Transcripts For CNBC Closing Bell 20170801 : vimarsana.com

CNBC Closing Bell August 1, 2017

Im bill griffeth. On track for another record close. We came within 12 tantalizing points of dow 22,000 this morning. Weve since pulled back and the s p is trading close to its record levels. Grasso would know what that level is, that record, but well goat that in a few minutes were about a point away. Thank you youre welcome. Coming right up, apple has certainly been a big catalyst in the dows rally this year, but can it last . Coming up, we debate whether you should buy or sell this hot stock ahead of its Earnings Report which is due out today after the close. I love it when i get to be here for apple. Youre here every time we do Apple Earnings just works out that way. And President Trump is set to host a Small Business event at the white house called Small Business, the engine of the American Dream as son as it gets underway well take you there briefly live. What the president has to say on what has turned out to be another newsy day. The dow is inching ever closing to that 22,000 25 points away bob pisani in the middle of the action on whats driving it. Bob . The good news is the dow is on fire. The bad news is the advances kind of narrow were essentially at 22,000. Lets not quibble, 21,000 first back in march. What made 19,000 points what, was the leadership take a look ill show you the numbers. Youll be started. Mostly boeing. 400 of 1,000 points was bogues, mcdonalds had a healthy contribution cat florida, unitedhealth. 26 other stocks in the dow only responsible for 150 of the 1,000 points that weve seen remember, dow is a priceweighted index here. Last four trading sessions, heres another weird thing the dow industrials are up 240 points wait a minute. The s p is down four points, and thats because you get the big moves up in the stocks, so, for example, boeing has had a huge move up in the last few days first down day in a while for boeing, but its up almost ten points in the last few days here thats about 70 points in the dow. Were also seeing a little bit of rotation. Some of the other lag yards are starting to move up. Some hopes that oil stocks might be moving so chevron has had very good numbers. Thats been helping the dow since their their earnings, about four or five days ago, and then weve got a few of the other sectors, retailers, for example, a little bit better about, and walmart is slowly slowing every day climbing up fractions of a point here. The hope is maybe we can get some kind of summer rall re, and, guys, well be talking about that more and the prospect for it tomorrow. Back for you. All right, bob. By the way, i do quibble, so we dont acknowledge 22k until we hit 22k, but i also digress. Well see you later. Apple for its own account has been a major contributor to the dows record run and its earnings after the bell, could have a big impact on this rally josh lipton joins us from apple headquarters here in cupertino with a preview josh reporter well, bill, heres what to expect here for atpels q3, earnings per share of 1. 57 on revenue of 44. 9 bill crop. Iphone shipments, 40. 7 million theres also going to be a focus, of course, on the average selling price of the iphone, the sales mix and Gross Margins. Real attention though is going to be on that q4 guidance and what that tells us about the new iphone in the pipeline right now the street is looking for q 4 revenue of 49. 2 billion. Gross margins of 38. 3 if that misses, tim cook will face a lot of questions on the call about whether the new phone will be delayed as many on the street expect. Analysts say a one to twomonth delay, not a material concern, but if that delay lasts longer, past early november say, than fiscal 2018 estimates could be in jeopardy. Heading into this report, apple stock up almost 30 this year. It is up more than 60 since hitting that low in may of 2016. Guys, back to you. All right, josh thank you. Well see you next hour. Lets add some more ingredients to the stew. Weve got the breaking news on the auto sales for july. Phil lebeau, how did they look in. Not great 16. 73 million. Thats the sales rate for the month of july. I think that makes the fifth straight month that weve seen a sales pace under 17 million vehicles for some comparison guys, july of last year, the sales rate was 17. 81 million, so 16. 73 million is the sales rate for last month. Back to you. All right. Certainly seeing that that in the stock reaction gm and ford down 2 , 3 . What a great time to buy a car. Why, because other people arent i bet you dont even own one. I do not own a car. Never a good time to park in new york city. Yeah. Unless you can rent one of those parking spots. Yeah, i guess even thats expensive. Shes looking at me like where is this going . Going to the Closing Bell Exchange with the dow up 72 points, the chief Investment Strategy at Jenny Montgomery and steve grasso from post nine and Rick Santelli gheks from the cme in chicago. Just from march to now, from 21,000 to 22,000, this market continues to move on. Always have a big benchmark series of data points in the indices we get there quicker dont get there quicker, do the ebb and flow, but to your point you have to hit that number before that number is counted, and you check that box, right . I totally agree with you were making a lot of headway. Rotation is the key for me though do we see all eyes on apple right now. If you see apple have a stellar print and the stock continues to fly high its going to be very difficult to switch out of f. A. N. G. And go into energy. Not as sexy. You know what is sexy right now in terms of groups and rotation is telecom. Im watching that group lead while autos continue to get hammered on these latest set of results. How do you play the rotation, and are you moving money around as we see it continue to switch . Well, sara, thats a little bit of a difficult thing to do when telecom at the end of day is two stocks, at t and verizon. Hard to imagine they arent already in everybodys portfolio in some way, shape or form there. Is merit in rotation of a broader sector like financial and like energy. Contrarily weve been bullish on energy for several months, and its starting to pay pitch tends by way of the supply demand balance working in favor of oil prices and dragging along with it the energy patch, and also some of the financials, namely one we like at citigroup which along with many others have passed a series of stress tests, and we think it has a good Balance Sheet in the way to restore capital shareholders Going Forward, so i look for that to sort of reassert itself in the second half of this year, that procyclical trade went dormant in the first half of 2017 i look for better conditions in the next couple of quarters. Meanwhile, rick, finally an uptick for the dollar index, but also a Pretty Healthy decline in the yields here. The tenyear down to 225 last i saw. Whats going on here yeah, no, we dropped four basis points pretty much right around the time we were getting ready to open the equity markets. You know, just drifting a bit. I think its more the aftermath of last weeks meeting than anything else. Just kind of getting its gps back just while continuing to Pay Attention to the psychological areas from here. Of course, 2. 13 is the low close and 2. 25, spent some time there. Its a significant area, but ill continue to make my focusing the Euro Currency while the dollar had a small little itty bitty rally today, a minor setback for the euro, although yesterday was its first 118 handle close since january of 2015 and still last i looked was supporting the 118 handle. Just consider this h. 118 handle, two and a half weeks ago, which would have been what, july 13th, we still had a 113 handle. On june 26th, a little over a month ago, it was trading with a 111 handle settled at 111. 80. A spectacular run but a little different. Look at the kak, the daxx, the big european bursds are not on t on the high like the dow we want to Pay Attention to the relationship as well. Engineer nonexporters closed lower for the month. Rick and i had this debatier curious what you had to say, grasso does any of therefore have to do with relative political uncertainties between the u. S. And everybody else, a play on inflation . Whats driving the dollar down i dont know if its anything to do with politics but ill push back to you and say what classifies at politics, you know, because fed policy is going to be politics to some people not politics to others. Well play semantics now. Going to play semantics a little bit. Politics is depends on what politics is at this point. Its the implementation of the trump agenda, the trump trade. Shower, but the problem is he hasnt gotten anything passed yet. Thats my point so for us we all know theres supposed to be a tightening thats happening, that really is it going to be is it going to happen as quick as they say. We all know about the politics of the trade we all know he cant get anything pass, yet the s p and the dow, right around record highs. August, having said all that, august is a tough month for the overall markets. Weve all been calling for this selloff. Who knows when it happens. Ive been investing in the market im still at 98 in the market i havent pulled money out just yet. Weve got to go right now mark we owe you an extra question well get that to you next time when we come along some news we have to get to at some point thanks for all joining us. Were monitoring the president. President trump about to host a Small Business event at the white house. Youre ylan mui joins us now with a preview of what we can expect ylan. Reporter there are literally dozens of Small Businesses invited to this event. They come from the manufacturing, retail and even transportation sectors now, this event will be hosted in the east room by President Trump, also attending will be his daughter ivanka trump as well as Small Business administrator Linda Mcmahon. Both of them are expected to make remarks now, some of the other attendees at this event will include President Trumps new chief of staff john kelly as well as Jared Kushner and nec director gary cohn. What were told is this meeting will focus on Economic Growth and job creation now, to support both of those things White House Press secretary sarah huck bowe sanders just urged congress to make sure that it raises the debt ceiling as soon as possible she says thats needed to promote Economic Growth as well as fiscal responsibility over on Capitol Hill Senate Majority Leader Mitch Mcconnell also signaled that had lawmakers are starting to focus on this issue. He said that they are looking for a way forward in the next month or so. How exactly both the administration and lawmakers would try to approach this issue is still unclear what we do know is that time is running out. The deadline to raise that debt ceiling is september 29th, according to the Treasury Department so lots on the agenda here still in washington, even as we head into august. Back over to you guys. Yeah, that doesnt leave a lot of legislative days on the calendar after the august recess, ylan. Small Business Optimism really jumped after the election there was a lot of good feeling and confidence about the trump agenda and the Republican Congress whats happened to that since health care failed to pass since were waiting on details of tax reform and plenty of other distractions around russia and everything else. Has it been dented is he likely to face some tough questions about that reporter yeah. There are a lot of challenges facing this administration in terms of getting its legislative and economic agenda pushed through. One of the key questions for the Small Businesses will be what happens to the passthrough rate r. President trump has assured Small Businesses that they will not only lower the tax rate for big corporations but also that passthrough rate that affects so many Small Businesses as well but one hangup in that debate could be exactly how they write the rules to ensure that the wealthy dont take advantage of that. All right, ylan, thank you. The president coming in right now to the east room with a lot of dignitaries, a lot of members of congress who are involved with the Small Business administration, Linda Mcmahon, the sba administrator, ivanka trump is part of this. The sba is entering into its 65th year of existence as it continues to try to help what they are calling the engine of the American Dream heres the president. Thank you very much its a great honor to be here, this magnificent house known as the white house. Were pleased to welcome members of congress and so many incredible entrepreneurs to the white house to celebrate the work of the Small Business administration as it enters its believe it or not 65th year. Id like to just say that senator jim risch is here, jim, thank you very much, marco rubio, a strong competitor, i will tell you that, senator joanie ernst who has been my friend for a long time, and we appreciate you being here, and they love you in iowa, dont they, hu steve chabot, wheres steve . And mike kelly good, mike, thank you very much for being here all of you, we really appreciate it i want to thank administrator Linda Mcmahon for doing a tremendous job helping Small Businesses all across our country. She has been incredible. Known her for a long time and her husband and herself built an incredible business. Shes determined to transform america and American Dreams into reality. We also want to thank my daughter ivanka for her incredible work on behalf of Small Businesses and women entrepreneurs. And this is really a fact, and ive read some of these stories, but they demonstrate what it takes to succeed you thrive because you found something that you love to do, pursued it with all of your heart and never ever gave up so important you just dont give up america is on the verge of a golden age for Small Business. Were ending jobkilling regulation those folks know that very well, and were really ending it at a record pace, ill tell you, right . [ applause ] were eliminating the tremendous, the massive restrictions on American Energy and numbers are going to be released next week that are going to be earthshattering as to what were doing with energy and the amounts of energy were producing, far greater than ever before, and pursuing bold tax cuts so that our companies can thrive, compete and grow [ applause ] our stock market has reached an alltime high today, alltime high think of it. Nobody ever talks about it they dont talk about it [ applause ] i keep telling general kelly, come on, lets go. Youre chief of staff. They dont talk about the alltime high stock market and they dont talk about another factor, that unemployment just hit a 16year low. They dont want to talk about it [ applause ] and y and i think to me maybe the biggest is gdp at the quarter just released at 1. 6 , so thats so much higher than anticipated. Remember, i was going to say were going to try to hit 3 over the next period of two years. Well, 2. 6 is getting closer, gary, closer than we thought and a lot faster than we thought, but dont worry about the 3, were going to be higher than 3 in the not too distant future, too. [ applause ] so were setting economic records and were very proud of it, and, you know, its a very big thing and the jobs are coming pouring back. Factories are coming pouring back no our country, into our country. Jobs are coming back you saw the foxconn last week. They will spend 10 billion, but hes one of the great businessmen of our time, and i think the number is going to be 30 million so he told me off the record, he thinks he 30 billion, think of this. He may go 30 billion investment but he told me that off the record so i promised i wouldnt tell anybody [ laughter ] thats called big business, by the way. Thats big business. Youll be big business got to start off small, but youre going to be big like that he started off small, and now hes about the biggest i want to thank foxconn and the group. They are spending a tremendous amount of money in wisconsin and other places, and they have been fantastic. Together were unleashing a new era of american prosperity, perhaps like weve never seen before, and you see it day by day. You dont hear it too much from the media, but i think the media is going to actually be forced to cover it pretty soon. They will have no choice im very inspired to be in the company of such motivated entrepreneurs, peek, people that i really respect because i know what it takes. Ive been there, and believe me i know what it takes you are the dreamers and innovators who are powering us into the future. Thats exactly what you are, and my administration will be there with you every single step of the way and so will these people right here [ applause ] every single step of the way, so thank you. Thank you very much, everybody ness. The president addressing a number of Small Business owners there in the east room clearly he doesnt watch cnbc as much as he used to. Nobody talks about the record high stock market . We do. And the Unemployment Rate and so forth you know what i love about the Small Business events that they hold, you get the list here of the people who are t

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