tv The Claman Countdown FOX Business August 22, 2019 3:00pm-4:00pm EDT
be scratched on the head. charles: that's unusual in and of itself. maybe that should be the topic tomorrow. >> could be trending. charles: meantime, the dow jones industrial average is up 100 points. you know, liz claman, i don't know what you think it is but i know what the market's waiting for. liz: i saw a rorschach ink blot. thank you so much, charles. it is definitely a bird. i can tell you that right now. it's the question looming as large as the grand tetons. what will federal reserve chair jerome powell say in tomorrow's speech in jackson hole, wyoming? that's what's got the markets hunting for definitive direction ahead of one of the most closely watched speeches at this pow-wow for fed policy makers and economists comes amid the backdrop of more blistering attacks from president trump. we will head to the wild west for a live report on the very latest chatter that's happening on the ground. the trade war with china will likely be a huge topic of conversation there, as companies
both big and small struggle with the tariffs or duck them entirely. a fox business exclusive with the founder and ceo of eyewear maker. find out why so far, he says he's successfully dodging the trade battle and how he's doing it. wall street enduring bumps and potholes on word that three fed heads see no reason for a rate hike but on the dreaded yield curve version which reared its head again today. the two and ten-year yields inverting briefly on divergent economic data. the dow and s&p moving higher right now but the nasdaq is lower by 14 points. it's 2017 all over again as trump bashes america's auto makers. a sneak peek into apple's upcoming innovations. and how to add a little energizer bunny excitement to your portfolio. less than an hour to the closing bell, let's start "the claman countdown."
liz: breaking news. just seven days ahead of the g7 global meeting, a senior administration official is reporting that president trump is set to raise his concerns over the french digital services tax with president emmanuel macron of france. at this very moment, you see prime minister modi of india who is being hosted -- okay. they are on the stage together for the moment although we can't see mr. macron, but this ahead of the g7 meeting. we have been watching these two and how they deal with technology and of course, as you know, france has begun to say they are looking to tax technology and companies that make more than $800,000. that could be google, facebook, twitter, microsoft. so we are waiting to hear exactly what the ramifications are of this. in the meantime, it has been a dramatic day for the markets. even as we are seeing somewhat
muted volume. the dow at one point spiking 186 points at session highs before giving up all of it and more, after the two and ten-year treasury yields inverted for the second time in less than 24 hours. yesterday, remember just at the end of the show it happened once again. a yield curve inversion is sometimes an indication that a recession is coming, but right now, the dow climbing back up, up about 90 points. it was boeing that's rejuvenating the markets, pushing the dow back into positive territory. why? boeing has just announced its plans to boost production of its 737 max jets to 52 per month in february. this is, of course, contingent on when and whether the 737 gets approval to get back into the air in the fourth quarter. it of course has been grounded since two very deadly crashes, one early this year and one late last year. boeing, up 4.66%, is currently adding significant point heft to the dow jones industrials.
about 100 points in gains right now. taking the top spot on the s&p is high end retailer nordstrom which is actually seeing one of its biggest one-day percentage gains in more than a decade. nordstrom spiking 15.5% right now. this is significant, because nordstrom is a mall play, it is of course a retail brick and mortar play. why did it spike? well, it has great numbers, delivered strong profits in the second quarter despite sales at full price falling more than 6%. even a price cut from bank of america merrill lynch is not slowing this stock down. it's charging higher by $4.14. $30.68. a lesson to ceos. if you are considering outing your relationship with a russian female spy, your job might be in peril. that is exactly what happened to controversial overstock ceo patrick byrne, after he revealed his involvement with russian spy maria buttina and his role in
what he described as the deep state investigation into russian meddling into the u.s. elections. shares of overstock began surging the minute byrne's departure hit the tape. patrick byrne will be joining "bulls & bears" at 5:00 p.m. eastern. this is a fox business exclusive. david asman has landed it. you've got to hear what patrick has to say. he's always outspoken. he's a big cryptocurrency guy and he is certainly an original. we will hear what happened in the demise of the company that he founded, at least the demise of his role in this company, overstock.com, which, i do just want to check, at last check, it's up about 11.75% on his departure. we need to get to jackson hole, wyoming. glad you're with us. we are taking you right there. we are going to hear from fed chair jerome powell tomorrow at 10:00 a.m. eastern sharp. investors are particularly glued to this year's federal reserve annual gathering at the tiny wyoming resort in the teton mountains because at a time when
president trump's trade policies are intensifying a worldwide slowdown, historically, markets have moved on news that comes out of this particular gathering. can i take you to 2007, when former federal reserve chair ben bernanke, remember this, put interest rate cuts on the table just before the start of the great recession. fast forward to today, fox business's edward lawrence sat down with kansas city fed president esther george this morning who said a bailout for farmers is quote, an unsustainable business model. she said farmers need certainty in trade. this comment alone moving on reuters this morning. to edward lawrence, who landed the big interview live in jackson hole, wyoming. edward, what is the anticipation right now on what powell will say? reporter: well, liz, you know, i know how you love newspapers. the anticipation is not in the jackson hole daily. the big story here is they are removing juniper trees to help
the sage grouse in the west. all eyes on this resort right now. all eyes are on this financial resort here in jackson hole, wyoming. kansas city federal reserve president esther george says that consumer spending is the reason this economic boom is happening. she's a voting member of the committee that sets the federal funds rate. she says that right now, the federal reserve has met their mandate, that they have low unemployment and prices are stable. last week, we had an exclusive interview with jim bullard, the st. louis federal reserve president, who advocated for rate cuts, more accommodation to get inflation back to their target range. esther george this morning hinting at the fact that maybe she would not support rate cuts going forward because the consumer spending and the reason that consumers have the money to spend. listen. >> the job market has been pretty strong. we have known for some time, though, because of demographics, there is a shrinking work force
and that will slow down. we have seen a slowing in the manufacturing sector. the services sector continues to look like it's adding jobs at a pretty good pace. so certainly, job market is important to consumers. as we go forward. but i would not be surprised to see some slowing there, just from the demographics and the composition of that work force. reporter: saying they are still adding jobs. george also addressed the yield curve for me. as you know, it temporarily inverted and inverted again today. she is not concerned for many reasons on the inversion of the yield curve. one of them being she sees that foreign money is coming in from other parts of the globe, really, where there are negative interest rates coming into this economy, going for that safe haven of u.s. treasuries here. she also hinted at the fact that basically, because of that low unemployment and the fed had met the mandates of stable prices with low inflation, that there may not be need for further accommodation.
she is a voting member so we have to see what happens here. liz: i think what she said to you and add to that what eric rosengren of the boston fed said on monday, not to mention what we are hearing from at least one other fed head, the fed funds futures now, i know you know this, but we need the very latest look. let's get to breaking news right now. look at this, folks. up until this morning, we had mostly 100% odds of a rate cut next month when the fed meets. now, there is a 6.5% odds there will be no cut. while that is certainly swamped by the 93.5% odds there will be a cut, the fact that we are now seeing some doubt about rate cuts creep into the markets is absolutely significant, and you know, i think this is really important. we are going to constantly be keeping you guys updated to the very second. we are all about breaking market news because this matters to your portfolio and as edward st mentioned, we did see that yield curve inversion earlier,
where the two-year yield gave more in yield than the ten-year. highly unusual, but it started to happen about a week ago. the treasury yield inverted for the first time since 2007, a week ago. the markets cratered, down 800 points, remember this, last wednesday? a week ago yesterday, right? when the yield curve inverts, this is sometimes considered an indication that there is, of course, a recession that might be coming although it could be within two years. right now the dow jones industrials is up 83 points. when it briefly touched that inversion curve this morning, you can see the market took a dip, right after 10:00 a.m. eastern, right there. so really, today is barely a blip on the radar compared to last week's dramatic action. are the markets not predicting a recession at this time? are they now discounting this yield curve inversion phenomenon, not worried thanks to strong economic dataints? let's get to our floor show
traders.sarge guilfoyle, give m sense at the moment of why suddenly the market doesn't seem to be really hyperbolic when it comes to yield curve inversions. >> actually, the market has been very quiet a week. there's been a lot of hand sitting. it's not because of vacations. that's a bunch of malarkey. it's because of jay powell's speech tomorrow. everyone has been putting on less risk. i'm at higher cash because i don't know after today's two speakers which way he will go. if he sounds hawkish they will take a pound of flesh out of this market. if he sounds hawkish and the ecb throws a bazooka at us, they will take a lot of flesh out of this market. we are at a dangerous cross-section, between earnings season, looking at a third consecutive quarter of declining earnings growth next quarter. i think that we are right now in a spot where the fed, they have -- you guys know how i feel. we cannot control the long end of the curve. there's a lot of other input there. but the short end can be controlled. the longer the curve remains flat or inverted, then there's
less business investment, less business investment leads to less, you saw the market pmi this morning, negative, contraction. liz: hold on, hold on. i want to define that. pmi, purchasing managers index, is an indication of the health of the manufacturing sector and sarge is right, for the first time since 2008, 2009, first time since 2009 it contracted, meaning it fell below 50. that shows that there's some real problem with manufacturing, does it not? >> i think it shows -- i don't know that it shows that. i think it's psychology at work. i think what you are dealing with right now in the whole market is we're scared. we keep hearing that this is going to happen, that's going to happen and our trade partners are seeing it happen but we're not. our consumer's out there. but if you're manufacturing especially large items, you get worried because of your export business, the strong dollar, what's going to happen.
but that's not symptomatic of our whole economy. everybody has to understand where is inflation relative to the 30-year. we used to look at that 40 years ago, it's not as important as it is today. today i look at it that the market has the internet. we didn't have that 40 years ago. information travels. everything's more efficient. i think the market's telling you with this one hour, two hour inversion, let it sit and get over that and stay there and we will adjust it or take a look at it. right now, just hitting flat, it's just flat. that's my opinion on it. >> flat's still bad. flat means eight years of no growth. liz: i'm looking at flat right now. two and ten, flat. 1.60%, two is 1.60% right now. so scott bauer, what is the trade? we're not here to bellyache over inverted yield curves. we can't control that. we can control what we purchase for our portfolio. what's the trade here? >> no doubt about it.
listen, i think ira hit the nail on the head. the market is trading now with a psychological bias, meaning i was sitting on the desk with you at your desk back in february of 2018 when the market and the world was freaking out at 3% rates, and you know what happened? the next time a month later and a month later, not a big deal. that's what's happening now. the market is getting numb to this inversion. so i think what you need to do right now is actually look at some very cautious upside trade, upside meaning in the banking sector, because what i see happening here is i don't believe jerome powell and the fed are going to give the market what the market wants to see. i don't believe they are going to come out and say okay, we will lower by 50 basis points and be in this continuous lowering path that they're on right now. you know what? many traders, many retail traders may feel like they're stabbed in the back if that doesn't happen. so i would look at the banking
sector, interest rate sensitive, i like the upside there. liz: okay. we'll take it. guys, thank you so much. as karl marx would say when it comes to not freaking out about the yield curve, history starts first as tragedy, then as farce. apple innovations. we've got big predictions of what they're going to announce, next. ♪ limu emu & doug and now for their service to the community, we present limu emu & doug with this key to the city. [ applause ] it's an honor to tell you that liberty mutual customizes your car insurance so you only pay for what you need. and now we need to get back to work. [ applause and band playing ] only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪ (carrying up to 50 times its tbody weight.essly marches on. it never questions the tasks at hand.
liz: how apple's rumor mill is spinning like crazy in this final hour of trade. the tech giant is planning to release a grove of brand new products in the fall, including three new iphone models in september. this according to bloomberg. now even though the exact date hasn't been confirmed when they will unveil all of this, apple lovers nationwide are circling september 10th on their calendars but with an asterisk
slash question mark. our viewers do not have to wait until september to find out what apple might reveal. our next guest eats, sleeps and breathes all things apple and he is here to blow away those question marks. he's mobile nation senior editor russell holley. good morning. first, the date. we are hearing the 10th but we are also hearing september 11th. which is it? >> no, it's definitely going to be the 10th. apple has never done an event on september 11th. it's usually the 9th or the 12th for obvious reasons. the company has avoided september 11th. liz: you say definitely september 10th. >> yeah. we will see it on the 10th, then that friday will be when preorders open for everything that was announced, then it will ship the following friday. that's been apple's road map for years and years now. liz: everybody clear your kal ders calendars for that day. now to what they will unveil. give us your first bold prediction. >> actually, it's something they are not going to unveil. what we are not going to see at this september event is going to be anything that has anything to do with 5g.
there's not going to be a 5g phone, a 5g tablet. the 5g iphone is definitely going to come next year. liz: no 5g this year? i mean, i thought this was the year for 5g. i was sitting there in january at the consumer electronics show and that's all anybody was talking about. they were even slapping kind of fake 5g stickers on hardware. >> that's right. yeah. this is actually another thing that apple is notorious for. when 3g was a thing, it took apple a long time to roll out a 3g iphone. when lte started rolling it out, apple was behind the curve as well. this is something they have historically been behind on when it comes to rolling this out because they are dedicated to making sure the phones are perfect and there are no problems. you look at some of the 5g phones that are out right now, some have overheating problems, some have battery drain issues, performance is not great on all of them and apple is just very opposed to that experience. it's going to wait. liz: some people say wait for the second model of a new car to
see what all the problems are and get the kinks out. maybe that's the case. let's get to the actual model of the car or hardware that's the phone. what is your next prediction? >> i think we are going to see actually a naming change across the iphones. the last couple years we have seen three different, one has been the r, then the standard version, then the plus. i think we are actually going to see a switch to the iphone, the iphone plus and the iphone pro. the iphone pro is going to be that thing, the big phone, the plus phone, and that's going to be where apple does a lot of experimentation. we are seeing three cameras, one of which being an ultra-wide camera on the back instead of two cameras we have right now and possibly even a usb type port similar to what's on the ipad pro right now but not what's on previous iphones. liz: give me your next bold prediction. you have a couple more i want viewers to hear from you what will happen. >> i think we have such a huge focus on services from apple this year, with apple tv plus coming out and apple arcade. a lot of those focus around the
apple tv itself. which actually is not a huge seller. i think on top of the partnerships we saw back in january, with samsung and lg and the other tv companies, we will actually see a smaller apple tv stick. i think it's going to be a low cost and it's probably not going to do everything the apple tv does but it's going to be focused on that whole services approach. apple wants people to subscribe to its services and stick around for awhile. liz: there's a chrome stick, a fire stick. we have to wait and see. your third bold prediction. >> my third bold prediction is apple is finally going to add a couple of new features to the apple watch that have been just begged for for awhile. the first is actually that always on display. you look at an apple watch, you kind of have to move your wrist to get it to wake up and do stuff, where the entire competitive market has screens that are on the entire time. i think this is going to be the year apple finally does that. i think we will see ceramic come back for a body casing and also possibly titanium. liz: we will be watching it all. thank you so very much, russell.
again, russell saying september 10th and don't hold your breath for any 5g announcements. russell holly. another wild ride for tesla. with the closing bell ringing in 38 minutes and the dow up 58 points, this gain we are seeing in tesla, this fractional gain hardly tells the story of today. the intraday picture does. we are going to show you. it spiked 2% on a rumor that volkswagen's ceo was potentially interested in taking a stake in elon musk's brainchild. a few hours later, the german automaker publicly slammed the brakes on that, saying the headline was quote, without merit. so the stock then fell into a hole. but the wild ride continues right now as buyers sweep back in. the stock is up half a percent right now or $1.05. one thing tesla and volkswagen seemingly agree upon, california's push to cut co2 emissions despite major opposition from the oval office. the new battle emerging via
president trump's favorite messaging tool and whether that pressure will do anything to move the needle on how the next car you buy is made or its cost. "the claman countdown" is coming right back. our 18-year-old was in an accident. when i called usaa, it was that voice asking me, "is your daughter ok?" that's where i felt relief. we're the rivera family and we plan to be with usaa for life. see how much you can save with usaa insurance. doprevagen is the number oneild mempharmacist-recommendeding? see how much you can save memory support brand. you can find it in the vitamin aisle in stores everywhere. prevagen. healthier brain. better life.
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liz: we've got this news developing in just the last hour. the nation's largest automaker has just honked back at president trump after he slammed them on twitter last night. the president accusing general motors and ford, two of america's most iconic car companies, of building unsafe vehicles. this after the two sided with the state of california on stricter fuel economy standards. the president tweeting quote, the legendary henry ford and alfred p. sloan, the founders of ford motor company and gm, are quote, rolling over at the weakness of current car company executives willing to spend more
money on a car that is not as safe or good and costs $3,000 more to consumers. crazy, end quote. now, back in 2017, then ceo of ford was at the consumer electronics show and president trump had just tried via twitter to threaten toyota and gm for their plans to build factories in mexico. invoking the ford founder's name, i asked fields whether the government dictating where companies should build plants was appropriate or overreach. henry ford, the founder of this company, was a man who completely thought for himself. what would he think of a leader who's getting it out there, whether it's toyota that president trump tweeted about, or any of the other companies out there, general motors, he's been very hard on them. what would a guy like henry ford say to those kinds of moves? >> we just say do what's right for the business. that's exactly what we're doing. liz: to grady trimble. he is on the new face-off
between the new face-off between the president and the auto makers. is that ford or gm where you are? reporter: this is ford. what kicked off this twitter spree, some auto makers reached a deal with the state of california, agreeing to lower emissions and make their cars more fuel-efficient. the obama administration tried to do the same thing at a national level and trump administration comes in and kind of rolls all those regulations back. so then california goes behind the president's back, you could say, and reaches a deal with the auto makers you see on your screen here. they are similar to the obama-era administration -- obama-era regulation, i should say. the president wasn't happy they reached this deal so that's what kicked off all of these tweets. ford, as you mentioned, clapping back in a statement, saying ford is proud to lead the way in taking the right actions for the environment while at the same time protecting consumer affordability and the short and long-term health of the industry.
ford says it wants all 50 states to reach an agreement instead of having to reach individual deals with each state. gm says the same thing. in fact, gm actually isn't part of that deal with california. here's part of their statement. they say our focus remains on working with all parties on a solution that would involve a 50-state solution and a national electric vehicle program. the president offering this warning to car companies who are working with the golden state which, by the way, is the biggest market for cars in the u.s. the president tweeted car companies should know that when the administration's alternative is no longer available, california will squeeze them to a point of business ruin. so we also reached out to fiat chrysler, they are the last of the detroit three that we hadn't heard from. theresident didn't mention them by name in any way, so they said you know what, we're not going to get involved in this. no comment. liz? liz: grady, this is becoming an issue because these companies, they want to run their own show,
just like i'm sure most business people do and sort of this overreach from government sometimes is shrugged off but we shall be watching this very closely. it appears the auto companies are kind of building up, including i think mercedes-benz is thinking about it, too, on siding with california, right? reporter: i'm not sure exactly on mercedes-benz but it's certainly going to be something to follow. we'll have to see if there's a 50-state solution because that's what all of the car makers at least here in the u.s. seem to be pushing for. liz: grady, thank you very much. grady trimble. throwing shade at the trade war. with the closing bell ringing in 29 minutes and the dow now up 73, but the nasdaq still struggling, it's down 19, just one point above 8,000, one startup suffering from blurry vision about how exactly the trade war's new tariffs would change the way it does business once these tariffs kick in on september 1st. the founder and ceo of eyeglass producers privet here in a fox
business exclusive. and game stop is game on for one famed investor who predicted the 2008 market collapse. find out how it's moving the stock in today's fox business brief straight ahead on "the claman countdown." announcer: fidelity is redefining value with zero account fees for brokerage accounts. and zero minimums to open an account. at fidelity those zeros really add up. ♪ maybe i'll win ♪ saved by zero
credited with predicting the 2007 financial crisis. he says the company's balance sheet is in good shape and it has the cash flow to justify a much higher share price. right now, the share price is up 8.9%. wayfair shares raised from hold to buy after they continue to gain market share. shares higher, 1.7%. hormel shares satisfying investors after it beat on the bottom line and reafirms its full year guidance. [ inaudible ] despite weakness in hormel's grocery product which includes skippy peanut butter products. shares dropping 11% year over year in that unit.
the shares 4.3% higher. up next, a member of one of the retail shopping world's most well-known families talks about the threat tariffs are about to impose on his hot new business. the pickle the trump trade war is putting ceos in when "the claman countdown" returns. what's the hesitation? eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable. i could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy. what's the hesitation? it's just complicated. step-by-step options trading support from td ameritrade 2,000 fence posts. 900 acres. 48 bales. all before lunch, which we caught last saturday.
liz: breaking news, and i promise you, i'm not going to interrupt every single time the yield curve inverts, but it just inverted a moment ago and the reason why this is newsworthy at the moment, we can show you right now, the two year's at 1.61%, and the ten-year is at 1.613%. so just barely out of the yield curve drama here. the reason why this is newsworthy is because we have the federal reserve going to be speaking tomorrow, jay powell, the head, and so this could move markets. we are watching the dow still holding gains of 82, but the
transports are down and we do watch very closely the transports in many of these cases, because they do get very involved in trade, whether it's the railroads or the airlines, cargo, et cetera. to the point of trade, sunglasses are one of the retail items that so far up until now had been spared by the tariffs on china. that is about to change in nine days. they are one of some 3,000 items that didn't get the delay in tariffs to december 15th. come september 1st they will be slapped with 10% tariffs. private riveaux is a name, it made itself this name by selling high quality sunglasses at lower prices, very fashionable, leaving them with lower margins than the industry average and quite frankly, less room to absorb tariffs set to kick in september 1st. here's the form companies from china will have to fill out for their products. this is a department of homeland security customs and border
protection form, 7501. it will tell them how much they owe the u.s. government for tariffs. david shottenstein is the founder and ceo of private riveaux. he may have to start filling out this form september 1st. thank you for joining us. what are you doing to prepare for this? >> great to be here. thanks for having me. i feel like we are very well prepared for this. if the tariffs do go into effect, there's one of two things that's going to happen. either our suppliers are going to absorb the additional cost, so we will simply get lower prices, or we will add a small surcharge to our prices which doesn't really bother me because we are already offering a product that let's say $29.95 or $39.95, depending which line you are purchasing, that really should already be priced at $75 to $100 at the very least. so adding an extra couple bucks is certainly not going to be a problem. liz: not going to be a problem. but you said if.
we know that sunglasses are on the tariff list for september 1st. are you saying if because the president keeps moving the goalposts when it comes to deciding whether certain items are on that list, because he eliminated suddenly or pushed forward to december 15th laptops and cell phones and such. >> it seems to change and obviously, the situation seems to be pretty fluid, so i say if meaning between now and september 1st, if nothing changes, i believe we've got a very good plan in place and it seems like the manufacturers are willing to absorb the additional tariff. liz: there are people, though, that we have spoken to and in fact, a businessman and i can't reveal the name of the company, but he did give me the paperwork that showed and we have to redact a whole bunch of stuff but maybe we can show it up on the screen, he gave me the paperwork that indicated on a single day this year, july 23rd,
i believe, multiple, multi-thousands and thousands of dollars worth of tariffs that he paid to the u.s. customs department of homeland security. i mean, more than $300,000 worth, yet the president says american businesses aren't paying the tariff. who will pay the tariff for you? >> we may, in fact, pay the tariffs but if at the end of the day we negotiate with our manufacturers to bring our cost down by 10%, which is the tariff that will be hitting eyeglasses and sunglasses, then we aren't really paying the tariff, the manufacturer will pay the tariff. that's what it looks to be -- that looks to be the case for us. we have a collection of reading glasses, a collection of sunglasses, all acetate super high quality. at the end of the day if it came to having the consumer pay a small extra fee, i would still be wildly underpriced. it doesn't bother me, doesn't worry me, but it seems like the manufacturers are willing to absorb those costs to keep our
business. liz: well, you've got beyonce and jamie foxx and big stars wearing your glasses. they probably don't want to pay more. they probably get them gratis. david, thank you so much. dow jones industrials up 95. i've got a brand new podcast that just dropped yesterday. check it out. it's an unbelievably inspirational story as always. everyone talks to liz. we'll be right back. ♪ ♪ ♪ introducing the all-new chevy silverado. with fifty industry-firsts.
liz: 15 state attorneys general readying to dish out the heat on t-mobile and sprint's merger despite the department of justice's recent blessing of the telecom marriage. this has got to be, charlie, one of the hardest-fought telecom mergers. >> yeah. liz: in history of the planet. >> thank you for telling me my
italian gold chain was hanging out preset. liz: hey, keep it out. loud and proud. >> okay. here's the deal. the case has been approved by the u.s. department of justice but it's being sued by i think it's 16, sure it's only 15? liz: i'm not sure of anything anymore. >> 15, 16, whatever. anyway, it's sued by more than a dozen state attorneys general and they're trying to block the deal on the grounds that it still violates antitrust. i think they have a hearing in october. we do know that t-mobile and sprint are behind the scenes trying to knock some of those state attorney generals out, telling them listen, this deal has been approved by the u.s. justice department because guess what, we created that fourth carrier that can compete, that's taken over sprint's place after the merger, dish, right. so we've done that already. liz: stock's going higher. >> here's what we do know from
the state attorney generals inside the legal plan is essentially to pull apart dish. what we understand is charlie ergen's dish, again, the carrier that's been created to be that fourth network by the justice department, that they are buying some -- liz: trying to greece the skias. >> they are trying to buy spectrum to be that fourth carrier. we understand what the state attorney generals are going to do is do a deep dive into dish's financials and from what i understand, they are doing it now. i don't know if they have subpoenaed charlie ergen and dish just yet. ergen and dish had no comment on this. the state attorney generals have no comment. we reached out to the new york state attorney general's office which is leading this. we understand they are compiling information on dish's financials to show that this company, even with buying the spectrum, with buying boost, with buying the prepaid aspects of the two merged companies, sprint and t-mobile to create a viable --
allegedly a viable competitor, attorneys general, yes, i know that, that even with that, that they don't have the financial wherewithal, they don't have the scale on the balance sheet to really be a fourth player. they are essentially going to argue that dish will be even weaker than sprint was alone which is pretty weak, by the way. sprint was not a big-time viable competitor. now, i can't tell you whether this is a good argument or not. it's going to go before the u.s. district court, federal court in manhattan soon. october is the date. it seems somewhat of a lift to me only because i don't know -- liz: what do you mean, lift? >> well, it seems like a stretch because -- liz: oh, a stretch. >> but lift. you know, lift, you have to lift -- liz: oh, oh. >> it's a heavy lift and the reason why is because sprint was literally nowhere on the competitive scale when it was alone. nowhere. now you at least have something that has got a better balance
sheet than sprint. i think. i mean, you know, you tell me. i'm just saying to prove this case, it seems like it's an uphill battle. again, we have calls in to the justice department. they had no comment. we put a call to t-mobile/sprint, they had no comment. we put in a call to dish. they had no comment. letitia james' office, the new york attorney general that's leading the effort basically confirmed what we were reporting by showing -- by the way, one other thing before we wrap up here. our story yesterday on fannie and freddie jacked the stock up. everybody followed it and nobody credited us. the "wall street journal" didn't, bloomberg. it's outrageous. liz: i agree. >> i'm trying to be outraged here. i can't help it. it is outrageous. damn it, it's outrageous. liz: give credit where credit is due. >> i think i'm just going to go blow my stack somewhere now. liz: where? in the gym? i'll be sure not to go there. >> i'm going to scream. i'm going to scream at marco.
liz: thank you. closing bell, eight minutes away. the markets are surging now, up 127, powering forward just like the energizer bunny. coming up, today's $9 billion "countdown" closer has the picks to keep your portfolio marching forward as well. that's next on "the claman countdown." fact is, every insurance company hopes you drive safely. but allstate actually helps you drive safely... with drivewise. it lets you know when you go too fast... ...and brake too hard. with feedback to help you drive safer. giving you the power to actually lower your cost. unfortunately, it can't do anything about that. now that you know the truth... are you in good hands?
♪ liz: four minutes before the closing bell. for a second there it looked like nasdaq was going to punch up into positiver to. not quite there yet. at the moment we're down 16 points. we got within a little bit of a whisper there. retail earnings have been huge drivers over the markets past few days. gap stores popping 5% ahead of it its earnings report which is after the bell. let's go to gerri willis live
from the floor of the new york stock exchange for theok of what gap is doing to do. reporter: liz, we're looking at 53 cents a share on the bottom line. 4.02 bill top line revenue. i have to tell you at that eps level. that is 30% decline from last year. even so this stock is up almost 5% today. this has been a washout. one analyst describing it as irrelevant today. the stock has been down 31% year-to-date. they're trying to engineer turn around ahead of this spin-off of old navy. what are investor tores worried about, old navy same-store sales were negative down. old navy has been typically the fastest growing part. let me tell you, the pe, the stock is trading at, 6.1. last year's earnings, versus s&p
trading at 1919.2. somebody has good news somewhere because the stock is trading higher. see you in a few minutes. liz, back to you. liz: gerry, thank you very much. we'll watch for it. you guys know this, right? we're in the longest bull market ever on record. more than 10 years in fact. it keeps going, and going, like the energizer bunny. the company says that the company behind the battery powered drumming bunny can beat dollars and cent into your portfolio. we have portfolio manager don mordell. hi, don, you like energizer, the parent company of it. let me push you here. why in aren't we going toward recharging everything versus little batteries? >> oh, no. these guys have great innovation. they have been able to put up fantastic battery and new products over the last couple years. we continue to see them doing that going forward.
plus they're diversifying away from batteries making auto care acquisitions which hurt them in the second quarter but, you know, 12%, 50%, free cash flow yield, free cash flow yield he said, 12 times earnings, pretty attractive story over the next two years. liz: there was always the choice in the market, do i buy duracell or energizer? warren buffett purchased duracell, a bigger market cap. why pick that one over berkshire stock share owning a bun of businesses including duracell? >> i don't do a lot of work on berkshire. i don't know. i can tell you the management team at energize hears us convinced they can integrate the auto care businesses extremely well, drive higher free cash flow. they will be able to grow well above the street thinks over next two or three years. i would much rather own a story a lot more focused, easier to understand, than understand a giant stock like berkshire, what might move that i'm much more comfortable owning a position in
energizer. liz: i get it. the stock that owns them, zph. the s&p turned negative before the close. [closing bell rings] so did the yield curve. that will do it for "the claman countdown." melissa: retail earnings, optimistic boeing report boosting the dow, right now kind of struggling to hold on to those gains, up 54 points way off the highs of the session. the s&p 500 and the nasdaq look like they're both closing in the red there. s&p 500 just crossing over into negative territory. i'm melissa francis. connell: i'm connellhane. good be with you. the tricky yield curve inverting back and forth on us again. welcome to "after the bell." we'll have more on the big rket ms o the day. first here is what is new at this hour, president trump about to honor a basketball legend. the president will award the medal of freedom, w
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