tv Closing Bell With Maria Bartiromo CNBC November 13, 2013 4:00pm-5:00pm EST
i don't think it will change when she takes the chairman's seat. >> another record for the dow and s&p. nasdaq getting every closer to 4 4,000 level. something we haven't seen since 2,000. stand by. cisco earnings with john chambers talking about them and the champ himself, mike tyson, coming up on the second hour of the "closing bell" with maria bartiromo. i'll see you tomorrow. it is 4:00 on wall street. do you know where your money is? hi, everybody, welcome back to "closing bell." i'm maria bartiromo on the floor of the new york stock exchange. another record close for the dow and the s&p 500 tonight. just teflon market. the nasdaq closing at 13-year high. check out these numbers as we settle out on the street today. dow jones industrial average up 70 points to an all-time high, market down, 15,820 on the blue chip average. even though volume on the light site at the big board. nasdaq higher by 45 points. technology catching up again, 3965 on nasdaq.
s&p 500 also at a new ale time high of 1781, up 14.25 points. the dow and s&p closing at all-time highs. bob, this melt-up keeps happening. >> dow jones industrial average, we were weak throughout the morning. frankly going into european close around noon it started lifting. not a lot of big macro news out there but janet yellen's testimony tomorrow creating considerable question. may be more dovish than some anticipated. we don't have that testimony yet, but that was a source of a lot of speculation today. a lot of groups that have beaten up, moved to the upside. good news on the fundamentals on retailers, macy's had a terrific day. 3.5% same comp sales moves. nordstrom reporting tomorrow. walmart also reporting as well as kohl's tomorrow. internet stock, high beta names moved up but emerging markets down again. seven, eight, nine days in a row they are been to the downside. many down double dijs over the last two weeks.
a rare ipo disappointment. it's been a great ipo run. not today for chegg, online college textbook. they priced above the range at 12.50. closed to the lows of the day. down 22%. we have not seen many disappoints in ipos. extended stay, big hotel chain, they did better. priced at $20 apiece and basically held up throughout the day, ending up about 20%. back to you. >> thank you so much. want to talk about this melt-up that continues. joining us right now to talk more about markets, brian, nath nathan, michele perry higgins author "the everything binder." thank you for joining us. >> thank you. michelle, let me kick it off with you. talk to us about who is buying this market. got a market at an all-time high tonight. 70 points higher on dow jones industrial average.
is this institutional or retail or both? >> i think it's a little of both, maria. the retail side, they've had a confusing year, as you look at what's going on right now. we've seen historical highs on equities, our fixed income, alternative space not such a great year. i have those retailers on the sidelines who are wanting to jump in right now and are excited to jump in. they think they might have missed the party. but i would say be very cautious. >> yeah. i mean, we talked to the ceo of schwab, nathan, this week, and he basically said, i'm not seeing it? i'm not seeing the individual investor back in this market. what do you think? >> i agree with you. i won't see it either. it's not like people are rushing around to go into the stock market. many people who got in the stock market, which would make a case against timing, have found this an incredibly frustrating five years to think about how will i get back in? i think all we saw today in the market, maria, is that we took a look in europe and we went, boy, they're going to give away money. in fact, you're going to -- they're going to lose a little
money on these transactions with new negative interest rate but make it up one volume. i think that will be good for u.s. corporations because they're going to get about 20 % of our business comes from overseas. >> well, ron, what do you think? what's behind this melt-up that we're seeing in stocks? all time highs tonight. are you expecting that, you know, sentiment is changing, getting better on the heals of the better than expected economic data we've seen recently? and, of course, retail catching a real bid. >> one thing that's not talked about is just the structural benefit that equities have. share shrinkage is a huge thing going on. in the s&p 500, for instance, the total amount of shares outstanding is lower than where it was ten years ago. yet we have seen a little bit of demand from institutionals and from retail pick up. we estimate on our model, our quantitative model, that that could be responsible for at least 6% to 7% of next year's lift. >> okay. and, brian, in terms of the
broad economy right now, what are you seeing? how would you characterize things? >> things continue to get gradually better. it's a noninflationary lackluster expansion. and i think for a lot of investors that have been looking for the ab absolutes of good, what they fail to recognize as things continue to get better, the stock market can continue to climb higher. we've heard a lot of reasons for the last number of years with regards to the macro picture or with regards to political back drop of why investors don't want to be in these markets. quite frankly, it created at times very compelling investment opportunities. what the market's now reflecting is this has been a normalization to average or slightly above average valuations depending on which metric you look at. but what investors are recognizing is things continue to get modestly better and stocks continue to appear cheap to generally most other asset classes. >> well, you know, we're waiting on cisco earnings. they'll be out any minute, by the way. the stock is trading down right now. we're waiting there. go ahead, nathan.
>> maria, this market is like our president. it's proven we'll pay any price. but $1.1 trillion of quantitative easingen yellen cost us $440,000 a job. that's how you keep the economy moving. how we transition from qe3 to a lower unemployment target, which is what i think will be what all the discussions are about today, that's really whether or not we can sustain where we are. >> hold on one second. cisco numbers are out. first quarter, 5 3 cents versus estimate of 51 cents. jon fortt has numbers. >> looks like revenue is a bit light. some expected given the federal government shutdown. that 16 days will hurt. revenue comes in at $12.09 billion versus 12.034 billion expected. service revenue is in at $2.6
billion. some estimates i had seen had services coming in around 2.7 versus that 2.69. looks like services revenue is light. we'll have to wait to see exactly how it breaks down between switching, ngn routing, video collaboration, all of those, for the call. i have to do a calculation to get gross margin. the street was looking for around 61.9% gross margin. i'll be able to, perhaps, calculate that for you in a few seconds. right now the story looks to be the revenue shortfall will get guidance on the call, maria. >> we want to hear from eric right now. thank you, jon. we'll keep following that. we have analyst reaction right now. eric, senior research analyst. another headline, company is increasing buy back program, $15 billion boost in the stock buyback program. what's your read on these numbers here? >> well, we were expecting a little better on the revenues. from my perspective, i've be
been -- i think that investor sentiment could improve quite a bit if we see the company generate better top line growth. that's really the key to cisco right now. the earnings is good, but the investor focus is on that top line. and macro economic issues in there, i'm sure, but also an issue of the company needs to keep on top of trends like the cloud better than what they've been able to do. >> what do they need to do? i mean, the cloud -- i keep hearing this. this is the issue. are they not positioned well enough for the cloud? >> well, it is a challenge because, as -- as the market moves to cloud technologies, you just get better utilization out of hardware-like networks and servers. and cisco needs to transition to more of an application-centric company. i think they recognize that. but i think investors really need to see them prove it before they're going to give them a lot of credit for making -- for making that transition to more of a software-centric company. >> real quick. the stock is at 23 .42 right
here. bottom line, would you buy the stock at this level or sell it? >> you know, we're at a market perform. i think -- i would look for other opportunities. we would maybe wait for weakness on this name. >> thank you very much. we want to get back to our market players here. michelle perry higgins, nathan, ron, brian leavitt, but jon fortt has more. >> i have the gross margin number for you. 61.3% is what i calculate versus 61.9% expected. not far off target analysts were looking for but closer to 61 than 6 2, maria. >> thank you so much. brian leavitt, jump in here in terms of the broad economy. what are you seeing? we have revenue a little disappointing from cisco as you heard from eric but we'll talk to john chambers momentarily and find out what the quarter looked like. how would you characterize things?
>> in terms of the broad economy, it continues to be too sluggish to please most anyone, but you continue to see modest improvements in small business hiring plans, modest improvements in private sector payrolls, jobless claims weighed down. so, it's not a -- it's not an economic expansion that's going to excite a lot of people. but what's most important for investors is that this slow growth, modest -- basically no inflation environment has been very good for stockholders. it doesn't -- it's not necessarily good for those that are unemployed, but it's been very good for shareholders of equities. >> certainly has not been good for savers. >> correct. >> one issue, michelle. you know, i think it's interesting to see the float continuing to shrink. is that one of the reasons this market has been such a stellar performer? today, you know, cisco announcing as part of its earnings release it's going to buy back more stock. how much does that have to do with what's going on, the float
shrinking? >>-i don't think that's playing into it in a dramatic way. i think what the bigger issue is, we're continuing to just see investors drive into this market and i would say be cautious. i'm a little worried about downside risk and potential short-term correction. and i think any new retailer investor needs to potentially be very cautious. >> we'll leave it there. thanks, everybody. appreciate your time. we'll see you soon. cisco systems on the move after hours. network equipment giant out with results moments ago. cisco ceo john chambers will speak with me next. we'll break down the numbers, give you a sense of the quarter. also coming up, fixing obama care. we now know that the law is falling well short of the goals of signing people up. now growing number of congressional democrats are pushing the president to do what bill clinton said yesterday, let people keep their plan if they like their plan. but can you do that without undermining the law? john horwitz says no and he's
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welcome back. take a look at cisco shares tonight in extended hours. weakness there. the company reported earnings a few moments ago. we want to get right to it and talk exclusively to the boss. the man in charge is john chambers, ceo of cisco. good to have you back on the program. welcome. >> maria, it's a pleasure to be with you. we talked in september and it will be interesting to see what correlations we draw. >> let's do that right now. can you characterize the last three months for us? how would you characterize the quarter? >> sure. i would characterize the quarter of being almost what we talked about in september in terms of the global economy. a lot of positives in it, a couple concerns. the positive on gross margin were 6 1% to 62% was our guidance, we came in at 63% gross margins. really solid on that. the other positives, record earnings per share in terms of nongap at 53 cents. we were short on revenue.
obviously, that's something we didn't anticipate when you and i talked. and in terms of the global economy over the last three months, the u.s. feels like it's just going along kind of being stuck in that 2%, give or take a little bit. the emerging markets are a little more challenging than we anticipated and others anticipated. >> so, is that really the story here? i mean, the last time we talked, you did say that the emerging markets really were continuing to be a challenge. you saw that again. what is it going to take n your view, to get vibrancy once again in the emerging markets? what are you expecting? >> sure. what i think it takes is, first, the u.s. engine to perform at the level we should be doing, which is 3% to 4% growth. the u.s. is kind of looked upon around the globe in terms of being the place that has to lead us out of this economic slowdown. within the emerging markets, as cash begins to flow back into those countries and using my terms, as currency stabilizes versus the dollar, then you begin to get more growth. emerging markets our focus is
very simple. how do we help country leaders create jobs, inclusive jobs across their entire diverse pop laying, health care, education and innovation. >> john, let me ask you about the cloud. you know, we've had analysts on and shareholders on recently who are showing some concern about cisco's approach to the cloud, that perhaps the company has become too much of an application-centric business. what are you doing to really capitalize on what's happening in the cloud right now in terms of your business? >> sure. if you watch the cloud, maria, we became the number one player in cloud infrastructure, according to synergy research the other day. great news 16 % of the total market, our peers are below that, but only at 16%. gives you an opportunity of the opportunity in front of us. at our lunch this last week in new york, we talked about application-centric infrastructure where you take the concepts in the clouds and really bring it to life so you can generate applications quickly, open standards, and you
incorporate silicon software defined networks/hardware in order to meet the goals of your customers. the launch was an unbelievable success. if you watch, maria, in the cloud, we're the only server/vendor that has good gross margin on our servers. not only because the ucs server is growing so well, probably over 40%, we'll talk about it today, but it's able to maintain its margins because it has an architecture that ties to the cloud, to the network. i think we're very well positioned in the cloud. you'll see us lead that not only in terms of enterprise customers but service provider and even data scaleable centers like microsoft and others which joined us on our announcement in new york this last week. >> what about the government, a portion of your revenue coming from sales to u.s. government. how much impact did the shutdown have on the business? is that an factor here? >> the government impact was less than we anticipated. it was a very interesting and challenging month, as you can
imagine. the quarter you did not want to end in october was this quarter, with all the uncertainties going on. the government business was down a little bit but not as bad as we thought. our actual state and local business was actually up. >> okay. and in terms of international -- so we talked about emerging markets. what about europe, john? this is an area, of course, that has been seeing new inflows, a lot of talk about whether or not we have seen the worst there. what are you seeing? >> we said last quarter we anticipated just gradual but slow improvement, without giving away too much of what we want to talk about in the call, i think some things have not changed dramatically but it's not going down. southern europe is still very challenging. central europe, very -- showing continued improvement, especially around germany. >> germany has been the leading grower in europe. that's still the case. and the south is really -- has been where the trouble has been. >> yes. we don't see that changing. we look for growth in the central and hopefully northern
part of europe, including the uk. we see the south challenging. >> and in terms of the u.s., back in april you said this economy was challenging. it was inconsistent. how would you characterize the u.s. right now, john? >> exactly the same way, maria. we'll talk about it, our business in terms of u.s. enterprise, large customers and commercia commercials, were solid in the quarter. it's still inconsistent. ceos are concerned and probably more cautious about next year than i've seen in quite a while. a lot of the government activity you referred to earlier contributed to that lack of confidence that people are seeing. so, i think you're in an environment that still looks flat lining 2%, give or take a half point in terms of what most ceos are expecting out of the economy the next year. >> what are they most concerned about? is it the uncertainty because they don't have clarity on tax policy? they don't have clarity on the expensive health care? or is it a simple demand story, john, they don't know what's lurking around the corner in terms of business?
>> well, i think you hit it well, maria. it's all of the above. it's the inconsistent data points we have talked about before, combined with the pace of change actually accelerating. what used to happen in three years happened in one year. what used to happen or two, three, four quarters, will happen in a single quarter of a company. so the ceos are trying to get predictability out of government, predictability out of tax policy, predictability about, are you even going to stay open? and an ability to anticipate what their costs are going to be. also, they want to see the confidence out of the consumer. so, i think it is that inconsistent data that makes the business leaders nervous. when they're nervous, they're hesitant about investing at the pace we want them to. we know in the long run to compete in a global basis, u.s. has to lead in technology and productivity. >> i want to ask you more about tax policy. you have taken this issue very seriously. and have spoken about it in many ways. but first, before i do that, given everything you've said emerging markets challenging, u.s. flat lining, europe up okay
but inconsistent, knowing all of this, john, what kind of a growth might we expect from cisco in the year ahead? >> well, maria, i won't give forward-looking statements. i never mind you asking and hopefully you're seeing i still learned how to dodge those pretty well. if you look at the things we control and influence in terms of the internet of things coming together, keking 50 billion devices and cisco providing most of that network, it gts exciting. our movement into security is very solid. i think we're going to surprise people in cloud in our ability to move into applications on it. but we're subject to many of the challenges that everybody else is in terms of -- especially emerging markets, global uncertainty on it. we'll give a little guidance on the next quarter but not long term. in terms of looking out in the longer term, 5% to 7% growth is what we've seen. we won't move up or down on that based on a couple quarters' data. that's what we see the market
opportunity being. >> putting numbers -- i always avoid getting specific forecasts in the year ahead because, as you say, you just -- you really do not know what's lurking. but you just told us that your customers are still uncertain and sitting on cash and given these, you know, lack of clarities out there, they don't want to make big commitments. ceo as cross america making decisions, dealing with the affordable care act. what does this all mean for you? are you also where your colleagues in business are? in other words, you want to sit on cash as well? i see you're announcing today an increasing in the buyback. is that the right -- the priority in terms of allocating capital? >> well, you're going to see us be very active in giving cash back to our shareholders. we're going to continue. $15 billion was a big number for us. in terms of what we're seeing from ceos and cios, we've never been better positioned, maria, versus the other maybe five or six top i.t. players to become the number one player. when you talk to cios, where they're going to be sending their money and you mentioned
the top six players in the industry, almost without exception cisco will get a disproportionate share. regardless of what the economy does, and let's use the u.s. as an example, i'll focus purely on our growth rate versus our peers and enterprise and commercial and do we gain share of wallet. i think the odds are very good. >> in terms of buybacks versus dividends. buyback has been a priority of yours for a long time. the company over the last 11 years has bought back nearly $80 billion worth of shares. talk to us about how you come to the decision to, you know, emphasize buybacks versus dividends. >> i used to have a strong view on that. that's actually changed. i used to believe that if you were paying a dividend, you weren't a growth stock. that's clearly wrong. we went to our shareholders and they said, we'd like to see more of a dividend return. i think we're about 3% today. it's neutral to me in terms of what combination of return of capital to our shareholders whether it's buyback or d
dividends. we'll listen to our shareholders and, candidly, we'll do whatever they want. we'll maintain and even step up in the short run our ability to return cash to the shareholders at that 50% of free cash flow we saidstandstill, frozen place that many companies are in, unwilling to put money to work? >> well, the ideal solution for all of us in the business world is predictable tax policy that is updated for this new world. the tax policy was done before microsoft even went public. and it was done at a time the u.s. dominated the global business world. we no longer do that. we've got to have competitive tax policy to allow us to create jobs in america and grow around the world. however, unfortunately, i see the probabilities of congress coming to that decision this year as low. so, the one thing i would strongly recommend f you're having trouble getting the engine going, you have $1 trillion plus overseas you could bring back. do what every other country in the world does, bring that back at zero to 10% cost, apply that
money to whatever purpose you want in government, whether it's reducing debt or apply it to infrastructure build out and stimulate the economy the most effective way. give it to business, let us create jobs, create dividends for shareholders and i think this country back strong again. that would be my one recommendation. we've seen saying that for quite a while. >> wonderful having you on the program. we know you have to jump to get on the analyst call. thank you. >> thank you, maria. >> john chambers joining us, ceo at cisco. democrats clamoring for the president to come up with a way for people to keep their current health care plan even if those those plans don't meet affordable care act minimum standards? how could that be done without changing the law. nothing more annoying than bad internet connection and dropped calls? when a verizon executive admits there's a log jam on the network, will consumers hang up? ♪ ♪
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i just think it's better to work with someone. someone you feel you can really partner with. unfortunately, i've found that some brokerage firms don't always encourage that kind of relationship. that's why i stopped working at the old brokerage, and started working for charles schwab. avo: what kind of financial consultant are you looking for? talk to us today. welcome back. the dow and s&p 500 close at another record high tonight. bob pisani, you don't want to get in front of this train. >> it's amazing. take a look at dow jones industrial average, historic highs on the dow, historic highs on the s&p 500. and historic highs on the transports as well. all three in a row here. in fact, the midcap index, the mib, also hitting historic high as well. we started on the downside. as we went into the european close, things got better.
maria, back to you. >> thank you so much, bob. breaking news on federal chair nominee janet yellen. eamon javers with the story right now. >> well, fairly dovish comments from janet yellen, as you might expect. her confirmation hearing up on capitol hill is tomorrow. we've just gotten copies now of her prepared testimony. fairly short statement from janet yellen to be given at 10 a.m. tomorrow. let me highlight a piece, which i think is significant. she says the federal reserve is using its monetary policy tools to promote a morrow bust recovery. a strong recovery will ultimately enable the fed to reduce reliance on unconventional tools such as asset purchases. i believe supporting the recovery today is the surest path to returning to a more normal approach to monetary policy. maria, there, as you can tell, janua janet yellen sounding like ben bernanke in supporting the recovery. that still a necessity for the
federal reserve. that's something people would expect to hear from janet yellen. the big question here will be, how does she respond to all the senators' questioning, how is she received on capitol hill tomorrow. but the expectation in washington is that she will sail through with flying colors here to the federal reserve chairmanship. >> thank you so much. so, it was what we expected, you know, the trend continues with the ben bernanke policy. that's really what the markets wanted in terms of that testimony. bob -- >> oh, yeah. i'm sorry. >> bob pisani, let me bring you back in here. how do you think the market reacts to this tomorrow, anticipating this tonight? >> yes. it's interesting. work rumors are so often just wrong but today they were right. there was speculation in the middle of the day that janet yellen would make essentially dovish comments. as you heard from eamon, that's exactly what happened. i think right now when you say words like supporting the
recovery today, those are buzz words, meaning we're going to continue to keep rates low as long as possible. that's essentially bullish for the markets. definitely i think a good reaction. but i think we've already seen a lot of it today, just on the speculation that this would happen. >> bob, thank you so much. really interesting testimony, what we expected. that's why i think the market melted up at the end of the day today, that we could get a similar testimony and similar commentary from ben bernanke from janet yellen. that testimony happening tomorrow. only 100,000 people nationwide have selected their health care plans throughout new exchanges. number well below the 500,000 the white house expected by this date. all the problems with obama care are causing some issues among the same democratic leaders who fought so hard to pass this law. many are feeling the political backlash of people unable to keep their plans despite the president's promise, and they are pushing the white house hard for a fix. last week the president alluded he's trying to come up with something, and yesterday one of
his predecessors turned up the heat, bill clinton. >> we also want to make sure that nobody is put in a position where their plan has been canceled. they can't afford a better plan, even though they would like a better plan. we'll have to work hard to make sure those folks are, you know, taken care of. >> i personally believe even if it takes a change in the law the president should honor the commitment the federal government made to those people and let them keep what they got. >> so, that was bill clinton yesterday. how can this part of the law be fixed without undermining the entire law? we're joined by john harwood and julian epstein, former legal counsel, now democratic strategist. john, we're hearing there could be something later in the week from the administration. pp what do you know? >> the house is headed to a vote on a bill the republicans have pushed forward that would extend some health plans that the administration regards as
directly hostile to the goals of the affordable care act. we haven't seen anything from the administration since the president made those remarks or since bill clinton made his remarks. one of the reasons is, it's very hard to do anything that doesn't go directly after and do violence to the act itself because the affordable care act intended to shake up the individual marketplace in ways that caused the people getting those cans clacellation notices to get new plans and pay higher premiums, in some cases for better plans or the same plan. the reason is they need that money to finance benefits for other people. so, whatever fix they come up with, the larger it is, the more of a problem it is for the goals that the president set under the law. >> i mean, i guess the point here is, john, can you actually change the law the way president clinton discussed a moment ago without undermining the law? >> it's very, very hard to do.
there are two questions. there's that, can you change it without undermining it? secondly, can you do it administratively or do you need legislation on the hill? we all know that legislation, you know, president clinton alluded to, even if it takes changing the law, there's no way under the sun that the democrats and republicans cand it is to s the pool amongst as large a group as possible. but i think, maria, have you to keep this in perspective. this issue, this debate, really only affects about 5% of americans in total. 50% of americans get their insurance through employers. another 30% of americans get their insurance through the government, either medicare, medicaid or through the military. 15% of americans don't have insurance. so, that leaves you with only 5% of americans that actually get insurance through private markets. of that 5%, about half of them are going to get a much better deal. they'll get comprehensive care either at the same rate or at lower rates, lower premiums. another half of that, which is about 2% total of americans will probably be paying more.
but what that 2% paying more, the benefits we get from that group are, one f they get sick, they get more comprehensive coverage than they may have in many instances. two, there is in effect, as john said -- >> but we've heard all of this. this is all talking points. we've heard all of this. >> we're talking about a very small percentage of americans that are ultimately affected by this. the problem is -- >> then why is there so much political backlash is? why are so many people upset? why is even the democrats, the party sort of questioning this now? >> because when you have even 2% or 3 % of americans, that's about 6 million americans, they can make a lot of noise. and that combined with the fact that they're having problems with the website, really serious problems with the website, and the white house hasn't handled this particularly well, has made this a very politically difficult position for democrats. the idea then, maria, of saying we'll allow 2% to keep their plans, that begins to undermine all of the economics of the
exchanges. because if you say that the lowest risk, and disproportionately younger part of the population that wants to keep these plans, once you take them out of the exchanges, you destroy the economics of the larger system and the community rating system. and the economics just don't work. you're then creating an exchange system that will be tilted towards people who are older, people who are higher risk. the economics just don't work at that point. there are -- >> we have to jump. >> you could think about transition kind of assistance. the obama care, remember, is a net-reducer of the deficit. you could think about using some of that money for transition for assistance, for people that will be paying higher premiums. keep in mind, this is about 2% or 3% of americans that are going to be adversely affected this way. >> john, julian, we appreciate your time. thank you so much, gentlemen. we'll see you soon. thank you very much. internet clog, top verizon wireless executive says lt network is experiencing capacity issues slowing down internet connections.
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welcome back. verizon wireless blaming higher than expected data traffic for slowing down lte network which could make consumers mad. josh lipton with the story. >> this is what happens when more people use smartphones and tablets on faster networks. verizon now saying it is experiencing higher than expected lchlte data traffic an network stresses in some markets. ceo speaking at a conference in new york said in chicago, new york city and san francisco, verizon is coping with capacity issues. he did say the amount of consumption of video took verizon here a bit by surprise. he said the company will be in excellent position by year end, but the question, obviously, now is whether the latest wave of smartphones and tablets will stress the network even more beyond verizon's expectations. analysts who cover verizon tell me the bad news here is obviously the company is talking
about network stresses. the potential good news, they say, is that this would seem to indicate traffic is robust, demand is strong. remember, verizon has historically received high customer service ratings. at&t, though, has narrowed that gap. analysts say verizon will need to do all the company can to maintain an advantage when it comes to brand reputation. back to you. >> josh, thank you so much. up next, he has gone from top of the world to down for the count and back on top again. in a very different arena. up next, mike tyson will sit down with me to talk about his comeback, chronicled in his new tell-all book. you don't want to miss that. joining me, mike tyson next, live. what if a small company became big business overnight? ♪ like, really big... then expanded? ♪ or their new product tanked? ♪ or not? what if they embrace new technology instead? ♪ imagine a company's future
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welcome back. imagine being the youngest boxing heavyweight champion in the world at age 20 and going on to earn some $400 million. outside the ring, divorce, drugs, prison, teemed with lavish spending and crooked investments evaporated into bankruptcy. mike tyson's story, he refuse tobd a knockout. he wouldn't get knocked down. he's on a comeback trail, with acting gig with forthcoming film directed by spike lee. i'm happy to have former world heavyweight champ and brooklyn native like myself -- go, brooklyn -- mike tyson.
where in brooklyn? >> decker high school. >> good space. tell me about the book and your life story. when did you hit rock bottom and how did you bounce? >> i don't know. i was really doing bad and i could have went a lot further. i could have had a couple more overdoses. but i didn't hit rock bottom. like my rock bottom is catching aids or something -- >> i see what you're saying. >> i wasn't really -- but i was really doing bad. >> what was the worst moment that you can remember? >> just not paying my drug dealers and telling them they're not going to get paid. so, tell your boys to come visit me and ask for the money. >> oh, gosh. did they come for the money? >> no, they never did, which i'm so grateful they didn't because i could have got in a lot of trouble. and i had a 4-year-old daughter that was deceased.
she had a freak accident and died. and that was really my lowest point in life. >> how did it happen? you were at the top of the point in your life. what happened to bring you down so much? was it that when you're up there, hundreds of -- >> fwho, i had bad associates and i made bad decisions. those decisions led to me -- just, man, getting in a lot of trouble and being in a lot of places at the wrong time, real bad places. >> so, what happened to get you out of it? how did you snap out of it and start your way back? >> eventually i got married to a wonderful woman named lakia tyson. and we decided to embark on a different lifestyle. we were going to -- we were going to clean up our life, clean up our debt and we were going to go into the entertainment business and become stage actors, become movie actors, and we succeeded in doing a lot of things.
and she's really -- besides being my life she's my life partner. and i won an emmy, i won a golden globe award. this is after all my drug relapse, my ten overdoses, almost dying. we overcame that and we're here now with our book, "undisputed truth". >> yes. >> i'm also a boxing promoter, incorporator. iron mike production. >> do you still take drugs? >> no, no. >> you gave it up. how did you give it up? was that hard? >> difficult, very difficult, but we did it. >> yep. let me ask you, you know, you've got a business audience watching. we talk and chronicle business people all the time who have it all and then lose it all. you had $400 million that you earned. how did you lose it? >> well, listen, i had bad business associates, i had people take advantage, and i had a good time, too, so i can't lie about that.
i had a lot of awesome cars and great boats and -- >> did you buy too much stuff, cars, boats? >> i did -- not really for the money i had, it wasn't really a lot of stuff, but i just trusted the wrong people. >> and then your wife snapped you out of it. you finally met a quality person. >> i met a really awesome person that i never deserved in life. and i'm very grateful i have her. we're doing remarkable things now. >> can you make that money back? >> that's not necessarily my goal. >> what are your goals? >> my goals wasn't to have a lot of money. it just came with the territory. >> and you weren't prepared for it? >> no. i was just a little kid you wer it? >> no, i was a little kid at the time. >> so making all this money and you're not prepared for it and you spend it on all the stuff, you take on debt. >> the whole idea was for me to become the greatest fighter in the history of the world and
with that came a lot of money. my goal was always to be the best in the world. that's not my life goal now to make a lot of money. to be present for the day. >> be what? >> present. >> you want to be president? >> present. i'm present in the moment, present with you. >> do you think bankruptcy changed you? >> i don't think bankruptcy changed me. >> how was that? >> i didn't know much about it. when i filed for bankruptcy, i wasn't broke. i still had money, i just couldn't borrow any more money but i was still living a good life. i still live in a great house. i never understand really broke. my worst condition was getting off the drunks and stop drinking. >> what are you trying to
achieve with the book? and what happened the hbo special? >> i didn't want to do the book. my wife wanted me to because she said people are going to write a book with or without you. your children should hear your words. so i decided to do this book. all this yucky stuff started coming. and two afteryears later and plus we need some money. and so i decided to do the book. >> all of those years of boxing, health issues, what were the ramifications of all of those years? >> i never had bad health a day
in my life. i just been very vort gnat. >> thanks for sharing your story with us. >> appreciate it. good to meet you. best of luck to you. mike tyson with this new book out. we're back in a moment on closing bell. but it sure feels that way. because with power ports... and wi-fi... and in-seat entertainment, for everyone on board, now when you fly, time flies too. (flight attendant) sir, we're about to land. (vo) we're adding a brand new plane, with all this, every week. it's just one way we're building the new american.
how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed much is the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪
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>> okay. more records tomorrow for the rockets? 30 seconds on the clock for each of our next guests. joining me, jim key. 30 seconds on the clock. what do you want to watch? >> all eyes are going to be on general et. we're watching the delayed release of the september trade report. i would ignore changes in the deficit. import growth, 270 -- 230 billion plus in september would support the view that the u.s. economy is improving. >> thank you so much.
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>> all right. before we go, let's look at the day on wall street. it was a record setter. the dow jones industrial average catching a little bit all day. nasdaq was up 45 points. 39.65. 1782 even. that will do it for us. thanks so much for joining us. >> we start tonight with breaking news. the woman expected to be the next head. she says a strong recovery will enable the fed to reduce its