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tv   Making Money With Charles Payne  FOX Business  November 13, 2018 2:00pm-3:01pm EST

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connell: starbuck is one of the companies. we have reports that starbucks will lay off 5% of its total workforce. 350 employees. so this came in a memo from the ceo. kevin johns son. you watch starbucks. you watch boeing. home depot. "brexit." trade. with all that we hand it over to charles payne. i appreciate it. charles: i'm charles payne. this is making money. stocks trying to find their footing after yesterday's big losses. the wait is over, amazon chooses two cities for the second and third headquarters. some expressing outrage over the tax breaks being offered for the company. and the deadly wildfires in california, they continue as president trump approves a major disaster declaration for the state. we're going to take you there live for an update. all that and much more on
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"making money". well it is a lot better than yesterday. not runaway but better day than yesterday. stocks bouncing back for the most part. a lot of moving in and out of the positive territory for the dow but the s&p and nasdaq holding pretty well. as president trump holding a trade meeting with senior advisors today. larry kudlow says trump and president xi of china will talk trade at the g20 while treasury secretary steve mnuchin and the chinese vice premier already resumed discussions about a possible trade deal. that would obviously ease trade tensions. to break it down, money map press chief technical strategist, d.r. barton. lindsey bell, janney montgomery scott chief investment strategist, march luschini. mark, let me start with you. a week or so larry kudlow talked about there was no talks, the chinese have been unresponsive,
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the market was down a lot more than it is up today. is there just more skepticism setting? what is going on? >> charles, i think it is. it was less than a week ago you had both larry kudlow and president trump stating die met particularly opposed statements whether trade talks were occurring. there is a very amount of skepticism. a show me situation with regard to trade. we've been teased before by discussions that ultimately lead to nothing f we get resolution around trade, subsequent to the discussions or president trump meeting with president xi in buenos aires i think the 150 points put on s&p 500. that is how much is baked into the concern but right now it is show me. charles: lindsey, a lot as occurred. a lot of economic data coming in. china had a tough october. auto sales were down.
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this could be the worst year ever as china as a major car importer to see year-over-year declines. meanwhile the banks, the government forcing banks to buy corporate debt. so there is cracks in their veneer and invincibility some people thought -- by the same token, in america we've heard trump say he wants to make a deal. we hadn't really heard that but he is more optimistic with respect to saying hey, i like to get something done. what do you think? >> in china there is certainly feeling the pain over there. they're definitely taking steps to try to stimulate the economy. they're sort of manipulating the currency to an extent to offset some tariffs already put into place. look, this meeting, at the end of the month is huge. to us this is the biggest risk facing the market near term. this has huge implications for the global equity market as we get into 2019.
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with the 10% tariffs turn 25%, on the goods coming into our market from china the equity market the will have a real problem with that everybody better start batoning down the hatches and get more defensive in nature with respect to their investments. charles: dr? >> lindsey is on the same page with me in terms of the biggest risk factor. if we come out of the f 20 meeting with some head-knock instead of some agreement i think we could, we could derail what is traditionally one of the strongest periods in the market. you know we talked about the tailwinds that we have from the presidential cycle right now which i'm a big believer of. the next nine months are the strongest part of that four-year cycle. i think we put that together with earnings, end of year santa claus effect we should have a really strong run-up. this could derail it.
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charles: do you think wall street, wall street talking heads are more concerned than corporate america? reason i bring that up third quarter earnings are out, right now 33% of companies mentioned tariffs. in the second quarter it was 38%. in fact more companies mentioned currency, more companies have mentioned raw material costs, and more companies mentioned wage increases than they have tariffs. so are the wall street experts making more of this than the companies on the ground who actually have to make a living in the global economy? >> i think we're making more of it is that the release of this. the resolution of this, we're thinking that the administration has got the long game in view. that they're negotiating, not planning on having onerous tariffs blast us through 2019. i think that we're saying if things get resolved to the upside, the market has not taken a big drop down in any of these tariff things, percents, not
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tens of percents because we think they get resolved. if they don't get resolved i think everybody gets worried. charles: mark, other issues, i'm more concerned to be quite frank, i think the biggest headwind to me is the strong dollar and biggest risk to the economy and the market is the federal reserve. what do you make of those two things? >> i think those are realistic concerns, charles. if you think about it, the u.s. dollar strengthened moving from a tailwind in 2017 to likely to continue strengthen. therefore since s&p 500 companies derive 44% of profits from overseas markets, that will obviously influence the glide path towards earnings i think will be booed on year-over-year basis, clearly decelerating unanswerable, decelerating to what. charles: right. >> the federal reserve is the other bogeyman out there relative to the level of interest rates and so-called neutral rate is and are we
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accommodative or has the federal reserve raised rates where it might not tight for the u.s. but tight forked world. charles: lindsay, where do you think it plays out already? >> in 2019, growth will decelerate across the board. we're looking for a 8.2% in earnings growth in 2019 off of over 22% in 2018. and i think that really became reality for a lot of investors as third quarter earnings kind of made its way through. the third quarter was a blockbuster, over 28% earnings growth. but as we look out to 2019 you mentioned issues the market is going, companies and the market is going to face. it started to became reality. every time the 10-year yield reaches close to 3.25 the market becomes skiddish. it will have real implications on the discount rate which you have to value these companies at. charles: right. >> so while we're going to see
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deceleration, 8% on the bottom line is still very solid growth. charles: i guess the operative word or thing is that we still have growth, right? it won't be the kind we've enjoyed this year which has been magnificent, maybe growth in of itself could be the saving grace. wish we had more time, you guys are fantastic. lindsey, mark, thank you very much. >> thank you, charles. charles: apple is the world's most valuable publicly-traded company. it is no longer worth a trillion dollars. still shares of apple started the day below $200 a share, down more than 5%. some production and supply and demand worries about apple's new iphone. what is in store with apple and tech overall? can the market rebound big without technology? joining me now, disruptive tech research founder and chief analyst lou basines. lou, you were an apple bull. you're still an apple bull after the earnings report. the stock though took a real serious hit yesterday after one of its suppliers came up short. people are very concerned about
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apple and now, even former bulls like yourself are starting to abandon the stock. >> i don't want to say i'm abandoning the stock by no means. i think apple is trying to find a new equalibrium. so is the market. you mentioned that in in. it has so much weighting in some indexes and portfolios. here is the key, the analysts overreacting in my opinion to a single data point out of lou men tum, which cut its guidance. that is a major apple supplier. what they're over looking that apple made 390 million-dollar investment in lumentum's competitor. they could be diversifying the supply chain instead of looking at cut in production. they try to divine the future in a data point but often times they find themselves wrong. charles: i wept over that yesterday, the headlines all the time. taiwan straight times reports, one of the suppliers.
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to your point, the dow, apple rather is 5% of the dow, 5% of the s&p and over 12% of nasdaq. feels like so much weight on one particular company, making it dangerous for all investors. do you think that whoever cobbles these indexes together maybe gotten it wrong by putting so much reliance on this one name? >> look i think it is the result of apple performing so well but i do think we need a new tech leader. i declared the fang trade dead avnet flicks's abysmal report in july and i think we need a new tech leader. apple over a trillion dollar valuation. amazon breached the trillion dollar mark. we need a company that can still grow into valuation like that. if you have two contenders, nvidia and broadcom. both up-and-coming players trading for 100 billion-dollar market cap. charles: you took the words right out of my mouth. i was going to say, nvidia, here is the funny thing about nvidia, "forbes" magazine, said it was
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company of the year and the stock but it dropped 70%. it has last four or five years lived up to the hype. if it does take that sort of leadership role i believe it will too, we can still be in for the kind of volatility that is unnerving. we love it when they go straight up, five bucks a day, 10 bucks a day, but not when they're coming down like that, lou. >> no one likes the vote tilt. nvidia reports later this week on the 15. analysts are expecting a weaker report. it is not quart over quarter growth but nvidia coming out gaming and artificial intelligence to self driving cars. that has the potential to be the next tech leader and again there is a lot more room to go. can apple go from one trillion to two trillion easily? probably not but can nvidia go from 100 billion to 200 billion?
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charles: lou is looking lovingly at nvidia. we have a soap opera brewing. thanks, lou. >> thanks, charles. charles: later i will ask you answer questions about the stock market. tweet me@cvpayne. amazon announced new york city and how much will it cost the cities of in those locations next. ♪ me advisors are happy to earn commissions whether you do well or not. fisher investments fees are structured so we do better when you do better. maybe that's why most of our clients come from other money managers. fisher investments. clearly better money management.
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yeah, they say if you blanch it it's better, but that seems like a lot of work. no hidden fees. no platform fees. no trade minimums. and yes, it's all at one low price. td ameritrade. ♪ charles: amazon confirming today what we already knew, splitting highly coveted hq2 between long island, new york, and crystal city, virginia. each will get 25,000 jobs and host of grants. congresswoman elect, queens and bronx, alexandria ocasio-cortez, blasting the move saying amazon is a billion dollar company. the idea we will receive hundreds of millions of dollars in tax breaks at a time when our subway is crumbling and our communities need more investment, not less. it is extremely concerning to residents here. joining me now from the national taxpayer union is mattie
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duppler. from "the wall street journal" jon hilsenrath. mattie, you're an economic purist. where do you stand on the massive tax breaks that are used? >> right. charles: everyone hates they're used for sports stadiums. is this more of an economic argument for one? >> i look at this example, especially from the washington, d.c., area, which i'm based, what it means for public policy makers to entice businesses into their communities. i want to look the a holistic approach. amazon is very inspiring company. it changes the way we do things in every different sphere. i wish it would inspire public policymakers to think differently how they induce business investment in their own communities. the fact we have targeted tax treatment going to one specific company is very short-term view in urban planning in my mind. we need public policymakers investing in ecosystems that support business no matter what the business is. i'm not worried about what amazon will do, where they're
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going in this country. i'm worried about having a ecosystem that supports the next entrepreneurs and to compete with adamson and needs of economy in the future. having policy on one narrowly targeted objective will not accomplish that. charles: john? >> that is really powerful point. amazon created a lot of value when it grew from nothing to the trillion dollar stock it is today. you have to ask, will it create a lot of value going forward? i would say for the state of new york, for new york city, for the washington, d.c. area, this does bring a lot of income into these neighborhoods. so they're talking about 25,000 people earning about $100,000 a year. that is $2.5 billion year right there of income tax revenue, income tax of 7% for the state. that is $175 million a year just of income tax revenues. so the state is probably going
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to make that money back within a decade or so. charles: apparently for the new york city location, long island city, there is a performance based part. $1.5 billion, to your point, 25,000 full-time jobs, and also there will be a 325 million-dollar cash grant. i guess though, john, what about the people who live in the area, don't have computer skills? right now "the wall street journal" posting a report about the condo buying frenzy in queens. great if you can afford it. great if you're getting one of these jobs. this already is a city with huge income inequality. maybe, it exacerbates the problem. maybe the haves and have-nots, that sort of problem at the heart what is wrong in america. if you really want to boil down all of the anxiety in this country i think it boils down to that often of the does it help or hurt? >> well, the answer to your question is yes, it helps and hurts. i think about my own situation. you know i live not far from
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this new crystal city facility. on one hand, maybe it will boost property values in my neighborhood, people come in from out of town for the jobs, that helps. and then i think god, i have to commute past this place. how much will at that add to commuting time for me? i think it cuts both ways. people in low income. in some situations it might drive people out of neighborhoods making them more expensive. charles: yes. >> on the other hand it could create jobs in the deli across the street or dry cleaning store that opens up across the street. >> can i respond to that? charles: before you start, i want to remind the audience that foxconn deal might have hurt positive walker. it became a political issue. he lost his third attempt being governor there. go ahead, mattie. >> the wisconsin situation will be one studied in the future. look at washington, d.c., you look at new york, the question whether or not we have eagan cosystem that can support growth in the future is the one
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politicians need to be concerned about. jon is right, there will be a revenue feedback, there will be outsized growth that comes as a result of these investments. the question whether or not it is sustainable and it ultimately helps people at the lower rungs of the economic ladder. i would argue it doesn't when it is such a narrow focus with this economic policy rather than building a community -- new york is perfect example, for number of jobs they create in new york, business owners, employers fleeing the state in droves because of the high taxes, high regulatory burden they have there. so you can't create a system that continues to foster that growth unless you make long-term changes. charles: it will be a political hot potato, when you have the richest man in the world, someone worth 150 billion, these kind of tax breaks. there are pros and cons. jon, mattie you two were best to have the discussion with. >> thanks a lot. charles: we wanted to mention fox business reached out to congresswoman-elect alexandria ocasio-cortez. still haven't heard back from her. i've been reaching out to her
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since she won. california facing the most devastating fire in the state's history as thousands of homes and businesses are destroyed. we're going to have a live report from there next. trust t't for our clients, without the constraints imposed by the traditional brokerage houses. transparency in the way we're compensated. our philosophy is one of service, not sales... that's why i'm independent. charles schwab is proud to support more independent financial advisors and their clients than anyone else. visit
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charles: search teams fanned out across the town of paradise, that's in northern california after explosive wildfire leveled the town of 27,000 people. 42 people are dead in the deadliest wildfire in that state's history. the state officials say the cause of this blaze is under investigation. one landowner said she received a email from pacific gas & electric the day before the fire last week telling her crews needed to come out to her property because power lines were creating sparks. meanwhile on the other end of the state, another fire in malibu has claimed two deaths, destroyed nearly 400 structures and is roughly 150 area miles.
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that is where we can find fox news's jonathan hunt. jonathan, i understand you're seeing some dramatic new video and some new flare-ups as well? reporter: yeah, charles, firefighters and officials in the state are warning we're not out of the woods yet. we got dramatic proof within the last hour. a major fire flair-up north of us. we're currently in malibu. this was north of us in the lake sherwood area near the 101 freeway. flames shooting into the air. the smoke was rising thousands of feet according to the tv chopper pilots over the scene at the time. it trigger ad pretty amazing response from firefighters. helicopters were dipping buckets into the lake nearby, bringing water, dropping it on to the flames. we also saw fixed-wing aircraft coming in dropping flame retardant. they seem to have a handle on that right now but it shows how dangerous the santa ana winds remain, fanning the flames in
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various places, meaning other breakouts are possible. for instance here in malibu, thousands being evacuated are not being allowed back in yet. when they do get back in here which i would estimate sometime in the next 24 to 36 hours, charles, some will face these kind of heartbreaking scenes. they will pull up on the road here, next to their house and see this. absolutely nothing left of this house on malibu's point dune. for instance you see the chimney stack. that iconic scene we see so often so tragically in these scenes, the only thing left standing in this particular house. i can say on this street, charles, dozens of homes burned to the ground. i think it is very easy, charles, for people this think of malibu as a city of mansions and millionaires. well there are mansions. there are millionaires. these though, perfectly ordinary
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homes. how do i know that? i know that because this is a street i lived on a decade ago. just hard-working americans, many of them, my friends they have lost everything, charles. charles: jonathan, sorry to hear that. it is so devastating. our prayers and thoughts with everyone there. thanks a lot, jonathan. just moments ago president trump thanking first responders in california. >> we mourn the lives of those lost and we pray for victims and there are more victims than anybody would ever even think possible. i want to thank the firefighters and fema and first-responders for their incredible courage in the face of very grave danger. yesterday i signed a disaster declaration for the state of california. we will do everything in our power to support and protect our fellow citizens in harm's way, and we say, i think as a group, i can tell you as a group, god
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bless everybody. that is a very tough situation. charles: joining me now, rabbi kaplan of the shalom institute in malibu which suffered major damage from these fires. rabbi, thanks for joining us. >> you're welcome. thank you for having me on. charles: first, if you can, please, share with us, you know, because it is hard for non-californians, or folks who have seen this first-hand just how swept in and the devastation and sense of urgency and despair that you saw? >> yeah. well, we, we're about five miles up from the pacific kest -- coast highway in a canyon from the state beach. we got a call 3:00 in the morning that the fire was down in the san fernando valley, very far from us, near the 101 freeway. i drove up to camp, was up there. within a couple hours it jumped the 101. once it jumped the 101 we moved
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into action. we have animals. we have two of our torahs, one that is 300 years old, rescued from the holocaust that we saved as well as of course about 25 staff that live on site, in a few hours able to get everybody out. literally right when we were leaving, there was no voluntary evacuation. we went from voluntary, voluntary to mandatory very quick, within couple hours. i mean it was voluntary. it was not right at mandetory. so we got everything out that we were able to get out. and, as we were leaving, i was the last one there, and at our gates, we, the sheriff's department started to coming around and like basically telling everybody, did you get out? i was driving up the road. i told the sheriff who was standing there, we're all out, shalom institute down below. as we were driving in a caravan drive over into actually where the fire is going on now, the
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lake sherwood area, we're driving over decker canyon road and literally there were walls of flames to the right of us. and at some point i wasn't even sure that we were going to get out. we did. we were able to, but that was, i have been there for 28 years and been through several different fires, even the '93 fires in malibu. never seen anything like this. the direction where the fire was coming. the quickness, it was so fast. charles: right. >> we thought we had so much more time. even the fire department didn't at that point in the morning didn't even think it was going to come our way that fast. it was really incredible and pretty scary. probably just, you know within an hour or two, we were, you know, we, the fire probably came through our area. we kind of knew it was just going to, what destruction it was going to do. devastating. charles: rabbi, i assume you plan though to move back in.
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obviously the shalom institute is established there. but i think, californians in these areas going to have to sort of rethink the massive population growth in some areas like this? i know paradise, for instance, there is no way they were prepared for this infrastructurewise. power companywise. people can blame climate change and even the federal government but fact of the matter is, it feels like, as mankind encroaches deeper and deeper into nature, these things, you will be more vulnerable. are you prepared for that? >> we're prepared for that. again, i've been there 28 years. we have not had a major fire. may be in other areas there is also natural cycles, every 70 to 100 years, there are floods happen in the same way. these are, these are the same things. i think, you know, in terms of just, you know, our plan is to be there. our plan is to rebuild for future. we know it will take a few years. in the meantime, we're
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relocating all of our programs. we're continuing, and you know, we'll assess what's there. we have a beautiful site. charles: we're glad you're safe and we appreciate you sharing your story with us. thank you very much, rabbi kaplan. >> thank you. charles: coming up next congress is reconvening and prison reform is inching closer towards the senate floor. we'll tell what you you need to know because this is critical. we'll be right back.
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charles: prison reformed a very cats have a pretty good couple days with the fire of jeff sessions many thought the largest roadblock to reform. he is no longwer the white house. believe it or not the from turnnal order of police officers given to cause and dreams of
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reform. that may help it become a reality. adding icing to the cake, senate majority leader mitch mcconnell promises to bring a reform bill before the senate after the midterms and there seems to be strong bipartisan support. joining me to discuss, stacy washington, host of stacy on the right. stacy i thought you would be a perfect guest on this because there are some die-hard conservatives who think this is a very, very bad idea. i was in that camp for a long time but i do believe non-violent felons probably should be allowed the right to vote for many reasons but i want to get your opinion on this? >> well you know, charles, i'm actually right in the middle. i believe that non-violent offenders have every opportunity to basically be rehabilitated. other countries do a little bit better of a job in that. our prisons tend to be criminal boot camps. you go in not really a huge criminal, you come out, you have been trained to be a full-blown
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criminal. we need people first-time offenders out of that system. rehabilitation for people already in who weren't violent offenders is of utmost importance to us, we want to reduce their chance of actually reoffending this is wonderful development to see some different sides of the conversation come together and really put some substantial input into creating solutions here. charles: right. >> and a lot of the suggestions, charles, they're great. they're wonderful suggestions you really, i can't see any reason not to do them. charles: what is interesting also. in florida, the midterm elections, one of the amendments passed, i think amendment 4, passed by 64%. it will allow certain felons to vote in the state. it won't be sex offenders and things like that, it could be 1.4 million people. if i'm a republican, i start to do the math, 14% is larger than the margin rick scott has over nelson. if republicans,
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dyed-in-the-wool, old school conservatives think this is a bad idea, you know what? they will lose out on the million people, even 1% of them would make the difference in this election in florida. >> so when you talk about the florida election as a results it is a really, it's a perfect illustration. you have really broken that down in ways that consultants should be paying attention to. i don't think this is something that republicans have to oppose. i'm a republican. they don't call me stacy on the right for nothing, charles. i definitely want to see tough sensing, throw the book at criminals who are violent offenders but a lot of people are sitting in jail on extended prison sentences. they have lost their right to vote for things that we now see to be really, they're issues that need to be handled through treatment. so we want to be able to say, hey, you're still an american. you can still be a functioning part of society. we want to be able to craft a message that says we care about these people as much as democrats do, if not more because we want to see fewer people actually go to prison. charles: of course we should draw the line while someone is i
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have soing a sentence i think, let him finish his sentence. do the parole and everything else. reenter society because you did something really bad to offend society in the first place but by no means, some of the shenanigans we saw in florida were despicable. stacy, always great seeing you. thank you very much. >> thanks, charles. charles: want to switch gears. president trump while meeting with senior trade advisors today, tariffs on european automakers, expected to be a big focus. we have blake burman. he is live from the white house with these details. blake. reporter: charles, characterized to me earlier today as the president meeting with his senior advisors relating to trade here at the white house and one of the topics that would be discussed the potential for auto tariffs. of course president trump made the threat over past several months if there is not necessarily a free trade deal, a fairer trade deal, specifically with the european union, that auto tariffs, in the form of 20, 25% could be headed toward the
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eu they haven't obviously gone that far yet. i'm told that is one of the items under discussion with this trade meeting here at the white house today. keep in mind though, at the end of this month, in about 2 1/2 weeks, there is a major meeting set to take place as well with president xi xinping of china down in buenos aires, argentina for the g20 meeting. larry kudlow, one of the president's top economic advisors saying that the communication between both nations is starting to get better. >> we are now communicating at all levels. we're working as i say, on background material in preparation. we're waiting for china to come back with some thoughts. and process is on going. reporter: charles, i bring that up, i suspect issues with china and trade will be brought up at the meeting as well. one would think. by the way, steve mnuchin's counterpart, treasury secretary chinese counterpart is set to be here in the united states in the
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near future we're told as well. this also comes as the united states and the eu will have trade talks here beginning tomorrow. charles: from what i understand it is pretty explosive inside the white house. some strong opinions both ways. president trump being torn. appreciate it. blake burman, thanks. >> thanks. charles: the wild ride in the market has plenty of folks nervous. a lot of you have questions, tweet me, i'm@cvpayne. i will try to answer as many of them as possible when we come back. ♪
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charles: all right, folks, time for ask payne. start with george. please riddle me this, where do we put our invests funds in a falling market with rising interest rate environment? help, exclamation points. there are etfs play off rising rates. there is etf for everything. some investors opt for short-term bond in this sort of environment. in the stock market i think you should look for companies with little debt, great growth potential. names that are paying hefty dividends. great news, the best sectors historically in this environment are technology and energy. they have been hit to the point where there is also a lot of
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value. there. for instance, chevron is a name down with crude oil but it had a great earnings report. fiscal year 2019 estimates they continue to climb. right now wall street looking for $9.84, that is from $8.77 from three months ago. they're paying a $4.48 dividend. that is almost a 4% yield. where do you see the dow and nasdaq ending up in 2018? to i expect them all to be higher. i think the selling is very abrupt. there is back and filling and maybe a retest. technicians say we have to retest the lows. hoist toreally, next leg up we see them happen without retests that doesn't necessarily happen. walking water wants to know, apple is a stock a long-term hold. have it in my ira for many years. the company will only continue to grow. sounds like a statement and a question. i tell you i'm not going to sell
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my apple in my retirement account for a lot of reasons, future drivers, from product innovation and 5 g implementation. even with yesterday's bad news, apple was best-selling electronic device during the alibaba singles' day. lumentum, the management said they could ramp up the same 3 dss from 10 million a quarter, to 50 million a quarter at some point soon. that suggests they have more products out there. same thing with finisar. they're receiving funds from apple to expand the sherman, texas, plant. something could be around the corner. i think all of this will be shored lived. he wants to know about emerging markets versus usa. that is pretty simple. usa, usa, usa. wall street keeps telling you emerging markets. stick with america. focus on a mix, have some of the high-flyers but also some value in your portfolio. material names, industrial names. soon i'm not there yet, soon even consumer staples.
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investors and top executives today meeting to talk tech trend and regulations at "the wall street journal"'s tech conference in laguna beach, california. susan li is there. and has the latest susan. reporter: hey, charles, we're kicking it into high gear at the d-live event. we heard amazon. had to picking and choosing of crystal city and long island as the next headquarters for amazon. david limp said there are two reasons why we chose the cities. based on a lot of data and yes, gut feel. which cities would attract the best talent and where people want to live. they chose these two cities. we heard from waymo, alphabet's self-driving war will start up services next couple months. it will go to a select number of riders in phoenix. the early demand to come from
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businesses like walmart. but i would say the theme this, these few days here at this event has really centered around the relationship between the administration and tech. what about future oversight and regulation? i caught up with steve ballmer, former microsoft ceo, billionaire owner of the l.a. clippers. i asked him his thoughts. take a listen. >> i think it depend on the company. i don't think microsoft has much risk of regulatory issues. we certainly had our in the past. i think the companies particularly that use people's information as part of how they monetize, that would include facebook, that would include google, the folks who sell advertising i think they're going to have to be really smart at engaging with the regulators, not putting their heads in the sand and really trying to to wok out what the ride thing is to do. >> a lot coming up. gwyneth paltrow and we'll hear
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from kevin hart in a few hours. charles: thank you very much. change course in a second and send my thoughts and prayers and to friends of herbert london, founder of the london center a true scholar and patriot. everyone that knew him knows he was all around nice guy. he will be missed. i will miss our conversation and his witty brilliance. we'll be right back. hey there people eligible for medicare.
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charles: it's been one roller coaster of a session today on the street. the dow jones industrial average right now off 92 points as we head into the final hour of trading. here now, ceo and chief investment strategist, robert luna. it feels like whenever we get these downdrafts there's nothing to stop it. we go down so violently and so quickly, i know investors must be becoming more and more discouraged. is that a good thing or a bad thing? >> i think long term, charles, you know the old adage that bull markets climb worry and i think we got to that point at the beginning of the year where it seemed like there wasn't anything to worry about. we had a huge rally in the s&p 500. only thing that was kind of the early warning sign was some of the foreign markets, emerging markets like you talk about. we are starting to enter bear markets but there really wasn't a lot to worry. but now it seems like there's nothing positive that can get the market moving in the right direction. so i think long term, you want
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these types of worries because it creates opportunities. we had the s&p 18 times earnings, now we're at 15. there's some good stocks out there that are looking pretty cheap to us. charles: what do you make, i would think the proxy for today, for instance, would be home depot. spurts out the gate, great earnings, great same store sales, great guidance, then as the street goes to start to sift through this they become extraordinarily critical. look at the comp guidance, it was three months ago, not the more recent month. listen, again, it's a good thing but it's also somewhat discouraging. but ultimately, what changes this, what changes the sort of mindset on the street where you can see the bright side of things rather than right now, seeking the most negative element and acting on that? >> well, i think home depot's a pretty specific story. the stock isn't cheap. it has had a nice run, and charles, one of the big worries for the market right now is interest rates. we are already seeing existing home sales, new home sales, declining. home depot happens to be right in the middle of that.
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so absent a correction, there's not a lot of value investors that are stepping in. people aren't really looking for it to accelerate top line growth going forward. those numbers are in the rear view mirror. i really think the big issue right now is trade with china. we need to get something solidified with that. when you look at the s&p 500, 44% of those earnings are coming from abroad. the idea of decoupling and having the emerging markets in the bear market and that's reaching all-time highs is not sustainable. that's why we are sitting up 3%, 4% on the s&p versus where we were a couple months ago. chdz beyond th charles: beyond that are you concerned about the dollar being so strong? it hurts the companies you just mentioned. yesterday it hit a new 2018 high. i heard more companies complain about that than anything else in earnings calls. >> that's kind of a stealth issue. not a lot of people are talking about it. it's great you bring that up. dollar strength is absolutely going to hurt those companies
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that are global, companies like procter & gamble that everybody owns in their portfolio. so today, actually in the morning, you saw the dollar weakening, you saw china up overnight so that was a little bit of a catalyst. that's something long term we need to rectify. charles: fantastic. thank you very much. appreciate it. the dow down 109 points as i hand it to liz claman. liz: earlier you guys had the bug on oil. we should do that again. oil is crashing and burning right now. it is moving markedly lower in the after market. we are all watching that and also breaking news. get out the whipsaw. wall street sawing back and forth, the dow down as many as 193 points, jumping up as much as 123 points. guess what? we crossed the unchanged line 90 times as the markets digest a flurry of headlines in this final hour ranging from a possible brexit deal, yes, to an oil blood bath and new trade talks with china. president trump not only


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