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tv   Closing Bell  CNBC  November 4, 2019 3:00pm-5:00pm EST

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similarly. so we often bring fashionable looking product but what pays the bills is brown boots, denim, work jackets >> and that's $180 >> yes >> thanks for being here >> thanks for having me. >> and thank you for watching "power lunch." scott, thanks for joining us today. >> "closing bell" starts right now. it does. scott and melissa, thank you i'm brian sullivan in for wilfred frost again today. welcome to "closing bell." we are at the post of the stock of the day that is under armour they're facing a doj and s.e.c. inquiry. what exactly went wrong at one of america's formerly fastest growing consumer companies we will dive in. >> and i'm morgan brennan. let's see what's driving the action for this today. lack of bad news around china as the trade continues to fade into the background from ferrari to berkshire
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hathaway and mcdonald's is the biggest drag on the dow. coming up on "the closing bell," uber results are after the bell. and we will have a live and exclusive interview with the ceo of the company dara cache sha hee you don't want to miss that in one hour keith, great to have you here. >> great to be back with you >> another record day of highs for the s&p and nasdaq and now the dow which we haven't seen a new record for the dow since mid-july >> i think we trade higher into the end of the year for lots of things going on. if we start getting capex where things are going with trade talks, then you'll see this rally not only continue through the rest of the year but into 2020. >> all right >> all right so it is an incredibly busy monday for the markets and your money. we've got the record highs that morgan just talked about bob is all over that you've got michael santelli.
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kate rogers all over the mcdonald's ceo firing. courtney reagan on the under armour story, and we're joined with a new look at what td ameritrade clients are buying and selling. >> good news is new highs for the major indexes. bad news is it's a limited breakout i'm looking for stocks at new highs. not indices. two groups make a difference now. banks and big industrial names all the regional banks are hitting new highs today. all the classic names. suntrust, key corp all 52 week highs right now. jpmorgan, bank of america, citigroup. how about the big industrials? you might be surprised what happened to the global economic slowdown? dover, deere, caterpillar, illinois tool works. all 52 week highs. why? a lot of hope the trade talks will go well only a small smattering of tech
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stocks corvo, swks. we need a little bit more breakout, guys we had only 50 stocks on the s&p at new highs today we need a little bit more movement and we're going to see 30% of the s&p at new highs. we'll see. >> all right bob pisani, thank you. i think you should trademark that one >> makes up for my santol santoli/santelli mistake at the beginning of the show. >> thank you i've been called much worse. but i'm going to pick it up there. is it a believable breakout? i'll look at some of this context for the move here. then the globe gets going. non-u.s. markets having their moment which is a little bit of a different factor this time around in terms of this rally. then is the sauce still special at mcdonald's under a new ceo? look at the valuation sentiment picture there. then expecting ennaoui
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we'll get to that next hour. but believable breakout. here's a two-year chart of the s&p 500. if you remember january 2018, this was your dramatic buying fr fren zee that's last september. fren -- if you want to consider that another breakout, that was 2.9% above this high you've not even got a 3% threshold. what would that mean right now it would mean about 31.16. there's no magic attached to that if you got beyond it, it would tell you the breakout is more decisive than the prior two. it's been a long fight it's been a long sideways road there's a lot of people who think this one has some potential to put a little more distance between it and the
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prior highs. >> yeah. finally put to rest all that conversation like we've had a good year. but over the last 18 months we've finally gotten flat. thank you very much. all right. now let's turn to the shocker that is mcdonald's steve easterbrook fired for having a consensual relationship with a fellow employee and he's not the only executive out at mcdonald's today. kate rogers has more on this big story. >> david fairhurst is also out effective immediately. the company only said he departed today easterbrook's last day was on friday he is succeeded by chris chimsinsky under easterbrook the stock had climbed nearly 100%. he was credited for turning this brand around after a major
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slump. >> you just touched on it, but easterbrook made investors a lot of money certainly his tenure seen as successful, you could say. should we expect to see him move onto another restaurant brand or company in the future? >> great question. his severance package was detailed today he can't do that for another two years. he has to be in a waiting period they named a lot of non-compete restaurants. chipotle, dominos, yum brands. then wawa, jamba juice, other companies. he could wind up somewhere in the future but it'll be a little while for that >> share of mcdonald's is down 3% today under armour is also facing pressure today as the company reveals details of an investigation into its accounting practices courtney reagan has that story for us >> so that news did send a number of shares down as much as 15% pre-market then they reported better than
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expected earnings but it didn't matter the stock didn't really move on that "the wall street journal" reported the department of justice and the s.e.c. are investigating under armour's accounting with revenue recognition. particularly other revenue was shifted from quarter to quarter to make sales look better. so the company tells cnbc it's cooperating with the dual investigations and has been since responding to the initial document request in july of 2017 under armour says, quote, it firmly believes its accounting practices and disclosures were appropriate. back to you. >> yeah. courtney, you talk about making money. i mean, under armour has done the exact opposite the stock is down 50% from its july 2015 highs. all at the same time where i guess its closest competitor/the company it's modeled itself off of, nike, has done well. the divergence between the stoc stocks, nothing short of shocking >> agreed.
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now that we know this investigation has been going on, we know that that meteoric sales growth really started to slow in late 2016 at least with the company disclosing so if they looked -- if the government was looking for documents in july of 2017 around sales and revenue recognition, it just looks a little fishy and then of course we know they've had three cfos between 2016 and 2017. we've got this executive shift that's happening on january 1st. there's a lot of questions and analysts say, look there's a lot of overhang here right now. it's really hard to sort of even look through some of this to make projections to the future which as you point out, the fundamentals also make this a challenging story. >> yeah. when you start to slow down, maybe there's an incentive to keep that going. courtney reagan, thank you very much appreciate that. well, despite those headlines, mcdonald's and under armour, the macro markets are on pace for a record close. even the dow at a new record
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apple leading the charge despite some recent data from td ameritrade that they have been net sellers of apple for seven months in a row. let's bring in j.j. kinahan at said firm. good to see you. >> pleasure to be here >> so you guys have this investor movement index. the imx as you call it you track what your retail clients are buying, selling. what millennials are buying and selling. people are selling apple >> they are. i want to be careful about how we set that. it's still the number one held stock at our firm. so people have been selling apple as you said, seven months in a row it's been the most surprising thing we've seen this year in this it does measure how people actually trade so what it tells me is every time there's any kind of bad news on the tariff front, i think our clients synthetically play that through apple. we were at a conference this week that was a theme we were talking to them about. a lot of their suppliers could be affected.
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i'm long apple when i get nervous, i want to cut back on my holdings a little bit. the other thing that's been surprising is they've been to, you know, buyers of fixed income but the duration has been six months or less there continues to be this demand for stocks maybe not at this level they're parking cash waiting to move in when stocks sell off a bit. >> keith, apple. it's up to date. does it make sense to be seeing some profit taking or some selling in this? >> of course it does when you look at when they did the seven for one split a few years ago which would have put them on a trajectory to make it a thousand dollar stock before they did that, people said they'd never get back there. it's gotten back there and then some in spades i think what j.j. is illumina illuminatiilluminat illuminating for us, i know people that have held apple for
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many years when you have that kind of cost basis and you're unsure about the macroenvironment, especially with a company like apple, then why not take some money off the table and start playing with house money. >> it's interesting what they're buying as well we need an acronym for something. what are we going call it? madd >> i think that's taken. >> yeah. look at that amazon disney microsoft and at&t with the exception of at&t, these are names that have gotten bought for so long do you worry at all that everybody's buying the same stuff? >> disney has been a sale seven months in a row. apple has been a buy talking about disney and at&t particularly, i think it might be a comment on the streaming wars coming up also in terms of
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that netflix, by the way was a net sell the other thing about at&t, people are still searching for return so also perhaps rather than parking their money in the fixed income, saying why don't i buy a blue chip stock? have a nice chance for a capital gain which at&t has given them microsoft had a little bit of a selloff. we saw declines come back in so again, a lot of those factors play into this >> quickly, j.j. what millennials bought got my attention. all of these names are suggestions. some that have been through scrutiny >> they continue to like the cannabis-related stocks. one thing i would say on that, don't forget this could be a long-term play and as we go state by state, if you have a long-term time horizon, that might not be a bad thing to think about altria was a little bit surprising to me especially from the millennial clients joefrl
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>> juul. i think that was your point. the juuling, the vaping. >> exactly and starbucks makes a lot of sense also but again, it is kind of interesting to see people adjust their cash even -- although i may say i'm going to be green and all that adjusting the client in places where they can make money. >> they're getting up on coffee, down on cannabis >> last quick thing you were talking about acronyms sale >> real pleasure thank you. >> thanks. we got a long way to go on deck an interview you cannot miss uber ceo talking immediately after their results hit the tape will it be another multibillion dollar loss? >> we'll bring you through that process. after the break, we're going to talk to the ceo of kaiser permanente about the elizabeth warren health care for all proposal stay with us it was sophie's big day.
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welcome back to "closing bell." we're on pace for record closing highs on the dow, the s&p, and the nasdaq if you're counting at home, the number to watch to hit that record is 27,359 we close anywhere above that,
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and you put a stamp on it with a new record all right. that is the macro. let's now get micro and dive into singles stocks. shares of ferrari on fire today. earnings and revenue beating the street ferrari also raised 2019 outlook. i heard morgan robert mention that ferrari's profit margin per car is 34% >> isn't that incredible >> on a multi-hundred-thousand-dollar car, that's incredible >> it's almost as amazing as your italian accent now. "the wall street journal" is out with a criticism of warren's fantasy plan joining us is bernard j. tyson of kaiser permanente let's begin there today. all the discussions around medicare for all how you the ceo of one of the largest health care systems in the country is thinking about
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that >> good afternoon. hope you're doing well you know, we have stated our position over the years. we do believe in universal access for everyone. so we're on the same issue -- the way the health care system works, you have to cover it to what i call get to the front door of the american health care system we don't think that medicare for all is the solution that's going to solve the problems that everyone is very concerned about which is the affordability of care we will be spending the next 10 or 15 years once again focused on the coverage side of the health care landscape and i would argue that's not where the safings are going to come from that's not where the affordability agenda should have
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the time and attention focused on it should be on the delivery of care itself. and so you end up disrupting, you know, over 300 million americans, putting them into a new coverage system that is questionable at best >> so i wonder how you're thinking about that at kaiser. especially given the fact we talk so much about ceo uncertainty, business uncertainty right now because of trade wars and softening global economic growth, et cetera but the presidential election of 2020, i would imagine there's a lot of uncertainty for health care there too how are you approaching the disruption or the fixing of health care at kaiser? >> well, i mean, we are one of the unique organizations in the country when it comes to health care because we're designed and we're organized where we provide both the coverage and the care number one. number two, people call us a
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closed system even though we do buy services from outside of the four walls of kaiser permanente. but we have all of the resources inside of kaiser permanente to provide care and coverage to our 12.4 million members around the country. and so we look at it from a very holistic point from the coverage side and the care side so on one hand with the elizabeth warren proposal, i mean, she's been pretty clear that she would wipe out as she described it organizations like kaiser permanente from the coverage side and i would argue that's not the best way to go. we work hard every day to make sure we provide coverage we have all kinds of financial assistant programs for our members. who are set up as a not for
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profit so we run as a not for profit organization so our incentives are all aligned to community benefits and the well being of the entire community. well, her strategy would destroy that on the other hand, we also -- >> mr. tyson, it's brian sullivan how many employees do you have, sir? >> we have 220,000 employees in our permanente medical groups, we have 27,000 medical physicians so we are a holistic system. well, i'm assuming that the majority of them are on the delivery side and so however she's thinking about constructing the care side of her proposal, they would fit into that category you know, and then obviously she was talking about that you're going to drive cost out. we work every day on driving cost out it's not as easy as it sounds. rightfully so, we have to pay
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wages and benefits to our employees. 90% of which in the delivery system are unionized and so, you know, as she talks about driving down cost, you're not going to just automatically tell employees, professionals, unions that we're going to cut your wages and benefits, you know, 10%, 20%, 30%. which i wouldn't support because it doesn't matter -- >> we've got to go listen, we're trying to have a three-hour discussion in a four-minute interview. sorry objeabout that, mr. tyson. on the employees not delivering care, not the doctors and nurses the employees of kaiser permanente who rhelp run the organization out there, what happens to them? >> well, i mean, if there's no, if you will, option for selling commercial insurance which is what she's suggesting, they
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would have to find new jobs elsewhere. there would be new jobs created with her program, but we don't have any of those details. then we have all of the systems and the processes and patient information and everything that would have to be worked through. so there are a lot of details to be worked through that she hasn't given any of those at this time. and probably as too early for that anyway. >> yeah. long discussion here i'm sure the first of many debates. bernard j. tyson, thank you very much >> thank you well, the latest at-work survey from cnbc and survey monkey finds that values matter in the workplace why do we say that okay 69% of working americans say it is, quote, very important to work for a company with clearly stated values. another 22% say it is somewhat important. and many younger workers have walked the walk as well. nearly one in three workers between the ages of 18 and 34
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said that they have left a job in the past five years because their employer did something that was morally unacceptable to them interesting stuff. would you like to know more? well, you can. you can check out the full survey results on well, after the break, wall street firm sea port global is rkising red flags about the the two names they just removed from their buy list next so servicenow put your workflows in the cloud, huh?
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mm-hm. your employees must love you. thank you. ah, you could say that. so how are things with you guys? great. thank you. thank you, sir. lunch next week? terrific. say hi to the team. will do. call my office, i will. -sounds good. alrighty. servicenow. works for you.
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welcome back to "closing bell." it is time now to get the word on the street. jeffries downgrading papa john's they're saying the pizza is getting more difficult >> seaport global securities getting tough on home builders downgraded saying yeah the sector right now is in a sweet spot from a news flow perspective. building activity will put pressure on costs. barclays out with a bullish note get this, morgan your company ge saying long-term investors may start to look at the stock in part because of increased free cash flow the firm maintaining its overweight rating and $12 target which is interesting because last week jpmorgan chase doubled down on a bearish stance and they have an underweight and $5
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target two really smart analysts have a $12 and $5 target on ge which is a multibillion-dollar market cap difference when you have that many shares outstanding. >> this is very much a bull debate in this turnaround. where do you fall in the debate? >> i hate to say it, but i have not likes ge for years when it was trading at $20 and people thinking it was going higher i said it's dead money now unlike some other calls i've made, that turned out to be fairly pressing. really i think the bet you're seeing out of the analyst is do you believe it or don't you? >> do you? >> i do. generate more free cash flow out of the business. you discount the future cash flow streams of the company. that's what gives it value if you believe that he is going that direction, you go long here
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>> yeah. free cash flow is definitely the key here i think also the fact that you have things like the long-term care insurance, that has been a real issue and drain on cash in the past there was an includesed discharge in the earnings. >> the reason i mentioned the number of shares, it's easy just to watch cnbc and look at the price. always know how many shares are outstanding and how much debt there is because if you have 10 billion shares outstanding and the stock is at a buck, you still got a lot of noise out there that's why it's important to note, ge has got billions of shares outstanding >> ge was a monolithic monster built over decades to generate that free cash flow, cash is king always. but especially with a conglomerate like that it's going to take a long time to disentangle them. employees, pension plans, debt still on the balance sheet i'm sure mr. culp and his
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lieutenants there are looking to really take advantage of this continued low interest rate environment. probably buy back some of those shares increase the price per share, revenue per share, and that will give a nice kick to the stock price as well. >> we're going to get more comments throughout the hour stick around >> my pleasure 30 minutes to left to go now in your trading day. there are three things driving the action right now we are on record close watch for the three major indexes. china trade fears subsiding a bit on optimistic headlines. well off the highs we may not close at a record stay tuned corporate results, they continue to be largely better than expected as we roll through the final stretch of earnings season and number three, mcdonald's what else? among the biggest drags on the dow. easterbrook leaving the company. and that's putting it nicely time now for a cnbc news update. let's find out what else is moving right now with sue herera >> hello, everyone here's what's happening at this hour new york city's police
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commissioner james o'neill is stepping down after three years on the job he will be replaced by chief of detectives demott shay o'neill says he is leaving to take an unpres fied opportunity. >> i came into this job with one mission and that was to fight crime and keep everybody safe. i think that's one mission it might be two missions though. and we did it. you know, we continue to do it too much screen time could lead to learning difficulties in young children researchers at cincinnati's children hospital tested a small group of children between the ages of 3 and 5 years old. they found that those who had more screen time experienced lower expressive language and literacy skills. and a baseball signed by the 1915 world champion boston red sox which includes the signatures of babe ruth is up for auction at leland's. the auction runs for the next 32 days
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you are up-to-date that's the news update at this hour back down to you brian? >> all right, sue. thank you very much. all right. coming up, keith continues to look to cash in on currencies. we're going to get his last chance trade we're going to reveal that call coming up 28 minutes to go and as we head to break, here's a check on bonds. the 10-year bond yielding just under 1.8% we'll be right back.
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we've got 125 minutes left o go off highs of the session, let's send it over to mike santoli for a second dash board. >> u.s. markets clicking to new records today. also the globe has gotten going. this has actually been a distinguishing feature of this rally. look at the acwx stock markets except for the united states. year to date, you see this big acceleration higher. it's been very pronounced.
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not an exaggeration to say the rest of the world has led the u.s. markets since the market lows of august among the markets making 52 week highs today, ireland, netherlands, france, germany, italy. it's pretty broad based. this is the acwx or the rest of the world stock markets compared to the s&p 500 when this is going down, it means the rest of the world is underperforming the u.s. that's what was going on when we hit a peak in january of 2018. that's what was going on in july of this year what's different now hit a high in the u.s. markets while the rest of the world has been outperforming that might be a distinguishing feature, maybe that gives more confidence that this move might have some legs on it, guys >> all right, mike we're going to see you in a few minutes. all right. let's turn back to the shakeup at mcdonald's. the company putting its succession plan into action. firing east brook as ceo and joining him with the head of operations
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the example situation at mcdonald's aside because there are still some questions, what have we learned about mcdonald's governance are you happy with the way they've reacted to this? >> i think a key takeaway from developments of mcdonald's is the value and importance of having a separate ceo and chair. had steve easterbrook been both the chair and ceo, that might have complicated the board's ability to move quickly and smoothly on the change another point point is while the former ceo violated the company's policy on personal conduct, the board did what it was supposed to do that includes on ensuring a smooth transition. you know, mcdonald's has led the way on succession planning ceo succession planning before some time ago, several years ago in the span of just two years, it had to appoint three ceos
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after two of them passed away suddenly, you know, within months of each other and it's interesting that the current independent board chairman enrique hernandez was on the board then. so one can surmise, you know, he has some experience navigating tumultuous things here and has tended to promote from within the ranks >> keith, shares of mcdonald's down on the dow today. does that move make sense? when you hear about a strong bench in terms of succession, is it overdone? >> i think there's a bit of a knee jerk reaction when all of a sudden they're just letting their ceo go but they're making -- they've made some quick, swift, and decisive moves to get back in there. the fundamentals have not changed because easterbrook has been shown the door.
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if you believed in the company and bid the stock up to where it is right now based upon the fundamentals and the cash flow of the company that's coming out, you're going to go back in. you may not see it today, but maybe the remainder of this week, you'll see the money come back in and get it on the cheap. >> amy, had we seen -- do companies largely have these types of policies in place around their ceos and executive leadership they're not to engage in relationships even if they're consensual in the company. or is this a relatively new concept? >> well, we're seeing it more and more particularly in this new me too era, but i'd remind you just last year intel ceo stepped down after a -- it came to light he had had a previous consensual relationship. so i think companies are getting -- they're more wary of these. we're seeing more of these provisions on no dating subordinates in company policies >> all right
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amy, thanks for joining us today. we have got just over 20 minutes before the bell. we are on a record close watch for the dow, the s&p, and the nasdaq coming up, uber reporting their numbers. don't call them earnings after the ball we've got an exclusive interview with the company's ceo after those numbers cross. you cannot miss that and tomorrow on cnbc, there's this guy named wilfred frost he's very tall and he's got on exclusive interview with a pretty big name himself. jpmorgan chase ceo jamie dimon it starts at 10:30 a.m. eastern time more more on the interview, you'll have it right here on "closing bell. a double dose of wilf tomorrow imth jamie don can't miss that. we'll be right back on "closing bell" after this excuse me, where is gate 87? you should be mad at non-seasoned travelers. and they took my toothpaste away. and you should be mad at people who take unnecessary risks. how dare you, he's my emotional support snake. but you're not mad, because you have e*trade, whose tech helps you understand the risk and reward potential
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we got 17 minutes left to go we are in record close watch for all the major averages keith, what is your last chance trade? >> somewhat linked to us getting to record close on the averages is that so the last chance trade that i'm talking about is to buy the uup. so the uup is the etf that track this dollar against the basket of currencies. it got vastly oversold along with the dollar back in the middle of october.
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typically when you have a relationship of an oversold dollar and overbought euro in the analytical work that i worked with for years and years, that is a bullish sign for the equity arkets. in fact, it played out again you've still got some room to run both in the dxy which is the dollar index and the uup will follow suit. >> if you are right that the dollar is going up, what is that going to do for s&p earnings especially for 40% of the revenues that come from outside of the united states >> depends on -- that trade i gave you is short-term in nature so it would have an effect over a little bit of time we'll see what happens in the next quarter personally i think it will trade in a range far long time primarily because of the trade war. it's been hard to make money in currency trading i think between the dollar, the dollar index, and the other basket of currencies, there are ways to make money >> all right good stuff the uup. we are watching it great stuff. >> u-up. >> i like it all right. up next we're going to bring you uninterrupted coverage of the
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final minutes of trade and what to expect from uber's numbers. they are crossing right after the bell deirdre bosa's got an exclusive interview with the ceo as well shake shack, marriott, hertz, a lot of numbers we're back after this. -recommend memory support brand. you can find it in the vitamin aisle in stores everywhere. prevagen. healthier brain. better life. dana-farber cancer institute discovered the pd-l1 pathway. pd-l1. they changed how the world fights cancer. blocking the pd-l1 protein, lets the immune system attack, attack, attack cancer. pd-l1 transformed, revolutionized, immunotherapy. pd-l1 saved my life.
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♪ ♪ ♪ ♪ ♪ don't get mad. get e*trade, dawg. all right. 12 1/2 minutes left in your trading monday we call this the market zone free coverage after all the action going on -- we say free it doesn't cost you much >> commercial-free >> there you go. >> mike santoli is here to break
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down these crucial moments of the trading day. and today we've got keith bliss as well. let's kick things off with market all-time highs. bob pisani is on the floor with a look at that >> our breakout sectors are banks, regional banks, and the industrial names like tool works and caterpillar. there is one number that's doing very well today with energy stocks far and away the worst performer. here's one a good example, classic exploration of a company up about 6%. oil's up a little bit, but not that much. you can't blame everything on oil. it's a broad rally here for this group. there's the expiration etf much heavier volume than normal. oil service also much heavier than normal volume back to you. >> we'll see you in a bit. thank you very much. meantime, the stock story of the
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day is under armour. the stock is plunging confirming it is federal investigations by both the department of justice and the s.e.c. over its accounting practices the stock not recovering at all. down 19% right now joining us right now is brian nagel. he's got a market perform rating on the stock there's two things going on here stock's down 19% you've got the investigations but also a guidance cut. how much of that 19% is the investigation? how much is just simple core business >> yeah. i think it's a great question. >> it was clearly -- we started hearing about these informations we got the third quarter results from under armour. that third quarter was definitely weak and showed more signals of continues sales softness of the chain.
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>> brian, you've got a rating of perform on the stock everything today, is that going to change your investment thesis here >> no, look. i'll make it really clear. i've been cautious for awhile. as i look at this space and i like it a lot, i think the better ways to play it are with nike and lululemon under armour is in a difficult competitive position right now as it tries to fight back against stronger companies what we're hearing about these investigations, that's another problem that's going to create a cloud over the stock so we're cautious and likely to remain cautious for awhile here. >> all right >> does kevin plank need to be gone from the company in all of his roles, brian >> that's a difficult question there is a management transition happening right now where kevin is basically handed the reins of ceo over kevin is the one who created the company. he created the technology behind this brand i think from a vision standpoint and product standpoint, he's important to under armour.
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>> all right mike santoli, i mean, for the last couple of weeks we've had quite a number of individual companies and crisis where the stocks have been moving dramatically today it's under armour. you can also say mcdonald's. how much is this affecting the markets especially as we close in on record highs >> it seems the market is ready to treat every one of them as a one off thing. i think certain things happen toward the latter part of an expansion cycle like the ceo says we did what we could with what we have to work with. and we're going to back away with it. that's nike or something like that then under armour, scrutiny happens again. latter part of the cycle beyond that, the market is not taking it as any particularly bad sign about the economy or anything else. >> we're at record highs given that >> a little bit. yeah i mean, again, a lot of it is recency. we're seeing a lot of these at once it doesn't seem like a big percentage of the big companies that are undergoing turmoil. >> all right
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brian nagel, thank you for joining us we have less than eight minutes until the close. we'll get quarterly results from uber josh lipton has a preview for us >> here's what to expect from uber q3 loss of 81 cents per share on revenue. another key metric gross bookings $16.7 billion for the quarter. some on the street argue that credibility in this story is waning with the stock down hard from its ipo price off about 30%. specifically they note that rival lyft has now offered profitability targets. but uber has not offered a similar timeline still most analysts are bullish on this one. nearly 70% rate uber a buy back to you. >> all right, josh thank you. and don't miss our exclusive interview with the ceo right after those numbers hit. keith, it seems like it was -- what a year it's been when you think about it the year started with all of these tech unicorns, growth at all costs. then it shifted to path to profitability.
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what do you think about names like uber that are expected to have these big losses? >> when investors get nervous where the returns are going to go, they're going to look for companies making money i think that's where you've seen the stock prices for these high fliers getting all this money from around the globe from private equity firms as well as net worth informsers and people like softbank came crashing down then that's when you have the problem. and i don't think the problems are going to end for uber. they're not spending billions of dollars. >> they're losing $3 on every uber eats delivery will uber ever make money on a free cash flow basis >> it's totally unclear at this point. the thing i'm cognizant of is everyone now is convinced it's never going to happen. you have a $52 billion valuation on a company that seven months ago was telling you it was worth a hundred billion. even though josh is right, 70% are buys right now, i don't think there's a lot on the bull side >> should they buy lyft? is there room for two?
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>> i think that's way down the road before you'd have to fight that out on antitrust basis and everything else. >> here's a bit of the difference, i think, brian the difference between lyft and uber it's a good news/bad news story for uber uber eats is firing on all cylinders. that's also the bad news right? >> losing over $3 on every delivery >> difficult to have all your eggs in one basket but also too hard to have too many baskets. >> we're going to get results after the bell from another new participant to the public market ts and that is the real real. courtney reagan, what can we expect >> so the real real will report its second earnings as a public company after the bell today while high growth was the key metric for these younger companies for so long, investors you know growing impatient waiting for that profit. like recent ipos, it's not expected to be for some time today analysts are looking for a 31 cent loss
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still, growth is going to be important. as will the take rate or the amount the online consignment business gets to keep from sales of the goods listed there. since the ipo, shares are roughly flat though down sharply in trading as much as 10% we should note there's a decent short position at about 20% in shares of the realreal >> you know, mike santoli, i'm thinking back to the column that you wrote over the weekend when you look at the e-commerce focusing companies that have just been slaughtered recently in terms of share price depreciati depreciation, it sounds pretty promising. >> the premium is not warranted anymore. there was a give up trade. i think down the road there's son sol dags in this area.
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big questions, though, as to whether you have a path to a good business model. >> tech or retail? how do you think about a name like this? >> i think to michael's point when you have a bunch of those companies that have been out there a couple of years, now they're throwing the bath water out with the baby. >> they've got three minutes left to go mike has more on the market internals today. >> look at the new 52 week highs versus lows. one of the nagging elements of this rally has been not a lot of new highs. this is a good day for that. got about 10-1 new highs and lows also want to take a look at the high beta stocks on an intraday basis. the more aggressive stocks are outperforming. it remains cyclical and risk on today. >> is today kind of proof that if oil rose, this market could not keep going up unless oil participates >> i don't think it has to, but it helps.
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>> you got two oil names in the dow. exxon and chevron. gas prices are still lower but the energy sector -- it matters a little >> a little. it helps it's not a prerequisite. >> it's just not the realreal real two minutes left to go let's send it over to rick santelli for a check on bonds. rick >> hey, buddy. if you look at tens minus twos yield curve spread, you see all you need to know about treasuries today prices were down which means we're bear spreading we're of a bear curve move to the upside flattening. that is a wonderful thing if you're aggressive on liking the economy. now, look at the intraday of the dollar index remember, we lost close to 2% in the dollar index in october. friday we made fresh going back to july. but we've had back-to-back days
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in the naz da k. whap are you seeing when you dig deeper >> it's a story of apple and tech lifting things. the tech sector at an all-time high look at amd. that's one of the chip names moving that sector they've gotten a nice tail wind from last week and then you've got amgen. also hitting an all-time high today after having gotten a tail wind from that oncology deal with a chinese company it couldn't sustain it in fact, we've seen biotech continue to lag down >> helping recently. important thing today, another new high and mcdonald's didn't help though that cost about 40 points on the dow and the resignation of the ceo there. as brian pointed out, chevron and exxon made up for that they offset the decline in
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mcdonald's for the dow banks and industrials are your breakout sectors u.s. bank corp., all the super regionals at new highs also new highs we'll see if we can get other breakouts. now up 110 points today. and there you go the mallet is down "closing bell. hi, everybody. i'm brian sullivan in for wilfred today. >> and i'm morgan brennan here with mike santoli. >> all right so the dow, the s&p, the nasdaq, the russ el 2000 look at that at the bottom of the screen, the dow s&p and nasdaq, all new records. >> yeah. dow transportation average also
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surging today. up more than 2%. plus we're just moments away from the quarterly results the uber ceo will join us in a cnbc exclusive to react to the numbers. joining us meantime is keith bliss of iq capital usa. also with charlie babrinskoi welcome to you both. mike santoli, though, i'll start with you same question i asked top of the last hour. record highs is this a breakout >> i think the definition is you put some distance in between the current levels and the previous peak the big question is are we going to get to a point where we stretch the upside a little bit more and people get over confident? that's not quite happening yet this is happening i think because of the removal of challenges and head winds. right? trade, the fed didn't make a mistake that we can see. recession fears have waned
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it's not really about a catalyst it's just about a contexts the market's at a record high. buyer to the upside. i think that's what the trade is >> all right keith, quickly your thoughts on this? >> yeah. like i said at the top, we're close to a breakout. i want to see accelerating volume into that trade then that will put it all together i think we've got more room to run here in the next two months. you might have heard about this, but the dow closing at a new record high today. you're welcome, america. first time it's done that since mid-july all right. so since that time frame, you got this company apple they've continued to do well up 60% year to date intel and jpmorgan, those have been the donkey pulling the dow cart to all-time highs okay there's two sides to every story. the biggest drags of the dow since july cisco, chatravelers, and mcdonald's
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mcdonald's also in the news today. >> charlie, the fact you have -- we talk so much about the banks but the names like travelers, the fact we've seen weakness and those other financial names, some of those insurers, for example, do they need to see this market go higher? >> they're not a huge part of the market they are not benefitting from interest rates, the whole flat yield curve environment is not great for banks. people are nervous about the political implications of some of the candidates for banks. so i wouldn't say we have to have the banks be leaders. we've got the big banks like jpmorgan doing well and other financials doing well. i would say we don't need them it would be nice though. >> i think big surprises at least to some, not to use. because i know you've been long and strong those names how much longer, though, are you going to ride out these stocks particularly private equity stocks let's be honest, have not exactly been burning up the
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charts since they went public. >> not since they went public. but since they were trading at nine times earnings, they've been burning up the charts the reason why is they were not held in the index funds. the whole move towards passive, putting their money into the s&p 500, meant that some stocks got left behind. if you weren't in that index, your stock became cheap. kkr was trading at nine times earnings so they went into the index. the indexes had to buy it and kkr is up about 80% since that decision happened. >> mike, we're waiting on quite a number of earnings again today. and actually if you look at the names, they're all largely consumer facing. shake shack is another one, for example. key i guess broader overall themes that we'd be looking for from some of these companies >> i think the consumer is the premise for why the economy is in decent shape here i think the backdrop is okay for each of these. now, we're getting to the latter
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part of earnings season. i think a lot of times what happens is people just assume. it's not necessarily going to -- the market is ignoring or looking through the fact that guidance has been pretty negative and the fourth quarter earnings on paper don't look all that great i think it's clearly trying to safe we're seeing enough evidence in the global economy we're willing to wait it out >> not great, keith. but not terrible either. i think the guidance has been okay >> yeah. >> well, as i'm fond of saying, we're the best house in a bad neighborhood if you want to look at it in those terms although the equity markets and the global economy are not as bad as people want to think. i was traveling to atlanta this weekend and i was in newark airport at 6:00 in the morning and it was just teaming with people these people are spending money and going on weekend holidays. you don't necessarily see that in a bad economy and look at the 18 wheelers on the road these days. we're moving freight around this
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country. the economy is strong, the consumer is very strong. it just depends on whether they spend their money at shake hack or mcdonald's. >> we've got uber results out and deirdre bosa has the numbers for us >> hey, guys it is the beat on the top and bottom lines for the ride sharing company. though the stock is bouncing around, down 5% in the after-hours. let me give you the numbers. revenue of $3.8 billion versus the street expectations. that's growth of 30% year over year versus 13%. and it looks like that's being driven by reacceleration we're seeing uber eats soften a little bit uber lost 68 cents versus 81 cents expected north america still the company's strongest region in terms of ride sharing. also revising adjusted ebitda guidance to $2.9 billion for the year so the company anticipating a smaller loss sill should mention that the net loss for the year to september,
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$7.4 billion on revenue of $10 billion. for more on this, let's get to uber's ceo dara, thanks for being here. do i got you >> happy to do it. thank you. >> so we're seeing improving revenue growth, but you guys are still burning through billions a year when does uber break even? are you willing to give a timetable today? >> yeah. i think if you look at our numbers, it was a very cig can't beat on the top line we increased our 2019 -- the midpoint of our guidance and as far as ebitda goes, by $250 million. while we haven't finalized our planning and it's going to take a lot of hard work from a lot of folks, we are actually targeting 2021 for adjusted ebitda profitability full year 37 so we
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expect to deliver for 2021 >> so you'll be ebitda profitable in 2021 or that's when you start to break even okay i'll ask you the same issue. how can you give this kind of timetable when there are still so many uncertainties out there particularly regulation as it pertains to your drivers you've got that gig economy that could raise costs significantly. >> so there are certainly many uncertainties out there, but what gives me comfort is you look at our ride segment of 631 million. that's up 52% year on year our business already pays for the -- i think we're just getting started in terms of the
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work we can do to increase rates, ebitda margins for that segment. up significantly and we think we can continue it. when you look at california, california ngts for about 9% of our bookings on a gloenl bbal b. so there's an initiative out there. we think we can get to a better answer but from an overall financial standpoint, we're a global company. we're diversified and we think we can get to 2021 profitability with the tail winds in the business and despite some of the regulatory head winds that we do meet once in awhile. >> dara, i think investigationers have been looking for the path to profitability for a long time. stock in the after-hours, maybe they're still digesting it how much of this is this rationalization that you and your smaller rival lyft have
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been talking about are prices going to go up for the rider? >> i think that there's certainly some element of pricing to the rider as well but i do think that all of the companies that -- all of the technology companies that have been moving at the growth at all standpoint can get more efficient. can get more efficient in terms of allocation of capital, how they think about their cost base and i think that this moves towards more discipline around capital is a move that is healthy for the industry and the global coverage. >> i know you've got to go, so we'll leave it there we'll certainly be on your earnings call. thank you. >> thank you >> all right thank you very much. okay, guys
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let's quickly chat the market doesn't like it uber stock is down 7%. there's a couple of things that stuck out to me going through the numbers. let's get all your take on this as well. number one, they keep spending driver incentives rose on both the ride sharing it means that's their excess money. they're basically paying the drivers to deliver food and to subsidize ride sharing those costs aren't going down. those costs are going up the market i thought would react more positively to the we expect to be ebitda positive. but this is another billion dollar last quarter. >> it's over a year away i do think that siting the fact that the ride business essentially covers corporate, they continue to say we're going to be plowing more investment into those other areas
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then okay you're ooub ta positive in 2021 what's that worth today? >> and i sense some of that declaration it would be ebitda positive in 2021, i sense people don't believe that why get ahead of yourself and get into the stock then they disappoint on that then it's pulled back. i think there's some of that pulling out. more to the point about the actual numbers they have 12.5% turnovers in their drivers and they knead to plow roughly $900 billion a year to keep incentives going >> they just put out this forecast ebitda positive 20, full year basis, 2021. similar guidance we got from lyft as well coming into both of these companies going public, the argument had been these companies are not going to turn a profit until they get to
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self-driving until we get automated vehicles. neither of these companies are really talking about that right now. >> true profitability i think that might be the case you're right maybe you can pull the schedule forward a little bit in terms of when they're a self-sustaining business >> that's exactly my point >> when they're no longer burning capital. >> but their capital costs in some ways are going up, not down they talked about ebitda positive i thought deidooeeidra asked thh question unless you double your ride fares, how are you ever getting to ebitda positive >> in two years. >> with both companies having those targets out there, is the market going to say maybe it's going to be more rational. >> maybe it's compensation so it was about an $800 billion true loss of a core business shake shack earnings are also out. these are earnings frank holland has the numbers.
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>> shares of shake shack down about 12% right now. they appear to be falling on the new store opens in 2020. eps above estimates, however, same store sales fell below. the company also raised its revenue guidance and also its license store openings guidance. however, the shares are down more than 12% on what is a very flat projection for 2020 growth is a big part of the shake shack story. i guess investors are not liking what they're hearing from the twaen. back over to you >> the other thing i would note is the revised outlook for 2019, now they're going to be up 1.5%. i think the straet is seet is s it's underwhelming this time we've got earnings on real jb real.
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>> it is a beat on the top and bottom that was better than what the street was looking for which was a loss of 31 cents on stronger than expected reeve knews. 80 pr $80.5 million for the street's expectations the gmv that grows ms. -- the take rate also increased year over year. so the amount the company keeps in these consignment sales online direct revenue also higher by 75% and the average gross merchandise value is down slagtly 81%. shares of the realreal are higher by 6% hereafter hours they had been down as much as 10% during the trading day today. ahead of these results back over to you >> all right courtney, thank you. we got some big movers today on the heels of all these
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earnings >> so shake shack is down and mcdonald's is down but shake shack has had a wonderful -- it's not exactly the guidance you're backing off 12% you're doing well. uber down and continues to fall. >> all right gentlemen, thanks for joining us keith bliss and charlie babinsk oy coming up, mike isaac will give his thoughts on uber results. "closing bell" is back in 90 seconds. it's not about quantity. it's about quality. no trendy stuff. i want etfs backed by research. is it built for the long-term? my reputation depends on it. flexshares etfs are designed and managed around investor objectives. so you can advise with confidence. before investing, consider the fund's investment objectives, risks, charges and expenses. go to for a prospectus
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welcome back to "closing bell." shares of shake shack are plummeting down. down about 13% after reporting earnings just moments ago. joining us on the phone is nick settian. the number that's driving -- the metric that's driving this selloff in shares right now, is it the same store sales number increasing 2%? what was the key takeaway from you for the report >> this is actually a perfect quarter for the bears, right the bear argument has been this margin pressure is going to be outside in the near term and some of the longer term targets are out the window if you're doing a discount cash flow so they just missed over by a
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hundred basis points coming in historically the comp has been volatile to us the most important is the margin here. >> so would you be a buyer with the stock down 13% where do you stand what's your rating on the stock right now? >> well, i'm a neutral they hit the estimate of 2%. the question here going forward is going to be answered. it's hard to answer your question directly, but the question going forward is where can these new margins stabilize, you know, beyond just the near term if we're talking about, you know, three, four, five years from now when we get to the 450 units which is the ultimate
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opportunity, where can those margins stabilize? is 20% really realistic, you know, if we kind of look at three, four, five years? >>. >> we're going to find out appreciate that instant reaction to the shack's numbers all right. up next, uber shares, they are down not quite as much as the initial reaction off about 4% right now they reported their results another billion-dollar loss in the quarters mike isaac who literally wrote the book on uber will join us in a few minutes.
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all right. welcome back 4:23 there is a lot going on in the markets today in individual stocks let's get back to mike now for his third dashboard of the day >> one of those individual stocks we've been talking about all day, mcdonald's. we had an unexpected ceo transition today is the sauce still special for investors though take a snapshot of the consensus sentiment towards mcdonald's you see it's been pretty steady. i would say it's about 65%, 70% buy ratings. that's been pretty stalwart for awhile here. a big gap has opened up against the consensus price target and
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the current price which has been going down about 225 is the consensus so there's room for folks to come out and cut the price target and things like that. that could be noisy. look at the valuation. the relevant part of this is the forward pe multiple of mcdonald's reached about a 25-year high not long ago. as easterbrook was kind of running that kind of momentum in terms of fundamentals. and also that kind of migration toward quality stocks, stable brand name businesses. right here it's about 26 times forward earnings about as expensive as it's been for a long time. now you've bled that premium away it's also at a slight premium. so you could argue a lot of the work has been done cutting back on that valuation. you would never say it's cheap but if the numbers come through, it's been a decent adjustment that you have not seen in stocks, for example, like starbucks or procter & gamble. >> well, this whole chart situation i would call the special sauce of santoli >> thank you >> so thank you for bringing us that >> secret sauce.
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>> it's also special. >> it is uber on deck shares of the ride sharing company slumping after reporting results. instant analyst acon tretio those numbers when "closing bell" comes back i always thought there were two types of motor car there was a sports car and a family saloon car and i always had in my mind that one day the family car could compete in rallies and racing when the mini actually came out
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cognizant is helping insurance companies advance how they serve even hard to reach customers. cool ♪ ♪ let's get a cnbc news update with sue herera. >> hello, brian. hello, everyone. here's what's happening at this hour the trump administration notifying the united nations that it will withdraw from the paris climate agreement. it marks the first formal step
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in a one-year process to formally exit the global pact to fight climate change former theranos founder elizabeth holmes was back in court for a status hearing the judge ruling the fda must turn over the documents they're asking for the s.e.c. has accused holmes and former theranos president of raising more than $700 million from investors through fraudulent maeans king arthur flour is recalling five unbleached all purpose flour. they issued the voluntary recall in early october after discovering it may contain e. coli and president trump welcoming the world champion warble nationals to the white house. during his remarks, president trump talked about catcher kurt suzuki's heroics at the plate. he donned a make america great again cap as he stepped up to the podium and that is the news update at
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this hour. back downtown to you >> sue, thank you. it's been a busy afternoon of earnings. shake shack matching on revenues and beating on the bottom line but same store sales missed the mark weighing on shares. realreal beating on the top and bottom lines that stock is a bit higher right now. and revenue topping estimates. but gross bookings and monthly platform consumers, you can see those shares down 5% in the afternoon hours as well. sticking with uber, the ceo appearing on the show earlier this hour spoke with our own deirdre bosa here's what he he to say when asked about uber's profitability timeline >> well, we haven't finalized our planning and it's going to take a lot of hard work from a lot of folks we are actually targeting 2021 for adjusted ebitda profitability full year. so we know that there's expectation of profitability and we expect to deliver for 2021.
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>> all right for more now on the results on a quarter where uber goes, let's bring in mike isaac from "the new york times" who literally just wrote the book. and we are super pumped to have you on the program thank you very much. ooum almost all the way through it i've got to admit, i'm not done yet. it is a spectacular book thank you for coming on. i want to ask you first, mike, because you've dug into this so greatly here do you see any path to profitability? they lost another billion dollars. i know there's $400 million in employee compensation. they've lost more money than probably any company in the world over the last couple years. any path to profitability? >> you know, i think the era of unicorns that are willing to burn truckloads of cash and for their investors to let them do it without any sort of repercussions is really starting to come to an end. and i think that's probably a good thing for companies like
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uber and really we can probably attribute a lot of this to the fallout around wework, honestly. adam newman sort of became this poster child for lavish spending companies that are burning way too much capital and i think uber can benefit if not just them but a lot of their competitors are spending money on incentives in the category, stop sort of burning two-game users. i think widely not just around uber but all companies in the spending can be a net positive for companies like uber. >> when you have dara come out and say on cnbc, we just played the sound bite a little while ago, said 2021 full year adjusted ebitda profitability. he's putting a target out there yet the stock is continuing to sell off right now why? >> again, i think this came out of the blue. nobody was expecting uber to say
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we are going to be profitable in 2021 what people wanted was steady growth we didn't get that we also wanted marketing leverage we didn't get that again, stepping out of the shoes saying why are we going to be profitable in 2021 investors won't get it either. i think there need to be baby steps along the profitability. today what we saw was one baby step again, one could argue that this wasn't straight in the direction of profitability we saw ebitda by some measure you are showing some leverage. largely because of what is very impressive i wouldn't take any credit away from uber here >> we seem to be going in opposite drexs maybe they're not having the $15 million vegas parties in $40 million officers like they used to like you detail in the book but they paid more for driver
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incentives on the ride sharing and eats side. their cost of acquiring drivering, subsidizing rides is going up not down >> yeah. i think the big problem for them here is, you know, where we are with eats and the food delivery business now is basically where we were with the ride hailing business three or four years ago where there's a bunch of competition in the category. you know, doordash in the u.s., grubhub. everyone is spending like crazy to acquire the same subset of users and no one is really reining that spending in where i think ride hailing is starting to even out a little bit more in terms of incentive spend or at least not being as sort of lavish as it was in the past, they're just -- they're spending like crazy on eats. there's no real clear timeline for me on when that spending is going to stop happening. and you see the growth go crazy
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on eats, but it's costing them a lot of money to acquire those users. i imagine investors hope that spending will decrease in the future >> we talk about lyft and uber in the same breath certainly because of the ride sharing. they are two different companies with various business models do you like one better than the other? >> we would stay clear of both but longer term, i think that is the business as well as all of the investments in many other places in the world. we want to see more sustained economics, improvement in economics. improvement in the last 90 days was a good sign. we want more of that >> all right a good discussion there. we could go on but we don't have time inside the battle for uber, guys it was a great conversation.
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thanks for joining us. we have a news alert on adobe. >> adobe shares up more than 5.5% after the company offered guidance for fiscal year 2020 for revenue and eps. that was above estimates the eps guidance adobe offering this at the analyst conference at the adobe max conference up more than 5.5% after it expects revenue and eps to be above estimates. back over to you >> all right, frank. thank you very much. up next, a major mow to spo -- motor sports deal. the entire indycar series being sold en pskbe joined by rogerene wh "closing bell" comes back it's tough to quit smoking cold turkey.
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>> markets on a roll as we've talked about been a great decade. but with the forward looking returns, they are expecting ennaoui on the starting point right now of valuations in low bond yields. this is from morgan stanley suggesting the 60/40 allocation mix is going to trend down in terms of the annualized returns probably towards 4% to 5%. it's actually been very strong in the past ten years. about almost 10% which is an unusual level, of course, back here in the late '90s, early 2000s. this is where the math takes you. it's not really a firm prediction based on anything except starting valuations and where bond yields are right now. jpmorgan had a similar one although, guys, i guess if inflation stays around where it is which is probably an input to some of this, 2% real, 3% real returns annualized for a low
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mix, maybe not that bad. >> yeah. i look at this chart and can't help but think maybe it's time to rethink the 60/40 breakdown >> but to go where the world just because you need higher returns doesn't mean the world is out there delivering them for you so i think it's plausible conversation, but where do you go to get a similar risk reward? >> and in this day and age, a lot of people looking at the equity bonds what about real estate what about gold? there's all those things >> we don't have the performance history back to 1881 on any of that stuff >> gold? you don't have gold? real estate? no one had gold or homes back in 1881 >> we don't have the data. >> they had cryptos. they were just called tulips okay we have an earnings alert. this time it's on marriott seema mody has the details. >> that's right. the world's largest hotel operator reporting earnings that came in below expectations 1.47 slrs adjusted
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beating expectations in revenue $5.28 billion versus the estimate of $5.13 billion. we should note the stock is down over 3% here in extended trade just weeding through the press release, they are looking at the recent events in hong kong and the foreign exchange market. keep in mind the stronger dollar has been a head wind for the broader travel industry. the conference call is tomorrow. certainly looking for more comments on the impact of the consumer and looking at this through the lens of these hotel operates -- back to you guys >> thank you up next, roger penske making a -- i sit here and then got roger penske buying indianapolis motor speedway heck, buying the entire indycar series we're going to be injoed by roger for an interview i can't wait for we're back after this. [maniacal laughter] gold.
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gold! right, uh...thank you, for that, bob. but i think it's time we go with gbtc. it's bitcoin exposure through a traditional investment account. nice rock. it's time to drop gold. go digital. go grayscale. by the way, she's the it wasnext mozart.g day. as usual we were behind schedule. but sophie's enthusiasm cannot be dampened. not even by a run-away donut. we powered through it in our toyota prius. because a star's got to shine, no matter what. it's unbelievable what you can do in the prius. toyota let's go places.
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verizon keeps business ready. ♪ all right. there are some of the gainers and laggards today genetics getting hit on their results. contessa brewer has more >> down some 29% after earnings -- or after the call here we had a challenging start to fiscal year 2020, myriad
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genetics says. there was a deletion of cpt codes for historical hereditary cancers. those are the billing codes. they said they thought it would be a minor insignificant impact. but wasn't the case and instead was serious news they've downgraded their financial outlook for the year and as you can see, the stock here getting hit all because the cpt codes that they were billing for historical hereditary cancers has changed. >> yeah. it's a big move in the after-hours. down 29% thank you. >> yeah. maybe tomorrow's disaster du jour tonight ahead, roger penske, legendary owner, race team owner won the indy 500 numerous times. is now buying the indianapolis motor speedway and the entire indycar series on the way back we'll hear from mark miles and roger penske. stick around for that.
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well, for more than 70 years the holman company has been the guardian of the indianapolis 500. today the penske corporation announcing they're buying it all. the indycar series, and ims
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productions. joining us now is roger penske, chairman and found eer of the penske corporation and mark miles of hulman and company. i'm a life long fan of what you do this came out of the blue. roger, how did this develop and why are you making this transaction? >> well, i think brian, i go back to 1951 when my dad brought me here to the speedway and to think about i guess the dna was injected at that point and over the years, success here at the speedway, it helped us build our brand. and i guess your dreams come true when you get a call to come see mark miles about the thought process of maybe having the opportunity to buy the speedway. obviously a tremendous honor to have the potential to be the caretaker of these great assets going forward. so i can tell you it's a dream come true. >> mark, why sell? i mean, listen tv ratings, nbc sports up 9%
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attendance is up you got rid of those ugly cars from a couple of years ago seems like everything is kind of firing on all cylinders. why make the sale? >> well, it really was the right time for the hulman george family they're proud of their legacy but when roger indicated he was really interested and that became a possibility, it really made the decision i think for the family and they voted unanimously as shareholders just yesterday for this transaction they see it as their baby, their family's heritage, and they understand that better than anybody we can imagine, roger penske and his family will take it to greater places for a very long period of time. >> roger, in terms of the greater places, how do you envision building out this business and i guess what does that mean for the long-term outlook for auto racing? >> well, i think today consolidations are taking place. there's no question with the
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domain knowledge that we have within our company, we bought the michigan speedway in bankruptcy back in 1973, we built that into a real speedway network. and what i want to do is take our domain knowledge, our people and make an additive, certainly with mark, and we think that with the support of our nbc sports partner in indycar racing and the things that we can do here at the speedway -- remember, the most iconic sport in the world, the biggest race and i think what we need to do is really be the custodian of that and take the things that we can do together and take it to the next level, because lots of media opportunities. think people want to use this speedway for other things. so we want to make this an entertainment venue for the state of indiana and the hoos yers that love this place so mu much. >> roger, do you try to get a
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second indianapolis race, and can you pull off the double? are we going to see a nascar, indycar race, same track, same weekend? >> well, that's been a lot of discussion, brian, over the last several hours. i guess at the end of the day i'm not sure we'll get a second nascar race. but combinations of indycar and nascar could be a possibility. but that's really up to jim france, steve phelps, and obviously these are things that we can talk about. we spent the last six weeks with our heads down trying to bring this transaction together. so strategy and discussion with mark and his team really starts tomorrow so we're pretty excited with the opportunities. >> gentlemen, thanks for joining us congratulations on this deal roger penske and mark miles. >> have you been to the indianapolis 500 car race? >> no. >> even if you're not a huge car racing fan, 400,000 people, the
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speeds will blow your mind we're going, road trip. >> done. up next, your wall street look ahead, the key things every investor ndso ee twatch as we head into a new trading day when "closing bell" comes back. each day our planet awakens with signs of opportunity. but with opportunity comes risk. and to manage this risk, the world turns to cme group. we help farmers lock in future prices, banks manage interest rate changes and airlines hedge fuel costs. all so they can manage their risks and move forward. it's simply a matter of following the signs. they all lead here. cme group - how the world advances. you should be mad they gave this guy a promotion.
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it's been another very busy afternoon of quarterly results shares of uber down after gross bookings and monthly active platform users missed the mark shake shack also getting slammed today. sales came in below expectations and the real, real beating on eps and revenue and that stock is actually higher in after-hours trading. >> three stocks with really quick consumer adoption, kind of busy brand names, but no real clarity on long-term whether this is a very profitable business including shake shack, which makes money, but the valuation has not grown into it. so obviously keeping them on a short leash. >> uber eats lost -- the numbers are not going to be perfect, $186 last year and $320 million last year. their losses are accelerating. >> that's how you measure how fast they're growing. >> we'll make it up in volume. we've got a news alert on
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hasbro >> shares of hasbro down three and a quarter percent as the company announced it is offering a secondary offering of stock worth $875 million the company says it will use at least part of that money to fund its acquisition of entertainment one, a canadian content company and also the catalog of death row records. again, the company is saying it's going to offer $875 million worth of stock to fund this proposed acquisition if the acquisition does not go through, the company says it will use it tot repurchase its own stock. shares down about three and a quarter percent. back over to you. >> frank, thank you very much. so now we're almost done here let's look ahead to tomorrow you've got pelaton set to report before the bell. let's get a preview of another newly public company diana. >> specifically in subscriber growth, consensus estimate is
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for a loss of 40 cents a share on revenue of $197 million the stock is down around 14% from its original ipo process, but focus will be on the path to profitability. the company is facing increased competition as well as litigation over its music platform, but pelaton launched a 30-day free home trial and the holiday season is coming up next comcast is an investor in pelaton, morgan. >> thank you, diana. we'll be watching those numbers. pelaton went public at $29 so it's trading below that level right now. something else to be watching, do not miss will ford's exclusive interview with j.p. morgan's ceo jamie diamond with more from the interview here on the closing bell tomorrow afternoon, will ford will speak also a tony blair and aerial investments co-ceo melody hobson must-watch tv. mean time, mike santoli, i think
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if we were playing a drinking game and there was a phrase, it would be paths to profitability. that seems to be what's shaping up this week. >> the market response to some of those more speculative aggressive consumer names, that is the big question. also at this point in earnings season i was saying before i feel like people are like, fine, everyone is beating the actual bottom line numbers. we don't necessarily have to reward everyone. that being said, the market is checking off a lot of the boxes you would want to see if you want to know if this rally is well supported i think credit markets remain good. >> aren't you word that everything is up i don't mean every world market, every asset class around the world is up. >> it is kind of the everything rally. i think in terms of world markets, that's good i think again, the thing to look out for is people getting a little bit giddy, feeling like tactically there's really no downside because seasonal patterns are favorable i don't think that it's
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necessarily a red flashing light yet, but that's the thing i would be looking out for because the technicals have started to line up well. >> we haven't talked about ramco. >> we have ten seconds let's keep it until tomorrow because i'll be back tomorrow. thanks for watching "closing bell," everybody. >> "fast money" begins right now. >> life in the nasdaq market overlooking new york city's time square, this is "fast money. traders are tim, dan, and uber hits the skids after posting another billion dollar loss. and investors taking a bite out of mcdonald's. is this time to get into the stock? plus warren buffet berkshire hath away is sitting on a $130 billion pile of cash thoughts with what they do wit


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