CHARLES: PRESIDENT TRUMP
SPEAKING MOMENTS AGO.
WE'RE AWAITING TO HEAR THOSE
COMMENTS IN A MOMENT FROM THE
SOUTH LAWN.
SOME OF THE HEADLINES THAT WE
ARE GETTING IS THAT HE'S NOT
HAPPY ABOUT RUSSIA FIRING ON
UKRAINE OR WHAT'S HAPPENING ON
OUR SOUTHERN BORDER.
HE'S ALSO PROMISING TO PUT
PRESSURE ON GENERAL MOTORS.
MEANWHILE, WE ARE HEADING INTO
THE FINAL HOUR OF TRADING.
THE DOW UP ABOUT 300 POINTS, 301
POINTS AFTER THE BIG HOLIDAY
SHOPPING WEEKEND.
BACK WITH US, LINDSAY BELL, ERIN
GIBBS, KEVIN KELLEY.
ERIN, PRESIDENT TRUMP NOT HAPPY
WITH GENERAL MOTORS CLOSING
PRODUCTION BUT I GOT TO TELL
YOU, IF IT IS JUST ABOUT CARS,
AND I BELIEVE IT IS, BECAUSE
CARS, YOU KNOW, I PREDICTED
AWHILE BACK THAT, YOU KNOW, THE
DEATH OF THE CAR.
IT'S PRETTY OBVIOUS, SUVs,
CROSSOVERS, PICKUP TRUCKS HAVE
BIGGER MARGINS, FATTER MARGINS.
YOU CAN SEE HIM SAYING WHY
WOULDN'T PLANTS PICK UP
PRODUCTION OF THOSE VEHICLES.
>> PART OF IT IS JUST, AGAIN,
PART OF YOUR MARGINS.
CHARLES: LET'S TAKE -- OH, I'M
SORRY.
NASA LANDING ON MARS.
THEY MADE IT THROUGH IT.
THERE IT IS, THE CELEBRATION.
THIS IS A REAL BIG DEAL.
AGAIN, THE KEY PART, MAYBE WE
WILL GET IT ON VIDEO LATER, IS
WHAT THEY CALL SEVEN MINUTES OF
TERROR, THE LANDING.
I'M SORRY.
>> A LOT OF -- YOU KNOW, WE
THINK ABOUT JUST WHAT U.S. SALES
ARE FOR SOME OF THE HIGHER
MARGIN TRUCKS AND SUVs BUT YOU
ALSO HAVE TO CONSIDER WHAT'S
HAPPENING OUTSIDE OF THE U.S.
AND THE GLOBAL GROWTH IN DEMAND.
I ACTUALLY SUPPORT GM'S CLOSING
OF PLANTS THAT JUST DON'T
OPERATE --
CHARLES: THE MARKET SUPPORTS IT
AS WELL.
THE STOCK WAS UP OVER TWO BUCKS
AT ONE POINT TODAY, SO THE
MARKET, IN FACT, GM SEEMED A
LITTLE SLOW TO THIS DECISION.
I THINK FORD WANTS TO PHASE OUT
CARS ALL TOGETHER.
>> IT'S IMPORTANT TO NOTE FOR
THE PRESIDENT THIS IS PART OF
THE USMCA WHERE THEY ARE TALKING
ABOUT THE WAGES OF WORKERS IN
CANADA AND MEXICO ASSEMBLING
SOME OF THESE PARTS AND CARS.
DIFFERENT SUVs ARE MADE IN
DIFFERENT PLANTS, RIGHT, SO THIS
IS A SEDAN PLANT THEY ARE
GETTING RID OF.
WE ARE TIP-TOEING AROUND THE
ISSUE OF ELECTRIC CARS AND
FIGURING OUT THEY ARE PROBABLY
GOING TO DO THAT IN A DIFFERENT
PLANT.
THIS IS 14% OF THE WORK FORCE,
UP TO IT, AND THIS IS JUST A
RECALIBRATION OF THEIR SUPPLY
CHAIN.
CHARLES: 313,000 GLOBAL WORKERS,
LESS THAN 5% OF WORKERS TOTAL.
LISTEN, THIS IS A KEY AREA FOR
PRESIDENT TRUMP.
HE WANTS THOSE MANUFACTURING
JOBS SO WE GET THAT PART OF IT,
DON'T WE?
>> WE TOTALLY GET IT.
BUT THIS ISN'T THE FIRST COMPANY
TO START ANNOUNCING LAYOFFS THAT
WE HAVE SEEN THE LAST COUPLE
MONTHS.
THIS IS SOMETHING I WANT TO KEEP
A CLOSER EYE ON, TOO.
WE'RE AT THE END OF THE YEAR,
IT'S TYPICAL TO GET LAYOFFS AT
THIS TIME OF YEAR.
WITH THE JOB OPENINGS NUMBERS SO
HIGH, BUT AT THE SAME TIME,
JOBLESS CLAIMS RISING, IT'S JUST
ONE AREA TO FOCUS ON.
CHARLES: SO ERIN, AT THE END OF
THE A BLOCK WE TALKED ABOUT WHAT
KIND OF SIGNS YOU MIGHT BE
LOOKING FOR THAT MAYBE WE ARE
TURNING HERE.
IS THERE ANY ONE THING OR A
COMBINATION OF THINGS?
>> FOR ME IT'S INVESTORS NOT
REACTING TO NEGATIVE NEWS.
BECAUSE WE HAVE SEEN IN THE PAST
TWO TO THREE WEEKS THAT EVERY
TIME THERE'S ANY SIGN OF
NEGATIVE NEWS, WHETHER IT'S A
SLOWDOWN IN TECH EARNINGS, TRADE
WAR CONCERNS, THE MARKETS
IMMEDIATELY SHIFT EVEN IF THEY
WERE UP EARLIER DURING THE DAY,
THEY START TANKING DOWN.
I WANT TO SEE SOME LET'S SAY
NEUTRAL TO SLIGHTLY NEGATIVE
NEWS THAT THE MARKETS HOLD
STEADY OR GO UP.
AND SO BEING ABLE TO SUSTAIN
THAT FOR MULTIPLE DAYS, NOT JUST
ONE OR TWO.
THAT COULD MEAN FOR ME THAT
SENTIMENT HAS STARTED TO SHIFT,
INVESTORS ARE BECOMING A LITTLE
CONFIDENT.
BUT AS LONG AS WE HAVE THIS
PERVASIVE FEAR AND WE HAVE THIS
COMBINATION OF FEARS, WE HAVE SO
MANY THINGS TO WORRY ABOUT.
CHARLES: LOT OF QUESTION MARKS.
>> LOT OF QUESTION MARKS OUT
THERE.
FOR ME THAT TURNING POINT IS
GOING TO HAPPEN UNTIL WE SEE TWO
OR THREE DAYS OF INVESTORS BEING
ABLE TO BRUSH OFF A LITTLE
NEGATIVE NEWS AND FOCUS MORE ON
THE POSITIVE.
CHARLES: LAST WEEK, YOU LOOK AT
THE SPIKES IN VOLUME, THEY WERE
HUGE.
EVERY TIME WE TURNED DOWN THE
VOLUME WAS HUGE TO THE UPSIDE,
NOT A LOT.
THE CONVICTION CERTAINLY TO THE
DOWN SIDE.
WE ARE TAKING OUT A LOT OF
FORMERLY STRONG HANDS.
YOU WAKE UP THE NEXT DAY AND
FIND OUT YOU WEREN'T AS STRONG A
HAND AS YOU THOUGHT YOU WERE.
>> YEAH, BECAUSE THIS MARKET,
THERE IS AN ALTERNATIVE NOW.
REMEMBER, BEFORE THERE WAS NO
ALTERNATIVE MARKET.
NOW THEY CAN GO INTO FIXED
INCOMES AND GET OVER 2% FOR A
TREASURY NOTE.
THERE ARE ALTERNATIVES FOR
PEOPLE TO PLACE THEIR MONEY.
WE ARE SEEING SECTOR DISPERSION.
YOU WILL HAVE WINNERS AND LOSERS
AND THAT'S WHY YOU ARE SEEING
THESE WAVES OF VOLUME COME INTO
THE MARKET AS THEY START TO
REALLOCATE.
CHARLES: ANY STOCKS, ANY AREAS
THAT LOOK ATTRACTIVE TO YOU
RIGHT NOW?
>> YEAH, WE'RE STILL SEEING
OVERWEIGHT THE CYCLICAL SECTOR.
WE ARE STILL LOOKING AT
TECHNOLOGY AND ENERGY,
ESPECIALLY AT THESE LOW LEVELS.
WE THINK GOING INTO THE END OF
THE YEAR WE WILL EVENTUALLY GET
THE SANTA CLAUS RALLY.
THOSE ARE THE SECTORS THAT WILL
DO WELL.
CHARLES: SEEMS LIKE CHEVRON OR
EXXON IS JUST A NO-BRAINER TO ME
HERE.
HEFTY DIVIDEND.
YOU KNOW IT'S GOING TO COME
BACK.
NOU THE STOCK WILL COME BACK.
YOU KNOW CRUDE OIL WILL HAVE ITS
MOMENT WHEN IT GOES BACK.
THAT SEEMS LIKE A WIN-WIN FOR
SOMEONE LOOKING FOR A YIELD AND
EVERYTHING ELSE.
>> THE TECHNICALS IN OIL, YOU
LOOK AT THE OIL PRICES COME DOWN
SO LOW AND THE DEBATE OF WHETHER
IT'S SUPPLY OR DEMAND, I THINK
WHEN WE COME OUT ON THE OTHER
SIDE OF THIS YOU WILL SEE THE
DEMAND IS STILL THERE.
CHARLES: YOU MENTIONED
TECHNOLOGY.
>> I DO LIKE TECHNOLOGY HERE IF
YOU LOOK AT NVIDIA.
DATA CENTERS AREN'T GOING AWAY.
WE WILL NEED 4,000 MORE BY 2020.
WE JUST TALKED ABOUT CARS.
GUESS WHAT, THEY ARE THE CHIPS
THAT POWER THE CARS, AUTONOMOUS
DRIVING, NVIDIA SOLD OUT
COMPLETELY, WE NEED LEADERSHIP
FROM.
FINANCIALS ARE DOING WELL, AS
WELL AS TECHNOLOGY.
CHARLES: FINANCIALS THE NUMBER
ONE MOVER.
YOU LIKE ANYTHING NEW SINCE LAST
TIME WE TALKED?
>> THERE ARE A COUPLE STAPLES OF
INDUSTRIAL, NUSKIN, A SMALLER