Transcripts For CNBC Closing Bell 20170615 : vimarsana.com

CNBC Closing Bell June 15, 2017

Insights, and we cant resist this graphic the title wilfs world was to offset bank stories from me . I dont know. Were rivet by what you may have for us you wait. You really will be big stories. Anyway, we begin with snap falling to the initial Public Offering price, 17. Bob is at snaps close here on the floor of the New York Stock Exchange hello, bob take a look here we bounced two hours ago snap hit 17, right now, 17. 20. Public offering was covered, i was here for that at 17 march 2nd, high as 29 the next day, but started dropping, and when we got its first as a Public Company own may 10th, disappointing user metrics, disappoints growth metrics, stog stocks down here why is that important . Waiting for the tech unicorns to go public, and when you got one of these that is at 17 at its price, thats not a good sign. Thats a value conscious right nowing and with high price tech ipos waiting to go public, thats a problem now, weve had them go before their ipo price before, and you know what happened with facebook back in 2012 went public, and quickly dropped below the ipo price. It did recover, but it had a dampening effect on the ipo market for quite a while when it did that this stuff does matter more ipos in the next week or so, and well watch that guys, back to you. Bob, thank you so much for that not just snap, but broader tech sector hit today, and for more, Closing Bell Exchange with ke n kevin, and Rick Santelli is at the cme in chicago kevin, starting with you earlier in the week, we thought the tech side extenned losses, but, again, reigniting today. Is that a significant concern for you for the sector no, its not. Its not a significant concern for me because when you look at what tech has done this year versus the s p, its outperformed the s p by almost 9 so having a pullback like youre seeing today is only very minor. You know, tech represents almost 23 of thes p 500, so i think right now what youre seeing is just people taking some profits. Overall, tech is not that expensive, but, you know, you have the big five names out there that have, you know, gotten a little bit ahead of themselves kevin, if you had 17 and ha to pick a share of snap or twitter, what would you pick i would like to pass on both of them, but, you know, we dont pick individual stocks, so i would probably pass in answering that question, but, you know all right we usually use a broad basket of teches. Going over to john there, yeah, what would you say about both of the two, the tech sector broadly, and the impact on the market absolutely. Tech sector, looking at the fang names, they are household names, people are familiar with them, in the headlines every day the tech sector up 1415 as of now, thats attracted interest in the sector, and probably pulled up additional interest backsectors, money waiting to come into the market thats slowly participating. At this point, look at the participation weve seen in the market, s p, dow, up about 8. 5, 9 for the yearment investors have a reason to pause at this point right now. We talk about the fed. We talk about north korea. We talk about investigations into the Trump Presidency and election process investors are not fully scared away from that, but it gives them a reason to take a step back, possibly take the summer off until theres a big catalyst coming in at the end of the year rick, we talk about threats to the market, of course, we got a rate hike yesterday, and are investors asleep as to what we heard yesterday . Not just pricing in the rate hike this year, but we heard from the fed yesterday we could have three hikes next year yeah. You know, listen, im not saying that the fed cant do three hikes next year. Im not saying that the fed cant do one more or two more this year. The real issue in my opinion is Balance Sheet issues, frankly, and all adds to about how the flatness to the yield curve affects the financial secsector. Last i looked, especially after the crisis, a lot of the loans or benchmarks against an index whether its libor or a short rate, and add a lot of basis points to whatever the rate is so what we have left is that our government, our treasury and fed specifically go from buyers of securities and holders of securities to sellers of securities its important i think that is an issue, maybe the market ought to pay more attention to, but maybe it is, will, because this seller, were going to see it turn seller, is also going to have a very large buyer. The ecb might be witddling down the amount, but its still substantial. Bank of japan will be buy erbuyo that relationship makes answering the question difficult. The fed is ultimately going to do both. Theres rate hikes and i think they will be Balance Sheet reductions because they want to hurry up and get caught up on the insurance premiums should anything unforeseen occur in the future you know, also, looking at the impact that the president s having on this market, last week, it seemed like the rotation from tech might have been going back into some of the trump trades, and, today, we see the financial flow where theres more headlines about obstruction of justice how do you think the market reads from coming from the administration theres a concern we had the conversation last week, and it was the week before and the week before and will have this moving forward i think that up certainty is going to add pressure somewhat to the overall market or give investors fear as to what their next move should be. I dont think we had a presidency where our market tech watched headlines come out of washington so much, and the headlines that have come from washington have been so gray and uncertain. As we get to the end of the month here, the end of the quarter, investors are going to feel a pause in the market, a republican to move away. Kevin, the political situation on the flipside is improving in europe, but are you putting money to work there . Yes so we have been putting money to work in europe for some time now, given the fact that you gotten a lot of the Political Landscape now moved out because youre not going to have, youre not going to have snap elections in italy begin the fivestar movement was not able to make it to the second round, the local elections, you have macron winning the first round of the parliamentary elections there in france, so that means his group is going to have more power, and hes going to be able to consolidate his leadership, and then you have, also, in the u. K. With theresa may losing support in her conservative party, and were now not going to have a hard brexit, but a soft brexit it really makes it more appealing for us to invest in europe and gives opportunity for the landscape to really be cleared for the next few months at least all right gentlemen, thank you appreciate your time today, kevin, john, and Rick Santelli now lets go over to President Trumps latest comments into the probe of possible obstruction of justice. Eamon . Reporter we got a surprise from sarah huk bee sanders, briefing reporters off camera today at the white house she said that robert mueller, now the special counsel, was here at the white house interviewing for a job, presumably the job for fbi director the day before he was appointed as special counsel thats an interesting wri ining. Meanwhile, nbc news airing out reporting of the Washington Post last night that. There, mr. Mueller is looking at President Trump in terms of potential obstruction of justice. This is what we know as of right now, that mueller is investigating a possible obstruction of justice by the president , requested interviews with the director of national intelligence, the nsa director, mike rogers, questions about the conversation, and mueller wants to interview former Deputy Director regarding memos he wrote on rogers conversation with the president they all agreed to be interviewed. Meanwhile, reaction from the president s attorney last night. His spokesperson putting out this statement saying, the fbi leak of information regarding the president is outrageous, inexcusable, and illegal. That despite the fact its not clear from the reporting that the initial information here came from the fbi at all or that it would have been illegal for a number of the people involved in the investigation who would be aware of it to have spoken about it to a reporter kelly, so, for now, though, the white house buttoned up on the issue of russia. President is not commenting in any way on any of this no. Whats the time frame ahead with the investigation, specifically President Trump being investigated or not, either way, when do we expect answers from mueller and the investigation . Reporter a great question. Nobody knows probably not even mueller at this point these things take months, sometimes years in the past. We imagine hes going to want to go through and interview all the senior top officials who would have any knowledge of any type of obstruction of justice efforts by the white house, youd imagine hes also going to need at some point talk to Top White House officials inside the west wing as well, and once he does that, hell start to mike his decisions about where hes going, but were looking at months here probably at the earlie earliest thank you for now at the white house. Stocks opened lower, and we have been moving up throughout the session today. Heading into the close with 45 minutes to go, dow is down meanwhile, anthem ceo speaks exclusively with us next to discuss the plans to exit the ohio obamacare market and Health Care Reform under President Trump. Announcing a new Company Alignment today that turns down its work force details on the changes afoot coming up. Youre watching cnbcfit sissorlddersin the power of a low volatility investing approach. The power of smart beta. Power your clients portfolio with powershares. Before investing, consider the Funds Investment objectives, risks, charges and expenses. Call 8009830903 for the prospectus containing this information. Read it carefully. Distributed by invesco distributors inc. Containing this information. Read it carefully. You realize the smartest investing idea, isnt just what you invest in, but who you invest with. A used car, [ mhow was work . G ] well, actually. Youre fired [ screaming ] lucy and i were invited to not work at the a. V. L. Anymore. No minions were going back to villainy. [ cheering ] so, youre villains now . Oh no no. No. No. No. No. [ laughing ] [ evil chuckles ] yow yes. Despicable me 3. Rated pg. Welcome back here are the markets for you, dow down 15 points n in fact, moving up throughout the day here, nike weighing on the dow, talking more about that in a moment. The s p down five points, best performance in descending order there. Nasdaq down half a percent there, and russell shedding twothirds of 1 Home Builders lower, dropping two points this morning to 57 for june, and last months rating revised by a appointment. Any reading above 50 is considered positive by the survey, and the sentiment dr dropped since the election of President Trump. That is true, though, whether its data or slow reaction to the rate hike, dollar stronger today. Glad you mentioned, else yens the yen. Up a percent, but half percent move against other currencies, similar kind of going tightening, perha perhaps. Indeed. Anthem, dating back to 2001, pulling out of the Health Insurance exchanges in ohio next year joining us now in an interview with ceo joseph swedish, there live at the heartland healthcare summit. Thank you so much, thank you for being here great to be with you. The recent news for you guys is making the decision to pull out of the ohio exchanges. What went into the decision . Well, you know, its a complicated decision, quite frapg frankly, because theres so many issues attached with it. At the core, we said repeatedly now for well over a year, carefully evaluating the sustainability of the market place under the Affordable Care act and said, if possible, without the right kinds of changes with respect to funding levels and other regulations associated with the Affordable Care act, we may have to exit certain markets because the markets are not sustainable. I used the term repeatedly that i call it surgical extraction. But the reality is were going to be very thoughtful in our approach its a a very complicated issue with respect to our Company Serving so many families and individuals. To expect ourselves is based on serious consideration and based on the fact that we simply dont want to do that unless its absolutely essential in terms of making a prudent decision to protect the issues, not only the company, but also individuals that cannot get affordable products or get accepted the health care based on a flawed Business Model how much decision was based on the existing Affordable Care act, whats in it now, and conversations based in washington about support in future years well, really is it is about Affordable Care act, how it was built and evolved over the last many years since it was passed maybe seven years ago. Theres been generally speaking, very few changes, very few adjustments. As a result, the business mold model, the operating model decreased dramatically theres not been a settlement on the issue of premium support, on issues of a standing or, excuse me, putting the insurance in a moratorium state those two issues alone translate to as much as a 25 increase in premium costs to our membership. That is not a sustainable model, and so its literally a Business Model or operating model with respect to the Affordable Care act as it was passed, getting to today, adjustments that had not occurred and certain decisions have not been made to strengthen and stabilize the market place netnet weve come to a fork in the road in terms of our inability to serve our community. Kelly, do you have a question thank you on that point, mr. Swedish, thank you, again, for joining us interesting to read that in colorado the governor said that he may block you from state Health Insurance contracts if you leave their Affordable Care act exchange medicaid there sounds like its a particular issue so what is your response to this tactic with the governor upping the game there, if you do have to pull out . Well, kelly, thats a great question first, let me level check. We are in 14 states, and so we take very seriously the long standing relationship that we have had with government in every state, the fact that weve been providing support to the individual market place for 75 years, so this is not a casual decision on our part we followed Filing Requirements by the states. We disclose our decision, thats a decision by the state in terms of when disclosure occurs. In that regard, we worked very closely with the state officials, whether its legislative or regulatory in terms of a decision that has to be made. With respect to the governors statement, thats a declaration that i think is still a work in process as we understand it. Again, we work very Close Partnership with all of our states, and my sense is that as our decisions are made, filings are placed, then we will continue to work and progress shift in a way that manages the risk and the exposure to our membership as best possible. Let me ask just one followup investors think through as well as the public. If its important to you to maintain medicaid presence, will you stay in the up Profitable Exchange for that state or any other . Well, kelly, if i understand the question, right now, weve got two sides of the story here. One is the individual book or membership and urn the Affordable Care act, the stainability of that market place, and i view medicaid as a separate issue we are very substantially engaged in 20 states in the medicaid program, and we have brought great value to those states in terms of converting to a managed care environment for medicaid beneficiaries we have brought tremendous value to the space i think that the comingle attitude is problematic. We are happiful dialogue with our state leadership that, you know, the decisions we made will continue to sustain a managed care market place, but fixing the individual market and fixing a new model of delivery for the individual marketplace will evolve so that stainability is created. Netnet we believe right solutions are imminent and hopeful the disruption were talking about right here will be deriffed, and we wont be exposed to that kind of decision theres still a lot of policy decisions that have to be made still have to process a lot of engagement with the state and, again, were optimistic all this works out over time. We have to talk about health performance. I want to talk, quickly, one last question for you, partnership with express scrips. Its a topic for them thinking you would be the biggest customer can you tell us if you made a different decision about that . They offered you a billion dollars. What do you say to that . Well, you know, i dont want to get into the details of the ongoing negotiations and the litigation process that were involved in regarding our contract with express scripts. My sense is that weve made it very clear to the Investor Community that we will make an announcement in the Fourth Quarter that the decision we will make regarding a vendor relationship Going Forward at the end of 2019. Come 2020, theres a new contract in place with a vendor, and weve not excluded anybody were going through an rfp process now. Weve made it very clear, i have to underscore, that a Fourth Quarter decision will be announ announced. Stay tuned for that absolutely. Joe, than

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