tv Power Lunch CNBC July 19, 2019 2:00pm-3:00pm EDT
founder who is definitely invested and no question about that but selling this much in stock and debt before an ipo should give investors a pause. >> all right leslie, thanks very much leslie pick r er reporting fromh new york stock exchange. i'll be on "power lunch" that begins now. i'm melissa lee. the latest comments from the fed have investors scratching thei head about rate cuts ahead the president giving his two cents on the subject, too. plus, we works ceo cashing out over $700 million ahead of the company's big public debut is this a bad sign for the ipo later, a top gun reboot taking the internet by storm as "the lion king" live action movie hits the silver screen but if hollywood is out of fresh ideas, is the box office in the danger zone "power lunch" starts right now ♪ ♪
let's get a check on the market stocks higher to close the week. the s&p 500 and nasdaq are on track for the worst week and shares of boeing, the big dow winner is up 4%. we'll have much more on that story later on. >> melissa, we begin with confusion at the fed and the president throwing another haymaker, the new york fed president john williams with some market moving comments yesterday interpreted by some as signaling an aggressive rate cut. the new york fed later walked back those comments. the president tweeting today in part i like new york fed president john williams first statement much better than his second statement his first statement is 100% correct in that the fed raised too fast and too early steve liesman joining us now with fresh.
>> let's do this one by one. fresh fed speak first. >> thank you. >> speaking at the same conference where william spoke yesterday turned up that dust said moments ago the fed needs to follow through on what he said was a promise made to markets made in june. >> we didn't ease at the june meeting but signals were that we were highly likely to ease at the july meetingso now that's all been priced. >> the right amount of cut, not 50 the fed could revisit more cuts in the months ahead. that the item one. item two, he thought the controversial comments made by the new york fed president were more about academic research than about current economic policy in remarks that marcus took to a 50-day on the way, williams said research shows quote don't keep your power dry
that is michael vick moore quicd monetary than you otherwise might. not too long after the new york fed said the comments were academic and not about policy actions at the upcoming meeting. here are the fed probabilities with a 100% chance of a rate cut in july, and 37 for a 50 basis point cut. it's fallen a little bit since we made the scream and bullish remarks came out williams continued to raise concerns about a certain tone deafness and leaves markets to under 25 or 50 and some wonder should there be one at all >> the chance of the 50 actually went upright after williams made -- >> to 60. >> yeah. >> to 60 and then it's come back down after the new york fed comment and then it went down a little more. it's actually 34.5 now to be totally and ridiculously correct
on a friday in summer. somebody is making money on that half point. >> exactly steve, stay with us. we'll bring in ron ron, the markets want to believe there is a chance at 50. >> jay powell was talking about the diverging between u.s. yields and international yields and the need to narrow the gap in someways. i don't know if that's academic and we heard the vice chairman talking about the need for a larger cutter or seemed to hint that the market wasn't wrong and maybe getting out to their skis but clearly, they are in the process of cutting they are probably in the process of restarting some quantitative easing and the rest of the world is doing it, too the european central bank, everybody is cutting rates and stimulating. >> can i respond to that i think you'll agree you're right, powell talked about an auounce of prevention s
worth a pound of cure. do these guys think we are supposed to sit here and discern stuff you're saying for purposes of academic things versus stuff i'm supposed to incorporate into my outlook for interest rates, stock market and the economy. >> there should be an intersection to what is implemented in policy. there is a reason it's done. >> every word a fed person says, they know is taken to have some meaning. >> right. >> and you don't go and say i was only talking about academic research. >> listen, this takes me back to 1996 when allen green span. >> i knew you would remember that. >> used the comments in a speech we had a very vibrant argument about whether that was an academic comment or meant in someways to get the market's attention. i got a meeting after that comment.
i went in to ask him and i assume it's safe to talk about it now anything the fed chairman says is vetted by staff they didn't know what the magnitude of the impact would be but expected there would be one. when you look at these comments, they understand markets will respond and start to price in different things based on comments particularly that a fed chair makes. >> we spoke to charlie evans in chicago. >> the most important fed speech there was. >> it was. it actually was. are they talking too much? >> i will never say they are. >> confusing. >> let me -- let me tell you my metric for is the fed talking too much is it hard for the market to understand what they are saying? when you go into a meeting with the market priced fully for what the fed eventually does, somehow a mid the bullard saying this
and george saying that and evans saying this, the market gets it right. so i think that's okay it's the market getting it wrong that would cause me to change my mind unless there say meaningful reason for the surprise. >> in the days, the stuff was leaked because no one spoke, not even vulgar and in the green span days you had more openness and bernanke's day, everyone was talking and not everyone fully vetted all the time. the chair was. that has continued on now. i think to the extent that a chair no longer corrals the entire federal reserve into following a particular script or at least not -- >> or there is some confusion that the chair is not the final word. >> correct. >> if that were to happen and the chair were to speak and someone were to say something and the market goes that direction, that would be a problem. >> yeah. >> by the way, there is more fed speak today. >> really important. >> this is the final fed speak before the quiet period.
>> he's the last word. >> he is the last word. >> maybe not the most important word but the last. >> to break it down, let's expect they will cut a quarter point at the end of jaul auly a talk about the options. >> is it next week >> july 30th and 31st. >> a week from. >> okay. >> all right. >> steve, thanks stick around the fed's fumble feeling uncertainty among investors but the world's biggest money manager said people are still not invested enough in this record-breaking market and it's headed higher. >> the markets are going to trend higher i do believe if we want to frame where the market will be for the next ten years, i would be betting on the rest of the world will catch up somewhat to the u.s., when you see big shifts. so much of the market gains have been u.s., which for good reason we deserve it. >> we deserve it and have better companies, we deserve it because we did more fiscal policy than other countries. >> joining the discussion is michelle mckinnon, good to have
you with us here at the table. do you find that amongst your clients people are under invested >> absolutely. i actually see the majority of my clients are still bearish and when i look at last week where we saw money market fun flows positive $27 billion and at the start of this year, we saw 140 billion fun flows out of equity funds. to me that shows an investor that is pretty bearish still. >> that seems like what we saw at the last part of last year did a doozy because you had wall street tripping over themselves to lower the targets for the year and here we are pretty much either at or near their targets. >> the fed can pivot a lot faster they were all caught in the middle of a come pressed bear market with carnage in credit or equities we saw pretty beaten up sectors in the fourth. they had to get reoriented rather quickly
a lot of managers trailed the market to a certain extent trying to play catch up. it was the fed's pivot that caught everyone by surprise. we got three cuts. >> never seen anything -- >> i would say '95, '97 and '98 were similar. >> michelle, where are you adding money and withdrawing it if at all? >> i'm adding money to the foreign markets like larry said regarding they will catch up i completely agree with that you've got european markets trading at lower valuations so i love that space. commodities have definitely fallen behind the past ten years. there is a chance inflation will pick up. small and mid caps and you're laughing like will we ever see inflation again? i think we eventually we will. >> the only reason i think that is you have structural inflation and deflation. >> when you think of agriculture prices and the population is growing and we have to feed the population
places i would consider to take back from is long-term bonds i think long-term treasuries, 20, 30 years are probably over priced here. >> in terms of equities, you said you like health care specifically and european stocks. >> yes. >> you're going for the laggard kind of mentality with markets at record high. >> yeah, i always like the under dog. i'm a slave to looking at valuations i like the dividend with the health care space, i look at the generational kind of fun flows, the generational cash flows. let's face it, the silver economy, those that are in their 60s and 70s. >> me? [ laughter ] >> i did not look at you. >> that was the nicest way ron and i had ever been described. >> the silver economy. >> there is about 73 million baby boomers in this country and the united states says in 2027 they will spend $6 trillion on health care. so how could you not be bullish on health care long term >> unless you think there are political wins that have buffeted health care year to
date. >> silver men, please, i'm asking a question. [ laughter ] >> go ahead. answer the question. >> in terms of it's gotten some head winds because the medicare for all. i think that's over blown. >> health care is what, up 6%, 7% year to date. >> yes, about 8% cvs i did note is down 12% so if you want to pick up an underdog, that might be the place to play. >> i'm long metimucil. >> you guys laugh. >> coming out in september, about longevity. it's going to blow people's minds. there is a harvard scientist working on very, very cutting-edge stuff i think will blow people's minds. >> silver is not silver anymore. >> silver may not be silver. 100 is the new 30. >> okay. >> on that hopeful note, thank you ron and michelle. oil spiking now.
let's get to dom chu. >> wti $55.80 a lottributed to a state-run television the revolutionary guard there has claimed to have captured a british oil tanker off the straight of. we have a statement from the company that runs this particular tanker on their website now. they issued a statement saying northern marine management can confirm that an approximate pitpit bst uk registered vessel was approached by unidentified small crafts and a helicopter during transit of the straight of hormuz while the vessel was in international waters we're presently unable to contact that vessel headed north
toward iran. that is the owner but the reason we're seeing a move higher in crude prices is because of the initial reports and a confirmation from the company that runs that particular cruiser and carrier, so we'll bring more details as we know more but that's the reason we're seeing, tyler, melissa, seeing crude prices going up. >> that has been for several days and yesterday on news that we had shot down disputed by the iranians and shot down an iranian drone. thank you. coming up, boeing giving the dow a lift after taking a $5 billion hit over the 737 max, is this relief rally for real the trading nation team will weigh in also, check out these hot wheels, the new corvette looks pretty cool. here it comes. we can't see it well there but there it comes to some die-hard vet fans, this is no -- this is not fun they don't like it we'll tell you why when "power lunch" returns
phillip joins us to now. >> the purest may be saying this is not a vet because the engine is not in the front. i saw it last night and i think this new vet will do well in terms of sales last night they show it to us in california this new vet is significant because it's the first time they have moved the engine behind the driver that's why they are calling it a mid engine chevy corvette and the price point is under $60,000, which is why the president of gm thinks this vet will attract a lot of buyers. >> when you look at some of the traditional muscle cars, you know, reaching price points over $70,000, we're going to bring a mid engine exotic super car corvette into the market for under $60,000. i think it changes all the dynamics of who buys what and when they buy it. >> as for general motors, building the new vet they are starting production and added a
second shift at the bowling green, kentucky plant where they build it 400 jobs going in there and this is a nice shot in the arm as they prepare to release earnings in a couple weeks. there is no doubt it has a long and loyal baste of customers that's true. a lot of those were there last night, melissa and we heard from them, many of them saying it's a bit of an adjustment but boy, that is a sweet looking car. i do think they will do well. >> thank you, phil lebeau in california will that now corvette be a game changer for gm and the broader auto industry? ivan is senior manager of inside edmonds and michael ward is an auto analyst with c port global security as a buy rating on gm and $48 price target, ivan, why are some people critical of this particular corvette? is it simply that it has a mid engine and they don't like that or it looks like competitors in
the space? >> i think that you hit on the head the fact it's starting to look like everything else. when i say everything else, exotic cars, we're talking about ferraris and things that cost well 3, 4, five times the price but in that regard, at least the performance can back it up and admittedly from a value spro pe perspective, it's the best bang for your buck and hitting the nail on the head with that messaging. >> michael, is this going to move the needle for chevrolet and extension for general motors or are the sales of corvette so relatively tiny and insignificant, i mean, that's maybe too strong a word that it won't make a difference? >> it is a small portion i think the excitement to me doesn't come financially you're talking about a product that maybe generates $3 billion in revenue for general motors. north america you have 100, $150 million revenue base
the excitement comes for what it helps the employees, the dealers, the excitement generated within the organization pushing the envelope on technology and per fo performance and creates a halo and that's the more important part. >> i understand that, michael. it seems like a high price to pay to generate excitement amongst your employees and dealers. >> well, not really. if you look at general motors from a standpoint, the car by itself if it's $3 million in revenue, it will make money. if you think about advertising budgets they have within their organizations, seven, eight, $10 billion a year, if you can create that much excitement with a brand, i think it's very important. in addition to what you learn from material, engineering, performance, and everything else that goadses along with it, eve general motors employee will look at that product with pride. >> when you take a classic car like the corvette and introduce
a new version of it, you'll have people that love it and enthusiasts who hate it so i'm wondering if this response to the new corvette is anything like you've seen before when it comes to taking an old car, refurbishing it, updating and putting it back in the public. >> you're right in the sense that you can almost put anything out there and you'll get mixed reactions. then again, on this one, you really have very polarizing and people who are so die-hard old school manuel transmission, rear wheel drive front engine but that segment is dying off. they are trying to take it forward with the new approach. the mid engine like exotics but the folks they are trying to grav da grave tate towards will look at this like a viable product you get the bmw die-hard
fanatics, that will be tougher when it's a value proposition play, it takes away from the lure and luster of the luxury. it will be interesting to see the reaction when we see the trading data what people are buying and putting into it and what the trim levels that come out and how much they will pay when they release the higher ends, zo 1 and zo 6. >> gentlemen, thank you very much we appreciate your time. have a good weekend. >> thank you, you, too. coming up, boeing taking a $5 billion hit over the 737 max but the stock is soaring is the rally over done and china's economic growth falling to 30-year lows but don't stju blame the trade war. you need to hear this. power lunch will be right back you blaze trails... but you have the power to do so much more. let's not just develop apps, let's develop apps that help save lives. let's make open source software the standard. let's create new plastics that are highly recyclable. it's going to take input from everyone.
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don't wait another minute, call now to purchase your american eagle coins at cost for the amazing price on your screen. welcome back to "power lunch. boeing soaring today after the aerospace company reported a $5 billion after tax hit tied to the groundings of the 737 max. with earnings next week, what should you expect next bill of blue line futures and steve, steve, why don't you weigh in the street is celebrating having some kind of number on this potential extra expense related
to the 737 max where does that leave you with the fundamentals will drive the stock next? >> in the allocation fund, we choose stocks with the approach that you look at the name through the lens looks good from profitabilityerspective and ana revisions and short interest the 737 is an obstacle you don't capture in the process but what was so important about the number today, even though it was higher than expected was that it put some ring fence around the scope of the problem and gave some indication about timing with deliveries hopefully reporting in q 4 as you look through that, assuming there is no surprise on the earnings call, with the proannouncement you hope there wouldn't be, you look forward to 2020, 2022 period, cash flows look good. names obviously sold off quite a bit and it becomes more attractive so this is a real good first step. >> bill, i mean, even though it
is well off its highs, it was that kind of sudden rush lower in the stock from very high levels once we got this news about the crashes. it actually has acted pretty well so how do you see the chart? >> you talk about a start that keeps on and look at trend line back to '16 and trade war. the 737 max and airbus combination held the trend line. the trend line defined the up move into the first half of 2017 before breaking out. so not only did it hold that in december, it held 300, the psychological level and again recently there is good momentum it's back above the 50 in the moving average. 420 is the target and there is head winds at 390 and 400 but 420 is my target and this momentum looks bullish right now. >> all right well, we'll see if it can get there through earnings season. bill and steve, thank you very much for more "trading nation" head to our website and follow us on twitter.
melissa, back to you. >> thank you. ahead is china's economy running out of steam an of ed says china has more to worry about than the trade war and the ceo of we worth cashing out $700 million ahead of the company's ipo. should investors be worried? it's flash back friday in case you lost that loving feeling, an 80s classic is getting a long awaited sequel. is hollywood entering the box office danger zone "power lunch" will be right back. >> now the latest from trading nati nation.cnbc.c nation.cnbc.com. here is something to consider, buy part of the position you would like to have so if the stock goes down, you have an opportunity to add additional shares at a lower price and improve your overall cost basis i'm randy frederick and schwab is the better place for traders.
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iranian ground on tuesday. nbc news has not confirmed the video's validity president trump marking the 50th anniversary at an oval meeting office with buzz and neil armstro armstrong. they were briefed on the trump administration's plans to send astronauts back to the moon and mars. a heat warning from noon today until 8:00 p.m. on sunday. they say it's ready for the heat wave. >> we are confident in the system we spend all year preparing for periods like this. we've invested $1.5 billion and maintain the system. we augment staffing. >> that c nbc news update at this hour. back to you guys. >> meg terrell oil spiking on headlines involving iran and a u.k. tanker we are tracking the market
action. >> not just the oil market but stocks responding. the s&p 500 dipped into negative territory. iran seized a u.k. tanker stocks were higher 50 points with the s&p 500 and lower by around eight points the dow jones holding on positive territory but off the highs. take a look at the reaction. you'll see we're around session highs, crude 62.54 and again, wti crude at $55.67 but certainly a developing story given the rise in tensions that we have been seeing between the united states and iran back to you guys. >> thank you very much see see. wall stre"wall street journs it's hitting the skids because of investments and a slump in the working age population that and a factors contributed to china hitting a slowdown
sooner than it and neighboring countries. joining me is the writer of that op ed piece. is it their economic model state investment that is just not working, pushing on a string as the saying goes. >> there is a couple of factors here china is following a path that other asian countries pursued before it. if you look at the closest peer group, it would be taiwan, south korea and japan and we know that all those countries, after they opened up to the outside world, expanded trade sector invited foreign investment, they grew rapidly for several decades. you had the assistance of high rates of literacy and slowed down so so far, so good china is more or less following the model. china seems to be hitting it sooner you mentioned that they are hitting a 30-year low of growth around 6% that we just got that news a few days ago.
you might say 6% is good compared to 2% of the united states first of all, the numbers almost certainly over stated. there is a lot of problems with chinese data and growing 4 to 5% and the other problem is it's happening at a level of income that is still lower than when these other countries slowed down and that does seem to be evidence that china is facing structural head winds of its own which are probably at least in part if not mostly due to the very dominant role the government still plays in its c economy. >> has the state invested less well than other economies, whether taiwan or south korea or vietnam. >> hard to say if they invested less well or more. total investment in china is extremely high like 40 to 50% of gdp and half is from infa stuk stur and housing both are higher than the peer group were amade of lot of sense to invest more when the country was poor people had tiny homes to live in and no good roads.
that's not the case any longer most of the population lives in good housing and they build railroads and highways, there is remote areas with not as much benefit. the best numbers we can look at carefully scrubbed says productivity in china is they. >> also just holding on to control of enterprises, state-owned enterprises so i'm wondering if the extrapolation from these examples is if china had relink wigrewing -- relinqu control it would have kept up the pace better. >> for example, studies that look at the sectors where state-owned enterprises dominate versus private sector enterprise, find the growth where they dominate but the current administration is committed to the maintaining the dominant state role in sectors
like not just like traditional core sectors like tell la communications but steel there is a huge capacity and globally and a lot of that is because so many steel companies are state owned and not there to make money for shareholders or be efficient they are there to property up the government and be national and local champions. >> let's connect the dots, greg. given the u.s. china trade war, does that further dent china's growth and lend credence to the idea the u.s. does have an upper hand in the talks. >> the trade war is coming at a bad time for a couple reasons. first of all, the sector where private firms dominate the most is the export sector that's no surprise these are companies that must compete on a daily basis at a global level they are efficient and rapid to adopt technology and steal it but there you are. a trade war automatically hurts that part of the economy that is most likely to be where the private sector thrives and advances efficiency for anybody. the second reason it's a problem
is when the economy gets set back on its heels by the trade war, how does a central government respond with stimulus. what form does that come in? it tells banks to lend more and those state-owned banks tend to loan to state-owned companies and tell local governments, hey, go and invest more in infrastructure it is the dominant role of the state sector probably the best thing for china in the long run would be to, you know, bite it's tongue and resist the temptation to throw more stimulus at the economy and listen to advice it's getting from the united states hey, dial back the role of enterpris enterprises, not only will that lesson tensions for the americans complaining about mistreatment, you might actually grow faster in the long run. >> greg, thank you very much to the bond market, rick santelli is tracking the action. hi, rick. >> hi, melissa lee a lot of tug-of-war going on as we head into the weekend
of course, the tanker story should be a flight to safety story but look at it with two-year note yields they pop thank mr. bullard for that his comments continuing to walk if not run back fed president john williams comments of his research speech yesterday, maybe 25 basis points is in the garden and feds are going to go and most people think it should be 25 but really it's an issue of how much an easy cycle we may begin and had the same jump. but it didn't jump as high it's not up nearly as much remember, to your note yesterday on those comments went down to 176, we're at 181 now and ten-year note yields went down to 202 we're at 204 the dollar index has really held up well. nice bounce today up a little less than a half cent on the day and on the week. tyler, back to you. >> rick, thank you very much. we works co-founder cashing out of hundreds of millions of dollars worth of his company
what does that mean in the context of the potential ipo the man that says it's destined to be a flop stay with us when it comes to your customers' expectations, there's one thing you can be sure of. they're changing by the nanosecond. that's why cognizant created a unique engineering approach to design and build new digital products. learn how cognizant softvision designs experiences and engineers outcomes. ♪ cool. ♪
we work is getting ready for the big ipo pitch, the company's ceo and co-founder is reportedly cashing out more than $700 million from the unicorn is the move a warning sign for this ipo with us now is jeffrey, dean for leadership studies at the yale school of management and the business editor for axios. in this obviously comes on the heels of we work also seeking money in the debt market, jeff, so it looks bad but how bad do you think it really is >> i think it looks s ominous. here we are the last month
before mad magazine goes out of production next month, the mascot had the watch word what me worry and we look at his perhaps his cousin adam newman, the founder would be, you know, what we worry. we got lots to worry about we works and we have problems with the concept. we have problems with the basically how the business model is working and certainly big problems with the ceo himself. he's a tremendous showman, but so is mark zuckerberg but has the technology at facebook and i've been critical of the leadership style and elon musk and there is incredible technology here, what is there? just bean bag furniture and some fixed leases on space that will be a challenge and financial downturn i don't get it there is plenty of competitive movement out there in this spear. >> dan, what's the truth he may sell up to $700 million
we don't know the exact number to be sure. >> so it's -- >> but he's actually got a lot more, he's got options, loans against stocks so what is his stake now? >> so here is the stake. so for starters, new man at this moment is the largest single shareholder in we work more than soft bank. more than anybody else the 700 million sited by the "wall street journal" is existing sales and the last was in october 2017. so it's not that he is cashing out. he got cash about 300 million with sales of equity, about 400 million was loans against the value of his stock, some of which he used to buy buildings leased out to we work. it's also our reporting today that he does not plan to sell into the ipo itself. he won't sell shares in the ipo so his number will stay fixed. >> how odorous is it when they buy buildings and take the leases in the buildings he owns?
in a way that smells as fish in to me sz getting out of an ipo. >> chesapeake energy was out there to buy a new gas field, by incredibly coincidence his family two weeks earlier had bought that priceless property it seems suspicious and today, you're the expert on this space but i don't know i'm a schoolteacher. i look at the arrhythmia ti they looked at the puffed up evaluation of $47 billion. $10 billion is from the son. i don't get how you say he's a larger owner than that he hasn't buput that kind of capital in. >> he hasn't put the capital but two things the day they started he was 100% it's the company but adam is essentially selling the shares
off. >> it's puffed up evaluation it's noting really at risk, though this is $47 billion, major competitor is in far more cities than they are worth $2 billion iwg is worth $2 billion and they are in like 110 cities these guys -- 110 countries with all the promotion and they are in 32 countries. >> with more exposure within those countries. can i say on the company or building thing, there is two ways to look at this you can certainly look at self-dealing but important to note, newman has a very, very small number of buildings compared to the number of buildings we work in and argument and take this for what it's worth the argument is those were buildings purchased very early, five, six years ago made in part because we work was having a hard time getting leases because landlords didn't view them as a stable tenant. >> i think tyler is right. if it looks like, smells like cheating and you're saying it's a little bit of cheating and not
statement from the national security council on those iran headlines, specifically the taking of a british tanker in the strait of hormuz eamon. >> tyler, we're getting the latest from the national security council at the white house. here is the statement, they're saying we are aware of reports that iranian forces seized a british oil tanker, this is the second time in just over a week the uk has been the target of escalatory violence from the iranian regime the u.s. will continue to work with our allies and partners to defend our security and interests against iran's malign behavior so this incident, tyler, would appear to be another escalation in a series of flash points that we've seen between the west and iran in the persian gulf over the issue of oil and transit
rights and who is allowed to be where at what time in the persian gulf. >> eamon, thank you very much. eamon javers following the story for us. coming up, a special flashback friday edition of the tasting menu stay tuned you should be mad at airports. excuse me, where is gate 87? you should be mad at non-seasoned travelers. and they took my toothpaste away. and you should be mad at people who take unnecessary risks. how dare you, he's my emotional support snake. but you're not mad, because you have e*trade, whose tech helps you understand the risk and reward potential on an options trade it's a paste. it's not liquid or a gel. and even explore what-if scenarios. where's gate 87? don't get mad. get e*trade and start trading today. people know aflac. aflac! but not when to use it. do i use aflac when the kids get slime in the plumbing? no. that's home owner's insurance. slime in my motorcycle. no. that's motorcycle insurance.
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we're watching sketchers shares hitting the ground running sneaker trends they're constantly evolving, they've gotten lighter, slimmer, you name it, but sketchers seems to thrive by keeping the same style since 1993 >> wow >> so they don't change with the times. >> yeah. retro look is in. >> is in, i go he is. >> i guess so. >> 60% of sales are overseas. disney feeling the love from its newly released "lion king" rema remake the movie features beyoncé, john oliver and seth rogen. it is expected to take in $150 million in ticket sales this weekend. it is animated but not in the way the original "lion king" was animated these are computers generated animals and very life like >> i wonder, i mean, can't they think of anything new? >> i don't know. everything -- >> everything is a remake. everything is a remake. >> and speaking of --
>> and speaking of, yes, more than 30 years since "top gun" premiered, tom cruise still feels the need for speed. >> the end is inevitable, maverick your kind is ready for extinction. >> maybe so, sir, but not today. >> apparently a lot of people watched this and got really excited, our executive producer for one is really excited. the actor unveiled the trailer at a comic con for a top gun secret val keimer will be joining cruise as ice man. the movie is scheduled to debut in june of 2020. >> i wonder if kelly mcgillis will reprise her role. >> these guys come back and they are like teachers or something are they the grandparents of the people that are now flying >> it was an iconic '80s music >> enough people will watch it i'm sure. all right. amc shaking off -- what are we
doing here -- any box office blues today. the stock having one of its best days ever. let's go to julian boorstin in l.a. >> amc entertainment shares soaring firing today, up 9%, up as much as 13% earlier on credit suisse with an outperform saying the selloff is over redundant, this despite the domestic box office dee lining 9% so far this year predicting 8% gains in the third quarter thanks to the "lion king" as well as "once upon a time in hollywood" that opens next week. imax and cinemark shares also moving higher on optimism in the sector. >> julia boorstin in los angeles. we do want to take a check on the markets what is standing out to me at this point on top of watching the markets close out what has been a rough week overall, right now we are off fractionally on the s&p 500 and nasdaq, the dow
is up just by 18 points. take a look at shares of netflix, it had that steep disappointment when it came to adding subscribers, 2.7 million versus the 5 million expected and the stock has not been able to bounce off that low at all. it is down a whopping 14.7% for the week and this, of course, comes ahead of very heavy slate of earnings next week, particularly in the tech sector. so you have to wonder whether or not this is setting up for more disappointment ahead or if this is just purely an idiosyncratic story. >> can we take a look at oil which in light of the apparent seizing of a british tanker in the strait of hormuz by iran was moving earlier today and i wonder whether that tension is bleeding over into the equity markets a little bit and pulling some of the gusto out of the market there is west texan up for the day but as you see that market sort of closing there, but it's all over the place there's west texas down at noon. of course, everybody will be watching that story about the
british tanker being seized in the strait of hormuz. >> oil stocks catching a little bit of a bid as we head into the final hour of trade on these headlines, with the energy sector up 0.7 of a percent thank you for watching "power lunch." >> "closing bell" starts right now. good afternoon, welcome to the "closing bell" i'm wilfred frost, at the boeing post today, soorg 4.5% after that $5 billion charge was announced last yesterday on "closing bell." we have much more on that story and everything you need to know about the broader markets which are trading lower with 59 minutes left of trade. and i'm courtney reagan in today for sara eisen let's get into what's driving the action today industrials are leading on the back of boeing's real that wilfred mentioned there and reports that iran captured a british oil tanker is moving the oil market, as well as uncertainty over the fed's interest rate decision in less than two weeks, thos