Transcripts For CNBC Squawk On The Street 20170725 : vimarsa

CNBC Squawk On The Street July 25, 2017

Tenyear works its way back to 2. 3. And schiller up. Caterpillar, mcdonalds among the big dow boosters premarket. Alphabet shares sliding premarket, googles Parent Company reporting an earnings week but profits hit by a fine from the eu. Jeff bezos, trump takes to twitter, blasting amazon yet again. 3m, dupont also reporting. Also out, lily and gm. Metals are getting a bid today copper trying to break out. Thats exactly what i thought would play out caterpillar, this international would pay out. Im surprised that the United States is so strong here construction equipment, thats exactly what you want to see for energy, for transport. North america, incredibly strong latin america better than i thought. Construction is just on fire youve got a tremendous, tremendous story here where the numbers are much higher than anybody was thinking this stock will not stop at 113. There will be some bears who will try to say china is not that strong. But in the end this raise is the most serious of the earnings season. Of the earnings season . Of the earnings season. Its all points bulletin good to read tlut commehrough te comments here. Talk about favorable price realization for Energy Without oil above 50, how many people did these guys get rid of . This is an incredible streamlined cat. I am shocked they have this level of earnings power. Leverage on sales here is extraordinary. Caterpillar is back much harder than i thought this is q1 of the good. Second best stock of q2. Yeah. Raising sales expectations to 42 to 44 billion is not just ahead of estimates it will be the first annual increase in five years. Remember the old days when we thought cat would get 10 in earnings power i do not think it has 10 in earnings power how quiet it was they give you the monthly numbers. Theyve got lean inventories, too. When i look at this, i say to myself, this company can make much more money than they could two years ago, before they started take iing the costs out. Remarkable remarkable i just think theyre on q1, great numbers. Much higher forecast than even in april. We talked yesterday but only to market perform. Took a look at that upgrade that was incredible. I thought there was a chance that it would cost a 50 cents earnings month that was too low even the street high guy got caterpillar wrong. When you see the guy with the highest estimates be beaten that sadly, nobody has a clue of how to get theyll be upgrade, upgrade, upgrade, price bump, price bump, price bump and its going to come as a big surprise. The call will just lend itself to this amazing story. Cat, 3m this quarters report were a little soft. Technology is interesting that stock will not be up. I look at the quarter and go over with the company. There is some margin weakness there that people didnt count on i am seeing very strong numbers in china. Terrific margins on the service side hvac no one expected the heating ventilation to be double digit the margins are fine in that business otis wasnt up come on. The stock will be meander right here and two days later, why did we sell it continues to deliver a very streamlined company. They would have had more of a beat and raise otis would have had to have been up more i just think that aerospace is very good. Honeywell has had a bigger move i hate to say this this is why ge is at 25. They did not have organic growth i think its going to end up being do i wish i had never heard of it . No and the Free Cash Flow for ge is still its anemic. Thank you very much i have to get the roge out remember before google well get to google. Ge should be at 23. If honeywell will be at simple multiples or in the end, whats so unnerving about ge, im sorry to do that. The ge is interesting then you see how little they make and then you see this turbine. David you and i could go into turbines in terms of sales unnerving. Power. The combination of power, locomotives and health care, what the hell . I know. Turbine sales are important, too. They also generate a service fee over a long period of time unless you choose to pull in that service fee as a onetime payment. Who would do that i dont know. Thats something for investors to look at. That would be ill advised way to be able to break a quarter. Honeywell, so far, its caterpillar, then honeywell. And then United Technologies and then sadly 3m. Just not great for 3m. They continue to have a review of that business. Both engaged in that to decide or help the Company Figure out whether to separate out its Aerospace Business under some pressure from dan logue theyve decided to do that. The ceo has got cart blanche from the previous ceo. I do suggest that here is what i say about it. About honeywell if that stocks go to 180 on that, he will do t its literally how the chips may fall he is not wedded to that model a bit. I liked the Conference Call very much for honeywell i liked it caterpillar is just a gem. Hes so damn good im sick of it. Lets talk some food. Mcdonalds is going to surge to open in record territory this morning, thanks to a better than expected Second Quarter beat on the top of the bottom line, calling out a boost from upscale burgers, chicken sandwiches, discounts in beverages global comps, 6. 6. What is he, a small cap do you know how big mcdonalds is people must be going there over michelin three star. 3. 9, 3. 2. We havent seen numbers like this out of mcdonalds for a while. What are they giving away over there must be euros in the burgers. A lot of people doubt aid year, year and a half ago, that we would ever see that kind of growth, right . The best you could hope for would be. Quiet, quiet man. I wish he could come on the sho show. Chinese numbers japan. This is a hamburger. Wow filet mignon i dont know. I saw lobster in maine, honestly some sort of one of the mcdonalds was advertising lobster. I dont know what they do with it but theyre getting creative. Franchisees will tell you that the big initiatives are still to come, mcdelivery, global ordering, free range beef are not reflected in this quarter anyway. No. This is a monster quarter. He told me it would be big the guy is like there you go, david. Signature crafted. Theyre starting to theyre going to pull shake shack out of the stadium and put in mcdonalds. I hope they dont. Just kidding. We have to be concern ed 5,000 franchise. Remember thats a Technology Company that delivers pizza but. Reved up. Exactly sbl whatever that means. What is it, a loner . What are you thats what were talking abou about. I thought visa was great. Visa dont leave home without a mcdonalds burger, man its priceless. Drop in Second Quarter profits due to antitrust find due to antiregulators here is the report out last night on the Conference Call. Revenues were up 20 year on year and up 23 . Advertising revenues benefited from strong performance, led in particular by tremendous results in mobile search with a strong contribution from youtube. First to drop in operating margin in eight quarters monetizing mobile is tough, jim. Drilling, drilling, drilling, relentless this guy, these sellers, all their thinking is this i remember when it went from are you kidding me after the big fine, after paying 2. 7 billion, which for most companies would be a lot of money. For these guys is pocket change. 94. 7 billion in cash. That is actually up can i say tax reform an hour of youtube a day, proves to me that, without a doubt, people dont have anything to do with their lives yes, the sellers are going to bang it down yes, everybody reiterated buy. Yes, theyre using it as a source to fund other stocks. They are . Yes. All right for a company this size. That said, subscriber opposition costs are higher dealing with a margin structure that is not the same that youve been accustomed to. They want you to focus on gross profit dollars thats great compressed to a certain extent as a result of that. And so, jim, would you rather own facebok or amazon or even ten cent than google have to see facebook. Theyre not having margin pressure. No. Alphabet did not handle what i would have thought the call was sparse in information. It was not a great call. It was not i think they have the facts to make a great call. This is a transition quarter they have to get web services up. They talked about the notion that cloud may one day be the biggest business. By 2020, she keeps saying major acquisition, its hard to imagine how they can do that organically. With 92 billion why not buy a company that gets you there quickly . Are you nodding . Is that no have you capped datendidates theres one name. Listen, sales force used to be my very good friend. He may have to join us so we get more mojo there. Theyre going to sell it what can i say 950, 940 dont buy it here. Buy it at the end of the day, maybe tomorrow morning same thing with 3m. When we come back, deja vu . The president takes aim at amazon and jeff bezos once again. The s p will open at a record. Dow is getting closer but not quite there. Back in a minute she cant become a guitar legend just by playing air guitar. The babys room wont build itself. And her paw wont heal on its own. Were all working forward to something. Synchrony financial can help your customers make it happen sooner. So she can plug into her dreams. And theyll have a new addition for their new addition. Whatever youre working forward to, even if its chasing squirrels, Synchrony Financial can help you get there. Series of tweets he writes so many stories about me, they are as bad as ratings challenged cnn, lobbyist for taxes. Fake News Washington post being used as a lobbyist weapon against congress to keep politicians from looking into amazon notax monopoly has had the knives out for a few different target this is mornin morning. This is a publicly traded company that in the end owns a newspaper. Bezos owns a newspaper. No, absolutely. Went through the change in his couch one day, about 250 million and said okay, ill buy it. What does matter, though, is that if there is some sort of tax issue. However, Third Party Sellers on amazon may not be charging the sales tax and so that is seen as a competitive advantage over your local retailer. Absolutely. If theyre using amazon platform but its not amazon itself thats selling you the goods. With trumps continued tweeting and then this plan that the democrats unveiled yesterday where schumer was talking about monopoly power whether this starts to build into something even though there very well may not be a case to be made. What you would do, okay, is you would be a trust buster. You simply would say its not right. Got broken up because it was too powerful. And market shares. The Justice Department doesnt have to be right to bring a case. From past experience. Yes. Cramers mad dash veok at the free market once agn. Ry strong opening in store r us were back in a moment upbeat dance music bell ringing to keep our community safe. Before you do any project big or small, pg e will come out and mark your gas and electric lines so you dont hit them when you dig. Call 811 before you dig, and make sure that you and your neighbors are safe. 811 is available to any business our or homeownerfe. To make sure that you identify where your utilities are if you are gonna do any kind of excavation no matter how small or large before you dig, call 811. Keep yourself safe. Mot much m a but one deal caught your eye. I think its an overpay you know what . Lets see if the market responds jimmy choo it is rather amazing to pay out for something that people think is mall based. What coach did, which i thought was brilliant, kate spade. I dont know if this will save coarse one, they paid more than they should have. Nine west was trying to buythe for much less. Second, david, this is the kind of thing where youre just buying anything, i think, to try to become more relevant. Fourinch heels for 1200, what do you think they tell you i dont know. Shell love it because of the toe cleavage. Got it. You said Something Interesting now. Save coors does it need saving . I think its fighting for relevance in a modern day era where people are just not shopping for this stuff. I dont know how much they can do it with jimmy choo. It has to be up in price i dont know too expensive, david. Ter atgeold toe cleava afth opening bell, a few minutes from now im here at the Td Ameritrade trader offices. Steve, other than making me move stuff, what are you working on . Let me show you. Okay. Our thinkorswim Trading Platform aggregates all the options data you need in one place and lets you visualize that information for any options series. Okay, cool. Hang on a second. You can even see the anticipated range of a stock expecting earnings. Impressive. Whats up, tim. See options data like never before. With thinkorswim only at Td Ameritrade. Youre watching cnbcs squawk on the street. Busy tuesday as we watch earnings john mccain returns to the senate today for a vote, motion to proceed on health care. Got awfully close to an eight handle this morning, jim, were basically flirting with alltime closing lows. Yeah. Look, i am so torn i keep thinking about that Goldman Sachs quarter, how little volatility there is you have to strain yourself to find something thats really wild here, that would be seagate, down terribly because of a class in prices. How can that be true when so much of the narrative today is ag, deputy ag, special prosecutor you know what what do they have to do with the mcdonalds burgers nothing. Its a Big International company with a business in United States and you know what . Its worth so many burgers. Mid stream. Recent ipo English Premiere League soccer team tottenham hotspur, competed in the International Champions cup. You should not miss the euro. I tell you, i have been a champion of the euro everyone keeps saying you have to short it. You have to short it go to europe do some business prices are it is too low. It is too low. Rates are too low. Germany is coming back, italys coming back. Only thing i didnt see strong in germany was hasbro. Playdough does not determine a country. And the banks are not as strong as our banks in terms of the price action weve got another rally off the bonds, maybe Interest Rate rally her here. Strong day yesterday. Market cap slightly above goldmans. Took note of that. Gorman will talk about his model. Thats interesting the model. Pretty amazing. We talked about, of course, Morgan Stanley thats a moment to pause because these Companies Take these things seriously do you remember when charl schwab exceeded the cap . Maybe before 2000 but during the dot com . Sure. Merrill lynch took that that was a moment for them even when tesla exceeded these Companies Notice these things certainly Goldman Sachs and Morgan Stanley, despite the fact that their strategies have diverged, no doubt, given the focus on Morgan Stanley thats a moment. That is important what kind of business is this . Assets go out the door every morning. Gorman is doing a fabulous job in leadership. I have to tell you, i dont think that you need volatility going back to the vicks question fixed income. At the beginning of this year, one stock was down Morgan Stanley is up 12 . Changing as the guard. Investors do tend to have longer memories sometimes. One of the big s p earners right now. That stock sells at tangible book value he has put now its up 50 cents higher okay he is putting points on the board. That deluge of numbers. Banks leading today, suntrust, citi, fifth third, are we once again tenyear just hit 2. 3. Jp morgan coming back to my price target. That makes me feel a lot better whats so weird is when you go over United Technologies, they need copper data copper is up you have commodities you have financials going up and you have google going down. That is listen, im happy when you succeed and get somebody. You are yes i dont feel its good for everybody. When you take the people ive had as a frequent guest and somehow its appropriate them for your own show. Cooperate darwinism. I find that a bit upsetting. My wife was doing laundry yesterday. I asked what she was doing she says laundry i talked about euro vacation she sides with him. Have no shot with corbett at all. How are you doing with benihoff my wife is interested and my two dogs. Jim, this is the kind of market you love. I do. Financials, nvidia. A focused debt. You see those financials roaring, you can pin a whole new narrative. Pncs quarter. I know its painful. You have to go over it line by lievenlt its like a really bad book that when you get to the middle you say i have to finish it i have no choice. Under armour to a sell. Under armour sell is about how people are no longer buying performance clothes. Theyre buying leisure wear. Lulu gets downgraded, king of leisure wear i dont know where to go i know to avoid both and buy vf corp vf is back new leadership, by the way but they had a strong europe im surprised nike hasnt broken out yet. The hibbett collapse yesterday has created a pause in that group. David, the collapse was terrible. It was . Pretty consistent growth, worst ive seen. People have pointed out why is it taking the actual commodity, why is it tougher sledding than some expected . Were up a buck today. In the anadarko conference, they said were not going to drill as much. Cash flow is not that great from it this is what slumber j has said. The west the whole phenomena will slow down if you think 8 that is the United States controls the price of oil, then youre going to want to buy oil. If you psychologically think that a lot of people feel that the u. S. Can now schlumberger has playing right into the fury that was announced in the call friday that the u. S. Is going to cut back and thats going to drive oil prices higher. You think we can reclaim, say, 52 . Cant go through 50 at that point, everybody sells and sells and sells. Thats a lower high. It can happen yeah oil can go higher j

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