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tv   The Claman Countdown  FOX Business  August 30, 2019 3:00pm-4:00pm EDT

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indicator because they are polling the consumer, the consumer is strong so anything tied to the consumer on a pullback makes sense here. charles: two of the best. that's why we brought you in before the weekend. thank you very much. folks, we are off 16 points on the dow. not too bad. jackie deangelis in for liz claman. i got a feeling it's going to be a wild final hour of trading. jackie: we shall see. thank you, charles. oil and stocks getting clouded over this hour as hurricane dorian slowly marches its way toward the u.s. mainland. the monster storm moving at ten miles an hour, currently gaining strength. now officially a category 3 storm, packing winds of 115 miles an hour. it is projected to make lafa in florida monday as an even stronger category 4 hurricane. meantime, dorian's slow churn putting it on par to cause as much damage as 1992's hurricane andrew, 2017's hurricane irma which cost the sunshine state $75 billion combined. the potential deadly weather
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event track still uncertain, with some questioning if a repeat of katrina's devastating path could be ahead, putting big oil gulf operations in jeopardy. as floridians hunker down, we've got live updates on our nation's ports and the travel, the ripple effects being felt by businesses and travelers across the united states. here at home, the china trade storm having its own ripple effect on stock. new talk on the horizon as the latest round of u.s. tariffs on chinese goods kick in in just 48 hours. but those talks might be too little, too late for the under the sea businesses that say they could be hit under the sea for a good deal due to this trade battle. meantime, soup and crackers heating up. one major food giant, tesla shares hitting the gas on major developments in china, and the
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lawyers now entering the chicken wars. the bears taking the bulls' steam away as we end this week. looking at the dow right now down 21 points, the s&p 500 down five, the nasdaq composite down 38 at this hour. this is the final hour of trade. i'm jackie deangelis in for liz claman today. less than an hour to the closing bell, let's go ahead and start "the claman countdown." jackie: breaking news. boeing shares all over the place as the federal aviation administration says a panel reviewing the aircraft maker's 737 max certification is quote, taking additional time to finish documenting its work and it will submit findings in the coming weeks ahead. this news adding more uncertainty to when the 737 will return to service after being grounded following two fatal air
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crashes. checking on the markets right now, stocks are trading rather flat ahead of the labor day weekend. we were trading in positive territory, but the dow giving up those gains, down 24 points right now, the s&p down six, the nasdaq down 41. for the month, the nasdaq is the worst performer in august, followed by the s&p 500 and the dow. even worse are the little guys. the russell 2000 and the dow transports, both down 5%. but the volatility index, the vix, faring a little better in august. quick check of various commodities. oil prices down 6%, soybeans down almost 2.5%. copper down 4.3%. it's an ugly picture for ulta beauty as well. the stock is the worst performer on the s&p 500 and the nasdaq. the cosmetics maker looking at a record percent decrease. look at it, down almost 30% right there after a sales and earnings miss. even model and billionaire kylie
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jenner couldn't rescue this company as it cut its full year profit forecast. getting hit as well, sally beauty, estee lauder. the last day of the week, the month and the summer, sort of, labor day marking that unofficial end of summer and our traders are at the new york stock exchange and the cme group to help us out, talking about what's coming ahead in september. that's what is on all the investors' minds. we have john, chris and ira. john, i will go ahead and start with you and say i'm not looking in the rear view mirror. most investors are looking forward, thinking about the tariffs that go into effect this weekend, they are thinking about the fed and is it going to cut rates. do you think that september will see some calm ahead even as august was so volatile? >> well, september has also been historically a pretty volatile month. but we do have some interesting data out there. we have investor sentiment at all-time lows. meanwhile, we have fantastic
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unemployment numbers. unemployment at 30-year lows. this is not typically the type of environment, 2% gdp growth, that's slow but it's not recessionary. so a lot of the recessionary rhetoric goes to investor sentiment. when it goes to extreme, that stuff usually does not pan out. it does not work. you have to look at that consumer sentiment or investor sentiment when it goes to tho extremes, usually you have to think the other way. when it's extremely negative. jackie: we are looking at a lot of data points surrounding the consumer because about two-thirds of economic activity in this country. as a matter of fact, the commerce department today saying that consumer sentiment was pretty strong in july. the numbers were better than expected. so right now, at least, the consumer is still intact. >> yeah, absolutely. i think what the gentleman said is correct. t
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when the retail investor gets turned off, it's generally an indication we will rally. i will say this. we have had three out of the last four months, we have had over 2,000 point trading ranges in the dow. that's one thing. i don't see that ending until we get through probably christmas. it could continue on through the election. i just think that's something you will have to get used to. so i don't see that changing. i'm actually looking forward to september because everybody that's on vacation now is going to come back, all the first stringers that were sitting on the beach are coming back so we will really see what's underneath this market as opposed to, you know, the august trading where you get whipped around lots of times because a lot of people aren't there. i look ahead to unemployment, keep watching the sentiment numbers but when you look at the overall picture we are within 2.5% of the all-time highs. people keep forgetting that. jackie: ira, do you agree that the wild swings will continue
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into september or if the fed, for example, could bring some calm to the market with another interest rate cut. >> well, you hit it on the head. you got brexit possibly starting with craziness september 3rd because parliament comes back for a short preferred time. they have already gone to court and lost the battle there. then we have the european central banks stepping to the table september 12th in one manner or the other. then we have september 17th when our fed gets to look at things. of course, we have the trade talks that are supposed to make some headway which was interesting today when tesla got a break from china. some people might have thought well, maybe president trump's going to do something about the tariffs on september 1st. so far he hasn't acted and i think the market's showing that. doesn't know what to do with all that. jackie: that's a big question, right. these tariffs are scheduled to go into effect on sunday and everybody has been bracing for this, talking about what the potential impact could be. john, i'm wondering if you agree or have heard anything on the floor about what traders are speculating in terms of how the president will act. is he going to pull a
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last-minute move and say okay, tariffs are off the table? >> you know, when it comes to politics, no one knows. one thing that we do believe is that these folks do have our best interests at heart and the trade war is important for every investor, every consumer. so it is in all our best interests to stick together on this and see it through. i do think they are out there for our best interests. jackie: the market has really braced for these tariffs to go into effect. i think what everybody has been focusing on is the fact there has been a constructive or it seems a constructive dialogue between the two sides and these talks are going to continue. we don't necessarily know exactly when or what the terms are going to be. but they are supposed to continue in september. so i'm wondering if that brings some calm to investors, saying you know, this deal could happen in the near future. >> well, it all depends what happens. we are one phone call away or one tweet away from having this all go away. jackie: yes, we are. >> i think the president knows
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that. the chinese know that. i think the closer we get, you know, into towards the end of the year, hopefully we get some traction. certainly the market, i think if that gets resolved, you will have a lot of volatility back off. jackie: all right. john, ira, chris, thank you so much for that. have a wonderful long weekend. meantime, move back to america. it's the message president trump is repeating during the trade war. today, directing it towds general motors, tweeting general motors which was once the giant of detroit is now one of the smallest auto manufacturers there. they moved major plants to china. before i came into office. this was done despite the saving help given them by the usa. now they should start moving back to america again. question mark. gm responding, telling fox business that they employ nearly 100,000 workers in 27 states and insisting that gm's china operations are self-funding. blake burman is live at the
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white house with the late-breaking details on the trade war, with less than 33 hours left before the new tariffs kick in. reporter: yeah, another landmark deadline in this trade war between the united states and china, as sotomorrow night at midnight, $300 billion worth of goods, this is the second batch of goods, within that $300 billion, a little less than half of that, the tariff levels are going to be going up, they are currently at 10%, as of midnight tomorrow night. they will be moving up to 15%. ahead of this, both sides, though, are saying that both teams are currently talking with each other as they say they have been in communication for quite some time now. for example, a spokesperson for the foreign ministry in china earlier today saying the following. quote, what i can tell you is that first the economic and trade teams of china and the united states have always maintained effective communication. that spokesperson was responding to this comment right here from president trump, when he was
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interviewed yesterday, speaking yesterday with brian kilmeade on his radio show, in which the president said that there were talks ongoing at a different level. watch. >> talks scheduled, there is a talk scheduled for today at a different level and yeah, they've been talking and you know, the fake news tried to say we weren't talking last week and then the vice premier of china said no, no, we have been talking. he spoke to people. reporter: sources are telling us that part of the complicated trade puzzle right now includes intermediaries from the u.s. side who are speaking with china, sort of trial ballooning ideas, making sure that the communication lines are open according to sources who are telling us about these intermediaries. two names that we have been given that have been intermediaries, you see them on the screen, steve schwartzman of blackstone, john thornton, former president over at goldman sachs. to be clear, though, it is unclear at this moment who the
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intermediaries are, who might be talking to china on that intermediary level. either way, the treasury secretary steve mnuchin alluded to this earlier this week in france, saying that they are quote, communicating. jackie: thank you, blake burman. so much to watch for coming out of washington. it will be interesting to see how it develops this weekend as well. thank you. let's take a look at the big board right now. we are watching the dow jones industrials down 33 points right now. meantime, campbells soup heating up to its highest level in over a years. sales for its soup and snack units which include kettle brand potato chips jumping in the last quarter. higher growth margins and a profit beat satisfying investors. shares currently trading higher by almost 5%. hurricane dorian threaten ing what could be a record travel weekend for travelers. we have the latest on storm related cancellations but the non-weather event that is creating headwinds for major
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jackie: disney is not letting mother nature get in its way. despite hurricane dorian's planned arrival on monday, the magic kingdom still going forward with its opening weekend for "star wars galaxy's edge" on what was supposed to be one of the busiest travel weekends of the year. other orlando theme parks like universal orlando following suit, keeping their doors open so far, despite the strengthening storm heading towards the sunshine state. we find grady trimble at chicago o'hare airport. grady, flights to florida. how does it look? reporter: well, jackie, it's a slow-moving storm at the moment
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and as a result, the cancellations and delays, those are coming in slowly as well. we are seeing a handful of them out of orlando as you mentioned. it seems to be the airlines are trying to wait as long as they can as the storm gets closer and they can get a more certain indication of where it's going to hit before they jump the gun and make cancellations. but that's going to cause the domino effect. once we see some delays and cancellations it's going to cause issues at all major hubs across the country so even people who aren't going to florida will have trouble. today, though, it was actually a decent day for travel.some p tae leaving here where they live to go visit family and try to help get them ready for the storm. other people are going home from a vacation here and they have to get home and quickly prepare for this storm. >> it's unnerving. the most recent track we saw is going to be right near where we live, in jupiter. so i'm anxious to get home. i'm anxious to get the house
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shuttered and anxious to stay inside. reporter: anybody who wants to make changes to their flight, all the major airlines are waiving any fees to make changes or even cancel them entirely. i want to point out something else that's not related to this storm but is united announced today that it's canceling all 737 max flights through december 19th. that includes 1700 to 2100 flights every single month, basically until the end of the year, and in another related news to that, the faa announced the certification process for those planes, they are going to need a little more time before they unground it and get it back in the air. lot of news going on and that's kind of a longer term look compared to the storm which is inevitable and certainly going to be causing some headaches for people in the next few days. jackie: i understand the folks who have to get home from their vacations or are going to help people that are down in florida, but you were talking to some people yesterday who were traveling down there for a vacation. they had a cruise that was scheduled. are you still seeing people
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trying to get on these flights for recreational purposes? we just talked about the theme parks saying we are staying open until we know more. reporter: yeah, we are. in fact, i talked to a gentleman who had his sunglasses and neck pillow and a tank top on, ready to go to miami. he said i've got my hotel booked already. we were planning to hang out by the pool, even possibly go to key west, and they said everything's booked so we might as well go. but once they get there now, they are obviously not going to be able to hang out at the pool all week. they will have to change their plans, you know, in some ways. but we are seeing that. jackie: really interesting. thank you so much, grady trimble on the ground in chicago. let's go ahead and check the big board. we are watching the dow jones industrials. losses are intensifying a little as we head toward the close, now down 43 points but giving up all gains that we saw earlier today. meantime, tesla shares rising for a third straight day after the ev giant won tax exemptions for 16 variants of its car models sold in china, including
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the model s, x and 3. elon musk's electric empire also following through with expected price hikes in the key growth market officially raising prices in china today ahead of the coming tariffs. shares trading higher for the week, actually. here on the u.s. mainland, no industry feeling the heat of the trade wars more than our nation's farmers. but coming up, we've got a shocking look at one part of the ag industry that says demand-killing tariffs could permanently leave its business und underwater. that's next on "the claman countdown." at fidelity, we believe your money should always be working harder.
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well. china loves lobsters but exports from the united states have plummeted. the u.s. exporting fewer than 2.2 million pounds of the delicacy in the first half of this year. that's compared to, get this, 12 million pounds in the first half of last year. now, as canada is filling the gap in the lobster market, some u.s. lobstermen now worry that they may be drowned out of the chinese market forever. to get a read on how the trade war is impacting agriculture and what the next steps might be, we bring in our guest, tom kehoe, who advises the department of agriculture on international trade. tom, great to see you. >> how are you? jackie: wonderful. let's go ahead and talk about the lobster industry. i think the biggest issue is that even while there's a pause right now because of these trade issues, that the gap will not be able to be bridged even if there is some sort of deal and resolution for the folks that we are exporting lobsters, and canada is gaining this advantage. your thoughts? >> china is a very price-sensitive market and a volume market for the canadian
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and the u.s. lobster producers, so look, i understand that they are losing the market right now and tariffs are boxing them out of it, but if we come up with a deal with china, and i think we are very optimistic and i think so are the chinese and the talks now seem to be that we are leading to some sort of a deal, hopefully we will see a rollback on the tariffs. look, price is price. if i can sell you this for $6 and the other guy is $5.50, you going to buy it for $5.50. so the price will -- the market will readjust once tariffs are off but the canadians have always had an advantage over us into china because the weather is so severe up there off the coast of nova scotia and new brunswick, they can't fish all year long. not all of them. the canadian government subsidizes them regardless of how much money they make. you could make a hundred grand, they will subsidize you if you are not working for four or five months. our fishermen don't have that. if they make a good living, they can't go to the government in the winter and say you have to help me. jackie: they certainly cannot.
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the lobster story is really only one piece of this, right? we are also looking at the soybean farmers who have been really struggling. you advise the administration on these trade issues. there has been an aid package to help some of the struggling farmers. where does this, you know, how does it resolve itself? is there a deal in the cards here and are these farmers going to be able to rebound? because if not, even that aid package will run out. >> the aid package will run out eventually but t other day, mr. duval, i think his last name, president of the farm bureau, when you hear about the farm lobby, that's them, he still came out the other day and said look, the farmers are behind the president. we hope that the president comes to some sort of a deal in the near future, but you know, the farmers are standing pretty much behind him. so they are a very loyal base to him. all those states went red and i think, you know, look, president trump announced with shinzo abe at the g7, japan would now buy our excess corn which is
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interesting. that takes a lost pressut of prf the corn farmers. jackie: i have done a number of stories on farming. the farmers i have spoken to, even if they are suffering, there's multiple trade issues, right, it's not just with china, but we are still waiting for the passage of usmca as well, as farmers have been struggling to compete with mexico, but nonetheless, even though, those that are suffering say they support the president, yet at the same time, they literally told me there were certain crops, certain parts of their land that they just wouldn't be able to duplicate those crops anymore because it wasn't competitive. so what happens to these farmers, do they just go out of business? then what? >> there's been a contraction in the farm industry. you don't see too many small mom and pop farms anymore that can sustain themselves unless they have some sort of agra-tourism type of thing where they have a farm stand. on the east end of long island you see some of that. the large farms now are the only way anybody can really make it. mechanized large farms. yes, there will be some crops that will have to be rotated or
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changed but i think these big farmers understand that and they are a pretty tough people. they don't want handouts the government is giving them. they would much rather be working. jackie: that i know. it's really interesting because they feel quite strong about it. they actually say the reason they continue to support the president is because they are optimistic there will be a deal in the long run. their position will strengthen. i guess the question is just how long it takes because i have spoken to so many analysts who are looking at the market just from a general perspective saying there's not really a huge incentive here for china to make a deal at this point before 2020. nobody wants to walk away not saving face here. not the president and not china. >> i mean, charles payne on his show which just preceded you, that was a big part of what they talked about, is china. how the markets have the jitters and i have said this before publicly, i think the thing that's got the jitters in the market more than anything is what's going on in hong kong. you know, i think initially,
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beijing thought that nobody would pay much attention to that. jackie: but they are. >> are they ever. jackie: they are very aware of it. >> it's the freedom of those people that's at stake. those people, seven million people in hong kong lived under british rule or british authority for a hundred years and they are used to freedom. they speak english just like you and i do. they are very articulate people. the real estate there is worth every bit of the real estate in midtown manhattan. they don't want to be under authoritarian rule. jackie: no, they don't. it's such an important financial center as well. as you said, the eyes of the world are on hong kong. beijing needs to tread lightly on this one. great to see you. thank you so much for your time today. let's check on the markets. the dow turned positive albeit by a half point right now. but we will be watching closely into the close. we are watching the s&p still lower by two, the nasdaq composite down by 29. dell shares powering on but the reasons behind the computer giant's intraday surge might actually surprise you. those details next in your fox business brief. "the claman countdown" will be right back. ♪
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gerri: i'm gerri will flis on t floor of the new york stock exchange. dell sales surging after delivering better than expected earnings in the second quarter. [ inaudible ] one highlight was
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its pc unit with record revenue. dell now up 9.69%. also topping second quarter, big lots. while the discount retailer saw profits fall last quarter, it reported a 2.5% increase in sal sales. the company is confident it will be able to navigate through the current environment for a good 2019 outcome. shares up 3.3%. and we have been bringing you this story all week and now the lawyers are involved. a man from tennessee suing fast food chain popeyes for running out of the popular sandwich, in a lawsuit the man accused the company of false advertising and deceptive business practices that caused him to waste time driving to local chains to find the sandwich. popeyes sandwiches became available in select stores on august 12th, now sold out
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jackie: breaking this hour. right now, florida governor ron desantis in winter park, florida, speaking at the orange county emergency operations center. the governor already declaring a state of emergency ahead of dorian's arrival. the hurricane intensifying as it heads tow the united states. as we continue to keep an eye on the radar, let's do a quick check on hurricane stocks as well. home improvement and generator
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stocks are performing mostly to the upside right now. home depot, generac and beacon roofing are trading higher. meantime, home depot hitting a new annual high earlier today as well. also taking a look at roofing and insulation companies, you can see the ones we are tracking are higher as well. right now, insurance stocks, expect they would be higher too and you can see that allstate and hanover are actually, progressive and chubb are not. big businesses bracing for impact on the streets and on the ground as well. ports from florida's east coast to the gulf of mexico are preparing for the worst as dorian's path remains a lingering question mark. kristina partsinevelos is tracking all the action in our newsroom. >> let's start with actually airlines, because no doubt if you are traveling to the florida region, there may be or most likely will be some delays, some big headaches. you are seeing several airlines, southwest, the first one announcing that you can switch your airline or your flights
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within the next 14 days at no fee. you've got united, jetblue, american airlines, all waiving the fees but you have to do it within a short period of time. shifting over to cruise ships because that's a major one beca lot of them leave out of the florida region, especially on the east coast. royal caribbean are closing their cocoa key island until september 4th. any purchase toward excursions you will get a refund in terms of a credit. carnival are still evaluating their weekend departures. the major reason for a lot of these cruise ships is you have the cruises in the water now that have to come back and everybody has to get off and the new people get on. these could be major issues going forward. disney fantasy changing their travel from the western side to the eastern side so they have already worked through some of that. norwegian cruise also has had some cancellations. the positive thing, we are talking about ports, it's a long weekend. monday, most people are off so we are expecting lower freight movement throughout the course of the weekend. we are starting to see some
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movement, they have changed the status to what they call x-ray so a lot of the -- there's a lot of open commercial traffic and transfer operations that will continue at ports like jacksonville, miami, canaveral, everglades, tampa. however, with canaveral, they have said they may close on saturday but it is up to the u.s. coast guard to do so. if that happens, that could further create some headaches for those that are getting on some cruises. i would like to end with this and point out when we talk about business, florida plays a really big role when it comes to life sciences and medical device manufacturing supply chains so this could slow a few things down if it gets way worse over the weekend on monday. jackie: it certainly could. obviously all eyes on florida right now and the gulf coast as well depending where this storm decides to go. meantime, breaking news, chevron just announced it is evacuating non-essential workers from the gulf of mexico as hurricane dorian bears down. commodities watchers certainly keeping an eye on this storm. you can see chevron's stock is trading just marginally higher
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in today's session. crude oil prices, though, they are trading lower in the aftermarket session, settling down 2.8% intraday. the question is what happens to prices at the pump. certainly a lot of people are speculating about this, as the trajectory of hurricane dorian remains a mystery. if it makes its way to the gulf of mexico, offshore oil production is going to be in the line of fire. let's bring in andy lipau. always great to see you. it always seems to be when there's an emergency like this. let's talk about florida specifically. depending on which track this storm decides to take, if it heads to the gulf, we know we are in for some trouble. if it goes up the coast of the united states, more northeast, the impact would be a little less severe, correct? >> exactly right. if it goes up the east coast, this is really a demand destruction on the jet fuel and
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gasoline side where if it goes into the gulf coast we will see a much bigger impact on crude oil production in the gulf of mexico. but the oil market is figuring that it really isn't going to be a supply side impact, it's really what's happening in florida. jackie: when it comes to gas prices in florida, you know, i have covered hurricanes before. the state says you are not allowed to price gouge but what happens to these prices when you are in a crisis situation like this? even once the storm passes? >> i think there is certainly going to be some stations that are going to be raising their prices but overall, with the futures market down another five cents a gallon, i'm really not expecting prices to rise. the biggest issue in florida is getting the resupply and that may not happen for a week, as the ports close down in anticipation of the storm and then they're going to have to restart after the storm passes and damage is assessed. jackie: let's talk commodities a little more broadly because we have been focusing on them as a piece of the china trade
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tensions as well, and as a result, of tariffs and the potential uncertainty, the impact we have seen on the stock market, the worries about growth not only in this country but abroad as well, we have seen a lid on oil prices. where does oil go from here? >> well, i think that oil is going to continue to slide downward. of course, as you mention, the demand growth forecast continues to be revised downward. they are about a million barrels a day. they had previously been 1.3 million barrels a day for 2019. what is more concerning is when we see the international energy agency say that during the first six months of this year, demand growth has only been 500,000 barrels a day. as we know, u.s. shale production has been up far more than that, and that is weighing on the market. jackie: 12.5 million barrels. that's the latest number we have out of the united states. staggering. >> yeah, it is. that's expected to rise to 13 million barrels a day next year
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and along with that, increasing growth, you are going to see increasing exports of crude oil out of the u.s. we now regularly see three million barrels a day of exports. by the end of this year, that i expect to see go to four million barrels a day, further weighing on the oil market. jackie: obviously, that has an impact on gasoline prices as well. which have remained muted in some parts of the country. a lot of folks are asking if we will see gas around that $2 mark. >> well, this is very good news for the consumer. on the national average prices are down 25 cents a gallon since this time last year but there are already seven states that have gas stations posting prices under $2 a gallon and those states are going from texas eastward over to georgia and south carolina, and into oklahoma. the next two states that should join the party, if you will, are missouri and arkansas, because these are all states that have reasonably low gasoline taxes. jackie: andy, final question. the trump administration rolling back some of the rules on
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methane emission. you would think you would see big oil jumping for joy on this, but some would say they have already put the processes in place to deal with the new rules. your thoughts on what it's going to do to the industry, is it a game changer or a non-event? >> well, i don't think it's much of a game changer. what you have seen is companies like exxon, shell and bp who are in favor of regulation, but it's the independent producers that have what are known as stripper wells that are producing less than ten barrels a day that are more at risk in seeing higher costs because the inspections go up, they are more likely to have a methane leak and their costs will go up. but overall for the oil market in general, i don't think it's going to be much of an impact. jackie: andy, great to see you. thanks so much for the insight. let's go ahead and check on the big board now, because we are watching the dow up 13 points. now back in positive territory. chinese stocks taking an even bigger licking than u.s. equities amid the trade war, of course. but are china's stocks really
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broken beyond repair? coming up next, investing guru tells us why the trade isn't stopping him from being a bull in china's shop. there's a company that's talked to even more real people than me: jd power. 448,134 to be exact. they answered 410 questions in 8 categories about vehicle quality. and when they were done, chevy earned more j.d. power quality awards across cars, trucks and suvs than any other brand over the last four years. so on behalf of chevrolet, i want to say "thank you, real people." you're welcome. we're gonna need a bigger room. oh, wow. you two are going to have such a great trip. thanks to you, we will.
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jackie: the trump administration moving forward with 15% tariffs set to kick in this coming sunday on the first portion of the remaining $300 billion in chinese imports not already targeted by the white house. the hang seng index and the dows mirroring each other in the ups and outpacing hong kong's equities amid the latest tariff drama, have hong kong and chinese stocks become too fragile for
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your portfolio? asian stock guru jim oberweise joins us. great to see you. >> thanks. pleasure to be here. jackie: let's start broad and drill down a little bit and just talk about the china trade negotiations. there are market investors looking at the news and saying they think a deal is imminent. the stock market would certainly like that. your thoughts on whether this n be achieved in a timely fashion. >> stock market would love it. i would love it. but i think it's probably not going to happen. not in the near term. you really have to look at the incentives of the decision makers to figure that out. if you look at it from trump's perspective, trump has to appear tough on china to his base. at the same time, china doesn't want to sign another humiliating trade agreement that has echoes of the chinese/japanese trade agreement. they also don't want to sign an agreement that doesn't look great right in front of the 70th anniversary of the prc. those are reasons you are not going to get something really short-term. i think you also have to look at it from china's perspective. they benefit from just stalling and waiting and going through
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the elections to see if trump wins again and if they have to continue to deal with him. i think the most likely scenario is we probably don't see anything happening, you see a lot of stalling for the next six, nine months. jackie: okay. and you know, it's when people don't want certain stocks that typically is the best time to get in them. you are standing by chinese equities and citing that as one reason why, but it's hard to, you know, a hard pill to swallow when people are worried and nervous about the region. what's also interesting, though, is china at 11 times earnings is a one of the cheapest markets in the world right now. make the case for me on why we should be bullish on china. >> first of all, i'm not sure you should be bullish on china broadly. admittedly, it's really cheap, 11 times earnings rel toative t the u.s. but there are good reasons it's cheap. the economy is weak, it's going to get weaker. however, there are some really bright spots and points within china that you can invest in. you don't have to buy everything. for example, consider 5g. you see china is really the leader in 5g. the market's massive.
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the top three telecoms are plowing money in and accelerating deployment. think of it this way. huawei on their first 5g phone, when it was first released, they got a million orders the first day. i think you will see a lot of productivity increase and a lot of infrastructure build from 5g. things like health care, rising disposable income is driving, and asian demographics, both of those things are driving increase in health care needs in china. i think that's going to be a great place. also, consumption upgrade. despite some weak macro trends, consumers have more money to spend and are willing to spend it. so premium brands, like premium beer versus cheap beer, those are the brands that are actually doing well in china. i think you really have to be more selective, you have to be a good stock picker and go into china and you will do just fine because you are buying a valuation that is assuming some really bad news down the road. there are spots that look really great. jackie: great to see you. have a wonderful long weekend. we will check back in with you soon. >> thanks a lot. you, too. jackie: the dow trading 23 points higher as we head into the final minutes of trade for the month of august.
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and you might have thought that our "countdown" closer was crazy when he said buy boeing last month. but look how much the stock is up since then. up more than 5%. find out what todd horowitz's shocking market strategy heading into the fall is coming up on "the claman countdown." (indistinguishable muttering) that was awful. why are you so good at this? had a coach in high school. really helped me up my game. i had a coach. math. ooh. so, why don't traders have coaches? who says they don't? coach mcadoo! you know, at td ameritrade, we offer free access to coaches and a full education curriculum- just to help you improve your skills. boom! mad skills. education to take your trading to the next level. only with td ameritrade. . . .
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i had a few good tricks to help hide my bladder leak pad. like the old "tunic tug". but always discreet is less bulky. and it really protects. 'cause it turns liquid to gel. so i have nothing to hide. always discreet. >> just minutes to go before the closing bell the markets set to finish out the week on a strong ♪. the dow currently trading higher by about 58 points. the s&p is up. nasdaq is up for the week as well. we're off session highs. the dow, s&p 500 are on pace for the best week since june 7th. today's countdown closer says september may not necessarily be any better for stocks in terms of volatility. we're joined by the host of the
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bubba show, todd horowitz. >> great to be with you, jackie. >> investors want things to be calmer. you're not thinking that? >> no. i think we'll get a lot more volatile before it is over. remember we're playing, trading off of tweets. trading off news. everything is about immediate gratification. everybody wants to be on the right side at the right time. instead of long term investing goal, patient enough for trade you're looking for. that is one big issues we have now. everybody is looking at 401(k) minute by minute, versus trying to put together a long-term plan. i think that creates a lot more volatility, you see more emotion, panic as things change. >> i hear you on the time horizon. folks are out there playing more of a short-term gain. i like to know if you're long or short, using a hedging strategy right now, give us some ideas. >> on long-term i'm rawls 100% invested in long term account
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and i hedge using derivatives where i hedge the portfolio to mathematical certainty to the downside which i add compounding. i'm playing a lot of tech to the short side. that can change. but for right now, based on proprietary algorithms i use, i will be short amazon and short google. i'm long apple right now. i think that is what i'm looking for. so i'm very short-term trader, sometimes for me to trade a long-term capital gain is four or five minutes. >> real quick, todd, last 10 seconds, what are you expecting from the fed meeting? will we get a cut in september? >> we're 100% getting a cut. i wonder if it is bigger than anybody thinks. i think powell is trying to be very cautious. we will get a cut. i would say 100% chance of a cut. >> that could be positive for the markets. so much to watch, todd. thank you for your insight. >> thank you, jackie. >> we love having you on. at this point we're watching the dow trading higher by 54 point
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right now. [closing bell rings] trading up most of the day in negative territory. managing to eke it out just in the final seconds here. the s&p 500 trading higher by two. the nasdaq is lower to the tune of 13 points but still a positive week. that is going to do it for "the claman countdown." connell mcshane. deirdre bolton, pick it up for "after the bell." deirdre: thank you, jackie. trade fears weighing on wall street. stocks mixed at close, the end of the day, the week, the month. trade relations it is there, it is present. ails changes. connell: if we're way up we're optimistic. if we're way down we're worried. a little bit of both. [laughter]. the dow up 29 at the close. that's not bad, right? deirdre: we'll take it. connell: we'll take any kind of a gain. we were up 150 some odd earlier in the session. that is how we close things out. deirdre: s&p 500 fighting for
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