tv Squawk Alley CNBC October 15, 2019 11:00am-12:00pm EDT
♪ ♪ good tuesday morning welcome to "squawk alley." i am carl quintanilla with courtney reagan at the new york stock exchange morgan brennan has the morning off. jon fortt is live at the made by google event in new york with new hardware announcements expected more from jon on that in a moment we got s&p 3 k, first time since september 19th we start with libra, down to 21 partners as seven founding members depart facebook's crypto association. kevin delaney and michael ferda. good to see you. this was quick the tepid announcements of
support and poof why? >> you know, what's happening is that facebook wants to launch this currency which is basically a payment system what they've run into is sense that regulation would be aggressive parking l partners sent squish ee letters of intent and exercised their right to back out. facebook says they have 180 partners they vetted but we have seen visa, master card, stripe, paypal drop out. that's a big blow for some ambitions. >> that's the important point. that's the big point kevin made the right point basically the financial partners dropped out. the push in this area is that the infrastructure for global payments is just too darn expensive, moving money mrmr. --
whether consumer, it costs bips on bips, pretty soon you talk real money, tens of millions that are extracted from the global economy by the parties. i think all of us are rooting for something like a cheaper system, but there are questions about libra and facebook facebook proved over and over again that it is possibly not a trustworthy organization and the regulators are very much scrutinizing the organization, this proposal, because it is centralized, may mix data with privacy information for consumers, and gets money out of the hands of the gofvernment which they don't like. the main thing is the financial partners dropped out so far. >> michael, do you think facebook needs libra to succeed? >> no. facebook will be just fine that's an important question facebook will be just fine i think they have a vision if
you're already there, you should be able to move money like you move other bits. conceptually i agree i don't believe in centralized version of facebook libra vision i also don't think other things i have come to learn about the libra program from public sources, i don't think it needs libra to succeed facebook will push on this hard, you may see a payment system that starts in certain parts of the world. i think it will come to pass i don't know if it will be as global as its vision, appetite but facebook is a force to be reckoned with, i think they're going to make something happen whether the government wants it or not. >> the thing i don't understand, why did facebook not launch it as facebook credit 2.0 why go out with all of these partners, already in the line of fire with regulators, already in trouble on every continent and really stirred it up taking on central banks, regulators, taking on everybody basically. and they could have quietly
launched a block chain base payment option that you could use on facebook that they would over time build up and bring partners like stripe and master card and visa on as they got users. those guys will follow the users. >> there's that question and the broader question of why try to displace the global system of payments, why didn't you first try making sure the consumer privacy is protected or that politicians can't lie on your platform >> well, i like your question because i think it answers itself i think you're asking the right question i am not in zuckerberg's head, in sheryl sandberg's head, a facebook representative. i have been asking why doesn't facebook take privacy seriously, do these things it doesn't do. the ftc a $5 billion fine about another violation arising from practices around privacy, you probably know i said that fine
could have been if you took all the fines together, many tens of billions, more than a trillion dollars. facebook has been getting away with it for awhile on privacy and yes, i wish they asked that question i think your question answers itself >> kevin, in the beginning we talked about losing some members. started with 27, now 21. there are 180 that expressed interest if they lose more than the 21 they have, is it a big deal? >> i don't think so. this is headed where we always suspected it was heading, delayed launch, not in 2020. smart people from the beginning said that would be too tough to get by regulators. and a product that is given the amount of regulation is not super ambitious in the sense that for consumers, a lot like a checking account, will have all sorts of banking regulation around it. the players in payment space argue the block chain is not particularly good for this type of payment infrastructure. it is costly, it is inefficient.
so i'm curious what in 2021 or beyond this winds up being and how different it is effectively from the bank account that you have today. >> the bottom line to put a period on it, michael, they wouldn't have the leverage to even take these kinds of moon shots if they didn't have the engagement and stability of engagement that they clearly have we'll find out more when they post earnings in coming weeks. there's no way around that >> a lot of people on the platform, lot of people stay on the platform when the platform gets wobbly in terms of participation and consistency, they do a good job of buying the guys that are replacing their attention, instagram or snapchat or what not, emulating, copying snapchat do a good job going where the attentionis. one point of mild disagreement maybe for some people with kevin on this point, i think the objection to block change is not that it is expensive, forgive me, but that it is slow, so it
might be a similar point kevin was trying to make i think the main knock on the block chain is that it is too slow for global payment system and that's probably right. but there are a lot ofreasons to believe it could get better very, very soon. >> guys, we're going to watch it thanks for being with us congrats again on a great run. see you soon meantime, google holding a hardware event in new york city. jon fortt is there live, he has some announcements or what we can expect to come today hi, jon. >> reporter: hey, we've got them all. here's the pixel 4 the room i'm in is about to get crowded in a couple minutes, the keynote just wrapped up. we're sort of seeing the new family of consumer electronics you would have a laptop, a phone, a tablet. now it is a different class of devices as we move into a smart homer a. they've announced pixel 4 phone that starts at 799, oled screen,
motion sensor, control it with your hand without actually touching the screen. they talked about cameras and all of that. they also went deeper into the smart home and into connected devices. nest is the brand they're using more going forward you have nest wi-fi, nest mini that you can talk to and use google assistant also you've got the pixel buds that go in your ears the mobile stuff that's not in the home using the pixel brand pixel buds, 179. those will be showing up pretty soon as well spring 2020 that those come out. likewise, google is trying to use its ai legacy to build product features into that more and more they're also building more computational strength into the end device so it doesn't have to be connected to get all of the benefits among the nest products there's nest wi-fi, a mesh wi-fi system. you can play music throughout
the home using smart speakers through the google technology. they also announced pixel book go, it is a laptop for 649 you can preorder that now. it is a different sort of family of devices as i mentioned earlier, in the last fiscal year, google did about $20 billion of business in sort of other google revenues, that included cloud and a bunch of things. hardware itself wasn't a huge portion of that. that 20 billion was less than 15% of alphabet's overall revenue, a lot less than that profit this isn't about moving the stock just on the devices themselves and their revenue, it is about protecting the ecosystem, making sure partners don't take control of this sort of android plus ecosystem that google has built they're looking to move the cloud forward in ways that compete with amazon, compete with apple, compete with others who are out there, make sure they don't lose control of the
script, guys >> jon, we'll watch that obviously. big development. we would love to talk all things alphabet and google. meantime, big market day dow up almost 300 points revisited s&p 3k first time since mid september. jpmorgan, record high 121. i am saying it is phase one week, china, brexit or gm. lot of tentative agreements being written. >> it shows you how clenched up how people were because of those issues seeing some release of that. regained that final hour decline of friday after getting news about the trade agreement and a little more than that. it makes sense you mention hit 3,000, september 19th we closed above it, probably chris crossed it separate days back to july it is not obviously fresh territory but shows you some resilience, reminds me of the setup we had in april and july because you had had selloffs
prior months, people very defensive in costs, i think that fund manager server we were talking about reflects the skepticism maybe all you need is things not to be as bad how do you know things aren't as bad, ten year yield is up and up to 175 to me that's how the equation works at the moment, and the market is benefitting. >> such a big focus on banks with a number of names reporting here, even some regionals up strongly, names you don't often see with moves like this >> i think you had good results with jpmorgan, quiet and as expected then you have yields moving up and it will help even beyond that, a little rotation away from defensive stuff into cyclical. all of it fits together in terms of stocks working. they certainly represent value, represent probably underowned areas of the market. the question is not does it make sense we see this rotation, this adjustment and markup in
indexes, it is does it represent anything new, a new phase to the up side or are we getting back to full levels >> what do you think it says, we talk about the baton handed to the bulls, little easier to right today. what does it say the bears were unable to bang it below 2850 >> that was the story, even if you go back to august that you really did not see any give below those levels, and really one interpretation of that is you've gotten two rate cuts and you're getting one probably and one after that, without having to pay much for it in terms of reduced u.s. economic performance, in terms of consumer pain, in terms of any stuff, survey data, and manufacturing data all things considered, not that big a cost at some point it has to be more than that, you have to have confidence that you're going to get back towards above 2% growth in the u.s. into next year.
>> despite the imf outlook lowered again. >> lowered again a familiar story typical of something like the imf, they're looking at everything we have been looking at a long time >> got it. mike, thanks for joining us here again. speaking of which, citi, jpmorgan, wells, stick wh itus "squawk alley" will be right back i'm happy to give you the tour, i love doing it.
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big banks kicking off earnings season. citi, goldman, jpmorgan and wells fargo. >> the earnings call suggesting more levers can be pulled going forward, carl. the top line for banks this quarter is this. jpmorgan revenue up 8% wells fargo and citi flat. jpmorgan share price leading the market, citi and wells fargo have more levers to pull going forward. the theme is low and net interest margins offset by decent loan growth those two factors combined jpmorgan holding small growth in interest income year over year down 1% quarter over quarter, citi and wells fargo declined year over year
income commodity and currency tradi tradi trading gained the most focus. goldman, sachs was only in line with expectation equity trading revenue, investment banking revenue was in line for most of them goldman, sachs shares down, despite headline revenue being in line. they missed due to lower than expected buy backs, softer investment banking revenues than expected we reported earlier that jamie dimon sounded more cautious. he was still confident about the u.s. consumer. here's the citi citi ceo. >> we saw them revise growth downward i would describe that as more of a catch up to where many of us had been than necessarily any new information. 3% global growth not as high as we would like it to be, but 3% global growth is still growth
>> bottom line, while revenue environment may be getting tougher, the market is saying most banks still have levers to pull to keep eps growing for awhile to come guys >> thank you, very much. we'll continue to follow it all day with your help. shares of roku and amc are surging. julia boorstin has more on the moves. >> roku shares up 7%, bringing the year to date stock gains up 317% today's move higher is on news of apple tv app available on roku streaming players, apple tvs. roku users can immediately use the app to rent, buy movies, or watch those previously downloaded to apple tv starting november 1st when apple dvd plus launches, roku users can subscribe for $5 a month roku will presumably earn a cut from that.
amc shares are also surging, up 4%, on news the theater chain is moving to streaming, launching a service called amc theaters on demand this service will enable members of amc stubs rewards program to buy or rent 2,000 movies from all of the major studios the idea is to generate a new revenue stream, build loyalty when movie goers have so many other options. spending on the surface earns points for stubs members to use for in theater rewards this does not close the three month gap between theatrical release and home distribution, but could be a possible first step in that direction >> thank you, julia. streaming wars, all of the competitors continue to heat up. s&p is hovering around 3,000 mark more on today's rally when "squawk alley" returns in just about two minutes from now
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winds have been increasing for big tech as you know federal investigators looking at amazon, how its revenue they make from marketplace versus competitors. house small business committee expected to invite amazon to a hearing next month worth noting close to half amazon's online sales do, in fact, come from small business joining us, amazon vice president of small business, nick dennison. good to have you. >> thanks for having me. >> there's been a long-standing debate about the relationship between small business and amazon to what degree is the company interested in trying to change that sentiment >> as you pointed out, over 50% of everything sold on amazon actually comes from small and medium size businesses, you know, so i mean their success is our success, and so we're definitely focused on doubling down on that we have over 1.9 million small and medium size businesses in the u.s. that work together with amazon to conduct business
they include sellers, authors, skill developers they're just an important part of the consumer experience we serve up and the 58% i called out, actually that part of the business is growing faster than first party business we definitely have interests aligned with small business on all fronts. >> nick, it is clear obviously that good business can be done online on amazon for small and medium businesses but there's a sentiment concern for some cnbc had a third quarter survey monkey small business survey of 10,000 people, increasingly americans are starting to think amazon is bad for small business, specifically in the survey had risen from 37% to 59% in two years. what's your response to that >> well, 58% of everything bought is from small and medium size businesses, many customers don't realize that last year we launched store fronts to shed a light on small businesses today, we're excited to announce
small business spotlight awards. we're continuing to shine a spotlight on many of the exciting small businesses, share their stories. today we're announcing 18 finalists across three categories there's small business women of the year award, entrepreneur under 30, and small business of the year award we asked our sellers to nominate themselves for the process we had over 1300 nominations since this is the first time we did it, didn't know what to expect starting today, customers can vote until november 8th for their favorite small business in this category. one thing we learned, customers like to learn about small businesses, about their stories and other small businesses get a lot of inspiration from small business we're excited to have sellers on the journey with us. we're also conducting two live seller events in the u.s. today where we are enabling small businesses to meet customers, meet new customers, to conduct a sale i want to call out, one of the
nominees, one of the finalists in the small business of the year award is danforce toys and puzzle multi generational company in business over 40 years, they manufacture wooden toys in missouri now they found their way online. with amazon they're growing. great to see those types of companies. the winner gets an $80,000 reward we're excited to have them grow and prosper on amazon. >> what do you think the biggest in hib tore, keeping small businesses from launching a platform like amazon. >> one of the things we hear is it is not easy to find skill sets to drive an online business, in particular, businesses that started off line that's one of the areas we are looking at, how to help small businesses on that front stay tuned on that >> nick, if i can, i have been told 95% of all purchases end up
happening from the very first page of results that come up so if you have small businesses that are on page 13 of the search, it gets hard for consumers to wade through that do they have to pay for advertising to boost up to get traction they need to find success in amazon because of the volume of products and sellers that the site currently has? >> i am glad you bring that up last year we launched amazon store front. store front is a shopping experience where customers can dedicatedly shop from local small businesses, in other words, in the u.s., all u.s. based small business when we opened the store front last year, a little over a year ago, we had 20,000 sellers to date, we're excited to announce we have 30,000 sellers. we developedspecial technology for them to share more content they can share their story today we've got 30,000 of these sellers. those sellers have reached 70
million customers in the last year sold over 250 million products i think the numbers speak for themselves that we really are helping and that small businesses can get discovered on amazon >> nick, your size as a company makes you a target as i'm sure you understand but certainly the more you talk to us and others, the better people understand the story. we thank you for coming on please come back >> okay. thank you very much for having me >> the vp of small business. european market will close in about 60 seconds. seema mody has a breakdown >> significant gains in europe 52 week highs for the uk, germany, france, italian stock market this comes after brussels' chief brexit negotiator says a deal is possible ahead of a key summit this week. in response, the pound is rising not just against the dollar, five month high against the euro, losing steam the last few minutes. turkey, a big story in europe, u.s. unveiling sanctions in
response to military operations in syria the white house hiking tariffs on steel to 50% from 25% and immediately halting trade negotiations the country the international backlash on turkey encouraging continues to grow this morning, russia says the assault is unacceptable. companies are responding too volkswagon halted a plan to invest $1.4 billion and build a car factory in the country a company spokesperson says we are carefully monitoring the current situation and look with concern at current developments. look at the currency, turkish lira higher on the day, noting u.s. reaction could have been stronger, the lira remains down 11% against the dollar this year also put the spotlight on european banks that have exposure to turkey some of the names include spain. back to you. thank you for helping us take care of the international headlines. time for a news update
sue herera has that. hi, sue. >> good morning, courtney. good morning, everyone here's what's happening this hour deputy assistant secretary of state george kent is on capitol hill to testify in the impeachment inquiry against president trump. he is expected to discuss a campaign by rudy giuliani to pressure ukraine into investigating former vice president joe biden. british prime minister boris johnson welcoming nato chief to 10 downing street. after, he expressed serious concerns about the consequences of turkey's military incursion into syria >> i am concerned about how this can further escalate tensions in the region, how we can further destabilize the region and human suffering. it is extremely important to preserve gains walmart in home delivery service pilot program launches
today. associates deliver groceries, put them in the refrigerator one time access code to unlock the door or garage through an in home app will let them in. you are up to date that's the news update this hour guys, back downtown to you >> sue, thanks very much. we are back after a quick break, hovering below session highs at 29.99 dow up 277 don't go away woman: my reputation was trashed online.
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welcome back to "squawk alley. the tech sector within less than a half percent of a record close. we'll see how we end the day matth matthew perrown and brad sinkerland matt, brad, thank you for joining us here today. faang helped lead the way, largely higher do you think that faang is the way to play the trade continuing if we're looking at growth continuing in these names, matt? >> we think there is a good growth path for a lot of the names. i think it will be more selective than it has been in the past focus on innovators, delivering value to the consumer or business, end market, also to shareholders i think the market will be more did i certaining about that going forward. >> when you say innovators, call out anyone specific? >> google and faang, the profile and company we like to invest.
innovation, delivering strong returns, durable, secular themes they're playing. >> brad, what do you think here, do you think there are regulatory hurdles we need to be aware of thinking of the biggest of big tech names, what is priced in, if anything >> that's right. we're entering a period of increased government regulation, both here in the u.s. as well as in europe. and that's probably going to last a couple of years definitely widens the range of outcomes for some of the market leading platforms. i think in particular for alphabet and their subsidiaries, for amazon as well as facebook, i think beyond that, the growth of platforms is largely intact, but likely to inhibit their ability to expand to new markets. facebook and their difficulties with libra is a good example of regulatory push back, something to keep in mind on big platforms going forward. >> you know, semis are always a tough thing to understand.
so global supply chain dynamics, smh at an all-time high, nvidia leading on price target increase wonder where you think we are. do you have to make a call on the cycle to invest in some of the names? >> yeah, i think again if you focus on the innovators, you less have to make that critical call as to where we are in the cycle. so you want to focus on ones that are riding secular themes, increasing content in autos, or on the equipment side, eu, like asml you want to be on the innovation side, then less of a cycle to deal with. you still have cycle to deal with, inventory in the cycle, we have to be mindful of that we like that sector long term again if focused on the innovators >> i also think of what's going on in the ipo market with tech names.
you had some successes, also a lot of failures. do you think that dampens the overall environment for an investor looking for a tech company that's particularly innovative >> what it is is volatility creates opportunity. a lot of recent ipos underperformed together. there hasn't been a lot of discrimination in terms of what might still be an interesting business with a lot of opportunity. i would point to uber and lyft as examples of companies creating new industry, transportation as a service with a lot of opportunities, both those companies, uber with the uber eats delivery, and integrating meal delivery and cloud kitchens you have to sift through the rubble you'll find a lot of opportunities. i think the market is wide open for ipos to come out some of the headlines recently dampened expectations a little bit. that's probably a healthy thing. >> matt, brad, we'll leave it
there. the tech sector is higher and we get close to a record close. getting news alerts on goldman and wells as those calls are ongoing. wilfred frost has it >> i only listened to one of them, go with the goldman headline in particular, the fact that they announced they took an $80 million write down as relates to exposure to wework that comes in the investment and lending business and i believe based on what they said so far, that was there for the private stake they already had in the company goldman as well as often running company ipos, invested in them in an earlier stage. $80 million write down is based on that. earlier, jpmorgan said their financial exposure at this stage was minimal. goldman, sachs, see if more color comes on that in q and a couple other things to point out on the goldman call, one that helped support shares from lows they were at earlier in the
session is aura, dipped below 10% this quarter, expecting the average is above 10%, should get back to that coming up also they said the reason they suspended scale of buy backs during the quarter, a quote from the cfo, saying they've's begun discussions with some governmental authorities with respect to resolution of the 1 mdb matter perhaps therefore a hint they're getting closer to sorting out that particular issue which would be a huge relief to shares if and when they do. need to get back on q and a for specificity. >> all right thank you very much. keeping us honest on some conference calls from the banks. back to jon fortt at the made by google event in new york city what's the latest? >> reporter: carl, it has gotten more crowded here. phones tend to be the flagship i want to talk about phones and laptops. once again, here's the pixel 4 there's also pixel 4 xl.
one of our favorite websites here, led screen, multiple cameras on that. all of that is standard at this point, but where is google stacking up against the competition? in the u.s., the argument is out there from researchers that they're number three overall, that they're growing but way behind apple and samsung globally they're not on the chart. a lot of chinese smart phone makers are doing higher volume the question is what is success in this sort of market environment? it used to be hardware was just a quagmire you have such potential to lose real money inventory and although jes particulars headquarters now we have companies that huge trillion dollar kol as he is can look at hardware almost experiment with it like software how hard are they willing to push, how many marketing dollars
willing to spend to try to crack into the global market with this in a significant way that would cost real money not talking laptops. they announce a pixel book go. they call this a laptop. it is not running on intel based on x 86 processors, doesn't have windows. they don't even mention the processor. now they call it a laptop. years ago would have called it a neck book, chrome book they're calling it alaptop shows how that space is evolving charge 649 for it. touting its 12 hours battery life, similar to language that microsoft was using just days agate i ago where i had a similar lineup, not talking phones, but internet devices, laptops, how artificial intelligence plays into all of this it seems like the bud is becoming a common accessory.
google announced pixel bud 2 as well that's the lay of the land where companies are so big that hardware has become like an accessory that can roll out and don't have to be volume wise among the most successful. see how long it plays out, guys. >> thank you love the outfit. we match slightly. you have a cooler jacket than i was able to dig up >> reporter: i can't see you >> i am wearing orangish as well thanks, jon. more on the triple digit rally when we return first, rick santelli, what are you watching today in chicago? >> it is all about the number 42 42 is a great number jackie robinson. this magic 42 is minus 42. and why it is so magic, you have to tuninft t bako e aerhere t find out
stocks are surging on good earnings today, as concerns persist about the state of the global economy we debate whether it is enough to keep the market on track. dow component stephanie link sold out of. she will reveal why she made that move. big call on shares of nvidia the investment committee taking that on. it is coming up at noon. see you in less than 15. >> we'll be there. thank you.
let's get to the cme rick santelli has the santelli exchange hi, rick >> hi. many things in markets are uncertain. i had several guests that made it the highlight of what they want to talk about uncertainty, imf comes out, down grades global growth in pretty much every other economy, the u.s. as well one thing for sure, as uncertain as times may be, and we all know that the economy and stock market may rhyme but are not the same thing, but in the final analysis, the equity markets held really well during uncertain times. you don't draw a line at your favorite level, 2900 in the s&p or 26, 5 in the dow-jones, when you draw that line across, you see how often we come close to that in the last year. basically we're holding. i get it
many investors say we haven't gone anywhere. if you don't go anywhere but are still at the top of the mountain, there are worse outcomes today i said big numbers, minus 42 that's where ten year boones closed in europe why so important this ten year boom starting july 1st. here's where we close. minus 42 and that takes you now back to july 30th when we closed minus 40 what's fascinating, around 913, september 13th, whether in bunds or ten year notes, that was the recent high water mark now, where are 10s they're sitting in an interim of resistance, 174, 175 hasn't quite taken that out. look at the pattern difference it is so similar until we start to take out this level
the point of the story is that we know all global rates for the last handful of years have pretty much moved the same patterns they're not calibrated exactly the same, the patterns are the same this breakout pattern is fascinating because in many ways you look at the end of august, we were at minus 71 in bunds, positive 145 in 10s, ever since then, bund yields outpaced u.s. yields technicals all being equal, next up in 10s should be in 190 vicinity courtney, back to you. >> we're going to watch that, see if we get there as we watch those yields thank you, rick. forget fans of fortnite being dark since sunday. they returned with a new chapter and brand new map to explore owourod tethunafr e break. evenfrom fidelity. fidelity now has zero commissions
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here, it could rejuvenate interest in the game and a rival for other games. ea and act vision higher this year, but both down double digits over the past 12 months. >> staggering numbers no matter what happens. fascinating stuff. so session high was up 333. and we're down just slightly from that. s&p venghori just below 3 k. back in three minutes. plans available to anyone with medicare. many plans provide broad coverage and still may save you money on monthly premiums and prescription drugs. with original medicare, you're covered for hospital stays and doctor office visits, but you have to meet a deductible for each and then you're still responsible for 20% of the cost.
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- [announcer] breakthrough at snhu.edu. we have gains of around 4%. what do you make of this >> we had a nice boost. thank you jp morgan. we get hung up in talking about trading and these banks. what i care about is the consumer. and the consumer was looking great. car loans which is how much the consumer is spending up eight percent. jamie dimon himself emphasized the consumer is in really good
shape. that was the biggest help at the open. right after the open, who knew brexit could move the market like this? brexit was like the sorry step child. we knew there was risk premium in the market. we moved 15, 18 points on the s&p on comments from the eu, not from boris johnson, the eu people saying we're making progress here. that's a little bit of good news. we got talks about china talks from the china side. the sincerity. there were comments out of global times over there. so you put these three things together. you got a little bit of a rally. >> when you look at some of the earnings, does it give you hope going forward for the entire earnings season hearing from jp morgan, united health care. >> to the extent that the u.s. consumer is the global engine the jamie dimon comments were extremely important.
if you get any crack in the u.s. consumer story, that's really bad news. his commentary was very supportive, u.s. consumer holding on. >> rick santelli looking at the ten year saying next stop 190. does that flip the financials? >> that's the big under value play. if you have to make one bold play for 2020, no recession, consumer holds on, rates move up. that's a really tough call to make. it makes sense. on a valuation basis, they're under valued, all value stocks right now. it's a bold call. i don't know how strongly i feel about that idea, but if it's buy low, sell high is the game, everything is so darn expensive right now that banks and energy are the two real value plays that are sitting out there. >> big fallout for home building and consumer staples, high
yielding names. >> really expensive. really, really expensivexpensiv. everybody is piled in, because that's where it's safe to be right now. crowded trades can get unwound quickly. >> we'll keep our eye on united tonight after the bell, because earnings season is just getting started. let's get to the judge. front and center upbeat earnings versus slowing growth. which will win out it's 12:00 noon. this is "halftime report"." >> what results are signaling about the sector and how to position yourself for the flood of earnings ahead. the outlook for the global economy cut to the lowest levels since the financial crisis. what it mean's for the fed's next move. nvidia rallying. and the stock just got