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tv   The Claman Countdown  FOX Business  October 24, 2019 3:00pm-4:00pm EDT

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example. >> it is reflected in the p-e ratio of the stock, much lower than others. charles: right. lam research leading chips higher. jim, keith, thank you both very much. the dow is down 48 points. better than where we started, though, liz. maybe you can take it over the finish line like you did yesterday. liz: nice pressure, thank you. [laughter] liz: thank you, charles. he's right the dow is chock-full of stocks with exposure to china, maybe this is why it's in the red as we head into the final hour of trade. did you hear vice president mike pence reveal team trump china's vision today in a wide-ranging ve tough speech, he did anything but give a soft olive branch type message. he came out swinging, attacking the world's second biggest economy, over human rights and shady business practices, and he poked at two regions that represent china's most sensitive issues but he also singled american corporations for their role in the u.s. china trade mess. we will take you live to
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washington, d.c. and tell you exactly what he said that pushed the markets to session lows, but look, the bulls are trying to climb out of the hole right now. dow is now down 52 points. we had been down 119. the s&p is in the green, up 3 points. and the nasdaq is better by 55. so while the vp's comments jarred stocks, earnings are still powering the broader markets. speaking of which, we have amazon earnings up after the bell. amazon's marvelous mrs. maisel may be a comedian, but nobody is laughing at the endless number of subscriptions you may soon need to see your favorite streaming shows. a company that enables companies to set up their subscription services. the ceo of this publicly traded company is here exclusively to prepare you for what he calls subscription fatigue. and the real estate landscape dotted with high prices, but also very low inventory. in a fox business exclusive, the
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rock star of million dollars listing los angeles is here. what deals is he seeing and is now the right time to buy? less than an hour to the closing bell. we're watching the dow see if it can get into the green. let's start "the claman countdown". breaking news, this just coming in, president trump is planning to cut off federal agencies from reading the "new york times" and "the washington post". the white house press office says that the president will order federal branches to end their subscriptions to both news publications. the reason given today was that the cancellations will save taxpayer dollars, but the announcement comes just days after the president told fox news he ordered his staff to cancel their subscriptions, citing unfavorable coverage of his leadership and administration. right now it's not hurting the "new york times" stock which sup about half percent in the green.
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while the "washington post" which is owned by jeff bezos ceo of amazon is also moving higher and set to report after the bell. let us get to a bunch of name here, and we'll whip right through them. to theket and the maker of post-it notes, posted a major disappointment, 3m cutting its full year forecast, sending shares down 3 and 2/3 percent, blaming business uncertainty due to the u.s. china trade war for the bleak outlook. let's get to ebay, on pace for its largest percentage decrease in more than a year, down nearly 10% at the moment. what happened? it forecast current quarter revenue would be below wall street estimates. that's really weird because aren't we coming up on the holiday season? the on-line marketplace faces stiff competition from amazon and wal-mart and don't forget target. wal-mart and target made big news yesterday about their holiday shopping season starting early and all kinds of
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partnerships, so right now ebay looks like it on its heels and slightly lagging. paypal, breakout quarter, the payments company beat estimates. the mobile payment app was a big driver of growth in the corner -- quarter. two airline stocks are flying high at this hour, american and southwest as both reported gains in quarterly profits. american up 4%. southwest better by 5 and 3/4 percent but also pointed to an increasing impact from the continued grounding of the boeing 737 max. all right, finally we have visa set to report after the bell. investors seem bullish as the stock is gaining and among the top gainers on the dow, up 2 and 3/4 percent. vice president pence very strong speech on the future relationship of u.s. and china in d.c. now, one may have thought that with very sensitive trade negotiations going on, that the vp would kind of soft pedal it. oh, no, he charged china with
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trying to export censorship by exploiting corporate greed and coercing corporate america even pointing the finger at american companies for not standing tall and standing up to china. he singled out by name nike and the nba saying quote when american corporations embrace censorship, it's not just wrong, it's, quote, un-american. now, he did say that the administration remains optimistic that an agreement on structural reforms in china can be reached. let's get to edward lawrence. you have to figure the nation's business community, they are digesting the contents, plus, he poked at thosewo sensitive regions, taiwan and hong kong saying we're with them. we support them. >> you know, what we may be seeing here is some posturing on a global stage, and the vice president mike pence blasted china on human rights and spying, for stealing technology. he also took shots at the american companies you mentioned over china, specifically, nike, saying the shoe company promotes itself as a champion of social justice, but when it comes to
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hong kong, backed down to the chinese government removing houston rockets gear from stores. and then there's the nba >> some of the nba's biggest players and owners who routinely exercise their freedom to criticize this country, lose their voices when it comes to the freedom and rights of the people of china, siding with the chinese communist party and silencing free speech, the nba is acting like a wholly owned subsidiary of the authoritarian regime. >> and the vice president calling out these american institutions for their standing -- to stand up for the values and practice that they preach. this speech comes a day before the next phone call between the treasury secretary and the u.s. trade representative and the chinese vice premier. they are trying to finalize the language in the phase one deal so it can be signed at the
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summit in chile in three weeks. this speech, liz, hard on china, for some things, changed to soften the tone on trade but to se a message to u.s. companies. back to you. liz: he went furth and said hong kong we stand with you, not to mention of course those protests but he also said about taiwan that taiwan is moving towards democracy and that's great for all chinese people. the chinese cannot be happy about that. >> no, they are going to find some things in this speech and be very upset with it. >> he reached out a bit on trade and said they don't want to try and curtail the growth of the chinese government and their economy. liz: half a day ahead there, you think there may be some type -- who knows. hey, good for him, speak up and stick up for democracy. edward, thank you very much. edward lawrence. to the markets and the power of an earnings beat. let's take a look at tesla if you want to articulate that. shares of the electric vehicle
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giant are charging higher, spiking 17 -- 17% after a significant total upside surprise, an earnings beat. they were supposed to post a loss of 42er share but in reali tlaunexpectedly announced a profitable third quarter, seeing $1.86 in earnings per share. revenue did fall 8% from a year earlier, coming in at about 6.3 billion dollars. that marks tesla's first annual sales decline since 2012. and it does fall short of analyst expectations, but let's bring in our traders. phil,ly start with you. -- i will start with you. it is not just about the power of an earnings beat but also talk about the power of earnings miss. seeing twitter plummeting after reporting huge revenue miss this morning blaming an advertising bug that inhibited the company's ability to target ads and help marketers measure effectiveness. who is next? which company do you see for the next upside surprise or down side surprise?
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>> well, you know, i think on the upside surprise, everybody's going to be talking about amazon today, right? you know, and everybody thinks that stock is going to be so great, and it probably will be, but everybody is expecting it to potentially be, so i'm going to take one out of the basement there and look at one of the refining stocks, phillips 66. i think the refining stocks are in a very very important area this time of year, for this market to really start to take off. i think that's going fob a beat. one that i don't like that i think could miss is bf goodrich, the tire people, i think they will have a hard time because we are seeing a big drop in auto sales in china so the demand for tires is going tbe down. going back to twitter again, you know, i'm not surprised they -- they got the most free advertising in the world with president trump, and come on, you have to learn how to moneti that. everybody is talking about twitter. if you are disappointed in ternings -- in the earnings, you
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really ought to be doing something different because everybody beaking money with that kind of free advertg. z: ok. before we get to your guesses on upside surprises and upside beats, what are the three things you look for that tell you a company might just beat earnings estimates? >> all right, well, there's a lot more than three, liz, but i have tried to simplify this for the audience. everybody needs to get their pencils; right? we look to the past, recent quarters, we want to see sales growth, sustainable and improved sales growth. we want to see operating margin, this is important, it tells us that management can drive a business. it tells us they can control expenses. then we want to look at the balance sheet, financial tables, current and quick ratios, want to see their cash position versus total debt load. we wan to know tn mage inventories. this is important as they proceed into the quarter that we're trying to analyze. then we finally look at market performance, trending market performance into the release. we go back about three weeks. all right?
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we want to see an upward trend. we want to see how it performs on high volume days versus low volume days versus that trend. use 50 day simple moving average not for price but for volume. tonight you have amazon, intel. tomorrow you have verizo out of those three, right now i see the most conviction based on the volume trend in verizon. that's the one that will beat and i'm long with my own money. amazon i will wait to see how it reacts tonight before i probably do something around 7:00 at night, here on the east coast. intel i will probably just pass on because there's almost no conviction behind that one. liz: it is tough because intel has huge exposure to china. quickly, todd colvin? >> right now i'm watching amazon, but not necessarily for the reason that phil alluded to. amazon has been stuck at 50 day moving average. the s&p has been stuck at 3000. gold stuck at 1500 and ten year note yields 1.70 and 1.80.
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next week when fed comes out everything changes with their forward guidance going into fourth quarter and will they cut twice before the end of the year or just once? liz: o viewers love this kind of stuff, getting inside your minds. thank you. the closing bell is ringing in 48 minutes. we have an upbeat forecast that came out from microsoft about its cloud computing unit offsetting any worries over a slowdown in revenue growth in the third quarter. one of today's big winners, jumping $2.71 to 139.94. we've been talking a lot about amazon because it is going to be reaching for the brass earnings ring after the bell today, the everything store's prime video subscriber numbers are sure to be in laser focus with a tidal wave of competition, looking to wipe out amazon and its hit show
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marvelous mrs. maisel but could something called subscription fatigue soon swamp all the streaming companies? up next, the publicly traded company that builds the subscription infrastructure for some 900 powerhouse names you know and use. the ceo is here on whether subscription fatigue can only be avoided by making some tough choices. countdown is coming right back. alexa, tell me about neptune's sorrow by olivia watson. alexa: it's a masterstroke of heartache, brutality and redemption.
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liz: with less than an hour before the big earnings moment, let's check on amazon shares. you can see right now they are moving higher by about a percent. we should tell you, web services and costs of one day delivery, analysts and investors will be
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hyper focused on subscriber growth particularly amazon prime which now surpassed the 100 million mark with nearly half of those subs streaming video. so 40 million streaming video including hbo shows through amazon prime video. but with deep pocketed rivals like netflix and the soon to launch disney and apple plus, along with comcast, peacock about to join the race are we all about to face subscription fatigue? and if so, who then wins? well maybe zuora the very company that makes the software which enables hundreds of companies to set up their subscription service, including hbo. in a fox business exclusive, we have zuora founder and ceo tien tzuo. great to have you here. amazon earnings are right around the corner. let's tackle them first. about 100 million built in subscribers in prime not all choose to stream video what kind of advantage does that give them over disney apple and
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the rest? >> gives them huge advantage. amazon has called themselves a customer company. their focus is to acquire every single person in the world as a customer not just with an amazon id account but hopefully with an amazon prime membership and through that, they can into go into books, entertainment, groceries. they are already plotting the next move related to your health. they have a lot of places to go, that is its core strength focused on customers. liz: apple might be sable -- apple might be able to do that because they have the phone, laptops, itunes and the app store. between apple and disney, let's talk about those two. they will launch within seven days of each other. >> i think there actually is room for multiple video streaming providers, and so what you are not going to see is a winners take all market in this space. i think there's room for disney, apple, hbo and amazon. liz: your company zuora provides the architecture upon which any
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company from ford to hbo 900 of them are your customers to set up subscription services. on our screen, caterpillar, symantec, general motors, why cars? obviously cars have become totally connected. all i think about sometimes tien is how many subscriptions do i have from xm sirius satellite dio to peloton not to mention pandora and spotify because i like both. >> yeah. liz: what about this issue you have termed subscription fatigue, and what does it mean for these businesses? >> certainly, when things are new to us, sometimes it takes some time to change, but if you think there's subscription fatigue now, you will have ten times, 50 times more subscriptions in the future than you have right now. what we're see right now is a trend that we call end of ownership. people don't really have to buy and own products anymore. you will be subscribing to more things in your life to satisfy your every day needs. why is that?
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because ultimately best subscriptions give us choice. the best subscriptions give us freedom. at the end of the day, choice and freedom ultimately always wins. liz: right, but it is exhausting to constantly fill out all the information and to check your subscription and remember all your pass words and i'm sure there are tricks to all of this, but for your company, which is by the way publicly traded, i would think that, you know, so many companies paying you to be set this up, i'm just interested to know why your stock is lagging. >> well, you know, we are focused on building a long-term company. i think when investors look at us, what they are excited about is the long-term value that we have as a portfolio play for the subscription economy. now the subscription economy is relatively w. as anything that's new, there's a sense of variety or variability in the early days but from a long-term perspective we like our position. liz: i like your position because a lot of companies are needing you. do you expect to get any big streaming business in the
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future? >> we already do. we're talking to the streaming companies. the broader message is subscription is not just to streaming, whether music or video. when you look at companies caterpillar, ford, you will subscribe to anything, there's no reason to buy a washing machine, or a car or a medical scanner, these should all be subscription services which both ourselves and our companies subscribe to. liz: let's hope we don't have a recession. that's when people start slicing and dicing and ending things. that's what happened to cable. tien thank you very much. >> great to be here. liz: no kisses for hershey with the closing bell ringing in 39 minutes. the chocolate king falling in this final hour of trade. but wait, you say, didn't hershey beat on earnings? well, it was more tricks than treat because investors were hoping for the maker of reese's peanut butter cups and kitkats
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to raise, they did not, so the stock is down 2 1/3 percent. nordstrom making their broadway debut, opened the doors to their new flagship store in new york city. we will give you a live first look at all the perks that the new department store giant that has just set up shop in one of the big apple's largest residential buildings, when "the claman countdown" comes right back. lost weight?" of course i have- ever since i started renting from national. because national lets me lose the wait at the counter... ...and choose any car in the aisle. and i don't wait when i return, thanks to drop & go. at national, i can lose the wait...and keep it off. looking good, patrick. i know. (vo) go national. go like a pro.
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♪ liz: breaking news, department store giant barney's new york has just announced that it has cancelled its bankruptcy auction that was to happen on monday. it is now moving forward on its sale to authentic brands group which is part owned by black rock, which includes aeropostale e greg norman and nautica and spidr. this dovetails interestingly to
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the fact that shoppers are marvelling at this hour at the corner of broadway and 57th, at nordstrom's. the seven floor store opened its doors at 10:00 a.m. cheering people includes multiple restaurants and bars, 24 hour in store pick up to customers and something the stores call connected fitting rooms where you can talk to a tailor with a push of a button while trying on your clothes. the stock is lagging a bit here, down about three quarters of a percent at the moment, but this while the retail ice age still sees other luxury retailers filing for bankruptcy and closing their flagship stores. >> good afternoon to you. this isn't just a retail store, but what nordstrom is trying to do is make it an experience, so you can shop for clothes right here and then over here, you can
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stop and have a glass of rose and even a bite to eat. this is a store that's 320,000 square feet. it's seven stories. it's got four restaurants and two bars. so down stairs earlier, we were looking at the shoe department for example, and you saw people trying on shoes and sipping rose and having snacks and whatnot, as they were going new -- as they were going through the experience. it is a challenging time to be launching this flagship in terms of retail; right? so much competition for nordstrom not just with the on-line sales but also, you know, the amazons of the world, but also the discounters, right? tjx, you have century 21 up the street too, lord and taylor's their flagship store went out of business, then you have the barney's news, they are closing stores as well. so i asked the co president eric nordstrom what it was about this store that was going to keep it here. he told me it is all about the
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on-line experience. new york city new york is the number one on-line area in terms of nordstrom sales. so they are looking to leverage that with this kind of store, give users the retail, give them the experience, give them the shoe making and expedited alterations, everything they need, one stop shopping in this location. so it remains to be seen, liz, if it will be successful, but certainly today, people were lined up around the block to get in here. liz: you e know, it is so fascinating on the very day that barney's which closed many of its stores saying we won't go bankrupt we will sell to authentic brands group. they had a restaurant. they had fred's which was so popular, but as you look behind you, at the restaurant that you just showed us, give us a sense of whether -- as full as the store is today, will this continue? >> i think it will. it's so interesting because i will walk over here. you can see people are enjoying this experience.
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they like to just take a second, take a break, get back to the shopping, liz, what was so interesting, the menu actually looks really delicious, and the prices were reasonably cheap. i said to my producer, jen, i said that is brilliant marketing. give people a break. let them sit down and eat cheaply, so they can hit the retail racks when they are done. seems like a sound strategy. we will see. what's interesting about barney's and fred's is that it's very separate. you go up to fred's. you may even dine there as a separate experience. it doesn't necessarily mean that you're shopping, liz. liz: yeah, jackie, thank you, a very interesting -- can't wait to get up there. so conveniently close. thanks. all right. and as we quickly check nordstrom's once again, it is down just under a percent at the moment. ticker symbol jwn. the realtor to the stars, the closing bell ringing in 31 minutes. the dow still down 16. the s&p, though, up 4, nasdaq better by 59. this man has sold luxury homes to 14 time grand slam champ pete
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sampras, maroon 5 front man, resident star and many many more. million dollars listing l angeles star is the 2 billion dollars man. that's how many sales he's clocked. we get his thoughts on the real estate landscape exclusively and wait till you see what the 30 year fixed i right now. "the claman countdown" comes right back. chevy's the only brand... to earn j.d. power dependability awards... across cars... trucks... and suvs. four years in a row. since more than 32,000 real people... just like me. and me. and me. took the survey that decided these awards. it was only right that you hear the good news from real people... like us. i'm daniel. i'm casey.
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liz: okay. are you in the market to buy a house? this week the average fixed rate for a 30-year mortgage came in at 3.75%. now that is a slight gain from last week, but more than a full percentage point below the 4.68% from just a year ago. seems like a buyer's market, but the answer may not be so clear. let's get to the star of the hit bravo tv show "million dollar listing los angeles". he's the real estate agent with 2 billion dollars in sales under his belt. josh flagg joins us now in a fox business exclusive. you look so l.a., josh. thanks for joining us. >> thank you. liz: let's get to this question of whether -- it seems like an obvious buyer's market because the 30-year fixed rate is so unbelievably low, and, you know, the federal reserve may meet next week and decide to cut rates again. >> well, here's the thing, and i
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wrote an article on this, which actually a lot of realtors thought was really fascinating because they didn't think about this before, but let's hypothetically say you buy a house right now, you are at a low interest rate. makes sense. buyer's market. let's do it. if the prices are dropping over the next few years, potentially the interest rates are going to go up, wouldn't you rather buy a house for a much lower price and two years from now and pay higher interest rate or would you want to pay top dollar still at a lower interest rates? liz: i don't know, that's way too complicated to me. i look at rates and say you should buy now. you would get a fairly priced house at the low interest rates. the problem is inventories, we saw new home sales day month over month down about 7/10 of a percent. obviously that's because there's a real lack of inventory what are you seeing on, let's say, middle of the road homes,
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not the fancy pants stuff for the stars? >> okay, not the fancy pants stuff for the stars. you know, i can't tell you about inventory, you know, in the middle of the country right now, what's going on there. i can tell you about inventory, regardless of piece, inventory in los angeles. there is a little inventory, but there is a a lot of inventory in certain sectors. for instance, the modern white box, which all these developers have been building for, you know, three or four years, that's flooded right now. that market is flooded with these modern white boxes and when you have so many of them and they all look the same, you have a problem, and because of that the prices are dropping. you have the mega houses -- let's say 40 million, 30 million, whatever, if they are selling at 20 million, then the 20 million dollars houses are now selling at 10. and the 10 -- it's cyclical -- will sell for 5 and so on down to the 1 million dollars houses. everything affects everything. going back to what you were saying about the interest rate
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thing, think about it for a second. it is simple. would you pay 2 million dollars for a house at a lower interest rate or would you pay at a slightly higher interest rate 1.5 million? that's where -- why i think that people aren't really buying right now. they are waiting to see what happens and my clients always say to me, i don't understand, why don't they just buy these houses, low interest rates? it is affordable because they know it is going to keep going down. liz: your sellers are asking that, i would imagine. how closely do you watch powell and company at the federal reserve? we have the fed announcement next week -- in couple weeks, october 30th. >> you know, i'm not focused on that. interest rates are good. my clientele is really more interested in getting a deal. they are not really as interested if it's 3.75 or 3.8. most people shouldn't be that concerned with it. yes, of course, every point or every fraction of a point counts, but what you should be considering right now is how to
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get the best deal on a house and timing because that's always going to be much more important. you can always refinance. when prices go up, they go down, whatever. over time, it will hit this again. i don't know when, but, you know, focus on the deal, not the interest rate. liz: you know what? you just stated it perfectly. rates will probably go lower, so you wait and get a better deal on a house and make people drop their price. what are you seeing with your celebrity clients? are they very savvy when it comes to waiting, or are they eager to just -- >> no -- liz: some of them are selling too; right? >> here's the thing about celebrity clients. you never deal with the client. you deal with the business manager or the attorney, which is good and bad because business managers usually kill the deal because they want to show off to their clients that they are trying to protect them. nevertheless if you can make the deal, the business manager is really advising them, let's buy right now, let's sell right now, interest rates, whatnot, but at the end of the day, the client -- he's going to advise that to the client and the client is going to say i want this house.
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i love this house. please. they are going to say okay, i'm letting you know the potential of you should maybe wait, maybe you shouldn't wait. so celebrity clients are also a different animal. i mean, that's -- you should really focus on like my clients that are just wealthy people that want to buy houses. they are just kind of chilling for the moment, not doing anything because they are watching the market. liz: that's right, chill, don't be too eager. swro josh, great to see you. come back again. >> as always, thank you. >> josh flagg of "million dollar listing l.a." out of the frying pan into the fire, the closing bell ringing soon, we are down just 7 points. the fast-food giant that could up end the sandwic wars. and i need you to listen to my pod cast, "everyone talks to liz". look at this guy, he was working in an m and m factory.
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he got fired, and today he is multi, multimillionaire because he hooks up brands, vital proteins, pop chips, vitamin water, with celebrities. he tells you in my pod cast the three things your brand must have in order to be the next big thing. you can download it on apple, google, fox news pod and listen to it. they're just inspiring. i want to hear about it. let me know. i'm @ liz claman. countdown coming right back. (woman) but to businesses, we're a reliable partner. we keep companies ready for what's next. (man) we weave security into their business. virtualize their operations. (woman) and build ai customer experiences. we also keep them ready for the next big opportunity. like 5g. almost all the fortune 500 partner with us. (woman) when it comes to digital transformation...
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sandwich set to debut in 2020. mcdonald's offering would be a dive into a very crowded field that includes chick-fil-a, kfc, wendy's and popeye's, whose ultra popular sandwich went viral this summer and sold out in two weeks. it doesn't look like the street is too excited about mcdonald's's chances in this game of chicken. the shares still feeling the burn down about 1 1/2%. that's a loss for a third straight day, after mcdonald's had its first quarterly earnings miss in two years. connell: i like them all. i'm not going to pick a favorite. you know what i don't like on chicken sandwiches is cheese. liz: not a good match. connell: any kind of sandwich, as long as there's no cheese. i bet you want to know what's coming up on after the bell. that's why you came to me, liz. let's see, i'm sure you have been talking about nokia a little bit today. what they found out is 5g
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rollout is very very expensive and there's tough competition. we had the exclusive interview with huawei executive, a little bit more on that today. for all the issues of huawei, if you are subsidized by the chinese government, it makes you a tough competitor. we will get into 5g and the earnings from amazon, top of the hour. liz: i'm so excited. connell: don't tell anyone. liz: i won't. connell, thank you very much. we will see you at the top of the hour. with the close bell ringing in is a minute -- 15 minutes, up next billionaire elon musk is keeping his promise as tesla took a shocking swing to profitability. charlie gasparino on how musk did it and whatxpect next, from the electric vehicle pioneer. charlie breaks it on elon musk and tesla, next on "the claman countdown". the dow is still down 22 points now.
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liz: if you put money into tesla, before the closing bell, you'd be up 17% right now. look at this stock jumping as the company now telling bankers the electric vehicle giant has finally been able to put the brakes on the short sellers they have been battling for years. charlie gasparino with the latest tesla news. of course after the bell yesterday, they beat in a big way. >> right. this is going to like warm the hearts of short sellers and what's known as the tesla community. usually when you get a stock symbol, you put a q at the end of it, that means they are going into bankruptcy. there's a whole community on the internet, a lot of them are trolls that if you write anything nice about tesla -- liz: they attack. so you are being ironic here. >> yes, they are not going to like this. i'm still skeptical about the numbers with tesla, just so you know. their cash flow increased on this, which is good.
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when you look beyond the numbers, but their subsidiesre going to run out at some point. they have to keep performing. that said, you know, they had a grt quarter. they beat expectations on just about everything, including cash flow, which is a big thing. they do have a heavy load of debt which they will have to pay on at some point. musk and his management team are taking a victory lap. bankers are still approaching them about financing ideas. they are telling them we have the shorts where we want them, we have turned the corner. we're going to squeeze the hell out of them now. they also said and this i find interesting is because bankers are pitching, you have to raise money, you have debt coming due. they are saying they are in no immediate need of cash, unlike the last time. they raised stock to pay off basically the company operations, debt payment and ytng. so they are basically telling the street, you know, we're fine, and we've turned that
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corner now and it is all gravy. do i believe that? i can just tell you this, okay? their subsidies run out very soon. okay? it's a rolling runout. cash flow is better, but they have to keep costs down, very hard. a lot of their cash flow got better because of cost-cutting. you kind of want cash flow to get better because you are selling stuff. if we go into a recession, that's going to be a problem. so there are some head winds here on the scenario that the tesla people inside are pitching to wall street. by the way, wall street is the last place you should really accept as, you know, accept as true. they love tesla because they want to be tesla's banker. liz: i can remember being at the freemont plant where tesla is made, with elon musk and he was saying i can't believe it, this is the most heavily shorted company -- this is years ago -- ever -- 40% of the float was
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shorted. today it is 26 -- >> we are still not at the all-time high. we're still off highs. we're better. we should also point out that in the last year or so, year and half, it's ban tough ride for elon, a lot of controversy, lawsuits, he said he was going to sell to the -- got funding secured to sell to a private equity. obviously he didn't. the sec there are still some rumblings going around about regulatory investigations on this stuff. there's stuff out there. again, you have to turn profit and cash flow positive by selling more stuff. not just cutting expenses. they need to do that. but they are telling people they want to squeeze the shorts like, i don't know, like a pimple. liz: that is disgusting, and i knew given a rope, he would -- [laughter] >> why is that bad? saying that? liz: closing bell ringing in 8
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minutes. up next we have a quiz for you, what are the world's riskiest developed markets, our countdown closer, ireland is number one, he says. hong kong number two, but you may be shocked to find out what he says is the number three riskiest investment market, find out what it is and why the risk might be worth it when "the claman countdown" comes right back. lele" to band shopping list. perfect. peyton, what are you doing? nationwide's teamed up with amazon to bring you the all-new echo auto. you're gonna love this. alexa, add "xylophone" to band shopping list. . . to band shopping list. that's for you. you need it. join nationwide now and get a free amazon echo auto. . .
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according to axio who builds risk models. first being hong kong, second ireland. the can you guess the third? today's riskiest market, from that market it is the united states. vmo global assets. the u.s. is risky? >> this is what the measurements say. we'll not question the measurements. if you think about it, the volatility con gone up in the u. market from july to right now. plagued by macro risks, trade, potential for a economic slowdown but overall you still you want to stay invested equities over bonds because the risk profile is better but you have to do it in a defensive way. connell: what way is that? pick hong kong stocks. we know there are major protests there. ireland is tough, brexit may make a hard border. we still don't know with
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northern ireland. that i understand. still hard for me to wrap my mind, we're slightly volatile, we're not near 13.46, volatility index. we're not near historic highs. >> that is the vix. this model predicts forward, next three months. that is what it says. regardless whether we get exactly to the level or not, there will in increased levels of volatility as uncertainty persists. therefore you want to be protected against a downside move. liz: okay. >> we're looking for stocks with low risk. especially combination with other stocks, bmo low equity fund, for portfolio bring down the risk. overall risk is 10. considerably lower than the market is 16. that gives youdown slide protection. liz: baxter international, autozone are the names you have.
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>> frankly boring names, at that don't attract too much attention in terms of swings down. therefore provide level of consistency that the portfolio needs not to have a very strong move to the downside, in case the macro risks are or the volatility goes up in the markets. liz: what do you make of markets between now and the end of this year? we have very low unemployment. we're coming up on a holiday season. i would think the consumer is still pretty strong, holding much of the economy on his or her shoulders. do you foresee a good q4 here? >> i think consumer stays strong for the quarter. the biggest risk are invests are being held up until we get more trade, more clarity, or certainty on the trade front. we think that is a potential dampener of growth in the u.s. hopefully the consumer stays strong. liz: good to see you. we really appreciate it from
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bmo. low volatility equity fund. it is okay to be boring. thank you so much. [closing bell rings] doesn't look like a win for the dow. down for the dow 24 points. s&p and nasdaq are green. that will do it for the "claman countdown." connell: busy day for corporate results on wall street. one of the biggest heavyweights moments away from reporting is amazon set. melissa: look at amazon. connell: they're all cheering for. we'll see if they're cheering when the numbers come out. mixed averages for the dow. dow fighting for gains in the last few mut. closing down 28, 29 point. down to the lows of the session. we were down 119 points earlier on today. good to be with you on a thursday. i'm connell mcshane. melissa: amazon day. also thursday. i'm melissa francis. this is "after the bell." the s&p 500 also fighting for gains at the close ending in positive territo. the nasdaq in the green for


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