Transcripts For CNBC Closing Bell 20151120 : vimarsana.com

Transcripts For CNBC Closing Bell 20151120

At the end of the day. Take a look at nike, thats been a big help to the dow, popping after yesterdays stock splint, they told it about it after the bell. We will tell you why much of the streets still bullish after all of these moves. When the last time a Company Split their stock in it happened all the time in the 90s. It started to happen a little bit once we got that round after 2009, things started to come back. Apple obviously did it and there was another example of a company that was under pressure to increase its financial moves, return capital to shareholders, now nike following suit. A lot havent and the average price of the stock is higher than it has been historically. As the Hackers Group anonymous takes aim at isis in the wake of the paris terrorist attacks we have a former member of that organization, of anonymous joining us live to talk about whether the war on terror will be won over the internet and whether Silicon Valley should be sharing its information with the government. But first lets kick things off with breaking news on chipotle. Dominic chu joins us with the very latest. What were watching right now, again, chipotle shares to catch you up, the shares are down about 8 , just hovering near their lows of the day so far, this after a couple different pieces of news came out. The centers for Disease Control posted their website, you can go to that seb site, this idea that theyve added three additional states with regard to the e. Coli outbreak as people possibly infected with that certain string of e. Coli that was included in washington and oregon that shut down chipotle stores there earlier on. Now, the states if you keep tale now include california, minnesota, new york, ohio, oregon and washington, a total of 45 people in that statement from the cdc say are infected with links at least to that same strain of e. Coli that was in washington and oregon. They also say evidence suggests that the common meal item or ingredient served at chipotle restaurants is the likely source of this particular strain of e. Coli. Chipotle has responded with a statement dated today saying it is working closely with Health Officials and it is not unusual to see additional cases after the first ones have been reported. Now, in an official news release chipotle says, quote, we take it incident very seriously because the safety of our food and well being of our customers is always the highest priority and, again, we also kind of want to bring you up to speed they say we offer our sincerest apologies to those who have been faegd. As we watch what happens throughout the course of this last hour of trading its going to be important to see how these things finish up. Over the last three months chipotle shares have been under intense pressure because of this e. Coli related tok move. We will bring you more details as they become available. Certainly a stock to watch for traders, guys. Back over to you. Dom, thanks very much. Lets tale this weeks rally. Bob pisani right behind us on the floor of the exchange. As we said earlier, its amazing, this could be the best week of the year if the s p can hold these levels. Last week it was the worst week of the year. I was standing exactly in this spot last week put up the s p 500 for the last couple weeks, the s p was down 3 on the week and a week later the s p is up 3 . We are exactly where we were two weeks ago. When i was standing here exactly a week ago the vix had gone from about 16 to 20, the volatility index, now its gone from 20 to 16, do you get my drift here . Weve gone exactly back where we were two weeks ago. Now, here is whats interesting. Some beaten up sectors have done remarkably well this week, etf gainers for the week, emerging markets have come back, so brazil they havent had a week like this in ages, brazil has been straight down, China Internet stocks strong there, aerospace came whack in a big way, obviously aerospace and defense big because of what was going on over in france and the Retail Sector was especially strong because the discounters came out with earning that were better than people anticipated and all the fears that Department Stores were going to be bad for everybody else really did not materialize. We saw select retailers bouncing back and of course nike ask having a grade day today. Global markets also did really well. So germany was up over 3 , that hasnt happened in a long time, they did really well, france up 2. 1 as well and sprain up 1. 8 for the week. My stock of the week im going to call for square. Here it is. Remember what happened here, 9 square was, 9 was what it priced at, 12 was the median, it opened at 11. 20, traded almost as high as 15. There it is, twoday chart for square. Right now down just fractionally 12. 71. A big sigh of relief in Silicon Valley over this. If this would have opened at 8 after pricing down from 12 to 9 everybody over there, all of those unicorns waiting to go public over there there would have been a bit of an earthquake. A lot of relief that even though they had to price it undo, give people a discount, the stock itself has been behaving very into isly in the last two days. Bob, we have to leave it there. Why have we basically cut our gains in half just on the session today . What are you hearing . Im not hearing a lot. Theres just kind of a quiet sense of exhaustion on the big gains that weve seen on the week. All the sectors are down just about the same here, we have seen oil move a little bit, weve rolled into basically a new contract. Its pretty much across the board slight decline. Thanks, bob. Bob pisani on the floor for us. Now to the biggest mover of that dow today, it is nike. Sara eisen joins us. For nike investors the holiday presents came early this year. Investors got the 12 billion buy back, a 13 Dividend Increase and a two for one stock split. On top of that helping to fuel a, what, 5 rally in the stock today to all time highs cementing nieks spot at the top of the Dow Jones Industrial average. Nike has been able to avoid the retail slump thanks in part to the strength in athleisure, its trendy, its growing and its a real stand out in an otherwise sluggish apparel environment. Also they have had pricing power, charging more because their innovation machine is alive and well and the company has been revamping its comply chain to make production and distribution more efficient. All of that has helped profitability and margins and also global strength. With nike particularly in china and western europe those places where many other companies are having trouble growing nike is posting double digit both in both geography. Why analysts remain bullish, 84 of the street says buy nike, thats the highest percentage its been in years despite what is a high valuation at this point for the stock. Its interesting as well to see just how bullish people still have on this name. When everything is working on you, when you basically pulled every lever, you know, it becomes ever harder to increase the price, but yet the sell side largely remains bullish. There is a few factors behind that. There are catalysts, for instance, the olympics, whenever these big sporting events happen nike ramps up its innovation machine and you see that in terms of a boost to sales. The other big thing that people say and we called talked to an analyst at jpmorgan, they said athleisure is a general trend toward health and wellness that millennials are choosing when it comes to all sorts of Consumer Products including food and he doesnt see it as a trend going away anytime soon. As long as nike continues to dominate the category it should continue to do well. Those are two reasons why the bullish beat is intact even though the stock is near record highs and up 40 so far this year. Companies in this category can be trendy, but that can be the kiss of death sometimes, youre trendy for a while and then fall out of favor. Nike never has fallen out of favor, the swoosh still hot, just do it is something that people say whether nike still uses that in their ads or not right now, but they still have held on to that cache of being an apparel maker in retail and fashion trends can change easily. It really has undergone a growth spurt over the last year or two, it hasnt always been like this and thats part of some of the supply chain efficiencies i talked about, its also part of china, bill. Nike was struggling in china for a long time breaking into that market. That turned around in the middle of last year, its been able to trump some of its competitors and started to grow double digits in that market taking share from other Global Brands and adidas has been falling behind. A few things have added up for nike as well as the broad strength of the category which was list lifted the nicies and under armour of the world as well. Sara eisen there. Lets get to our Closing Bell Exchange for this friday as we close out a pretty strong week for the bulls. Jim khan from wealth enhancement group, peter costa and Rick Santelli will be checking in from chicago as well. As bob pisani pointed out our worst week of the year last week, best week of the year this week potentially. Last week we were absorbing that strong jobs report, maybe getting used to the idea that the fed was raising rates but this week with the strongest week it became even more evident that the fed is likely to raise rates next month. Whats going on . Had. I think investors are finally getting comfortable with the potential of a rate rise in december. Like i said, im still not sure about that, but do you know what, as far as the investments are concerned, you know, the economy is doing fairly well, you look at the earnings mostly across the board, most of these companies can pretty much absorb a little bit of an increase in their borrowing wost st coulds. Its not going to be the end of the world. If we have a 25 basis point rise in december, if they can come out and say that we will probably have another rate rise at some point in the First Quarter of next year, you know, clarity would be very good, it would help a lot of people understand what its going to mean to earnings going forward. Rick, a quick word here as we keep an eye on why these stocks are moving off their lows, some people were chattering about fed moves today. Listen, i know the stock market had a good week, i like the way bob talked about it in the matter of a couple weeks down 3 , up 3 . The market may be getting more comfortable from an equity perspective, but were still a couple weeks away from the meeting and i contend investors are a little trigger happy but they are not contesting the move. Lets face it, theres a lot of liquidity in equities at least for the most part. Im not sure how many conclusions we can draw from that, but if you look at the markets its rather compelling, there has been major flagging no matter which part of the curve you combine with any other part of the curve, they are all flattening and that indeed is due to the notion that there may be a fixed income comfort factor there and of course when you look at whats going on with the dollar its going to Pay Attention to what rates are paying attention to. How it turns out for equities is anybodys guess. Thats why normalization is so important. We all hope it holds all its gains and moves even higher, but that comfort factor, that knowledge still is allusive because of policy. Jim khan, where do you put your money right now . If we are all guessing rates will go up do you go with the defensive plays or do you stick with anything that you feel is growth oriented right now . What are you doing . So i have to disagree with rick a little bit. One of our clients are asking us questions that are similar, whats going to happen with equities if Interest Rates start to rise. If you go back and look at the last four cycles of tightening equities have done quite well. If you look at the underlying reasons why it goes want to comments by fed member bullard which is they are going to respond to the data. They are unlikely to continue to raise rates in an economy that cant handle such a hike. If the expansion is accelerating as opposed to contracting you should see corporate earnings and margins respond positively to that. Over time you see higher margins at the end than the beginning. We are right at the beginning and we would expect when we get into 2017 and rates have gotten to whats more of a normal level that the equity market is going to be meaningfully higher. We are not afraid of equities in the face of rising rates. That is counter intuitive. I appreciate your perspective on that this hour and everybody. Thank you for joining us. We have breaking news. We have to go, guys. That breaking news involves airbnb. Dom chew back again. The latest valuation i rounds, airbnb is looking to raise about 100 million in its latest funding round and that that valuation would be 25. 5 billion. Again, a 25. 5 billion valuation selling 100 million worth of its own capital here to raise that money. Again, airbnb sees revenues per these sources of 900 million for 2015 and they do say that airbnb booked 23. 8 million rights in the Third Quarter versus 11. 3 million a year ago. This latest talk about unicorns, this time airbnb and uber who some out there say shouldnt be included with unicorns, in this case airbnb saying at least dow jones saying they have raised 100 million values the company at 25. 2 billion. We heard jim cramer say this week that as he looks at some of the valuations of these companies, airbnb may be the only one that really is worthy of it. We saw a difference between the private market valuation of square and what it was when it finally came to market, too. We have to keep that in mind. We have to go at this point but we are heading out to with about 45 minutes left in the trading session with a gain of 77 points. Were moving a little higher here, still off the highs of the session. Coming up Health Insurers rebounding from yesterdays losses, we have Bertha Coombs helping to explain that reversal. One week after the worst attacks on french soil since the Second World War parisians are getting ready to honor those who died in the terror attacks with an outpouring of noise and light any minute now and we will take you live there when we come back. When youre not confident your companys data is secure, the possibility of a breach can quickly become the only thing you think about. Thats where at t can help. At at t we monitor our Network Traffic so we can see things others cant. Mitigating risks across your business. 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Our chief International Correspondence Michelle Carusocabrera covering this important story in paris for us tonight. Good evening, michelle. Hey, bill, hey, kelly. We are just about a minute away from when parisians and french people were going to mark this moment one week ago when the first bomb went out, but it is not going to be a moment of silence, instead they are calling on people to make some kind of joyous noise, to make light, to light candles, to do something. The hashtag on twitter is 21 h 20, to mark the time, remember, here in europe they use military time or 24 hour clock that would be 8 20 in the evening. Were seen here lots and lots of people gathering, earlier we saw People Holding hands, people even dancing. This is the one place where people are going to be allowed to gather in mass because under the state of manual that was extended today by the Senate People are not supposed to gather in large crowds. We are about five seconds away. Lets see what happens. We dont know if there is going to be a lot of noise here at the place or where else in france at this point, but this is the moment now when the attacks began one week ago tonight. You can hear music in some places, we set up cameras all over paris. Here is actually pretty quiet, but we can hear the National Anthem being sung somewhere about a block away. This particular place has been the center of mourning because the bataclan theater which is just a couple blocks away is where the most people died, 89 people, the cafes where people died are just a couple blocks north of me. We should also say that today the death toll rose by one person from 129 to 130 people today as a result of the attacks. Remember, there have been many people still in Critical Condition in the hospital. All of this week. We can hear it, michelle, growing louder there behind you, im wondering as well what we know at this point about the response from european leaders to continuing to accept refugees across the continent, how that now as the week passed is continuing to shake out. Its been an incredibly difficult conversation. Paris is very divided, france is very divided, europe is very divided at this point. I heard angry words against Angela Merkel today because she wants to continue to accept refugees whereas in other parts of europe, particularly in france, they are quite concerned about knowing who is coming into the coun

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