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tv   The Claman Countdown  FOX Business  November 4, 2019 3:00pm-4:01pm EST

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names next year, we have health care that could be interesting. so far, the names, not so hot. charles: we also have tapestry, a turn-around retail play and shake shack, which is finally living up to the hype. you always live up to the hype. thank you very much. liz claman, we are up about 100 points on the dow. over to you. liz: it's not even that, right, it's the question will the third time be the charm. setting record intraday highs all day long today. the dow is about to join the s&p 500 and the nasdaq with new all-time closing numbers in about an hour's time. right now, we've got it up 100 points but as you see, at 27,447, we are solidly above the level that would mean a record never before seen close. solid earnings, good jobs numbers and trade optimism are really what's driving the dow to its first record since july. that would be its fifth of this year. while the markets cheer, uber investors may have a few knots in their stomach ahead of
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today's quarterly report. they will be watching the cash burn rate and how much the ride hailing giant spent to expand its investment in so many other areas. we have a bull/bear debate for you on uber stocks as it locks up the lockup period, ending later this week, and whether you should buy it now. and could it be an actual valuation finally for if and when fannie mae and freddie mac go public after riding the taxpayer's shoulders since the housing collapse 11 years ago? charlie gasparino nails it here in minutes during his fox business exclusive with the director of the federal housing finance agency, mark calabria. plus mayhem at mcdonald's. saudi aramco moves and our "countdown" closer is ready to spend warren buffett's billions naming names at the gigantic corporate elephant he says buffett should buy. less than an hour to the closing bell. happy monday. let's start "the claman
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countdown." liz: breaking news. just a few moments ago, pg & e shares were halted twice. this due to major volatility in the stock. to bring that into perspective, some 30 million shares are trading, that's double the average volume. pg & e of course is the big california utility that is in bankruptcy right now. it is up, though, for a fifth straight day, jumping 15%. again, we should note it's just a $7.41 stock. but this after restoring power to nearly all customers in california who have been intentionally cut off back on october 26th and october 29th. this in order to prevent more forest fires from being sparked. as you see right now, this is a very volatile move at the moment. you want to be careful when you start to see multiple halts. that's a very rare situation. one in a day is rare.
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twice in a day is highly unusual. we are watching pg & e. let me get to under armour. under armour thinks sports will change the world. well, so will its accounting practices. the sports apparel maker under investigation by the justice department and the securities and exchange commission to determine whether the company shifted sales numbers from one quarter to another in order to gussy up and improve the results. under armour says it is cooperating with both federal agencies, but here's the date this began. july of 2017. when you fail to tell investors and they wake up on a monday to find out, look what happens to the stock. down nearly 20%. that's the lowest level since last january. let me get to progress in the u.s./china trade talks and production cuts that are likely to be agreed upon at the december opec meeting. those are both fueling crude oil. crude oil was up about close to 2% at session highs. crude did settle higher by .6%
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so off those highs, that's where we are right now in the aftermarket. $56.56. well, this is gassing up energy names like exxonmobil, murphy and chevron. everyone up anywhere from 3%, look at murphy oil, up 10.33%. nice move there. you have chevron as the best performer on the dow right now. and huawei suppliers, they are seeing green after the u.s. commerce secretary wilbur ross said licenses to sell the chinese telecom giant's products would be coming quote, very shortly. so you can see names like broadcom having nice moves. qorvo up 4%. micron technology up 2.5%. texas instruments up 2%. all are having a pretty good day. by the way, that means a new 52-week record for the index where you have a lost telecom and chip equipment makers within that index.
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you know, from media mayhem this earnings week. big names at bat. look at this. disney, our parent, fox, "new york times," roku, discovery, tivo, lion's gate entertainment. if we wait to hear, we decided to pick out three names that often don't get as much attention but because their earnings could reveal a lot about three sectors that you might be invested in, we said let's turn the spotlight on them. first up, the spinoff from dupont which could open a window into the industrial sector, the maker of coatings including teflon. down 50% this year. actually, year over year. it's enjoying a modest pop of 3.25% ahead of earnings after the bell. even though analysts do expect revenue to plummet. we also decided to flag ethan allen for you. you guys know this name. good gauge of higher end housing. retail sales dropped by more than 5% last quarter due to a
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drop-off in sales in china. but profits are expected to jump 6% year over year. it's not helping the stock. it's down about half a percent. finally, you heard charles just mention this a second ago. burger joint shake shack will give us a window into the fast casual dining sector. shares have skyrocketed more than 80% year to date. the fast-growing chain known for its frozen custard and crinkle-cut fries has analysts looking for a 31% jump in third quarter revenues. so let me get to our traders. guys, we could see record closes for all three major indices. do you agree that these latest are earnings driven and when they report after the bell, which of the companies we just talked about might reveal hidden meanings for investors who don't even own them? i want to start with scott redler. what do you think? >> i don't think either of the three of them are really going to have a big impact on the broader indices but it's always good to see how the market reacts to them. i guess out of the three, ethan allen could give you a little bit of a look into high end
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spending because the furniture happens to be geared towards that market. we will see, maybe the health there. i will watch shake shack. it's been performing well this year. it was up 80% for the year. i want to see if they report a solid report, does it continue to go higher or does it start to get priced in because whenever the market is at new highs like the nasdaq and s&p, you want to see companies still get rewarded for positive reports versus them selling the news. i think that's what we will be watching today. liz: we have a smarter consumer, do we not? they are looking for deals and bargains plus nobody wants to overspend on discretionary things. one could argue shake shack, you could go to mcdonald's but mcdonald's has troubles of its own that we are about to get to in just a minute. what do you think? >> i think, listen, shake shack is going to be looking great right now. it's one of these hot stocks. it's something different than mcdonald's. of course, with all their problems right now, that is something that's going to probably go away and mcdonald's disappointed last quarter so there's a lot of stuff going on there. you know what, go back to the
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original question, is there a connection? sometimes there is. but we have had great earnings but you know, also, too, you can't underestimate the potential of a u.s./china trade deal. that looks a little better. i think that's given us a little more confidence. not to mention the fact the fed is going to keep low interest rates. you add to that low earnings, that really sets the stage for a very strong market and if you can't make money in a low interest rate environment, it's going to be difficult to make money at any time, really. liz: pricing power is definitely an issue for some of these companies. scott bauer, we talked about as we said chemores, shake shack, ethan allen. is it any one of those or another name out there? what are you looking at specifically? >> you know, ethan allen is really interesting. as you said, their profits have been hit really badly. in fact, last quarter, they came out and said that their wholesale imports from china, down 38% directly related to the tariff talk.
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so for them, it's all going to be about what do they see happening with the u.s./china tariff issue moving forward. that one could really be a good telltale of what happens kind of with that higher end home buyer like you just alluded to. in terms of shake shack, which i really like, they have transformed their business on the digital side. uber, grub hub, that is such a large part of their business now, i expect them to really, you know, put more dollars invested in it. i think you are going to see great metrics out of shake shack. i have never had a shake shack burger. however, the stock looks great right now. liz: yeah. they were on the chicken thing well before mcdonald's. speaking of which, guys, thank you very much. all right. dow component mcdonald's, the dow is up 90 points and to be down on a day when all three major averages are hitting record intraday highs, you would have to really put out some bad news. the very week that mcdonald's is supposed to be celebrating the 40th anniversary of the happy
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meal, the fast food chain's bad news appears to be coming every couple of hours. two hours ago, mcdonald's announced that chief people officer david fairhurst was living for unspecified reasons. that's not even the big news. the stock gapped down at the open after quite a shocker last night. ceo steve easterbrook, during whose tenure the stock spiked 90%, fired for violating company policy by having a consensual relationship with a subordinate. that's a no-no in the company handbook, which specifically made that quite clear. quote, this is what it says, employees who have a direct or indirect reporting relationship to each other are prohibited from dating or having a sexual relationship. easterbrook admitting the obvious, that he used quote, poor judgment, but he was replaced by mcdonald's usa president. now, we have heard this story before. brian crisanich stepped down as ceo of intel after an
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extramarital affair with a subordinate was exposed. in 2005, boeing's ceo stepped down over a consensual relationship with another boeing executive. here we have the shareholders saying why don't these guys read the manual, right, grady trimble, live at mcdonald's headquarters. not a great day for the stock. reporter: no, it's not. the company wouldn't say, you mentioned the head of h.r., the company wouldn't say whether his departure is related to easterbrook's departure. easterbrook is not walking away empty-handed. as part of his severance package he will get six months of pay in cash worth more than half a million dollars. he will also be able to cash out on a big chunk of company stock that bloomberg says is worth at least $37 million. also as part of that severance package, he can't work for competitors for two years. the company wouldn't comment on the details of that relationship but as you said, it was consensual but still a violation of company policy.
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easterbrook calling it a mistake and agreeing with the board's decision. former mcdonald's u.s. president responded to easterbrook's departure on neil cavuto's show today. >> this is a bad relationship when a superior is dating a subordinate, because everybody gets hurt. the stockholders got hurt today, the employees got hurt, the reputation got hurt, easterbrook's going to walk away with a lot of money but he was terminated. you know, nothing's good going to come out of this except it ought to wake people up and do what's right. reporter: we should point out, though, mcdonald's stock doubled while easterbrook was at the helm of the company, though the company did come up short in third quarter earnings. the man taking over now has been with the company for years, most recently overseeing u.s. operations. he's got a lot of challenges some of your previous guests talked about, like the competition with delivery and trying to get more foot traffic into the restaurants here.
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liz: tough day for mcdonald's shareholders, particularly because the market is having such a great day. thank you very much. let us know if we have any more indications about whether the h.r. executive had anything to do with who knows what. we are waiting to hear as it comes out in dribs and drabs. we are losing just a little bit of steam here. about 13 minutes ago the dow was up 100 points. we are still up 80. striker taking over rival medical device maker bright medical for $4 billion. the all-cash deal boosts striker's bone implant business. the $30.75 per share deal looks about right, but right immediwr is still below that. looks about right, right? up next, apple's new iphone 11 fit to endure extreme
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conditions but the tech giant is hoping to give an extreme makeover to the housing crisis in the very community where its innovations come alive. susan li has the two and a half billion reasons apple is hopping into the housing game. yeah. it is. "the claman countdown" is coming right back.
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liz: if you love how apple designs its sleek and chic phones and laptops, wait until you see how it designs housing. we are going to see that. the tech giant jumping into the home building business, announcing a $2.5 billion investment to address the housing crisis in apple's own backyard. affordable housing in and around cupertino and palo alto,
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california is basically nonexistent. too high. cannot buy a house there. it's too much. apple plans to use the money to ramp up building of low to moderate income housing at a lower cost. the stock vaulting above the 52-week high, up about half a percent right now with let's call it 43 minutes left to trade. to susan li. you know, this housing isn't just for apple employees, either. i like that. susan: yeah, because basically we are looking at a housing shortage because of the tech boom and influx of highly paid tech workers, so the average individuals are being shoved out of the market. that's why apple launching this $2.5 million commitment, this initiative. a billion dollars of which will go to an investment fund that wants to finance the shovel-ready projects to get units up as soon as possible. another billion dollars will go to first time home buyers to help them apply for their mortgages. they want to focus on the more vulnerable parts of the community, the valuable members, first responders, teachers, service members as well, and
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they will donate $300 million of this parcel of land, just about half of the 84 acres near northern san jose and the light rail line to build affordable housing and the rest, $150 million, $50 million, are outright donations they want to give away to help the homeless as well. you know, in san francisco we had 30,000 residents leaving the city from april to june, the second quarter of this year. in fact, we have affordability and ownership at a seven-year low. there's a shortage of 3.5 million units so apple, like facebook, like google, both of which those two committed $1 billion earlier this year, wants to help alleviate the housing shortage. also, maybe to help them combat the homelessness as well. last year, according to statistics, we had a 30% increase in san francisco's homelessness and another surprising stat for you which really shocked me, you know low income for a family of four is above $110,000? liz: i know. up there, it's crazy.
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it's just insane. you know, there's not enough supply for that demand of affordable housing. good on apple. good on apple. susan, thank you very much. jumping into uber. with the closing bell ringing in 41 minutes, might be easy to jump into an uber or maybe hop on to an uber bike ahead of its quarterly reports. have you heard about the jump bikes? but riding hard into billions of dollars of losses could send investors looking for crash helmets. should you still be buying into uber? more importantly, maybe now is the best time? i don't know. our bull/bear debate will put you on the straight and narrow. and charlie gasparino has gotten the big get. an exclusive one-on-one with mark calabria, director of the federal housing finance agency. find out what calabria believes mortgage giants fannie mae and freddie mac might really be worth now. charlie breaks it next on "the claman countdown." cologuard: colon cancer screening for people 50
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liz: let me put it to you this way. when a company too big to fail is about to collapse, dragging you, the u.s. taxpayer, down with it, sometimes the only one with enough money to save the system is the federal government, right? but at what point does uncle sam cut the apron strings? after the 2008 housing crash, mortgage giants fannie mae and freddie mac were hanging by a string. the federal finance housing agency had to swoop in and put them in conserve toreship to save them. how close are fannie and freddie to standing on their own four feet 11 years later? charlie gasparino just landed a fox business exclusive with the man at the top. >> mark calabria, head of the federal housing finance authority or administration or agency, i can't remember which one it is. whatever it is, he's a pretty important guy, the guy at the top of fannie and freddie, the mortgage giants. he's the guy that's leading the effort to bring it public.
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he does have a timetable. i'm not going to tell you. let's hear what he has to say. you are now fhfa as the guardian, i guess, of fannie and freddie. is looking for a wall street bank to essentially -- >> let me be precise. we are not looking for an underwriter. we are looking for someone to help us evaluate what the options are. >> these are wall street banks you are asking? >> across the board, to anybody who might come in in terms of discount advisory services. >> last question. do you think there's appetite for shares of fannie and freddie in the open market now? >> i think that's fundamentally a question that fannie and freddie will have to answer for themselves. my job is going to be you have to raise capital, you figure out how to do it. make sure, and i'm going to have to approve how they do it but it will be on fannie and freddie to sell themselves to investors. >> you must hear from banks. would they buy a share right now? >> well, i have certainly heard from a number of parties that they think that a public offering of this size would be feasible.
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but i do want to emphasize that ultimately, that's really going to be on fannie and freddie's job to do. >> this size is how much? >> we are talking perhaps the largest public offering ever. >> $100 billion? >> we are not at a point where we have exact numbers but that's the neighborhood you are talking a relatively large size. >> well, a couple headlines here. public offering, fannie and freddie coming in the next couple of years, when they recapitalize. that will be the final leg of the recapitalization. they are, the fhfa is looking for a wall street investment banker, adviser, to help facilitate that public offerings. the public offering is going to be the biggest in history, something like $100 million. billion. here's the problem. when lehman went under, it was leveraged 50 to 1. now most banks are leveraged 10 to 1. fannie and freddie are leveraged something like 300 to 1. they need to raise tremendous amounts of capital to come public, to basically be out of government control.
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that's what they are talking about. retaining earnings, they stopped this week. doing a public offering in the next couple years. the other interesting thing is, i spoke with calabria and it was in this aspect of the interview, the full interview will be on, he says don't be surprised if fannie and freddie, after coming out of government control, go into court-ordered receivership. now, what does that mean? that means the bankruptcy courts might take thoefem over so theyn recapitalize. why would they do that? we hit a bump in the road, the housing problem, they're not making money, they go into receivership. i will tell you this. if you are an investor in these stocks, recapitalizing sometimes is good and sometimes is bad. we have to see how this goes. theoretically, the preferred shareholders will do very well in a recapitalization because that's the top of the thing, top of the food chain in terms of getting payback. the people that won't do very well probably are common shareholders. he made it really clear, if they have to go into receivership, right, they are out of government control, they can't be a private company because
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they can't stand on their own, they have to get their act together in court-ordered receivership. guess what, shareholders, be prepared for all this as you are thinking about buying this stock, if you are thinking -- liz: fair to say that some big financial money center banks are going to be falling over each other to help? >> what he told me is that every major bank wants to underwrite it. be part of the underwriting. jpmorgan. i started throwing names because they want to be underwriters. what does that mean as far as financial adviser? he will probably, you know, this is a little bit inside baseball wall street stuff, he will probably pick more of a boutique bank that doesn't want to be an underwriter. i would say mullis and companies would have a good shot at it. however, they are representing shareholders in the various shareholder lawsuits trying to get money out of the government over the takeover of fannie and fred auch freddie. it's very complicated. they are thinking of doing a big public offering, $100 billion. they are looking at 2021 being the date.
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and you know, there's lots of risk here because when you recapitalize, you often hurt existing shareholders and if they have to go into receivership and you own common stock in this stuff, you are going to get crushed. liz: great get, charlie. thank you very much. charlie gasparino. uber everything. closing bell ringing in 31 minutes. ahead of quarterly results out after the bell, we are looking not just at uber, but uber air, uber eats, uber money, uber drone. i don't even know. >> uber dr. evil. >> uber dr. evil. one bull, one bear, right here on what both these people need to see from the ride hailing company and when its quarterly report is released, what happens? you want to buy ahead of that because it's in 30 minutes. straight ahead on "the claman countdown." imagine a disease is caused by too much of a bad protein, but a company develops a way to actually attack it. what drew me to capital allocation in health sciences
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i pounded my chest on this before. now we're still gaining share on uber. we've beat estimates two quarters in a row handily, top line and bottom line. you're starting to see the operating efficiencies. the market spends have stabilized. the raised guidance and by the way, lyft is now trading at 3 times their 2020 revenue number. liz: yeah, but you see, it's been tough since the ipo. regardless, a shareholder on our show last week urging investors to buy lyft despite the stock slipping after beating on
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reports, the quarterly reports. it doesn't matter what the shares are doing. down .75% because we are talking about uber now. uber is on the hot seat as the ride hailing company is set to report results after the bell. in t-minus 27 minutes from now. uber, under pressure to show it can generate sustainable profits in some way, shape or form. it is beaten down. the stock poised for a massive rebound, possibly, or are investors in for a very rough road ahead? jay jacobs' firm invests heavily in the world of tech. he joins us along with d.a. davidson senior vice president tom white. jay is our uber guy. tom is our lyft guy. you are very much a believer here. why that over lyft? >> uber is playing the long game here. this is not about this quarter's earnings. this is about five, ten years from now when uber is developing mobility all around the country. they are going international. they are doing freight, they are
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doing drone, they are looking at every disruptive technology within mobility and really setting themselves up to be the 21st century transport company. liz: tom, you can tell he's pounding the table just like courtney said he was pounding his chest on lyft. jay likes uber. you are more of a lyft guy. tell me what is it about lyft that you see where you look at uber and say not so much? >> what can we see, i think visibility is kind of one of the main reasons why we tend to prefer lyft here. we don't disagree with jay that uber is playing a long game, and you know, we are actually believers in the idea that the fact uber offers both ride sharing and eats and other products on one platform, may have long-term synergies but just, you know, over sort of a more reasonable time horizon, call it 12 to 18 months, we just think visibility at uber is a lot worse. the company is fighting a lot of battles on a lot of fronts in a lot of different products. it has to respond to kind of the
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competitive actions of maybe some aggressive competitors in some of its international markets and that just makes it difficult to get comfortable with the near term financial forecast. liz: jay, i love everything uber does. i take ubers, i like uber eats, everything, except that they are at risk perhaps of trying to be all things to all people. right? lyft knows its lane. lyft of course says we are u.s.-centric. i think they are getting into scooters and a couple other things. but how do you battle back against the thought that maybe uber is getting into that dangerous territory of trying to be too many things? >> well, people aren't too upset about amazon doing a lot of different things. it's how can you leverage your platform to deliver profitability in the future. uber has decided they are a logistics company with really good technology and they can build these two-sided markets so drivers and people that want to use those delivery services, so uber is betting they can build a bigger and bigger two-sided market that's going to be more and more powerful through technology. i think they could deliver that.
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they are taking risks but i think these are actually relatively small risks as long as it's being funded by that core passenger market just like amazon is being funded by that core retail market. liz: tom, how much of your i guess chill about uber perhaps has to do with regulation in california? california has just for the moment suspended uber's foray into bikes and of course, what they call uber jump. they temporarily suspended that permit to rent electric scooters because uber will not give up certain gps information and they are using privacy as an example, and the reason for that, but there's that, there's also the employees considered full-time versus part-time, california saying come on, you got to pay these people, give them health care benefits. how much of it has to do with your look and viewpoint on the stock? >> so look, i think regulatory oversight is kind of casting a chill really on both companies. i think over the next 12 to 18
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months, the increase in this type of regulation added fees and taxes, municipalities are levying on these platforms, will generally mean that fares for consumers are going up. i think the questions that investors are wrestling with is in a world where ride sharing fares are going up, what does that do to the total addressable market for these businesses, if certain use cases for taking a lyft or uber no longer really make sense for consumers, is ride sharing really not going to be this sort of solution to personal car ownership or eat away personal car ownership like these companies once promised or sort of pitched to the street. does that kind of reduce the total addressable market for these businesses. liz: jay, you know, jay might be right on one point, and that is when autonomous driving and these cars go driverless, may very well be that moment where a tightly coiled stock price might suddenly spring up, right? i mean, we went out to phoenix
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and were in the waymo car and waymo of course is not having a deal right now i believe with uber but you look at these things, people are hailing them right now. you don't have to pay for a driver. what happens then? >> that changes the economics of everything. you take out one of the biggest component of costs, it purely becomes a capital game of who can have as many cars on the road as possible being driven autonomously. that's a game uber can win because of the size and scope of their business. liz: yeah. that was john krafcek of waymo. we are about 20 minutes away from uber results so everybody stay tuned. thanks, gentlemen. the rise of robots. or maybe not. connell mcshane examining the swing state economy in pennsylvania in just moments, where humans work hand in hand with their robotic friends. yes. co-existing. that's next.
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check out this week's everyone talks to liz podcast episode. cauliflower queen and founder of cauliflower kitchen. you got to hear her story. it's amazing. invest in your health and tune in today. available on apple, google and fox news subscribe, rate, listen. i'm dying to know what you think of this one in particular. we'll be right back. driverless cars, or trips to mars. no commission. delivery drones, or the latest phones. no commission. no matter what you trade, at fidelity you'll pay no commission for online u.s. equity trades.
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gold is now on sale at prices unseen in years and this year could be one of the greatest gold-buying opportunities of all time! call now while vault inventory remains. as one of the largest u.s. gold coin distributors in the country, the u.s. money reserve has proudly served hundreds of thousands of clients worldwide. don't wait another minute, call now to purchase your american eagle coins at cost for the amazing price on your screen. liz: we have this breaking news. not entirely unexpected, though. the trump administration has now formally notified the united nations it will quit the paris climate deal. under the terms of the agreement which went into effect on november 4th of 2016, no country was allowed to withdraw in the first three years. the withdrawal process takes
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about a year and won't become official until at least the day after the 2020 presidential election. we are looking at solar stocks right now. we do have sun power which has actually had a decent run the last couple of sessions, down about 5%. solar edge down 3.5%. first solar moving higher by 1%. the big day in the auto world. several auto stocks zooming higher right now. first up, look at fiat chrysler. nice move here along with peugeot. both looking to get their mergers signed, sealed and delivered as early as december. or by december 25th, the very latest. that according to sources. the merger will create the fourth largest automaker by sales. shares of fiat up 3%. peugeot better by 3.25%. racing to new all-time highs. it's ferrari. ticker symbol race. the luxury automaker beating on third quarter earnings estimates, thanks to strong sales in the v-8 and v-12 models which were 9% and 8% higher
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respectively. the prancing horse also looking to enhance its brand through new apparel, entertainment offerings and luxury products which include an agreement with armani and a new restaurant in northern italy. shares of ferrari, better by 5% right now, $169.42. auto makers of course heavily reliant on robotics to put together their cars and assemble them and while many fear the robot will one day take their human jobs, automation is not a dirty word at one robotics plant in the swing state of pennsylvania. that's where connell mcshane is, in exton, pennsylvania ahead of tomorrow's election day there. hey, connell. connell: not a dirty word here at all. in fact, we have been invited in by this company, and we will bring you after the bell at the top of the hour from here. they say the humans collaborate with the robots. we will talk about that. we will also talk about the politics, not only one day ahead of this year's election day but one year ahead of the big one next year. obviously, pennsylvania is a big state. we have the local congresswoman,
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the democrat who flipped a red district into the blue. she will join us on the show. we will ask how she did that and also ask her about the chances for the democrats versus president trump next time around. it's the first in a series, three states, three days. we are in pennsylvania today, right after the show we are out to michigan for tomorrow's show, then on to wisconsin on wednesday. so good to be out on the campaign trail one year ahead of the big election. liz: i hope you are getting miles or are you driving? connell: of course. of course. liz: budget cutbacks. you never know. connell, thank you. safe journey. we will watch for you after the bell. topping even alibaba, with the closing bell ringing in about 15 and a half minutes, and the dow still up 86 points, folks, we are on track for an all-time record close. not just for the dow but the s&p and the nasdaq. it was the richest initial public offering in history when alibaba debuted in 2014. but now, there's a new contender
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hoping to take that historic spot. who is it and what does it have planned? we will tell you when "the claman countdown" continues.
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liz: three years, multiple false starts, now it is finally happening. saudi arabia finally going ahead with its initial public offering of its gigantic state-owned oil company, saudi aramco. to jackie deangelis live on the floor of the new york stock exchange. just cut to the chase. what do investors need to know ahead of the ipo? jackie: well, they want to know a lot ahead of the ipo, but the company really isn't telling them that much. that's what's really frustrating here. as you said, so many false starts, now firing that shot, saying we are going to take our company public, but nobody knows
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what the valuation's going to be. there's been so much speculation here. you have crown prince mohammad bin salman saying he wants to get a $2 trillion valuation but a lot of wall street analysts saying $1 trillion is really realistically what they can see here. but the company isn't saying when it's going to ipo, or how much of the company is going to be sold. right now, there's still a lot of speculation out there. i will say with respect to the valuation, if it's on the $2 trillion mark it would be twice that of microsoft, right. you think about this, and wonder if with oil prices where they are, that really makes sense anymore. but sources are telling reuters, as a matter of fact, that the company could offer about 1% to 2% of its shares, raise as much as $20 billion to $40 billion. a deal over $25 billion would make it historical, it would top the record-breaking ipo of alibaba in 2014. this is definitely one to watch for. but remember, the saudis are
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notoriously private and secretive. they don't really want to tell too much about the company to the public, yet they want to bring the company -- or the public money into this. that's a hard sell. but this will be done on the local stock exchange in riyadh. there were rumors it would be in london, rumors it could be in new york. doesn't seem to be the case. liz: oh, man. i'm telling you, it will be fascinating to watch, jackie. thank you very much. that's going to be a very big day. all right. with the closing bell ringing in eight minutes, we are closing in on history, folks. tell your friends, pick up the phone, call them, tell them to tune in to "the claman countdown" right now because the dow is about to hit its fifth all-time record of the year and guess what, the s&p and nasdaq are about to hit records, too. speaking of history, warren buffett's cash pile just grew to the tallest height in history for the company. $128 billion. today's "countdown" closer is ready to tell us where he says the oracle of omaha should start spending some of that cash.
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the companies he should buy. "the claman countdown" is coming right back with that. their medicare options...ere people go to learn about before they're on medicare. come on in. you're turning 65 soon? yep. and you're retiring at 67? that's the plan! well, you've come to the right place. it's also a great time to learn about an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company.
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♪. liz: i think the bulls are doing the macarena. we're four minutes away on the verge of history, when the closing bell rings for the dow, nasdaq, s&p, all-time records. dow transports on pace for highest close since april. it is time for buffett, what to do with his billions. do you ever get a little anxious when making a purchase like a burlington-northern or most recently? a pot of money. 32 billion. >> i get nervous when i'm not making an acquisition. liz: gets nervous when not spending billions. the "oracle of omaha," warren buffett back in april, was it april? a shareholder meeting, 2016 after making his last major
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purchase, airplane partsmaker, precision castparts. he bought the behemoth for $32 billion. he swallowed up chemical giant lubrizol for nine billion. before that he bought entire railroad burlington-northern, 34 billion. since the precision castparts purchase in 2015, he hasn't bag ad big one. with 28 billion in cash. today's "countdown" closer ready to bring out the checkbook, to sign buffett's name. you have idea what companies buffett should buy. manages the $17 billion at huntington private bank. john, go for it. what should buffett buy now with the money? >> well a couple of ideas for him. crown castle is one. that is a cell phone tower company, that would nicely fit into his portfolio. another one is utility, but in a growth area of the country, next
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era energy is also building into the solar and into the wind business. and then constellation brands would be a good fit with the coca-cola acquisition. those are three to buy. one glaring one we would add to, maybe not buy the company, but one global brand that our equity team noticed he doesn't own, boeing. boeing is a huge u.s. based global brand that almost seems to us to be a glaring hole in the "oracle of omaha" portfolio. those are ideas for you, liz. melissa: when you're talking about swallowing an entire company, i'm assuming you don't mean boeing. it has a market cap of 197 billion. he has 128 billion. outright purchases of companies, he is itching to do that. he hasn't been able to because he feels, that the valuations are way too rich right now. he is the kind kind of guy who runs in when everyone is running
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away. which one would fit the metric? >> right now constellation brands has had a stumble this year. they have given some tepid guidance on beer volumes. the company is headed different direction. earnings expected to accelerate. that is the first one that could come to our mind. energy, crown castle, utility company, they have been a beneficiary of lower interest rates. so that one, maybe he is looking for higher interest rates to move into some of those areas. liz: maybe. >> just to give thoughts there. liz: constellation brands, 32 billion, he could swallow that like this. 15 seconds left. records are on the way. would you buy here, keep adding to portfolios? >> yeah. keep adding to the portfolio. the risks that we've seen, the fed trade, economy earnings, they're all receding, liz. we keep incrementally buying here.
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we think that is the proper stance. liz: good to hear you. [closing bell rings] john augustine, thank you so much. drop the confetti, a new record close for the dow, the s&p and the nasdaq, they're all locking in new all-time highs. have a great day. that will do it for the "claman countdown". melissa: three-peat on wall street. strong corporate profits, first time the dow, s&p, nasdaq ended at new highs in nearly four months. the dow closing up 116 points. it is off the session highs. it is fifth record close of the year. s&p 500, nasdaq both in the green, closing new record highs for the second straight trading day. we're awaiting quarterly ruts from uber. we'll bring you the numbers in just a moment. at the white house, president trump about to depart for a campaign rally in kentucky. we'll bring you any comments from president, if he speaks with ror


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