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tv   Closing Bell  CNBC  February 16, 2018 3:00pm-5:00pm EST

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hour, and it could, the s&p and nasdaq on pace for their best week in really 6 1/2 to 7 years. the dow, the best week in about two years. pretty incredible rebound for equities contessa, thanks for being with us. >> thanks. >> thanks for watching "closing bell" -- >> "power lunch" begins -- "closing bell" begins right now. "closing bell" begins now. welcome. i'm kelly evans in the new york stock exchange. >> been hosting too many shows i'm bill griffeth. major story out of washington, you've been hearing about, moving the markets to some degree it's about russia's involvement in the 2016 election let's get to eamon javers for the latest on these indictments. >> reporter: we got a set of indictments today. two separate filings from the special counsel's office one detailing 13 russians indicted for their role in alleged meddling in the 2016 u.s. presidential election and the u.s. political system dating back to 2014
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also indicted were three russian entities and separately an indictment followed an american who was allegedly involved in related credit card crime. the deputy attorney general rod rosenstein briefing reporters this afternoon laid out a case called the internet research agency employed hundreds of people to the budget to the tune of millions of dollars in a long-running effort to influence u.s. politics. ultimately, in the 2016 presidential election to benefit now president donald trump here's how rod rosenstein described the elaborate effort by the internet research agency. >> the defendants allegedly use that infrastructure to establish hundreds of accounts on social media networks, such as facebook, instagram and twitter. making it appear those accounts were controlled by persons located in the united states they used stolen or fictitious
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identities, fraudulent bank accounts and false identification documents >> now the, bill, what i'm told here is that ultimately the special counsel's office is not going to have any new news for the rest of the day. we're waiting now for the president to react to this we have heard from sarah huckabee sanders told us the president was believed rod rosenstein making the point that no americans are accused of knowingly being involved here. saying the russian agents who traveled to the united states disguised their identity, posed as u.s. political operatives no americans here being accused of willingly participating in that we'll see what the president has to say he's expected to leave for florida momentarily from the white house. so, we might get a reaction from him at that point, bill. >> i have a question i mean, the headlines you see suggest they did this to elect president trump, yet i hear they
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began this whole process in 2014, which was well before the election cycle got started what exactly was their intention other than to just disrupt the process? >> well, the indictment lays out the motives here of the internet research agency as being so chaos in the american political system essentially to use america's political divisions against it and then at some point during the course of the presidential election, that motive also changed to include the russian effort to help donald trump get elected president of the united states there are allegations that the russian effort was involved in helping to undermine some of his republican competitors during the primary process and hillary clinton also during the election campaign, but also after the election campaign -- after the election, sponsoring political rallies by real people here in the united states on both sides for and against donald trump it's a complicated effort to show dissension in the united states but also during the
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course of the campaign to help the president. >> so chaos, they certainly have eamon, thank you eamon javers of the white house. we had that news that briefly turned the market negative on the session but we're back up about 70 points for the dow. it's been a crazy week because we were just about a week since the market bottom now. the s&p and nasdaq are having their best weeks since december 2011 the dow on pace for the best week of 2016 cisco, apple, boeing, goldman, pfizer, your top winners in the blue chips this week. >> sectorwise it's the tech industrials and the financials that have been the top sectors performing this week energy has been the worst performer. let's get to our reporters in all this bertha coombs working on the stock rotations. mike santoli, but first dominic chu. >> guys, if you take a look at some of the market's rally we've
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seen, it's been very strong off the lows we saw during the selloff. not every stock out there has actually participated in the upside as we get back to the record high levels, some stocks have been left behind let's give you an idea of what we're talking about. the s&p 500, within the s&p 500, about 310 of them as of earlier today hit 52-week highs, multiyear highs or record highs some time so far this year the first month and a half or so 70 of those stocks are still down 10% or more some traders call it, you know, bear market territory, correction territory, whatever you want to call it. these stocks have been left behind amongst some of the highlights of the stocks left behind, a transportation company like fedex down 11% from the highs it hit just earlier this year also texas instruments on the technology side down 14% from the highs it set earlier this year exxonmobil, a lot of talk about the energy sector these days given the moves in oil prices, it's after 15% from its highs and earlier this year.
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home builders have been a hugely hot trade, even lenar is still down 16% from the highs earlier this year. biogen off 16% overall, it really has become a market we're certain stock pickers who can actually identify some of the big bounces and some big drops are outperforming the overall market we'll see if those actively traded funds and managers can keep outperforming and picking the right ones back over to you >> dom, thank you. while some are sitting below their highs, other stocks lagging earlier in the year are leading the comeback rotation, we call it bertha coombs has been looking at the rotation of the winners and losers. >> it's been a little trading places we've seen this impressive recovery in most every sector. the rising tide has left some prior winners stuck near their lows expedia outperformed tripadviser back in january. now it's the biggest loser in
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the s&p, down 19%. trip adviser is up semiconductors, philadelphia semiconductor index up 6% just this week with apple component, qorvo up 9%, month-to-date another apple play, amd, down 13%. in luxury retail, ralph lauren was up s10% in january michael kors was a outperformer last week. take a look at coach parent tapestry, up two straight weeks, now up 6.5% for the month of february two big online consumer names -- paypal up 16% in january, has recovered about half of its losses its former parent, though, ebay, on pace for its third straight month of gains you see the number of stocks where they were okay in january and suddenly coming back so, people definitely picking
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their spots, kelly. >> that's for sure bertha, thank you. that's a good point. bertha coombs keeping an eye on market. the dow is on pace for the fifth -- five or six >> six straight day of gains record highs in january 26th let's bring in cnbc michael commentator michael santoli along with peter costa i think it's higher than record highs. >> the sectors you want to lead are leading. cyclical, tech, financials you've gotten more back than expected we were saying maybe tentatively that was a good trading low. here are some tests, i think, that still lie ahead of the market the s&p 500 has come back right into this zone if you look at the chart of a little congestion. last week's wednesday high, which is a failed rally. the 50-day average it's not too far above the
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year-to-date break-even levels when you gain 60% or 70% of a sharp selloff, you settle back from there if you look at past corrections. i think the market has to prove it can stomach -- willing to stomach those levels when bond yields are where they are. we were basically at a high for this bull market cycle volatility has been the story for weeks now. you'll notice something about the vix in the last few weeks is it's very sensitive to the upside and not the downside. we were around 17 earlier before those headlines hit of those indictments. here we are, even before a three-day weekend, i'm looking right now, just under 20 so, that should probably calm down if we're going to have a more stable market that can get back to the highs. >> are we right to be skeptical at the speed of the recovery for the market here or are we just looking a gift horse in the mouth? >> i think we're looking a gift horse in the mouth this is very unusual
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normally when you see any type of corrective action, it takes more than a day and a half this took more than a day and a half to get into corrective territory. why wouldn't the rally be the same the rally is now five days or six days getting back. potentially if you look at tuesday or wednesday, we might be talking about eight days to get back to the record highs again. it's not -- it wouldn't be impossible this is a new dynamic. this is a new market i think we're probably going to have to get used to these type of moves, the speed of which they happen and the speed at which we recover. >> because machines work faster than humans? >> i think there's liquidity problems the market dynamics and the market structure is set up so when the markets slide, there aren't those points where buyers step in because the computers are telling them not to. and in the equity markets here on the exchange, the dmms won't step in until a certain point as well so, what happens is the slides
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become a lot faster. you have one institutional player that's been taken out of the bigger institutions aren't in the market at all. they're investing in different ways they're not investing how they used to invest they look at a bottom and say, procter & gamble is down 10% it's time for us to buy 10 million shares. >> we have to be careful we can't say it's different this time. >> doesn't mean it's different meaning nothing in the past. the market does reprice itself in these step functions these days it does happen quickly i would point out, we're 4% below the highs. we went 15 months without a 3% pullback so, we're still in this zone of figuring out, sorting throughle exactly, you know, what the right levels are from here and we got a little too giddy in january. see if we can challenge those highs again. >> thanks, guys. santoli, we'll see you later peter, maybe you, too. can you take it easy on the woop woop today >> i won't do that you will never in your life ever see me do that
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ever >> i know it's coming. they're loaded for bear today -- or bull. we have 49 minutes left in the trading session. now the dow is up 120 but just wait, it could change any minute. >> the "closing bell" is just getting started. >> announcer: next, steel stocks shoot higher after a new plan for new moves for the industry plus, following the money on a company claiming to be a good place for investors. trying to capitalize on the bitcoin blockchain craze wait until you see what our cnbc investigative team found this is the "closing bell" with kelly evans and bill griffeth. kelly evans and bill griffeth. we're back in two minutes. stay with me, mr. parker. when a critical patient is far from the hospital, the hospital must come to the patient. stay with me, mr. parker. the at&t network is helping first responders
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welcome back check out the move in steel stocks ak steel and u.s. steel up 15% nucor up about 5%. a big boost on the news the commerce department is recommending tariffs on steel and aluminum imports from china, venezuela and other countries. kayla with more. >> president trump has not decided how he will proceed with
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the recommendations that the commerce department made public today. secretary wilbur ross said they don't all agree how to institute the steep stair riffs or quotes thats they instituted. ross offered three options, blanketed tariffs, targeted tariffs for those flooding america with cheap commodities and on steel that could be 53% or higher, and third is limit the amount of non-u.s. steel and aluminum coming in they have been advocating since the investigation opened in april. the ceo of ohio-based majestic steel. >> best case for domestic steel industry would be to see broad action and -- including tariffs and quotas there's not a one size fits all approach for now i believe we have to stop the bleeding that the domestics have experienced for quite a while now. >> gop lawmakers in many businesses broadly have voiced concern about even specifically
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targeted actions potentially sparking a trade war the influential lobby business round table today said, quote, we are very concerned using this tool will hurt the overall u.s. economy and american companies, workers and consumers, end quote. trump has until mid-april to decide how to proceed, though the administration is said to want to move rather quickly to make a decision. kelly. >> we'll see they have a lot of different decisions to make on trade lately thank you. let's bring in alan from realitycheck on this tariff. good idea or bad idea? >> this is not only a good idea, it's a long overdue idea because for many, many years, global steel markets in particular have been in massive glut the glut is being driven by government subsidized china overcapacity and the big loser in this
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competition has been the u.s. steel. global steel today has almost nothing to do with the free market values that americans rightly prize. something really needs to be done >> i'm just wondering what piece of this you'd like them -- to see them pursue there were three options kayla talked about a smaller across the board tariff, a targeted tariff on particular countries or some sort of cap. what's the best mix from where you sit? >> i favor the broadest base measure. and the reason is that the world steel market has become increasingly integrated in recent years, precisely because of this global glut which forces countries all around the world with their own steel industries to respond in one of two ways. either they help the chinese out by taking in chinese steel, very
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lightly reworking it and sending it over to the u.s. and that enables the chinese to escape the tariffs has imposed since 2015, or other foreign governments simply decide, okay, we're facing tremendous pressure from dump chinese steel ourselves. we'll step up our own exports to the united states. >> again, i would favor -- >> couldn't it be argued - >> i'm sorry. >> i get it. couldn't it be argueded any subsidy -- i mean, a tariff like that is a de facto subsidy for the u.s. steelmakers then? >> i don't see any other way to respond again, to this government subsidization that is not some one-off practice. it hasn't started to take place recently it is the way that foreign steel businesses are run it has nothing to do with free
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market values, whatever. in fact, what we have to realize is that the global trading system recognizes that the most effective remedy against trade practices that violate trade law or widely accepted commercial laws are tariffs there's no other way to do it. >> so, both sides just give up and hope for free trade. i guess we're naive in that regard. >> you very well might be. in fact, there was a very interesting article published in "the new york times" magazine a week and a half ago pointing out that to a very great extent, free trade for decades has been practiced more in the breach i'm probably mixing up that metaphor there's surprisingly little free trade that happens worldwide today precisely because government subsidization of overcapacity is common not only in steel but in many manufacturing industries
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it's common in cuago culture, to >> it sounds like we're deciding on targeted tariffs. we'll see what impact that has on the consumer. thank you. >> thank you. 40 minutes left in the trading session here it is like the weather in denver if you don't like the market now, just wait, it gets better the dow up 108 points now. up next, right blockchain stock rocketed after they changed their name and pivoted from medical equipment to cryptocurrency ahead, we have a special report on the company that you don't want to miss it will help explain the stock it will help explain the stock drop today as well in our investment experience around the world. call us or your advisor... t. rowe price. invest with confidence.
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president trump just tweeted about the russian indictments. eamon javers back. >> reporter: this is the president's first reaction to the russian indictments we saw from the special counsel's office the president tweeting, russia started their anti-u.s. campaign in 2014, long before i announced i would run for president. the results of the election were not impacted the trump campaign did nothing wrong. no collusion now, to give you a sense of how fast things are moving at the white house, the president just departed on marine one it's possible he pressed send on this tweet from his phone in the helicopter i just asked the white house press office seconds before this tweet came out if the white house would have any reaction or any statement. they said no indication of any timing for any statement seconds later this tweet emerged from the president the president eager to take political advantage of some of the facts that were presented by
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the special counsel's office today that are beneficial to his cause. you remember rod rosenstein said earlier today that no americans in this indictment are being accused of knowingly participating in this russian scheme also saying there's no evidence in this indictment that anything the russians did is part of this elaborate scheme, impacted the presidential election. the president, who has tried to discredit the mueller probe in the past, eager today to hammer home some of those points. >> the markets responded somewhat similarly we initially turned negative on the news of this probe and then as details were shared, we're back up 85, 87 points now. eamon, thank you eamon javers keeping tabs on this. it's time for a news update with sue herera. >> thank you, kelly. hello, bill. here's what's happening at this hour the fbi admitting it failed to act on a key tip that could have prevent prevented the florida high school mass car
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a person close to the suspect, nikolas cruz, called the agency's tip line, warning authorities he was capable of a school shooting. protocol wasn't followed and concerns were not passed along. florida's governor is calling for fbi director chris wray to resign over the deadly error. jeff sessions also wants answers. he's calling for a review of the fbi. meantime, mourners are gathering for the first funerals in connection with the rampage today they are saying good-bye to meadow polloack, an 18-year-old. vice president mike pence addressing the high school shooting during a visit to texas. he says it is, quote, every parent's nightmare and the nation is praying for the victims. you are up to date that's the news update this hour bill, kelly, back to you >> sue, thank you very much. we'll see you next hour. bitcoin has been on a roll
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this week, climbing 15%, trading near the key 10,000 level. companies from kodak to the long island iced tea corporation, a number of them have been looking to cash in on the crypto craze last october this medical equipment company called bioptix changed its name to riot blockchain and saw its stock rocket from $8 to $40 a share just like this there are risks to investing in cryptocurrencies our investigative team found out about those risks. >> reporter: we skasked richardi a rns to review right blockchain do you see any red flags >> yes, a company with change of control of the board i see a company that's had a change in business i see a company that had several dilutive issuances immediately
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following the change of the board and change of the business and i see a stock that has gone zoom what i understand, a significant amount of insider selling. yes, these are red flags. >> reporter: as a securities lawyer, what would you tell potential investors about riot >> well, in my position, normally i'm not telling investors whether to buy or sell securities in fact, that's not my job but, if the question is, are there things an investor should be wary of, i would say, absolutely there are things that when i look at these filings, they are outside the norm >> reporter: just this morning, riot ceo john o'rourke told cnbc he would do a live interview on "power lunch" only to back out ten minutes later when he found out i would be the one asking questions. in a previously e-mailed statement via his attorney, o'rourke told us increased regulation and transparency is ultimately good for the sector unfortunately, as with many new hot sectors it has attracted some bad actors trying to
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capitalize on the hype he went on to say, riot is all for increased transparency and properly imposed regulation. just this hour they released another press release, defending their cryptocurrency space saying they are, in fact, a blockchain company there's much more to the story and you can read the full version on cnbc.com. joining in on the conversation now is "fast money" trader brian kelly who started talking about cryptocurrencies before anybody else at this network. >> it was a while ago, for sure. >> it took a while for it to take off. >> it did. it's like any new technology, where the internet was around for 5, 10, 15 years before something happened same with bitcoin and blockchain it's nothing like a price rise to get people interested. >> sure. are there safe ways to invest in cryptocurrency - >> sure. >> -- or ways to invest you're not worried about? >> absolutely. when you talk about ways to invest in this, besides just buying the currencies, which i think is a legitimate way to do
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it, but there are stocks out there starting to get more revenue from this. look at taiwan semiconductor they make all the chips that all these miners are using people that about, how do i buy the picks and shovels? taiwan semi is a perfect example. ibm is using blockchain technology to build different platforms for walmart. that's been announced in the news there are ways to get exposure to this. these are companies that are fully transparent, fully disclosing exactly what they're doing. bill >> brian, what about the s.e.c.'s role in all of this if you're the head of the s.e.c., do you sit there and think that maybe riot blockchain or companies like them have pulled a fast one? and what do you do about that? >> well, the s.e.c. has done a great job over the last couple months and before that, actually, pulling out some of these companies. not necessarily saying, riot i'm not pointing out any one but in general, the s.e.c. has stopped trading on a lot of
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these. so, they have done a great job, in my opinion, with the regulation they understood that this is a new technology, they want to foster innovation. at the same time, their job is to protect the public and, you know, they have stopped trading on a lot of these names. >> because, brian, if you're a fan of the space, probably the worst thing you could see happen is where people do a name change, attract a ton of capital and perhaps add to the dubious associations that already exist around crypto, right >> certainly doing -- you know, doing kind of strange things with name changes, going from a biotech company to a blockchain company within a couple weeks is not the optics i would want to see for the industry this is a legitimate new technology that is currently changing the world you know, for me, i'd rather people focus on that than these type of things yeah, i would agree with you >> and we should highlight that riot blockchain does insist, guys, they do do crypto-related
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businesses they've made some investments in exchanges and also bought some mining equipment and say they will be mining bitcoins soon >> michelle, another great job i encourage everybody to go to our website and see the entire story. it's important you see the entire story that michelle put together with our investigative team on this company thanks, folks. see you later. >> see you later. >> for more on that investigation, you can go over to cnbc. >> i'm sorry, i stepped on that. >> it was great. i should have just let it go how about the markets? the market is up 100 points. >> despite this run-up, markets are still lower for the month of february joining our "closing bell" exchange during the woop woop that's inevitable in about a minute, eric from russell investments, steven sarge guilfoyle with us and we are rick santelli from the cme group in chicago sarge, you were just telling me, this is interesting, you've been taking profits here as the market has been running up,
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which tells me you are skeptical of the recovery that the market has seen in the last week or so. >> well, if you'll recall from this show that i had told you i'd gone to higher cash levels ahead of the whole flash correction at the depths of the correction i laid back in i didn't pick the bottom exactly, but i used the shock on the fact that i tried to buy the bottom three separate days so i got close to the bottom in the banking space. i figured the bank sector is where we would see the biggest pop. this morning i'm not out of my banks but i took partial profits in goldman sachs, bank of america. i took profits where i had them because that's what a trader does i try to spot the danger, react ahead of it. i tried to get the discount and i tried to take the premium. don't forget, it's also -- >> wait, just a second here. if you give me ten seconds, this thing will be over >> look, i'm as happy as anybody for a three-day weekend --
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>> the spo spot we're in now, is a 68.6 prsz retracement top to bottom and back. we're seeing that same spot provide resistance against nasdaq, across the industrial average, even across the russell. >> the question we've been asking everybody during the selloff is what has fundamentally changed that would justify stocks remaining low and not recover the way they have? what, if anything, has changed in the landscape >> i don't think a lot has changed. i think this was a higher inflation number getting the market to reconsider equity valuations, but, you know, we continue to see good economic data out of europe, good economic data out of the states and basically everywhere as long as that data remains strong and positive, i think we'll see the momentum we've seen last. i'm with sarge we're in the late cycle. late cycle investing is picking up dollars in front of the steamroller. it's a really good idea to keep an eye on the steamroller which we don't think is eminent but
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not that far away. we think investors should be thinking about diversifying their add sets, reits, diversifying, and that held up better during the recent draw-down. >> picking up dimes ahead of a steamroller, that's brilliant. rick, let's focus on the dollar. the yields have been going in different directions this week, but the dollar seems to have turned around a little bit is that significant for you at all? >> it really isn't about two, three hours before our time zone hit in new york, dollar index was at 88.25. and, yes, it's up over half a cent now but it's still down pretty big for the week. last i looked we were trading roughly around 89.13 we settled last week at 90.44. we failed to get above 90.60, and i like keeping these things simple, is the midpoint of the year for the high and low close for the dollar index
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lots of failures there if you try to look at groupings, which are important. you look at what -- you know, we pricked the bubble on the volatility trade being a main variable in so many portfolios i think that's a good thing. while it occurred, we saw strength in the dollar, a steepening yield curve this week we're seeing weakness in the dollar and tens have flattened by ten basis points. it's a nice way to group things together to get a macro view equities, hopefully they won't go up every day. it certainly looks like the worst is behind us you always talk about previous moves of a large magnitude we often talk about 87 in terms of the type of bottom in equities but what very few ever talk about is that day volatility did the same thing it did the last couple of weeks it shot up we didn't have a vix contract back then. you had to look at the straddles and strangles. but it was the low
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it was the low i think there's many things to learn from the past. next week we have supply it isn't the long end. twos, fives and sevens we'll learn a lot from that. one other point, the twos are up 12, the 30s are down 3 the long end is losing a little momentum having said that, this will be the seventh straight week, every single week for 2018 ten-year note yields have closed higher they're not closed yet but at 2.87, settled at 2.85 last week. >> can we get in here? >> i have to go. >> oh, geez. >> call him. text him do something thank you. you guys have a good weekend we'll see you later. >> 23 minutes still to go in the session. we'll take the pulse of main street and see how raietl investors are navigating these volatile markets [fbi agent] you're a brave man, mr. stevens.
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your testimony will save lives. mr. stevens? this is your new name. this is your new house. and a perfectly inconspicuous suv. you must become invisible.
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[hero] i'll take my chances.
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20 minutes to go to the close. dow hanging onto a gain of 80 points or so right now the s&p is up 6. the transports are still negative russell up slightly. the nasdaq, which has been the
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outperformer since last friday's lows is actually slightly negative today >> you know, it seemed like forever ago, but the dow was up more than 230 points at the high of today's session when we come back, a trader will tell us what he's watching into the close and if he thinks we could get back up to those levels at the bell "closing bell" is back in two minutes. experience lexus safety system plus standard. in the 2018 lexus es and es hybrid. lease the 2018 es 350 for $339 a month for 36 months. experience amazing
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yet another wild day for the markets with a little less than 20 minutes to go dow trading in about a 300-point range. up 232 at the high, down 51 at the low. >> joining us for more, matthew from virtue finance. first of all, it's been an insane comeback from this time last friday. what are you watching for as we head into the close? >> it's a three three-day weekend so we'll see how they close. if they can hold some strength, that will be a good sign especially after the runup we've seen. >> which has happened every day, strength into the close. >> you don't have three days off. that monday will play into the minds of traders you start talking about volatility can you differentiate the volatilities, political volatilities, bond volatilities,
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weather volatility, whatever it may be, equity volatility. that will differentiate. we've been able to say, you know, political volatility doesn't matter and the market has been able to absorb that. >> peter told us earlier this hour he thinks this recovery is for real sarge was sitting there saying he's taking profits as the market goes higher he's a little skeptical. break the tie. >> i think there are two camps right now. that's important for trading you need that ability to have a seller for every buyer someone will win here. they're picking pretty big bets at this point. you missed it last time if you were a seller. or buyer for that matter someone will be right this time. that's important that's what the volatility is showing that a big move will be coming which way, i'm not sure yet. i can't break your tie >> china is closed for the year of the dog, lunar new year holiday. the trading session lately, we've talked about this, we've seen late-day comebacks once
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europe has closed, your own dynamics of margin calls and so forth. but there has been some concern of china and what's going on there. a little year to date. do those markets closed mean there can be some calm or does that remain an open question hanging over everybody >> i think we've been the dog and everyone else has been the tail recently. we've seen markets catch up to what we're doing especially as we've traded to aggressively after europe's close. a year ago that would have been a bigger story we're leading and everyone seems to be following suit >> all right have a good weekend. >> you, too. >> thank you less than 15 minutes to go we have positive still for the dow but the nasdaq is, well, unchanged. it's been fluctuating between gains and losses the dow just jumped up up to 109 here so -- >> that's that late day strength. >> that you're always hearing about. the dollar, by the way, which
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hit some lows earlier this morning is now up about half a point. >> and fear not, yes, it is friday, that does mean it is david darst back with us he'll join us with his market theme of the wk eeand how long he thinks these gains could he thinks these gains could lastjob ♪ ♪ as a lifeguard in savannah ♪ ♪ i'm 85 and i wanna go home ♪ ♪ dropping sick beats, they call me dj nana ♪ ♪ 85 and i wanna go don't get mad. get e*trade, kiddo.
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this is how you know we're starting to get back to norm appear with the market acronym, david darst is here, good to see you. >> vix is back below 20 and david darst is back at post nine. >> thank you i'm attempted to say the four worst words that any spouse can ever hear from their ever spouse about the last time i was on when i said the market was going to sell off. those worst four words are, i told you so. we don't want to hear it we don't want to say them. but this week's acronym would be gains because you see -- you and kelly have talked all afternoon about the market has recovered about 65% of its selloff it's up about 6.5% from the selloff of about 10.5% you're working towards six days in a row of the market being up now. so, i think you've seen the
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gains come back. "g" stands for global growth good china, europe, japan and emerging markets, in addition to the united states. the oecd found all 24 countries in growth mode that's the first time that's ever happened. the "a" comes from the greek word ahemia, without blood, the dollar is anemanemic it's been a moxie to profits the "i" is inflation and interest rates i think the key there is going to be inflation. that's the driver of interest rates. yes, we have budget deficits y but interest rates have traditionally been the big mover. now, inflation we were crying like princess and the pea, the little pea in the mattress - >> love that story - >> that inflation was too low.
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now it comes back. we were looking for average hourly earnings to be above 3% the "n yt yt " nifty profits. this is the largest number of beats where they beat analyst expectations in earnings and in sales in history >> really? >> this particular quarter it started out about 9% to 10% looks like it's going to come in up 14% and it's my humble belief that the market can continueto rise driven by profits. that's our pal, mother's milk of the market, you know, larry kudlow but i think profits, you could see some traction in the market. if markets are up and helped by interest rates helping the bank stocks and that's where you want to be, the banks and energy, okay, and you want to be in emerging markets, europe, japan. their growth will be higher. their valuations are lower and their yields are higher.
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three reasons to be in the emerging markets and outside the united states. the "s," you're going to like this, is the spirits spirit is coming back, strengthening spirits. is that means corporate confidence, national federation of business confidence, national home builders, ism manufacturing, nonmanufacturing. all of these surveys are pointing to an unleashing. consumer confidence is elevated partly because of the tax cut. tax relief will help the economy here i think you can see some backing and filling. this has been a very healthy, long overdue -- you have all said this week after week, long overdue selloff and correction look, stanford university's medical school has done studies. people who get the flus and colds don't get cancer because their immune system and it's fighting and it gets exercise. this is the market's immune system fighting against
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complacency, fighting against low volatility we needed this next week we get the leading indicators so be on the look out for leading indicators happy chinese new year markets don't change when fundamentals change. markets change when beliefs change >> you just casually drop that. >> the -- >> gung hai fat choi. >> this is not might first rodeo. >> happy presidents' day happy birthday, usa. and go team usa in the olympics! >> absolutely. thanks. we're coming back with a oscountdown. not my first one of that one, either >> right after this. ♪
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still happy? good. then it's time for power e-trade. the platform, price and service that gives you the edge you need. e-trade. the original place to invest online. we'll get a review of what happened here. hour to hour, minute to minute, seemingly random movements for the dow. you look at the longer term chart, you see the gain we had after the market dropped out last week. too much too fast? who knows. technology, the best gainer this week in fact, all 11 sectors in the
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s&p were positive this week, so there were no losers but technology was the big gainer, up about 6% for the week energy was the laggard, but still was up over 1% slightly different story for the ten-year we saw it move on the hot cpi report the ppi on thursday was about as xmed and we're back to 2.88 on the ten-year it is the ten-year i'm looking at the wrong monitor. for the dollar, spent most of the week below 90, perked up a little today as you heard rick santelli say, he's still skeptical it's destined to go much higher from here it's been anemic, as david darst point out. it still points to markets anticipating inflation as that dollar moves lower take a look at the oil, wti for the week, kind of a round trip started the week with a high of 61 and change and we're back to
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61 and change today at 61.62, as a matter of fact, bertha coombs. the markets come back. equity market came back in a big way after bottoming out here a lot of questions about it's too much, too soon. >> yeah. it's kind of ironic. if you were in a rupp rupplestiltskins nam for two weeks. what's interesting is the change as we're coming back apple hadn't been the leader in terms of tech. it was about f.a.n.g this week it's apple, up 10% for the week and closed flat on the session. but we're really see people pour back in there. obviously, the warren buffett/good housekeeping seal of approval. >> that's warren buffett's biggest holding. >> take a look at the chip stocks that have gotten hit so
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hard lam research, applied materials, chip equipment makers. we are still seeing -- this economy is still moving forward. people are back looking at fundamentals. >> a lot of momentum higher this week as we finish up just 22 on the dow. can it continue next week? to talk about that coming up in the section hour of the "closing bell" with kelly evans and company. have a good, long weekend, kelly. ed >> thank you, bill welcome to the "closing bell." i'm kelly evans. here's how we're finishing up the session on the wall street up just 16 points. at the high of the session we were up 232 today. even in the last hour we were consistently up about 100. we dropped into the close, managed to stay in the green the s&p adding just a point. the nasdaq went negative by a quarter of 1%. the russell 2000 is actually the best performer today the russell has added
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about 16 points, 0.4% gain the transports were negative on the bell that volatility gauge sitting just under 20 today. a little elevated. the dollar hit some multiyear lows this morning but has climbed back by half a point we'll talk about all this, interest rates, too, and this crazy comeback we've had from this time a week ago joining me now is cnbc senior markets commentator michael santoli as well as evan -- you didn't show up last week. >> two things. patriots lost, so i couldn't show up. and the second thing was, i really wanted to be here to take my victory lap for what i said the week before. yeah, i'll come back to that one. >> everyone else is already doing that. >> i can go to the videotape >> sarot is also here. welcome, everybody cisco was the big winner in the dow this week. it had that earnings report and a huge capital return program. caterpillar -- cisco up half a
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percent, caterpillar down 2% that's for the session today but that was the week's biggest loser. on the s&p leading the way was csra after acquisition by general dynamics biogen was the big loser what a week it's been, mike. as much as -- as many s superlatives about the selloff, we could have the same with the dow and s&p 500 -- >> i would say almost as many, mostly because the market had every reason to stay skiddish. i think today what you did see is it's a little winded after this kind of straight-up move over five days the volatility index has stayed elevated you can't lose sight of the fact there's a little oversensitive there. we're up at a logical level for this little bit of a rally i still think the whole process, the drop and the comeback are part of the market trying to figure out the proper value to put on current conditions. it's not just about, you know, the shock of the volatility
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selling funds and also not just about interest rates it's about the whole package. >> interest rates had a big piece lately i wanted to ask you about this, mr. famous tpt - >> it's come back quite a bit. i have a smaller position than i once had because i do tax law selling last year, but i still have about 40% of my initial position that's been well i think if you go long-term bonds are down probably -- treasury is down probably between 6% and 6.5% year to date it's been tough for the bond market the overall bond index is 2% down year to date. >> the instrument we give you a heart time about is short treasuries when they're down 6% or 6.5% this year, that's good for you, but does it make you think twice after seeing what just happened with the xiv hanging onto instruments -- >> no, no. i mean, it's -- i don't want to go into the details but those leveraged instruments are very expensive to hold and expensive because they're leveraged.
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the longer you hold them, the more expensive they become you have to time your moves in the etfs >> is that true for the tbt? you held it long enough now -- >> the volatility, i don't understand those etfs at all you know, these are much -- these are probably more straightforward but tough instruments. have you to get the timing exactly right. i do think the story in the equity markets will continue to be what's happening in the bond markets as i did point to that friday and i think it remains to be seen if, you know, yields go up another -- if the ten-year goes up another 25 basis points, what the fallout will be. i don't think that's over. >> so, now we've gone up to 2.9% arguably on about the best run of data for that move you could have so, we could have some mean reversion there. do you feel strongly we're going to 3, 3.25, 3.5? >> the thing i feel strongly about is what we talked about two weeks ago which is you're entering an unprecedented period of unwinding by the central banks across the world
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and nobody can tell you, oh, this is the way it's going to work out nobody can say, oh, yeah, we looked at -- it's unusual what's happening right now. you have syncronist global tapering it's a big question -- >> that brings up one of the questions we have here should investors fear a retest of the lows now that we've had this kind of ripping comeback in the markets? >> this is not going to be a straight line back to where we were before. >> by the way, that's what everyone said on friday. >> right >> and it's been a pretty straight line this week. >> it has. it might go back i see the rest of the year with lower lows and higher highs. there's so much -- as you mentioned -- >> did you just saloer lows and higher highs >> yes >> a wider band? >> wider band of volatility. within that there will be different stocks and sectors that will do well. one of the things driving this market going forward is not just by the index it's really been by companies that will do well with global growth i think that's where you want to
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play, not just be part of an etf or index >> just on that, because this is one stock we've talked about in the past, take a company like boeing i don't know if we can pull boeing up. boeing was up again this week. boeing, i think, is up around 500% over the last five years. it's up about 300% over the last two years. it's kind of gone parabolic in the last year. and the ceo was on cnbc this week and he makes a very compelling case about trying to get 21 times next year's earnings, that doesn't seem -- >> he also said this is not cyclical anymore >> yeah. and that was the part that caught my eye because when people start going, we have a different business now that's the one where you always stand back and go, really? really, is it that different >> that's a really cyclical business airbus is doing well, the airlines are doing well. we also know there are times the airlines don't do well when you're in the airplane business, those orders can go so quickly, so fast
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especially if you're depending on emerging markets, which these guys are. >> it's a fair point we talked about how strong boeing has been. we want to get you information on the russian indictments affecting markets this afternoon with eamon javers. >> reporter: we have a statement officially from the president of the united states. official statement from the white house press office from sarah huckabee sanders saying, we cannot allow those seeking to sow confusion, discord, rancor to be successful it's time we stop the false allegations and far-fetched theories which only serve to further the agendas of bad actors such as russia. interesting there that the press secretary calls russia a bad actor in an official white house communication. that statement went on to use the phrase, no collusion in all caps in the print edition of the statement. the president and his team here eager to hammer home a point that rod rosenstein, the deputy
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attorney general made this afternoon at the department of justice, in which he said there is nothing in the indictments that were unsealed today that give any indication that any americans participated in or were aware of the russian influence campaign during the 2016 election. and there's no indication in this indictment of whether or not that affected the ultimate results of the 2016 presidential election two things the president's been eager to point out in the past the question going forward is, what else does the special counsel know, what other indictments could be coming and will those two statements stand going forward. that's all still to be determined, kelly, back to you. >> eamon, thank you. eamon javers at the white house. stocks turned negative briefly when the indictment broke and then we gained ground and then lost it. >> i don't know if it's a matter of being worried about the specific developments that happened today but i think it was an interesting little test of a market that last year
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tested everything. is this the market looking for more of an excuse. >> tells you about the character. >> or maybe it also is telling you this is advancing toward a stage when it's left to see what's on the table as opposed to journalistic reports of things that might be going on down the road. >> i think the bigger story, other than russia, will be trump's relationship with china. i say that only because it turned out china is by far was the big buyer of treasuries last year and much more so than japan. if you see where things might go, and i have -- you know, i don't want to get into geopolitics and guessing, but the whole thing is - >> his relationship with china does not have people saying the word -- you know, impeachment and that sort of thing. >> no, no. but in terms of leverage, these threats around tariffs, things like that. if you look for inflection points i would look to what
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china could or could not do with the bond market. >> i think the dollar will act the same way, too. all of this is going to move because if you see these factors and the dollar starts moving, interest rates start moving, that will affect all evaluations for stocks and people will get defensive quickly. >> let's talk about how the steel stock closed significantly higher when the commerce department separately recommended imposing heavy tariffs or quotas on aluminum producers. 15% moves in some steel names, a couple aluminum names are up 6%. ak and u.s. steel being an example. nucor a little less so what do you think about these developments we see a good one-day pop for these stocks, but is this is good for them? >> i like some aluminum stocks i wouldn't buy them because this is going to happen i want to own them because the fundamentals are there it's negotiation, fundamentals it's basically saying, hey, we're going to do this, let's come to the table. you can talk to the other countries to see what's fair this is an indication that things could get worse, all the
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countries, please listen i wouldn't buy specific stocks on this. i think the valuations will get out of whack. >> would you sell stocks because of these moves in the direction of protectionism and tariffs and so forth >> no, no. my view is i'm still 50% equities you know, i thought when it would get down to 10%, i was of the view, things really get bad, get 15% pullbacks, i would start buying but i think valuations are so pressed right now overall. and there's no reason other than yields not to be relatively bullish. meaning, i do believe in the global growth story. i think that's all good. but it's going to take something for me to get excited about. i just think boeing at 21 times next year with a new business model, that doesn't get me - >> last word >> some stocks down, whirlpool, gm, ford. >> anyone that uses steel and aluminum. >> by the way, that washing machine is getting more and more expensive after the last couple of weeks stay with us we have a lot more still to come on the "closing bell." >> announcer: next up, will inflation put a damper on the
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rally? if so, how do you position your portfolio to protect and profit? this is the "closing bell" on cnbc stay with me, mr. parker. when a critical patient is far from the hospital, the hospital must come to the patient. stay with me, mr. parker. the at&t network is helping first responders connect with medical teams in near real time... stay with me, mr. parker. ...saving time when it matters most.
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a lot of people saying inflation fears are behind the recent selloff how high is inflation right now? steve liesman is taking a look with our inflation thermometer. >> the market strong rebound makes it seem like it's gotten past inflation fears even though, indeed, bond yields are higher and inflation data has come in pretty hot how hot, you ask take a look at our inflation thermometer, how this week's data measures up first thing we're going to look at is core wholesale price that was hot this month. last month was negative. well above expectations but not out of line. it's modest right now. we'll look at it year over year soon that came in at six-year high. the hottest in five years, actually and then same thing with philly fed, hotter still was their pricespaid component, up 12 points as well hottest in six to seven years. the hottest of all is over my left shoulder here, the core
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cpi. the hottest month-to-month gain we've seen in 11 years but when we take a step back and look at it year-over-year, a different picture. it's really quite modest right now, 1.8%. we could see that move up a little bit more if we get numbers like we had this month and the wholesale price number is even higher you can see that in this next chart we have when we look at them, you can see the stable core cpi with the rising ppi let me mention profit margins for companies. let's take a look at several significant dates when it comes to inflation or the things on the markets. our new fed chairman, jerome powell, gives congressional testimony february 28th. get his ideas about inflation and the overall economy. march 1st, the pce, along with some manufacturing surveys with price data in. this big one here, march 9th has the wage data, jobs number and
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wage data that ended up spooking the market, and cpi and ppi, put those on your calendar because those are important events for the market, kelly. >> major ones. good stuff let's bring in larry kudlow and sarot and our panel. larry, how hot do you think inflation is >> i want to break some news on the show i basically agree with steve liesman. >> i thought you might. >> i basically agree there is a whiff of inflation. it's a small one i wouldn't get hysterical. i think he's right i'll go to the core of it. >> what are you agreeing with, there's a small whiff or not that much of it? >> both. a small whiff. overall, it's not that much. >> i like to associate myself with my colleague from connecticut's comments. >> listen, i've looked at this i had a long talk with arthur
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laffer about this. the dollar exchange rate has gone down by 10% and gold prices have gone up about 10% i think the inflation rate, the basic inflation rate, which is the pcde, which has been running at 1.5%, i think that will go up by 10% this is just back of the envelope stuff 1.5 you go to 165. up by 15 basis points. but, i think it's essential, and i'm worried about this more than i was a week or two or three ago, its essential the dollar stabilize and i would like to see the dollar a bit higher from these levels i don't want it to drop any more therefore, the treasury needs to talk well of the dollar, not badly. the federal reserve should retire reserves, keep shrinking their balance sheets - >> what you're saying is you don't see a lot of inflation pressure from here unless the dollar really starts dropping. am i getting that right?
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you're not one of these people who says - >> yes. >> -- it's coming, it's here, it's going up. >> no. >> we're at an inflection point. >> i don't agree -- as you know, i don't believe higher wages cause more inflation i don't think more people working successfully causes inflation. i think inflation is still bad money, excess money. you can't look at the money supply anymore for many years i've used the dollar as a proxy. i like to cast an eye on gold and commodity prices there's no question that those indicators are showing a bit, a bit more inflation so is the tips spread. most rise in rates have been from real rates off tax cuts and the stronger economy yes, i can see -- i think steve is right and -- >> what is the stock impact you think is most likely from the trends we're seeing right now? >> so, if you see inflation coming back, you want to own companies that have pricing power. you want companies that can pass it onto the consumer or
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corporations so you have banks. banks are perfect companies that have the ability to take interest rates as they go higher, lend a higher rate, maybe not give the rates they want businesses going to start doing better, make more money. companies like bank of america, jpmorgan, first republic, all those companies are going to do well in a time like this >> would you steer completely clear of bonds >> i would stay -- if the fear of inflation is coming, you want to be out of more than ten-year bonds. >> when you say inflation is coming, do you mean accelerating inflation or we have inflation at all in the 2% range and that's - >> we have more inflation than the last couple of quarters. the question is, what is the trajectory of that inflation that's what the market is trying to say if that second derivative is manageable, the stock market won't get these huge hiccups you go to 2.9, 3.1, that will throw some algorithms off and you'll have short-term
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inflation. >> you have to ask yourself a basic question from an investment standpoint. are we seeing a cyclical up-trend in inflation in an otherwise secular downturn in inflation? and i really subscribe to some of these secular forces here that's globalization that's technology. all of these things drive down prices i was looking at a report. i'm not ready to talk about the details yet. but somebody looked at internet prices and found those same prices included in the cpi are actually much lower on the internet that is included in the actual inflation indicator so, i think those forces are out there. i think what you have is a cyclical up-trend, something for investors to take note of. the the bigger, more important thesis here is one of technology and ultimately globalization >> well, on this point, by the way, on this point, once again, i am forced to agree with my colleague and friend, steve liesman. >> it's not so bad, larry. come on over it's great >> it's very enjoyable
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>> i don't believe in the cyclical stuff but earlier the market professional you had, i think a tiny whiff of inflation. i'm looking at, you know, maybe it's going to go from 1.5% to 1.75% at this point. now, if the dollar keeps falling on a sustained basis, that's bad. and that's going to drive up inflation to 2 or more and push up interest rates. you know, sometimes a little tiny whiff of inflation is good for stocks the economy is alive and well. it's not lower tax rates. >> it's a supply side tax cut and it's going to increase the economy's potential to grow. but the dollar is absolutely essential. >> larry, it's evan. you and steve and maybe sarot, you're talking about these issues as if somebody has the ability to fine-tune all this stuff on the margins you're talking about 0.1%
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increases of cpi and all this. the big jumps we see are not because people are suddenly paying more for your cornflakes over amazon. it will be because wages finally take off it will be because there's labor pressures. it will be because things happen that are not just about the internet it's about labor union organizing airports or things like that all of a sudden. what's much more likely? >> no, no. that's exactly what i'm arguing against. actually, i want to giveeven more breaking news janet yellen had this story right when she argued in a speech a couple months ago before she retired from the fed that the fed's so-called tight labor market conditions causes inflation. she said that mile hasn't worked in 20 years. she's right. >> can i add to that >> no. let me -- -- >> quicker than productivity that's all i want to say it's not inflationary for wages
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to go up >> all i want to say the federal reserve, if the federal reserve permits the dollar to keep falling, and all -- >> it's not these deficits >> it seems like the only possible explanation right now. >> no. i don't. i think the dollar is the key. and i think you should focus on the dollar inflation is not about wages. >> if it's not tightening, how is it the dollar is not falling? >> look, it's a signal, kelly, there are too many dollars out there. they have to bring in their balance sheet, they have to retire reserves -- >> you have a lot of people shaking their heads, larry >> you have a federal government about to put $1.2 trillion more air into this particular balloon, mr. kudlow. and i think if there's a source of inflation, at least at the outset - >> no, no. >> let me finish at the outset of the tax cuts, which i think it's very hard to argue that the first year or even two has a supply side effect because you can't buy the machines and put them in place
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and increase productivity. it takes some time, larry, to do that this initial impulse is going to be inflationary from the tax cuts. >> this is where we disagree. >> okay, okay. >> respectfully. take a look at all the economic data we are at the front end of a huge business investment boom. that is starting to react to the lower business tax rates that is counterinflair's that's like having a huge crop of apples and the price -- >> we have to go we'll give you the last word are you investing around an inflationary, weak dollar, high def sdeficit kind of environmen or not >> i want companies with pricing power, that have the ability to increase revenues and bottom lines. not just cut costs and keep on fighting for cutting extraneous expenses. >> you sort of didn't -- that's sort of a wishful -- >> so, i would say, what i want to do is avoid consumer staples,
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telecom, some reits and be in growths, industrials, financials. >> i agree >> guys, thank you very, very much we appreciate your time on this friday afternoon that was great stuff steve, have a good show tonight. 35 minutes -- it's not 35 minutes to go. we just closed coming up, walmart and home depot shares are on different tracks "fast money" traders will talk about how to trade these retail names ahead of retail earnings. we have a shocking look at how seafood may come to your plate through illegal means.
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this is the ibm blockchain, built for smarter business. built to run on the ibm cloud. the next time you eat a salmon or tuna sandwich you might want to ask how that fish was caught a new cnbc documentary looks at crime in the global fishing industry we have a preview from singapore. >> reporter: like many enslaved fisherman, he was smuggled into taiwan by crooked brokers who promised him a good job in a factory. instead of rolling up to the factory, they roll into a fishing port you know, the guy gets out and he's in a warehouse. a couple young toughs come and control him. lock him somewhere he's done for. that's it. next day, two days later, he's put on a fishing boat. fishing captain looks him over,
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offers a price, buys him, he's on the boat. >> reporter: buys him? >> buys him. >> reporter: he guys the guy >> buys the guy. >> don't miss the new cnbc documentary "oceans of crime" at 8:00 p.m. eastern and pacific. time for a news update with sue herera. >> thank you very much here's what's happening at this hour, everybody. the broward county sheriff is holding a news conference right now on the florida shooting rampage. sheriff discussing the ongoing discussion an fbi official making comments regarding the bureau's failure to follow a tip that could have prevented that shooting. florida senator bill nelson is urging president trump to reverse his stance on assault weapons and background checks. he hopes it will be a turning point and the government will get tougher on gun control. meantime, the justice department announcing 13 russians and three russian companies have been charged with
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interfering in the 2016 presidential election. the defendants are accused of posing as americans and creating false online personas and social media pages. also involved, a california man% he pleaded guilty to unwittingly selling bank accounts to russians meddling in the political process. and the cdc's latest data shows the flu iswidespread in every state with the exception of oregon and hawaii it reports the vaccine is just about 36% effective in preventing the flu we still have a couple more weeks to go, at least. >> so glad i got it. >> i know. >> and there's still time to get it. >> absolutely, there is. it will lessen the symptoms if you do get it. >> exactly sue, thank you very much have a great weekend. >> you, too. >> let's get to some other big stories in our rapid recap >> wall street pointing to another higher opening the s&p 500 tries for its best
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week in nearly five years. >> shares of coca-cola are up in the premarket. the dow posted better than fourth quarter results with organic growth up 6% in the period. >> keeping our eyes on bitcoin, which is up more than 25% for the week as it crosses back above 10,000. >> people know that you have to regulate inevitably electronic exchanges so you'll see regulation the close her we get to that, it's going to go way up, get regulated, and go way down. >> they recommended steep tariffs on steel and aluminum coming into the united states, moves intended to restore production capacity in industries that have suffered from cheap imports flooding the market. >> stocks turning lower after robert mueller indicted 13 russian nationals for interfering in the 2016 election. >> the indictment charges 13 russian nationals and three russian companies for committing federal crimes while seeking to
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interfere in the united states' political system. >> here's how we're finishing up the session on wall street while we barely stayed positive on the dow, up 16 points at the highs we were up 232 today. >> still was a great week, best in six years. home depot and walmart are set to release their earnings on tuesday when we come back from the long weekend "fast money" tim seymour and steve grasso are here. you get to coast - >> coast >> like they do on the ice in curling. >> i'm not agreeing with that. maybe steve coasts >> but coast could be a good thing. are you assuming we're riding trends i'll be the coaster. >> what are you coasting on, home depot or walmart? >> walmart had a great year last year it's starting off to have a decent year this year. their numbers could be a little chunky either way so you can't
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read through flipcart is a positive another way of them competing with amazon. i think it's - >> you think expectations are too high >> you have the 50-day that's actually below them. there is some support in the name, but i would rather -- would you rather, tim? i would rather pick home depot -- >> homeaway -- >> well, there's no coasting for walmart. there's no coasting in the consumable space in hard line. i think the competition is unbelievable you're starting to get some inflation so consumers hate inflation but retailers love it. i still think so much good news, so much amazon is priced into walmart. the multiple is rich home depot was treated like an interest-rate sensitive stock and it's not it's best position. >> the price targets in home depot. the average street, if you average them all up, it's above $210 it got beaten up to the macro market selloff. >> home depot had been reporting three weeks ago -- i mean, it's
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a completely different landscape right now. >> home depot has a lot to give back in terms of outperformance over a number of years this is $210 billion - >> more than walmart >> no, they both do. i don't have to either oh, come on. >> but you could. >> but these are the guys hiding in these two retailers when all of retail everywhere else was in trouble. now people feel like there's more leverage in other retailers that are not best in breed, mega cap, you know, walmart, home depot. >> you just finished it. best in breed, mega cap. >> they could take a year off. >> why not go back into it >> both of them. >> you had a real fast forward takeoff with macro market. for me, they got thrown out, you know, for the last week or so. i would think they have tailwinds, more home depot. >> home depot is growing margins, growing top line. they're going to grow 15% to 20% without the benefit of the tax i want to hear what they have to say about that. >> effective tax rate is 37%
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before the corporate tax cut. >> wow we'll see. thank you. this was fun. >> great to be here. >> we should do it more often. >> we shall. >> tuesday you're back or the following -- >> i'm away next week. >> you have me all week. >> oh, excellent. >> we'll facetime you. coming up, we'll take the pulse of how retail investors are weathering the vatolile last two weeks on wall street and where they're putting their money right now. stay with us
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market's been on a wild ride in february. up next, we'll ask one retail investor if she thinks this week's comeback is for real or if she's concerned about another selloff. we'll talk with olympic figure skating 1988 u.s. gold ate l winner brian boitano, see wh hthinks about the competition. in pyeongchang stay with us ♪ feel that? that's the beat of global markets, the rhythm of the world. but to us, it's the pace of tomorrow. with ingenuity, technologies,
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welcome back it has been a wild ride for the market the dow alone has recovered about 70% of its losses during that sharp shelloelloff is the comeback for real let's talk to jackie welcome. >> hi, kelly great to see you. >> when we started selling off, did you immediately start making any investment moves and what do you think now about the way the market stands? >> well, i didn't make any other -- any special moves during the pullback last week. i lived through 2008 so that taught me a lot not to make quick moves. i didn't make any changes aside from selling a couple stocks that i intended to sell anyway,
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which was coach and toyota >> you decided to sell those on the way down or back up? how does it play into a longer term strategy in terms of balancing a portfolio? >> i was telling those on the way coming back. so, they were already on my radar. and amongst all the chaos last week, these two companies actually reported their earnings that were pretty good. they met my sell targets, so i sold them, but it was really hard to wade through and ignore all the other noise that was going on so, there were some companies reporting earnings last week that two of my stocks that reported did pretty good they met my sell mark, so i sold them they were intentional sells that i was about to do anyway. >> what about stocks that are buys to you here did any crop up during the
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selloff or now that it's been so quick a move, do things still look too high for you? >> you know, it was such a quick move the only stocks i was kind of looking for a little more pullback to get some more was like a berkshire hathaway, stocks i've always had my eye on and like to pick up a few more shares when they pull back but it happened so quick, you know, it recovered this week so not much has changed in a week, at it felt a lot like 2008. >> jackie, i had a question about -- not about equities, not about shares but about what you do with your cash. after you sell the shares, do you put that in a money market account? do you know what the yield is on that account do you put it into any bonds any amount of money allocated to bonds? because it's funny, but bonds have actually been probably the worst performing asset class since the start of the year.
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how do you think about that when you -- do you think about that at all >> i don't do very much with bonds at all i've been safe there usually i'm just seeing cash like in a money market basically what i'm trying to do is preserve the cash so when there are buying opportunities, it's available so, i don't invest in bonds at all at this point because i want to keep my money a little more liquid and i want to be able to buy equities and have cash on hand when the time is right. like last week, if i wanted to buy something, i had to have the cash to do it. i didn't have to wait for something to settle. bonds just don't seem attractive at all to me as a way to preserve my cash >> it's great to hear a disciplined approach thanks for joining us. >> great thank you. have a great weekend >> up next, we're going to head to south korea for a rare and up close look at the demilitarized
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zone with north korea. here's a look at the champions in the dow pfizer took the top medal, walmart with the silver. 'rba itwo. experience the 2018 lexus nx and the nx hybrid with a class beating 31 mpg combined estimate. lease the 2018 nx 300 for $339 a month for 36 months. experience amazing at your lexus dealer.
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coming up, it's all about curling. the united states women olympic curling team lost to switzerland last night in the second session. all eyes on the u.s. men as they face off against denmark tonight. that all begins at 5:00 p.m. eastern time. our own carl quintanilla towing the line at the olympics getting an up close look at the
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korean demilitarized zone. >> reporter: 160 miles long, about 2 1/2 miles wide it's a border barrier created by the korean armistice in 1963, intersects that famous 39th parallel north and divides korea roughly in half. all you see over there there are villages and people is that live in the dmz, on north and south korean side. occasionally you'll hear lough speaker pop began da from the propaganda village, they call it and residents on the south korean side with all kinds of special rules. there are curfews from midnight to sunrise, and they aren't taxed. any rice they grow is bought and distributed as dmz rice. here we are. we're inside what they call the joint security area. it is the zone within the dmz
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that for years allowed the north and south koreans to interact under the terms of the armistice that was signed in 1953. what you're looking at here are the south korean soldiers with their backs to us, but facing the north korean side. i don't know if you can see this sort of concrete see this sort o secret barrier on the floor about halfway past these blue buildings. that's essentially where the border is between north and south korea. now, south korean soldiers face the north korean counter-part. but when the north koreans do come out, they tend to face each other and not the south koreans. this has been a source of tension over the years there have been instances where over time hundreds of diplomats and soldiers have been wounded or killed because of the tensions between the two sides
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the armistice wasn't signed in this particular building but sort of in a big tent that was on this same location. and that armistice essentially laid down the rules where soldiers could travel, where you could deploy military personnel or put military equipment that armis cities has lasted this long there is a line that runs down the center of this table technically i am standing in north korea. this building is never occupied by the two sides at the same time if north koreans are bringing a tour in, the south koreans leave, and vice versa. one thing you will notice over here is a bridge in the distance they call it the bridge of no return when the armis cities was signed pows were given the chance to go to the country of their choice across that bridge but we are told once they did,
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they could never go back officials here tell us the fact that the joint security area even exists is symbolic of the hope that one day korea will ryu night. for now, it is the central location of one of the most intense military standoffs in the world. >> that's quite something, isn't it our thanks to carl. up next, 1988 u.s. gold medal figure skater brian boitano breaking down this year's competition in the olympic games. first, a curling lesson. >> while the object of curling is to get your stones closer to the center than your opponent's,
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we don't call every shot for the center sometimes we will put one out front, a guard and other times we will call a takeout to get our stones closer to the center and remove our opponent's stone at the same time it's complex, olympic curling, but here at our center, the winner buys the first round. let's begin. yes or no? do you want the same tools and seamless experience across web and tablet? do you want $4.95 commissions for stocks, $0.50 options contracts? $1.50 futures contracts? what about a dedicated service team
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welcome back as we continue to watch the olympic games in pyeongchang, men's figure skating is in the spotlight right now. olympic favorite nathan chen falling to 17th place after last night's short program. i'm wondering if he can even medal at this year's games our next guest, brian boitano, a three time olympic figure skater who took only the gold at the 1988 calgary games brian, appreciate you being here welcome. >> thank you for having me. >> nathan chen himself talked about the pressure that he faced. i feel so bad, i almost feel like i can't watch what do you think? >> you know, it's really hard. i mean he really was the marquee event. there are a group of athletes that are usually the marquee events, you know, the face of the winter olympics. it is a lot of pressure,
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especially for his age. >> right. >> i think what he needs to focus on now is the long program. in a weird way, maybe this took all the pressure off so he can just relax and have a skate that he will remember for years to come in the long program it's going to be hard, though. >> we were thinking maybe that would be the case after the first one. then this one, it got even worse. brian, i want to ask you something else you are a name we know brian boitano, the figure skater. how many people do you think translate appearing in the olympics to something like lasting success? i'm starting to wonder if it's as much of a curse as a blessing to be in the games sometimes, if it's not like a lotto curse. brian, what do you think >> you know, it's really difficult these days back in the days when we skated, we had champions that were champions for many many years. so the public got to learn their names, got feel that they were almost family members, that they rooted for them. and now with the new judging system and people being younger
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and trying such difficult things they are changing champions all the time so people don't get to learn about the new skaters each year they change so much they don't have a chance to follow them i think that's one thing missing with skating right now is following skaters and remembering who they are and rooting for them. >> brian, you mentioned the new judging system, and the fact that it essentially forces the contestants to try the edgiest maneuvers. it takes a mental approach -- when you are that close to the edge it makes it that most important. is there a sense that u.s. figure skating is not geared in way to get to the success under this regime? >> that's a good question. it's been a thought of mine for a while that when i was competing my coach wouldn't let me put an element into my program unless it was 99% consistent and i knew that i
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could hit it when i skated out there in competition, i knew in my gut that i could hit it. i feel a lot of these guys are pushed at such a young age to do so answer quads. everybody is doing quads and they have to do one more, one more, that they are putting elements in their program that aren't really consistent when you go into a high stakes event like the flks aolympics al this pressure, things can crumble apart. >> brian, we have to go, but two seconds to ask you what we have been asking all our guests, what what's the biggest money mistake you made. >> i was all in t bills in the '80s that wasn't a bad mistake, they were okay then i don't know if i have too many money mistakes >> wow that -- t bills? that was a surprise. >> i know, very conservative in his skating and his investments. it serve b served you very well. >> my dad did all my
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investments. he was conservative. yeah thank you, guys. >> brian boitano classic. minutes away from curling. men'compitn s etiocontinues tonight. u.s. versus denmartio >> there you go. take a look. beautiful evening, xxiii olympic winter games hello, welcome to another day of curling coverage on cnbc, nothing but curling except for occasional hockey.

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