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tv   The Claman Countdown  FOX Business  October 28, 2019 3:00pm-4:01pm EDT

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ago. now it's up five bucks. i don't know. it's looking pretty enticing to me but it is high risk. todd, thank you very much. folks, dow is up 140 points. i got a feeling this next hour is going to be explosive. liz claman, over to you. liz: exactly. we are about to witness history. i hope you don't move from that chair. you have nothing better to do, i'm sure, than just sit on your set and watch this. i know you will be watching because the s&p 500 is now just 59 minutes away from closing at an all-time high. the market spurred after president trump said phase one of the china trade deal is ahead of schedule and could be signed at the apec summit next month in chile. the president making the comments before departing for chicago and believe it or not, the chinese kind of agreed. look at the dow. the dow is no slouch. it's back above 27,000. the nasdaq is a big percentage gainer here. it's up 85 points or a full percentage. look at the russell, the little guys coming up, not even at the
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rear, they're charging ahead with a gain of 15 points. all of them rallying ahead of a week filled with major earnings and economic news. wildfires in california causing mass havoc and panic at this hour as firefighters desperately try to protect homes, museums and properties from flames that are just tearing up and down the coast. on top of that, homeowners and businesses have to dodge rolling blackouts induced by the very company that provides these people with electricity. one mayor from san jose has had enough. can his new and some say wildly radical plan to take control of pg & e actually work? he's with us live. and is google timing a major acquisition ahead of its earnings? could fitbit be a healthy addition to the tech titan's businesses? our tech tapanel is ready to ti off the pros and cons. tiffany's stock may have just become too expensive for its new suitor.
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you can now invest in the space race. we will tell you how. and charlie breaks it on at & t's boardroom drama. less than an hour to the closing bell. let's start "the claman countdown." liz: breaking news. we take you to london right now and the uk parliament, where moments ago, lawmakers voted down a proposal by prime minister boris johnson to hold general elections on december 12th. this comes just hours after the european union agreed to delay brexit. the british exit from the european union, by three months. britain was scheduled to leave the 28-nation bloc on halloween. we should let you know that once again, this vote has failed, failed in the parliament. it was something boris johnson really wanted. he had said that nobody really relishes going to the polls ahead of christmas, but he said the current parliament was
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incapable of settling the brexit issue. he will not get his way at least for now. apple, let's get to that, shattering a new record at this hour after jpmorgan put the street's most bullish price target on the stock. you ready? $275. right now, the stock is up under a percent, standing at $248.56. the jpmorgan call comes two days before apple reports its results for the quarter and that is also the day it releases its new air pods pro. they are more than $200. i'm sorry, i'm going to try really hard not to lose my current pair. european luxury maker lvmh has offered to buy famed jeweler tiffany. it has confirmed it offered $120 per share which would value the company at $14.5 billion. that works out to a $22% premium over friday's close. we don't know when the actual offer came through and it was probably sometime last week, but
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we are now well above $120 a share. tiffany's stands at $128.95. it's surging to its biggest one-day gain in history, up nearly 31%. need to get you to microsoft. it's emerging as victor in the clash of the clouds after winning the pentagon jed icloud computing contract. it was a $10 billion win for microsoft. the ceo of amazon, jeff bezos, happens to be the owner of "the washington post," the newspaper that has been banned by the white house so there's a lot of belief that that is why amazon did not get the contract even though they have an unbelievable amazon web services cloud system. president doesn't like amazon or jeff bezos. let's get to a protein shortage in china helping sanderson farms stock in the u.s. and right now, that stock is up 14.5%. coming along for the ride, pilgrim's pride and tyson foods,
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competitors, after officials confirmed that the u.s. and china disagrehave agreed to a d lift a ban on u.s. poultry imports. china is reeling from the lack of pork products due to a huge swine flu outbreak in china. finally, music to the ears of spotify investors. we have the streaming music company on pace for a record percentage increase after posting a surprise profit. nice move for spotify, up 15%. okay. yes, it will be quite an exciting close in now let's call it 55 minutes because the s&p 500 is set to end the session at a record high. the s&p right now is up 18 points. mark it at 3040. can it hold if and when it hits that record beyond today, considering that this week is chock full of economic reveals that could serve as a catalyst for more gains or could one of those pieces of data or metrics trip up the bulls? first, this is the busiest week of the third quarter earnings
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season. there wasn't even enough room on the graphics here to put in all the names which include six dow giants and 147 s&p 500 companies. they all report this week, including as we said, the big three tech titans, apple, facebook and google. so far, 78% of the s&p 500 companies that have reported have beat on profits. so things are not that bad, right? and then of course, we have everything coming to a head in washington on wednesday, as we learn finally whether the federal reserve will cut interest rates again. right now, on your screens, fed funds futures are pricing in a 94.1% chance that we will see a quarter point cut on wednesday. so you've got to stay tuned because that 3:00 p.m. hour, "the claman countdown" on wednesday, is going to be crazy. also wednesday, we get the first reading of third quarter gdp. right now the atlanta fed gdp now forecast shows the economy
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expanded at 1.7% for the quarter. friday, the big october jobs report will be released. according to economists the u.s. likely added 90,000 jobs this month. that is down 46,000 from september's tally of 136,000. so with all of that that we just put out there for you, what is the number one event our traders will be watching this week in order to make decisions of what to buy and what to sell? let's bring in the great scotts and phil flynn with us. scott redler, hope you had a good weekend. tell me which one of these issues or something else that might not be what we just laid out, will be guiding you when it comes to trade. >> let's go over the top three because you named so many of them, it's hard to just go with just one. since january we have had the powell pivot where all of a sudden, the fed was on our side, accommodative. that means the wind has been at our back. we want to make sure that continues. as you showed before, the fed funds rate is staying like 94% so as long as they cut, that's fine. we will listen to the language to make sure that's still there. earnings have been good, not
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fantastic. we have this goldilocks phenomenon happening where, you know, the economic reports aren't too hot so we have the fed but the earnings are good enough that even when they miss like in amazon, they are being bought. i think earnings-wise, tonight it would be nice if google delivers because it's been a strong fang name. we like to see some power. all eyes will be on apple considering they had about ten upgrades in the past three weeks. it's going to need to be really good to sustain the high levels which would also help the market if that doesn't get hit based on, you know, exceeded expectations now. liz: phil flynn, give me your sense. often in the past it has certainly been either the federal reserve or the jobs report. the monthly jobs numbers that come out from the labor department, either of those two floating your boat right now for trade? >> you know, i think it's the federal reserve. they are in a very interesting position right now. you show the fed funds futures. they have no choice but to cut interest rates at this meeting. the question is, where are they going to go from there. there's a lot of conflicting data out there right now.
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we are seeing from the atlanta fed, for example, today they lowered the growth forecast a little bit, but then at the same time, you're going to see this jobs number and even though it sputtered a little bit over the last month or so, jobs are still at the best rate they have been in over 50 years. so i think that's really going to determine. obviously these big stock names coming out, if you get a big miss, it will shake them up but at the end of the day, that's going to be transitory. the big issue, of course, is the federal reserve, their viewpoint on the economy, where they think it's going and how many more cuts will we get this year, next year and after. it may be the end this year. we'll find out. liz: again, folks, the federal reserve and i have watched this year after year, fed holds the power, especially when there are questions as to what we are going to see with interest rates. scott, you're up next. what do you think is going to be that one beacon toward which you go when it comes to deciding whether you buy or sell this week? >> so as an investor, liz, looking at a little bit longer term, not as a trader for the
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day-to-day moves, i want to see the pmi and ism numbers which come out on friday. so after the fed, after these big guys report their earnings, because what we have seen in the market up to now is kind of an ebony and ivory type situation where the consumer has just been strong, just been fantastic, but we have seen some cracks in the armor there on the business side, on the manufacturing side. liz: yes. by the way, did you see the dallas manufacturing activity for october? oddly, we have the new orders lowest since july 2016, went negative. yeah. >> exactly. exactly. so those numbers are the ones i'm focusing on because i want to see if the manufacturing sector really is as bad as it has been over the last couple months, or if we are going to get a little bit of a rebound which to me, for investors, will give a little bit better look into the end of the fourth quarter. liz: great to see you guys. thank you very much. the great scotts and the great phil flynn.
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see you next time, guys. all right. check the dow, up 148 points. to the u.s./china trade talks, it's been very rare that both sides send the same message on the same day, but it has actually happened. chinese officials saying over the weekend that parts of phase one of the trade deal are quote, basically completed, while president trump remarked this morning that phase one is quote, ahead of schedule. what is in phase one? well, we understand there's a pause in tariff escalations, but not an end to the tariffs. concessions on intellectual property, a commitment not to manipulate currency markets, agricultural purchases by the chinese including soybean and pork and all of that, and a dispute resolution mechanism, meaning if somebody calls foul, there's a way to at least hear it out. but will it be signed mid-november as hinted? to edward lawrence. edward, november is just around the corner. reporter: yeah, and you know, surprising remarks out of the president, when he shocked everyone saying that the phase
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one deal is ahead of schedule. he said he expects to sign that deal at the apec conference in about two weeks. it's important to hear exactly what the president said. listen. >> we are looking probably to be ahead of schedule to sign a very big portion of the china deal and we'll call it phase one but it's a very big portion. that will take care of the farmers, it would take care of some of the other things. it will also take care of a lot of the banking needs. we're about i would say a little bit ahead of schedule, maybe a lot ahead of schedule. probably we'll sign it. i imagine the meeting is scheduled for chile. reporter: the phase one deal includes the entire section of protecting intellectual property for companies. it also includes a greater market access for financial services companies going into china. now, the chinese will buy significantly more agriculture from the u.s. the chinese government will not confirm exactly how much money they will spend.
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however, president donald trump says it could be some $50 billion worth. liz, i can tell you on one last point, the treasury point, the treasury department is waiting for some more documents from the chinese central bank in order to determine if china is a currency manipulator or not. i can tell you the foreign exchange report is supposed to or was supposed to come out last week. it did not come out last week. it's been delayed. now, that's the report that would list who are the currency manipulators and china may not be on that list after the treasury department gets the documents they're looking for. we have to see. liz: edward, thank you very much. it's been a long sort of like brexit, just doesn't end. thank you very much. markets, though, are blazing to records but pg & e enduring a record low. with the closing bell ringing in 47 minutes, the california utility stock crashing, down 28% after warning that it could take 48 hours or more to restore electricity in northern california's wine country, where the kinkade fire has burned more
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than 66,000 acres. this as two new blazes near los angeles are forcing thousands from their homes, including nba all-star lebron james. he evacuated. citigroup analysts raising the red flag, seeing pg & e could be rendered worthless by all its potential liabilities. why would anyone, especially the consumers it serves, want to buy and run the power provider? up next, san jose's mayor is here on the hard sell he is making to put the power literally back into the hands of the people in the golden state. he's next here on "the claman countdown." imagine traveling hassle-free with your golf clubs. now you can, with!
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nighttime footage of the getty fire in brentwood, southern california. it's on the west side and it's called the getty fire because the getty museum has been imperilled. i know a lot about the getty museum. it was built to withstand fires but look at this latest one. the wildfires burned more than 500 plus acres, destroyed five homes at least and thousands of evacuations, mandatory, are in place for the area between the 405 freeway and the canyon. who knows what's happening with topanga animd malibu canyon. the state's gigantic utility pg & e is getting hammered. at 11:35 a.m. eastern this morning, pg & e's stock was halted after plummeting to a record low of $3.55. investors fleeing on concerns pg & e will be saddled with even more liabilities than it already has after a pg & e jumper wire
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through which electric current flows was discovered broken near last week's kinkade fire. in a bid to preempt its aging grid from sparking more fires, pg & e has, over the past couple days, cut off power to nearly one million of its 16 million california customers. no city has taken the forced outages on the chin more than san jose, leading its outspoken mayor to float what some call a radical idea. turn pg & e into a customer versus investor-owned utility. mayor sam liccardo joins us now. where did you come up with this idea that this massive utility should, in effect, be owned and run by the people? what brought you to this? >> i can't claim to have invented the idea. in fact, there are about 900 customer-owned utilities in this country. most are pretty small but a couple earn more than $1 billion in revenues, operating in georgia and nine western states in the united states so there's a lot of precedent for this. we certainly know that the path forward has to be one in which we have a company that comes out
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of bankruptcy that's going to need access to capital, make a lot of investments to upgrade this grid and it's going to need to be able to restore public trust. i believe we need a different model. liz: how would it work? skeptics say this is a little nuts and it would suddenly convert and take a lot of money? is there a plan? >> well, as you just noted, it wouldn't take a lot of money to take out the value of the shareholders, because the shareholders don't have much value right now in equity. we are really supplanting the shareholders with the customers and just as we have right now a couple of private equity funds that are in bankruptcy court seeking to take over the company, they would use debt to purchase out the value the equity holders, generally the customers, could do the same thing. as you noted, this company isn't worth much so it's not going to take a lot of capital. what's really going to take the capital is to pay off the claims as well as to deal with this
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infrastructure. liz: it just went below $2 billion in market cap so it's at $1.98 billion in market cap. it's got right now $30 billion in liabilities. we're looking at live pics of the staging areas for many of the firefighters. i do have to say, i found it interesting, pg & e came out with a statement to you and said we are not for sale. your reply? >> well, i'm a recovering lawyer. this isn't my area of expertise. i was a criminal prosecutor. but i'm pretty sure if you're in bankruptcy court, you are for sale. a judge is deciding exactly where your assets are going and who's buying them. liz: your governor, gavin newsom, actually had a different idea. he broadcast out to warren buffett last week that he hoped berkshire hathaway energy, a huge part of the besrkshire
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umbrella, was practically begging them, come on, buy this in bankruptcy. >> i recognize as the governor described, there's going to need to be a competition of ideas. we need better ideas than are currently in the bankruptcy court which are two hedge funds looking to take over this company. i would expect like any hedge fund, that it would be looking to extract value from the assets and this company may go back into bankruptcy for a third time in just a few years and the taxpayers of course will be left to pick up the tab. so fundamentally, we have a situation where we know either the rate payers or taxpayers are going to be picking up the bill for this and most of us know those are one and the same. i think we should just call the question, at least align the financial interests of the company with the public interests. liz: you really think this has -- well, it wouldn't be the government, it would be the owners, i suppose, the customers could run it better than the people at pg & e right now? >> well, we've got a lot of precedent for this. as i mentioned, certainly many utilities have done this before.
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we see everything from mutual insurance companies to credit unions that are customer owned and run like a private business, because in many ways, they are. but you have the benefit at least in the case of a customer-owned utility, of not having to pay federal income tax or pay dividends to shareholders. that means you have better access to capital at a lower cost. liz: we will be watching it. pg & e stock right now stands at $3.82. mayor, i will give it to you. you are trumpeting this and i can't wait to see if it gets some traction here. >> it's a pleasure, liz. thanks. liz: any time. all right. merger monday mania taking hold of stocks, not just tiffany and lvmh but did you hear about fitbit and google? we'll be right back. ♪ ♪
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liz: okay. halloween is just a few days away, but wall street is serving up some candy for investors to sink their teeth into at this hour. here's the report that came out just a few hours ago. google's parent company, alphabet, according to reuters, is making an offer to acquire fitbit. yes. um-hum. the wearable fitness company. the news sending the device maker's stock on a run, up 30%. now, this had been a momentum stock when it first went public. it's now just $5.60. but boy, a big move of $1.29 right now. google alphabet up 2.5%. now, here's something that's actually been confirmed. lv lvmh, hennessey, the owner of luxury brands, anything from louis vuitton, christian dior, dom perignon, looking to add another luxury brand to its family crown. the company saying it had quote,
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preliminary discussions to buy the jewelry brand tiffany's. to the blue box lover, i'm sure you are, too, right, the robin's egg blue box we all get excited about when we get it, susan li, what are fashionistas and investors saying about what could already be kind of a neutral dead deal because when they made the bid for it, it was probably a lot less than it is now, because the stock is going nuts right now. susan: it is. that means they are expecting a higher bid from here. how much is the blue box worth? according to lvmh, it's worth around $14.5 billion, at least initially, for its initial bid of $120 apiece. but as you mentioned, tiffany shares trading above that level and really close to its record of $140 apiece. it just struck it last year. also hit a record low of $60 back in 2016 so the stock is pretty volatile. now, it's also been going through a tough transition for the last few quarters, looking at lagging sales growth, despite the fact the jewelry business
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industry and around the world has grown about 7% just in the past year, but it's still worth a lot of money. it's a 182-year-old brand, has 300 stores around the world and how tiffany makes its money, it relies heavily on tourist spending in the u.s. but given that we do have the stock price trading above the offer of $120, the investment billionaire founder and owner of lvmh with a lot of brands already under his belt, the third to fourth richest man on the planet depending which stda the stock trades, he has a long track record of buying these luxury brands and wanting to expand his footprint in the u.s., given that tiffany is the largest american jeweler out there. he has gone hostile in the past, namely with gucci in the 2000s - and also acquisitions in the '90s as well. this time around, i think he has to pay up. liz: wow. lvmh, some amazing brands there.
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we shall see. right now the stock is, as you said, well above, let's let our viewers who might be driving and listening on xm sirius, the bid was for 120, the stock is at 128.36. may not happen. may not happen. susan, thank you very much. all right. 30 minutes before the closing bell rings, we are still on track for an s&p record. you know, look, the google story about the fitbit thing sure woke up shareholders, the potential deal with fitbit. this is the latest sales figures of the apple watch are just 48 hours away from being revealed, when the market's most valuable player debrief thes street on the state of its fiscal fitness. a pumped-up apple is not the only titan ready to unleash results on the market. up next, tech powerhouse's jeremy owens and russell hawley at the ready on who will pass their quarterly exams with flying colors and which silicon valley giants may be failing their physicals.
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each day our planet awakens but with opportunity comes risk. and to manage this risk, the world turns to cme group. we help farmers lock in future prices, banks manage interest rate changes and airlines hedge fuel costs. all so they can manage their risks and move forward. it's simply a matter of following the signs. they all lead here. cme group - how the world advances. liz: okay. so those rumors we just told you about regarding google parent company alphabet possibly acquiring wearable company fitbit continue to swirl at this hour. president trump has just landed in marine one at o'hare airport and as you can see at the moment, we do have him going to air force one after his speech and a fund-raiser in chicago, he
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will head back to, of course, washington, d.c. all right. so we are about t-minus 30 minutes away from google earnings. and we need to get you this news at the moment. it appears that the house of representatives will vote on the official inquiry for the impeachment proceedings, correct, brad? is that right? the inquiry. that vote is expected to happen next week. that is the breaking news. okay. all right. so to rumors of google parent acquiring wearable giant fitbit. okay, it's really spiking fitbit stock. google is up a couple percent but fitbit is jumping 31.5%. investors are waiting on perhaps a bigger story, google's earnings. t minus 30 minutes from now, we are getting them. but we also need of course to look at shares of other big tech
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names such as apple, not to mention facebook, because we have all of these names, microsoft as well, the u.s. government is adding fuel to an already raging fire in silicon valley after awarded that $10 billion cloud contract known as jedi to microsoft. the news is coming as quite a blow to amazon but google wasn't even in the running. google, yes, the big tech giant. google walked away from the department of defense last october, saying that the military work conflicted with its corporate principles. you have a lot of employees saying we don't want you to do that. as we kick off this major tech earnings parade this week, is this all just noise, or should investors continue carrying the torch for these tech behemoths? market watch senior tech editor jeremy owens live in san francisco along with mobile nation senior editor, russell hawley. russell, i want to tackle this first regarding google. google had a very solid quarter. we are expecting for services growth. but what do you make of the news it might make a play for fitbit?
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it kind of would make sense. one thing google doesn't make is wearables. >> actually, google works with a lot of different companies to try and make wearables but the problem is none of them do very well. they don't sell particularly well, even when they have high end brands that are involved, including fossil. they just haven't done particularly well, compared to what apple has been able to do with the watch and a lot of it comes down to performance. apple is straight up able to do more with the watch and have it be a more seamless experience. i'm actually wearing one right now. that is a big part of google's frustration, trying to get this solved. fitbit is really the only game in town. this decision more than just makes sense. it kind of has to happen in order for there to be any competition for apple in this market within the next couple years. liz: okay. jeremy, what do you think? the last time we had you on, you had said that google executives are quote, masters of talking for an hour at a conference call and saying absolutely nothing. they're not the only ones. we have heard a lot of ceos do that. but we're just wondering where you think this is going, because
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it is a gigantic and solidly successful company. >> yeah, it's going to continue to be successful and we are going to continue to find absolutely nothing out about it. they really do not say anything, when they break everything into advertising and non-advertising so on the advertising side we don't get youtube. on the non-advertising side they don't break out their hardware. right? that relates to fitbit, right? they never told us how much money they are making off their hardware, never told us what their margins are on that type of hardware, right? so do they want to bring more hardware into that business. they see what they're doing with the pixel phones. they have to know if this is a worthwhile business for them to be in. so i think if they do go after fitbit, that will one, they would admit that hardware is doing well for them, they want to be in that business. it would also say that the way they approach android from the jump of licensing it for free to other hardware makers is not going to work, and they are going to have to at least have a reference type of hardware with android on it like they do with pixel. liz: russell, you worried about all the regulation? you know you have congress
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members finding their voice when it comes to beating up on these companies. we watched mark zuckerberg of facebook held out by the scruff of his neck by congress last week. do you think google's in peril as well? >> yeah, i don't actually think most of the tech companies have anything to worry about when it comes to congress. honestly -- liz: why? >> i think the zuckerberg hearing kind of proved that. there was a lot of conversation that had very little to do with the topic at hand. as i think a lot of people forgot the conversation with him was about a cryptocurrency. that's because most of that conversation wasn't about that topic. so as far as regulation goes, i think that, you know, there's definitely some self-serving happening around narratives in congress right now that kind of make, you know, dodging what may be more complicated questions from google and facebook kind of easy. liz: okay. i want to transition to microsoft, and amazon. amazon did not get, even though it unlike google was bidding for it, the jedi contract. $10 billion over ten years. microsoft got the nod. lot of politics, obviously, in play here. the president does not like jeff
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bezos and amazon because they own "the washington post." give me a sense of what this does for microsoft, jeremy, because this could be close to $1 billion each year of nice cash flow. >> yeah, this pushes microsoft a lot closer to actually being a real rival to amazon. we have described microsoft azure as a rival to amazon web services but it's a chasing rival. it's way smaller, trying to get up to the level aws is at. this is a huge push up, not only in adding to its revenue but taking away potential revenue from aws, and setting up microsoft as the chosen provider for government, aws has made a huge push to get these government contracts. microsoft already had government contracts through office and all of its other services. so it has a little bit of a foothold in there and it's much easier if you are already paying for that type of software and services to just go yeah, layer cloud on top of that, get cloud computing as well. it shows that kind of advantage that microsoft is going to have,
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which nobody has had an advantage against aws in any meaningful way in cloud computing. liz: got to run. russell, air pods at $249 for that little thing? people going to buy these things? of course, we are waiting on apple earnings this week. >> they are definitely going to be people buying them. apple's earnings will be almost entirely hardware successes. this is likely to be one of them. if not this quarter, obviously, the next one. liz: don't lose them. if anybody invests, don't lose them. all right. jeremy owens, russell hawley, thank you very much. you guys want to invest in space and going to space? virgin galactic just went public. we will check on the stock and we are checking on the s&p. it's up 18 points. we are in an all-time record territory. stay tuned. does your broker offer more than just free trades? fidelity has zero commissions for online u.s. equity trades and etfs, plus zero minimums to open a brokerage account. with value like this, there are zero reasons to invest anywhere else.
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fidelity. there are zero reasons to invest anywhere else. but super poligrip gives him a tight seal. snacking can mean that pieces get stuck under mike's denture. to help block out food particles. so he can enjoy the game. super poligrip. [maniacal laughter] gold. gold!
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right, uh...thank you, for that, bob. but i think it's time we go with gbtc. it's bitcoin exposure through a traditional investment account. nice rock. it's time to drop gold. go digital. go grayscale.
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$250,000 is about the same price it costs people to cross
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the atlantic 100 years ago. so it always happens in any industry, the rich people help pay for the initial cost of the project. liz: but he said it could go down to 30 grand at some point once it gets adoption, right? that was daredevil entrepreneur and business magnate richard branson, talking about virgin galactic's $250,000 fare price going up into orbit, right. you guys are on board, right? from the floor of the new york stock exchange where the company went public today. the human space flight startup virgin galactic launching its way into the public market stratosphere today. it opened at $12.01, soaring as much as 6% in its debut. right now i'm looking at it, ticker symbol spce, and we do have space in the green at the moment, and it is looming just about 2% higher at the moment. shares of the elon musk space x and well, that's not public, actually, but jeff bezos's blue
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origins rival currently not publicly traded companies. got to wait for those. connell, you got to talk to him. he is such a myth and legend. connell: it's like, you know, now you can have options because we always used to say i don't know how you feel, by the way, that's not on my bucket list, whatever reason. i know a lot of people want to go to space. that used to be the question. you want to go to space. i wouldn't mind. i can do a lot of things but i don't know if i will do that. liz: i don't even want to go to philadelphia. connell: now you can invest in a company that sends other people to space. right? maybe buy the stock. it will be safer. branson's going himself, as he's talked about a ton of times. you're right, he talks a little bit about the price coming down, i don't know if that's affordable but that's within 20 years to get it down to 30 grand. would you do it for 30 grand? better than 250 grand, i guess, which is where it's going to be. but as a business, they think they have a viable business because they have this long waiting list of people on and on. they are also going to get
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involved in hypersonic flight. we will talk about that a little bit but you know the big thing coming up at the top of the hour is earnings. huge week on the earnings front. today is alphabet day. we will see about google. all kinds of metrics that we'll be looking at there. let's see how they start us off, you know, apple later in the week. we'll have it at the top. liz: okay. you know what we will have at the top? a record for the s&p, and we could, we are really close to a record for the nasdaq. the number to watch, 8330. we are at 8326. very close. all right. "the claman countdown" will be right back. ♪ imagine a world where nothing gets in the way of doing great work. where an american icon uses the latest hr tools to stay true to the family recipe.
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liz: we need to clarify something here. we just want to make it clear, it is this week that the u.s.
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house of representatives will vote on a resolution affirming a letter to fellow democrats about the impeachment inquiry. that will be this week. we don't have an exact day at the moment. as soon as we get it, we will let you know. now let us get to shares of at & t. they are hitting the highest point in an entire year. look at this one-year chart. up about $1.63 at the moment to $38.54. this after reaching a peace treaty with activist investor elliott management. now, for now, that keeps randall stevenson in the c-suite but it is also sparking chatter of directv, a division of at & t, heading closer now to the chopping block. charlie? >> we have been reporting this out for awhile now, and basically, randall stevenson confirmed our story. listen, there's a lot of smoke here about will they sell, won't they sell it, meaning directv, their satellite tv operation, which is losing subscribers very fast, although it's fairly big.
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it's got millions of subscribers but it's on the downslope, so to speak. elliott wanted them to unload it at some point. word out of at & t is they don't want to sell it, okay. they want to control it still. there is a middle ground offered by bankers, and this is a story that we talked about earlier, weeks ago. it is reemerging now, i think it's one of the reasons why the stock is up, to be honest with you. it's a plan by apollo management, the big private equity firm which has pitched at & t essentially to take directv, spin it out, you get some cash for that, not gazillions they spent for it, but some cash, spin it out and in this separate company, merge it with dish. that's how you do it. so what happens at that point? liz: would regulators say yes to that? >> possibly. possibly. this is a regulatory justice department that approves sprint/t-mobile so maybe this would work. this is not a business that is thriving, satellite distribution
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of television programming. we're not talking about a hugely competitive market here. two players. but not a lot of people -- people are dropping these things for a lot of reasons. you seek economy of scale. the point is, from what i understand, that is back on the table. i can't tell you if it's going to happen, i can't tell you how much it's on the table but i know the bankers are still pitching this because it does two things. is allows at & t to keep some control of it, they have some control over those subscribers, maybe cross-market them, plus they get it off their balance sheet to get some of the debt off the balance sheet, they make a few bucks on that. want to get to another story we reported over the weekend. we were first on air with it right here. a jailhouse meeting between anthony scaramucci and michael cohen. liz: whoa. >> both trump lovers at one point, right. no more vociferous supporters of trump. now trump haters. you know, you saw what cohen said in front of the house intelligence committee, called him a sleazy businessman.
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you see what mooch is doing every day, basically saying the guy is unfit for office. they met in jail. they are friends. the initial read, what we understood, they met in jail to plot strategy to go after trump. they say no. they say they just had a nice conversation in the federal pen. what do you think? liz: i think they have pretty big candy in the vending machine. you're not allowed to use money. thank you, charlie gasparino. we are looking at a record for the s&p. stay tuned. we are just six minutes away from witnessing history. heading into retirement you want to follow your passions rather than worry about how to pay for long-term care. brighthouse smartcare℠ is a hybrid life insurance and long-term care product. it protects your family while providing long-term care coverage, should you need it. so you can explore all the amazing things ahead.
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tell us something i find a little surprising. just as we're hitting records, you say time to study abroad? >> before we get to that today, right, the market is hitting a record because trade news is good. trade news is good market goes up. trade news is bad, market goes down. repeat, repeat, repeat. i think prices are ahead of the data here. we'll need to see some follow through on the trade. in the last month, i know that is a short trend, in the last month international stocks outperformed s&p 500. certainly they're cheap. if you look at four largest stocks, s&p 500 of the basically international stocks, royal dutch/shell, novartis, roche and toyota.
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they are blue chip companies but you can buy them cheaper because they're in the international index, not u.s. stocks. they do business all over the globe just like our companies. we get to buy them at a discount because they're international stocks. you're looking at yields, those four over 3%. you get more yield on international stocks, than you do in the s&p 500 which is less than 2%. liz: 10-year bumping up to 8.4%. what a difference couple months make where it is much, much lower. do you get a sense interest rate goss up here, we don't have a problem? what is the at forefront of your mind that keeps up, if anything at all? >> collapse in rates would be much bigger problem. look for what japan has been through years and years, basically no interest rates. i have client invest money in bonds. rates go away. that affects the lifestyle. i don't mind rates seeing them creep back up a little bit. the bond market starting to agree with the stock market.
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meaning we're seeing possibly an end to the little trough we're in right now. [closing bell rings] liz: john burke. always a pleasure. it's a record of s&p. dow is 1% of a record itself. connell: nasdaq is really close, really close. we do have new highs on the s&p, certainly on wall street. stocks kicking off the week in the green. corporate profits. fed meeting coming up. corporate jobs report coming up. all expected to dominate market headlines. moments from now big report from alphabet, parent company of google with the quarterly earnings. tech giant hitting all-time high alone, ahead of that report. dow closing up 131. 1% away from the the report hide. happy monday. melissa: absolutely. connell: i'm connell mcshane. melissa: i'm melissa francis. this is after the bell. this is record close for


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