tv The Claman Countdown FOX Business August 16, 2019 3:00pm-4:01pm EDT
lower prices, we did some trimming in july. mcdonald's has gotten a little expensive. we did a little trimming. now we are buying on weakness other names. charles: wish we had more time. the dow is up 263 points right now. as i hand it over to liz claman. liz: hey, you know what? hot fun in the summer, charles. charles: got to love it. this ain't no summer doldrums. liz: no way. in fact, we have a summer friday rally after a wild week on wall street, as promises of stimulus, budget action and trade optimism have the bulls charging higher. president trump saying trade talks are on for september as china makes moves to shore up its economy. it's not just china, though. reports are that germany is ready to ditch its self-imposed balanced budget rule and open the spending spigot in order to avoid recession. with u.s. treasury prices falling, actually prices rising and yields falling, it's all other way around. my goodness. that's how wild it's been this week.
all of it adding up to a wall street comeback. investors are piling into stocks. the dow, a big beneficiary. it's jumping 266 points. the dow, very firm here. the s&p up 56. the nasdaq, nice, up 130. that shows it's a broad-based rally. look at the russell. the russell is the host of this party. the small caps and midcaps are bullish all the way through, up a full 2.25%. the best and the brightest are here on what happens next. andy bremner is the fixed income yoda and he's about to tell you straight out if the recession fear talk is overdone or on target. professor joel tractman is the globe's foremost trade law expert. he explains the trump flip-flop on whether trade deal negotiations are easy or hard. plus why the latest tariffs about to be hit on chinese goods are different. buying a wounded bear and ge's steel cage death match with the
madoff whistleblower. less than an hour to the closing bell on this friday. let's start "the claman countdown." liz: we have this breaking news coming in. the securities and exchange commission has just fined cantor fitzgerald and bmo capital markets over alleged improper handling of adrs. those are american depositary receipts. foreign stocks that trade here. cantor has apparently agreed to $647,000 payment and bmo has agreed to pay $3.9 million to settle these charges. so far, the s.e.c. has charged 13 financial institutions in its ongoing investigation into abusive adr practices which has led to more than $427 million in monetary settlements. all right. this roller coaster week may be ending on a high note but take a
look at the major average moves this week. the dow and s&p 500 both down more than 1%. the nasdaq falling about .75%, thanks to its strong moves today. but this is the third down week in a row for the major averages, the longest losing streak since may. it is a tale of two semiconductor stocks that attracted our attention. let's look at applied materials. earnings may have topped estimates but the biggest laggard on the nasdaq set to continue to see a challenging environment for the semiconductor sector. applied materials is down .75%. they make semiconductor equipment. they don't make the chips. they make the equipment. so are they a canary in a coal mine at the moment? applied materials says it does not expect any recovery until 2020. nvidia, though, they make graphic chips, specialized chips. it's on top of its class in the tech-heavy index. shares are popping 7.75% after beating on both second quarter earnings and on revenue. very strong report for nvidia.
it stands at $160.28. it's really showing some strength there and as we continue to look at trading volume, about 20 million shares, its core business is apparently back on track after a crypto influenced crash over the last year. nvidia makes cryptocurrency chips while nvidia did beat estimates, the company's revenue dropped 17% year over year in the second quarter. its biggest segment which is gaming saw revenue drop 27%. and we've got to look at deere because it is very much an economic and trade-sensitive business. deere gaining after missing on earnings and lowering guidance for the second consecutive quarter so why is it up nearly 4%? well, results seem to be better than some investors had expected. they were really dreading it, considering the trade and wheth weather disruptions farmers have faced but third quarter results reflected the high degree of uncertainty that overshadows the
agricultural sector. we are 56 minutes away from surviving this insanely volatile market week. remember monday and tuesday, oh, my gosh. just take a look at the dow moves this week. monday, we lost 389 points. tuesday, a pop, up nearly the same amount, 372 points. wednesday, a cratering. the dow down 800 points. yesterday, the dow gained nearly 100 points. here we are today. it may be friday but let's spin it forward. does this volatility continue as we head into the last half of august, or is it time for investors to let their portfolios take a vacation, should they put in overtime and intently hover over their investments? to our floor show traders on this friday. larry, are you in the sort of beach chair camp or the hovercraft camp? >> well, the hovercraft camp, if that means just to remain balanced in your portfolio, stay disciplined, realize that if you are going to get a return on
your investment, you have to take risk, and volatility is part of that. if nothing else, it's a good time to rebalance your portfolio and start to buy stocks that are relatively on the cheap and when we have a bounceback, do the opposite but stay in your seats. liz: tim, let me get to you. if one year ago this weekend, investors tuned out for a year, they would wake up today to find that the dow is just about exactly where it is right now. august 20th of last year, we were at 25,800. i checked. today, we're at 25,859. so will the tune-out strategy which would have worked a year ago because nothing happened, right, work now or be a mistake now? >> look, that might be true for the averages overall but there have been a lot of winners and losers over the last 12 months, period. and what volatility really helps us do is define support and resistance levels for individual
stocks and for sectors within the market. so even though we have had some very volatile days in the last two weeks, we have had two 800 point declines in the dow jones industrial average over the last two weeks. the market's down little less than 1.5%. we need to keep things in perspective. liz: i'm looking at volatility index here, fear down 11%, 11.5%. chris robinson, you and i have often talked about bond yields. this was the week where the whole world suddenly was talking about the inverted yield curve between the two and the ten. we don't have that right now. we will get to more of that later. but i'm really interested to know what you think about some fear factors that came early this week and now don't seem to be there. >> well, a lot of this is exacerbated because a lot of traders actually are sitting on the beach and i think for the next two weeks, you are going to continue to see this type of volatility. but you did see a very big snap. that ten year/two year and when that inverted, that hit a lot of
computerized trading algos to really exit. it was a gmo trade, get me out. now that's done and now you see this calm down a little bit. but the two numbers to look at percentage-wise, remember wednesday, we were down, worried about a much lower move? here we are, we have recovered, the two numbers i would say is this. we are 21% off of our christmas lows and we are 5% off of our record highs. if you have been worried about volatility and worried about oh, you know, i can't sit through another 10% or 15% move, you want to be, you know, going to cash or taking profits when we're on a rally, like today. if you don't want to be doing it on days like wednesday when you're selling out of fear. if you need to rebalance, i think larry was right, rebalance, take some money off the table if you need to, but this volatility i think is going to continue probably for the rest of the year. liz: oh, joy. all right. larry, i'm kind of with you. we've got to be the hovercraft at the moment. larry, tim, chris, have a great
weekend. thank you very much. check the dow, up 284. so we know the markets rejoiced tuesday after president trump announced he would delay until december some of the tariffs set to kick in next month on $300 billion of chinese goods but late yesterday, this. the u.s. trade representative's office put out the following notice. every item not excluded from the september 1st tariffs, right, that arrives here in the u.s. from china on september 1st or after will be slapped with a 10% tariff. up until now, with previous tariff deadlines, as long as shipments had already left the port or were out at sea on cargo ships, didn't matter when they arrived in the u.s., it was their departure that counted as beating the deadline. not this time. what does this mean? even as they scramble, u.s. importers have lost out. why. because by cargo ship, exports leaving china take about two weeks to a month to arrive at u.s. ports.
in other words, even if your goods are leaving today or have just started their journey, you're too late. you will be hit with tariffs. to edward lawrence in d.c. we imagine there are a lot of importers who see this as an unwelcome surprise. reporter: they had very unhappy. they said if you wanted to front-load, get ahead of these tariffs you would have to change the supply chain, put them on airplanes. the ship just won't make it. the hanover express you see on the screen, the last ship to leave port, expected to arrive in the port of long beach on august 29th, going a direct route there. in addition the tariffs are having some impact, causing the chinese to announce a specific stimulus package. among the big items there, the banks will renegotiate the loan terms, talking about bringing down interest rates. they pledged to reduce interest rates on small businesses by 1% for the first of the year. china will also mandate lower fees that banks charge for loans. the state council says they are
strengthening support for companies to make sure they have enough money to pay back loans. also offering further guidance for small business to innovate their corporate model. in an exclusive interview on your program yesterday with st. louis fed president jim bullard, he said there will be some hardship to the united states but it is manageable. >> during the spring, there was a narrative that the u.s. and china were going to come to a deal within a matter of days or weeks and i think it's been a slow realization over the last three or four months that that really was not very realistic to think that you were going to be able to resolve these very deep issues between china and the united states in some kind of short document or easy negotiation. that is not the nature of these issues. so i definitely applaud the administration for taking on china on these issues. reporter: the market coming to that realization, may be settling in this might be a
longer dispute. president trump said he will have a call with president xi soon, in his words, the chinese trade delegation expected to be in washington, d.c. at some point in september. the date, though, the exact date has not yet been announced. liz? liz: edward, we are getting headlines out of reuters. reuters just got an interview with loretta mester, the cleveland fed president, saying she would have preferred to not cut rates in july. she would have preferred to leave them pat. she says it was a close call and she says the real question here is whether to cut u.s. interest rates or keep them steady. she's not entirely sold on rate cuts. but she also is saying it's hard to read a strong signal from the u.s. treasury yield curve. she's not panicking at all about this and does not see, at least it feels like she doesn't see a recession. what do you make of that? reporter: bullard told me yesterday, basically he said you don't look at that quick inversion. it was just a very -- he's looking for a sustained inversion.
he said that, you know, we have a ten-year expansion going on. he doesn't see why it can't be 14 years, going forward. you have some very hawkish members of the fed, mester would fall in that case if she did not want a rate cut in july. according to bullard, he believes some of the members are starting to come around and see what he sees, that inflation is missing the target atrociously and they need to do something quickly in order to get the inflation rate back up to their target of 2%. in fact, bullard says he doesn't mind seeing it run hotter than 2% so that long-term projection is around that 2% goal. liz: edward, thank you very much. it is about 47 minutes before the closing bell. dow is up 276. when we come back, did you see what germany might be ready to do? it's that concerned about a recession there. we'll be right back.
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liz: germany is apparently so worried about a recession, reports say that government may be ready to ditch its self-imposed balanced budget or what they call a black zero rule, and start pouring on the stimulus. their ten-year bund yield which early this morning had hit an all-time record low of negative .7% immediately responded to that news, rising up off the floor. it's now at .68%. barely better, but better. here in the u.s., the ten-year treasury yield which yesterday had plummet toeded to 3.147% is off the floor. today we are at 1.54% with no doubt a rally helping to sustain what's going on there. so with about 33 minutes before
the closing bell, stocks are much firmer today but for the roller coaster of a week, the major indices are negative at the moment. what do financial market players, people who are really involved, think will happen with the bonds, with stocks and the global picture? andy brenner is one of them. andy, thank you so much for getting in front of a camera up in maine for us. you probably haven't slept in a week, i would imagine. >> it's been very volatile, liz. it's been a little bit stressful. liz: i would imagine. arguably, though, it was the yield curve inversion that caused the most stress, that most upset the apple cart. things have calmed down now. is it just a bad memory never to be seen again? >> oh, no, liz. i think we are going to have more problems going forward. i think you have to look, in the u.s., as governors are recognizing, the economy seems to be going okay. retail sales the other day were just off the charts.
they were very good. we have no recession here. but in europe, it's crisis mode. even you had one of the european governors come out earlier this week and say that they are going to give us a shock and awe on september 12th. what i'm afraid about is that the fed, who is going to give us, going to tell us what they want to do a week later, it's probably going to fall to ecb. it's been absolutely wrong about everything they've been doing. negative interest rates have been a disaster and what are they going to do on september 12th? they are going to go more negative. it's like as a trader, you know, you are in a losing trade and what do you do? double down? never works. it's not going to work for them. i'm really afraid the fed is going to follow that path. liz: okay. but you know, we just had peter navarro here yesterday. he's very much pushing for the fed to cut rates. we can look at fed funds futures right now and the chance of the probability of a 50 basis point cut has actually gone down from yesterday. we are at 18.8%.
yesterday it was at 35% or something, 32%. but this is actually a good sign. why? because it means that people are less fearful of a recession to the very point you just brought up. we have good retail sales numbers. we actually had decent july housing permits, the starts weren't great but the permits are up seven-month highs. >> absolutely right. first, kudos to you yesterday. that was a great interview with navarro. as far as what navarro thinks, i'm not really listening to him, even though the president seems to be. but what i saw today is that the president stepped into a meeting or at least through a conference call with jamie dimon and the head of bank of america and one other bank, and he showed concern about what the u.s. economy is doing. he's starting to finally get worried about his election, what the tariffs are doing. i think he's going to tone it down a bit. at least that's what i'm hoping. i think that's what the markets are picking up on today.
as far as what you mentioned before, germany is in terrible shape. with negative gdp this week and with their expectations looking for another negative gdp number in the third quarter, the germans are going to be forced to open up their pockets and do fiscal stimulus. i think we are going to see -- go ahead. liz: what i do really want to hear from you, though, is this. there are some talking points coming out of the white house and quite frankly, we have had a lot of people on this network saying that there is no recession coming and you just said you don't see it. but that the negativity is very much a media generated push, that that is what's kind of poisoning the well, so to speak. is it the media, or are there hard fast issues that you see and if so, what are they? >> it's absolutely not the media. i mean, europe's in a crisis, china is slowing down, this trade issue, a lot of the world depends on trade. in this country, we are much
more affected by consumption and the consumer is fine right now. i think 70% of our gdp is consumption. so is there going to be a recession in this country, no. is there going to be a global recession? more than likely. things in europe, i just don't see how they can work it out. even if they do use stimulus, it's a trade issue. the europeans have no control over what to trade between china and the u.s. are going to happen. i think that europe is going to have a lot of hurt and i don't see a solution in the near term. while i don't see a u.s. recession, i see a global recession. to one of navarro's points which i strongly disagreed with, people invest in countries where the economy is strong. the u.s., maybe you don't like 2.5% gdp, but it's a lot better than negative numbers coming out of europe. it's a lot better than the trend that we are seeing in china. so a dollar is going to continue to be well bid. liz: andy brenner, thank you very much.
i just wanted to be clear because there are people who are blaming the media, which is classic, right, andy has those things. u.s. slowdown, ecb, employment, inflation, washington and bank failures. all right. we are watching all of it. andy brenner. one for the thumb. with the closing bell ringing in 37 minutes, disney slipping the charm ring on the thumb today after "toy story 4" becomes its fifth billion dollar release of the year. the franchise is on pace to become the highest grossing film in the series, taking in $422 million in north america and another $580 million overseas. disney stock up a percent to $134.88. up next, general electric fighting back against a madoff whistleblower who didn't exactly bring good things to light about ge. what the ge ceo did in the brewing corporate catfight over financial fraud that now has ge
liz: let's pull up ge. yeah, it is definitely bouncing back in this final hour of trade. but this 8% gain still has not erased yesterday's 11% drop. wall street fled ge at the open thursday after the company got hit with scathing allegations it's hiding $38 billion in potential losses. the report coming from this man, harry markopolos. he is the same whistleblower who uncovered the massive $65 billion fraud pulled off by bernie madoff, who is now serving a 150-year sentence. the head of ge is coming out swinging, using both his words and his wallet. to jackie deangelis on i guess which side the analysts are leaning toward. jackie: it's mixed right now. you've got some bulls on the street and you've got bears on the street when it comes to ge,
but those shares as you said are rebounding today, after that sharp 11% drop yesterday, which was jarring for the market. that was actually the biggest drop in 11 years for ge stock. on claims that there's massive accounting fraud and that ge might be filing for chapter 11 bankruptcy soon. so in response to those allegations, ceo larry culp, he bought nearly $2 million of shares yesterday and he sent this in a statement. quote, he wrote a 170-page paper but never talked to company officials goes to show that he's not interested in accurate financial analysis but solely in generating downward volatility in ge's stock so that he and his undisclosed hedge fund partner can personally profit, end quote. an anonymous hedge fund commissioned markopolos to research and publish that report. he's not revealed the name of that fund, just saying it's a midsized u.s.-based hedge fund. andrew left of citron research published this today.
quote, yesterday was a sad day for the activist short selling community when harry markopolos issued a high profile, critical report of general electric, saying it is a large fraud, larger fraud, rather, than enron or worldcom. the stock of general electric is a cornerstone of the industry in the united states and these statements were reckless and the credibility of the source is to be greatly questioned. end quote. liz? liz: wow. you got to wait until more comes out. jackie: absolutely. liz: people rush to support enron back in the day. i'm not saying ge is enron at all. i'm just saying you've got to give these things some time and some investigation. jackie: i think people are going to look at the numbers very closely and really start digging. liz: yeah. and unconflicted investigation. good to see you, jackie. thank you very much. jackie deangelis. closing bell, we are 31 minutes away. the dow jones industrials holding on to really solid gains, up 269 points. the nasdaq up 130. a farm boy turned silicon
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but it's not tough. liz: he said i never said china was going to be easy. well, except you did, mr. president. here it is. when a country is losing many billions of dollars on trade with virtually every country it does business with, trade wars are good and easy to win. that's a tweet from awhile ago. can we get it up on the screen? here it is. this is from march. he said trade wars are easy, it's easy. see the last line? last night he said i never said it was going to be easy. all right. let's play it again. we kind of stepped on it. can we play that? let's listen. >> i never said china was going to be easy but it's not tough. liz: right. okay. you sort of heard it better. i never said china was going to
be easy but then you saw the tweet that said he did. so our "claman countdown" team did some digging. there's the proof that he said trade deals are ey to win. but when you talk about being easy to win, we are now in a protracted trade war, right? we have lost a lot of money. we have gained a lot of money in tariffs but of course, this is, if you believe businesses who say they are paying the tariffs, they are, but what happens next? let's bring in joel tractman, one of the foremost experts on international trade. he's joining us in a fox business exclusive. professor, thank you for joining us. the president has doubled down in the past, stating that trade wars are good and easy to win. last night he said i never said they were easy to win. do you think that that reflects maybe a shift where he's realizing things have changed and it is a lot harder than it looks? >> absolutely. he's looking at the christmas season, looking at his desire to put tariffs on really the rest
of chinese exports to the united states. so far, they have avoided a lot of the consumer goods, clothing, electronic goods, but that's what's coming next, and that's what he's concerned about, that that will hurt the christmas season, hurt the u.s. consumer and cost him votes. liz: china is calling the u.s. tariffs a quote, violation of accords reached by presidents donald trump and xi jinping back a couple months ago, right, in osaka. you are the expert in international law. is it a violation if the president, unhappy with how the chinese quite frankly have handled some of their side of the negotiation, specifically that they moved the goal posts and completely refused to sign the draft they had originally approved, how is that not a violation? >> well, those accords are not themselves law. actually, everything that we're doing with china now is a violation of international law.
but what happened is exactly as you say, robert lighthizer negotiated with the chinese negotiator, liu he, they reached an agreement that would have called for a lot of changes to the chinese economy, and xi jinping became concerned about that, didn't think he could sell that domestically, and backed away from it. so president trump was understandably disappointed but to be fair to china, this was a big ask, asking china to essentially change their whole economic system for us. liz: except that it was in the draft and then they suddenly changed the entire thing, and it almost seems like suddenly, they realized they might lose face in some way, shape or form. again, this looks almost intractable. let's listen to what peter navarro, the trade adviser to the president, said yesterday right here on the show about whether these delays of the tariffs that are supposed to
kick in september 1st were something that he supported. >> i was absolutely for that and here's why. this is important to know. first of all, we built some good will with the chinese, but equally important, this is a president who's great at listening to stake holders, whether it be business executives or union leaders or anyone in between. liz: well, if you don't even have to triangulate that, clearly business leaders here must have said something to president trump, right? >> well, look, these tariffs have been terrible for united states business. once the current tranche of tariffs are put in, tariffs on chinese products brought to the united states will have gone up by 20% or 21% in december and that's a real burden not only on the consumers, and the consumers are going to be hit, but also on united states businesses who use those chinese goods as
intermediate goods in our manufacturing, and it makes it tougher to be in business in the united states when your inputs are more expensive. liz: right now, trade-related stocks are up on the screen and on this day, they are doing well. it has been such a wild week in the stock market that depending on the headline, they might not do so well. for now, it's green on the screen. professor, thank you for joining us. >> thank you, liz. liz: closing bell, we are 16 minutes away. we still have a strong day for the dow, up nearly 300 points, high of the session 335. we will see if we can get there. we are headed to the floor show. our traders are about to share their last-minute moves on this big friday rally. "the claman countdown" is coming right back. ♪
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liz: quick, don't blink. all dow 30 stocks are in the green. mcdonald's is just right there, up a single penny. all right. we're looking at mickey d's now up three pennies. little bit of breathing room. merck at the top here, the dow giant among the leaders after coverage was initiated at outperform with a price target of $103 a share. it's at $84.96 right now. here's what they're saying. merck's immunotherapy drug keytruda is a game changer and that it's underappreciated by investors for long-term revenues. it hasn't been often this week we have seen all dow 30 stocks hold their gains into the final, what, 12 minutes of trade here. tim anderson, tell us what the sentiment is on the floor on an afternoon like this, where we have a robust rally. >> it's very interesting you
mention that, because today it's very positive, very close to four to one on the advance/decline line. the up volume is close to 90% of the total volume, and even though the market was down 800 points on wednesday, and we're up a little bit less than half of that now, those numbers were not nearly as negative as these numbers are positive today. so people are viewing this as a very strong indicator that this is a broad-based, across the board move with a lot of money going into stocks today, kind of putting aside the big fears over the inverted yield curve and a couple of other issues that have come up earlier in the week. liz: chris, a couple of issues did come up earlier in the week, but one of the issues that came up today is the university of michigan consumer sentiment. it did hit a seven-month low.
it went to 92 from 98. it's still pretty much at an historically high level. we got to make sure our viewers know perspective here, not just an individual headline, right? >> right. overall, the consumer is still doing well. overall, too, the consumer's not very very leveraged, either. that's one thing that's different between now and where we were in '07, '08, '09. that's one positive thing moving forward. again, you can't look at this market without realizing that today at this 26,000 level, we are basically 5% off the all-time highs. so again, if you want to rebalance, you want to take profits, you do it on rallies, you don't do it on days like wednesday or down lower. it's giving everybody a chance to reset. we have two more weeks in august and i can't wait until we get to september. we need to get through august. liz: by the way, next week, before you start pushing all the way through august, alan
nuckman, the federal reserve is having their grand big hoobah, whatever, in jackson hole, where they sometimes, not always but sometimes telegraph what they're going to do, and jay powell will be speaking at sort of the culmination of it. do you expect we will have narrow trading range ahead of that? >> i think he needs to be very careful in his wording, as he often is, to forecast the market. they have done a fantastic job of not having any surprises over the last decade, and the fed guided this very well until this last issue. the market's pricing in rate cuts, if we look out here, september, december and march, so looking at the numbers, that's what we say is going to already happen. if you go back to what's happening this week in a net-net case, you know, we have seen the market have a test and reject of those lows in the s&p yesterday and that was rather significant. that's how a bottom base gets built. like chris said, we are only 5% away from the all-time top.
things haven't changed that much. all this was was self-inflicted. it can be self-corrected. we will see. the president has it in his best interest to make sure the economy comes roaring back and the market balances so that he gets what he wants. liz: hopefully all of us have that in our best interest. tim, alan, chris, thank you so much. when we come back, hey, we are up about 300 points here. we will see how this day ends with eight minutes left of trade. stay with us. . now you can, with shipsticks.com! no more lugging your clubs through the airport or risk having your clubs lost or damaged by the airlines. sending your own clubs ahead with shipsticks.com makes it fast & easy to get to your golf destination. with just a few clicks or a phone call, we'll pick up and deliver your clubs on-time, guaranteed, for as low as $39.99. shipsticks.com saves you time and money. make it simple. make it ship sticks.
liz, whoa we hit a brand new high. a gain of 346 points in the commercial break. dow jones industrials. we have bulls piling in. markets looking to close out the week. we're showing what they're doing. all green on the screen. russell, transports are going gangbusters. to kristina partsinevelos live on the floor of the new york stock exchange with the week's biggest movers. >> we have big movers.
start with the dow, some winners right now. walmart earnings came out yesterday. their outlook strong. revenue, same-store sales. a little lower than 3%. still very strong. e-commerce up 37%. a lot of help given walmart is the second largest employer in the united states. apple, p&g, improved sentiment between china and united states. some of the losers, weaker revenue forecast, dow in the mix. s&p 500 before we close the day out. you have got lam research, one winner there, a semiconductor, lot to do with u.s. china trade sentiment, being more optimistic. micron as well. walmart in the mix. some losers really quickly. tapestry operates coach and kate spade. really, really poor outlook for macy's, similar situation. that brought down some retail, bigger department stores like nordstrom you're seeing on your
screen. liz, back to you. liz: kristina, thank you very much. crazy week in the markets. a rough 24 hours. certainly for the week it is a loser. kristina pointed it out, cisco, they do networking equipment, had the worst day in six years revealing disappointing forecast for the quarter. the company announced 500 job cuts in silicon valley. today it is bouncing back slightly by 1 and 2/3%. our countdown closer not only likes cisco he is waiting for further weakness that would make him like cycso more. let's bring in t chubb. you're saying it is beaten down name more then you will like it? how much further? >> this is a name investor want to accumulate here. cisco is really well--run company with manageable debt loads. this uncertain environment with
risks rising around the globe, it's a company that has thoughtful leadership moving away from the traditional hardware business you mentioned toward software and sales. we like to pick up cheap stocks. we want our companies to support investing back in their business. with long-term opportunities cisco has with 5g. we think the debt load, dividend are sustainable, manageable. allow them to contribute into the higher growth areas moving forward. liz: how do you think the huawei situation plays in? huawei is a telecom giant and competitor of cisco? president trump says we don't want to equipment here? how much will it help cisco? it seems it would have already. cisco has a global footprint that it needs foreign purchases as well? >> they have a large global footprint. only 3% of revenue is related to china. that is one of reasons they had
conservative revision and guidance moving forward. ween the early stages of 5g. we're figuring out who are the major players. cisco is investing heavily in the telecom side of things, cellular devices rolling out. they're making smart invests as we continue to move down the path towards 5g down the road they will be one of the major players in the u.s. because of invests making today. liz: nearly four billion under management. what will you do with it? will you keep dry powder next week or make another purchase if you see another drop in the overall market? >> i think investors need the shopping list. now is the time to focus on quality and core parts of the portfolio companies with great cash flow as i mentioned they're able to sustain the dividend if they're not currently paying one. initiate it potentially. invest in businesses, when we
get out of economic weakness, potentially through recession, they will come back out on other side in better shape. [closing bell ring] liz: tim chubb, thank you so much. nice day for the bulls to close out a very rough week that will do it for the "claman countdown." join me on monday. connell: we were waiting for the end of the week, but all three major averages were in the green today. talk of stimulus and china and germany eased global recession fears we've been talking about all week long. the dow up over 300 points on a friday, settling in 308 to the upside after biggest selloff of the year earlier in the week. so, here we are, we made it to friday. i'm connell mcshane. melissa: i'm melissa francis. this is "after the bell." the s&p 500 also ending in positive territory for the second day in a row. nasdaq snapping a two-day down
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