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tv   Closing Bell  CNBC  July 23, 2019 3:00pm-5:00pm EDT

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"bachelorette" seasons. >> thank you. quick check on the markets before we go, dow just this last hour or so has been at session highs and reported trip that kayla told you a u.s. delegation heading to china. >> 2/3 of a point higher on industrials. that will do it for "power lunch." >> thanks for tuning in. "closing bell" starts right now. tyler loves "the batchelor." who knew that. some of the coca-cola posts, that stock up 6.6% t leads the dow. more on why including comments from sara's exclusive interview with their british ceo coming up as well as everything you need to know as an investor with 59 minutes left to high, stocks at session high. >> i'm sara eisen. right to what's driving the action in the markets. face-to-face trade talks between the u.s. and china expected to take place monday. that was a boost earnings recession seems unlikely after today's strong numbers and the s&p 500 breaking
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that key 3000 level again. joining us for the entire hour nancy tangler from tangler wealth management, welcome, nancy. >> thank you, sara. >> we are seeing a nice rally on wall street. what are you doing right now what are you buying? >> still focused on the consumer the china news is good but i don't expect us to get a deal soon >> u.s. consumer. >> yes, thank you. although china did pretty well according to coke. yeah, great interview by the way. >> thank you >> mcdonald's, home depot, starbucks, those are some of the names we like in the consumer space as well as coke, one of our largest holdings. >> who do you think likes "the bachelor" more >> i didn't know tyler was a fan. i'm a super fan. >> anyway -- >> lucky we're getting that show on cnbc. they're one of the best couples. the new show. >> oh, they're from "the
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bachelor". >> i'm lost. >> kayla tausche and seema mody has united technologies and josh lipton has details on potential app de apple deal in the works and diana olick. kayla, let's start with you. >> wilf, they're expected to negotiate since the g20 with sources saying the talks will take place between the start of congressional recess this friday and china's august 1st holiday some reports say u.s. officials will leave monday. the talks are looking for compromise on two front, president trump wants china to buy agricultural products in exchange for relaxing the business ban for huawei. longer term the white house will dial back tariffs if china codifies this deal into law. now, recently white house officials have signaled even though president trump is inclined toward a deal, that latter item getting china to
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make this a law and legally binding could take several months and they're trying now to shift the focus of the conversation here in washington to the new nafta for the next couple of months, wilf >> kayla, thank you so much. either way it helped markets get to session highs in the final hour, just off them, up 170 points on the dow. earnings and one of today's big winners, the big winner, coca-cola and, sara, has all the highlights >> coke surprised wall street with more growth than expected 6% or gangic revenue growth. very strong. on a mix considered healthy. higher volume and pricing driving that growth. coke saw strength around the world especially in asia why? well, they're doing better marketing like the new "stranger things" new coke promotion they have andinnovahions. >> multiple years of good growth
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rates and multiyear growth and a sign that the transformation of our business being more consumer centric, more innovation and marketing led and being faster and more nimble with our bottling partners on executing is really bringing together increased momentum across the business system. >> some other takeaways from the quarter. coke zero sugar still growing double digit, seventh quarter in a row. currencies are painful nine points off the earnings per share but executives say that is going to look better in the coming quarters. and for you, wilfred, costa coffee ref ready to drink. it's been touted the executives, james quincey is excited about how they have tested out in early markets an they look to expand that new innovation that's a big part of the new growth story at coke and also at rival pepsi. pepsi really seeing the story
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play out in snacks but both have new energetic centres driving faster change, increased marketing and leading to better results in the market and in the overall performance of the companies. >> and in terms of this flexibility that they're showing now, i mean, how stark is that to pepsi or is that something that they're all -- >> what do you mean flex jblt. >> the ability to adjust rather than being in mammoth goliath company -- >> they made a huge change that was started but executed by james quincey spinning offer bottlers which made them faster and will ultimately make them more profitable so they've sort of gone through this transition year and are now coming out the other side and starting to see the benefits pay off and as a result, that's why you hear quincy talk about execution and being faster to respond to the consumer environment in terms of new innovations and ramp up marketing and sort of hearing the same message out of ramon
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lagart out of pepsi. why do you like coke over pepsi? >> quincy has proven a great ceo can take a moribund brand and re-energize it he got the government off his back for high sugar content. it was a brilliant move and seeing it come through in the organic growth. >> up 6.3%, leads the dow. united technologies also beating on the top and bottom lines and seema mody has that for us. >> less than a year after their purchase of rockwell they're posting better than expected results. aerospace after-market benefiting from the grounding of the 737 max jets analysts pointing to higher demand for maintenance components and repairs for older planes executives say united tech is on track to break up the company
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next year and defended its plan to merge with defense contractor raytheon despite pushback and ago advice investor dan lobe. >> another big dow winner. biogen higher after reporting earnings before the bell and meg tirrell has the story? it was a guidance raise driven by outperformance of its key multiple slower rose cyst drug franchise. after a major alzheimer's trial failure in march, investors have been waiting for details on a new direction, especially potential m & a. though some like jeffrey holtz says it may be in the cards and wasn't all rosey one of its newest drugs missed numbers and sent ionis lower. >> switching gears from earnings to two deal stories in the tech world. let's start with josh lipton on
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reports of an apple/intel deal what do we know? >> apple is reportedly in talks to buy intel's smartphone modem chip business. this deal is valued at $1 billion or more for patents and staff and checked in with ben of creative strategies and giving the company the necessary patent, i.p. and talent to help develop its own 5g modem instead of relying on a single supplier and apple building its own modem could be bad news for qualcomm even if apple could scale a ag modem business in-house it's a long-term threat taking perhaps as long as five years to really build out. guys, back to you. >> i was going to say, josh, for 1 billion it doesn't seem like there they can be acquiring much immediately. how much do they spend on these types of chips annually. >> so, interesting we talk about 1 billion. apple doesn't do big acquisitions often its biggest ever 3 billion for
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beats. 1 billion is a pretty big acquisition. apple is looking for if these are accurate, a ag modem get it off the key supplier and they have a history of bad blood. interesting when you think about intel they told us in april they'll continue pursuing 5g technology but get out of the 5g smartphone modem business because they didn't see a pathway to profitability if apple pulls the trigger on this, it's because they see some value in those pallet tents but must figure too once we bring that in-house through r&d and integrations maybe we can mitigate losses. >> you own apple and intel, i believe. >> i do. >> do you like the soft of strategic idea behind the deal. >> i do. i think tim cook has been consistently underestimated by the street and analysts. if it doesn't work it doesn't matter because they have 113 billion schroeder in cash. >> you're trimming your apple.
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>> on strength, yeah it's almost 5% of our portfolio so that's -- i mean we're forced to do that as prudent portfolio managers but, yeah. >> but nothing -- you're not worried about anything coming up in the quarter just purely size and the run-up -- >> i am never not worried. but i own the stock for the next three to knife years so there are low expectations for this quarter. though the stock is pricing in a pretty healthy expectation overall. still off its highs at 220 earlier this year. >> okay. josh, thanks for that. now amazon making a deal of its own teaming up with real estate brokerage realogy on a new partnership. diana. >> shares are soaring on at announcement the partnership uses amazon's powerful website to drive buyers to realogy owned brokerage like coldwell banker. buyers go through amazon's turnkey portal, connect with a realogy agent and when they close on the house amazon home services gives them up to $5,000
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worth of free services like painting or cleaning or products like the ring doorbell so amazon grows its smarthome business in a head-to-head battle with google back to you guys >> realogy, there we go, not realologj. >> amazon steps into the space and everybody gets scared. >> very scared or excited s it a step into amazon actually listing homes? i asked the realogy ceo whether he thought you would see realogy listings on amazon and he said we have not had that discussion. amazon said not now but didn't say anything about the future so the question is, you know, with everything else, will homes be listed on amazon i think that's the excitement around this. >> diana, thank you very much. nancy, you owned both of the last deal players but you don't own both of these. one. >> amazon, we personally don't own it for clients
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the valuation is rich. it's brilliant for the millennial buyer i just don't think millennial buyers are buying a lot of homes. i think they will. i think it's exciting. i love the idea of walking into a new home, smart home with fully, you know, stocked issues from items from amazon so i think it's exciting and interesting. i just don't know when you'll monetize it if you're realogy. >> okay, nancy, thank you so much of course, with us for the full first hour. snapchat has been the darling of wall street all year long up 150% but will that continue we'll get results from parent company snap along with chipotle, visa, texas instruments and more after the bell. plus, teen retailer american eagle plans to expand. more on that. our data tracker, the philly fed nonmanufacturing index came in 21.4 in july up from a reading of 8.2 in june and june existing home sales did fall 1.7% missing estimates of a drop
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of 0.6%. "closing bell" will be right back dow up 177
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0.6% on the dow. let's send it over to mike for today's market dashboard. >> hello, wilf we'll start with one word, plastics or plastic. we'll talk about the credit card stocks actually. we can rebuild him that's next. that's about spare parts of a sort and then falling with style. a little bit of slippage below the surface of the market. we'll give you numbers even a run to the daily highs and retired investor on a pension, a look at why pension underfunding is driving financial markets right now. so let's look at the plastics. these are the credit card issuer stocks we'll hear from visa with earnings a consensus glamour stock. everyone loves it because of use of cards and issuers have done very well relative to other financials, discover financial right here, american express and si sinchrony. regional banks suffering in
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comparison consumer finances look okay. wages and spending look fine it's not helping the retailer. it's not helping the core banks but issuers are doing well i did want to look at a long-term chart of american express to put it in a broader context. over 30 years these are the starts of recessions right here so you always had american express topping and falling ahead of a recession, sometimes not by more than a few months but it always happens so that -- american express at an all-time peak is a little inlation against imminent recession fears, guys. >> i'm trying to figure out the rest -- "the graduate" is the first quote. i'm trying to figure -- >> i bet nancy could help. one of them is a tv show, not a movie. >> all right >> oh, plastics. >> plastics is "the graduate." >> sorry i'm behind always one step. >> you have 43 minutes >> we'll look at the other themes in just a moment. but what sort of message are you getting from the credit card stocks. >> i own visa and american
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express. they're "pretty woman" rich in terms of valuation but you can't find the trend we are moving away from cash and checks obviously to cards and it's interesting that the company didn't spend a lot of time on -- hasn't spent a lot of time on libra. that will be interesting to hear about the call to see if they talk about it. >> we'll wait for results after the bell boris johnson officially winning the race and will take over as prime minister tomorrow. here's what he said following the announcement of the results. >> i say to all the doubters, dude, we are going to energize the country. we're going to get brexit done on october 3 9/and take advantage of all opportunities it will bring in a new spirit of can do >> it was a pretty good acronym, i have to say. what does it mean for the markets and brexit. >> what does it mean for brexit, sara it's true to say the new prime minister has promised to leave on october 31st come what may so
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the chance of a no deal brexit has risen but what has not changed is the makeup of parliament where the math remains against a no deal brexit importantly, parliament goes into summer recess on thursday, giving johnson six weeks or so of breathing space if over the summer johnson miraculously improves the deal, the eu is offering, perhaps that brexit deal is passed by parliament in the fall if not, if he really is set on leaving without a deal on october 31st it is likely the parliamentary math will need to change, i.e., a general election whether he calls for it or it is forced upon him. now, sterling down a little. much weaker in recent months as it became clear theresa may would be leaving and boris johnson would be arriving, that fact confirmed earlier today. >> i feel like expectations are lower now that he is prime minister because he was a brexiteer and threatened to leave october 31st deal or no deal that's not something we heard as
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strongly from prime minister may so the fact that it's a hard brexit is filly on the table, right? >> 100%. but that had already been priced in in recent months why sterling only fell 0. % it's fractionally above recent lows briefly below 124 but at two-year lows and paints the picture that at the moment -- >> i don't know. it could go down to parity if they -- >> which is why it's highlighted, the market's base case expectation is not no deal. the chance of no deal is higher than it has been because a prime minister with his rhetoric says it's possible and the math means it hasn't priced that in yet i don't think he'll see a real crunch point in the next few days then parliament goes into recess until september, so he's got six weeks to travel around europe, try and get movement on the deal if it he doesn't when he comes back in september there's going to be a lot of pressure on him. >> the lib or unite, defeat,
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energize, dude. td ameritrade surprising the street announcing tim hockey will leave in february of 2020 we'll talk to him in a first on cnbc interview. citigroup adjusting numbers on tesla that and other stocks coming up. why go with anybody else? we know their rates are good, we know that they're always going to take care of us. it was an instant savings and i should have changed a long time ago. we're the tenney's and we're usaa members for life. call usaa to start saving on insurance today.
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welcome back to "closing bell." just over 45 minutes until the close. time for word on the street. bank of america upgrading columbia sportswear to buy but the $130 price target, the firm citing valuation which is in line with its peers like nike and adidas, bank of america sees opportunity for footwear which offers strong visibility for long-term growth they say at columbia. >> jefferies out with a note on wayfair. marriage is tough but registry doesn't need to be uniquely positioned to capture market share in that space especially its competitors like bed, bath & beyond and macy's struggling jefferies reiterating a buy rating not moving the share price. citigroup maintains a sell rating on tesla. citi seeing gross margin is the key metric to watch. they haven't changed the price
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target of 191. about 25% downside from here and as i said earlier still maintaining the sell rating which, i guess, it's an upgrade but doesn't move at all. fair a bearish. >> every time i ask you about tesla you say you sold out of it. >> we did. actually at the beginning of 2018 so we bought in 2016 when -- i think i was on set with you the day of the bong whiskey videotape avideo. it went quickly from investing to gambling with that management team and lack of oversight from the team so i'm out no matter what. >> even though the results have been -- >> they've been better but we sold in the 320 range and bought in the 180 rank so i don't feel -- i don't have any fear of missing out in this particular case because i got nothing to hang my hat on. >> by the way it's up 1.7% reports earnings tomorrow after the bell. >> who knew you could register at wayfair, very useful.
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>> very exciting >> register is when you get married then you can choose -- >> i'm aware i've had to buy shed loads of gifts despite paying for plane -- >> you shed shed loads. >> shedloads >> could be misinterpreted >> well, thank you for clarifying it for me i said shed loads. anyway we've got 34 minutes left and we're back near the session highs up 182, the high of the day, the dow up 192. 0.6% or so, 0.7% almost. >> after the break we'll speak with american eagle about the company's new decision to sell cbd products the dow is up 183. moving is hard.
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[ sigh ] introducing an easier way to move with xfinity. it's just another way we're working to make your life simple, easy, awesome. go to to get started. 31 minutes left of trade here the three things driving the action, face-to-face tlad talks between the u.s. and china expected to take place monday. an earnings recession seems unlike after today's strong numbers and s&p holding above the key 3000 number with just as we said 30 minutes left until the close. the dow up 175 points itself. time now to get a cnbc news update with sue herera.
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>> what's happening at this hour, president trump lashing out at another member of the, quote, squad of democratic women of color he criticized representative rashida tlaib of michigan at the turning point usa teens student action summit in washington. >> she's vicious she's like a crazed lunatic. she's screaming -- this is before she got into congress who elected her? she's screaming like a total lunatic at one of our rallies. it's like i'm giving a little rally and she starts screaming this is not a sane person, folks. >> a former omaha public schools teacher will spend at least the next 40 years in prison. he was sentenced after pleading guilty to sexually assaulting three children in his classroom. he was arrested in december. basketball star zion williamson is officially affiliated with the jordan
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brand. financial terms not announced. williamson said when he was young he dreamed of making a jordan-like impact in the nba where he will be playing for the new orleans pelicans you are up to date that's the news update this hour i'll send it back to you guys, wilf and sara. >> nike got a little bit of a boost from that announcement i think it's a huge -- i think this is a material impact on nike there were serious questions a few months ago when, remember, zion's shoe blew out during one of the most important games of the year and people thought, maybe this is an opportunity for adidas he wore an adidas track suit on instagram so now it's definitely a coup for the jordan brand and nike and he's one of the best. this is what sells their sneakers major players like a michael jordan, like a kevin durant or a steph curry. >> this is a surprise or just avoiding what would have been a surprise if he had, indeed, gone away from nike >> i think it was avoiding a
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surprise because nike is dominant especially with the big stars, but i'm sure there was some kind of bidding war and everybody made a play for him. >> i'm sure he's receiving a lot of good things >> the terms are probably very big. >> let's send it over to mike for the second installment of the dashboard. mike. >> well, if we can rebuild him, we have the technology was, of course, the tag line from "the great '70s show "the $6 million man" which i'm surprised none of you got. medical device, medical tools, medical spare parts, they have been great performers. boston scientific as well as thermo fisher. a split between the white and usf health providers anthem, they have struggled and there is a policy overhang but this reflects the general appetite of investors for these long-term growth platforms, obviously it's kind of a razor and blade type business model with these device companies. unclear exactly how far we can
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get these stretched. neither one had a dramatic move today but i think it's an interesting mike khouw come of what's going on even within health care which as a group is neither growth nor value the growth stuff is really working and the cheaper stuff that maybe has a little policy shadow is just neglected, guys >> plenty of uncertainty out there about that, mike, thanks. cbd popularity has surged in the past few months and the fda is beginning to take notice. today the fda issued a warning to pure leaf for marketing products using unsubstantiated claims including that their products can treat everything from cancer to pet anxiety the uncertainty surrounding it hasn't stopped traditional retailers from piling into the space. offering cbd in beverage, lotion, even makeup products, american eagle, one company that announced it would begin selling cbd products back in october and joining us now to discuss is american eagle presidechad kessr welcome back >> thanks for having me. >> what will you be selling and why did you make the decision?
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>> we are selling topical hemp based cbd products starting october. we think it's really relevant for our customer we're excited to bring them something that we think they'll respond to >> when does this start? >> it will start in october. i'd love to come back in october and show you the line of products but that's when the launch will be. >> why is it relevant for a clothing brand >> you know, we try to make sure we offer -- we're the leading retailers for 15 to 25-year-olds and want to make sure we have exciting things across a whole range of categories and think there is a lot of excitement around cbd and what it can do and we think it will be great for our customers. we think we'll bring them in and just give them another reason to shop at american eagle. >> is it about bringing them in? is it about traffic? you guys have seen pretty decent comp store sales but the street didn't like the last update on your guidance when it comes to earnings and margins. >> yeah, we've had actually 16 quarters of positive comps which
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is a great track record and we have had healthy traffic, but there's always, you know, things we can do to make the brand more relevant and to excite the customer even more so that's one of the things we're trying to do here. >> you mentioned the age group, 15 to 25 are you certain that these products will be absolutely fine long-term for some of those teens? should there be an age restriction on them. >> we don't think there should be an age restriction. as i said we're sticking to topical cbd which all the evidence shows is safe and, you know, we do know from our research that there's excitement in our age group for the product. we will do a lot of education for the customers and parents as we launch the product. >> working with green growth brands a lot of your competitors are working with them as well including abercrombie. does that mean you won't be working with other pot companies or cbd companies. >> right now we're working just with green growth brands we have a lot of confidence in their supply chain to make sure
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that the product is clean and safe the difference that we have versus our competitors is we've developed an exclusive line of products that we'll share in october. >> where do you stand now on the ideal number of physical stores you want to be having and when you see other similar clothe retailers shutting down stores, do you see that as an opportunity to move into some of their spaces or are you trying to do the same thing as well and close as many as you can. >> i'm a big fan of stores they're great for brand relevance, brand awareness, for customers. customer service we really find that, you know, having a large amount of stores helps us with customers and almost all our stores are profitable so for us it's about meeting the customer where they are and providing a great experience. >> how do you play retail right now. >> mostly online with the kind of amazon proved companies so own walmart, home depot, costco,
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but it's not because i don't think have you a great brand i do -- may i ask a question i just wanted -- i don't get what the benefit is. it feels a little cynical with awe due respect because you seem like a wonderful young man but i don't really get it and as a parent, i don't know that i would want my kids putting cbd oil on unless, you know, they had pain or something so what is the benefit other than when you're young it's cool to rebel? right? >> well, we hope that the product can offer, you know, opportunity for customers to take personal time, to relax, to destress from -- >> social media. >> from social media, from all the stresses that young people face, but we know that thought everybody is going to be excited about it but we do intend to do a lot of education to ease the concerns that parents or customers might have >> the stock hasn't done well this year and has really underperformed any rethink about -- i've asked
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before -- spinning off aerie which is an amazing growth story and hurting victoria's secret every single quarter. >> we're always looking to maximize value at this point there's nothing to announce about spinning off aerie but, you know, we are always trying to make sure we're doing the best for our customers and for the shareholders we are -- what we're most excited about today we launch back to school for both ae and broadly for the company and as the leading destination for 15 to 25-year-olds this is our time so we're really excited. >> is that why lil wayne is helping you. >> lil wayne is the star of our campaign for back to school. we think he's another thing that's really exciting for the customers and we're excited on august 10th we launch an exclusive range of products we collaborated with lil wayne on. >> chad kessler, thank you. >> and triple denim as well. >> makes a statement >> from the stock exchange. >> yes
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>> triple denim. >> we are the number one jeans brand. >> i understand. anyway, thank you so much. >> we would not be allowed to do that. >> we're aall jealous. we have 22 minutes left of trade. here's where we stand. higher across the board and actually with the dow now on pace to close at a record high we're up almost 200 points so we're on record high close watch here the s&p firmly above 3,000, 3,005. another key level and nasdaq up half a percent and gains across the board. >> positive trade headlines gave us that added impetus a couple of hours ago. up next another positive earnings story today kimberly-clark fresh comments from a conversation i had with the ceo this afternoon about what's working at the consumer company. later we'll get earnings from chipotle, snap, visa and texas instruments after the close. shares of snap up 150% year to date can that momentum continue we'll be right back. woman: my reputation was trashed online.
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17 minutes till the close. one other to move. kimberly-clark up a quarter of a percent after 6 cents beat 5% organic sales raided guidance i spoke to the ceo, mike sue and says the headline is the consumer has proven to be resilient and healthy and points to price really significanizati example he gave me better consumer response globally to innovation and marketing like double digit growth in china which is a big turnaround for the company but no question the story here is pricing news that
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is paying off. volumes are still a bit weaker one example cutting sheets of toilet paper or the number of huggies typers in a pack trying to squeeze more profit out of less but su says it is innovations like their premium diapers their way of going after millennials who want plant-based liners and no paraben. kind of an answer to honest. that's driving the charge. as for competition, rival p & g seeing its fastest growth in years. who says that -- su says, excuse me, its pricing moves are comparable with p & g but kimberly-clark has work to do on boosting market share to compete but for the overall categories, the bachgs like toilet paper and paper towel, he says it's just a better retail environment than they've seen in recent years, not just in the u.s. but globally that's been a story, i mine the stock was up 17% going into earnings so it was one of the favorites. >> yeah, and clearly up less than coca-cola is today but the theme very important from both stocks and giving impetus to the
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broader markets that the consumer is strong, domestically in places like china where it's more structural growth for them than cyclical. >> you wouldn't be able to pass on these kind of price increases if you don't have a strong consumer environment i mean what do you think of the staples? usually seen as defensive, they pay dividends,they're safe in tough environment yet you see a kimberly and coke and seeing some growth. >> and the p & g that has been able to deliver. we own we're not overweight the group but it isn't a bad place to be particular which with the dividend growth. >> up 0.7% the staples sector today, utilities, the only sector that's lower as we stand and we are set at the moment of just off it again on the dow but we're certainly close to record closing high areas and the s&p remains above 3000 we've got your last chance trade coming up next 14 minutes left. and we are gearing up for a big earnings after the bell.
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12 minutes left of trade nancy, what's the last chance trade. >> wilf, i don't like to trade in front of earnings so recommending a stock that recently records, broadcom has a 3.7% yield multiple of 13 1/2 up quite a bit but this is a management team on our theme of great management teams can make a difference this is a management team that we think we want to be -- >> what about the broader chip sector is that part of this >> well, that's kind of already run and i think there are some concerns when texas instruments reports today that maybe the good news is priced in but broadcom is a bit of a different story and it's a much lower multiple stock with a history of growing the dividend and a management team that does a great job on mergers and acquisitions >> even though there were questions about that last one. >> there were and that's when we began buying so i think it wasn't wall street's idea so they were mad. i think it's an opportunity for
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long-term investors. >> nancy, thank you. >> thank you. let's preview what we will have after the bell. big earnings julia boorstin has a look at snap julia. >> well, sara, there is a key number to watch to see if snap's investments in new content tools and gaming platform are paying off and that's nap's daily active user. analysts looking for over 192 million that would be a new high after a year of stagnating growth now, snap's revenue is expected to grow 37%. losses are expected to narrow to 10 cents per share whether they beat or misses, that stock is likely to move with the options market projecting a 14% swing wilf, over to you. >> julia, thank you. we look forward to those numbers. kate roger has a preview of chipotle kate. >> hey, wilf investors are looking for $3.74 for the second quarter now, same-store sales expected to increase by 8.3%.
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digital, of course, will be in focus. last quarter it grew 100% thanks to initiatives like digital first offerings of lifestyle bowls and chipotle rewards were launched so any updates on that which had 3 million members at last count will be key the stock up over 70% year to date best restaurant name so far, guys, back over to you. >> josh lipton monitoring texas instruments. josh what, can we expect >> q2 eps of a $1.22 that would imply a drop of 10% on the top line rbc's mitch steves tell me he'll make a beline for q3 guidance looking for 3.8 billion from the company down close to double digits has a neutral rating because he doesn't think the company's big end market, automotive and industrial, will recover quickly. wilf, back to you. >> josh, thank you a preview of visa. >> wilf, visa has been on a tear
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so expectations are very high. anything short of what the street is expecting, eps of 1.22 could lead to a sharp drop an indication of consumer spending and thus the health of the economy. if bank earnings were any indication numbers should come in positive. as for future growth they're looking for b2 b space and updates on initiatives here and might be looking for news on libra if and how facebook's crypto currency could disrupt the payment space, back to you >> okay, dei, thank you very much i know you don't like buying them but what are you expecting? anything stand out. >> i think chipotle is going to be interesting the multiple is pretty rich for us but we are owners of texas instruments and i'm eager to hear what they have to say about china and the industries that they're exposed to i think this earnings season has been interesting because we've seen revenue raises and we've
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seen margin expansion. the earnings drought that we're in is somewhat expected given the year over year comparisons i'm very encouraged. >> do you think there's too much gloom going in, talk of earnings recession? today i think we counted five companies raised their guidance. >> yeah, and the beats have been at a higher level. it's usually 2/3 and in the 80% ra range. >> thanks for joining us we are on record close watch not quite there as it stands, we need another 20 points or so in the dow up 170 at the moment and we will be covering all the angles of the market in our closing countdown when we come back ♪ and with bank of america and merrill, the benefits you get can grow, too. as a preferred rewards member, you can enjoy priority service and exclusive discounts...
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because you have e*trade, who's tech makes life easier by automatically adding technical patterns on charts and helping you understand what they mean. don't get mad. get e*trade's simplified technical analysis. >> announcer: "closing bell" sponsored by e-trade the original place to invest online. >> under four minutes left to go time for the closingcountdown. we're at 167 at the moment what's pushed higher today trade headlines? >> made a new intrahigh and going into the bell we're watching earnings and specifically health care earnings as the group's been a laggard all year with the overhang from the presidential election coming up
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medicare for all the health care providers and the pharma complex have both been weighing on the group while biotech and medtech have been delivering strong results. we think you got a decent setup going into and health care offers defensive characteristics and think the group can certainly show some relative outperformance >> sahackman we, thanks for joig us. the index is a respectable rally but some on alert for erosion. take a look of the chart of the number of s&p 500 or percentage of s&p 500 stocks above their ten-day average. it rolled over and shows you raggedness below the surface
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a similar look this is from newton advisers looking at the percentage of new york stock exchange listings above their 200 haf day average. if you look at a relative to a few years ago, only about 52%. that's not so strong relative to past rallies, you want to make sure that maybe gets up there. a selective market, not the broadest market. new lows and heist on the nasdaq stuff to keep on your radar as we approach potentially new highs. rick about bonds >> thanks, mike. if you look at intraday of 10 it's really choppy out there as a matter of fact at 10:00 eastern we dropped the weakest july read on richmond fed manufacturing fed index since 2013 but the market came back. one-week chart you could see we're up towards top of the three-day range and the key resistance around 214. the big star today was the dollar index look at this chart we're closing at the best levels since the end of may and it really is a trifecta of strength
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on the indexes today that helped yields, bertha, nasdaq was right with the hunt with the other two indices today. >> yeah, and what we're seeing here today is that some of the earnings companies that reported earnings, biggest gainers, hasbro hitting an all-time high after better than expected results and biogen better than expected the semiconductor index within a hair's breadth of a fresh all-time high. all-time highs for kle tencorps and texas instruments right now is within pennies of closing at an all-time but netflix continues to be the stranger thing down for nine straight days bob. >> two to one advancing to declining stocks cyclical led on strong guidance from united technologies poor guidance from coke and kimberly-clark the trend may hett a wall. caterpillar reports this could be a tough one
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mine something a tough business. half their business is construction and that's been weaker energy and transportation, tough quarter in asia too. down a quarter of their business, tough selling american products in china right now. nice gains closing off the high, the dow jones industrial up 172 points welcome, everyone to "closing bell. i'm sara eisen. >> i'm will fred fros-- wilfredt how the markets closed in order to get a record all-time close looking for 27,359 closed 9 points shy of that. we got a leg up in the afternoon. positive trade headlines and that played out in terms of the sector performance we had industrials and materials at the top, also financials doing well, slight steepening of the yield.
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i think coke allowed people to reinterpret all the earnings we've already seen put a slightly more positive spin and goldman sachs up 2.5% also high on the dow. >> i think there is a message from the coke earnings i want to hit that is important for this market and that is it is a better global growth environment than feared. coke had underperformed all year long on this idea that they actually put out kind of a gloomy forecast for the year back in february on macro economic concerns james quincey, the ceo today told us he didn't -- he saw the storm coming but the storm never came and things look a lot better and raised their revenue guidance and i think that was an important message for all of wall street. earnings set the tone, no question bit trade talks helped kick it into high gear. >> on global points strong day in asian markets and european markets. oil prices also up another percent but over 2% for the week as a whole dollar strong up a full half of 1% now, part of that sterling weakness today but the euro was the most pronounced euro down over half of 1%. we are on earnings watch
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this hour. slew of big name companies set to report any minute we'll bring you results as soon as they wheat gem. our reporters are standing by. joining us to talk about the market, david kelly with us, chief global strategist at jpmorgan funds and ian hamilton is back. first up, though, mike santoli on what you took away from the market action. >> obviously resilient the market, s&p took back about four days' worth of mild losses and obviously we're in that one-week lead up to a fed meeting. tends to be a slight positive bias headline on trade, vague, nonspecific, repetitive to what we already knew and yet had a positive effect and showed you traders looking -- >> the fact they're going to have a face-to-face meeting. >> reported elsewhere it would happen next week and struck the market at the right spot at the right time the reaction matters more than what the news stub stance was which told you looking for an excuse to buy. more new lows than highs on 9
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nasdaq rotational and big industrials really were too negative on guidance three months ago and now correcting for that and so i think net positive picture. >> ian, despite positive trade headlines you're still pocused on the fed more than anything. >> yeah, i still continue to think that that's what's driving the rally. people continue to, you know, rotate into the stock market because incrementally it just makes more and more sense from a risk perspective and the fed is what going to keep any china issues in check for the near term and, again, that whole tina argument we've heard for years is what it's all about >> david kelly, we've had a slew of positive earnings and not just earnings, but improved guidance is it too early to say that, you know, maybe wall street got too gloomy on the earnings forecast this season? >> not really. we are cracking positive in terms of surprises but you got to look at the levels. basic lsd market, low single digit to earnings growth and i
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think that's where we're going to be all of this year, next year, even if we avoid a recession so the level is great. but actually the growth in earnings is not spectacular. i think this really is about the fed. what we've got is monetary medicine for the markets even though we don't have an economic disease. i think that's what is pushing the market higher. >> i guess lsd can still lead to new highs, david >> well, it can induce euphoria or so i'm told >> do you think we're a stretch then is that your implication. >> yes, yeah, it is to some extent if you look at how low bond yields are and the fact that p/es are above the average levels as a 50-year low in the unemployment rate had very high margins this isn't an expensive market there are cheap areas within the market and cheaper overseas and not a lot that's cheap in the broad sectors of the equities market. >> an alert on texas instruments. it's surging in after hours.
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josh with the results. josh >> sara, texas instruments reporting eps of $1.29 a beat the street was at 1.22 on revenue 3.67 billion the street had been looking for 3.6 billion. q3 revenue guide given a range of 3.65 and 3.95 billion and forecast 3.8 billion and in terms of their segments the biggest one analog revenue coming in at 2.5 billion for the quarter. on the call here want to hear a lot more about end markets, automotive and industrial, about china, about 5g and we'll be on that call. back to you, guys. >> okay, thanks very much, josh. up 5.7%. both lines particular/en the eps line and stock, of course, has already done well with the broader chip rebound mike, this suggesting that that rebound was not overdone at all. >> no, not in the short term although keep in mind we are rallying to highs on the semiconductors with year over year declines in revenue right? so we told you the market is eager i trying to anticipate
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that true turn back to stronger growth in top line, maybe the market's got it right and right now the texas instruments numbers certainly seem to ratify it you have to at least recognize that maybe there's a chance that some names will have proven premature. >> a beat off low expectations. >> relatively low expectations but just saying on absolutely levels and absolutely all-time high in the stock and revenues are lagging the old highs. >> core business declined 6%, embedded processing declined 16%. so that -- >> read across for texas onto other chip stocks. >> i mean it certainly is a read across to the entire economy and certainly a good sign. i think to mike's point, it's multiple expansion i mean the earnings were pretty good and they were in line it wasn't anything, you know, great but you're going to continue to get multiple expansion as long as there's no other alternative and on top of that now you've got some fiscal stimulus because they just agreed to take off the debt
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ceiling and spend like drunken sailors again. >> how do you feel about the chip names, david? have you missed the move they're up more than 35% from their 52-week lows. >> well, i do think it's important to distinguish between the business which is not growing fast because of a slow manufacturing sector around the world and what the stocks are doing because of very low interest rates but i -- on the fiscal deal let's be clear the long-term trend is bad because ever since, you know, we've been building this deficit to gdp ratio but what happened yesterday -- they didn't add a ladder but removed a snake all that will happen is discretionary spending will grow by 2.5%, half a percent the following year so isn't a lot of extra fiscal stimulus here but removed a cliff that's been bigger in every year and removed that yesterday good to have an agreement on it but there's no major stimulus involved in disagreement. >> but there are beneficiaries,
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aren't there, in terms of industries like defense. >> well, i suppose to some extent but if you look at the overall tract, the growth track in discretionary spending isn't that large what really happened we removed the potential for a big decline in federal spending next year which really was never going to happen but i don't want to over -- just because we talk about big number, the problem is we're at high levels of the deficit but the deficit itself is not growing that rapidly and therefore not adding that much stimulus to the economy. >> but, dave, when does that come back to lucent us you look at earnings today and outlook from companies like that, are you encouraged we've got another couple years left of this growth rate well, i think we've got -- we could have more than a couple of years of slow growth i think the u.s. economy will decelerate to 2% i think we'll see that by the end of the week. a good indicator that's what's going on here but the expansion could keep going for quite a while here on the deficit, though, you
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know, we are spending beyond our means and means we must spend below it tomorrow. we should not be running a deficit of 4 1/2% at -- >> good luck with that with this congress. >> you don't hear austerity from either party dave, trying to figure out how you're positioned based on what you're saying. low single digit growth in earnings fed focused market low growth where are you? the problem, of course, is the cash yields are about to turn negative in real terms again so you have to be in long-term investments. i think within the u.s. stock market look at sectors which are genuinely cheap based on a valuations becauseat some stag you will have a big market correction and when this market is ruled by nightmares rather than by dreams, that's when valuations count and there are big discrepancies in valuations which i think portfolio managers can see the market is kind of ignoring that right now but i think there will be opportunities later when things
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get worse. >> we're going to dive into which ones but first an earnings alert on visa. deirdre sosa >> after hours beating on the bottom line by five cents adjusted eps coming in at 1.37 versus $1.32 which is what the street was expecting revenue at appoint 84 billion versus $5.7 billion forecast as i mentioned. the stock is trading up just slightly but, remember, that this is a stock that has risen nearly 40% year to date. so it really was priced for perfection going into this still lagging its arch rival mastercard which surged nearly 50%. purchase volume growth, an indication of card spending and thus the economy, payment volume was up 9% adjusting for currency year over year in the quarter. guidance also looking good full year net revenue growth in the low double digits and eps
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guidance looking strong above expectations on the call, guys which kicks off shortly the street will want to hear about executives' economic outlook how it is moving beyond traditional payments and perhaps libra whether kelly sees that as a disrupter. >> i'm sure we will hear comments about libra thanks, dei. $2.7 billion capital returned to shareholders mike this, stock has been very, very strong. >> fast, steady, low drama growth it's just serving a huge market. it's a virtual duopoly so i think that's why it gets so much credit 30 times earnings is a very high hurdle but it's a great business model and the entire world knows it so it's one of those things where it's not surprising it's not moving much on results it's surprising it can move 30% on a year to date basis when not much changes. >> the amazing thing for credit cards even when you have apple launching a new system with a bank that's not offered this
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before, goldman sachs, what's it based on, a credit card. the backbone of all the new payment systems. because of that as deidre points out, julia has numbers >> snap beating expectations on every metric the company reporting stronger than expected revenue of 388 million versus expectations of 359.7 million. earnings were better than expected as well the company reporting a loss of 6 cents per share. that's a narrower loss and the ten cent per share loss and better than the 14 cent per share loss in a year ago quarter and that daily active user number beating expectations coming in at 203 daily active users that's 13 more than the prior quarter and higher than expectations of 192 million. so looking across the different regions, they added 3 million users in north america, so that's better than expected. also a big beat in terms of users around the rest of the
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world. guidance also strong, revenue guidance higher than expected for the third quarter as is guidance for operating income. so looks like some great trends here and we'll continue to dig through it and be back to you with more. i want to note the stock is up 8% right now and what's particularly notable before earnings today is gained 5% so a significant gains day. back over to you. >> wall street had sniffed out that improvement and they certainly got it julia, thank you beyond the shrinking bosses and the, what, almost 50% revenue growth it's the daily user growth up 7% to 203 million. second quarter in a row we have seen that which is important psychologically. >> it's sort of getting understood, i think, or believed on the street that obviously this is -- it's got a place in the industry i think -- it reminds me a ton of twitter twitter went from a post-ipo of the 70s into the teens and slowly you got belief out of
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that the stock, 27-5 snap in less than two years and now revived. >> listen, now with this move as well it's up 180% year to date so fantastic turnaround. don't want to put scorn on that but clearly lossmaking and still below the ipo price. >> $20 billion market value. >> got another one, chipotle and kate has the numbers >> wilf, a strong q2 for chipotle eps 399 adjusted analysts looking for $3.76 revenue is $1.43 billion that is also a slight beat same-store sales a huge number double digits up 10% for q2. analysts were expecting an increase of 8.3% the company also had another really big digital number here digital up 99.1% accounting for over 18% of sales. the company said they opened 20 new restaurants in the quarter closed one restaurant margins just over 20%. that's about right in line they also raised their guidance high single digit comps growth
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for the full year, 2019 as can you see. the stock up over 4% the conference call kicks off at 4:30 we'll bring you any headlines we get after that. >> 100% digital growth >> another quarter too >> another example of a company that has run up so much this year what, 70% and is getting -- >> after hours it's actually an all-time high which i don't think a lot of people thought it would ever see that 2015 high right before all the issues. >> i also say 100% digital growth which is now i think kate said 19% of total which is -- if it can keep that going it's a couple years away. >> it gets the benefit of being late to a lot of things. they just launched rewards so get the benefit of already operating well in the core business and people buying back in and paying a huge multiple for the growth and now they have the kicker of they're going to revamp the business according to a lot of these technologies.
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>> digital offering works very smoothly i can attest to it. >> david kelly, so we got visa, we've got chipotle we've got snap all of them with tremendous run-ups into these earnings and all of them having some nice moves here higher after hours. what does that tell you. >> lsd. >> well, wilf, some of these companies are doing a little better than low single digits although some obviously have low negative digits but the bigger point is the u.s. consumer is doing pretty well and you can see that in some of these areas here things are doing pretty well i still think we're talking about a slow global economy and what's going on here, very low interest rates are just helping capital markets or helping stocks, they're helping bonds and real estate so what we're seeing is a growth in financial assets relative to the economy and that can go on for a long time and i think it will continue this year but at some point when people get scared about the economy itself, then that does mean you have a little further to fall so i think
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investors oath to be careful here these are good, you know, these are companies beating expectations but the actual raw numbers aren't that great in terms of the growth rate and this is fundamentally slow growing economy both in terms of economic growth and earnings. >> david, just a quick final question you guys altering your expectations of percentage chance of no deal brexit now that boris johnson is in at number 10? >> well, i think that -- i think he -- no, i think we're still going to get a deal. i think that first of all boris johnson will try mightily to get a deal and he'll accept, you know, perhaps less alteration than people think to theresa may's deal to get that i don't know if that will work out or not. i don't think the europeans want to negotiate that much but if he wants to go ahead with a no deal brexit he'll run into a firestorm with the parliament and could end up with a british general election because of that so ultimately the british want to avoid a no deal brexit and i suspect they will. >> okay. david, thanks very much.
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ian winer, thanks also for joining us. >> thank you. up next snap keeps surging after reporting strong results as we discussed and we'll have two analysts join us with their take -driverless cars... -all ground personnel... ...or trips to mars. $4.95. delivery drones or the latest phones. $4.95. no matter what you trade, at fidelity it's just $4.95 per online u.s. equity trade. no matter what you trade, at fidelity - stand up if you are first stand up if you're a mother. if you are actively deployed, a veteran, or you're in a military family, please stand. i will tell you this, southern new hampshire university can change the whole trajectory of your life. at comcast, we didn't build the nation's largest gig-speed network just to make businesses run faster. we built it to help them go beyond. because beyond risk... welcome to the neighborhood, guys. there is reward.
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welcome back it's been a very busy after hours earnings session texas instrument, visa, chipotle and snap all beating on both lines. visa is now slightly trading lower though let's get back to julia for more on snap which was surging last time we looked >> wilf, it continues to surge the company posting its prepared remarks for the earnings call saying they expect the underlying growth trend in user engagement to continue in q4 guiding for q3 they expect daily active users of 205 million to 207 million noting this is a 10% to 11% growth year over year and that's acceleration in terms of percentage growth from q2 to 3 and two key numbers that show how the company's investment in content is working audience as well as engagement for their discover section back to you. >> julia, thank you.
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that's four for four on the beats after hours. for more let's bring in ali from morni morningstar and ed lee is it user growth that wall street is -- >> i think user growth clearly they stemmed the bleeding from a few quarters ago and are doing better and wanted to point out what julia was getting at discover platform is where they're shining because ultimately, you know, in order to generate the added ad dollars you need people to stick around and look at stuff beyond snapping photos and accepting to each other that's the key measure i think from what i'm seeing here, audience watching content has grown 35% year over year that's pretty significant. so once upon a time snap liked to call itself a camera company. it's a media company >> not during the ipo race. >> what's your take, ali >> i think they're impressive. the dau growth was certainly
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imblessive and, of course, as you can see by the reaction pretty surprising. that growth acceleration may not last long. their guidance is pretty impressive but the reason their growth may not accelerate that long, mainly it was driven by the android revamp so that's not going to continue and, of course, you know, don't forget these guys' main competitor is facebook's instagram and their user base continues to grow too. but overall very positive. >> ed, yesterday had this question and i've been wondering about the proliferation of tiktok, how fast it's grown. >> he's obsessed with it. >> i'm obsessed with it as a phenomenon i absolutely am. if a competitor can come out of nowhere that fast and guetta popular does it ratify the snap approach or mean these guys don't have a lock? i think tiktok is a great exam
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toll bring up because of how fast it came out of nowhere and quickly a lot adopted it especially the very people that snap and also instagram have claimed which is young people so i think the fact that a new social media platform can come out of nowhere and get popular shows you the overhang, shows you sort of the -- some of the risks to being in this space generally at the same time again i'll point to the content play because if you have content, people will come back regularly speaking, that's what they'll stick with, right? that and plus their friends sending messages so you need to program it right now tiktok is popular because it's new and designed around programming you're uploading these short videos, you know, tuned to music. it's a really nifty gimmick but, again, it's like you can't -- you're always relying on your user base to program it. >> where are you on valuation? >> on valuation going into earnings we had it at $14 a share which we've had it for
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over 14 months the stock has performed well so we'll have to review our numbers and look to see what adjustments may be needed but going back to what your other guest was saying, i do think that another thing to look at is the already established wide user base that its main competitor instagram or let's say facebook already has which is over 2 billion. so certainly the newcomers, we don't think, will be that much of a threat as facebook with 2 billion users. >> ali mogharabi and ed lee, thank you. iplechot we'll discuss and how you should trade the stock coming up.
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welcome back earnings alert on irobot >> hey, wilf that's right missing on the top line, the stock down 15% blaming the u.s./china trade war and new tariffs saying that will restrain the company's domestic growth hurting the second half of 2019. the company dropping its revenue estimates by about $80 million operating income expectations cut by about 20 million and the big eps cut with a midpoint of the range coming down 50 crepes a share. back to you guys >> eric, thank you so much down some 15%. one of the few disappointments from earnings. >> breaking the streak we have a news alert on u.p.s. frank with the detail. >> u.p.s. will offer seven-day service to residential and
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business customers starting on january 1st. fedex making that same move in may. u.p.s. announcing a partnership with michael's craft stores expanding their access point network to 21,000 locations including css and advanced auto parts to capitalize on the market u.p.s. making a drone delivery announcement saying it's applied for faa approval to fly over people at nighttime and even out of sight of the operator major restrictions there u.p.s. is testing medical deliveries in north carolina and says it will focus on drones for through 2020 estimating there is a $3 billion to $5 billion market in the u.s. for medical deliveries e-commerce deliveries from droughnss is years away. >> time for a cnbc news update with sue. here's what's happening. by a 97-2 vote, the senate has passed a bill to extend
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authorization for the 9/11 victims compensation fund through the year 2092. that bill which passed in the house earlier this month now goes to president trump for his expected signature on friday a group of democratic lawmakers blasting senate majority leader mitch mcconnell for refusing to bring legislation to the floor to protect the 2020 election against foreign meddling >> when it comes to election security, republican leader mitch mcconnell is not afraid of the russians he's afraid of the united states senate a republican controlled senate he's afraid to bring any measure to the floor on election security from what might happen on the floor of the united states senate. >> and a rare tornado touched down on cape cod today and it left a mess behind for homeowners and businesses. there were no immediate reports of any injuries from the storm although guests at the cape sands inn got quite a scare when a section of the roof was ripped off.
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mother nature. that's the news update this hour, guys i'll send it back downtown to you, sara, wilf. >> sue, thanks up next a c-suite shake-up at td ameritrade outgoing ceo tim hockey here to explain why he will step down in february. as we head to break another check-in on the after-hours earnings movers. much more to come after the short break. >> announcer: cnbc newsup date sponsored by comcast business. beyond fast. oday's expenses ...while helping plan, invest and protect for the future. so they'll be okay? i think they'll be fine. voya. helping you to and through retirement.
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it's been a busy after-hours session. big stock moves after several quarterly reports just to catch you up on where we stand texas instruments, visa, chipotle, all beating wall street earnings estimates although visa shares are lower after missing payment volume expectations, initially a little higher snap posting a smaller than expected loss thanks to strong daily active user growth topping 200 million. that stock which was already up, what, more than 150% so far this year jumping another almost 12% after hours. similar story for visa trading already near a record high chipotle had a very strong run-up into results as well so mostly impressive. moving on to td ameritrade which
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beat earnings estimates after the bell yesterday but that's not what caught the street's attention. president and ceo tim hockey announcing he'll leave the company in february of 2020. tim hockey joins us for a first on cnbc interview. welcome, tim this caught a lot of people off guard. you haven't been there very long why are you leaving. >> well, it's a nice intro, thanks very much listen, these are conversations that boards have over the time with their management and in the last little while we've been having our quarterly board meetings and after lots of discussion about the way forward and the decision on how to best move forward we decided it was time to part ways and so i announced yesterday that i would be stepping down and that the board would immediately start searching for a new ceo and i would be remaining in the seat until either the ceo comes on board or until february of 2020 so i'll be here next quarter to talk about earnings. >> some people are reading into this on wall street that it could have implications for the
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firm's m & a you've been integrating the scott trade deal anything to read into here >> i don't think there's anything to read in it as i said there's a bunch of reasons this is not about. it's not about me deciding to spend more time with my family although i will say my wife is thrilled about that being a nice by-product it's not about my health it's not about many of the things you often see in these changes. this is no one thing it's a culmination of a lot of conversations with my board about the best way forward i'm glad you mentioned the scott trade deal something that my team and i are proud of and it does allude to the fact there is continuing consolidation in our industry but that's not what this is about. it's about putting the next leader in for the right next phase of td ameritrade. >> tim, though, would that represent a rethink of the strategy i mean if it obviously is not about all those outside factors or m&a, anything you would anticipate would change in terms of approach of the business whether it's, you know, technology approach, focus on active traders, any of those components of the strategy
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>> it's a great question, mike, in fact, the board and i discussed exactly that it is a winning strategy and it's a board approved strategy so my team and i continue to or will continue to move that agenda forward until my last day and so we're actually quite pleased with it. it's actually winning. we had the benefit of reporting this last quarter after our competitors and so we were quite pleased with our relative performance and our market share gains in this quarter both year over year and quarter. we think we'll stay the course and we think we'll hopefully improve our advancement against the competition. >> yeah, you have outperformed your competitor, still the stock is down over the last 12 months and everybody else is, you know, charles schwab down double digits e-trade, i guess fee pressures continue to hurt this industry how do you see growth prospecting going forward. >> i think what you're see in terms of the relative performance and absolute performance of our sector more a reflection of the yield curve. as you know much of what the
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earnings that come in for online brokers and wealth managers generally is earnings on cash and when you had such a dramatic shift in the yield curve that's been reflected in the stock prices we're not happy about the absolute level of performance but we're certainly happy about the relative level of performance. >> and what would you say, tim, at the moment about just the feel from clients in general right now? i mean it seems like, you know, daily average trades have not really been growing on a year over year basis, at least not recently what about engagement of customers with the markets >> the last quarter was certainly slow it's always a slow second quarter. it's probably tax season ourselves and our competitors saw the same phenomenon which is weak inflow, money in motion in april and think that was actually a by-product of the effects of the tax changes that might have caught investors off guard. but after that may and june got stronger and stronger. the trading levels are a bit
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muted. obviously the vix is down and all are scratching our heads and you're in this every day about why there isn't more volatility with the news coming out of the strait of hormuz it seems to have been more recently. >> wanted to ask you about this idea that's being floated certainly from certain democratic candidates like bernie sanders on a financial transaction tax. is that realistic ask what would it do for trading volumes if we saw someone go through with that if they got elected? >> we think that is not a wise strategy and certainly is one that's topical there have been countries in europe that have tried this over the last number of decades and they've had quite dramatic impacts on things like trading levels if you think about the cost of the trade to a retail investor is anywhere between $5 and $8 call it in the marketplace, if you actually add in what is
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proposed as a transaction tax, the cost of that trade can be, you know, well over $100 if you actually factor in the cost of the tax against the absolute size of our average trade so it is not a small amount. it might look small in basis points but when you multiply it by the size of the trade it's a big impact on retail consumers. >> tim hockey, thank you for joining us. >> thanks for having me. see you next quarter. >> off earnings, the out going now ceo of td ameritrade up next, shares of chipotle, higher after just reporting results and analysts reaction to that straight ahead. later earnings mania what to expect from boeing, facebook, tesla and more when "closing bell" returns (lively music)
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- [student] my degree from snhu has helped me tremendously. the flexible class schedules allow me to run my catering business and be a mom and parent. breakthrough at
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breaking news out of washington ylan mui has details >> dow jones is reporting that there is a antitrust review into big tech firms that could encompass google, facebook, amazon and apple now, previously the department of justice and the ftc had agreed to splitting up some of these companies as they began their inquiries into whether their dominance in the marketplaces was keeping out competitors. the department of justice had taken over jurisdiction for google and for apple but now it seems that their review is going to encompass all of big tech, according to dow jones review is
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designed to go above and beyond the recent plans for scrutinizing the tech sector that were crafted by the ftc and that the focus of this inquiry will be on the size and might have the firms and how they've expanded their reach into additional businesses and how they've leveraged the power of having large networks of users, so, again, the department of justice according to dow jones now beginning a very broad antitrust inquiry into big tech. back over to you >> was this expected at all, ylan >> there were some rumblings this could be coming down the pike or perhaps some sort of announcement we knew the department of justice was looking into google and knew it was looking into apple. the question is, is this going to be even bigger than that and how is that going to overlap with the ftc's efforts i suspect that all of this will only amount to even more scrutiny of these big tech companies in washington and that you're going to see, perhaps, some turf battles in that process. >> are the companies named in
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the report that the doj is looking into specifically? >> what dow jones has reported so far is that the doj's inquiry is into dominant tech platforms so one assumes, of course, that would encompass all of these big players but we will see what that inquiry actually finds. now, it's important to note they did not say that this is an investigation. they said that this is a review and so i think that will be important going forward in terms of how significant the scope of potential action could be. >> all right, ylan, thank i. seeing declines across the board. facebook, amazon, apple less so, google more so but less than 2%. i mean, are you surprised we're not seeing bigger declines now that the doj is looking more seriously at that. >> i wouldn't say surprised. it's understandable we get this reflex move. facebook especially, amazon certainly so it's sort of a step back. >> do investors have no fear of this >> i think dough mean't know ho quantify it.
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i think the things -- first of all there is a chilling effect on additional acquisitions if you thought they had to be aggressive, probably not going to happen and the bundling of products and services. amazon privileging its own, you know, its own in-house brands or something like that. google, you know, if i do a mobile search on a movie and google, google wants to give me the google rundown as opposed to some third party, imdb owned by amazon that's what i wonder about >> google wasn't mentioned in the list of names this is just additional reports but one would imagine it might be in the spotlight as well. >> for sure. now, chipotle stock hitting an all-time high in after-hours trading. after reporting a beat on earnings and same-store sales it's up about 4% for more steven anderson, consumer analyst and good evening to you fantastic numbers, it seem, particularly on the digital side. >> great numbers and drilling a
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little deep are into the digital side that accounts for now 18% of the total sales and for some perspective that was only 13% of sales at the end of 2018 so big growth in that ren view i would call chipotle 2.0. that's probably one of the two things that new ceo -- relatively new ceo brian nichols in addition to restoring the company's culture. >> how do you value this stock right now? >> right now i would say that the company's valuation is a little stretch at this point when you consider the company's margins running right around 21% and if you figure the peak before the e. coli crisis in 2015, the stock was generally generating 26%, 27% restaurant level margins with similar valuations at this point, i would not be surprised to see the stock maybe start to pull back but the company did give upside guidance to same restaurant
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sales of high single digits for the full year however we think that's where the street was estimating comps for the full year >> stephen anderson, thank you >> thank you up next on the show the first of the f.a.n.g.s facebook's results on the docket three key things you need to watch in that report
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welcome back let's have another check on big tech, facebook, amazon, appal and pta bet moving lower on a report from the "wall street journal", but the doj will open an antitrust review focusing on
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whether they harm online >> let's send it to mike santoli, final dashboard of the day. i googled falling style, i saw it was "toy story. >> did you google this >> i didn't. >> i'm a simple retired investor on a pension, said roth from "godfather 2" who was a gangster >> great movie best ever. >> some of those pension funds are struggling a little bit. this is an index of the percentage of pensions that are funded or the percentage of funded status among large corporate pensions it is obviously down off the highs. it is here in the sort of high 80%. now, why does this matter to the markets? this is because of lower bond yields largely, because it lowers expected returns in the large fixed income portfolios, but a lot of companies taking advantage of the bond market like fedex yesterday, so they could put a billion dollars in
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their underfunded pension plan why does it make sense for fedex? if you are underfunded for a certain degree the pension benefit guarantee corporation puts pa fee of 4 point something percent on the under fundedness. you can pay 3% if you are high like fedex and fund the pension and you are saving on different fronts and you are putting the money into bonds this is one of the factors i think is creating or encouraging the insatiable demand for yield products everywhere. the lower yields go, the more yield type stuff these funds have to buy and it is a big part of the dynamic. >> how tight are to have could nacould -- how tight are the covenants? >> i believe it is set by the boards i believe unfortunately, the returns are still too high i think most are assuming something close to 7% long-term annual returns when you own a lot of bonds at these yield levels you are probably not going to get there
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without taking a bunch of risk. >> mike, thank you very much the wall street look ahead, the key reports every investor nights to have an eye on when we ♪ome back. ♪ future. rivaled network to wor. the united states postal service makes more e-commerce deliveries to homes than anyone else in the country. ...when a plan stops being a plan and gets set into motion. today's merrill can help you get there with the people, tools, and personalized advice to help turn your ambitions into action. what would you like the power to do?
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whai tell clients, etfs can follow an index, but which ones target your goals? it's not about quantity. it's about quality. no trendy stuff. i want etfs backed by research. is it built for the long-term? my reputation depends on it. flexshares etfs are designed and managed around investor objectives. so you can advise with confidence. before investing, consider the fund's investment objectives,
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risks, charges and expenses. go to for a prospectus containing this information. read it carefully. ♪ the department of justice
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now officially announcing it is reviewing the practices of online platforms, saying in a press release just moments ago, quote, the review focuses on practices that create or maintain structural impediments to greater competition and user benefits it does not name any names specifically it says it is looking at social media, retail and online search services let's bring in webb bush managing director dan ives on the cnbc news line dan, what do you do if you are a shareholder of a facebook, an amazon, an alphabet or google, all moving lower after headlines on this? >> this is no longer background noise. it made it more of a real threat with the beltway looking at big tech most threatened the amazon and google, apple, but i think it is not just rhetoric within the beltway is shown by this. >> do you think microsoft will be under threat also >> i think microsoft, you know, they obviously have those scars in terms of going through this in the doj, you know, many years
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ago. i think they're least threatened here, which i think continues to be in the eyes of investors a good thing for microsoft i think most exposed is amazon and facebook as well as google, and apple obviously is in there as well as we saw last week with the hearings look, this is something where it is going to be more noise but ultimately it makes it now something from a risk perspective it is going to start to get factored into the stocks in terms of what could happen. >> i mean amazon is down a percent after hours. it was down a little more than that just a minute ago when you say threatened, what do you mean what are we talking about here fines, breakups, a change in bus practices? i mean europe has been doing this for a while and they result in fines and investors just brush it off. >> yes ultimately we think when it is all said and done fines or tweaks to business models could be the result. but the bigger worry is from the antitrust perspective, how significantly they press these companies in terms of going down
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the path that's why i think in the eyes of investors, the ones most focused on facebook, amazon, it is most of a fine. it creates a risk for the names and something they have to manage, especially going through the beltway and into 2020 election. >> dan, thanks for joining us. >> thank you now to our wall street look ahead. another big day for earnings tomorrow cap, boeing and facebook are reporting. what can we expect from caterpillar? >> in may the industrial giant told shareholders it expects tariffs to cost the company between 250 and $350 million this year, but with no trade deal in sight the street will want to know if it is sticking to these range or are the costs rising further and if price increases are keeping margins steady caterpillar which makes everything from engines to tractors says china represents only 5% to 10% of the revenue, so commentary on china will be
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key. back to you. >> thank you boeing set to report before the bell tomorrow. phil lebeau has a preview. >> sarah, some of the news came out last week with a warning on boeing, but remember most of the news will be focused on 737 max, not only on the impact on the second quarter but also on the impact on the company. there was the $4.9 billion charge they will take in the second quarter and a lot of questions on ramping up production and delivery. remember, they have more than 160 of the planes that are parked that ultimately need to be delivered guys, the numbers come before the bell tomorrow morning. >> phil, thank you facebook results that will be our headliner tomorrow right now at this time. julia boorstin has a preview for us julia. >> that's absolutely right, sarah. after a quarter of negative headlines three issues are in focus. first, how much will revenue growth slow. we are looking to see the impact of the company shift away from the news feed and a search for new revenue. second, user growth and
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engagement are in focus, especially u.s. activity users which barely budged in two years. third, investors are watching for facebook's expense outlook as the company faces a range of regulatory challenges including the latest from the doj. back to you. >> thank you we are out of time here. that does it for "closing bell." >> "fast money" picks it up right now. "fast money" starts right now. live from the nasdaq market site overlooking new york city's time swear i'm million. tim seymour, karen finerman, marc tepper and guy adami are on the desk check out the after hour action. chipotle, snap and texas instruments on the move. we will break down the headlines for you. ups is upping the delivery game, what the company announced that could deliver big time for investors. to infinity and beyond, beyond meat hitting another record high in today's session can anything stop the stock? we are digging in. we begin with breaking news out of washington, the justice department launching a


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