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tv   Closing Bell  CNBC  March 28, 2018 3:00pm-5:00pm EDT

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enough >> i don't know. >> hold out for more, a lot more >> i -- does he own other ones >> i don't know. >> good question >> we'll save that for another check please >> what a tease. thanks for watching, thank you, bill, for joining us >> thank you so much >> "closing bell" starts right now. hi, everybody, live from the new york stock exchange, welcome to the closing bell, i'm kelly evans, and wilfred frost markets still trying to recover from the tech wreck. >> not doing a good job of it. anything happens in the final hour yesterday, of course, a sharp selloff. this is a look where the tech stocks stand now, netflix and amazon, hardest hit, down about 4.5%, and apple weaker by 1%, and facebook and google trying to hang on to small gains.
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>> let's did get to the latest. josh lipton has fresh new comments from apple, josh? >> reporter: well, we sat down with an interview with the apple interview, tim cook, covering a wide range of ftopics, and cook said, listen, in his opinion, we shouldn't have detailed users of profiles they could make money treating customers as products, but elected not to do that, perhaps, most eye-catching line in that interview, asked if you were mark zuckerberg, what would you do cook saying, i wouldn't be in this situation cook talked about that new campus apple is building, not doing a beauty contest for where the campus will be, he said, if states compete for things like that, god bless them, a nice jab there at jeff besos and amazon we know what happened today, just as analysts seemed to get
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more cautious about the iphone, goldman sachs slashed iphone sail estimates in the first two quarters, cutting two million in the march quarter, and 3 million in the june quarter, and also said expectations for the average selling price of apple products is now about 2% below market consensus for the june quarter. traders, investors, business people seem to have questions about the iphone franchise, health, and future, but it was not brought up in today's interview. guys, back to you. >> tim cook feeling redemption here his model criticized for not being enticing likely as the likes of facebook and google, so he's fighting back, josh, thank you very much. mean time, facebook shares dropped 17% since the data privacy story first broke. they unveiled changes aimed at giving users more control. let's get the details. >> reporter: hey, guys, realm, it's one things for sure,
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facebook is in damp control mode, this morning, announcing first changes in response to the scandal streamlining the system making it easier to control privacy settings this is just the start, though, and because it's rolled out over the coming weeks, it's too early to tell whether users are satisfied, but the changes go far nenough, there's questions not answered, like how facebook is going to determine who still has data and what it is used for or what information instagram has and how it's used by advertisers now and in the future now, perhaps sensing there's still more work to do. they are reportedly holding off on unveiling home products like a smart speaker. as momentum builds for regulation of tech, you talked about this, and tim cook, but there's more regulation called for, and other companies in the space are feeling the heat, too, or they are treading carefully snapchat is getting attention for a data sharing app it's reportedly developing granting third party access to users'
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data through connected apps function snap declined to comment, but if it is developing that function, they are watching the facebook fallout closely as well as other social media players like twitter who data practices have also come under fire in the wake of what's happening in facebook. will >> dee, thank you very much. the u.s. is not the only place where facebook's under the microscope across the pond, lawmakers are calling on zuckerberg to testify. this is what parliament, member of parliament and chair of the digital culture media and sport committee said today, he does not say the word "privacy," but this is what he said >> the most appropriate person is the person who is the beating heart of the company, its founder, mark zuckerberg we'd like him to come, writing to him again today to just confirm is he declining or prepared to come, because in the company's response, it was not clear whether he declined or suggesting someone else in his
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place. >> you got a problem with us saying parliament member >> it's member of parliament you don't say representative of the house. >> member of parliament there talking about whether zuckerberg shows up in the u.k., and we expect him now to show up on capitol hill in just a couple weeks. >> we have to say alexander, the former ceo of cambridge analytica agreed to go back to parliament in early april. one to watch as well >> if the fangs did not worry about a new report, the president, quote, hates amazon, and wonders if there's a way to go after the company they have been a favorite target of the president for some time >> he owns amazon. he wants political influence so that amazon will benefit from it that's not right and, believe me, if i become president, oh, do they have problems >> amazon is getting away with murder tax-wise. he's using the "washington post"
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of power so that the politician in washington don't tax amazon like they should be taxed. >> make sure the interpret, they have to start paying sales tax it's unfair what's happening to our retailers all over the country. >> sarah huckabee-sanders was asked about it >> the focus for the tech companies in terms of potential regulation is on data and privacy -- privacy, whatever, this is a separate issue all together, which is whether they pay sufficient sales tax as a retailer, and the other relates to not specifically coming up in the comments from the president is market share and percentages, not in the forefront, and already saw stocks come off. a big question if they are the focus of regulators and lawmakers for the next decade. >> we love fang to the because it's an acronym we can't stop using, but they have a lot of differences in the business models, but share size and market power outside the world of tech,
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look at the yield on the u.s. treasury, dipping below 2.75 overnight, lowest levels in months, but as rates fall, another key rate has been on the rise, right, will? >> indeed. libor rates, looking at that go through what it means, libor, london interbang offered rate, they lend dollars to immediate liquidty needs, many loans are price offer as well. it's risen sharply in recent weeks, more than other rates since 2009 libor rose because of recent prices in the solvency and did not want to lend to one another, which was one of the reasons some banks ran out of liquidity and ultimately failed, but this time, it knot rising because of major red flags like that. first, rise in the fed funds rate, second, amount of treasury
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supply, and outpacing demand lifting short term rates and u.s. tax law change, making dollars scare overseas, hence rising costs of the dollars rising libor the reasons behind the move are not worrying, but means rising costs of capital for companies who have loans tied to libor, an early test and small warning sign of the impact rising rates have ob companiy on companies id asia yet to experience rising central bank rates this chart shows oh corporate spreads rose recently. there's rising risk, but below the highs over the last year, and it's much less pronounced rise than libor's spike we saw recently steve leiman, you've been doing digging here in terms of libor's rise and influence >> yeah, and i think what you said can't be emphasized enough for people who were not paying attention a decade ago this was -- i don't know what ewe call it, the freakout index,
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index you came in during the financial crisis and looked at the lack of trust in the banking system one bank didn't trust another. when with rises the way it is, people then said, we have to pay attention to this, not freak out, but means we ought to pay attention. i want to show you one way to look at it, and this is the rise of three-month libor one benchmark. you see it plods along with an even spread, and beginning january and february, all after the tax package hit and cr hit it's -- or continuing resolution, it's getting wider and wider relative to fed funds. let's go through the things wilf talked about and see how much concern is in each the libor trends are surging, but one-year rate, they are not as high. there's app expectation these come in down the road, and may remain higher, but not as high as they are right now. as he said, there's no increase right now in bank credit risk, and second of all, we had --
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third of all, three shocks out there, but each one, the surge in borrowing at the short end on the deficit, the repatriation, they are shocks to the system, but they should play out over the next year. as you know, we have to watch this carefully, but right now, we're not seeing the crisis signal from the libor stretch we've seen in the past >> steve, great stuff, thank you very much. >> sure. now, what does this mean for the banks? let's bring in fred cannon, head research at kwb company. thank you for joining us >> great to be on, thanks. >> interesting thing about libor, my understanding traditionally credit card rates are based from libor, adjustable rate mortgages move from that. if that three month goes from half a percent to over 2%, if you are affected by that at the moment, that's a big deal, right? >> it's a big deal if you are a borrower a lender, it's a good thing, higher yields. >> yeah. >> particularly important on commercial loans, that where libor is extensively used.
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>> in terms of looking at the spike in libor and people's memories of the financial crisis, although steve and i rushed through some factors why that's not a big concern, but at the same time, you look to some bank stock prices in europe, particularly the likes of deutsche bank and see them falling sharply, do we need to be worry about any banks in europe at the moment or not? >> i don't think we need to be worried about them at the moment the primary problem in europe is those big banks are not making much money, and the interest rate situation is not getting better for them. that's the issue it's not really a credit risk issue, but it's both you and steve said, we have to watch this carefully because this is a market indicator of risk we don't see it as highlighting risk at this point in time, but it's important to watch those indicators >> fred, this rate, i mean, i imagine most people are watching it, but expecting it's going to drop, especially maybe after this quarter closes. your expectation too, and how far do you expect it to drop >> right, i think the ted spread
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has gone from twenty to 40 basis points i expect it to come back in. ever since we go through the fed exit, you have seen that spread widen a bit, and with the fed exit, you see wider rates than from a couple years ago. >> fred, talk about the u.s. banks. clearly, they sold off sharply in the last week or so as well is this a buying opportunity for those stocks or have they had their nice post-election run >> well, we city think there's a lot of value in a lot of the banks. you know, one of the things we talked about in spread is a good thing for most u.s. banks because they are not borrowing libor. there's deposits in the u.s. making better spreads. that's not a bad thing a flattening yield curve is never a good thing, but a lot of true commercial banks are well, tax reforms a good, and most goes to shareholders, and that's going to generate a lot of capital in the industry. >> fred, we're getting up close to earnings season
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is this the goldman sachs bounces back >> oh, well that's always a tough one to call, but i would think we would see a pretty -- better quarter from goldman sachs at the very least, and we should see pretty good quarters across the board because, remember, this fourth quarter was the kitchen sink quarter for the bank stocks as they took into account tax reform. >> okay. great stuff, thank you for joining us, fred cannon. >> great to be on. >> that's april 13th >> friday the 13th three of the banks decided to go on that day. their choice >> glad they are not superstitious. small declines on the board now, again, after yesterday's big drop into the bell, not a rebound, dow down 53 points. nasdaq down 1% yesterday almost 3%. 4% in two days >> good math >> thank you >> impressive. we're just getting started next up, a big change may be on the way for the car makers,
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that lady, these houses! yes, yes and yes. and don't forget about them. uh huh, sure. still yes! xfinity delivers gig speed to more homes than anyone. now you can get it, too. welcome to the party. welcome back, look at the shares of auto makers falling, gm trading high today from the news was ntsb proposing to cancel a key penalty on gas guzzling vehicles. both highers by 2% phil lebeau has the latest >> reporter: you know, people who lmpb say, gas guzzlers have a finite rule set up by the federal government, a tax upon auto makers for certain cars, not suvs or crossovers or
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minivans, but cars falling short of getting 21.5 miles per gallon, and it's a small list. we're talking about your specialized high performance models that may not have the fuel economy that allows them to avoid the tax. they were going to double the tax under a proposal from the obama administration it was supposed to kick in now we are hearing the ntsb, under the trump administration, is saying, well, maybe we shouldn't force an increase in this tax, and, again, it's a very small number of vehicles that are hit with this tax, and it's not the consumer that pays it it's more that you look at auto makers and vehicles they manufacture. >> i wonder if the larger issue too is what happens with the luxury cars hit by this, but if the administration is looking to roll back fuel economy standards much more broadly.
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>> reporter: oh, they are, no doubt about that there is a schedule in terms of fuel economy standards that stretches out into 2025 and beyond, and that was put in place by the obama administration the conclusion is that under the trump administration you'll likely see them pull back on increases that have already been scheduled, so we'll see that happen relatively quickly, i would imagine, over the next year, that they start to dial back those expectations, and the auto industry has been calling for it for some time saying, look, it's a dramatic increase to get up to 54.5 miles per gallon in terms of fleet average. doesn't mean every vehicle gets 54 miles per gallon, but the formula used to calculate that, they want to dial that back a little bit so that the auto makers have a little bit more manageable scale to get through. >> yeah, so they don't all cheat their way through it i mean, that's what -- you know,
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you had the, like, high bars they had to hit, and, oh, yeah, no, we run our tests and hit them, and turns out, no. >> reporter: right >> didn't hit it at all. i don't know what's better >> reporter: well, look, everybody knew that was going to be the case, that even though they set standards there, and even when they were set by the obama administration, there were people within the obama administration saying, look, do we think they'll all get to 54 miles per gallon no should they try? yes. that's why the standards were put in place >> phil, thank you very much for that very nice cars on show >> reporter: you bet >> phil lebeau for us in new york city. tesla shares up related to that, still down more 7% as you saw a moment ago, 15% drop for them here's the dow fighting back into positive territory, s&p down, and nasdaq worst performer today. still ahead on a whip saw day for stocks, there's a bold call on where the market could
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be heading next. later, those tesla shares slammed again. w wn5%vethpast month. what's behind the drop and what elon musk can do to get back in gear
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hi, everybody, welcome back to "closing bell", look at the sectors of the s&p 500 today, remains slightly underwater with the drop of seven points evenly split pretty much with
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real estate, telecom, and consumer staples leading theway with the drop in interest rates while the laggards are discretionary and materials. >> financials are beating their slide pretty much for the day, which, of course, they have not been in recent interest rate slipping days. we have about 37 minutes to go before the close we are low, quite close to the lows of the day, down about 20 points on the dow, and nasdaq down 1% as we speak. coming up, not long ago, the tesla ceo tweeted jabs at short seller selle sellers, but now they hit a 52-week low. what's behind the latest leg lower? how much does facebook know about you? step by step how to uncover your private information that's on their servers. you won't believe what you see the closing bell willing right back
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so what else is new? humm..she's doing good. she needs more care though. she wants to stay in her house. i don't know even where to start with that. first, let's take a look at your financial plan and see what we can do. ok, so we've got... we'll listen. we'll talk. we'll plan. baird.
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welcome back, english geography in the breaks, which is quite fun >> we won't talk about the things that are confusing. >> the nasdaq is down, now down.75 of a percent, down a full percent moments ago, dow flat, and s&p low. dow laggards at the hour include intel and other tech names,
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cisco down a full 2% or 3%, and we also have oil prices slipping again for the second day in a row, so chevron is down 2% time now for a cnbc news update with sue herera. >> this is what's happening at this hour, everyone. a federal judge gave the okay to part of a lawsuit that accuses president trump of flouting constitutional safeguards against corruption by maintaining ownership of businesses while in office the judge refused a justice department request to throw out the case entirely. a pennsylvania judge has thrown out involuntary manslaughter charges against 11 former penn state fraternity brothers following a hazing-related death last year they allowed alcohol and hazing related charges to stand bmw and daimler teamed together to share services in car electric charging to compete with uber.
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each hold a 50% stake in the joint venture. beijing choking on dust and pollution. a sand storm blew into the capital, triggering alert as the city's air quality index soared to hazardous levels. you are up to date that's the nudews this hour, ba to you >> man, grateful we don't have to breathe that in thank you very much. over to bob pisani on the floor with the dow turning positive what do you think of it? >> stabilized because tech stocks by and large have stabilized emphasized this all week tech is 25% of the s&p 500 look at the chart herement financials are 15. 40% of the s&p, and when they don't move or drop, the overall market drops rest of the sectors, health care investors, and staples are the key groups here. that's where you rotate into if they are not doing anything,
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forget it, overall market goes down we have market movers, things that are holding up in the dow jones industrial average banks have stabilized as well as jp morgan, down 6% this month, merck has done nothing all month. a little bit leadership from the pharmaceuticals, pfizer up a little bit today, and defensive names like proctor and coca-cola that were laggards all year are helping. market rotation going on that's this value versus growth thing we talked about. value recently has been outperforming growth what's value value generally is those procter & gamble s and consumer staples and oil stocks growth is big technology stocks. recently, particularly this week, value stuff, outperforming growth and buy an etf for both particular sectors finally, a little bit of volume. people are moving stuff around e would anticipate that because it's the end of the month, so the big, big etfs, that i watch carefully, the triple qs, nasdaq
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100, s&p 500 main etfs, russell 2,000 ibm, and mid-cap even getting some substantial volume. i think the important thing, guys, we are getting substantial volume without getting substantial volatility that is a good sign for the markets at least, stabilization for tech is what you want now. back to you. >> bob, see you in a bit, thank you, bob pisani. closing bell exchange now, jo g joining us here at post nine, joining us from los angeles, from chicago, rick santelli, i'm announcing -- i don't know what it is, but announcing something. peter, what is this market announcing to you today? >> well, i think it's taking a breather i mean, you know, we had -- we whip sawed yesterday, we did, the day before that, and seems like there's just a lot of rotational movement, and i think today, we're finally taking a breath, and we are litting the tech stocks settle in, and, you know what, we probably won't see much of anything tomorrow, similar
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action tomorrow, and what happens next week, though, could be interesting >> wirick, equities are pausinga little bit, dollar is not, talk about the dollar-yen, a huge move >> yeah. i'll tell you what, the dollar index is up over a penny in two sessions, up three quarters a perce there about alone, and today, the flight to yen is reversing a little bit i think that's all interesting, and we could spend months trying to explain it, but maybe the better way to explain is it more for a macro. when the stock market was more easily traded to the upside, interest rates were more easily traded to the upside, dollar index couldn't get out of its own way. now we have interest rates breaking down to some extent, lots of volatility, a downward bias in equities, and the dollar is having a party. very fascinating story, especially when you drag in that yen. as far as rates, though, i know everybody's jumping on the libor story, and i get it, but the libor story, in my opinion, is
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not a story. two-year note yields, a lot of yields where they were in 2008 a lot of things changed with tax reform we had six tightenings since 2015, okay that's 1.5%. it shouldn't be shocking that the long end, especially libor, is swimming in supply of short instruments like t-bills, might be hypersensitive. i think the bigger issue is that five-year note yields close at the highest levels since the 13th of february, 10th since the 5th of february, and third is the last day of january, and most yields in europe around the second week of january that's huge considering how conventional wisdom says that rates have to go up. look, it's supply and deficits >> real quick, peter, why did you say next week would be interesting? >> well, i think, something spotify come to the market, there's a lot of interest in that, a lot of potential brought on that, and i do think that once we start getting, and you will start getting some earnings
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reports, i think they are a concern too. people's worries were about earnings going in for the first quarter, and there's solid earnings reports, and i think that's going to stabilize the markets. >> approaching earnings season, do you think that could be a catalyst to reinvigorate equities to the upside >> yeah, i do. you know, i think we are going to see very positive earnings surprises, looking for mid to high teens etf growth year over year what you'll see is what's going to happen with the cash on balance sheets able to be deployed via tax relief. that's very important. earlier in the week, we did see actual real news on facebook, tesla, and nvidia and uber we are not surprised with real news dragging down stock prices, but, again, you're right first quarter earnings give clarity and we'll see a lot more concrete evidence of what's
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happening with the large cash restrictions overseas, especially in tax. rick, before we go, what i'm stumped about, like you said, we had so many rate hikes over the last couple years, but the ten year is where growth and inflation are kind of, you know, sitting these days, and so what's going to happen keep hiking and until what level? is the ten year yield going to budge and move higher? >> well, i think that the fed definitely wants to raise rates. i don't think it's data dependent anymore, but i'll tell you this the fed is not going to raise rates to the point they invert the middle or end of the curve in the five and ten sector in my opinion under any condition, so if the curve remains flat and it was playing under 50 between tens and twos today, that could be a real stopper for the fed. >> wow we'll see. we'll see if they talk about that as they watch the levels, thank you all very much for joining us in our american, you know, country wide version of this "closing bell."
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>> i like it >> l.a., chicago, new york, as if we've done -- oh, all right, nasdaq's having a difficult time staying positive today as tech continues to struggle. here's a look what's moving the index today. >> it's been a choppy session for the nasdaq we were in positive territory at 1:00 p.m. eastern, but we have fallen lower by around 45 points the nasdaq composite it's interesting, it's a co combination of companies, whether it's facebook and zuckerberg or nvidia halting self-driving tests following the news around uber, or selling and scaling back exposure to the broader technology sector, and with washington paying closer attention to amazon. investors are playing the what-if game on prospect of regulations. keep in mind, shares of amazon have remained lower throughout the day, down 4.5% what's interesting is that
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weakness in tech have gone overseas the company referred to as china's facebook is down about 4%, as are other asian and european tech names. we focus on larger tech players, but for good reasons these five stocks account for about 70% of the nasdaq 100, so they play a big role in powering the nasdaq from 5,000 to 7,000 back in 2017, and, of course, now playing a big role as to why the nasdaq continues to underperform the major indexes >> thank you very much for that. we got 23 minutes until the close as we just saw, the nasdaq down about 45 points, dow in positive territory s&p's down 10 basis points treasury yields falling to the lowest levels in over a month. what that says about the current market landscape, and where you should be putting your money that's next. >> later, talking earnings, profits for the first quarter. get this, are expected to run at
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welcome back to the closing bell, everybody, here are the 30 components of the dow jones industrial average, 2-1 gainers versus decliners today on the flip side, look at shares of cisco, chevron, and intel, all giving up between 1.pennsylvania% to 2%. >> u.s. treasury yields easing back to the lowest levels in more than one month. this is a week after the ten year hit multiyears high >> the chief investment strategist is with us with chris johnson, ceo of johnson research group. welcome to you both. and, jeff, just beginning with you, i mean, are you scratching your head? can you invest and ignore it what do you think of all of this >> markets confused, vacillating between plus and minus so many times today, the way to make money was erect a toll booth and go that's what happens in a bottoming pattern. the market's confused because we are transitioning from a
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disinflationary to inflationary environment, and people are confused how to position themselves for that. >> but if we are really going into an inflationary environment, then wouldn't beexpect bonds to have continued selling off as they were on a trend to do so, and instead, they caused that selling off >> yeah, that's a fair point and i think what you are seeing here, the past couple weeks, there's a growth scare you've seen it reflected insom of the cdx credit spreads and reflected into the manufacturing surveys, and i think the economy is going to reaccelerate here, but i think the market is going to a a grow scare right now. >> all right chris, i always think of you as the man with the pen do you have the pen today? >> here's the pen, kelly >> there it is i always think of you the man with the pen >> there it is. i'll point it. >> what are you looking at on the charts today >> you know, when you start talking about confusion, as jeffrey was, it was one of the
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things that everybody tends to look at is, what can i count on? technicals are what you count on, the numbers, data. right now, when we look at the round number support for the market, it's in all three indexes. so you have the s&p 500 at 2600. nasdaq right now at 7,000, and 24,000 on the dow. you also got a technical pattern. jeff mentioned a poeshtential bottoming. it's a double bottoming, january lows and lows from last week double bottom, going back historically, it's the most reliable, technical pattern out there. it's the one that people look at and say, okay, if this holds, i buy. that could be a problem here if we don't see a 2600 hold on the s&p 500. i think you look at a situation where we peel off another 5% to 6%, and that confusion right now, when we look at the bond market and look at equities and the flows between sectors right now turns to panic, and that's when you see it go to 50, another notable. i have to slip in in quickly, at
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2600 on the s&p back in february, readings up around 50, and now we're in the low 20s >> briefly that's a big call, saying the vix goes back to 50. >> well, but i think we see tha spike in fear again. remember, the markets are at their most dangerous when the complacency, and everybody figures this market picks up and takes off and go >> all right >> i don't see it that way right now. we have struggles. >> all right, jeff, are you concern about the technicals and the momentum move against markets, even if you can be constructive on the fundament s fundamentals, if we pick up to the downside, there's a lot of gap to low the fall? >> yeah. p a real big believer in technicals my dad a portfolio manager, and my dad said words in music bet on the fundamentals, but watch the charts because when you are measuring the second decimal point every morning, that is what you look at
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i agree. you got to double bottom with the s&p at 2533 at the february 9th undercut low if you believe next year's s&p earnings estimates, we were trading at 14.5 times forward earnings i don't think stocks are expensive. lows are in. i think we're in the bottoming phase, and stocks will be higher by the end of the year >> last word on that, chris? >> listen back to the wall of worry here in the vixment one of the things that's great is look at the short interest on the s&p 500 as a a composite, short interest on all the companies, january 2016, that thing was at five-year high, and now we're at seven-year lows in terms of short interest that tells me the standard mortality table squeeze that's driven the market on this, just fantastic rally, has gone by the wayside, and it's time to be a stock picker, not an index buyer. >> all right gentlemen, thank you, both chris johnson. >> thank you >> and talking about the markets
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today. >> 15 minutes to go. dow's hanging on to a small gain of 32 points right now, the others, no not so much, s&p down two, and russell down. nasdaq lagging again, down two-thirds of a percent. trouble for tesla? stocks fall again. what's driving those concerns coming up next here on "the closing bell." let's begin. yes or no? do you want the same tools and seamless experience across web and tablet? do you want $4.95 commissions for stocks, $0.50 options contracts? $1.50 futures contracts? what about a dedicated service team of trading specialists? did you say yes? good, then it's time for power e*trade. the platform, price and service that gives you the edge you need. looks like we have a couple seconds left.
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shares of tesla fell again today, down more than 7% moo moody's downgraded the credit rating, and phil lebeau has the details, phil? >> reporter: kelly, i think what's interesting when you look at what's happening with tesla are the questions that are surrounding what's happening with its cash flow and its credit ratings remember, yesterday moody's downgraded tesla's credit ratings in part because of concerns that you're going to see a near term cash flow, not crunch, but certainly not the levels that were previously expected due to the fact that model 3 production is widely expected by most analysts to fall short of the 2500 per week guidance that the company gave at the beginning of the first quarter. we'll find out what the
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production level is for the end of the first quarter when the company reports delivery numbers early next week, and, again, the expectation for most on wall street is that the company is probably producing somewhere in the range of let's say 1,000 to 1500 vehicles a week, not 2500 vehicles per week, but, again, we'll find out exact numbers when tesla reports its q1 deliveries early next week kelly? >> phil, do we feel like the share price move today is perhaps in part reacting to kind of fears over that production level as opposed to just that s&p downgrade yesterday because, you know, it's a pretty big move, and i guess the s&p downgrade is based around factors already out there in the marketplace. not like they uncovered something new that they have come across. >> right, it was not a surprise. there was a number of analysts saying we wouldn't be surprised if we see some type of a credit downgrade at some point. i think it's a host of factors, when you look at what's
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happening with tesla, the expectation that it will fall short of guidance when it comes to delivery numbers. it's also the feeling that there are a number of hurdles that this company may face over the next six months, and those hurdles are potential problems or stumbling blocks for tesla. as a result, talk to traders, they say the same thing, which is i'm not surprised to see the stock move a leg lower seeing a massive selloff no, but seeing pressure a lot of people have been talking about over the last month. it's really starting to manifest itself now >> yeah, and it's getting everyone's attention i mean, i had a u.k. credit strategist focused on tesla in the note today you have a hedge fund manager out there saying tesla's just months from a total collapse, and, phil, the headlines are kind of -- >> reporter: i don't buy that. >> it's the talk of the market >> reporter: right i don't buy total collapse i saw that note, kelly, in some
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of the chatter that's been coming from some people saying, oh, the sky's falling, but the sky's not falling on tesla, but they face near term challenges and the stock is under pressure. >> great stuff, thank you very much another fanning position there to get a peek at different cars, great movement around there. >> you should just go. >> i might when does it finish? can i come find you? have we lost phil? >> reporter: you got to be kidding me if i'm still here. guys, in an hour, i'm on set with "fast muoney," leaving the show floor >> leave the pass and change the name >> you got it. i'll do that >> thank you very much, phil, phil lebeau for us there >> eight minutes to go before we are, well, just flat now for the dow, down to 0.6%. closing countdown when we
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return as c b the quarter's earning seonoulde the best in seven years. keep it here you've watch closing bell. can i get some help. watch his head. ♪ i'm so happy. ♪ whatever they went through, they went through together. welcome guys. life well planned. see what a raymond james financial advisor can do for you. flexshares etfs are built around the way investors think. with objectives like building capital for the future, managing portfolio risk and liquidity and generating income. that's real etf innovation. flexshares. built by investors, for investors. before investing consider the fund's investment objectives, risks, charges and expenses. go to for a prospectus containing
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businesses of prudential. yes or no?gin. do you want the same tools and seamless experience across web and tablet? do you want $4.95 commissions for stocks, $0.50 options contracts? $1.50 futures contracts? what about a dedicated service team of trading specialists? did you say yes? good, then it's time for power e*trade. the platform, price and service that gives you the edge you need. looks like we have a couple seconds left. let's do some card twirling twirling cards e*trade. the original place to invest online. we have breaking news and more fallout from uber's driveless car crash. >> uber executive is departing the company according to a source familiar with the matter. now he co-founded the
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self-driving truck startup bought by uber in 2016 he had been head of uber's operations they sent a statement they are fully invested in and excite ed about the future and will continue to grow as we use network and technology to transform the truck industry, making a distinction of being involved with self-driving cars and fright back to you, kelly >> thank you over to will on the floor. >> thank you very much just under four minutes to go. we covered nicely over the last 20 minutes or so, now higher listen the dow up some 32 points or so. the s&p's essentially flat nasdaq still lower by half a percent. now, i want to move away from this quickly because some other interesting movers today u.s. dollar, first of all, looking at the dollar index, up nearly a full percent today, and some really good individuals as well as we look against the yen, 1.5%
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move, bringing us a number of ways either way, probably the fact that the yen stopped is a good risk, but a big move there on the dollar against the yen a look at oil as well, down a percent today, had a tough week, but if we zoom out, oil over the course of the year still up sharply this month, and up sharply for the day, so the weakness we seen is not too much of a worry, and they are suffering in chevron gold down 1.4% today, but if we zoom out over two weeks or so, up nicely from last week in the risk off environment down a little today, so that little bit more risk sentiment today. quick look at the sectors as they settled today as bob pisani is here as well. what we have seen is some interest rates sectors doing well, that's a factor, real estate up, and financials knocked down today, helping the market technology is down a bit, but,
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again, not too much compared to where it was the other day, financials and tech are the factors today. >> we had the same intra-day swings, 370 points on the dow, a lot, but spent half the day in positive territory, and the other half in negative territory. the key, you mentioned, stability in technology and amazon had a rough day, but nothing got too out of whack, and, remember, that's been the big concern. 25% of the s&p 500 technology stocks, when you start getting earnings concerns about sectors, like facebook or about tesla or something like that, the market flutters today, that did not happen financials, you mentioned, jpgan, you mentioned it's been rough. >> it has. the five tech stocks on the board at the moment, it's a story today, something the market looked for. data, good, bad, everything is painted in the same brush. >> dealing with the top three, dealing with an alphabet, an amazon, and when you deal with the top stocks, those top five
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stocks, biggest tech stocks, are 15% of the s&p 500 when they mooefve a lot, it's h to move forward. amazon done a little bit, that's a little bit of a rough patch, and alphabet relatively flat, microsoft flat, and the market stays relatively flat. the issue for tomorrow, i think, is what kind of participation are we going to have a lot of people that i talked to are not going to be in tomorrow. i anticipate volume is lighter, and we'll get volume at the close. >> volume today overall? >> not great we're at 700 million on the dow. that is about average. about a 5%-8% over normal volume, some of the big etfs had higher volumes because we are approaching the end of the month. one thing is values is doing better this week >> yeah. >> value etfs by oil stocks and by consumer staples have been outperforming the rest of the
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market that's a sign people are trying to get more aggressive in the other sectors, non-tech, non-financials >> dow bang on flat there. intra-day, we got the nasdaq down about half a percent, and s&p in between ringing the bell here at the big board, inside shares, ubs, and the nasdaq, mvb financial corporation. that's all for the first how far. kelly's on the second. thank you, welcome, everybody, i'm kelly evans, eager to see how we close after yesterday's drop, and today, muted. down down 10 points, went out into the red into the bell there. and russell 2,000 down down less than a point there bigger decliners were the s&p and nasdaq s&p shed a quarter percent, and nasdaq composite down .9% today.
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nasdaq down to 6949 as some of the weakness yesterday centered again in tech names. joining us to talk about his, cnbc senior commentator, mi santolli intel trailed, weakness in the semiconductse semiconducto semiconductors, and s&p, macy's was the leader, and concho resources lagged by 9% let's talk about the tech names in particular, mike, where so much of the action today was interestingly enough, facebook and google stabilized and apple and amazon declined. >> exactly the ones hit hard before today did find their footing a little bit. n netflix weak again they have air under it based on how much it's been up. i, obviously, think it went from yesterday seems like completely
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messy botched urgent rotation and exit out of tech into other stuff. today, more measured, but i think in general, hard to draw big conclusions out of today the market was kind of feet ering all day, and - >> did you expect a bigger bounce after the kind of close we had >> play it both ways, one, the market absorbed ways of pressing and selling, and on the other hand, closing the s&p 1% above it's lowclose to the year. we are still kind of, you know, up against that lower end of the range, if nothing else >> nancy, you are watching this more to pick out good investments. are there opportunities? >> there's dividends and they are growing steadily, so, you know, microsoft, texas instruments, paris corp., intel, those are the companies we still like you recall we do own what we
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refer to now as face plant opposed to facebook. we have sold it earlier in the year and again recently, so we are less exposed could be a chance to get back in, but not yet, not yet >> nancy, reports today that facebook would delay the introduction of the home speaker as it sorts through the data issues feels to me that's a bigger deal for the company, just not being able to break into what seems like the next vanguard of the technology with the device like that, at the same time, do you think consumers will start to push back and say maybe i don't want all the alexas and google home and talking things in the living room? >> yeah. well, i do at the margin. i don't think it's going to be material let's face it, we've all become come place sent and dependent on technology, but i do think that mark zuckerberg made a big mistake letting so much time pass left the barn door open. left room for all of the politicians and the regulators
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on their high horses to run in, and i think they are going to be very distracted for a long time, and that's what worries me about that underlying stock more than the new technologies because they won't beable to focus on new. they are focusing on closing the barn door, yeah. >> charlie, the comments from tim cook from apple were pretty revealing today. he said that detailed profiles like the kind that people are concerned about with facebook and google shouldn't exist he said he wouldn't be in the same position as mark zuckerberg when asked how to handle the situation. do you think everyone is poo-pooing apple, now it looks better because they hammered the privacy angle so much that some of the platforms depend on data? >> the history of tech in hardware is not very good. you can go back an awful lot of things like the palm pilot seemed like must-have technology ten years ago at the time, and then they don't look good ten years later, so i still think
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that hardware is a tough space to be, that networks, social networks are still a better place to be. software is a better place to be i think these last couple days don't change that. >> you think social networks are still going to have a viable future, size, and privacy is not going to trump that? >> i really do what i would encourage people today is talk to kids about this there's no presumption of privacy among the younger generation there is an understanding that everything that they do is known by a lot of people , and they ae not upset about it as you and i would. that's a generational change >> funny you said that i read something the other day about a mommy blogger, okay, who put so much of her young kids' lives online, and she started to think, oh, this is too much. they are going to get embarrassed as they getolder, but they loved the attention and people took pictures of them, and she had to teach them to respect privacy, charlie
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maybe more are thinking like that >> exactly, but that's a mommy talking, not the kid talking look at how the kids act and behave, they share amazing parts of their lives they speak in ways that, frankly, would scare me if they ever had a company review them for a job. that is the way they handle data and privacy. they just have no assumption of privacy. >> i think this scare going on in big tech, it's three separate elements, is there a customer response, will behavior change, will there be less engagement because people are concerned about privacy? if you set that aside and say probably not, it's a matter of where the company strategically plays defense more than offense. like amazon, careful about how things look and seem not so big and scary anymore? maybe that's a long term issue three, what valuation do you put on the earnings? that's what's going on right now. there's a big valuation adjustment >> because if -- >> trading at a huge premium
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>> earnings don't have to go down that much, but the stocks come in, just because they were priced at the premium. >> nancy, what would you say >> i agree with mike i said that last week that i would add one constituency, and that is the regulators they have a profound impact on influencing whether or not this is dead money, so i agree with charlie and mike i don't think the consumer is going to drive this, and mistake that facebook made, and we actually thought it was google that was in worst shape awhile back, so we've been trimming back the holdings because, you know, sheryl sandberg came out on the russia issue, but the problem is the regulators -- he opened the door, and they are going to have a field day as they did with big tobacco and as they did with microsoft many years ago, and i don't think mark zuckerberg is a sympathetic character. i disagree slightly that at the margin, this could have an impact on the stock price, not necessarily the underlying fundamentals
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>> fair enough, and as we said, again, facebook back with a small rebound today, but it's down big the last couple weeks talk about the earnings then we have the season about two weeks away from really getting into swing, jpmorgan reporting on april 13th. we have surprising data. >> kelly, while investors are worried over a slew of market issues, companies count the money. first quarter earnings season as you said weeks away, expected to be a bountiful one for u.s. companies, profits expected to grow by 17.2%, biggest increase since the first quarter of 2011. that's come amid a backdrop of tax cuts, improving confidence, and a growing economy. that's the good stuff. here's the bad news. those profits are likely baked into the market already via last year's big gains, may not do a lot to boost stocks. the evidence of earnings talk, market price perfection, and, in fact, it could be pushing some investors to the sidelines and
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adding to the market's many challenges kelly? >> all right, jeff, thank you. charlie, what do you think of earnings season? are we, you know, are we starting to get a little over our skis here with all the headlines? >> so, i'm glad you brought that up and asked me the question there's all kinds of academic research showing the market does not overreact to positive information. it anchors on the old information. so when you get big increases in earnings, the market is slow to incorporate. that's why there's a momentum in the world. it's called anchoring. it's the most well-established behavior tendencies -- >> in this case, how does it work are people anchored to the fact that, oh, tax cuts are a positive and earnings are great? you say they are anchored to the -- >> anchor to what they thought the earnings were before all this good news about lower taxes, higher energy prices, higher consumer confidence, lower unemployment all of those things are going to make earnings better than people
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think, and managements have no incentives to authorize and to say the bigger number's going to happen because they are trying to set their own budgets their own budgets they have to meet to make their management plans to get bonusebonuses. there's no incentive to disclose all the good news. i think there's positive upsides in earnings. >> all right, mike, because there's a lot of talk how you go into it, expectations get high, and then is the bar too high, but sounds like people have not really gotten -- >> i don't know that the bar is too high in terms of what's reported versus what's on paper as the forecast. the big open question i still think is, is will the market extrapolate that into future years, and, essentially, put a bigger multiple on every dollar of incremental dollars we got from tax cuts and other things open question. i think in six months there's going to be a lot of talk on the street of, well, next year's earnings anniversary the tax cut
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bon bonus, so try to look through last year's jump it's noise once it gets around to another lap >> nancy, what are you watching? >> oh, well, we're going to be watching dividends because we think that the management's in the large cap companies that we own are setting dividends based on what they think long term sustainable earnings p.o.ower i. we like the growers opposed to the absolute yield plays and will continue to watch that. >> all right talk about individual earnings gamestop just reported, and we have those reports >> kelly, shares were soars up more than 4% or 5% actually. now tempered just less than a percent right now after a strong beat on the top and bottom lines in comp store sales as well. revenues are 3.5 billion versus estimates of 3.27 billion. eps at $2.02 against estimates of $1.97 per share store sales positive, up 12.2%,
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analysts projected up 9.8% that's a beat there too on a critical metric. the company had reported strong holiday sales back in january, so animalalysts projected a str number we'll hear from the new ceo taking over last month it's been a tough time for the company in that the market is shifting more towards digital downloads. more numbers to talk about guidance on the full year revenue, that was weak as well as the comp guidance for the full year as well as the eps guidance for the full year all metrics light. expect to hear more on the call about those. the company, again, saying that digital sales receipts increased 41%, so we're going to hear more about that as well again, the -- another head wind for the company is also new hardware sales increased 44% led by demand for the nintendo switch, big for the company as well we'll be on the call, back to you. >> thank
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gamestop shares up 3% now. switch is hot, but the 12% comps -- >> that's amazing. >> did you say the same thing yesterday? >> very, very different category, but, yes, there was an upside to the comp gamestop expected 9%, but it's up 12% that's a fascinating story stock trades at four and a half times earnings for this coming year >> oh, my gosh >> under three times cash flow, and it's about a third of the shares short basically, the market's on death watch for the business model, and yet it's not going out guidance is not good, restraining the upside >> well, maybe you can give nintendo credit for extending the stores gamestop has a gain here, facebook out with a new statement on privacy scandal here's that now. >> kelly, the hits keep coming according to a new report from channel 4 news, not all the facebook data obtained by cambridge analytica has been
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deleted. facebook responding to the story and saying in a statement, what happened with cambridge analytica represents a breach of trust for which we are sorry it's clear to us there's more we could have done, and as zuckerberg said, we are working hard to tackle this and committed to letting people know if their data was inappropriately accessed or misused, so there's not a lot new here in this statement, however, they are responding to this investigation from channel 4 news that is raising more questions as to who had access to this data, and who still has access to it, guys >> all right, thank you. nancy, this statement makes you feel better about faceplant? >> no. i mean, yes, in the sense they are being responsive, absolutely i actually don't think what happened is the big deal i think what happened is the way the company handled it if they can yecorrect that, that would be bullish at the margin for investors. >> can mark zuckerberg correct
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that sounds like he's going to show up on capitol hill could this be a make or break moment for him >> oh, yeah, i think so. i think he's got to figure out what he's going to do about the parliament request if you just don't want to give these folks an opportunity to fill in the vacuum and fill in the gaps, i would say he needs to be very carefully crafted >> all right nancy, charlie, thank you, both, very much. >> thank you >> thank you, kelly. >> there's a lot more ahead still on "the closing bell." straight ahead, the rates, and your money, and just what did's todd hazelton find when he looked to see what records facebook kept on him you'll be amazed when you find out. you'll want to see what facebook has on you too this is the "closing bell" live from the new york stock exchange with kelly evans
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♪ we're drowning in information. where, in all of this, is the stuff that matters? the stakes are so high, your finances, your future. how do you solve this? you don't. you partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. morgan stanley.
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welcome back check inning on the bank stocks, largely down today, but wells bucked the trend investors trying to figure out
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the rates and yields joining us now, senior equity analyst and managing director at cross mark global investments. victor victoria, rates, generally, the ten-year down below 2 partnersh2.75 overnight, and now the weakness is affecting the financials all month. a terrible march for them. what are your expectations now when it comes to interest rates? >> well, you know, we had held steady in that 295 range for quite a period time. rick had his countdown on the days i think we did 22 sessions. it was not surprising with all the uncertainties in the market that one of the elements that caused rates lower was a flight to quality, but we also had a large speculative short in the treasury market, which, when the ten-year went blow that 2.80 level, the 50-day moving average, investors covered the positions and pushed the yield down lower, so i think we're in a place now where we have to start looking at the technicals
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and decide are we going back up into the consolidation range or move back to the 2.64 level from before >> yeah. >> we're looking at rates moving a little bit back towards the 2.85 level, so we maintain our conservative positioning >> james, how central is the yield picture in terms of bank stocks and how you're going to perform right now because it has been something the stocks have not really been able to decouple from yields for long >> it's definitely important i think a lot of people have been looking at short term rates and the affect of the rising short term rates on bank profits. of course, that's been very good for them over the lapast year, t people are getting worried that you have some flattening in the yield curve, the fed is getting hawkish under powell it could slow down the economy, and, of course, would not be good for the banks >> meantime, james, what you
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like here, consumer credit sensitive names, which, it's an interesting place that we are in the cycle right now, and on the one hand, the confidence data, tax cuts, employment, all paints positive pictures, but on the other hand, you worry, well, it's been going on for a decade, and what is the charge rising? who do you think is well-positioned here >> yeah. we like the consumer lenders i think one of the reasons is that less sensitive to ratings, so they have been left behind in the rate-driven rally. they tend to be liability sensitive. we like capital one. we like american express we do think they have room to continue under excellent credit quality. i think one reason is the banks have been very conservative overall in terms of consumer lending since the financial crisis, the argument that the generals fight the last war. everyone's worried about consumer credit so there's not been aggressive lending there. only place we have losses is in cni with energy losses, and you
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have an improving consumer confidence, very good employment picture boding well for credit quality over the medium term >> victoria, what do you think happens, rick said, look, i think the fed stops raising rates if the short end gets up to where the ten year is right now. do you think that's true i mean, we're getting there. >> we are getting there, and i think that powell did a good job in the meeting laying out the plan the job last week was to look at the rate hike for the one meeting, and, yes, the dot plot looked hawkish, but the statement, itself, was more neutral. i think if we get that flat curve or start to invert a little bit, they will start to pull back, and slow that pace of rising rates >> it's a fascinating conundrum. it's not strong, but not going up, stop raising, but anyway, jameis, victoria, thank you for now. >> thank you, kelly. >> thank you >> appreciate you joining us to more earnings
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this time from pvh over to morgan with that >> kelly, so a strong beat for pvh, apparel maker, reported earnings of $1.58 per share, 11 cents beat revenue of 2.5 billion, ahead of expectations for the current quarter, pvh is expecting adjustadjus adjusted earnings of 2.25 per share. revenue growth of 15% expected for the quarter. nearly double what analysts had been looking for full year 2018, earnings adjusted $9 to $9.10 and revenues expected to grow this year by 7%. so all of those stats better than expected by wall street analysts, and you can see that right now in the shares, they are up 3%. pvh is the company that owns the brands tommy hilfiger and calvin cline and says this is reflected in the 2018 outlook because of
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those brands back over to you >> all right, morgan, thank you. mike, here we go again >> another consumer. clothing name too like lulu doing all right. they were strong even with retail hit because lodger owning the brands not affected by the real estate and stores traffic stock is, you know, 8% below the high really just shot up at the market at the end of january, but the chart looks okay >> now it's up a little bit more than 4% on the report for pvh. facebook not only the target of congress, but mocked on primetime. showing you that next. plus, what facebook might have on you on the information they collected on one of our employees. showing you what he found, "closing bell" is back in two.
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welcome in if you're a fan of silicon valley, you noticed a few new developments in season 5's debut opening credits. the show producer fo er poking facebook's russian scandal, changing the logo to symbols that resemble the russian alphabet, and they revamp the privacy policy as a result of the fallout giving users more control today making data management easier and redesigning menu settings. todd hazelton took a look at what data facebook is gathering
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on users, and, todd, what did you find >> crazy information they had on me, actually, including where i had been, my friends' list, my contacts, everything apps that have access to my contact information, advertisers, all kinds of data i'm going to show you how to go through that in a second, but, first, three highlights with the ads that had access to my certainly contact information, really surprising. here you can see air bnb, spotify, apps i approve, but others i never heard of like best table top games and crowd funding projects >> or a guy named chris stapleton. >> a singer song writer, i don't know why he needs my information. when i say "contact information", it's my e-mail address, phone number, friends list, profile photo, all data like that. it's a lot of stuff. again, it's things i've never heard of, and the list goes on and on, and in just a couple minutes, how you find for yourself the brands with your
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data next, i want to show you quickly, some information on events that i found on facebook all the way back to 2006 when i was in college at lehigh university these are units i forgot about >> you blurred them out. i was going say you're a brave man. >> 2006, 11 years ago, this data is still there on facebook that shows you a little bit -- you know, you use facebook and add data here and there, and over the years, over 11 years, now, it's just this huge collection, and it's a perfect picture of my entire life, which is crazy next, i wanted to show you location data i dug up i'll show you how to find it too. this is just one day, i drove from the beach all the way back home, and you can see it plotted my data all the way up to jersey city where i lived at the time i believe this was 2015, and - >> how did it do that? >> it has access to my location,
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which i shared with it at some point when i agreed to the terms of service we always download the app and, oh, sure, you can have this information, accept, accept, accept, well, at some point, i said, you can have access to my locati location, and it did that, which is wild. >> wow so i'm thinking, todd, like you said, people can find this themselves >> right >> in the first place, it's, like, hey, and i got rid of my account a couple years ago, how do i check if they still have that information or who else has access to it >> right >> how do you do that? >> so ad agencies do, but first here's how you find it or right bar here, drag down, click settings, and then you are going to click download a copy of the facebook data and down load archive, enter your password, you can see a bunch of data. it's basically a big zip file. go through, see everything facebook stored on you
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i was able to dig through and see phone numbers for people i had not talked to in years the phone numbers were not on their profile or on any phone, but facebook got that data and it's still there >> so, today, they announced, todd, those streamline privacy features is what you showed part of that? >> right this is -- it's supposed to get better over the next couple weeks. this is how it currently exists, harder to find and delete data, but it will get easier to delete soon some of the other things quick is how to see where you have been if you had location services on. go down to activity log in the same menu there, and on the left hand side, click more, tap location history, and this is going to show you everywhere you've been with facebook and the app, obviously, you can see i turned it off march 6th there, but it can zoom in all the way down to the very exact place you were on the map, which is wild it has data on the videos you've
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watched. all the comments you've left all crazy information there. >> why - >> you probably forgot about it. >> how do you feel about it? >> here's the interesting part about it there's an instinctive discomfort with the fact that this is all in there >> right >> uh-huh. >> you get not question of how it's utilized. presumably, it's getting thrown into a massive stew of data that gets crunch and analyzed for patterns and other things. >> oh, we're not tracking you as mike says, but just tracking you men who are age 35 >> you have a huge matrix of all these characteristics most likely, and then advertisers put those characteristics into a bucket and the rest of it. >> what i found, this takes us back to the analytic lialytica e is that some of the third party apps with access to your data, like, if you took a quiz, like, what character on "game of thrones" am i, that is data they
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collected and sent elsewhere without users knowing about it that's what you want to look for here is apps you gave permission to, random ones like that, get rid of them. we have articles on how to do that on, but in some cases, that's the scary thing, you don't know what they do with the data >> i remember showing a parlor trick on the iphone, and go in and look the information has on your location, and it's the same thing. they have log of everywhere you've been down with incredible precision, so it's not like it's just facebook, but apple would say, you know, we're not selling to advertisers on the back of it todd, final thing here for everybody watching, then, is how to you turn it all off >> right now, it's not really easy to turn off you can delete manually, but you candidate really get rid of it if you quit facebook and log in, you could and all the data is restored there's news today about privacy features and changes coming
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because facebook needs to change all of this. >> well, again, thank you for putting your information out there. >> yes, thank you, kelly >> we have to have him on again to see how the 21st birthday party was. >> you were looking closely. >> i was >> todd, thank you very much there's more online. let's take a look now at how we finished on wall street dow dropped nine points on the bell and s&p dropped seven, russell lower, and nasdaq dropped 59 points after yesterday's 3% decline time for a news update, hi, sue. >> held re's what's happening at this hour. dozens of students arriving in jamesville, wisconsin after marching 50 miles from the state capitol to send a message to house speaker paul ryan. his office is in jamesville. they want legislators to listen to them and do something about gun violence >> we are challenging young people in the other 49 states to plan a 50 mile march to the hometown or office of one of
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their elected officials before the november election. >> prosecutors say the pulse nightclub shooter's original target was the disney spring entertainment center in orlando. revealing details in closing arguments in the trial of the widow of the pulse nightclub shooter. video released in court showing he walked around that disney complex. a new study from the cleveland clinic says people may face more than just physical challenges after a stroke. researchers say many patients struggle with socialization. that is the news update at this hour back downtown to you >> all right, sue, thank you very much. sue herera hope for drug prices, a top executive saying lower prices are on the way we have that coming up first, though, semiconductors, the chips down more than 10% from the recent highs, and fast money traders weigh in on the sector after this.
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welcome back, the major stories today in the rapid recap. >> markets trying to stands after tuesday's drop
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worst day for fang in three years. >> there are so many etfs related to fang that these have become a pinatta >> the social media platform trying to make it easier for users manage preferences >> facebook is attempting to get around enormous amount of negative feedback, but they have not addressed the problem. >> tim cook making headlines right now. facebook and that data scandal came up, cook saying that we've never believed such detailed profiles of people should exist. >> as if the fangs did not have enough to worry bout, there is that new report by axios saying the president, quote, hates amazon, wondering if there's a way to dgo after the company >> tesla slammed again, stock down 11%, 15% for the week, fears about a cash crunch. >> today, more muted, dow down 10 points, couldn't stay positive, went out into the red on the bell there. >> and how about the chip makers they continued their slide today too, up 2% after falling 3%
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yesterday. the industry started this year off strong with 30% gains over 12 months, so where is the momentum gone? joining us to discuss the fast money traders are here, and welcome to you both. >> thank you >> pete, i mean, 5% drop in two days is substantial. >> it is pretty substantial. i think it's just all connected with fang and selloff you see in technology itself, pulling some of the semis down. there's other reasons as well. if you really go back, kelly, looking where micron came from, it's up 130%, so big run there and intel. i love the names creates opportunity. great cash flows, they are in the right spot in terms of where their chips go right now i like the names i think you are as well? >> and, you know, pete's talking about the move in the stock and the space, the last to fall, a challenging dynamic for markets over the last couple weeks we had attacks on autonomous, concern about the takeover activity in the sector driving a
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lot of valuations, but intel's numbers in the last quarter, phenomenal, record year for the company, growing 20%, cloud growing 35 well positioned as they have been it is the guys not a part of something that's, you know, been there for a long time and been driving valuations >> pete, i wonder what your read is in terms of what it means for the broader market you had these popular once bullet proof groups and like the fang stocks, came in, one school of thought says, look, no correction is complete until there's no place to hide, leaders come in, and other says it's a trend change. >> right how many times have we seen these rotations that happen? but i think with the market we have now and last couple years, rotations happen extremely quick. particularly when you talk -- tim talked intel that name, the reason it's impressive is look at the acquisition strategy has been. they have gone out and they have bought where they needed to buy.
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they put themselves in a position to grow for the future and that's what they are doing they reported back in january, tim mentioned, record quarter, unbelievable, quite frankly, they will be reporting again, and they were incredible, so i like buying companies when the fundamentals are there, cash flows are there. pulling back, that's an opportunity. >> good stuff, guys, thank you >> pete, tim, joining us let you get ready. 18 minutes until "fast money" begins at 5:00 p.m. eastern time much more coming up. news alert on docu sign now. >> another unicorn filing for an ipo folking dropbox's last month. docusign filed today, looking to list on the global stock market under docu the company hired morgan stanley and jpmorgan to underwrite the initial public offering. recently, it was valued at $3 billion, one rumored to be
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looking to do an ipo this year for a long, long time, however, you know, taking a look at the financials, still not profitable, posting losses since inception there 2003 however, you know, on top line revenue up to $350 million with decent numbers for growth profits. we'll continue to dig through its per speckispectus. >> after you saw dropbox last week, one of the worst market days following a terrible one, still up 50% >> no doubt this was already in the works. not just a four day lets get out there, but it's a sense of it's a now or never moment. hit the window while the market is still receptive to it the private market could run out of patience before the public market >> it's a name a lot of consumers know as well i love it. >> it's a selective ipo.
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to your point. it's not like, you know, everyone talks about 98 and 99; it was tons of anonymous nothing companies with billion dollar valuations nothing like that now. >> thank god if. >> right >> we don't want it. >> that's the information on docusign a health care o un ocesodsff next you're watching cnbc, first in business worldwide ♪ directv now gives you more for your thing. your letting go thing.
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united health group ceo sat down with jim cramer earlier at the healthy return conference today. here he was discussing united health's practices >> we work to bring greater affordability to users, bringing greater discounts to the point of service for consumers over time, i think it'll get greater levels of attention. aetna also adopted a similar policy and hopefully the rest of the industry gets to the same position >> sound bite from the future, stick around and watch the rest of jim's interview with david wichmann tonight on "mad money" at 6:00 p.m. eastern time. mike, a weird question about this, but what good can united health do on this front? i mean, how much good? >> you know, i think they -- they touch a lot of parts of health care. i do think that they are integrated enough to do a little bit of good. i don't think aetna has where
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it's seeing everybody saying, no, people -- healthy behaviors say, it's all about the last month of care before death >> so there's so many cross currents where the major -- the role of the people in the middle of this versus those closer to the patients >> exactly >> it feels like, for years, we just had inflation in the system at every juncture, and now the -- opposite of that happens. now every's pushing back >> allowing for a lot of takers in the middle, what people are now kind of, the backlash, and as sets pharmacy managers, and there was supposed to be an instrument of cost control >> absolutely. now it's not that way and under threat as well from the administration calling them out specifically on the opioid issues so the valuations took a hit as a result. more on the trade deal and north korea next
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more details coming to light about america's trade deal with south korea. kayla tausche has the latest now. >> kelly, this is the first test case of a renegotiation for the president, making relatively minor changes on a just six-year-old deal with a long standing ally with whom trade is on a much smaller scale than with partners than china or canada for the white house the goal was the same, to lower the trade deficit. with korea it was $23 billion in goods. the bulk of that coming from
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cars th >> we think we are going to make real improvements. it's not going to go to 50,000 per manufacturer immediately but i think it's going to get way above 25 i think we are talking in the not too distant future about billions of dollars of additional sales and i would say that other countries do sell in there, and we have the kind of products that they will buy >> lighthizer also said he hoped to de a deal was close with nafta partners getting a deal in april would be a bit of a challenge it is worth noting that next round of nafta talks is supposed to happen here in washington as soon as a week or two from now but foreign officials tell me they have not received a final confirmation of dates from
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washington even as uctr tries to seek that deal in principle. >> i know, sense you are here, what did you think about sarah huckabee sanders asked about the axios story b the president, quote, unquote, hating amazon. is he now the central player on anti-trust >> he certainly has very strong feelings we heard this summer you know, he asked lee cooperman specifically on two different occasions whether he thought amazon was a monopoly. cooperman made those comments to cnbc i think there is a stark difference between what current policy is coming out of the white house and what the president's feelings are on that front, one line in that story stuck out to me, that is that the president has wondered allowed whether there are anti-trust tools he could use against amazon remember, the white house and the department of justice have sought to distance themselves from any politicization of the anti-trust process which is normally governed by economics
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we have seen that in the at&t/time warner case with the department of justice. if the president chose to go after amazon, that would certainly throw cold water on any claim that the white house and d.o.j. had that this process was not politicized. >> he can do it but then we will kind of know the joke's up. >> it's unclear through which he would actually do it if he picked up the phone and called d.o.j. and asked them to launch an investigation i think that would run into some serious issues and with a raise red flags on its own. >> all right we will see if we get there. kayla, thank you very much kayla tausche at the white house. let's send it over to leslie picker with news on saudi arabia. >> the stock exchange added to the ftse russel emerging markets index. that's according to a press release from the saudi exchange. they are being classified as a second emerging market in the ftse global equity market sear from its previous status as unclassified they say this is due to.
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so of the cap markets reforms they have undertaking over the last few years. >> mike, this is convenient. >> sure. >> because guess what, their stock market is going to need a lot more liquidity to support this aramco ipo that father-in-law is going nowhere else at first and what better way than having an emerging market etf buy it up. >> if it is in the benchmark it's more open to buy and it becomes something where you want to have some exposure to it because it will really presumably be the index. once it lists there it will dwarf the rest of the capitalization. >> i thought that would have made it less likely this move might had. fatty russ cell going to lift the status of sawy to em it was a volatile day on wall street we will check on the action and the after hours movers when "closing bell" comes back ♪
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welcome back it wasn't just the social media names, apple sank more than a percent in today's session after goldman sachs released a note earlier slashing its iphone sales estimate for the first two quarters of the year goldman expects 53 million units down nearly 3 million from
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previous estimates yesterday apple had an event unveiling the i-pad for educational purposes although all it sounds like is a $30 price cut if you are a school buying it. >> that was a marketing push it's interesting that the stock backed off today on this note approximate iphone sales clearly the street remains sensitive to this idea of just how strong or weak the upgrade cycle is what is interesting to me, if you are looking for catalysts next month they are going to detail what they are going do n >> for apple that could be a bigger story pbh and game stop reported, pbm up, game stop came in with 12% comps. also pete out on top and bottom lines. the stock was up 4%.
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now it looks -- >> obviously people are not willing to give them the benefit of the doubt and they are saying it's going to be a difficult year comparison wise. >> did you say it was trading at 3.5 times. >> 4.5 times earnings for the published estimate for this year. >> that is a cheap. >> easily the cheapest stock in the big cap world i think. >> that does it for us >> "fast money" starts right now live from the nasdaq market site overlooking new york city's times square i'm melissa lee. traders on the panel today -- pete najarian tim seymour, steve grasso and guy adami tonight on fast, bitcoin nearing a death cross sending crypto traders into a frenzy. but tom lee keep calm and hoedel on first we start off with the tech tantrum, raging on and the markets fallen angels, the once high flying stocks could have gone from beloved to discarded.


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