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tv   Closing Bell  CNBC  January 27, 2016 3:00pm-5:01pm EST

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different. when they fall out of favorite it's when the addressable market is full. not necessarily when we head into a macroeconomic dissipation. >> thank you, guys. thanks so much for wraching "power lunch." "closing bell" starts right now on a fed day. see you tomorrow. >> welcome to "closing bell", everybody. i'm kelly evans of the new york stock exchange. >> i'm bill griffeth. the fed is out with this statement. i love doing that. here it is. >> and there is a disagreement already about what they're saying about the possibility of a rate hike in the month of march, some say it's taken off the table, others say it's still very much on the table. we'll take a look at that, and here's some of the intra-day moves in the market since the statement came out. you can see the stutter step that happened with the s&p, above 2:00, now we're at the lows of the session with the s&p
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down 16 points. the dow is down 184 right now. yields looks the treasury curve also went down. the ten-year is right at 2%. the dollar went lower, and that pushed gold higher. gold was almost at a 12-week high at one point. we're at 1127. it's interesting. we'll come back to this. the fact that gold is still moving higher, interest rate still moving lower would suggest that they're still in the backed-off mind-set. we'll have more on what the decision really means to the global economy, with the dow now down 200 points. coming up, dorothy ever, and is krishna gupt that will be joining us with reaction. >> an there's disagreement among those four. mean time individual stocks.
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we'll bring you ceo's tim cook's comments on all of that. and another grade of earnings that could change the market's directions. facebook's numbers will be front and center. we'll bring them as soon as they're released. all right. let's get to the fed's interest rate decision. the statement after its two-day meeting. steve liesman is at fed headquarters with the latest. >> bill, i want to share some of the commentary i've gotten from the no economists on the street. they get right at the debate whether the fed is signaled some sort of pause in march. steve blitz over at itg saying the fed did not stubbornly hold to the confidence, they gave them a little credit. over at ubs writes in fomc, talk to us in a few weeks steve says
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it was not as dovish, but chris rupkey said the fed hits the pause button. they lo longer are ceasing the risk to the economy as balanced. they're saying they could do that. hats off to jim beaunga, who writes in the last time this happened was the eve of the iraqi war in 2003, saying it's closely monitoring global economic development and will assess the balance of risks in light of what happens with those factors. >> the market conditions improved, but they did note the u.s. economy slowed late resist year, it says inflation continues to run below target and removed the phrase where it was "reasonably confidence that inflation would move up toward the 2% target. i went into this meeting with a checklist of five things i thought the fed might do. let me at the you how i think the fed did or did not meet the
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expectation. did it say there was a global drag on the u.s.? not in so many words, but said it was monitoring global financial and economic developments, so that also applies to volatile markets. let confidence in inflation i thought went further. did it signal a rate hike pause? yes, ultimately i think it would be hard for the federal reserve to not being competent inflation to going to a rate hike in market. that's not what's expected, but right now the fed has dialed back one step and would have to go back to zero again. i think the hike rates, to me there's a pause signal, but some people didn't hear enough to be so confident they wanted more from the fed there. >> yeah, young being at golds malbeing one of them. we're going to bring in some other voices to this discussion. joining us dorothy weaver s. now chair and ceo of collins capital
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and ylan mui, financial reporter at "the washington post" and cnbc contributor. ylan, you read the same thing we did. the question that's come up is did they signal a pause for march or not? what do you think? >> i think it's really uncertain at this point. maybe i'll revive steve's phase earlier, if you know, they won't go, right? it seems like there's not a clear consensus of how the recent turmoil in the financial markets of affecting the u.s. outlook. however, i will point out that everyone is so focused on the oil on and markets. if you read the statement, the very first note the federal reserve makes is that labor markets have continued to strengthen. you've got to remember janet yellen is a labor economist. that's hurl background and training. when you look at the labor markets, the gains in job creation, when you look at how far the unemployment rate is falling, there is a concern that unemployment can fall too far
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and the fed will be trying to nudge it back up, in the process crazying a recession. >> ylan, you highlight that, and steve, ester george, very hawkish reiterated that a few weeks ago, said thinking the labor mac is at or near full market. i think the fad is still on a tightening path, did not really come off that path, did not change the direction. i will point out that ultimately the fed is not going to go from being unable to assess the outlooks into rate hikes. when you ask yourself the question, you know, did the fed signal that march was off the table? there's no expectation at all that's reasonable that the fed should signal in a march is off the table.
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it's two months from now, they have never given that clarity of guidance what it will do two months from now with all kinds of data to come in. i think that's an unreasonable thing to ask. did the fed go as far as it could go? yeah, i think it may have done that. >> dorothy, that's been my point. the people who say they didn't take march off the table, would you expect them to be that explicit about their intentions? >> no, absolutely not. >> the last thing i want to do is -- that's the last thing they want to do. who would have thought as much could have happened in the last three weeks. who thiol we would have seen the response in the markets across the globe. why do they think there will be this ultimate clarity. >> if you were back at the fed, how would you vote?
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>> absolutely i think pausing was exactly the right thing to do, and i think there's a very good chance that march will be another pause. it is, when in count, don't. clearly we're getting deflationary pressures from commodities, from the industrial sector is certainly feeling them, but point made in terms of the fact that wages are beginning to be a bit of like at the end of the tun. that is the one that is most important. >> guys, i want to make one other point here. i don't know the extent to which the fed feels an urgency to meet all the markets demands, onit feelings the sense of urgency. there is a bit of significant dissonance here between the urgency in the market.
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they are not feeling it. they're assessen, whereas gundlach has assessed and sees the outlook as being fairly disastro disastrous. thank you for your insight. as usual we can't agree on what the fed actually said. >> that's what makes the market. >> neither can the fed. >> neither can the fed, apparently. let's move on to our "closing bell" exchange, gerard fitzpatrick is with us today, steve grasso from stuart frankel is at post 9 with us, and rick santelli checks in from chicago. steve we're about the lows of the day here, the s&p is at 1881 right now, how do you read the market's response? >> i think the market got way ahead of itself, bill. more often than not it does the same type of thing on every fed day. when you look at oil, oil ran up pretty good on a spike intraday,
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and then sold off right on the fed. if you look at that as being your indication or canary in the coal mine, it's just got recovering the energy space. that space has been so beaten up. they're worried about the dollar reaction. i don't think the fed should have ever changed, i don't think the fed is going to raise again. the checklist, if you would have done that checklist and put it on my paper, the last time they raised or the most recent time they raised, they shouldn't have raised then, either. there's no clarity. this is the most unclear the fed has ever been. >> gerard, where does this leave markets? >> well, it makes it interesting. i think there was enough of a table there for a march hike. you read the report, written nine 250i78s the word "labor or "jobs, and right next to it was increasing or improving or
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strengthening. maybe there's enough concern to feel there will be a pause, but we're looking ahead and our view is employment gains will be solid the next two months. we think that would be enough no the fed to hike in march. you look back, october 6th, there was only an 8% implied probability. a month later, we get an economic jobs number, and it goes up to 68%. our view would be the jobs would be better over the next month. >> they're already pretty good. can you get much better than adding 292,000 jobs in a month? isn't the risk larger to the down side? >> i think it would be continued strength, but even slightly down from there, which would be our general view, still solid, and that should be enough for them, staying on the journey for higher rates. >> rick, i know you place more emphasis on how a market clouds, but initially when the statement
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came out gold higher, oil lower, what was the market responding to there, if anything? >> if i was looking at a live market intraday, it wouldn't be any of thousands. it would be the euro/dollar futures. the green is 18, the blue is 19, the gold is 20, and they're all liquid, by the way, they were all down roughly six to seven basis points. they're like fed fund futures. what's what he called them, why? they were performed. pfizer 143, unchanged. tens are 2% up one, 30s are up, stocks are down 230 points, 250
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now. here's what i see. your dollars are telling you it was dovish the treasuries are telling you that nothing has really changed, and the stock market is telling you if they don't tighten, that's probably not good, either. i think we're at a place that nobody wants to call out. the stock market's down. you can tell me the components, i get it, but that's not to say that tesla, the apples, everything that it wasn't boosted by what the fed was doing for years. they are, they all are. the whole the money markets as well as anybody, just a theory i'm going to throw out there, you talked about some of knolls euro dollar forwards, are there signs of stress that people are trying to grab for u.s. dollars? if the fed was able to talk it down a bit, across these gauges,
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in other words, is the availability of this is dollar more important that is the potential reading here day to day on u.s. economic conditions? >> somebody with a terminal illness could definitely feel better by taken ten advil, definitely, about but it's not going to cure them. yes, what you are saying is true, but what's going on in emerging markets, how they react, how much debt was created in dollar terms. that was because of the central banks, it's one of the things they're going to have to deal with. i just don't understand why they would let us go into a recession that current policy levels, we're going to go either way if it's destined to be, but yes, you think pulling off the band-aid not in slow motion, in slow motion to the tenth power just is not a smart idea. >> steve, what aring going to do now? we're still waiting for more earnings.
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that could be your indication. you have to be above it to more often than not, you tess the recent lows, so i would look on the for lower. with lack of global growth and no inflation. they don't care about employment now. hang in there, folks, just spoke with jeff gun lack, this could be interesting. >> i exchanged e-mails to try to gauge his reaction. telling me the fed statement, quote -- has exactly the tone that was expected, but the market needs more, that the -- it's a tough backdrop, he says, when earnings are not rising, profit margins are falling and
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the fed is tightening. he goes on to say the dots are the hope, but the markets already driving the bus, in terms of my asking him whether he thinking the fed is on coring for march. he doesn't think the fed should raise rats. onhe thinking they will, either. i also think he's clearly making the point you can look at the dots and where the folks on the fed are projecting the future course, but as he said earlier this week, that the market is driving the bus, unless the fed dials it back, the market will make them look awfully silly. >> scott, thank you so much, or scott wapner having gotten comment from jeff gundlach there. you're talking about jeff looking at a very different time frame, than the federal officials that's correct kind of
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backward-looking. is it possible in the past that markets can keep pounding this thing under they demand more of a response? >> i think to even ask that question shows how much things have changed. markets are important, i understand that, and federal reserve and central banker don't want undue market volatility, but this was you have their own making. whether it was a better outcome than if they had doing nothing is for history to decide. all's i can say is they're kind of like in the landscaping business, and they're never going to pray for a drought. >> let's get a couple quick comments from gerard and steven on this. do you green. the second thing is the forward
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look fundamentals. we think that's better, so cheaper valuations. i think that would point towards the market moving as it has in the past toward a higher chance of a fed hike. i think the fed will hike in march. >> steve, what about you? >> i think you have to look at stocks. if you're goods to investment in this marketplace, just understand if the whole market is not going down, you have to pick the one that's going up with a landscape that's terrible. you have to go for yield. stay with utilities, with the tell coms, hide in those names, high in quality balance sheets. scott, you have something else, buddy? >> i was going to react to what rick said. i mean, i know it's so far-fetched to think, but isn't it possible that instead of merely talking the book that jeff gundlach is simply calling it as he sees it, he said months ago if you were dropped on planet earth and looks at the
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current economic environment, you would probably think that the fed would be easing rates instead of hiking rates. it just seems as though he's talking his book in the way he responsibilities more than anything else. >> i don't think he's talking to his book, but the mo dulles operandi of any giant fund where the fundamentals donnell mean or signal or shake out the way they normally would for fed-related reasons. i think that will always put him more in the camp of the fed than anything else. if you keep the fed policy in place, you can kind of pretend you are trading fundamentals. it doesn't about the book, but about the business he's in. leverage is must tailsier at low interest rates. all right. now we can go, guys. thank you all.
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scott, appreciate it. >> a little texture there to the conversation. >> very much. about 40 minutes to go 2349 trading session. the do you hovering near session lows, now down 265 points after responding high unusually, unless the s&p 500 down 29, the nasdaq especially with weakness after that, down 114 points, 2.5%. >> and we're knot finished on this blackrock's rick reeder will join us, lowering the number of times that the fed will rates interest rates this year. he'll speak with us exclusively. apple's market cap is sinking, and we'll sdup the plans to -- can they help keep the market share above alphabet's? you're watching cnbc. e*trade is all about seizing opportunity. so i'm going to take this opportunity to go off script. so if i wanna go to jersey and check out shotsy tuccerelli's portfolio,
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welcome back. markets here are under pressure. the dow is down 260 points, s&p 500 down 27. there are the components of the dow, four actually in the green. they include some of the perhaps yield heavy places, where
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investors are looking to hide out. and nike are down there as well. boeing expect aircraft deliveries to decline. following those lower than expected iphone shipments during the holiday season we told you about last night. >> on that conference call last night, apple's ceo tim cook noted his concerns about the global economy and china in particular were being manifested. listen. >> we began to see some signs of economic softness in greater china earlier this month, most notably in hong contingent.
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we remain very confident about the long term potential and the large opportunities ahead of us, and we maintaining or investment plans. >> at the turned -- and cited strength in apple's services sector. >> because our customers are very satisfied and engaged, they spent a lot of time on their devices and purchase apps, and other services. they are also likely to buy other apple products or replace the ones they own. because of the enduring value of the device, their replacing is likely higher to be given or sold to someone who will also love and use it often. s. >> them alphabet is closing in mike has some thoughts. >> actually they closed the gap
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and have overtaken apple. so essentially if you -- of course apple has more of it. google alphabet is actually bigger, which implies the market has a higher value on the business of alphabet than it does the business of apple right now. a couple reasons here, people have been saying with some justification that apple stock is cheap, even at the highs, 30% from here, it seemed cheap. it was trading at a lower p.e. multiple. why is that? it's because the market right now wants big platform companies kind of passively collecting tolls on these tremendous network, which is what google is. apple has to convince a couple hundred million people a year to buy a new phone. tougher to do at least in the market's perception. apple has had lower margins for a while.
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also interestingly, you don't have to worry about china risk with google, so it used to be a big drawback, now perhaps a net benefit. as. >> working heart to outperform apple. >> absolutely. it really does show what the investor base prefers right now. it doesn't mean it's going to continue that way. obviously apple is firmly a value stock unless earning really fall off the cliff. the market is never going to pay for that cash dollar for dollar, but can treat it as a downside cushion, so not at all the case that alphabet is directly steals apple's lunch, but clearly an interesting contrast. >> not much of a horse race when
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one of the horsts is going the other direction. >> thanks, mike. the dow just off the highs of the session down 229 points. >> a flurry of after the bell earnings are heading our way. we'll give you the number to watch for and the moment they hit the tape. also when we come back, another major european bank sounding an earnings warning. we have a special reporter whether what happens in europe impacts us here in the u.s. after this.
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the consensus seems to be the fed's statement was dovish. that used to soothe the stock market. not today. look at the nasdaq, apple among the drags there, down over 2%. >> here's something to think about. if we close here it would be the first time the s&p would be lower while crude oil is higher on the session. so everybody is hopes for a break there. a major european bank sounding an earnings alert. >> this time rbs, with charges related to past misconduct litigation. these charges basically wipe out expectation, deliver a profit for the year. is this new will likely make it
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different. remember, rbs shares are down kneely 40% over the past years, but the pain not limited to the just today striking a de, but experts say more needs to be done to help lender manage their losses and improve credit quality. worries over italy's financial system coupled with weakness in emerging markets has european banking stocks lower. ought to be down about 15% this year, so definitely a sort of concern, if mario drawingi wants that recovery, they need a strong banking system. >> and now -- thank you, seema, with an update on the european financials. about 30 minutes to go here,
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the dow is down 219, the s&p down 21. oil prices are still lightly higher. >> when we come back, arthur cashin himself tell us what he's rashing. and rick reider will be here.
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joirching me arthur cashin from ubs. it's widely considered that was a do muchish statement from the fed. that used to be positive for the stock market. >> i think there's a couple things going on, even though the stock market is my business, i have keying off the dollar. the dollar moved in a way that proved it was very dovish. that puts the fed further in line with the ecb. it has since come off that. there is some concern that can wasn't dovish enough in the sense that people were hoping,
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not four times e. we're going to do more than hit the pause button. there's a small minority. maybe 15%, maybe 20% at the outside of people down here who think that it was dovish enough that the fed may be really frightened and something bad is out there. so officially they rallied, then they pulled bag because of that uncertainty. as we were talking, it gets back to alan greenspan's comments. if you understand what i'm saying, i'm not doing my job. >> a difference of opinion from a single tame here. right now the close is leaning somewhat -- so i think the pressure will remain. i think people will wait to see what happening tomorrow, and at the end of the way, the bank of japan will be doing things. i personally will be looking for the initial claims which have been worsening if they worsen
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again tomorrow, i think that pushes the fed back. we're going to take a quick break. a little more than 20 minutes to go in a says, which is negative despite cruel out being positive. the nasdaq down 99, on the apple disappointment, as we continue to digest the fed's statement. rick rieder will tell us what he think about whether they will raise rates again this year. and whether they're -- al bell it a bit late.
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here's a look at the strongest correlation we've been watching. 96%, and crude oil, well, what's happening today? we are seeing stocks move lower. how many further hikes will we
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see? many are expecting four. an exclusive, he joins es here on post nine. >> you know, i think the economy is starting to come off. we've been on the board a number of times. i think the economy has been operating at a good level. i think it's coming off the board and global conditions are concerning. i i could see it -- coming off the boil. they're starting to use the r word. i think people underestimate how solid this economy was. i think you're getting,
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including what you're see, i think ear getting the tail end of a solid consumer, and payroll that's been solid. i think tell keep -- but there's no doubt in my mind that corporate spending is decelerating. i think one of the things where we focus so that on the fed, we look at the capital and cost of dead. it's moved up markedly. no company is benched off of is much less important. >> there's a lot of people watching. and in some cases, right? for companies. >> if you look at risk-free rates, obviously you look at the u.s. you have seen this chasm open
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up, and it's moved out, and now where companies can borrow is very different. >> is this the fed's fault? in other words, you follow the dollar, thieves jawboning the end of quantitative easing, that has happened in tandem. when people say what was the catalyst that made it more expensive for companies too borrow what would you say? >> just a recalibration? >> listen, i don't think it was the fed's fault, but i think the fed should have moved a while ago. i think there's so much focus on this go 25, i think they could have kept it at 1% for a while. i am sympathetic that now maybe we should be thinking about easi easing, so i don't think it's the fed's fault. and i do think the cap ex is slowing, so i do think that's changesed. >> what are you doing about it
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right now? >> first of all it's a hard environment to make money in, for sure. i think you have to manage your risk differently. we're running a significantly lower risk profile than we have in the past in fixed income, there are assets, i think carry wins the day. you think about parts of the commercial mortgage market, even parts of high yield that are now getting you 6, 7, 8% yield. if you think that beta or equity risk will be tougher, which i think it will be, boy, if you can capture that yield and hold it, not to say you won't have mark to market -- >> the people paying those office leases, even some of the residential mortgages. >> listen, i don't think the economy you talked about is going into recession, but you've got a decent economy that's just slowing a bit. those assets will be money good. >> does oil have to bottom before everything gets better? is that the key right there?
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>> i wonder this correlation, oil for the developed world, not saying don't cap ex or hiring in the -- i do think that one thing that is important is oil coming down. there were tremendous buyers of assets in the part of the world that was building reserves, buying u.s. assets on the back, and i do think it creates mideast tension. i do think that oil will stabilize. i do think it would be lower than where we are today. i think you have to clear out the inventory, but as long as we gets in around this range in the mid 20s or so, i think it will be okay. >> rick, thank you. >> always good to see you. rick rieder from blackrock. with 314 minute toss glo in a session, the s&p is down i, the nasdaq the hardest hit today. down 95. >> and we have more earnings coming fast and furious after
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the bet. coming up, facebook qualcomm and ebay among the others. we'll run thus those numbers to watch, coming up next.
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welcome back. we mentioned the impact apple has had on this market. >> i know what you're thinking. what happened to the fang stocks -- really the fana stocks now. apple is down about 4.5%, but there's facebook down 2.5, getting ready for the earnings, and alphabet all down today. >> down almost 7% today. again we're going to hear from facebook and some of the other after the bell. in fact a title wave, and we'll have full -- julia boorstin on facebook. and josh lipton on ebay. let's begin with facebook. julia, what are we watching for? >> with facebook so massive 1.55 billion years, the key thing is maintaining the off of -- so
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facebook analysts expect 3.43% user. that would be a 15% increase from the third quarter. now, facebook has beaten expectation? 12 out of its last 14 quarterly reports, but the stock trades pop the follow day, so it would be interesting to see what happens with this earnings report. was well as video advertising growth. >> back to you, julia, in a few minutes when those numbers come out. >> part of it is in -- they preannounced looking for 90 cents on eps, on 5.69 billion in revenue. again, a lot of that is locked in because the company raised its eps guidance back a
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september 15th. at least some model ofs samsung's flagship galaxy phone which we should hear more about next month in barcelona. the dang is the street wants to see equally strong revenue in the march quarter and even more profitable around 1.02, given the caution in apple's report last night, it might be a lot to ask. >> now jon, thank you, what should we expect, josh, for ebay. >> wall street looking for eps on revenue of 2.3 billion. despite the bottom and top-line results, the number they'll focus on gmv. the total volume of goods. last quarter remember it was down some 2%. this quarter basically sees it flat at 22 billion on a reported
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basis, heading into this print, ebay stock up some 13% over the past 12 months. bill, back to you. >> josh, thank you very much. we have already established that the nasdaq is the weakest of the three major averages. margaret brennan has a kind of lodown of what's been going on there. >> i think you can see it's just a sea of red here on the knead dab, we're done more than 2.2%, though slightly off the lows we saw earlier. the worst performing, and really been the kay all day today, but we have seen the selling accelerate on the heels of that fed statements. oople is down a whopping 6%. on the heels of earnings last
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night, that's a big move. other large-cap tech names, the fang stocks are sliding lower. facebook, all to the down side. we're seeing biotechs notify dive with some of biggest names, all down more that 5% apiece, and three of the day's biggest losers, we're also seeing the selling accelerate. priceline, tripadviser and expedia after goldman sachs downgraded the first two, just looking at the nasdaq we're done 103 points right now, down to 44.64. so, again, a sea of red coming into the close. back over to you. >> morgan, thank you very much. about 5 1/2 minutes left on the trading session. art cashin stopped by a short time ago and said the buyers and
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sellers have surgeally -- they've all found a partner. >> and everybody, by the way, has going back and forth. quincy crosby joins us for more thoughts. just what is the impact on the fed's decision not to raise rates. >> no one ever thought they were going to raise rates, but the market conventioned itself that the fed was going to super-dovish especially when mario draghi, and the market was quillsed he was going to be even more dovish, and the market just, you know fell off into the deep end. this is what's happening today to a lesser extend, but the fed basically said we're still here, we're watching, monitoring, but don't think this is the end of the rate hikes. it isn't. >> i know more than a few small investors are so tired of the volatility. what do you tell them? >> we tell them that actually
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the earnings season hasn't been that bad, american companies are very good at cutting expenses, which what we have seen despite revenue growth not as strong and ear getting nor and more attractive valuations. >> let's talk for a moment about the u.s. dollar. you know, how much of a break is that to post good earnings and the economy to grow? >> companies we have seen on the industrial side, apple has said the u.s. dollar being stronger is difficult. you couple that with weaker demands, it just exacerbates the ability for companies to do well. that combination is proving very, very difficult for our exporters. >> that's the real concern. we'll pick up more at the top of the hour. thank you so much. >> see you at the top of the hour. cord any reagan will join us with a quick recapped of what happened in today's market action. it all -- the dividing lines at
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2:00 eastern time before and after the fed announcement, and we saw the initial rise as the announcement came out and it came back lower again. the ten-year, a lot of the yields off treasury curve went lower as well. the ten-year is down, back to 2% now. the dollar index also moved lower on the dovish tone to the fed's anounment. and so if the dollar goes lower, what goes higher, yes, that would be correct. gold and that's up $6 right now, or a gain of half a percent, earnings are coming out with facebook, ebay and called op, all trading lower. >> very interesting day. a lot of trader set we wanted to hear an acknowledgement. they did get that, but perhaps the fact they dialed back some
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of their sentiment about the possible rate hikes going forward and the other statements is what really jarred the market. it was an interested kind of delayed reaction. apple shares also continuing to fall here. that was one of the big drivers earlier in the day, as of course it is a dow component, and very, very important to the market. netflix, too, another big mover that continues to fall here. >> everybody is defensive, or at least that's the tone right now in their investment philosophy. >> exactly. and we're watching the financials, we're watching small and mid cap. this should be performing if you believe the economy is going to do well and yields are going to rise. instead utilities are doing well, consumer staples, and some consumer discretionary. the other thing is, this fed meeting had all of the highlights of an actual press conference. we'll hear janet yellen in two weeks, that was going to be monitored very closely by
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emerging markets, gold, you name it, commodities, the dollar, that's the meeting that's going to be very important s. capitol hill. >> the first thing the fed mentioned was the job growth, which they are still hopeful for, which would seem to bode well for retail. we didn't have such a retail climble hot dale season. >> i think they're being very fickle. things that were winners last year are not winners this year, and vice vera. that's confusing if you're an investor to try to figure out what's going on. walmart, often a defensive name doing very well, had a rough year last year. >> and it's positive today, though, one of the few dow components is higher. >> but take a look at americans taking advantage of the yield curve. the mortgage rate is down and buying houses, they're going to have to put up window shades, masking tape. >> though we haven't seen them plow those gas savings back into -- that's been interesting,
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too. >> plow being a good word right now. a down day after a big up day yesterday. what comes next? what about the economy and the fed? student for the second hour of "closing bell." a lot of earnings are coming yourically. way. see you later, kell. >> thank you, bill. welcome to "closing bell." i'm kelly evans, what an afternoon on weight. let's take a look, and the decide not to raise interest rates. the dow declines 222 points, that's good for a decline of 1.4%. apple's weak performance weighing on that. the s&p was down a per, and the analysis darrick hit by apple, but also a bunch of oth?
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and nasdaq was hit by apple, and now another barrage of earnings. julia boorstin, and jon fortt, and josh lipton and seema mody. first, though, we have our own mike san tolli here, and tim seymour. mike, i get the trillion dollar question is did they or didn't they rule out a march rate hike? >> they certainly dug explicitly rule it out? the glancing nod that the fed gave in the same to these global concern was probably the minimum they were going to do. all they're doing is moving closer to where the market has already gotten to. i honestly think when it comes to stocks, we're still in this mode, we talked yesterday, kelly, about you fact that all these story lines have about a
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one-day persistent and then change. >> one interesting think is the diversens slightly with crude oil, and equities couldn't make of it. >> we were finally, carol, giersch that bouncing crude oil. >> and i'm disheartened that the fed is having such an impact on the market. whatever they were going to say today, had they come out and said it's off the table, that wouldn't have been good news, either. so what was the market expecting? it was not going to be good news for them either way. the fact that it's still having so much of an impact just shows how much family and how much jumpiness is in there, and not a lot of confidence. i think that that is a really bad signal for the market. >> you would agree, tim seymour? >> it's hard to disagree. ultimately this is a case where the data tells you that the fed could never be hiking in this back drop. if anything, the yellen fed has a lot to prove in terms of credibility. there's certainly an understanding that the fed has paid a lot of attention to the
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stock market and the global markets. that's why i think people expected more out of the filled tod is it possible to see the fed go in this back drop? >> let's have a quick look at shares of ebay. the earns numb be across the tape looks pretty much debt on to what the market was expecting. we'll have more on that in just a moment. how significant was it last night? >> you now have macro concerns, they're citing china, and now bigger questions about just exactly what the trajectory will be for iphone. the world is say it's not cheep enough, given the fundamentals. i don't think in any sense that
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apple dragged down the market. >> there were plenty of other contributors. ebay shares are down more than 9% on the earnings results. josh lipton has more. >> kelly, ebay just reporting, reporting 50 cents on 2.3 billion. that is smack in line, kelly, with what the street was looking for. just looking through the release, the marketplace platform delivered 20.7, total value of goods sold. that was lower, than what the street was looking for. turning to guidance, a disappointment. net revenue 2.05 to 2.1 billion on eps of 43 of 45 cents full-year guidance also disappointing. we see the reaction. conference call starts at 450678930 eastern, kelly, and we'll be on it. >> josh, thanks. what do you think, carol? >> even though that's what the analysts were projecting, there was a whisper that they can't
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expecting a better number. i think ear suing some of that downward pressure because of the whispers we were expecting not a better number, but better guidance. not necessarily from the base plate form, but with share buybacks and the like. >> don't know where the shortfall is coming from. they do have a pretty big european business. i would also point out, again without knowing where the shortfall is, not all of amazon's victims are brick and mortar. they're playing the same way. >> tim, what did you think about amazon trading lower in this suite today, do you want to stick with a company that's fundamentally taking share? why does it always seem to be carried out with the bathwater? >> look at netflix, i think a lot of stocks, even if they were kind of keeping this one-to-one growth multiple expansion, it's a plates where the market doesn't have tolerance for that. the market i think is looking to be defensive.
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i think investors question, finally, can grow at this rate. i would art a higher quality company with a better earnings visibility that is some of these other guys, yet i think that's the tone for amazon. they followed the multiple guys, in a market where people ask questions later, i think that's what's going on. >> if you were interested in the stock before, now you can get it a lot cheaper. >> well, i think ebay is definitely on some level should have been seen as more defensive going in here. guidance is quite poor, but it's a company that has 2 to 2.25 billion of free cash flow generation. it's a company that in 2017, i think it's around 11 to 12 times, so it's not a high multiple stock, almost on some level being treated as more of a utility, but this is a disappointing result when you consider the guidance. >> facebook earnings are out. our julia boorstin has the
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numbers. >> kelly, it looks like a big win on both of tom and bottom line. facebook reporting q4 revenue of 5.84 billion versus expectations of 5.37 billion. adjusted earnings per share coming in at 79 cents. that compares to wall street expectations of 68 cents per share, it's up from 54 in the year-ago quarter. this looks like it was driven by massive growth in mobile advertising, in particular mobile ad revenue coming in at $4.51 billion. mobile ad revenue had been expected to be up 4.9 billion, so beating in mobile ad revenue by nearly half a billion. looking at the user numbers here, mobile daily active users, total monthly active users, 1.59 billion, so that's up from last quarter when it was 1.55 billion, but also just slightly better than expected.
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mobile monthly active users 1.44 billion, 1.04 billion daily active users. coming in just a hair better than expected. it was the first time over 9 on% of both monthly and daily active users were on mobile. the key number is the one to watch for facebook, its average revenue per user. the company is reporting 3.73 of average revenue per user for the quarter, that's compared to expectations of $3.43. so it looks like facebook really beating across the board, the stock unnearly 5% in after-hours trading. we'll dig through the report and we'll be back with more and speaking with sheryl sandberg in an exclusive phone interview later in the hour as well. back over to you. julia, great stuff. the shares are also popping on the results. listen, if they can monetize their existing base, maybe this is a transition. average revenue per user $3.73
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that's 30 cents more than expected? >> that is been the game plan. obviously they need tremendous amounts of market share in order to make anything like, you know, this multiple makes sense, and i do think it makes sense, beating across the board, and you had a stock, as tim said, a very good tell. if it's able to seize on good news, after the stock being done 12%, then it's probably at least a bit of a glimmer of hope. >> a sigh of relief. >> that we're not looking on the dark side of everything. >> exactly. this is an exceptionally well-run company. you have zuckerberg, sandberg, maybe some other bergs in there, i don't know, but they are doing an amazing job. they are very innovative, forward-thinking. some competitors in their market, which shall remain nameless, but in terms of taking the users, convert them into actual dollars, they are the ones who are doing that most
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efficiently and most effectively. we can talk about a valuation thing, but from a company being run incredibly well and making a bet in mobile, they are doing a fantastic job of execution. >> that's what i was just going to say. i almost can't believe this number. it's so shocking in a way. is a tell of what's happening in the world. over 90% of facebook's monthly and daily actives were on mobile. >> right. and then the growth in mobile is outstripping the growth on pc and on regular internet, a place where this is a company where sheer scale gives them the benefit of the doubt. the monetization, this is exactly what twitter cannot do. i think what people want to hear now, though, they spent a lot of money.
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it wasn't long ago that they went above 50%. probably a few quarters away. jon fortt, what can you tell us? >> it's a mixed bag. qualcomm turns in at least the guidance, though, not as strong as the street was looking for. the street was hoping for a bit more than that. this could be perhaps conserve activity. they're not trying to get too
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far happy of themselves. the number of phones, device sales that they expect for q2, those are down year over year. they give a range of 175 million to 195 million, a decrease of 16 to 25%, total reported device sales they expect to be 65 billion to 73 billion, a decrease of 4 to 14%. i'm going to get on the phone with the ceo of qualcomm and guess more color on this quarter. i'll bring it to you as soon as i can. >> the shares a bit higher. seema? >> a disappointing earning report, reporting 62% versus the estimate of 65 cents. revenue at 2.86 billion versus the analyst forecast of 2.92 billion.
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this reps a more did not of course, casino due in part, and says concerns over the anticorruption crackdown. i should point out, shares downs nearly 28%. >> thank you, seema. they are under pressure after hours. we'll go back to facebook. i'm still trying to wrap mile head around it. this company was criticized for not having a mobile -- >> so the question is now monetizing existing users, looking for more color. it 150e78d like it was going the other way. thab that will hope up new plate forms. >> people want to know more about instagram. obviously that's not fully
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developed. but i think that's where the street would love a little more details. i don't think facebook gets too aggressive about carving that out. the bull story here is that it's obviously not fully realized exactly what the multiple platforms can do. it's a matter of what the market wants to pay for it. i7d, well, you know really the stock is about when can it get to $2 a share. we're way past that, but the stock is also triple since the ipo. >> if you are a momentum player, and you're thinking about an advertiser and advertiser are all trying to figure out mobile and you're trying to figure out where to allocate dollars, clearly facebook will be one of those issues. they are proving the ability -- >> and developers will now cater to that platform. >> exactly. i think you'll see them battling it out. >> that's an interesting point, tim.
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>> i would think tieser want to know where their dollars are allocated. facebook gives them as good of a road map as anybody out there. >> what about the point that carol was making, about facebook relative to google now. well, first of all, we don't know the size of the digital ad market. one of the reasons why i think facebook may have more support at a higher multiple i think this is part of the story. when we get to the -- facebook has a decided advantage. i think investors are willing to pay for that. 1.6 billion yours, and we don't know where that's going to stop.
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let's get to one more earnings result, and back to paypal, which is out with its numbers. >> 36 cents adjusted, which is higher than what wall street was expecting. the estimate was 35 cents, revenue also topping expectation. 2016 guidance in line with estimates, the company paypal also announcing a $2 billion stock buyback program. keep in mind the stock has been down about 6% since it split from ebay back in july of 2015. one of the biggers concerns has been heightened competent 'tis with the like of apple, samsung, google, square, so that will likely be a discussion. >> seema, thank you. i don't know if we can show this, paypal relative to ebay, the spitout relative to the spun. >> pay358 was known it was the real growth story within ebay, though the market gave you a
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command to own the stock at lower levels. initially it was very hyped you want to do buy it and hang on toe it. there is's bess questions about mobs payments. it's already got, i think, a pretty good protective -- >> and we talked about mobile, and if you want to play the mobile payments space, i think paypal is a viable way for you to do it. they're competing in a lot of different segments. >> they own a number of companies now, making these acquisitions. i think if you're looking, yes, of course, there is a lot of competition, but they have a really nice head start. i think at least for some period of time that this seems like an attractive value. >> last word, tim? >> i think you have a case that is -- when we're looking at emerging markets, where people think the consumer has
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destroyed, there's a lot of -- pay pay continues to be a later. i think this is for the a move you have to chase. i think there's a lot of good news in the stock price. there's more with tim seem zone and "fast money" people. now they're going to talk to the head of high-yield strategy at bank of america. you don't want to miss that. facebook popping on its earnings, still up a little less than 5%. we'll dive next into these numbers and we'll hear from sheryl sandberg on the quarter, and the company's outlook. and the fed today keeping rates unchanged, but there's a raging debate about whether a hike in march is still on the table. that's later on "closing bell." you're watching cnbc, first in business worldwide. ned. style... ...reinvented.
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working with five star auto care we looked at how we could make their business more energy efficient and save them money in the long run. with solar we have saved about 85% on our energy cost. with this extreme drought we're using the savings from our solar system to save every last drop of water. if you are looking for ways to save energy, your first step is to call pg&e. together, we're building a better california. welcome back. the dow closed down after the fed statement, quickly reversed down almost 300 points for alternates while. in fact the dow a bit of an
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underperformer because of apple who had its own earnings issue. the nasdaq the worst performer on the day. the s&p was also down. shares of facebook are up after the earnings beat. ining me in the conversation is kevin landis. facebook is the largest holding in the tech opportunities fund. also with you martin pikanen. how much more confidence do you have after this report? >> it's hard to be discouraged by a report like this. and what about the rest of the portfolio, kevin? the larger backdrop is pretty tough. is there anybody in facebook's numbers that tell you there's
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something broader or they're just the go-to play? >> it's not like they're in the digital ad business and everybody in that business is doing well. one of the really impressive things about this is look at the other companies in this space and there's train wrecks out there. there's lots of other smaller ad tech companies whose stocks rub crushed. looks at other companiesia hoo can't seem to be moving. google is not even thriving in that area. >> meanwhile, martin you have a buy rating, 125 tart what continued of further momentum does this give them? >> the revenue for users is an important number, but i also look at uses more than yours, but facebook is getting to a deceleration in that, but the
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ad -- but the use frequency in what's in that daily/monthly is really the key. you're creating more inventory, as people use it most frequently, so they can sell what is still a very small percentage of what anybody sees, but that's growing pretty expo nemplgally. tim mentioned instagram a while ago. i think that's key, i doubt we'll see them split it out, but i think brand advertisers started last year and this year in 2016, they're really coming on strong. that's the measurable delta. >> martin, it's carol roth. obviously this is an exceptionally well run company, killing it on every front, but let's talk about valuation for a second. they're trading at 20 times north of sales.
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at what level do you say this is enough of a premium to cover all the possibilities out there. >> i look at it on two ways. you know, this kind of reminds me of one of those cases where you've seen classic road -- where they traded at a premium, when actuallyic lieu at a earnings, it's trading at parity to about 32%, if you look at it a enterprise value, it does have stock op in there, and if to add that out. worst case is trading in parity. that's largely they have about a 620 to 65% ebitda not much company mentioned that. i think that's a company point here, you know, that they're highly profitable. >> kevin, obviously the company haus tremendous momentum, a big-picture long-term holder.
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what might you lookic for for things to be concerned with, whether it's using trends or any of the these things that once in a while seem to pop up. the simplest way to do it is just look at the world around you. everyone walks around staring at their phone. what are they doing? what is it that haz them transfixed? more and more it's facebook, is what they're staring at. i fill that facebook is the most hypnotic thing a people's smartphones, the biggest reasons why people's teenagers won't talk to them at dinner. that's amazing to me. they still have a lot of dials they can kurn. i think you might waiting for a long time. >> they got nailed today down
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7%. what do you do down here? actually i'm aid frayed -- if ihand, but you know. last year that stock doubled, basically. you know, maybe it doesn't perform so well, because it's a popular stock to get out of. but longer term, really there's not a second netflix out there. they pretty much have a clear field in front of them. believe it or not, it's still really early in this story. they are the number one attacker of linear tv. that's got a lot of room to run. >> bring it on. >> thank you both so much. good to have your views on facebook. we're going to have much more coming up when we heard exclusively from sheryl sandberg. stay tuned for that. we're going to round up big
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after-hours movers, and if you thought today was busy, wait until you see what's on tap for tomorrow. we'll get you previews on amazon. later on "closing bell."
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well khem back earnings have been coming in this afternoon. seema has another. two tech names falling fast after hours, starting with servicenow, reporting earnings
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of 19 cents adjusted, much higher than the expectation of eight crepes. but here's the thing, full-year revenue guidance, and that's why you're seeing stocks falling. now, let's turn our attention to juniper networks. revenue at 1.32 billion versus the estimate of 1.3. earnings at 63 cents adjusted, higher than the expectation of 59 cents. you can see the stock don't. a tough one. time for a c here's what's happening. mitch mcconnell more stepping being taken to help deal with the people of flint to deal with
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their water crisis. announcing the state executive office will have a permanent presence in the city until the water problems are fixed. nearly half of u.s. households have a amazon prime estimates, according to estimates from research partners. that comes to about 54 million members. those members tend to spend double the amount, about $1100 annually than nonmembers do. bruce springsteen and the e street band rescheduling their new york city show that was canceled because of the recent blizzard. it is take place on march 28th. the band also extended their u.s. tour with 14 new shows, including stops in denver, dallas and detroit. back to you, kelly. >> i just have to say that amazon prime number, could it possibly be that high? >> i double checked it with a come couple different news sources. >> so high. >> i'm a recent addition, so
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what do i know? thanks a lot, sue. >> i'm not a prime member. i think maybe i'm the only one. >> really? >> see, 50 percent of households. >> we are the market, sue. >> that's right. we are. thank you so much. sue herera. up next we'll hear from somebody who says a -- what that will mean for markets straight ahead, and sheryl sandberg gives us exclusive insight into the company's earnings and guidance. we're back in a moment.
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welcome back, a look as how we finished s&p down 20, the nasdaq the weakest performer. this, by the way, as crude oil was finally up on the session. checking on names reporting after hours? beginning with facebook. by 1.5%, too. >> even las vegas sands now in the green, up almost 2%. now the federal reserve leaving rates unchanged today.
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they're economic and financial developments, is a hike in march. the next guest says we interpret this as hinting at a pause. krishna guha, it's agreed to see you. this wasn't a dovish statement or decision. what's your take. >> sorry, i don't agree with that at all. i don't think it's that complimented. the global economic and financial market developments and their implications for the balance of risks to u.s. employment and inflation. that's telling you they're monitoring and assessing. they're not going to hike again
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until they can be confident the risks are balanced one morse. it's going to take them some time. no way they can do that by march. >> if this really was that significant, wouldn't george have dissented? >> i think right now everyone on the committee, including the more hawkish members sees cause for caution, in particular if you're a hawk, you -- they're very weak, and the inflation outlook is going to be further depressed by more oil declines. so it's not obvious the hawks need to force the fight right now. iffuls janet yellen and selling it to the hawks, i would have said, suppose things firm up, stabilize, that things are moving back on track, and we can hike in april. so we've lost, what, six weeks?
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it's not material in the grand scheme of things, whereas if we allow tailspin we're in trouble. what would be the in detail? what was the fed looking for in the next 6 to 8 weeks that's going to give them some kind of clearance to say this was a passing storm? >> i think, as i said we're at a pause through the march meetings. i think that gives us an update as to what we're seeing at the march meeting, what are they looking for? thee offensely looking for size that this downward spiral of china-related risks, commodity-priced declines, credit spreads increases, that downward spiral has arrested, markets have stabilized, maybe things have eased off a bit, and looking to see a real economy
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impact. are you seeing this biting or not? >> i have my own feeling will the politicization of the fed. from your perspective, as we get closer to an election, do you think that that makes the fed less likely to raise rates? i actually don't. i think they're very focused on the economy challenge in front of them, which is difficult right now, with everything that's going on in the global economy. what i do think, is that it would be tough for them to make a major course correction, either in a hawkish direction or in a dovish direction in the middle of the election campaign. they would much prefer that the policy trajectory was relatively smooth through that process. >> krishna, we have to go, but i guess it is the thing to watch is not just the impact, but obviously global markets, the way this makes other central
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welcome back. facebook reported earnings, sending the stock up more than 7% after hours. julia boorstin spoke with the c.o.o. sheryl sandberg moments ago. she attributed the surprise to consumers making the shift to mobile and businesses following. she said those businesses are responding to facebook's measurable results and the ease of buys apps. >> we're pleased. 98 of our top facebook markers are also marketing a instagram. , i think what really matters is that with facebook and instagram, we have the two most important -- out there. we have this that unables us to serve the right ads to the right person. >> she says she's optimistic,
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because facebook is take already lay well positioned to withstand economic uncertainty. >> certainly in the brought microeconomic, it affects us, that said i think we're well positioned to continue to take advantage of an and double down on the shift to mobile, which is happening. we also know we had a lot of hard work ahead of us in order to continue to execute, we need to stay focused, invest in the right things and make sure we're drives or clients' businesses she also said the company is -- as well as messenger and app. and they're just trying to grow their usage. we'll be listens on the earnings call, which starts shortly. we'll be back with more from there. kelly, back over to you. >> julia, thank you. what did you hear? >> well, the focus on the mesh
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rabbit of tiesing effectiveness is first of all not surprising. but i think it's probably what facebook's advantage is. also mentioning it's not a slam du dunk. >> this is giving advertisers the metrics they want. today was a busy one, as facebook shares are up 6.5%. tomorrow we have several results, a preview of those names is next. we'll be right back. or across the globe in under an hour. whole communities are living on mars and solar satellites provide earth with unlimited clean power. in less than a century, boeing took the world from seaplanes to space planes, across the universe and beyond. and if you thought that was amazing, you just wait. ♪
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breaking news, meg? >> a her set from medicare and medicare services detailing that it's out of compliance with what's known as clia, a lab has tore clia certified in torrid on provide lab testing. and saying some of the deficient practices immediately jeopardy to patient health and safety. they're saying that theranos has ten calendars days. it was just posted on cms today,
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to respond if they don't figure these distinguishes these fate fines and potential suspension of the ability to provide these tests and medicare payments. more problems medicare payments so more problems piling up for theranos and ceo elizabeth holmes. we have reach out for comment. back with more if we hear. >> just a couple of questions. twur "the wall street journal" hint that had this is coming, is this just about the finger brick test or their testing writ large? >> reporter: five deficiencies saying things like hematology and laboratories performing high complexly testing. the laboratory director, technical supervisor and testing personnel, but they don't give a whole lot of detail as to what is actually going wrong here so that's something we'll try to get into as well. >> i wonder if this is the point
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at which walgreens cuts off the relationship. i mean, when you have this kind of documentation, mike, and a history as suggested again and the reports have been published where the official in charge of bringing in and creating that relationship is no longer there. >> yeah. >> and doubts about the company persists. >> if it applies to the tests that walgreens was using theranos for. part of the "wall street journal" article said they were taking advantage of the gaps in the regulations of the lab. state-based government agencies that do this so this is trying to close that gap. >> it's interesting you have certain silicon valley companies that up? their nose at regulation and have done it very well and effectively like the ubers of the world. health care is one where it doesn't seem like you can get away with that, and i wonder what the implication is going to be for other silicon valley darlings that pop up in the space. will the valley have a short memory or will this be a cautionary tale for snem.
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>> if it was like an uber regulation model and they were trying to respond to that, that would be one thing but this is a broader question about what exactly is going on and the last time we heard that from david boies who was retained as their lead counsel, there were questions about what parts of the will be try equipment had been even inspect. >> reporter: they were requesting more information that they received as of late december. we actually are getting a response from theranos. they received a report from cms documenting their findings from a scheduled survey in the newark, california lab. we wanted you to hear it directly from us regarding the survey and report. they say the survey began months ago and does not reflect the current state of the lab. they were simultaneously conducting a comprehensive view of the laboratory procedures and it sounds here like they are saying that cms was done ducting this at a time when they were not operating as they normally do.
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they won't voluntary submit themselves to longer regulatory oversight and cms has issued no findings and allegations following recent media coverage, an agation of proficiency, testing and cheating and that instructed lab employees to test for indications of purported problem. a list here responding to immediate can a coverage and a response for theranos. >> thanks very much. the earnings momentum continues after the bell tomorrow. we turn our attention to a slew of companies that will be reporting including tech giants amazon and microsoft. let's get to morgan brennan with the preview. >> it's all about cloud after the bell tomorrow. let's is that right with amazon. the street is looking for $1.56 per share. that would represent earnings growth of nearly 250%, and though it's still of fraction of overall sales amazon web services's cloud platform is real going to be the key with some analysts expecting that to
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account for a third of operating profit. the e-commerce giant tends to be vague about prime membership and outlook guidance, but any nuggets there will be important as well. turning to microsoft, analysts expect 71 cents per share on $25.3 billion in revenue, basically flat growth as a software company undergoes a trouble. we're expecting more momentum in cloud services into company as well, also improving revenue for office and windows despite falling pc sales and also look for guide a. taking a look at shares of amazon an microsoft they are both top performers in 2015 but so far in this year both have fallen so that makes the earnings report for both these companies that much more important. >> qualcomm did report its results after the bell today. let's check in on how that stock is trading. it was under some pressure. our jon ft. spoke with the ceo about the report, shares down a legal list than 1%. what's going on.
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>> reporter: he said people were reading through too negative on china based on what apple reported saying qualcomm had already seen some of the issues there and made adjustments earlier. he also talked about the beats on the top and bottom line for the quarter saying that that was based on units and average selling prize being higher, that the licensing beat was based on that execution in the chip business was good as well. he said as far as the cost plan, they are executing on that. the cuts that they had planned are moving on as they should be. he also said the process of getting the licensee signed up in china is going along well. just a handful still that they are working on. what's driving demand for the upcoming snap jargon 820 chip? still, the camera is a big focus. security also, now 100 licensee design wins. signed up for that. 80 the last time they report so overall sunnier than they were a quarter ago, certainly at least in tone, kelly. >> that commentary on china
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really interesting in current conditions as well. thank you. facebook popping after reporting earliers. just minutes away from the conference call. up next key numbers to listen in for when we come right back.
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opportunities aren't always obvious. sometimes they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances. you. tomorrow, two tech titans and two ways to play. facebook and alibaba, earnings impact. how are investors making the move now? "quack alley" 11:00 a.m. eastern
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cnbc. welcome back. look at the facebook shares, up almost 9% after hours. they reported earnings. they beat not just on the top and bottom lines but the metrics investors are so looking for, especially in this market. mike, you even mentioned there's a halo effect. >> after hours and facebook reported and the stock started to rally, amazon and netflix also started to rally as if people figure tomorrow is going to be a strong day for fang and, of course, facebook a big stock in the qqq, nasdaq 100. it's very strong. >> from today, carol, they all got sort of swept out. >> they did, but i think you have to look at these companies individually. i know they make a very flies acron acronym, but i think you have to look at them individually, and i think one of the things that we were talking about off camera is the strong management team that facebook has in place and the complementary management team, the fact that you have a visionary, but you also have an operations person in sheryl sanberg who is focused on making
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things happen, things that the advertisers care about and the shareholders care about and it's a very powerful combination and it's very different than what some of the other companies are dealing with right now. >> we'll signal the top when mike santolli signs up for facebook. mike, thanks for joining us. carol, appreciate it as always. this does it for us on "closing bell" today. "fast money" begins right now. thank you. "fast money" does start right now. live from the nasdaq market site overlooking new york city's times square i'm melissa lee. tonight on fast we're all over facebook's earnings. the call just getting under way. the stock is surging in the after-hours session. we'll hear from ceo mark zuckerberg on what drove the quarter. plus, one of the oldest dow components is signalling major trouble ahead for the global economy. what it is and how you can protect yourself and there's one part of the market that correctly predicted the selloff and it's pointing to more pain


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