinking into the red as we close the day. if you take a look at what has driven the nasdaq here, amazon, if you look at the point impact responsible for about 44% of the gains so far this year when you look at the overall s&p, it's response ibible for j
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over a quarter the amazon effect something we'll be watching when it comes to this market, michelle. >> absolutely. thank you so much, bertha. let's talk about the markets with nyse director, tim. good to have you here. >> great to be here. >> is the ten-year in charge of this market or not i thought it was and then today barely does anything in the markets all over the place. >> i think the market is getting used to the fact that eventually we'll hit a 3% yield on the ten-year i think that's baked in. clearly we haven't had that much volatility in rates today, which is interesting because it's a very large week forrishance of u.s. debt. most is in the short end, but we haven't given all that supply hitting the market we haven't seen that much move in the longer end of the curve. >> stay there. we have the white house just weighing in on market volatility during the daily press briefing. eamon javers with that >> reporter: that's right.
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the white house eager to emphasize the success they see in the markets i asked him, though, about some of the stock market volatility we've seen over the past month here's what he said. >> stock market volatility is something that's to be expected. you know, it's a regular thing in the stock market. it tends to go up when the market has gone up a lot as it has in response to our policies. i don't think it's anything unusual or something for people to be concerned about. >> reporter: the white house showing no concern over the stock market volatility. hassett saying it's nothing unusual, nothing to be concerned about. i asked him about the u.s. dollars. we saw some of those comments last month from steven mnuchin, in davos suggested that the white house wanted a weaker dollar policy. that's going against what treasury secretaries have typically said in the past but as of today said there's no change in u.s. dollar policy, emphasizing very much the continuing strong dollar rhetoric that the white house has put out since those comments, guys >> eamon, thank you very much.
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still here with tim anders we talked about this market volatility, but there are days, and i think today is one of them, when the magnitude and the timing of the volatility just doesn't make any sense >> i just think the volatility is something that the market needs to adjust to it's going to be a little bit of the new normal of what we're going to see at least for the remainder of the year. >> is it putting in a top or bottom >> they used to say volatility at the top was a warning sign. right now i think we're trading pretty much within a range there seems to be a lot of resistance s&p 2740, 2760 that was the gap that happened when the market opened february 5th, down 500 points and ended up down 1,000 that day but i think it's a sign, really, that we're coming out of a ten-year span where rates were zero or near zero.
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and pretty much central bank around the globe had compressed and controlled the price of money pretty much everywhere along the curve. that's no longer the case anymore. and you're seeing normally -- you're seeing higher volatility because of that. it's a normal outburst of that. >> the patient is finally coming out of the induced coma after so long. >> yes, yes. >> that's what usually happens thank you so much. see you later. >> youtube and twitter facing sharp criticism in the wake of last week's school shooting in florida. as conspiracy theories about some of the victims went viral on those platforms let's get to cnbc's julia boorstin as she follows this story. >> youtube's trending tab, which promoteses popular videos, featured a conspiracy theory that attacked the packland survivors, saying one was an actor, drawing over 200,000 views for that one video before it was pulled down youtube saying in a statement this video never have have appeared in trending because it contained footage from an
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authoritative system it included a clip from cbs which enabled it to slip through the safeguards they say they train the algorithm which identifies popular videos facebook was also criticized after conspiracy videos about david hogg were trending facebook said, quote, images that attack the victims of last week's tragedy in florida are abhor rent we're removing this content from facebook twitter has been verifying accounts of parkland students and by cracking down on bots' ability to make hoaxes go viral. now, timing could not be worse for these three companies as they deal with a fallout from the role they played in russian attempts to manipulate the 2016 election bill, back over to you. >> stay with us. we want you to be part of this conversation as we discuss more of this controversy swirling around social media platforms. we're joined by cnbc's digital
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jay yarro. marc ginsberg, former presidential middle east adviser who runs an organization that advises google's youtube on removing extremist content mr. ambassador, you have been vocally criticizing some of these social media platforms you don't think they're fast enough, nimble enough being able to remove the content that's deemed offensive or fake, right? >> absolutely, bill. the reason is that none of these platforms have been willing to embrace the latest and most sophisticated technology and software that would accelerate their capacity to take down extremist content as well as content that, for example, was just demonstrated on twitter and the dilemma we face here is that the social media companies are claiming they're improving their capacity to do so but the technology, whether its bots being used by isis or even the videos now being posted on google plus and google drive by
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isis and other extremist organizations are leaping far ahead of the capacity of the organization to take them down >> what do you think these are some of the brightest people in silicon valley do you think they should be able to solve this? >> it's interesting to say it's technological problem when these are supposed to be the greatest technology companies of all time and with smart folks i question whether it's a technology problem they have, and maybe it is and somehow they're not able to outwit russia on a $12 million budget, or maybe it's more of a cultural thing for these companies. have you to wonder, is it cultural, are they willing to make this sort of tough editorial decisions you have to make around some of this content and are they willing to take the heat, are they willing to get in that business? culturally they focus on being open platforms it might seem to them that suddenly they have to make tough choices on what they consider to be on an open platform that's why they're big multibillion dollar companies run by smart people.
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smart people make really hard choices from time to time. >> being that open platform, i think, is also a business question because as long as you remain an open platform, you're not closing anybody out of the business more business means greater profitability or at least revenue in this case how do you think companies respond to the criticism when they're not doing enough to bring these offensive or fake bots down. >> youtube, twitter, facebook have addressed hiring more people and crack down on the spread of extremist content on their platform having said that, i think jay makes a really good point on their role -- their sort of editorial role on this i thought it was interesting that youtube said the trending topics, simply the most popular content, will rise to the surface. and that's what's going to -- that's not curated by people that's curated by computers. i think that's what raises the question if you can have computers
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manipulate these algorithms, then they companies need to really ramp up their investment in people to better train those computers as they try to weed out this content the question is, are they tech companies or media companies they very much said they're not media companies. one reason i think they stayed away from that labor is because media companies have to take more responsibility for the type of content on their platform i think this is a moment where they understand they're under so much criticism they have to fix this. >> yeah. it certainly invites the question about legislation, regulation jay, at the same sometime they have been criticized for being too aggressive for removing content. a lot of conservative groups feel things are taken down unfairly from places like youtube, labeled offensive when they say it's not offensive. it's only offensive on one side of the aisle. >> or first amendment rights. >> right >> to go back to julia's thing
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about the algorithms. they're written by human so trying to hide between them, humans are creating them it's not like bots creating bots that's a key issue they need to have the guts to stand by what they're going to do, to understand they're not going to make everyone happy we're in the news business we get hit all the time for, you know, editorial decisions, analysis, opinions, thing we say that are reporting it's chal epging it's great to be an open platform and then hide behind saying you're not an open platform so you don't have to take those hits. that's what they have to be willing to do to step up and have, you know, a moral stance or have a view, have standards they adhere to >> mr. ambassador, we're being pretty critical of these social media companies. what about the other side, what about the people consuming it? i had a teacher in junior high,
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junior high, this is back when the world was black and white, that taught us what propaganda was all about and the difference between propaganda and news. shunts people look at all of what they're seeing online with a little more critical eye anyway >> they should, bill you know that the russians were able to basically propagate and migrate all these troll farms that essentially disseminated what looked like real news but what turned out to be fake news. isis is doing the same thing right now. it reconstitutes itself on social media so, what we think may be, indeed, because we're better educated, may be information that is not extremisextremist, s across to an average american as real the problem here is that the companies themselves just refuse to adopt the technology that's out there right now because let me just add, there's law that, in effect, gives them immunity for content liability.
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it's that law that more or less stops them from wanting to embrace the technology that would be needed because then they would be assuming responsibility for that content. >> thanks. interesting. this debate is not going anywhere now julia boorstin, mr. yarro, and mr. ambassador, thank you for joining us intl. bless arlene cornell for teaching us about propaganda in junior high. the dow up 184, but here we go again another volatile dale day. we were up 335 points at the peak we've since come off those highs. >> nasdaq in the negative. so as amazon goes, looks like so goes nasdaq. the "closing bell" just getting started. don't move >> announcer: next up, the big bitcoin fall the last time we saw a big bitcoin dip, stocks fell along with it. is there a correlation and are cryptocurrencies telling
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stock investors something that they're not listening to plus, consumer reports top cars. is the one you want to buy on their list the "closing bell" is back live fromhe n yk teworstock exchange in two minutes excuse me, are you aware of what's happening right now?
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bitcoin prices falling below the key $10,000 mark seema modi at the hq. >> and i care. bitcoin, just when we thought we were out of the woods, right around $10,000, down about 4% on the day. federal reserve bank of new york president william dudley cautioning investors that the surge in cryptocurrencies is dangerous. saying, quote, there is a bit of, i would say, speculative mania around cryptocurrencies in terms of their valuations which i view as pretty dangerous because i don't see what the true underlying value of some of these cryptocurrencies is in practice dudley did not single out a specific crypto, like bitcoin, but his comments come sort of as a sharp contrast to u.s. regularities at the s.e.c. and cftc, who have been much more receptive to cryptocurrencies.
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separately, traders who apply technical analysis to bitcoin charts say, we're seeing some signs of weakness with a head and shoulder pattern playing out. bitcoin now down 40% from its recent high in mid-december. it's not just confined to bitcoin today. we're seeing other cryptos like ripple and lytecoin also lower. >> thank you very much by the way, you know, paul singer, head fund manager ripped into cryptocurrencies in a letter made to clients public this week and we quote, when the history is written, cryptocurrencies will likely be described as one of the most brilliant scams in history, end quote. joining us now to talk cryptocurrencies, tom mclelland, editor of the mclelland market report you were looking for any correlations that might exist between the price fluctuations of the cryptocurrencies with the equity markets you thought you found it for a time and then it broke down. what happened? >> well, every price pattern
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analog i ever worked with in the history eventually breaks down and this one is no exception it's become inverted, which is often a sign of it failing completely that comment from dudley was very interesting he talked about how he fails to see the inherent value of cryptocurrencies i wonder if he would have a similar comment about the inherent value behind a dollar bill >> that comes up a lot, with a lot of the people who endorse bitcoin. thinking, well, it's not really -- there's nothing backing it they say, yeah, there's nothing backing the dollar either, remember what do you think, if the correlation between bitcoin and the dow has broken down. you were the first to tell us about it a couple months ago, what are you looking at now and what can you tell us technically about this market? >> bitcoin has fallen because people realize there are so many different choices out there and there's an unlimited supply of new coins. the amount of demand for it is
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eventually going to dry up just as happened with tulips and everything else. the but the stock market is going to persist and go on because the stock market represents things that are real. i'm still looking for a top that's due as early as the beginning of march could hang around until mid-april. i brought a chart to talk about that showing the presidential cycle pattern which says in the second year of a presidential term, where we are right now the s&p 500 tops in mid-april. that would be a little later than my early march time target. not terribly in conflict both models agree we have a disappointing summer for the bulls and we get -- i'm looking for late august, it could be middle of september and then we rally into year-end. >> does the volatility we're seeing right now, this huge pickup in volatility, does that still fit the cycle you're talking about? >> it does it fits because volatility stems
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from ill-liquidity we have the advanced decline line has made a top relative to the stock market the bonds -- the junk bonds are the real canaries in the coal mine they'll start to suffer when liquidity gets bad liquidity getting bad is what brings volatility, it's what brings prices to have to move farther in response to stimulus. >> always good to see you, tom thank you. >> thank you >> tom mcclelland of the mcclelland report joining us today from, clearly, seattle still ahead, the energy sector far underperforming this market in the past month but now gaining back some serious ground in today's session cts ivtake a look at the other seordring today's move higher where can investors seek predictable income
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financials were laggered. >> yesterday financials led, real estate was the laggered this is the internal rotation. >> based on interest rates financials do well, real estate in theory doesn't. >> we'll take a quick break here still to come, airbnb is taking on rival online travel companies today with a new plan to get more hotel chains onto its platform. we have an exclusive -fterview with the company's
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of pressure after releasing earnings after the bell.
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saw profits rise in the first quarter but that's overshadowed by weak guidance dragging the stock down by more than 17%, a was expecting. cheesecake restaurant also reported yesterday with earnings and revenue right in line. like many casual dining names, comps declined and, in fact, fell more than expected at 0.9%. and bloomin brands, one name that's bucked the trend in the casual dining space, beating on top and bottom lines and seeing same store sales increase by 3.3% that's rare. they are the parent of outback steakhouse and more names coming up after the bell with wingstop and red robin gourmet burgers. back over to you >> ever had a bloomin onion? >> they're delicious. >> my worst guilty pleasure is, that or abba >> i met the guy who had to help them develop the -- you know, you have to grow them a certain way. >> really?
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>> and get them through the supply chain. >> they grow them that way. >> really big, yeah. innovation. >> no idea >> anything fried is great, guys >> thank you, kate >> thank you >> see you when we do earnings sfr "closing bell" exchange with the dow up 181 points jean us at post 9 and rick santelli at the cme in chicago. we have to come up a reason every day for some of the zigs and zags in the market some days are more difficult than others. this is one of those days. what's going on here >> it is i'm getting a little concerned we saw sell off on weakness into close on fundamental reasons yesterday it was the fmoc minutes, thinking they may be more aggressive than they stated they would be. i can't come up with a reason today, you're right, other than people are fading into the close on this market so, what i'm becoming concerned about is we may be shifting from a buy the dips to a sell the
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rallies kind of market that would change the persona and attitude of my behavior gate and may make it tough to get back to those all-time highs having said that, i'm still a believer we're working off the massive oversold conditions when we hit the lows on february 9th. people need to bear in mind we're less than two weeks on so we may have room to move i think the heightened volatility we got in that period has made people sit back and pause and know and remind us that it doesn't go straight up forever. and you need to go ahead and take chips off the table there's still some frothiness. >> tonight was still an anomaly when it comes to volatility. what do you make, when keith suggests it could be a paradigm shift from -- he's not saying that is the case but possibly the case and we've gone from where investors are ready to buy the dip, instead they're getting nervous and more likely to sell into rallies do you think that's a possibility? and what are you doing >> yeah, our clients find this period of time very disquieting.
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you watch the markets and they're up big and then it's down you end with a loss during the day. they're nervous, they're concerned. they don't quite understand it i don't quite agree with pete in that they should take some chips off the table. people are concerned about rates. rates are causing a lot of this volatility that we're seeing so, we're advising our clients to be patient, ride it out it's very difficult to try to time the markets and you have to be right about when you pull your chips, but then you got to be right about when you put your chips back on the table. we just think that's very difficult to do. >> indeed. hey, rick, you know, one of the reasons given today for this rally and then a pullback is, again, the equity market watching the fixed income market and the ten-year yield has gone all the way back to 292 today. is that what's going on here >> you know, i can't tell you for sure whether the impact of
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all this rate issue is what's propelling or giving volatility the equity market. what i can tell you very accurately is, is that that ten-year note yield pretty much like much of the curve just continues to build on itself not a lot of setbacks, not a lot of retracements. it's acting like the 2017 stock market to some extent for the first seven weeks of this year i don't see that changing much you know, bob pisani, who's been covering this as long as anyone said you can't blame tens, they've hardly moved i'm not so sure you can get away from that comment. hardly moving might be exactly the reason they're kind of painted to the wall i still say that, you know, we're going to be talking about 3% most likely in the month of february there's still some time left as for equities, you know, whether it's the dollar index or equities, i like to keep things simple if you look at the high of 26.16 and the the low was 23.36, the
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midpoint is just about where we're trading right now, 2.919 keep it simple i suspect we'll create a wedge pattern. if you were to draw a line on that chart, a little below 25,000, my guess is that wedge will correlate with that you'll have some volatility above and below it but it will get tighter and then it breaks out. whichever direction it breaks out, i would follow. >> gene, what are you looking for when it comes to the ten-year yield how closely are you paying attention to that 2.91, 2.92. how much does that effect you? >> we're watching it i agree 100% with rick it's probably going to go above 3.00 at the end of the month that's okay. it's to be expected. the economy is probably going to grow at 3% this year the imf came out with global growth numbers and it was 3.9
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for 2018 i'm not sure it's going to grow quite that fast, but the point is, the economy's growing so rapidly, corporate earnings are off the are charts commodity prices are going to go up as a result of that, and then as a result, you'll see inflation spike up and it only makes sense for rates to go higher >> before we go, keith, art cashin said, either today or yesterday, if we hit 3%, or when we hit 3%, it might be all bets off for the equity market at that point is that the level traders are watching right now warily? >> 3% is certainly the level i'm not sure i agree with arthur that that's going to make all bets off but it may kick up volatility if we continue to push much beyond 3%, that will start to look like a breakout on rates. that will be trouble for equities remember, equities hate two things inflation over 4% and a lack of corporate earnings if the rates start moving and telling us, signaling us we're going to get inflation spiking up to that level, which i'm not sure we'll get to in a powell
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fed, and if earnings come off a little bit, that's where you have the real problem for equities going forward >> all right thank you. good to have you on. gene, todd, rick san stelly. we're heading to the close with 22 minutes left in the trading session. the dow was up 358 points. as you can see, we cut that in half, up 174 right now. it's report card time for the automotive industry. when we come back, the carmakers who passed and failed the latest consumer reports ♪ feel that? that's the beat of global markets, the rhythm of the world. but to us, it's the pace of tomorrow.
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a lot of the circumstanycli are leading the way. the weakness is in financial and tech stocks. goldman sachs, cisco, travelers, ibm, american express, in the negative. auto on pace on a three-day losing streak and consumer reports is out with top picks in the sector phil lebeau joins us with is that report card. >> this is a highly happied report primarily because it
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doesn't hold back in saying here's who is doing well and here's who is not. the number one brand, genesis, the luxury line of vehicles from hyundai. genesis, according to consumer reports, represents luxury with reliability. this brand really wasn't launched until 2015 by hyundai the bottom three according to consumer reports land rover, jeep and fiat. we'll talk more about those in a minute want to talk about chevy bolt. consumer reports made the chevy bolt the all-electric chevy bolt, a top pick as its top pick for compact green cars it points out the fact that, look, if you're looking for something that's affordable and has long range when it comes to an electric car, not just 80 or 100 miles, the bolt is the way to go. take a look at shares of general motors and fiat chrysler despite the fact that general motors has done a lot of things
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right in the last couple of years, look at the difference in these two stocks no comparison at all there are a lot of other factors that go into this in terms of why fiat chrysler is up. the belief that, perhaps, sergio marcione is ready to sell the company. in terms of fiat and chrysler rapged as two worst brands, the company told us we do not find consumer reports ratings always aligned with customer preferences. we encourage customers to experience our vehicles for themselves guys, that's the consumer reports report card for this year >> thank you so much. >> remember when people laughed at south korean cars not anymore. >> not anymore. a news alert on blackrock. leslie with details. >> this is in spobs response toe flack blackrock received due to ownership over three of the largest publicly traded gun companies. blackrock is out with a
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statement in response to some of the outcry the firm says their index providers are responsible for the construction of their indices as a fiduciary we have the responsibility to replicate, as a result, we invest in a company as long as that company is in the relevant index so, given our inability to sell shares of a company in an index, even if we disagree with management, we focus on engaging with the company and understanding how they are responding to society's expectations of them we will be engaging with weapons manufacturers and distributors to understand their response to recent events. we are working with clients who want to exclude from their portfolios weapons manufacturers or other companies that don't align with their values. we currently have more than $200 billion in aum for these clients in these type of portfolios. they have a low to mid-teen percentage in three gun
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companies, american outdoors and vista outdoors through their index investing business this is not through their active ownership in these companies that's a big distinction in a large blackrock empire the company plans to deploy corporate governance team to engage with management at the gun manufacturers and that's how they hope to tackle this moving forward. >> two things. first of all, if people are wondering why we have people laughing, there's a bunch of teenagers behind us not realizing we're doing a very serious story on the set, number one. two, to go to the indices. if you're trying to get rid of gun stock ownership, you go to the indices makers to say, are they going to pressure them to do that? >> you can do that if you say you want to own the russell 1997, excluding those three gun stocks, instead of russell 2000, you can go to blackrock and say i want a customized ets that excludes
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those but tracks the rest of russell. or you can do that with oil companies if you believe green energy is the future, tobacco stocks, you can exclude whatever you want the easier the exclusions, the cheaper it is. but it is something that's an added expense if they want to do that. >> isn't that interesting, though, because it falls in the face of the popularity of passive investing, which is what index investing has been all about, which is supposed to take the emotion out of investing and just let the market ride >> and the expense out of it as well it's something a lot of pension funds, for example, have seen as kind of the future now they find themselves in these gun stocks that they may not want to be in given some of the recent events of the last few years. >> or tobacco stocks or, you know, anything else. >> you have to know what you own. >> well, exactly. >> just buy an etf, you can't just be -- >> welling, then you have to fashion your own etf if you don't agree with everything that's in that etf. >> exactly. >> isn't that interesting.
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thanks see you later. 13 minutes left in the trading session here the dow is up 118 points but we've come well off the highs for the day. >> still to come, earnings from hp, hpe, first solar, red robin and also wing stop come up next, we'll look at how those stocks have historically performed after releasing their earnings "closing bell" will be right back let's begin. yes or no? do you want the same tools and seamless experience across web and tablet? do you want $4.95 commissions for stocks, $0.50 options contracts? $1.50 futures contracts? what about a dedicated service team of trading specialists? did you say yes? good, then it's time for power e*trade. the platform, price and service that gives you the edge you need. looks like we have a couple seconds left.
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. more volatility today. the dow up 182 right now, but midday it was up 358 points. we pulled back since then. the s&p still up 4.5 the nasdaq has stumbled with amazon leading the way lower and the russell is down as well. by the way, the energy has been the best performing sector in the s&p today. here are some of the names leading the pack i forgot about chesapeake energy, michelle up about 19% right now after -- now 20% after reporting blowout earnings from that shale producer >> back from the dead.
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>> baker hughes, up 3.75%, hes and baxer up as well >> earnings set to come out after the bell, including hp, wingstop, red robin burgers and first solar. according to our data partners, shares of wingstop have moved an average of 7% either up or down over the past eight quarters after earnings were released first solar, seen an even bigger swing, moving an average of 12% in either direction on their earnings report. over the last eight quarters, red robin has moved nearly 13% after reporting results. we'll bring you all the after-hours action as soon as those numbers come out. >> isn't that interesting? love all that. we'll come back with the closing countdown with dow up 165 points right now. after the bell, airbnb deeper into the hotel and travel
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business we'll speak exclusively with their co-founder abo tt veuthamo and if the company is headed twardz an ipo later this year. let's begin.
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yes or no? do you want the same tools and seamless experience across web and tablet? do you want $4.95 commissions for stocks, $0.50 options contracts? $1.50 futures contracts? what about a dedicated service team of trading specialists? did you say yes? good, then it's time for power e*trade. the platform, price and service that gives you the edge you need. looks like we have a couple seconds left. let's do some card twirling twirling cards e*trade. the original place to invest online. about three minutes before close. gradually getting lower. this is one of those day we talk about where it's difficult to
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come up with a reason for these wild swings we've been getting today. let's go back a step just to get a sense of just how volatile this market has been lately. i'm going to show you some five-day charts of various markets. we'll start with the dow and, again, intraday we get wild swings but you seat those when we pull back and see the five days there and we want to correlate it with something. is it something fundamentally going on with earnings, something economically going on with interest rates? or is it just technical? is this -- are these charts that are moving the chart right now, chart watchers, it's hard to say. look at the ten-year yield you know, we continue to move higher we convincingly have gone above 2.90 which was a cap on the market, on the ten-year yield. we hit that level yesterday. it was when we bumped up after the minutes of the fed meeting
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came out at 2:00 eastern time. up we want the ten-year yield, down went the market, the equity market but it's hard to say we were up 250 points when we were told the ten-year went back to 292 that's not much of a move. is it really the correlation between equities and dollar market the dollar market, least volatile lately. interestingi interestingly enough, the dollar has been going down but for the past five days that dollar index has continued to move higher, even though we're not above 90, which is a number rick santelli watches. you can see it's been a gradual march higher as it tries to get back above that level. >> i think it it would be hard for us to blame yields, ten-year yields on the market activity or the dollar today what we can say is there's been a pattern developing in the last few days, last three days. we start up, we tend to peak in the late morning and we sell off in the afternoon on modest to
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high market on close sell orders recently i don't know why that's happening. when participants in mutual funds decide they want to lighten up towards the close maybe that's going on to a certain extent i think you'd be hard-pressed to point out any particular factor today. it is s&p is flat. the cyclicals in the dow is working. boeing, united technology, caterpillar, 3m, all throughout the day. they have generally been outperforming the market >> here's something i can suggest to that have had an impact on the market yesterday financials were the leader typically when rates are going up real estate was the big laggard, which is counter to the interest rate market. today real estate's the big leader and financials are the big laggard.
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>> you can argue the lack of the big move in the ten-year is helping support the real estate trusts, which have been beaten up badly, as well as utilities beaten up badly. the swing there is not that great, compared to what we're used to. >> i agree. >> even yesterday we had four basis point in the ten-year and everybody blamed that. >> we get earnings after the bell with the two companies that used tomake up hewlett-packard. they'll be reporting after the bell then a couple of food companies, red robin and wingstop. >> i think the important thing about earnings is we'll have the best earnings in at least six years. we may get 15.5 to 16% earnings growth for the fourth quarter. 8% revenue growth. in all four quarters of 2018, all four, earnings growth is double digit and has not been declining. they're not moving the numbers down they've been moving them up. we'll see if that continues. i can't believe it's not going they'll stop at some point very soon the numbers -- one reason the
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market keeps bouncing back is excellent earnings picture for 2018. >> thank you very much a gain of 170 on the close we'll have those earnings coming up we have an exclusive with the ceo of airbnb and what happened on this date back in 1980? we'll go over that on the second hour of the "closing bell. welcome back to the "closing bell." i'm michelle caruso-cabrera in for kelly evans and bill will join us in a second. here's how we're finishing on wall street. dow joins, a gain of 163 points. as we've been highlightering, it had been up more than 300 points earlier. the s&p 500 also in positive territory. nasdaq went negative along with amazon it's so heavily weighted with amazon so goes amazon, the way the nasdaq goes. joining us on the panel we have
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stephanie link, rob cox, global editor of reuters breaking news. stephanie, what do you make of today's market action? bob pisani highlighting the cyclicals in the lead today. that would suggest people have strong thoughts. >> that indicates the data is good it's also worked in addition to the cyclicals has been the f.a.n.g. stocks and technology symptoms technology has been a big leader of the s&p 500 75% of the gains in the s&p 500 year-to-date have been because of the technology sector so, you have two groups that are working. the group that's not working are the bond proxies they did work today. i think they got oversold. but i think the composition in the sectors that are working suggest to me that underlying fundamentals are very strong what's going on in the macro is just the unknown the unknown about inflation, the unknown about rates, the unknown about the fed.
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i think that will play itself out and i think people will return to fundamentals. >> who put the penny on my desk? >> i did. >> you want my thoughts? >> i want your thoughts. >> rob cox, we were talking with all the volatility lately, do you think it's the kind of market trying to put in a top or bottom what do you think? >> i think it's a market trying to figure out the price of money. we've had -- i think we have like the second largest auction of treasury bonds in six years this week. so we're testing demand. yesterday people people were freaked out about fed inflation. if you're thinking about it from a big picture basis, which i try not to because big is head for me to get my little head around, you have this tussle trying to figure out what the actual cost of money is in a world where the fed is not the primary buyer of
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treasury bonds and you have equity risk premium, you have to use that input to see what stocks should be yielding for you. we're in this tug of war i don't know, i'm not sure but it seems to be fascinating to watch the stock market play this one out. >> you're somebody who manages money. you have to figure out if the ten-year starts yielding appreciably more, doesn't it start to give competition -- why would i invest in a risky stock when i can get more in a bond. that's the tradeoff every person asks every day along the continuum of where interest rates are going to go, right >> right but rates are still quite low. 3%, 3.5%, even 4%. >> what's the rate yield - >> 4% is when you stop and
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pause. >> art cashin said 3%. >> i'm going to say fundamentals remain really strong i mean, earnings growth, 15%, revenue growth in the last quarter, 8%. these are good numbers the guidance is really good. i just spent the last two days listening to companies in the industrial sector at a conference and it's cat, united rentals, across the board these companies are saying very good things about the economy, about the global economy now, i get rates are going to have -- are going to play a factor at some point >> they may go up because of all the things you are saying right now. >> right because the reason rates are going up, i believe, is because growth is stronger that is going to bring inflation. >> does that mean you've -- would you then avoid all the bond proxies. >> well, i have, for sure. because they're not cheap. utilities are not cheap. consumer staples -- by the way, we just had cagney, the conference this week, and i think it was one company after another talking about pricing
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pressure and weak, organic growth you're sending 0 to 1% growth and they're trading 20 to 24 times estimate there is m&a activity which is likely to occur. they're not cheap. and they're not going to do well, i don't think, as the global economies do a little better >> when interest rates go up. >> what rate on the ten-year do you think starts to crowd out the market >> i think it's starting to happen again, the world's trying to understand what the price of money looks like and how -- what kind of equity/risk premium to demand from stocks that's perhaps, why -- stephanie, you're the expert on this, but high-growth companies with low-rate interest rate sensitivity, all the f.a.n.g. stocks, i mean, that may be why we're seeing a performance that we're not seeing in the rest of the broader market again, there's growth. the fundamentals of the u.s.
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economy is strong. consumers got a little more money in their pocket as a result of bonuses and lower tax rates. and they are growing with dominant market positions. i suppose that's why they're going for these guys over the interest rate sensitive ones >> technology is kind of agnostic we don't care if interest rates go up or down, particularly, right? >> when you look at the f.a.n.g. stocks, a lot of them don't actually have huge multiples except for netflix that's a huge multiple, piles of debt doesn't that one in particular seem very vulnerable in a rising interest rate environment compared to the googles and the facebooks, which they have high multiples, but nothing like netflix. >> look, if interest rates go materially higher and economic growth goes materially higher, then guess what, growth is not going to do well
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the reason why they're doing well now is because growth isn't materially higher. it's maybe 3% gdp kind of thing. and with a 3% ten-year it makes a lot of sense, in my mind, to have growth and f.a.n.g. work as well as the cyclicals based on what the undermining economy is. >> speaking of growth, we have hewlett-packard enterprise josh lipton with the details any growth there >> michelle, hpe reporting 34 cents versus expectations of 22 cents. revenue, $7.7 billion versus expectation of $7.1 billion. that q2 guide, 29 to 33 cents. the street was at 26 cents for the year they're looking for $1.35 to $1.45 the street was at $1.28. business segments, hybrid i.t., up 10% intelligent edge, so networking products and support, $620
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million, up 9% i did have the chance to speak with new ceo antonio nari about the quarter. one question, michelle, for traders and investors, is there going to be a strategy shift now that antonio neri is the man in charge taking over for meg whitman. mr. neri telling me, we should not -- we would not be here if it were not for meg's leadership in the last 6 1/2 years. she put us on a great path and a division strategy we have in place is something that meg and i worked together on with the board last year. i am excited about the opportunity to take this strategy forward and accelerate it in addition, michelle, we should mention given tax reform, the company is now announcing plans to return $7 billion to shareholders through 2019 in the form of share repurchases. they're also going to see a 50% dividend increase starting in q3 and they say they're going to increase the company's 401(k) matching contribution. i asked mr. neri, in addition to
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tax reform have him thinking differently about m&a in the quarters ahead he said, when we think about m&a, i think about the right price, the right talent that adds value to what we do if there's a right target, we'll analyze it obviously, we're more biased to share repurchases and dividends. switching gears here a bit, i want to bring you hp's results they're out as well. hp is reporting eps here of 48 cents versus an expectation of 42 cents revenue up 14% to $14.5 billion, versus an expectation of $13.5 billion. for their q2 guide, michelle, they're looking for between 45 and 49 cents the street was at 44 cents and for the year, they're now looking for $1.90 to $2. the street was at $1.81. as for their business divisions, personal systems group, $9.44 million. better than expected printing, $5.1 billion, also better than expected i checked in with ceo about the
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quarter. i wanted his take about the pc market in 2018 mr. weisler saying, still only one out of the five computers in the world have an hp logo, which means four out of five haven't experienced the engineering amazement we have. i love that $334 billion business where i only have a fifth of it today and our ability to execute well in it through innovation is awesome. also asked him, how are they thinking about tax reform, what it means for capital return and m&a. the company's cfo telling me, our first priority is an investment-grade credit rating which will mean some of the cash will come back and we will pay down debt, but we expect there will be an opportunity to do incremental returns to shareholders our stock price from our perspective is very attractive guys, back to you. >> thanks very much, josh lipton. >> remind me again why they
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split up >> to create shareholder value. >> wouldthy not have done this well if they were together still? you think? >> i don't know. >> it would be easier to figure out between the hpe and hp. >> up 12% on hpe. >> it's already up 16% on the year so another 12% and it's not expensive at 14 times forward. you have a new ceo everyone wanted -- >> up 15%. >> and everyone wanted to know what they were going to do with the cash that's what we've been hearing from the technology companies, different companies in general that's a big gain. they had a 2 billion buyback program in place they're going to 7 billion in total buybacks and dividends that's a big number. they have a cost-cutting program under way. by the way, i.t. spending from enterprises has been off the charts from all kinds of companies. i mean, just last week we have cisco. not surprising, but the valuation certainly is attractive enough. clearly, that's why you're seeing the results. >> rob cox, we're seeing the effect of the tax cut, what they're going to do in terms of
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buybacks and also employee matching when he talks about $7 billion of returns to shareholders >> yeah, they also, as stephanie point out, i mean, they are the beneficiary of capital investment so, when everyone buys and upgrades their computers, i look around our office here at reuters, and finally they're doing that i'm not sure if they're hp or dell but you get an idea. just to your point about the breakup, i actually think this has been a fantastic example of how to runs companies more focused, incentives that ring through the whole organization meg whitman gets a huge hats off from my perspective. as one of the few executives out there who rather than building her empire, winnowed it down i hope there are more people like her in corporate america. >> more nimble. >> both are booming, especially hpe. more earnings, this time from
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red robin. how did they do with the burgers? >> beat on top and bottom lines. reporting adjusted eps of 78 cents, a beat of what the street was expecting revenue above estimates for $340 million. comps a nice beat, up 2.7% for the quarter. the street was looking for 1.1% gain they said they opened 18 restaurants and they'll continue to invest in technology in 20189. they're seeing demand for customers from that. the stock is up by nearly 5% we're also going to give you wingstop also a strong quarter for them reporting adjusted eps of 17 cents, a one penny beat. revenues of $28.3 million. that was a beat. the street was forecasting $27.6 million. comps for the entire units across the country, up 5.2%. also reiterating low guidance, single digit comp gains and their effective tax rate for 2018 will be 23%
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that stock is down by around 6% right now. >> yeah. why is that? >> why >> do you see anything there >> it all sounded good. >> the stock is up 28% year-to-date after they refinanced their debt and after they announced a special dividend very high expectations i'll have to see where margins settle out on red robin, the opposite, down 6% on the year so, expectations were quite low. >> you want to weigh in on why we're seeing the moves in the stock? >> kate? never mind don't worry about it. >> rob cox, what about you fast casual and fast food, we've been in a bit of a restaurant recession. a lot of haves and have nots what do you make of these reports? >> honestly, i haven't looked at them long term, i just don't understand why people invest in these things or eat at these places so, i'm the wrong guy to ask
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even though i might look like the guy who goes to red robin. >> are you a food snob where do you eat >> i try to eat healthy. >> isn't that a whole protein craze in america right now people feel justified eating burgers and -- >> i guess so. >> they even advertise soup as being high protein. >> i think a lot of companies are doing delivery, off-premise work and i think that's truly a trend that is benefiting a lot of companies. >> in many cases they're much more focused on customer service than they are on the food content. >> absolutely. >> but it's working for red robin, apparently. >> thank you, guys thank you, ladies. >> do i get to keep the penny? >> you got the penny. >> rob cox, always good to see you. >> pleasure to meet you. a lot more ahead on the "closing bell. >> announcer: straight ahead -- is the prediction that the corporate tax cuts will be spent on stock buybacks? today we're starting to get some answers. we'll have them next and the big mistake many smart
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and sophisticated hedge fund managers just made see how not to follow them into this expensive hole. coming up on the "closing bell." verothe new york stock exchange i was in my third tour in iraq
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when my vehicle was hit by an ied. i looked down and i knew i was out of the fight. but playing for team usa has been a second chance to represent my country. i get to show my children and the world that, yeah, i might have been knocked down, but i'm up, and i'm honored to be able to represent the flag. comcast is grateful to all who have served our country, and we're proud to bring the 2018 olympic and paralympic winter games home to everyone.
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we've got an earnings alert on intuit. >> beat expectations, 35 cents adjusted, $1.7 billion they saw a rise in turbotax units. second quarter subscribers up for quickbooks but guidance has weakened, that's why we see the stock down not encouraging gwynn that we are in tax season right ahead of tax day on april 17th. third quarter earnings guidance, $4.77 to $4.62 adjusted. again, that is disappointing you're looking at the stock down 4% it was down more than 6% in extended trade back to you. >> remember h&r block ceo said they usually do well when there's tax reform of some kind. this is rather odd. >> in theory, remember, we heard we were not going to need h&r
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block anymore. donald trump said it would be -- >> oh, yeah. >> yeah, sure. >> postcard, we were going to mail it in on a postcard. >> i remember when don regan was treasury secretary and promised tax simplification back in the 1980s >> it may be a postcard, but it will be as big as a billboard. >> hold on one second. >> we've lost control suddenly president trump promised corporate tax cuts would boost economic growth so what are companies actually doing with that tax cut windfall? morgan stanley says they'll use 43% of their tax savings for buybacks and dividends 17% for capital expenditures in addition to comments on market volatility, economic adviser chair kevin hassett was asked about these various statistics at today's white house briefing, referring to repatriating funds from overseas here's what he had to say. >> with that money coming back,
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right now we'll have an adjustment where you see probably more dividends and share buybacks than wage increases because that's cumulative earnings. but going forward we'll see wage growth. >> joining us is larry kudlow, cnbc weekly contributor. and our good friend, jared bernstein. a cnbc contributor good to have you here. larry, weheard so much talk about how wages were going to go up as a result of tax cuts to corpses. seeing all these buybacks, does that dishearten you? >> no. look, wages are going to go up a lot. the estimates -- i don't agree with some of these wall street estimates. kevin hassett has the story rig right. they're estimating $4,000 higher after-tax income for working people share buybacks, first of all, investment projects are roaring. we're on the front end of the
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biggest investment boom in 20 years. last point on share buybacks, i don't understand, why are they bad? here's the benefits. >> come on, you know why they're bad. they're not bad but isn't there something better they should use that money for than buying back their own shares >> they're not investments. >> rallied 40%. >> the shares go from the sort of corporate lockbox into hands of ordinary investors who will probably invest the money more wisely that money may go into new investments. share buybacks raise prices of stocks, if you buy that view you've got 54 million people who own 401(k)s, 12 million people who own education savings accounts, and 43 million who own i.r.a.s. that's 109 million people who will benefit in their 401(k)s, et cetera, by share buybacks and, because i know this
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interests jared, labor unions, particularly government unions, whose money is invested in pension funds, who are 70% invested in stocks, the labor unions are going to get the biggest windfall and the only chance of refunding their pensions is that they should be cheering the stock market. >> he teed it up for you. >> i feel so much better now look, i argued with larry and folks of his ilk, not quite as loveable as him, about this endlessly during the tax cut debate what he told me is there is a chain of events. that chain leads to higher after tax profitability, more investment, higher productivity and higher wages i argued there are a lot of weak links in that chain. it's too soon to evaluate it one thing larry didn't say and other supply siders, they diplomat saythy were going to see a bunch of stock buybacks. if you believe the supply side
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of the story, that's another link in the chain. >> jared. >> yes >> what's wrong -- >> hold on. >> just tell me. >> i'm just -- >> not that there's anything wrong. >> i'm asking an honest question if the - >> hold on, larry, let me make this point there's nothing -- >> the people aren't going to benefit. >> there's nothing necessarily wrong with share buy backs at you have the wrong people benni benning. i'll get to that in a second it's not the wage story you and hassett have been telling. it's a linkage story 80% of the stock market value is held by the top 10%. don't tell me this is some boon to wage earnings you're changing your story you're moving your goalpost. >> no, i'm not look, first of all, i believe share buybacks only initially will jump, as kevin hassett said because of the repatriation money. >> you may be right. >> i also believe we're having a huge investment boom, we're on the front end. this is fixed investment which hasn't moved in years.
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in fact, in 2015 and 2016, the last years of president obama, it was zero. year-on-year it's running 6.5% and it's spanning the horizons business equipment, intellectual property that's an investment boom. i'm not going to deny that with respect to share buybacks, look, that money that goes from the corporate lockbox to individual investors, $109 million plus union benefits, that money is not put in a mattress it's put to work to circulate through the economy. it reoxygenates the economy. i think you're going to get it all. you're going to get the buybacks, the investment projects, you'll get the wage increase >> the one thing we can all agree on is something you said, jared, it's way too soon to try and decide whether this stuff is going to lead to higher wages. >> but that's never stopped -- >> you have to be honest about that and look at the numbers so far you have -- i saw some numbers yesterday. $170 billion in buybacks, $6
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billion in bonuses and wages that's the kind of division we're looking at now the wage story that you're telling has to be keyed off an investment story i appreciate you're citing the investment numbers it's just that we don't have any investment numbers yet for this time when the tax cut has been in place >> apple alone - >> you have to wrap up >> apple alone - >> apple - >> jared, thank you. >> thank you >> let me say this - >> no, we have to go, larry. >> please, please, please. look, jared and company had their way with the stimulus package in spending. it's now our turn. give us a chance and if -- >> i said it's too soon. to judge you. >> thank you, guys >> give us a chance. >> who's going to pick up the check when you have lunch? reits leading the way today. coming up, we'll have the "fast money" trade on whether you should be buying into that sector with interest rates on the rise. plus, is airbnb on the road to an po we'll ask the startups
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co-founder we still call it a startup >> i guess creating the world's first state-of-the-art drone testing facility in central new york and the mohawk valley, which marks the start of our nation's first 50-mile unmanned flight corridor. and allows us to attract the world's top drone talent. all across new york state, we're building the new new york. to grow your business with us in new york state, visit people don't invest in stocks and bonds. they don't invest in alternatives or municipal strategies. what people really invest in is what they hope to get out of life. but helping them get there means you can't approach investing from just one point of view. because it's only when you collaborate and cross-pollinate many points of view that something wonderful can happen. those people might just get what they want out of life. or they could get even more.
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what they want out of life. two,that was awful. why are you so good at this? had a coach in high school. really helped me up my game. i had a coach. math. ooh. so, why don't traders have coaches? who says they don't? coach mcadoo! you know, at td ameritrade, we offer free access to coaches and a full education curriculum -- just to help you improve your skills. boom! that's lesson one. education to take your trading to the next level. only with td ameritrade. airbnb is overhauling its business deidre bosa is in san francisco with a first on cnbc interview with airbnb's co-founder >> thank you we have nathan blecharczyk big news, you'll have more hotels on the platform, and your
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loyalty program, which was very well received by those in the theater today. you hit a nerve with industry players, the industry group that represents hilton, hyatt, marriott, put out a statement kaug the boutique program a scheme saying it's further proof the company is trying to play in the hotel space while evading industry regulations they say if you want to enter this business, it needs to be regulated, taxed and subject to the same standards that's a harsh response. how do you respond >> they've been very creative in their objections to airbnb what they like to distract from is we have agreements in place of over 300 governments around the world, around how to do home-sharing responsibly we collected and remitted over $500 million of taxes in partnership with cities. so, listen, home sharing is a new phenomenon we agree there should be rules we worked rules out with 300 governments. more to come definitely a very response iible
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way to do that and i think we've shown ourselves to be a responsible actor. >> you're abiding by the regulations you think you need to right now, which is different than the hotel regulations >> and recognizing the fact that regulation does need to evolve where new regulation has rolled out, we've done that in partnership with cities. we worked with san francisco to enforce their rules and create a high degree of compliance. >> at the same sometime you're letting more boutique hotels list on your site. does that mean we'll never see a hyatt or marriott room on airbnb's platform? >> airbnb is about unique, authentic and local experiences. most often on airbnb that's offered by an individual host renting out their home, but there are bed and breakfast and boutique hotels doing this prior to airbnb. those types of hospitality providers are welcome onto our platform they are generally different than the large chain hotels that don't do that. this is not about one or the other. it's about the kind of experience that's being
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provided >> right >> now, i know your other co-founder threw cold water on ipo speculation for this year at least. but you also saw management shakeup. a lot of people were banking on lawrence to take the company public how do you reassure investors that you have someone familiar with wall street to take you guys public and when does that happen, if not this year are you feeling some pressure to go public? you have been private for, you know, ten-plus years >> well, the company has never been stronger. in 2017 we were profitable as a company. we grew over 50% and the outlook for 2018 is quite great. we have an ability to attract talent here so i think we'll have no problem finding another very accomplished cfo. we never planned to go public in 2018, despite all the speculation. so, there's really no change to the plan and there will be an ipo eventually we don't comment on that and we don't think that's a real hallmark of our success. the success has to do with our
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announcement today, which is how do we take airbnb gusts to a billion and more and the innovation. >> i saw it. great response from your hosts, many in the audience. >> a passionate bunch. >> thank you >> back over to you guys. >> thanks for bringing that to us. we have an earnings alert on planet fitness with seema modi. >> we talk about millenials ditching the gym for boxing and yoga but earnings from planet fitness suggest otherwise. stronger than expected earnings growth beat on bottom line by a penny, 24 cents adjusted. revenue higher than expected increased its buyback program by $80 million. for fiscal 2017, total revenue increase from the prior year by about 14%. systemwide same store sales increased 10.2%. the company says this is a testament to the growing strength of our brand and the appeal of our affordable nonintimidating fitness offering back over to you
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you're looking at the stock up 8%. >> big move there. thank you very much. you still do hot yoga? >> no. i do a lot of other stuff, though >> i want to hear about that >> time for a cnbc news update with courtney reagan. >> hi there. here's what's happening at this hour the fbi says it's taking steps to ensure that tips about potential warning signs are assessed in the future this after admitting it failed to act on a tip about the alleged shooter at a parkland, florida, high school senator lindsey graham leading a bipartisan delegation of seven senators to israel holding a press conference in jerusalem. he says there is no substitute for the u.s. to broker peace between israel and the palestinians >> there's no substitute for the united states. there is nobody going to take the united states' place when it comes to brokering between the two sides. we have done more, the united states, with people -- with the palestinian people than any other arab country i can think of we spent a lot of money and a lot of time trying to build up the lives of the palestinian
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people >> today is national margarita today. to celebrate the selena rosa restaurant in new york is offering the most expensive margari margarita, the silk stocking margarita, that costs $2500, served alongside caviar tacos. that's the cnbc news update. >> whose idea was it to make it national margarita day during lent >> that is a good one. you're right. >> what is that all about? it's want even may 5th. >> not cinco de mayo at all. >> that's the way it should be. >> did you give up liquor for lent >> i don't give up anything. >> i give up liquor during lent. >> i gave up instagram and facebo facebook >> wow that's hard. >> it is >> thanks, courtney. and you haven't heard what they said about you. >> i know. >> see you later apple shares rallying despite new data suggesting smartphone sales are declininde. "fast money" trader karen
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let's take a look at how we
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finished wall street until noon the dow was up 358 points looked like we were off to the races and then pulled back, finishing up 164 the s&p up a little over two points nasdaq and the russell were lower in today's trade. >> let's get to some of the other big stories of the day in our rapid recap. futures modestly in the green following that wild finish on wednesday in the wake of those fed minutes. >> the idea we have to go 100 basis points in 2018 accidents that siltz lugs a seems like a lot the economy would have to surprise in the upside a lot of time. >> in a few moments the falcon 9 set to take off from california. >> three, two, one >> it's time to create a more per messes ive regulatory environment so u.s. is country.
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>> shares of roku it missed its forecast. >> day-to-day stock trading is based on a lot of factors. there is no doubt we are the center of a huge shift in television moving to streaming and it's a great position to be in. >> big rally right now the dow soaring triple digits. a gain today would help the nasdaq avoid its first four-day losing streak since november of 2016. >> dow jones industrial average finishing higher, triple digits. a gain of 163 points >> let's take a check on apple it is up 11% since february 9th, around the time the market bottomed you remember that crazy friday there's a new report that says global smartphone sales have fallen for the first time since at least 2004. joining me is karen finerman who recently bought apple for the first time are you worried about this, smartphone sales may be peaking out? >> yes, i'm worried about it i'm always worried about it.
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for a company like apple - >> you're a mother. >> impactly. so, i think that's not a great thing. however, there is more to the apple stoerl besides just the iphone x we didn't see a full quarter of iphone x in there. that might be a little skewed, those numbers. >> i'm curious, and don't take this the wrong way, what took you so long to buy apple >> i actually did own it years and years ago. >> oh, you did. >> and then it was, oh, i missed the bottom and feeling like an idiot, which is dumb because it doesn't matter where it trades it just matters every day, do you want to own it then? i got lucky on timing because that market provided an opportunity to buy it after expectations had been lowered. >> do you take comfort from knowing it is now warren buffett's largest holding. isn't that crazy >> that is good. at he has occasionally made missteps, ibm or -- so, that is good that helped a little bit the services part of the story even if the iphone -- even if the phone part of the story
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isn't as robust as it could be, the services part is helpful. >> that gives you comfort because so often people have said, oh, they're a one product company, they're so reliant on that iphone. you're comfortable enough with the growth and services revenue thus far that maybe it can be a true offset? >> i think it can be a true offset it's better revenue. it's definitely less lumpy i think it could be a growing part of the story. it's not so much yet, but it could be. >> the argument is if that happens, they start to get evaluation as a software company rather than a hardware company, which means thetd get a bigger multiple the market's never given them a big multiple, ever. >> and understandably so. >> they've been conservative in their guidance. >> and we've also not seen them do anything with that giant cash hoard until recently we'll see more from that that could be somewhat of a floor as well. you're right, that part of the story to me hasn't played out yet, the shifting multiple you get from higher revenue that's from services. >> i'd say we'll see what's on
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"fast money" but we'll wait until monday. >> are you anxious to get back to work? >> i love the olympics but i'm ready to get back to work miss melissa, the guys. >> melissa isn't back next week. >> one financial giant firm is responding to its criticism -- to criticism of its ownership of gun stocks. >> a major bank is preparing to end its relationship with the nra, the national rifle association. both breaking stories coming up xtn e longel ine oth"csi bl"n two minutes. [fbi agent] you're a brave man, mr. stevens. your testimony will save lives. mr. stevens? this is your new name. this is your new house. and a perfectly inconspicuous suv. you must become invisible.
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[hero] i'll take my chances. what's critical thinking like? a basketball costs $14. what's team spirit worth? (cheers) what's it worth to talk to your mom? what's the value of a walk in the woods? the value of capital is to create, not just wealth, but things that matter. morgan stanley everyone has a thing. that binge watch over the weekend thing. more checking in.. or checking out things. no no no no no no no. that triple-double thing. doing it yourself or tagging a friend thing. more revolutions in the making thing. that play like a girl thing. that four-legged friends thing.
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okay as promised, we have some news now on the national rifle association. courtney reagan, tell us about it. >> hi there, bill. the first national bank of omaha says it will not renew its contract with the national rifle association to issue its nra visa card. now, the card had been marketed as, quote, the official credit card of the nra. and while there was no formal announcement about the decision, the bank tells cnbc, quote, customer feedback has caused us to review our relationship with the nra this comes in the wake of florida school shooting and the debate over gun ownership remains a focus. >> thank you very much, courtney comes on the wake of andrew ross sorkin's call suggesting that banks could do exactly this. and leslie here with blackrock talking about ownership of gun stocks. >> right this is something clearly the
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whole finance industry is keenly focused on as many other industries -- blackrock is the major owner in ruger and vista, they hold them through etf and index mutual funds, passive investing products today blackrock out with a statement defending their ownership telling cnbc, quote, index providers are responsible for the construction of their indices. as as a result, we invest in a company as long as that company is in the relevant index the firm goes on to say that they don't have the ability to sell shares of a company in an index even if they disagree with management but they can focus on engaging with company and their impact on society. blackrock goes on to say, quote, we will be engaging with weapons manufacturers and distributors to understand their response to recent events. in response to client inquiries, blackrock says, we are working with clients who want to exclude
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from their portfolios weapons manufacturers or other companies that don't align with their values blackrock manages more than $200 billion in portfolios that carve out certain types of companies, be it tobacco manufacturers, oil companies or gun manufacturers blackrock manages about $6 trillion total. >> what's interesting about blackrock is larry fink just sent out that letter about social responsibility. how corporations need to do more and this may look like he's saying, not my problem >> exactly i think that's one of the reasons they have come under fire they put out that letter and one of the main tenants of that letter is to deploy their corporate governance team to do things like this and to engage more with management if you're a passive owner of a stock because it's in an index, there isn't as much you can do because you don't have that power to sell. >> now, okay, i was going to ask you about that because last hour we talked about this and i think you suggested that if you are unhappy with where the money is going in a particular index
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fund, you can ask to taylor make your own fund. >> yes if you were an investor in an index fund, you can taylor make your index fund. if you're blackrock and you are managing those index funds and etfs, you have to mirror what's in the actual index. unless a client is coming to you asking specifically for their own customized etf or index fund - >> how prevalent is it for people to be able to do that >> they said $200 billion is done in portfolios of these customizable solutions. >> that's interesting. >> so $200 billion is a lot but out of $6 trillion, not a lot. >> a rounding error. it's been a busy hour for earnings we'll recap some highlights when we come back ♪
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okay let's show you how some of the companies that have reported earnings in the past hour are doing. >> wow. >> the business winner had been hewlett packard enterprises. it was up 16 just off of that beat by a wide margin on both the top and bottom lines and some of their categories. >> red robin. >> we don't have hewlett packard on the list. but it was up 7% last time we checked. also beating at the top and bottom lines. >> red robin gourmet is in positive territory wing stop, the stock is off by 9% the numbers looked okay. >> they refinanced their debt. stiff me was talking about how well the stock had done before that time. maybe there is a pullback there.
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>>. coming up next, the captain of the u.s. men's hockey team who beat finland in 1980 to win the gold this the ledgeary miracle on ice it was such a great moment i can't wait to have him on. he is going the join us next. >> it was on this date in 1980 when that happened. >> fantastic. >> as you know, cnbc is your home for olympic curling the u.s. men face the canadians in the semifinal round coming up at 5:00 p.m. at the top of the hour first let's have the plainfield new jersey curling club take to us break. >> you are watching cn, bcthe home of olympic curling. "closing bell" is back in two minutes. st drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities.
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we are just moments away from olympic curling u.s. women eliminated from playoff contention after losing to sweden last night however, we will have the u.s. men's match in their semifinal game begins reigning champ canada they will be at the top of the
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hour don't miss it. coming up at 5:00 p.m. i have a good feeling. >> do you believe in miracles. another historic moment in pyeongchang last night the u.s. women's ice hockey team taking moment the gold, beating canada 3-2 in a shootout it's the team's first olympic title since 1998. >> coincidentally the win took place on the 30th anniversary of the miracle on ice. >> for the silver medal and then they went on to win the gold >> with us, the captain from that team who joins us from florida. not from some snowy place. mike, thank you for joining us let me ask you about something in the news. it's not ples ability. after the u.s. women beat the canadians and they awarded the medals, the young lady on canned can team, as soon as the silver medal was placed around her
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neck, she immediately took it off. clearly she was upset about not getting the gold >> wow. >> about what you do you think about that >> well, obviously, she was upset. clearly, she wasn't happy with the silver medal i don't know you never to know about the emotions that people have in moments like that. and clearly, it's something that maybe tomorrow or the next day she will regrechlt but it's an emotional game it is an unbelievable rivalry between the two countries. canada has had its way the last few olympic games. last night was our opportunity i am not a big fan of shootouts but it was nice to see the women -- i know some of the first. they have worked so hard it was good for them congratulations to them. >> mike, when you read on line, there are people who say actually the silver in hockey is considered just the most unwanted medal because you didn't actually win a game you lost a game. you won a gold medal if you had won a bronze you had
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actually won a match is it true in hockey that the silver is considered the worst of them? >> i don't know. i don't have a silver. mine's gold. i don't know if i had a silver, maybe i could answer that question >> okay. mike, i don't know if you know this literally, they just sent this to me. the stick that you used in that game just sold at auction for $290,000 did you know about that? >> good for that -- well, i sold it a while ago whoever bought it from me sold it again you know, what am i going to do with a hockey stick other than keeping it in my attic congratulations to the guy that bought that stick. >> do you mind telling us what you sold it for, i thought it went for more than that. i will have to look at my notes. but i sold a lot of my memorabilia a few years ago. i don't need the oney. things are fine with me. but i sold everything but the gold medal and the ring. and i just wanted to be able to see where my money went. and it went to my kids
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>> that is fantastic mike it's always a thrill. i mean, you guys are still, 38 years later heroes to a lot of people out there it is great to see you again thank you for joining us. >> thanks for having me. i got a ton of e-mails and tweets today i know when that date comes around. this was three days ago john shuster it was part of a


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