tv Closing Bell CNBC November 19, 2019 3:00pm-5:00pm EST
the sustainability of this product, the allure of the spokesperson/owner of the company. >> alta has seen some nice traction as a result of being the exclusive retailer for the products, otherwise you've got to get it on her website only. >> cool stuff. >> that's it for "power lunch. >> "closing bell" starts right now. >> welcome to the "closing bell." i'm morgan brennan in for sara eisen at the home depot post sales miss, that's dragging that stock down 5% right now, which is taking the broader market with it away from those all-time highs hit again at the open this morning. that said, s&p's right at the flat line. we've got 59 minutes left to go. >> we do, indeed good afternoon i'm wilfred frost. let's take a look at what is driving the action this afternoon. president trump threatens higher tariffs if china does not make a trade deal kohl's, macy's nordstrom's, sharply lower. and while that might be a red flag for the u.s. consumer,
housing data rebounded with building permits at their highest levels in 12 years we are set once again for record time close on the nasdaq anything positive, of course, is a record the s&p has just dipped negative the dow has been negative for most of the afternoon. joining us for the full first hour of the show, steve weiss from short hill capital partners steve, very good to see you. how you doing? >> good to see you >> what stands out as to whether or not we're going to issee a meaningful move higher or lower? >> it's all about trade. home depot's announcement aside, which wasn't terrible -- >> wasn't terrible or was terrible >> was not terrible. and the stocks appropriately are saying, there's lots of people buying it into the earnings. and home depot, let's face it, they've delivered remarkably over the last decade, particularly since new management came in but i don't think it's really a referendum this report on the health of the consumer, which is what the market is based upon. and appropriately, we're barely down today, relative to how
we've moved higher the other issue is trade now, i think it would be fair to just look at trump's announcement today that if you don't make a deal, we're going to come with really high tariffs, his deflection from the impeachment hearings that are going on so i don't think it's pure coincidence that every time there's news, that he comes out with something to deflect. what most politicians would do so, look, it still turns on trade, most of the phase i, whatever that's going to be is in the market. we'll have a little more upside now, once they announce, but i think it's more of an overhang so seasonally, we are in a great spot the market should trade up through the end of the year. as we get into 2020, and as we have more clarity on who the front-runner is going to be for the democratic nomination, that's when it can get a little dicey. also, i've heard so many people come on our show, "halftime report," come on this show and others, earnings have bottomed we'll have great earnings growth next year, i don't know that you can bank on that
so maybe all we need is just a bottoming of earnings. but the market is taking its cue from steepening yield curve and saying that that, in fact, shows that the economy is better >> going back to the earnings picture and specifically, the retail wreck, the retail sector on pace for its worst day of the month of the disappointing earnings that we go from home depot and kohl's courtney reagan has the details. court? >> so both home depot and kohl's did report disappointing sales and both lowered their full-day forecast i spoke to richard macphail, who said, we are absolutely not seeing softness with the consumer we think the consumer is healthy. and he said, how the housing environment is healthy and stable macphail said that the lowered guidance by home depot, only a reflection that they're taking their time to roll out the initiatives. he said home depot is already getting about a half a point of comparable sales increase as a result of some of those initiatives, like its new website for pro customers. but it's had to roll out those site's features a little more slowly than previously planned
meantime, kohl's' comparable sales grew slightly after falling 3% gross margin did fall and aforementioned they lowered their forecast, too. ceo michel goss told me on the phone, i am absolutely convicted we are will return this business to profitable growth, though kohl's hasn't officially laid out its 2020 guidance quarter. they cut prices because of very warm temperatures, which hurt sales of cold weather items, and a competitive environment that intensified. so goss says that kohl'sneeded its guidance going forward to make the necessary investments it might need to make to increase current customer loyalty and capture new shoppers wilf, back over to you >> thanks so much for that summary. consumer sectors are towards the bottom of the pack energy, only one lower today let's send it over to mike for today's market dashboard >> here's what we have for ahead for you. first of all, can it long
endure, it being this calm, very orderly rally we have hovering near all-time highs. and never forget how far this market has come. we've hit something of a landmark, very long-term landmark for the s&p 500 and then union or division activist investors, often a divisive approach to how to extract value. they've had a rough time of it and unfinished work on housing a look at housing sector and overall economy. so first of all, take a look at a couple of glimpses of how calm and well-loved this rally has become the three-month s&p 500 realized volatility this is the average actual volatility shown by the s&p 500 has really hit kind of the bottom end of a two-year range right here the one-month measure of this is actually a little bit more dramatically lower so usually when you get very, very calm, it sometimes marks the approach of a turn this was back in july. you saw something similar. however, i want to point out, look at how low we stayed through 2017
it was a very calmly uptrending market the entire year we did not have many gut checks in that market and much, much lower realized volatility. there's no absolutely level at which this is a warning or an all-clear. take a look at sentiment towards very large tech and growth stocks the nasdaq 100 this is the daily sentiment index, so basically, trader's establishness relative to this index. this is a percentage of bulls right here that's about the 90% level you can see, it's pretty heavy right here and i'll point out a couple of places where this came into play it doesn't mean it's an absolute top, but it means the gains from here sometimes are harder to come by and maybe get reversed down the road. something to watch with the market is perhaps running a little hot in terms of the mood of traders >> mike, thanks so much for that we'll see you again a little bit later. for mow, let's bring in "mad money's" jim cramer for more on today's market jim, how you doing good to see you? >> i got 171,000 people around me so how could i not be happy?
i even have some of my favorite mascots with me. >> 171,000 people and one cat, if that's a cat or tiger >> it looks like game day. >> game day. the super bowl has nothing on this thing it's an extravaganza of intelligence >> well, jim, we want to get some of your insight about what you've got coming up from there in a moment. but firstly, we were just discussing some of those consumer names are you concerned about the outlook for the u.s. consumer following a couple of those earnings reports this morning? >> no. remember, rooer still in the wake of walmart, which is twag a lot of share and walmart had an absolutely spectacular quarter with 275,000 people going through i still think costco is good i think target will be okay tomorrow home depot had some pacific tech issues that are worrisome. but overall, they're strong. the one that i'm most concerned about is a company that has failed and failed and failed in the last couple of quarters, which is kohl's. and, you know, i've got to tell
you, thchis was a particularly miserable quarter and i did not like the way they portrayed of it as being a great quarter. just admit that instead of being convicted that you'll have a better quarter by the way, it should be convinced we'll have a better quarter. the only people making it work are off-price and online who is kohl's? who is kohl's? that's what we don't know. >> jim, are you surprised to see names like macy's and nordstrom down macy's down 11%. >> no, they're -- >> there haven't even reported -- >> they're analogs they're brick and mortar companies that are searching for an existential clearing. they don't know. it's serts meet camu and when you start going down that path, this is what you get. who is macy's?
who is nordstrom's i know who kcostco i know doug mcmillan i don't know who kohl's is other than a company that starts its conference call by saying it's doing well well well?! >> jim, just quickly, overall valuations as we sit here at these record highs once again. are you content with the level of the s&p 500 multiple? >> i hate to default, but what else are you going to invest in. i actually see, by the way, some car numbers of europe that were very good. i think if you get away from some of these smaller retailers, you've got to be pretty happy. and if the president just decides that he's going to take that he hates the chinese and they won't even buy our pork or our bacon so we're taking things up to 30%, we'll have a 5 to 7% hiccup i want you to have cash so you're ready to buy stocks like square that we just saw earlier this morning like nvidia that's come down from its highs like -- there's some of my buddies
salesforce >> another one >> which, by the way, i love disney, but does disney have game like this this guy went to stanford. this gi went to stanford this guy went to berkeley. this is a comp-psy major and got a 37 on his a.c.t.s. >> i don't think i've ever seen anyone bring more energy to the screen than you, but whoever is dressed up as a cat behind you, he must be sweating inside >> he's the greatest code writer -- best code writer in america? perfect. perfect. i love it here, wilf >> we look forward -- >> people are happy here we're not happy! >> we're happy here, too we're happy as well. jim, great stuff >> yeah, you're faux happy >> no, definitely not. definitely not anyway, "mad money" tonight, big, big lineup. >> thank you, guys >> from san francisco with jim including salesforce chairman
marc benioff, gary friedman, many, many more. you don't want to miss that. 6:00 p.m. eastern time peanut, we hameantime, we hs alert on a key funding vote. >> reporter: the house now has the votes it needs to pass a bill that would keep the government open through december the 20th the current vote tally is about 231 in favor, 188 against, 12 republicans so far voting with democrats in order to support that bill. but this vote is still ongoing remember, this is a short-term bill that would keep funding levels exactly the same. after it passes the house, the senate is expected to take it up before the government runs out of money on november 21st. after that, president trump would have to sign this bill, as well but fundamentally, guys, this just moves the funding fight from before thanksgiving to before christmas back over to you >> ylan, thank you very much for that we have got 58 1/2 minutes left to trade and we are set for a record all-time closing high on the s&p and the nasdaq, but
not the dow. still ahead, the debate over taxing heats up after lloyd blankfein responds to elizabeth warren's tax proposal. >> we shouldn't have unworkable, demotivating kinds of taxes that will achieve equality by reducing everybody's level of wealth >> ahead, we'll speak with former treasury secretary larry summers about his take on where tax reform should start. >> and later, the doj making moves in the movie industry. explaining a rollback of owns bars from owning theaters. we'll discuss that with antrt hie tiusacevmakan delrahim it's another big interview you do not want to miss. stay with us iverless cars, or trips to mars. no commission. delivery drones, or the latest phones. no commission. no matter what you trade, at fidelity you'll pay no commission for online u.s. equity trades.
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doesn't expect at&t will make the market start paying attention to the stock's fundamentals once again, it's down 3.7% >> investors continuing their bet on big-tech stocks new notes from morgan stanley, goldman sachs, and citi on institutional ownership and hedge fund trends show the biggest investors bought apple, facebook, amazon, and alphabet during q3. steven, what do you think of big cap tech right now i mean, we just had that chart up from mike santoli in the last block, as well >> i like it >> overloved >> i don't think it's overloved at all hedge funds just aren't that dominant, they never were. we talk about them a lot, but they're less dominant now. i like the tech because it's a momentum market. it's a market that's worked on multiple expansion apple has had down earnings, down revenues. but the stock's up 60% why? not because the fundamentals are so much better, but because the
market's going for those names and then if you put up good performance like microsoft, it's even better. so i think big tech continues to move higher. google, amazon, they're part of big tech i own them both. i'm less optimistic about them i don't see anything wrong about them, but they're in the headlines constantly, and along with facebook, which i also own, they don't stop. they keep going for more and more dominance basically, the headlines will continue, overhanging stocks will move up marginally as fundamentals work out, but i think the less controversial names will do better >> all right still ahead, spacex and blue origin among a new crop of companies getting the green light from nasa this week to bid on deliveries to the moon. nasa administrator jim bridenstine joins us in the latest installment of our watch this space series to discuss and after the break, former treasury secretary larry summers is here to break down one way he says the federal government could collect more revenue without even needing to raise
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welcome back to "closing bell." former goldman sachs ceo lloyd blankfein sitting down with cnbc's scott wapner today to weigh in on the wealth tax debate as plans like senator elizabeth warren's has kbgained the attention and ire of wall street >> at the end of the day, i recognize the great success of the wealth creation machine and the less successful part of the
wealth distribution machine, and so we can respond to that with progressive taxes. we can modify our estate tax, but we shouldn't have unworkable, demotivating kinds of taxes that will achieve equality by reducing everybody's level of wealth. >> joining us now for his reaction is former treasury secretary, larry summers, who is out with an op-ed this week, advocating for strengthening tax compliance thanks for being with us today what is your thought on the wealth tax and what are you proposing in this op-ed that would be a better solution >> look, i think the place we should start is by collecting the taxes that are owed under current law, but not collected that will be some $7 trillion over the next ten years. we can't get all of them, we can't get most of them, we can't get half of them, but i submit that we can get 15% of them. and that's $1 trillion over the next ten years and i think that's where the tax debate ought to begin. it's not where it ought to end
there's a lot we can do else to increase progressivity we need important reforms in the capital gains area, so that capital gains don't entirely escape taxation when they're passed in the context of estates or when they're transferred to charity we've got abuses in the corporate area, particularly involving foreign income we've got the continuing scandal of carried interest. so there's a lot that we can do starting with compliance and that's, i think, where the debate should have its initial focus. >> things like carried interest, mr. secretary, clearly is requiring of a law change to get rid of it. what about simple tax evasion? is that a large part of what you're saying has been uncaptured and what's it down
to and how is it resolved >> in order to address tax evasion, there's a bit that the irs can probably do on its own, but fundamentally, we need, will need a higher appropriation for the irs. it doesn't make any sense that we have shrunk -- the irs relative to tax collections by almost half over the last decade and not very surprisingly, our enforcement revenue and our enforcement efficacy has come down as we've done that. so restoring the funding for a decently function iing irs, addressing the situation that i think would seem unjust to almost every american, where people who get the earned income tax credit, none of whom make more than 50,000, are as likely
to be audited as people with incomes over 500,000 a year. that that can be true, while the irs directly measures that every hour, one hour of audit labor spent on taxpayers with incomes over $5 million generates almost $5,000 in revenue. and that's before you take account of the fact that if people know there's going to be more auditing, they're going to be less prone to cheat so if we simply don't try to crush government, but try to fund government, not in some new, exotic, big government way, but essentially in the way it was at the end of the day of the george w. bush administration, we can generate very substantial revenue along with using modern technology to target that enforcement in better ways
>> yeah. and certainly the irs, i don't know if you've been to their website lately, they could use a little modern technology for sure why do you think this hasn't been a bigger part of the conversation and how likely do you think it is that we actually see some of this fund ging go to that agenc, given the fact that congress as we speak is in the process of pushing through another resolution it can't even get the fiscal 2020 budget appropriated >> i think there are probably too many voices in congress whose idea of low taxes is enabling people to not pay taxes they legally owe and who want to have an irs that's effective in enforcing the tax code and i think that's very unfortunate for our country. king there are some issues around congressional budget procedures, seems to me that if you hire more auditors and you spend $100 and you bring in $700, that that ought to show up in the budget, like you've made
$600 and reduced the deficit, rather than as it does under current law, like you've lost $100, because you've spent more. those congressional budget procedures should be looked at will this happen i can't predict. i certainly think that it should happen and with the right president and with the treasury secretary prepared to invest in this issue and office of management and budget prepared to make the case, this seems to me to be the lowest-hanging fruit in terms of raising taxes from relatively high income, people without introducing new distortions or raising tax rates or placing new burdens on the law-abiding. >> who is the right president? >> oh, i'm supporting a democrat and i think there are a number
of very strong candidates on -- >> who >> -- the democratic -- on the democratic -- >> give us a couple -- >> i think vice president biden did an extraordinary job as vice president and as the kind of temperament of inclusion that a badly divided and fractured country needs right now. and i think he's put forward sensible, pragmatic, highly progressive programs, far more dramatic than you've seen in an past campaign on climate change, for example. very ambitious on making the tax system more progressive. and on making sure that the promise of universal health care is really delivered. but at the same time, not
declaring war on elements in our society that provide a large fraction of the jobs and that are necessary for our competitiveness. so i think that kind of approach that starts with the middle class, the very awareness of fairness, that doesn't engage in economic vilification as a strategy is the right kind of strategy >> larry, you tweeted recently that the combined tax impact of elizabeth warren's various plans is extreme so which part of the plans would you keep and what would you get rid of >> oh, i think i would rather start with my own plan rather than pick and choose you know, essentially, what senator warren's plans do as i read them, is they go through every option that has been
selected as the possible strategy for raising progressivity and tries to do all of them at once. and when you try to do all of them at once, you're collecting essentially about as much taxes as the total after-tax agi, adjusted gross income, of all the millionaires and i don't think that taxation approaching confiscatory is remotely feasible. and if it was tried, would have catastrophic economic consequences >> mr. secretary, thanks for joining us >> thank you >> it's time now for a cnbc news update contessa brewer has it for us. hi, contessa >> wilfred, here's what's happening right now. the world against toys causing harm has unveiled its annual list of the most dangerous toys on the market. a realistic toy machine gun, a nerve dart gun, and a plastic power rangers claw are among the
toys topping the list. >> amazingly, we're still finding products like this now, i want to be very clear, what i'm holding, i know what it looks like and it looks like a gun. it does not look like a toy. it is sold as a toy. to children. >> the city council in columbus, ohio, has approved a $450,000 settlement to adult film actress stormy daniels she was arrested and charged with three misdemeanor sex offenses, allegedly for enappropriately touching an undercover female officer. daniels sued after those charges were dropped a copy of the mona lisa has settled for more than $600,000 at auction, more than six times the expected price it went for sale at sotheby's auction house in paris an art expert says the copy was probably painted a hundred years after the original
that's a lot of money for a copy and you know what, they still don't know why she's smiling morgan >> you said it last week, 100,000 was a lot for this copy. >> yeah. >> $600,000. >> that's quite a bit of money right here you don't even know who painted it, you just know it wasn't the original painter >> with an iphonexr, take a little photo of the original and that's for free. >> you don't have to stare at it with all the crowds, i guess >> there's that. >> contessa brewer, thank you! we've got less than 30 minutes left to go here. here are the three things that are driving the action today president trump threatens higher tariffs if china does not make a trade deal retails getting crushed. and while that might be a red flag for the u.s. consumer, housing data rebounded with building permits at their highest level in 12 years. today marks one week from the launch of disney plus and there
welcome back we've got 25 minutes left to trade. let's get over to mike for the second installment of today's dashboard. >> this time, we're trying never to forget exactly how far the stock market has come over this long number of years, especially during this bull market. look at a 20-year chart of the s&p 500. something kind of significant is perhaps on the verge of happening, which is a doubling in the s&p from its prior peak right here in 2007, october 2007, peak in the s&p was 1565 times two, it's 3130 today's high, 3127 obviously, pretty steep angle of accent but if we had this going from 2000, it would look similarly steep from a similarly low base. the peak in 2000 was only a few
points below that. essentially, you had a flat line, a cyclical bull market and then we got to double there. is that going to matter? is this really a technical indicator? some folks suggesting maybe there's a muscle memory to the market the russell 2,000 was capped at twice its peak i want to drill into yields started going up and stocks caught up look where we are, on a six-month basis, stocks right here, bonds, long-term treasuries have come down a little bit in price, but now they're kind of going up in concert, kind of as they did for the first half of this year, into july, anyway. it looks like yields are getting a little bit lower than a lot of stock bulls would like, but not yet at a critical threshold just yet. >> mike, thank you so much for that steve, what's your take on that kind of trade-off at the moment. and how important are where yields are >> well, there are two things. first of all, there are half as many publicly traded stocks right now as there were 15 years
ago. so you have the scarcity effect, that's helping -- >> such an incredible stat it really is >> it is incredible. and continuing, m&a continues. in terms of bonds and stocks, there are only three periods since 1950 where stocks and bonds were down the same year. more often, they're up in the same year. so it's not anything aberrational that we're seeing, but the performance of both. in terms of the numbers, i don't think it means all that much it's not where stocks have come from you've got to focus on where they're going and what's going to get you there i think for now, we're fine. >> you mentioned m&a let's talk a bit more about that u.s. m&a deals above $5 billion have soared this year. 26% higher year over year, after hitting record levels in 2018. one bank capitalizing on renewed enthusiasm is rbc. joining us now from the rbc tech internet and mediacom conference is larry blankstein.
nice for you to join us. >> nice to see you >> so bill deals are up year over year, though small deals in the u.s. are not and internationally, what's the outlook. summarize where we are so far year-to-date >> yeah, it's really interesting. it's a bit of a bifurcated market we like to segment the market among the bigger deals that you mentioned, very robust this year dollar volume up year-to-date at 25% plus in the u.s. but total dollar volumes only up 4% and that's because deals under $5 billion have been down. and when you look at europe, facing its own types of challenges with negative interest rates and some political issues in certain markets, european large-deal volume is down almost 50%, year over year. and so when you look at the global m&a volume in total, total dollar volume is down about 8 or 9%. but it's been the u.s. big
deals, which, you know, many of which have happened the first few months of this year, that have been driving total activity >> larry, whether it's m&a activity or companies going public, how much hinges on the presidential election next year and what does that mean in terms of the window? >> sometimes, these presidential elections can have somewhat counterintuitive effects for example, we feel like it's a very good deal environment right now. obviously, all-time equity highs. good time to sell a company. also, near all-time debt cost lows good time to invest in a company. but when you look at 2020, obviously, there's a big dispersion of potential policy outcomes between the current administration and possibly, you know, a democratic administration and you were just talking to larry summers about tax reform and if you look at 2020, as we approach the new year, you know, companies look at what might happen with tax reform, you
know, would capital gains rates go up to equalize income, as some have suggested, would total corporate tax rates go up as some of the presidential candidates have suggested. how would the regulatory regimes in different industries and certainly anti-trust enforcement, how would that differ from, say, this year to the next administration. and if you believe that there's a chance that there could be, you know, a difference and you have a strategic move that you're interested in making, you know, it may be necessary to think about executing on that in a 2020 time frame. and as you all know, you know, you can't just sell a company in two months you have to -- there's lead time for these things we might actually see a bit of an acceleration of activity, you know, in anticipation of a political change >> larry, how often does the china trade issue come into your conversations with ceos, in terms of whether they think tariffs are limiting what they're able to do, if they stay
for a long period of time. is that a factor, or do they look way past that >> well, it's a great question i think most corporate board rooms that we're talking about these issues, they're concerned about the effects on supply chains that's more of an internal issue than really the deal environment. china inbound m&a is obviously off considerably you had a little bit of a, sort of, robust period there in 2015, 2016, before the chinese themselves sort of pulled back, and just given the overall environment with issues around huawei and the trade discussions, it's not a great environment for chinese activity that said, we just had the vice president of alibaba at our conference for lunch and he was laying out pretty optimistic perspective about the future of u.s./chinese relationship. and also the opportunities they have in the domestic chinese economy. so i think it's an important topic because of the uncertainty
and also the potential shifting of things like logistics and supply chains and suppliers, but in terms of the long-term macro effects, it's people are not really viewing that as a driver of deal activity and certainly, people aren't really looking to invest in china, per se, right now >> all right >> larry, thanks for joining us today. >> i'll tell you where they are investing right now. they're involved in three different chinese situations where chinese companies are acquiring u.s.-listed chinese companies. and in some cases really ripping off shareholders, because they own a controlling block and they control the board and they're just saying, we're buying this too bad, come sue us and we're suing one right now. the second largest car rental company in china, you know, you had management and the family said, we'll buy it 1350. and they said, wait a second
we'll own 25% and sit on the board and we'll pay 1550 they got together and bought it for 1225 and it's worth 20 so you see more of that happening, which the s.e.c. is taking notice of >> we'll have to see whether the correct legal processes arise in the future we've got much more, by the way, ahead from the rbc krmpbs that we were just joined from, including maka delrahim from the department of justice about the antitrust and the doj's move to terminate longstand rules for movie distribution >> and we've got your last chance trade and steve's looking at one raietler that's up nearly 70% so far this year stay with us ♪ ♪
14 minutes left to go here in the trading session the s&p is up one point right now. steve, what's your last chance trade? >> target. tonight typically do they're reporting earnings tomorrow i own the stock. it's been a nice gain. didn't get all 70%, but i added to it this morning i think it's a market share gain levee what cornell is doing, like cramer said target's my last-chance trade. >> there we go that's a pick for steve ahead of earnings tomorrow. and don't miss an exclusive
interview with the target ceo, brian cornell, after the retailer reports earnings tomorrow morning on score box, 6:30 eastern time. up next, we'll bring you uninterrupted coverage of the final miteofhe tdenus tra and we'll take you inside the market zone when "closing bell" returns. ozart. 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. woi felt completely helpless.hed online. my entire career and business were in jeopardy. i called reputation defender. vo: take control of your online reputation. get your free reputation report card at reputationdefender.com. find out your online reputation today
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from short hills capital partners here as well. we're going to start home depot. the stock plunging today, on pace for its worst day in more than a year after missing revenue estimates and cutting its 2019 sales forecast, saying it would take more time than expected for its investments to pay off. home depot ceo craig menear pushed back on the notion that home depot's guidance cut was a result of macro pressures. >> when we look at what happened in discretionary spend categories, particularly that are high-ticket discretionary spend, we don't see anything there that concerns us at this point. >> mike santoli, i mean, it's been a bloodbath for retail stocks today, even names that haven't reported earnings yet are selling off pretty steeply >> yeah. >> how much of this is home depot specific how much of this is consumer >> i think it's not real consumer i think it's home depot, and more to the point, kohl's. i think the market as a whole is taking those comments almost at face value saying, this is not a
macro story, this is not consumer fatigue it is, one, home depot, which is a crowded stock that went into this at an all-time high that's a little repricing based on all of those tactical dynamics kohl's, not a good number, dragging down department stores and challenged structurally declining mall-based stores. >> what's amazing about this is that ceos don't usually take the hit. they say, oh, it was a macro environment. and here, it's a ceo saying, we're just rolling out, you know, these changes a little more slowly. so, i agree with you, i think we got a little too frothy. kohl's, for as long as i've been around, that company, it's always been a question, are they going to survive you see changes there moving slow as i said, i prefer target >> and mike, the consumer discretionary sector itself is off its lows today >> if you get away from -- as i said, those kind of beaten up,
mall-based retailers, which have a small market value, let's remember, it's obviously not spreading beyond that. >> seven minutes or so left in the trading session. qualcomm holding its analyst meeting today in new york. let's get to jon fortt who spoke with the company's ceo jon? >> yeah, wilf, the stock struggling a bit, down not quite 3% on a day when the company is really focused talking about growth ceo steve malakoff telling neme that the size of the market that qualcomm will be able to address will grow in three years >> it goes a dramatic amount in three ears it gives you the sense of how important 5g will be to qualcomm business and the total amount of economic impact of 5g in 2035 will be $13.2 trillion so 5g is going to be an important thing. you know, qualcomm really does
not have an opportunity problem. >> and qualcomm's new cfo also breaking out for the first time how much revenue it's getting from platforms beyond the smartphone think cars, pcs, iot $3.4 billion in fiscal 2019, compared to $11.3 billion from phones, guys >> it was a great interview, jon, on "squawk alley" earlier today. thanks for bringing it to us steve, where do you stand on qualcomm and i guess even more broadly, just how big is the opportunity in 5g or have investors gotten their arms around it >> i've done a lot of work around 5g and i did read qualcomm's report, qualcomm has a great position there, but i own the smh, which is the semi index, i own sky works i've seen other forecasts that say the spend just over the next two to three years is going to be $3 trillion for 5g. put it this way. you cannot have autonomous cars without 5g
because you need the lack of latency. and you're running out of capacity in your 4g networks, so 5g expands it by a hundred fold. it's ten times as fast so i think qualcomm is right in the sweet spot, as are many of the others so it's a great space to be in >> excuse me moving on, it's been one week since disney's new streaming service, disney plus launched, and some user accounts have been hijacked, according to reports user account information like e-mails and passwords began appearing on the dark web just hours after the service was rolled out and were being sold for as little as three bucks disney responded to the report saying, it takes the privacy and security of our user's data very seriously and there is no indication of a security breach on disney plus meantime, credit suisse out with a note saying that disney plus's launch has had little to know impact on netflix user trends one week in. mike, i guess a couple of these at least reported and denied
teething problems, but the numbers remain enough to protect the market >> and both of those problems are actually reflections of extremely heavy demand and real quick uptake by consumers. so, right now, it's not about how many people who want disney plus are actually paying the monthly fee. it's how many want it in aggregate, how many are eventually going to get it, and the netflix side, i don't think that's too surprising that people didn't rush out to immediately cancel netflix the question is, over time, does it create more churn does it really mean netflix is pretty much at domestic saturation in terms of subscriber levels. that's a longer term issue >> why would you cancel netflix when you're getting disney plus for free a lot of people are. i'm going to go on record here i love free and will do a lot of things for free. i own the stock, i like it
>> shares of slack are down 50% from their all-time highs. let's get to leslie picker for more on this story today it's sinking about 8.5% on largely on competition concerns. microsoft reported it currently has $20 million daily active users on its teams product, which completes with slack's product that had about 12 million active daily users in july microsoft has been able to quickly ramp up its user's base, because companies that already subscribe to office 365 get its team messaging service for free. slack's growth depends more on converting unpaid users to paid users, which can be a harder hurdle, analysts say >> two-and-a-half minutes to go. the nasdaq is still higher, but the dow and the s&p just lower mike, you've been looking at the
internals. >> overall breadth is about even, but look at the new highs versus new lows. new york stock exchange and nasdaq, there's still a kind of stubbornly high number of new 52-week lows, more than 100 on each, the nyse and the nasdaq. it doesn't necessarily mean that the overall market is going to roll over, but it does suggest there's an undertow down there a lot of energy in retail, a stealth pullback happening and the russell 2,000 is on the verge of breaking above a long-term ceiling. >> let's send it with rick santelli >> look at an intraday of two-year note yields we are now unchanged on the day. out to the long end, 30-year bonds are down five basis points and that's off the low yields of the day. finally, let's look at the ten-year, if you start at the third week in october, you can clearly see, we're getting very close to testing some of the lowest yields for november
and this is despite the best permits at 1.46 million seasonally adjusted analyzed units in 12 years. now we'll go to the nasdaq and frank collin, where we are now up month to date close to 3.5% >> hey, there, rick. lucky number 13 on the nasdaq. another fresh record close amd, the biggest gainer, seeing a more than 3.5% gain. also broadcom, up more than 2% after a morgan stanley upgrade, but chips overall down very slightly great day for biotech, however that etf up 2% vertex, the best performer after a guggenheim upgrade we're also look at altria. those shares down more than 2.5% today, after the new york attorney general announced it is suing juul for its marketing practice towards minors. california announced a similar lawsuit yesterday. altria owns a 35% stake in juul, and its shares have fallen about 18% since the first vaping illness was reported now over to bob pisani at the new york stock exchange.
>> the entire decline in the dow jones industrial average is due to home depot. more than 90 points of that decline is due to that s&p 500 we're taking bets on whether we can get into positive territory. it's exactly flat, down a fraction of a point right now. we'll see if they can do that. it's been trending up in the last couple of minutes the dow jones is down 100 points >> good afternoon. welcome to the "closing bell." i'm wilfred frost. >> and i'm sarah brennan along with mike santoli. >> let's check in on how the markets closed the nasdaq, another fresh record all-time closing high. the dow down 100 points, selling off a little bit into the close, as you can see not too far off the lows of the session, which was down 141. also and the energy the
worst-performing sector. health care, the best. >> volatility was low, the s&p 500 now hasn't moved 1% in either direction since october 11th, just to give you a sense of the types of moves we've been seeing in this market. joining us to talk about the market day, steven weiss, founder and managing partner of short hills capital partners is still with us, along with charlie brezinsko head of investment at aerial investments. mike santoli, though, let's start with you taking a little breather off of the record highs we've skraccrad or clawed on to. >> really trudging to marginal new highs in the last few days the market does hold together on the index level. i think that's one of the takeaways. the other, there are excuses to sell off the president had some further static on the trade wars and all the rest of it i don't really think you can draw too many conclusions, but you are seeing some wear and tear as i mentioned, a lot of new 52-week lows a little bit of fatigue evident in parts of the market, but right now, it's just being kind
of solved through going sideways as opposed to pulling back >> charlie, would you take profits for this year at this stage? >> no. no there's still great value in value. mike just said that there are pockets that are hitting new highs and value is finally starting to catch up versus growth we think next year is going to be a much better year from the economy. we think we're finally going to get a trade deal, which will be great for some of these cyclical stocks so now is not the time to be sellinging 12 p\e stocks, because the s&p has a lot of 20 times stocks >> so the question to you? >> no. i mean, you're seasonally in a great spot with the market moving higher. you've got a coordinated, synchronized, global easing. the fed's on hold. so, why would you do it? there's nothing out there right now other than the risk that a chinese deal does not get signed and that we ratchet up the tariffs, which you have to have a view on, to be in the market my view is that we keep kicking
the can down the road, perhaps we sign it, but nothing dramatic or traumatic is going to happen. so i'm keeping my chips in now, having said that, i did sell the xbi, so it's only natural it traded up nicely today. so -- >> biotech >> right, a biotech index, like the ibb that we showed so i think you have to be somewhat disciplined as an investor and take profits where you exceed your price targets, rather than having a higher price target like we see the sell side often do >> the nasdaq at a record high again today at the close but the russell 2000 still trading below its record high reached last year. a new note from bank of america is bullish on small caps, saying the u.s. market is about to enter a recovery phase and the small cap leave large caps 90% of the time during this phase. the russell has obviously lagged for quite some time, plagying a little bit of catch-up of late >> it's trying
and it's very much in tune with all the other calls and all the other messages that the market is trying to send, which is, cyclical stocks doing better, financials doing somewhat better since august and even global stocks doing better that tells you the market is attempting to handicap an upturn, a reacceleration in macro growth if that were to happen, the russell is right there, ready to ride along with it i do also think that small caps are usually cheaper than large caps, but now they're even cheaper than they usually are. >> given the fact that we have seen something of a rotation into value in recent weeks and given that underperformance we've seen in small caps, would you be making investments here in this part of the market >> absolutely. and in full disclosure, aerial, my firm, is famous for small cap investing. this is when we get very excited. over the last hundred years, finance professionals have po t pointed out that small cap tends to outperform large cap and value outperforms growth
and the last ten years has been this extraordinary anomaly and as a result, we think small cap is very well positioned, particularly small cap value >> charlie, where are you on some of those financial services companies you've recommended to us in the past not the banks, but private equity, asset managers do you feel like they've run up enough >> thanks, wilf, for pointing that out i mean, blackstone made an incredible move this year, up almost 80%, 75%, when they converted into a c copper from a partnership. kkr is still attractive at only 14 multiple. the name we're pounding the table on is lazard lazard is trading at ten times earnings because m&a is depressed, emerging markets hasn't kept up lazard at ten times earnings, it's still a partnership, it can't be owned by a lot of the index funds. that's the name we're pounding the table on >> let's send it over to bob pisani for a look at today's biggest movers bob >> the big thing here was, home depot is the main reason the dow was down almost 90 points, the
home depot it had all sorts of ripple effects on the retail space, everything, big lots down 6.5% bed bath and beyond, bbby also had a very weak day. dillards, the same situation, all the department stores, also weak this is what we call the nightmare for the brick and mortar stores overall. inability to grow, you have soft traffic, and you have little or no sales growth. a lot of these companies having the same problem, so not just a particular problem with kohl's today. guys, back to you. >> steve, in addition to home depot, shares of boeing weighed on the dow as well, started the day higher, then we got some more negative headlines tied to safety for the 737 ng, i believe it was, aircraft you've been a shareholder in this name.
your take? >> yeah, and i was on the show on a day when all the bad news came out and traded down 320 or 330 and i said, step up here i think you can still step up here there's only two competitors, airbus and boeing. and airbus couldn't even meet their delivery schedule. i'm not worried about people getting on the plane, on the max. that's going to be the safest plane out there with all the eyes on it that's a bet the company type of plane. so, look, i still think you can buy boeing here. i personally have enough of it, so i'm not buying anymore. but, sure, it's a great stock. i'd own it >> mike, we bring up this point a lot, that when yields don't rise on the long end, the market strug struggles. applies again today. >> i have to say, the curve has flattened, too rick was just talking about that i think it's getting near a level where maybe it's going to get investors' attention a little more if yields continue lower. go down below 1.75 quarters.
it's going to upend this story that the overall markets are indicating a much quicker pace of activity, economic activity we're not there yet. i think there's a little bit of noise in what's happening in terms of 178 but it did hold the overall market in check. at least partly. >> we've got an earnings alert on urban outfitters. courtney reagan's got it for us. >> we have a slight miss here on earnings for urban outfitters coming in at 56 cents a chair. the street was look for 57 cents. the revenues a hair light at 987 million. the street was looking for about a billion there. comparable sales altogether for the total company, all the brands up 3%, slightly better than expected by brand free people up the strongest by 9%. anthropology sales up comparable, 4% and urban outfitters, the namesake brand, those were flat. they do cite positive online digital sales. and for the fourth quarter, the only real guidance is a quote
from the ceo, saying look ahead to you'q4, we are encouraged by sales to date but realize our highest volume dates are yet to be written so yet sales are positive quarter to date for the fourth quarter. shares of urban outfitters are down sharply in reaction, almost 11%. back over to you >> courtney, thank you steve, i think this goes back to the conversation we were having earlier, winners and losers in retail right now, right? >> there are how crazy is that. they miss by a penny, they miss by not even 1% on the top line there's no surprise in same-store sales and the stock is being sold. who's selling it the algos are reading the release, the machines go and they sell the stock. these are generally opportunities. now, i'm not involved in the name i have no interest in being involved in the name, but if i were looking at it, i would step up right here. that's what i did with adobe, when it got hit.
when you have all of these releases, and you get rewarded >> i don't think you have high conviction shareholder bases in any store, in mall base, kind of chain retail right now, specialty retail stock was kind of destroyed from 45 down to 20 in august. went up 50% in the overall rally, august up to recently and now it's giving back a quarter of that gain or half of that gain. >> we will leave it there, everyone thanks so much for joining us. steven weiss and charlie brezinskoi >> still to join with us, makan delrahim and later, our journey through space week continues when we talk to the administrator of nasa. he'll tell us what trends investors need to watch, coming up "closing bell" is back in 90 we're honored to have you on campus for the official visit.
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welcome back to "closing bell." let's send it over to mike santoli for his third dashboard of the day mike >> morgan, one big question in markets and elsewhere, union or division there was an op-ed by carl ican in the "wall street journal" today about some efforts on the s.e.c. that he sees as hostile to activist investing regarding proxy advisory look how activist investors have done relative to the s&p 500 in recent years not very well. activists, hedge funds are in yellow right here. two years they outperform.
2015 and 2016. that was kind of the heyday of activism going out, saying that companies should recapitalize or break up or change their strategy it's been pretty poor in the last couple of years now, take a look at the spin-off stock index. this is an exchange-traded fund, cfd is the symbol. it's recent spin-offs, how they perform relative to the market that also basically peaked a couple of years ago. it's been an awful performer historically, spin-offs have been very good performers long-term, a lot of hedge funds involved maybe this is something to do with it. there is a theory out there going around, that perhaps activists forcing spin-offs of bad businesses is thwarting spin-off returns out there that's something that boyer value has put out there. sort of an interesting symbiosis of how they perform. >> going back to the hedge fund performance, last year has got to be the worst. for activists given that it's a down year. in particular when it's a down year >> foractivists in particular.
activists are not saying, we're just going to preserve your capital. they're saying, we are going to create good absolute positive returns. that's right, they have not done so it seems like maybe we got a little bit too crowded of an area and a lot of assets thrown in it and companies are better defending themselves >> mike, thank you still to come, justice department anti-trust chief makan delrahim will discuss the latest on the probe into big tech companies plus, nasa announcing partnerships with five commercial space companies including spacex and blue origins to take cargo and people sa the moon. na administrator jim bridenstine joins us exclusively coming up on the "closing bell." for every dollar you spend at a small business, an average of 67 cents stays local. macon. macan. shop small and watch it add up. small business saturday by american express is november 30th. when i lost my sight, my biggest fear was losing my independence. mmm... good. so i've spent my life developing technology
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welcome back a key fidelity executive involved in overseeing investments in wework and uber is leaving the company leslie picker joins us with more leslie >> andy boyd is leaving fidelity to start his own fund. now, while he didn't actually manage money for fidelity, he analyzed deals and negotiated terms on behalf of the firm's portfolio managers that wanted to buy stakes in private companies. a fidelity spokesman confirmed in a statement that after 15 years at fidelity, boyd decided to leave the firm to pursue other financial interests. he added that a successor will be named in the near future.
fidelity owns wework, 2 and me, juul and spacex as well as those that recently went publicly uber and peloton. many of those holdings have had to be written down by the firm boyd joins several of his private investing peers in leaving established investment firms to start their own funds for example, earlier this year, henry allenboeingen departed t. rowe price >> leslie picker, thank you. still ahead, we're going to discuss a recent nasa report that spacex flights to send astronauts to the international space station are significantly cheaper than boeing flights. and we will also discuss that news exclusively with nasa administrator jim bridenstine when we come back. emerging markets obsolete?ew of at pgim, we see alpha in the trends driving specific sectors of outperformance. where a rising middle class powers a booming auto industry... a leap into the digital era draws youthful populations to mobile banking and e-commerce... trade and travel surge between emerging markets.
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and non-24 can throw my days and nights out of sync, keeping me from the things i love to do. talk to your doctor, and call 844-214-2424. ♪ 33. welcome back tech is on pace for its best year in a decade, is the sector up more than 40% year-to-date. the rally comes despite big tech giants such as google and facebook facing increased regulatory scrutiny from the justice department and the federal trade commission joining us now in a cnbc exclusive is mac makan delrahimd of the doj's antitrust division and joins us now from the rbc tech conference. good afternoon to you, mr. delrahim thank you for joining us >> good afternoon. thanks for having me >> i wanted to start with a
big-picture question, if i may, around the topic of tech relati regulation and that is, whether or not, if the u.s. doesn't act sooner rather than later, we'll see other geographic areas like the eu move well ahead in regulating tech companies, which tend to be u.s.-based, of course, and that will lead the u.s. being a follow-up in terms of tech regulation, rather than a leader >> well, i don't know if that would be accurate. we all look at the facts and the laurel vaw relevant in our jurisdictions, as the deputy attorney general has announced we are moving full speed ahead, but we have to wait and see what the investigation reveals. we look at the facts and the laws as applicable in the united states >> tech platforms could reach beyond antitrust issues, those were the comments yesterday. how? and what would that mean in terms of the reviews that your team specifically is undergoing right now?
>> so the antitrust division is focused on the anti-trust aspect and the competition effects of our investigation. but as i'll refer you to the deputy attorney general, jeff rosen's comments about the -- you know, what other policy implications there might be, what he said was that, you know, should there be other areas that will be policy tools that could address, for example, consumer, privacy protection, and other areas. >> when we talk about consumer data privacy and the potential misuse of it, is that a factor for you to consider, whether directly or indirectly, it comes to antitrust >> sure. so as i have discussed this recently, the possession of data, you know, we view data like other assets, but you could have data and the question is,
is a company that has market power use that data to either maintain or perhaps acquired that market power through the abuse of it. so we'll have to take a look to see how it affects the competitive landscape, but we also have to be careful. because all data is not created equal. there's, you know, user data, which is, you know, our information, email, cell phone, name, and others, where many people could have, but there's also usage data, which is very specific, during a period of time that might be much more unique and there's a lot of other types of data that different companies have so we are focused on -- on that. and not all data is created equal. >> we've seen a number of big cap tech companies that are under investigation or under anti-trust scrutiny right now continue to make deals facebook, acquiring control labs, alphabet, acquiring fitbit and i realize some of those
deals aren't necessarily tied to the areas of businesses with those companies that are being probed but does it alarm you to see the deal making continuing among some of these big companies, given the fact that previous deals are part of what's being scrutinized now in terms of how they got to their market dominance? >> well, i think it depends on the character of those deals i won't comment on any specific deals or any specific company, but, you know, some transactions may not suppose the same competitive harm, you know, one than some other ones that might actually either be a competitive threat to those companies or combined together, they might pose other types of competitive harm so not everyone -- it was an exchange that chairman cicilline and i had last week at the house judiciary committee, where he suggested or hypothesized, should there be a moratorium on these companies making any kb s
acquisitions, and i said, no, because some of the acquisitions could be pro-consumer and pro-competitive. so we have to take a look at all transactions, but it's an area that many people are discussing and considering. >> do you welcome the state ag's separate investigation of the moment into google or do you think that things were progressing as one >> well, things are progressing largely in concert with each other. we have a great working relationship with the state ags. many of them are very -- have very capable offices and i think everybody is rolling in the right direction, and we have, you know, confidentiality agreements in place, so we'll see how those investigations develop. sometimes, state ags and the federal enforcers don't always see eye-to-eye at the end of an investigation than they do in the beginning.
sprint/t-mobile mergers is a perfect example of that. but we'll see. i think at this stage, we're working well together and i think there's a lot of value they can add to the investigation. most importantly, i think what it shows is that on a -- there's broad bipartisan interest and concern about the competitive effects of some of these companies. >> when youlook back at antitrust investigations into another tech company, microsoft, a couple of decades ago, that basically stretched out for years, if not decades. how long you expect these probes to last for the tech companies under scrutiny now >> it's really hard to take a guess at that. i think, like i said, there's a lot of resources that we have devoted to it. but these are complicated. and they are fact intensive. these are markets that are within themselves are quite complicated, so, we're taking the time to do it right. we don't have any, you know,
preconceived conclusions at this stage, and so we are working towards that microsoft took a number of years, you might recall that that was one where the federal trade commission had started an investigation, they ended up deadlocking 2-2. and the justice department took that on. and, you know, state ags were involved, as well back then. now senator richard blumenthal was then an ag of connecticut and he was quite active on those matters. >> i wanted to move on, mr. delrahim, if i may, and talk about banks and the financial sector you've approved the bb&t/sun trust merger it's a different type of market where there are thousands and thousands of banks how do you think about it when you see what were the 16th and 17th biggest banks merge to become the 7th or 8th biggest bank and the way that would damage competition for the thousands that remain smaller than they
are, compared to enhancing the competition with the five or six that are bigger. how have you weighed that out? >> so, as you know, we look at the overall market, as well as the local markets where some of these banks will play. and our role is an advisory role to the fdic, the fed, occ, and the other banking regulators under the banking laws and that was one where it took us a little bit of time, but we worked closely with the banks, both sides, as well as the divestiture buyer. and we came to a conclusion that in certain markets, there were some branches and assets that would hurt either the retail or the small business market and we were able to get a divestiture that addressed our competitive concerns and we worked closely with a divestiture buyer that was identified by the banks to
acquire those. and the merger themselves will provide -- they'll make them a stronger competitor. because they'll be able to put in the new resources, the technology advancements, as well as the improvements that they need so we're very pleased with the way that this ended for this transaction. >> so would you be open to further consolidation across the banking industry a lot of banking experts and ceo talk about the need for broader consolidation. would you welcome that >> well, i'll leave it to the banking regulators to see if that improves the health of the banking sector from a competition standpoint, we'll take a look and evaluate each transaction on their own merits and the facts they present to see whether or not it would violate the antitrust laws and what remedies it would be. but i only enforce the laws. i don't actually make the deals
there. so to the extent that they don't harm the consumer, we would welcome those transactions, if they actually benefit the consume consumer >> just to switch gears again, the justice department asking court to scrap the old antitrust decrees. would we be having this conversation would the doj be looking at the undoing of these 50-year-old plus roles if it wasn't for the meteoric rise of streaming >> we probably would, because the markets, the exhibiters, that market has shifted, as has the production companies just for the purpose of your viewers, those descent decrees were really settlements that the justice department had with those five studios, paramount and a few others that existed back then. and it was to resolve an antitrust case, the justice
department brought in 1938 and these were resolved in 1948. and since then, through these decrees, that business has been regular utilited this way and i just thought that we should take a look at all of these holistically and see if it actually makes sense and in our determination, it didn't seem like our continued involvement in those consent decrees, actually made sense in the market place they actually might be preventing innovation that could occur, that consumers could very much enjoy >> makan delrahim, thank you for joining us here on cnbc. makan delrahim, the anti-trust chief at the doj appreciate your time >> thanks so much for having me. it is time now for a cnbc news update with bill griffeth hey, bill! >> thank you, morgan here's what's happening at this hour at least one person was killed, eight others injured in clashes between bolivian security forces and supporters of former president eva morales. that was near a major fuel
plant. the violence occurred after some bolivian cities reported food and gas lien shortages because of demonstrations by pro-morales groups new york is the latest state to sue juul labs saying that the e-cigarette maker used deceptive and misleading marketing practices. the attorney general letitia james announced the lawsuit, saying the company violated state law by marketing to minors >> it misrepresented the safety and the therapeutic value of its products by saying they were safer than e-cigarettes and suggesting that consumers make the switch, when in reality, juul's products contain significant amounts of nicotine and are not cessation devices. >> and finally, daytona international airport was evacuated this morning after a suspicious item was flagged during a security check. turns out it was a bottle of lotion after about an hour, the bag was cleared and normal operations
resumed. you three have a lovely rest of the day. see you later. >> you too, bill thank you so much. bill griffeth. >> thank you it was another explosive day of testimony in the house impeachment inquiry hearings ylan mo ylan mui has the details >> reporter: adam schiff and his chief counsel are in the middle of questioning the two afternoon witnesses. one of them is timothy morrison, a former nsc official who was listening in on that july 25th phone call afterwards, he asked the nsc lawyers to review the written record of the call and restrikct access to it >> i feared at the time of the call on july 25th, how its disclosure would play in washington's political climate my fears have been realized. >> reporter: the other witness testifying is kurt volcker, the former special envoy to ukraine. he defended his role and said that never knowingly participated in any effort to get ukraine to investigate vice president biden. he said in his mind, there was a sharp distinction between investigating burisma and
investigating biden and the latter, guys, he said, would have been unacceptable back over to you >> ylan mui, another busy day in d.c. thank you for bringing the latest still ahead, home building permits surging to a 12-year high how that could impact economic growth, coming up. plus, we speak exclusively to nasa administrator jim bridenstine on a mission to return restaurants to the moon i am totally blind. and non-24 can make me show up too early... or too late. or make me feel like i'm not really "there." talk to your doctor, and call 844-234-2424. ♪
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it's a viable effective way to support your other investments long into the future, and another way aag is working to make your retireme... better. don't wait. get your info kit now! welcome back nasa announcing five new partnerships with commercial space companies, adding elon musk's spacex and jeff bezos's blue origin to the art misprogram, which aims to send large payloads and eventually people back to the moon by 2024. joining us now in the latest installment of our watch this space series is the man, jim bridenstine. he's at the cme global financial leadership conference and joins
us now administrator, great to see you. thanks for joining us. >> well, thank you it's good to be with you >> so i think i need to start with the money trail here for artemis. we've got, as we speak, lawmakers voting on another continuing resolution to keep the government funded, but even as we see that move forward, the fact that we don't have the fiscal 2020 budget appropriated, how much of that is a challenge to being able to see this 2024 deadline met for artemis >> well, it is definitely a challenge, but i will tell you, i really do have confidence that in december, i think that an appropriation bill will be complete i will tell you that this is not unusual. i was in the house of representatives myself after the fiscal year began. we were in crs until right before christmas, pretty much every year, so i am not losing hope and i will tell you that the artemis program has strong burp support. people are excited about going
forward to the moon, sustainably, going with commercial partners, going with international partners, and indeed, going now to the surface of the moon with the first woman in history so this has strong bipartisan support and i really believe that we will have an appropriation bill before the end of the calendar year >> administrator, can i ask a big-picture question and perhaps expose my ignorance in front of the spacex with morgan next to me, but what is the ultimate point of going back to the moon again? i guess, 50 years ago, there was a point in just going there for the sake of it there's surely no point in going for the sake of it again why do we need to get men and women back on the moon >> no, we don't go for the sake of it. i want to be really clear. when we talk about what we got out of the apollo program, a lot of people watching this are going to watch on directv or dish network maybe some people are going to see it via internet broadband. a lot of rural oklahomans get
their internet from space and they're going to watch this program on the internet from space. we talk about xm radio, maybe people are going to listen on xm radio. the way we navigate, look at gps. a capability for navigation, created by this little agency called nasa, now operated by the department of defense. we look at how we predict weather, how we understand climate, how we do disaster relief in fact, look at every banking transaction in the united states of america, dependent on that timing signal from gps look at the -- >> but that doesn't need another man on the moon. >> no, so, what matters is what we get from exploring space. we get new technologies, we get new capabilities and when we look at the investments of the united states of america, those investments in space return many, many, many times what that investment actually is. it's not like, really, any other government program it's a program that results in american greatness it results in exports. here we are, at the global
financial leadership conference. and we were just on stage talking with people about how right now, the united states of america has 60% of the market share, when it comes to launch that is happening because of investments done by nasa so, that is a net export for the united states of america, at a time when we had -- when we have trade deficits and everyone is aware, my boss is worried about trade deficits we're bringing america back from a launch perspective, but also from a communication perspective, from a navigate perspective. even from weather. nasa is involved in all of these things and we're going to lead the world, which is what people expect from us >> yeah, investments from nasa and also increasingly from commercial space companies, as well and i know you just announced yesterday the selection of more companies that are going to participate in the commercial lunar payload services project but in terms of the rocket that's going to take people back to the moon, sls space launch system, it represents kind of an
older business model, if you will, for nasa it's contracted out to boeing, but it's developed and owned by nasa will this be the last launch vehicle that we see that be the case for >> well, i think the sls rocket is going to have staying power it's going to be around for a long time, because the cost of development is significant but here's what's exciting right now. when we go to the moon this time, we're going to have a space station in orbit around the moon called the gateway, and the sls rocket is going to take the orion crew capsule with american astronauts to orbit around the moon on what is called the gateway, this is this space station and orbit around the moon and we'll have commercial landers, as you identified, a lot of excitement around commercial activities. the president likes to say, rich guys love rockets. well, we're giving rich guys and by the way, private equity and even institutional investors opportunities to partner with nasa in these capabilities anyia
way where nasa is the customer and in the owner and operator. sls has been under development now for almost a decade, but we're on the five-yard line, about to punch it into the end zone but we'll need to take payloads to the surface of the moon and the gateway and those will be delivered by commercial rockets and we'll have commercial landers going back and forth reusably to the surface of the moon here's the thing we're leading a coalition of nations back to the moon sustainably. in other words, this time, we're going to stay. it's the united states of america leading the world and i think that's an exciting thing and yes, commercial partners are important, because they're going to go get customers that are not nasa and that drives down our cost. it increases access, and it preserves american leadership. >> got to get your thoughts on virgin galactic going public here at the new york stock exchange a couple of weeks ago first publicly traded space tourism company. how closely are you watching
that situation and how do you think it reflects back on broader human space flight become do you see it as a positive or something that can present some higher risks and challenges >> we are so proud of them and we want them to be successful. in fact, their very first flight with humans, in fact, it had nasa payloads onboard. we want to partner with commercial industry. we want them to be successful, because nasa has a goal. our goal is to be one customer of customers in a robust commercial marketplace, driving down cost and increasing access. but we also want to have numerous providers that are competing against each other on cost and innovation. and that's how we create this marketplace that is sustainable. the president wants to go sustainably to the moon. this is an example of how we develop sustainable economies, where nasa can be a customer and have more access than ever before >> all right we didn't even get to commercial -- >> by the way -- when all those
tourists sign up to do those activities, it drives down our costs. >> good to know. well, we didn't even get to commercial crew, but i have a feeling you and i will maybe have a chance to discuss that before the year is out jim bridenstine, administrator of nasa, thanks for joining us today. >> thank you always >> tomorrow, our "watch this space" series continues. always outspoken chamath palihapitiya chairman of virgin galactic will join us tomorrow on the "closing bell." don't miss it. >> up next, building permits soaredodkean tay mi stoli will head to the telestrator with what that says about economic growth.
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yeah. and less food goes to waste. ♪ ♪ let's send it over to mike santoli for his final dashboard of the day mike >> morgan, unfinished work, which were two of the 272 words in the gettiesberg address, which was delivered today, 156 years ago. >> look at that! >> it was a tough one today. >> that was tricky >> you know what's embarrassing, i think you did this a whole year ago >> i don't think so. >> no -- >> i don't think we did dashboards a year ago. >> in any case, there were other american history ones. unfinished work on building lots so good building permits numbers. here is a chart of the contribution to gdp, a net contribution to residential investment and what you see here is, obviously, it's been positive, but small, most of this expansion here, we nosed right back to the positive side again recently that's obviously a good thing.
it could be a leading sector of the economy and it's something that i think a lot of people are counting on for next year to have a little bit of a revival in gdp but boy, look at the spike here. that was the housing bubble. way, way, way too high you don't want to see that again. >> i got the henry the 5th reference. >> you're tallying up your wins. >> which are few and far between. >> mike, thank you >> up next, the next retail reporttos watch a full preview of those reports, coming up. so servicenow put your workflows in the cloud, huh? guys? great. thank you. thank you, sir.
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welcome back goldman sachs ceo lloyd blank fine and said the gave op the wealth tax. >> i understand the goals. it's completely unwokable. i want not just fancy people with tens of millions of arts collections it's anybody with a farm or home would have to establish what that home was worth every year you'd spend years fighting about it and next year you'd have to do it again >> i thought it was an awesome interview. and the bit that really stood out for me was when scott pushed high pressure him on executive
pay. ceo paid too much you saw lloyds sharp mind and wit came back and said are reporters paid too much which i think a fair question to raise if you're asking the question in the first place and kudos to scott of not giving in the face of pushback and following two or three minutes of conversation on the topic which is where -- the whole thing was 30 minutes or so and covered a lot of ground. >> that has been pretty much the go-to line about a wealth tax just the finish efficiency of wsh the injustice of selling a piece of -- but it seems as if the opponents are talking into a easy thing, raise the capital gains rate process you agree with the object he was there are easier ways to make sure untaxed wealth gets taxed before that point. >> like larry somers proposing before. >> collecting the bills. >> up next, the wall street look need the key things to watch ever investor needs to watch when we come back. e were behind schedule.
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company in all the companies in the world, i -- we think we have done a lot of good work over the years. and, yeah, every now and then i get reached out by a lot of people i never had so many people call or text me about an event every in the history of my career. >> that full interview on "mad money" tonight with jim. 6:00 p.m. eastern with a big line jum of ceos. >> including a world exclusive with the bear and cat, dancing bear and cat don't miss that looking ahead, more big retailers set to report tomorrow courtney reagan has the preview. >> hi, wifl with, after the disaping earnings report from home depot, wall street definitely watching lowes and any changesly are by marvin elyce. target reporting earnings tomorrow morning the stock a bright spot in the retail space beating every every estimate last quarter. the ceo has been outspoken about the strength of the consumer and the one particularly shopping at target we'll see if that sentiment
remains. finally l brands after the bell. watch the same store sales for victoria secret that area continued to be pressured. down 6% last quarter. >> thanks for that big retailer tomorrow mike but interesting thing didn't did he rail the overall market today. >> noen. >> and didn't derail the staple stocks. >> people willing loo look that over appear say this quarter is the most important for the consumer activity and none had guidance notably dampening that outlook. irgs that was okay the overall market has been impervious to a lot of potential threats for now. i do think again we keep going sideways right near the highs which you can't say is a bad thing. except below the surface you see things fall awaypy divergences you won want to see. >> dow finished in the red
nasdaq another record high. >> home depot was almost all of the dow decline, 80 points of dow decline. >> the record close for the nasdaq, not dow and s&p as we just noted were a little low but still close to the record all-time closing highs that does it for "closing bell." >> "fast money" begins right now. >> with david faber no less. >> enjoy. >> you wanted to get that in life from the nasdaq market site over looking new york city time square imdavid faber tim seymour with us. karen finerman dan nathan and guy adami tonight on fastest another bruising for boeing. in after regulators called for a redesign of the 737 jet. the engines will the company overcome the hit >> plus qualcomm ceo big plans for 5g we wrap up the chip jnt analyst day and find out what's next for the stock. check out th