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tv   Countdown to the Closing Bell With Liz Claman  FOX Business  May 2, 2018 3:00pm-4:00pm EDT

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68, 70 points after the fed released latest meeting notes. nothing exciting in there. yes happy with inflation close to 2%. the labor market is strong. the question is how many times have they raised rates? maybe two times? the market is flat right now. over to liz claman. liz: what's not flat, have you seen facebook, up on the screen right now. no wonder facebook is jumping 2%, just break in the last few minutes. cambridge analytica the digital consulting firm that got facebook in scalding hot water after it revealed it released millions of users' data. overwhelmed by lawsuits, cambridge analytica telling workers to take their stuff and vacate the premises. they are declaring bankruptcy and shutting down. more on that as we get it. officially a new secretary of state at this hour on a day that the economic future may
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also be at stake. mike pompeo the 70th secretary of state in our country's history after the ceremonial swearing in. he's got a lot on his plate right from the start it. all comes as treasury secretary steven mnuchin arrives on the ground in china ahead of two days of trade negotiations that could dramatically alter our country's relationship with the second biggest economy on the planet. nebraska governor pete ricketts runs a state that needs its trading partner china. nebraska exports billions of dollars of beef and corn and soy and much more. he's going to tell us how worried he is and his farmers are about the china talks and might affect his entire state and the nation's economy. plus, the ft reporting vladimir putin forced to play nice, damaging sanctions by the west and lingering recession may have russia's president ready to cry uncle sam to
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change course to bring his country in line with the west. putin's number one enemy in the financial world is the founder of hermittage capital, bill broweder. if he believes the russian tiger can change its stripes? markets searching for direction after the federal reserve held interest rates steady. kind of a squishy statement they came out with. we spiked and now down 42 points for the dow. less than an hour to the closing bell. big hour here. let's start the "countdown." . liz: we need to start with breaking news, you're looking at a live picture of the military plane crash press news conference in savannah, georgia. georgia air national guard spokesperson confirming five national guard members from puerto rico have been killed after the cargo plane on a training mission crashed near a
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georgia airport. the plane belonged to the 156th airwing out of puerto rico, and the people aboard were puerto ricans headed for a mission on the u.s. mainland. any more details on that and we will bring them to you. on wall street, we're looking at an up-an-down day. stocks paring gains, this could change because it's changed every 25 minutes. turning negative for two major indices, the dow and the s&p after jumping to session highs following the release of the federal reserve's fomc statement. the fed did hold rates steady, no change. we're in the range of 1 1/2 to 1.75% for the overnitrate the banks charge each other, but central bank officials did point to higher inflation ahead, just not too high. so what the reaction? boom! the u.s. dollar, which had been hitting earlier highs today of 3 1/2 months highs for the dollar index, pared gains, turned negative after the release of the statement. it's only higher against the
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canadian dollar and japanese yen and then it's flat. ten-year treasury yields first started to fall, now holding steady. for the 10 year, 2.97% but the federal reserve is not the biggest market driver. apple stealing the spotlight. jumping at this hour, higher by 5 full percentage points, currently the best performer on the dow jones industrials, looking at best three day stretch since september of 2016. this after the tech giant after the bell yesterday topped estimates on the top and bottom lines, but announced a $100 billion share buyback. okay, that's huge by any standards on the planet. and they also increased their dividends. 16%. bringing it i believe to about 75 cents per share. so a guy like warren buffett who has a lot of apple shares making money holding onto the stock. apple is boosting the halo
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effect surprised the market with solid iphone x sales. you see sky works and cirrus logic jumping at the moment. momentum up 10.5%. apple $100 billion share buyback is larger than the well-known and prominent companies in the united states. we picked out a couple to show you across different industries. apple stock buyback tops the market cap of united technologies. yes. that's huge, unbelievable. goldman sachs, caterpillar and general motors just to name a few. so what we wanted to ask our floor show traders, whether there's a more important company in america aside from apple that is a benchmark for so much in the country. matt cheslock, what do you think? do you own it? >> i don't own it, but i will say amazon. eating everyone's lunch and in every different sector. they're a technology firm, a retail firm, they're taking
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over. anything they touch is gold. i would think they're the proxy for everyone to look at right now. liz: interestingly enough, they are the proxy for consumer spending, they are flat to. phil flynn, tell me what you think, is there a company that holds the heft that apple does. something broader that can give you streaming and discretionary income spending is better, what do you think? >> i absolutely agree. how do you define imported, seriously? we could talk about health care stocks, people that are saving lives. food companies that actually feed people. you know, but there's no doubt of the historic impact that apple has had. i question the share buyback, it's great for the stock short-term but shows me maybe they're running out of ideas and i go back with what matt said about amazon. i think amazon may be even more important company because you're on both ends of the
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change. they are reinventing everything and getting into medicine, food and technology, so they have a little bit of everything going. i think apple is behind them in ideas. liz: ira, i want your thought on -- i think phil is right as well, everybody is right. maybe you'll be wrong. give me your thought on a hefty, important company and why are we down when the federal reserve gave a desept outlook that wasn't too hot, too cold, kind of just right, the goldilocks moment. >> this is going to get apple into a bit of hot water. wasn't the idea of this tax cut you're going to take that money, bring it home and do better with it? more jobs and so on? that's what's going on. bigger than united technologies, they're going to buy back their shares? i argue with that. it's amazon in my opinion. it's everything. at the end of the day, they'll be everywhere we go. think of all the things you buy with it. whole foods, you get a discount on that.
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it's a phenomenal company. the company when i think of it embraces everything in american life, it seems to be doing it. and what bothers me with apple, it's a one trick pony. if you have owned an iphone, what else do you own? some people own the pc's, 90% of the market share isn't in that. liz: quickly, the fed, more hawkish? didn't sound like it on tightening. are you guessing three rate hikes this year? >> i'm on. two more dovish than expected. market rallied, it brought more confusion in, people are in the two camp or the three camp and that's the bet that you have to make right now. who's going to be right? we'll have to see how it plays out. friday's employment number will start that ball rolling. >> the adp number better than expected. the precursor to the friday jobs report, a huge day. matt, phil, ira, lovely to see you. a gain of 204,000 for the
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private sector jobs from the adp report. how many thousands of teslas are going to be sold? you've got to hear, tesla's earnings come out. "after the bell," david and melissa pull it apart and get the engine rolling after the bell. okay, i was watching this closely, just as the federal reserve statement came out. dow down 12, now down 23. not that much difference here but this as treasury secretary steven mnuchin officially arrives in china ahead of what is totally expected to be a very rigorous two days of trade talk negotiations. over on capitol hill, a warm welcome at the state department. president trump formally swearing in mike pompeo as the new secretary of state. secretary pompeo wasting no time addressing his stance on north korea but could trade disagreements throw a wrench into things and blake, divert the attention? we have breaking news on north korea and the hostages being
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released finally out of the work camp there. reporter: yeah, and what we had here today in washington, liz, was a largely ceremonial event over at the state department for mike pompeo. keep in mind, he had been confirmed by the united states senate last week, sworn in by samuel alito shortly after that and pompeo hit the road as he went to a nato meeting in brussels as secretary of state. he walked through the doors of washington for the first time yesterday. but today the president has a big affinity for pompeo go over to the state department himself welcome pompeo in as his new secretary of state and pompeo spoke about, that would be front and center for him from the get-go. >> right now we have an unprecedented opportunity to change the course of history on the korean peninsula. this administration will not repeat the mistakes of the past. our eyes are wide open. time to solve in once and for
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all. the deal is not an option, the american people are counting on us to get this right. reporter: keep in mind, he is the former head of the cia, and the president joked earlier today that him and pompeo are already working on some things that have yet to reach the public eye. listen here. >> you will be doing things that you don't even know about. [laughter] >> right now they're not even a glimmer in your eye. and we have a couple going, mike, right now that lot of people know of, that are very, very encouraging. reporter: obviously, north korea is a major issue for pompeo right off the bat and, of course, for president trump, but so too is the iran nuclear deal. pompeo, who is against the deal, and the president on this one, has just until next saturday to formally make up his mind as to what he wants to do, liz. liz: what does the president want to do right now? a lot of changes here. we have ty cobb, the lead
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attorney in the russia investigation, at least in the white house, stepping down, saying -- well, he said he's gone by the end of the month. that's rather dramatic and quick. sarah sanders said this was a retirement, long planned. what happened? reporter: so ty cobb will be here for the next three, four weeks until the end of may, and what's notable about this, not necessarily who's going out, but who's coming in? and that is emmett flood, and if that is a name that sort of rings the memory bells, it should, liz. he, of course, represented president bill clinton in his impeachment hearings, and when you really look at the makeup of the legal team as a whole, it's not just cobb out, flood in, keep in mind, john dowd left a couple weeks ago as well and rudy giuliani has come in. you have two out, two in, will
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the president sit down with bob mueller, if he does sit down with bob mueller, under what conditions? and rudy giuliani saying if he does so, he only wants the president to sit down for some two- to three-hours. liz: mr. mueller would have to get going on asking questions quickly. >> limited scope, probably. liz: yeah, a lot more on this story. a lot of on the caravan story coming to a head at the moment. dow down about 40 points. we are minutes away from going to the department of justice where we understand that attorney general jeff sessions is about to perhaps talk about this. we're just waiting, and what we been the migrants is what was at one point about 1200 migrants is now dwindled to about 150 migrants at the border. you're looking at a picture of what's going on. here's attorney general jeff sessions, about hastily to make
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some comments. >> we are announcing today that we are adding 35 assistant united states attorneys to the border to prosecute illegal entries into our country. and also announcing we're moving 16 or 18 immigration judges to the border. these are supervisory judges that don't have existing case loads and will be able to function full time on moving the cases. that will be about a 50% increase in the number of immigration judges handling the asylum claims. we're not going to let this country be overwhelmed. people are not going to caravan or otherwise stampede our border. we need legality and integrity in the system. people should wait their turn. ask to apply lawfully before
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they enter our country. we're sending a message worldwide. don't come illegally. make your claim to enter america in the lawful way and wait your turn. >> in terms of those who are here now, is there a place for humanitarian concerns? >> we treat people extremely well, particularly children, they're treated with every courtesy and fly them back home after they've entered. we're treating people fine. the question is if you don't want to have to go through the problem, don't come unlawfully. it's not my problem, it's not the united states border patrol's problem, when people try to force their way into the country unlawfully, so this is something we're trying to communicate. the numbers have been increasing again heading into the summer and we want the world to know and particularly our friends in the south and central america and mexico and other countries. we want them to know that we have a generous legal system
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for immigration, we admit 1.1 million people lawfully every year and those people should await their turn. >> thank you. liz: attorney general jeff sessions, beefing up all kinds of levels of security, at least on the legal defense area of the border. this caravan that has just 150 illegal immigrants trying to breach the border in the regular way. filing for asylum. now there will be a whole bunch of judges that the attorney general says he will be sending down along with all kinds of efforts to prosecute anybody who is entering this country illegally. blake burman, the significance of this, as we look at hundreds of certainly people who are not just there to support them but to fight for them because they say they risk their lives and in danger if they stay south of the border? reporter: that is certainly one
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side of the story. when you hear from the folks trying to gain entry into the country, they say, look, a lot of them are women and children who are fleeing oppressive situations in their countries, trying to flee from ms-13 and they have horror stories back at home of what they have been through, and this is the last ultimate means. they have gotten on, this been a part of this caravan as it's been called for days into weeks trying to get to the united states border. now they are here and trying to get into the country. that is one side of the story. the story of hope of these people who are trying to come to the u.s. to make their lives better. the other side is what you've heard from president trump and what you've heard from the attorney general jeff sessions now who say, look, there is a legal way to go about getting into this country. now granted these folks are trying to seek asylum which is one way to do it but the attorney general says we have systems, we have processes in
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place, and that is the way that it should go about. attorney general announcing that he's put some 35 attorneys, 18 immigration judges down there and the message is we are not going to let this country be overwhelmed. the attorney general said, quote, it's not my problem that they're in this sort of situation. reality is whether you think it's a problem or not, it is an issue right now. that is if nothing else at the forefront of the president of the united states and the attorney general addressing it moments ago. liz: exactly, and it is such a complicated issue because this country did not say it's not our problem when eastern europeans and people from all over the world flooded ellis island to create a vibrant economic support level for jobs that nobody seemed to want, but as we watch all of this, blake, thank you very much. we will keep all of you posted if glendora more developments. a hastily called news conference and jeff sessions
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saying we're going to fight this. find the proper way of crossing this border. we can't have people running across to do whatever they want. including some of them drug dealing, some causing violence. not all of them. but we'll be watching this. another international aspect of what's going on in this nation. the u.s. sanctions recently slapped on russian oligarchs and the companies they run are leaving apparently real bruises. the financial times says president vladimir putin is likely to reinstall former finance minister alexi cued rin to be in charge of economic strategy. russia's economy is mired in a two-year recession in large part due to the financial sanctions slapped on by the trump administration. how tough have the trump sanctions been? bill broweder has taken on vladimir putin and cronies, the author of red notice, the story
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of avenging sergei who uncovered massive corruption and who the act is named. good to have you here. >> great to be here. liz: thank you so much, the sanctions, are they working? >> the most recent sanctions and these are the sanctions against the russian oligarchs, the tycoons were like a neutron bomb going off over moscow. these sanctions truly hit putin right between the eye because he's going after his own money held by the oligarchs, going after the biggest, richet guys in the country and he's paying attention there. liz: we're talking about oleg, the gigantic shareholder of the world's largest aluminum company. didn't take long for that stock to collapse. it didn't take long for putin to indicate somehow that this has become a problem.
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so when president trump says no one has been harder on the trump administration than russia. does it give it credence? it appears russia is bending because it doesn't want to break. >> i've been pounding the table for ten years to get the oligarchs sanctioned, and it finally happened a month ago. and all previous actions of administration against russia haven't been effective until the last set of sanctions. this does work. you can see it works because putin gets blustery and retaliating and so on and so forth. he hasn't said a word since then. liz: unbelievable. other aspects of the trump sanctions and trump actions, ukraine. certainly the united states sent help, weaponry to ukraine after russia tried to encroach and stole the chunk of crimea right off, is that something that the obama administration ever delved into? >> obama didn't want to supply
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offensive weapons to ukraine and ukraine was being invaded by russia and the trump administration has, and so putting aside all partisanship, the trump administration has done oligarch sanctions. they supplied offensive weapons to ukraine and put very high-value targets on the list, people like the general prosecutor's son, a bunch of other people, and so i can see russia squirming as a result of the administration's policies today. liz: do you know this alexi kudrin, going to be brought back to stabilize the russian economy which some say they have a lot of bluster, a lot of bark, very little bite, maybe an economy as small as italys right now is. >> this is complete nonsense. vladimir putin has been involved in a state-sponsored terrorist attack using chemical weapons in the uk, and now he's going to bring back a guy who
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speaks english to stabilize the economy? he needs to stop attacking the west and economy will stabilize. idea of bringing an english speaking guy is not going to stabilize his economy. liz: you would give president trump what grade, people would say he's never said a bad word about vladimir putin. russia investigation that has not revealed anything hard bitten. where do you look at this? >> trump does put out the tweets that i find offensive saying vladimir putin is a good guy. i can't agree on that at all, but his administration, pompeo, mattis, nikki haley and all these people are tough as nails on russia. i don't know where you create the balance, but it's tough. liz: what if, and this is an important question, and this is my concept of trading and negotiating, he says he's the deal maker in chief. what if donald trump trades
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away the act because putin hates it, keeps russians out of doing business in the united states. what if he trades it away if the russians vacate syria or stop in syria? >> fortunately, it's untradable. in order for the act to go away it would require an act of congress. i've been in congress -- liz: can we put up the four senators who supported the act? joe lieberman, this was at the time, joe lieberman, john mccain, roger wicker and ben carden. a bipartisan group made this happen. >> i can tell you with the exception of one member of congress, every other member of congress support the magnitsky act. liz: it's wonderful to have you here, bill broweder. everybody should read the book, red notice, a stunning historic story with redemption here. thank you so much. >> thank you. liz: 36 minutes before the closing bell rings. we are at session lows.
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the dow is down 132 points. we're coming right back. that's because they have a shield annuity from brighthouse financial, which allows them to take advantage of growth opportunities in up markets, while maintaining a level of protection in down markets. so they're less concerned with market volatility and can focus more on the things they're passionate about. talk with your advisor about shield annuities from brighthouse financial- established by metlife. ♪ most people come to la with big dreams. ♪ we came with big appetites.
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. liz: trade tension are at an all-time high at this hour. china has not ruled out using a certain weapon it has. it is america's biggest foreign creditor, and they could use it as leverage in the fight over trade. treasury secretary steven mnuchin is not concerned about that, but our next guest might feel differently. pete ricketts is the governor of the state of nebraska live from lincoln in a fox business exclusive. governor, your state is crucial when it comes to trade. how close is your state which does billions in trades with asia watching these talks? >> watching this very closely. just a few weeks ago president trump had a number of midwesterners, governors, senators, congressmen, come to the white house to talk about
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ag policy and trade to give feedback on this. china is threatening to put tariffs on agricultural products in retaliation for things the president is proposing like steel and aluminum. >> farm equipment, meat, soy, corn, where would nebraska feel it most if the tariffs drag on or multiply with asia and specifically china? >> well, one of our biggest export products is soybeans and china buys a lot of the soybeans, so that would be one if they put a tariff could impact nebraska. now what we've been encouraging the president to do is wrap up the negotiations, not just with china, we want to see nafta come to completion, bilateral agreements with japan. obviously the european union hanging out there as well. he can focus on getting china
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done. we are in planting season, we have time for the president to get this wrapped up. liz: the good news is they have to eat so definitely need what nebraska has to sell. let me shift the focus to japan there. has been talk, certainly, of a bilateral agreement between shinzo abe and donald trump. abe would like the u.s. to be back in the tpp. president trump didn't like the deal, thought it was terrible for america, but you may see it differently? >> well, in fact, before president trump got elected, this was the first conversation i had with him was about tpp and benefitted nebraska. we export a lot of beef and pork to japan, so we wanted to see tpp because it would reduce the tariffs on nebraska beef, taken it down from 38.5% to about 9%. and the president's response back, he was candidate at the
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time, wouldn't you want that tariff to be zero? that gives you insight into this. we said we want to get the tariffs down so if you could accelerate the bilateral agreement, that's what we have interest in. we saw our exports of beef to go up despite the high tariffs, we know there is a demand there, we could take advantage of the market with that demand if we can get the tariffs down. liz: if you had one thing to say to steven mnuchin and team on the ground in china, what would it be? >> it would be let's find the ground here to be able to come to an agreement. i think that everybody benefits from trade. more that we can take down the trade barriers and china put up obstacles, only recently we were allowed to ship u.s. beef to china after 14 years, over half the beef going to china is coming from nebraska. liz: wow. >> they have a lot of restrictions. we'd like to see more of the
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barriers come down. there is still opportunities. we have time, not a lot of time. we want to see a trade deal with china get finished. liz: forget about exports, how about imports? you will have 42,000 people imported this weekend to nebraska for the berkshire hathaway annual shareholder meeting. it's going to be a big one. sources are telling us it has broken ticket sale records. >> yeah, that's absolutely right. obviously a great opportunity to be able to show off our state of nebraska when all the folks come into listen to charlie munger and warren buffett talk about investment strategies. we welcome the folks. i spend a fair amount of my time talking to investor groups. i'll be meeting with investor groups from china and japan. did the same thing last year to talk about the opportunities in our state to be able to get into the u.s. marketplace. so all the more reason why the trade agreement with china and getting with japan is going to be important.
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liz: governor ricketts, thank you for joining us. >> great, thank you very much, liz, i appreciate it. liz: any time. and by the way, tomorrow team fox business jumping on a plane and heading to omaha. we have tracy brit cool, and jim weber, mario gabelli, saturday, facebook live tweets and then monday the big moment. you should set your dvr to 3:00 p.m. every day on fox business. monday warren buffett and charlie munger. what do they have to say? they've got more than 70 big companies under their umbrella but hundreds of others, and right there that's the burlington northern train display. burlington northern showthrowing so much cash off for this company. what does it is a for the company and energy and transporting things and goods? there is that. there is dairy queen, we know he owns fruit of the loom,
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justin boots and so much more. monday warren buffett and charlie munger. dow jones industrials down 123 points.
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. liz: all right, so in the commercial break, we started digging around. why is the dow down 159 points. the dollar is hitting a session low. the dollar index which is a basket of currencies against which the greenback trades -- i'm sorry session highs, session highs, that is negative for big u.s. companies that have a global footprint, that would be the dow 30. so it just means that anything they make when the dollar is stronger becomes more expensive overseas. now we have the dollar weaker only against the japanese yen
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and just barely. make no mistake, the loss you're seeing with the dow jones industrials has a lot to do with the dollar muscling higher. day three of the milken conference in beverly hills where they have a lot of dollars. among them 5,000 movers and shakers attending, there is one, only one, charlie gasparino. okay, walk us through your favorite moments at milken, you brat! i'm so jealous of you! >> well, i'm sure have you photos of this. by the way, i worked really hard here. do we have the photos of my favorite moments where i was working hard. you got to see how much i was sweating at this job. we should put them up immediately because there is no harder moment than this. you see what i'm saying. liz: it's awful. >> pretty ladies i'm talking to. liz: oh, my gosh. >> by the way, i'm working very hard there. little zen.
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there is the tesla, like it? liz: look, is that nate and al? >> that is nate and al. liz: turkey and coleslaw with russian dressing. >> they put it on the side. they got to have a sandwich named after you, lizzie. liz: they are closing. >> i know you grew up in that place, that place is so great, such an institution, it's like rayo's in new york, such a great place. i did do some work, only for you. liz: at&t, you did it right here. >> this is an interesting story. this san interesting story and i think this is going to be bigger later in the year, and it's all contingent on the government essentially losing the case to break up at&t and time warner. if that happens, you're going to see sort of an explosion
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probably of telecom media deal-making, and here's one interesting deal that is likely to happen according to my sources. bankers and telecom lobbyists are saying this that depending how the deal turns out, if at&t gets a clear victory like they basically get to keep time warner, not many conditions attached, keeping time warner, there's a lot of talk in washington and on wall street. washington meaning the telecom lobbyists that the chief economist of comcast is leaning towards making a bid and trying to upend the disney-fox deal. the bid would be for the fox assets that disney is supposed to be buying. comcast put in a bid been the fox deal was announced, it was rejected by twenty-first century fox. they didn't think it could pass regulatory muster, that was the
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excuse or predicated their dismissal on of that bid. apparently it was a higher bid. if you can show that the regulatory environment is different now post at&t and time warner that the courts much more friendly and for comcast to build out it's a vertical media company like at&t and time warner, and the courts are positive on that, what people are saying in washington and wall street is brian roberts is likely, not definitely going to do it, but likely make the bid for the twenty-first century fox assets, which is essentially most of our company except for fox business, fox news and other operations. that is likely to happen and becomes a bidding war for the assets. that is something to keep in mind if at&t does in fact prevail over the government, and prevails in a way that there aren't a lot of strings attached. judge leone, basically said yesterday when they concluded
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arguments on the case, he's got until june to decide. so we'll see. we have a week there. liz: hold on one second, t-mobile and sprint. this is day three that the stocks have not recovered, and it's a moment, even three days after the announcement of the merger, t-mobile is down 5% at the moment, i'm sorry, sprint is down 5 and t-mobile is down 5. >> right. liz: but your sources are telling you this may pass regulatory muster. >> listen, two things, people inside t-mobile tell me it's not a slam-dunk. they're going to have to prove themselves. i can tell you that inside the d.o.j., inside the antitrust division, particularly among the political types, they like this deal better, this deal is as we reported on your show, is less problematic to them than the at&t-time warner. particularly if at&t-time
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warner prevails and they do the merger, a lot of people say it could pass the regulatory muster. here's the fly in the ointment and the reason why t-mobile and sprint are cautious. there are two people in the justice department, the political types and the guys that have been there a while, and people who have been there a while may be against the deal. they voted against this in the past. liz: charlie, thank you very much. safe journey back, i'm still jealous of you. maybe i'll get a sandwich one day. charlie gasparino live from the milken conference. dow down further, lower 174. we're watching this stronger dollar pushing this index down. man: i got scar tissue there.
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same thing with any dent or dings on this truck. they all got a story about what happened to 'em. man 2: it was raining, there was only one way out. i could feel the barb wire was just digging into the paint. man: two bulls were fighting, (thud) bam hit the truck. try explaining that to your insurance company. woman: another ding, another scratch. it'll just be another chapter in the story.
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. liz: this can't be fun, hours
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before tesla reports first quarter results, a more than $2 billion lawsuit has been dropped on the electric vehicle maker's head. electric hydrogen truck start-up nicola motors claims that tesla copied big rig design. this follows a whirlwind of news for tesla and leader elon musk for model 3 production issues to three federal investigations including an investigation into worker safety and the one about the fatal crash involving the electric car's autopilot function. shares are higher right now and slightly higher ahead of the first quarter results which come out in minutes on "after the bell." what should you the investor or potential investor be watching in the report? kristina partsinevelos is live in the newsroom. big pieces of data plus the lawsuit, horrible? >> the lawsuit, we won't see the repercussions just yet. we're looking at cash, how much cash does the company have, how much is it going to burn in the near future and production of
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the model 3? there's a lot of chatter about it because they've had two company or warehouse slowdowns, they had to stop production for a few days. it's difficult to have robots works with humans, they needed to work through that. on the upside, he did say they were able to produce 2020 model 3 cars, that is on the schedule. the question is will they hit the 6,000 per month goal by june? there's a lot of skeptics out there. analysts consensus expects the company to lose $3.58 on the shares per share as well as on revenue. to climb actually higher to 3.22 billion. there's pretty much consensus is barclay's is saying they don't think they're going to hit the production targets. evercor saying the price target to drop. stock talk, if you are looking at short interest. 30% of the float is literally
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investors betting that this stock is going to fall after the earnings report. so liz, i want to end on this note, an acronym for you. model s, the model x, model e and talk of a model y. backwards e, y, you can imagine that. i will be listening for will they go to the public markets. reporter: very good point. forgot to speak on that. liz: thank you very much, david and melissa have the numbers from tesla, the stock is slightly higher. in the meantime, the midas touch with the closing bell ringing in 8 minutes, the egyptian billionaire putting big chunk of fortune in gold. billions worth. our "countdown" closer tells us whether that's the right strategy for a gold medal portfolio.
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"countdown" coming right back. dow is now down 200 points. with this clever little app called audible. you can listen to the stories you love while doing the things you love, outside. binge better. audible.
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liz: now all major indices are red, hitting opposite direct of u.s. dollar. nasdaq which was holding higher is down 28, spotify out with earnings. streaming music company's first earnings report, publicly traded company, investors will be tuning in as well as sprint and kraft heinz. the ceo of heinz live friday. but tell us. >> we look forward to that interview. spotify, here at new york stock exchange. stock is up 3%.
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they have been investing a lot in e-commerce. direct on the internet, also going to the market capabilities. digital investment should be correct terminology, a look at sprint. it is down 4%. liz: thank you very much. we want to you meet a guy. he is an egyptian multibillionaire, he put half his fortune into cold, hard gold. is that a strategy for building sustained wealth? we bring in a guy who would know, president of advisory group. give us a sense of what you stand on this theory, half of
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his money should go to gold. >> 50% is much, 2, 10 to 20, ma. you have to have conviction. i don't think it is a good financial planning move. liz: even as dow and nasdaq and s&p hit session lows, gold is not spiking higher. what is a good place for people to put their money right now at a time where stronger dollar, federal reserve weighing in. we have red. >> we like companies that don't have a lot of debt service, also treasureys, we believe overall stock market is overvalued. bull market is long in the tooth. we had a bad three months, right now investors should realize, you should only have in the
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market what you are not willing to lose over particular 10 years -- over not willing to lose. liz: i am never willing to lose anything. i think if you put through great companies and sectors that is okay. >> that did not work out for people in 2000, 2002, gm is a blue chip company, there are not many blue chip companies left. yoyou can't look long-term any more. companies change, apple, like you know one bad iphone launch away from doom. i think facebook, they have going emhave --goggles, there i, i think that dating is hot. also how many people go to facebook. every day.
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they are learning to monetize their users. liz: facebook is higher on news perhaps cambridge analytica, that got it into so much trouble, is going bankrupt. stock tumble in final hour of trade, earnings from tesla and more, right now. melissa: dramatic final hour of trading. down 174, s&p and nasdaq following down to red. david: we're glad you can join us, this is an important day. for what shapin what is happenin beltway, after the bell, more on big market movers, but first. a very busy hour, shake up in trump legal team. details behind departure of white house lawyer ty cobb and the man replacing him. a name you may remember from when he represented

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