tv Closing Bell CNBC August 17, 2018 3:00pm-5:00pm EDT
when you go to the zoo these are truly up close and personal pictures. >> so adorable ready, there you go. >> aww >> worked again. >> thank you so much >> thank you for watching "power lunch. >> "closing bell" starts right now. it is time for "the closing bell." i'm sarah eisen in for kelly evans. tesla stock is tanking after elon musk gives an emotional interview. and more on this risk of a ceo burn out coming up deere the latest company to get digged by rising material stocks after a morning plunge what's behind the wild swings, that's coming up i'm steve liesman at cnbc headquarters globe bank policy, president trump's rate hike critique of
the federal reserve. we'll give you a preview just ahead. i'm bob pisani in for wilfred frost. president trump says he wants companies to report their earnings every six months instead of every quarter but one ceo says even that's too frequent he'll make his close "closing bell" starting now. welcome to "the closing bell." and welcome. happy friday bob pisani is with me. we'll get to all those stories in just a moment, but let's check on the markets nice turn around today dow swinging around more than 190 points in today's session. on track now to post the sixth positive week in seven it's been boosted higher by talk of china trade talks we've got all 11 sectors in the s&p positive the debate of the day, i know
you know it well, president trump's tweet here the ceo of black rock has been advocating for changes and short-term thinking for a while, he says i'm encouraged to hear paem from both sides of the aisle talking about the need to promote corporate behavior that's more focused on the long-term those the precise policies for getting there need to be thoughtfully examined and debated. so he's not weighing in on whether this is the right solution scrapping quarterly earnings president trump is getting a lot of backing from the business community on this. >> not surprisingly. the ceos claim they want to think great thoughts and all these people that want to watch these stocks are just interfering. >> maybe their thoughts would be greater if they didn't have to beat the bottom line every three
months >> they specifically mandated with the problems they had in the 1920s of companies not giving money to investors. i'm weighing for them to weigh in on this the president is asking for the sec to weigh in on it. >> they have to take it seriously, but if there's a serious risk for investors that like the short-terms earnings it goes away. >> tesla its worst day since march 27th after ceo elon musk gave an emotional interview to "the new york times. let's get right to cnbc's phil lebeau phil >> this interview prompted a couple of things first of all people talking ability his mental health and physical health. and there's questions happening right now with regards to the tweet he sent out potentially taking the company private he denies that he was
quote-unquote on weed when he was sending out that tweet and he also said there was no active search for a coo. with regard to his own status at the company running tesla he says if you have anyone that can do a better job please let me know they can have the job. is there someone who can do the job better, they can have the reigns right now no indication he's going to be turning over the reigns at tesla anytime soon as you take a look at shares of tesla over the past month keep in mind there are reports that the sec will be talking with musk and the board of directors as potentially as early as next week with regards to the other aspect that came out very clearly in this story, his mebtal health, his well-being, this is one quote that stands out. when they were rushing to increase the production of the model 3 he wrote, the worst is over from a tesla operation standpoint, but from a personal pain standpoint the worst is yet to come.
certainly not reassuring if you're an investor that the he's saying that. >> i can the important thing here is now we have another moving part we have to think about here we've got sec and the tweets, the feasibility of the buy out and now musk's state of mind let me ask you how is tesla doing? remember we were supposed to be hitting 5,000 or maybe 6,000 model 3s where are we on that timetable >> by all indications from people who have gone out there, and analysts and others who have written about this, they're maintaining production around 5,000 per week in fact some believe it's going to be around 6,000 per week for the third quarter. they've stabilized production and hopefully at least they're hoping they can get up to 10,000
by the end of this year. but, guys, that has been drowned out completely with what happened with the tweet as well as with this interview with "the new york times." >> phil lebeau, thank you. in it musk shares, it's not been great, i've had friends which by who are really concerned in the interview elon musk also reveals details about his stress level and lack of sleep. saying it's often a choice of no sleep and amben, and that he's not taken longer than a week off work since 2001. here to talk more about the toll of being a ceo, the toll that can take is the global head of the johnson & johnson human head institute. have you ever seen anything like this >> i think what musk has done is illuminate an issue many feel. the ceo role is a highly visible
role, there's tremendous stress in it. and over the last five years that stress has grown, pressure from activists, shareholders, short sellers. with that visibility, though, there's incredible isolation it's difficult to share what's going on in a way you feel people can have empathy and you can trust them i think in a way what's being shared today is courageous, transparent in terms of what he's feeling but we work with leaders across the world who would express these very same sentiments that role has changed dramatically and the prep operation for that role hasn't kept up with it. >> you're reaching out to your executives and trying to provide some emotional support what's the program like? are we talking nine pages and you show them -- what are you doing to help your executive
snz. >> i start with the insight the game has changed and there has to be a radically different approach not only with the leaders themselves but how boards are preparing the leaders for these roles. think about the number of leaders in the last 24 months who have stepped down from their roles. how many have stepped down because of how they're performed or how they show up. how they show up is a big part of it, and the program lead build addresses the whole person >> and more time with the family how many times have we heard that paul ryan, the speaker of the house, more time with the family isn't that kind of a metaphor for i've had it, folks >> very common so there has to be a whole person approach to this. it's always been about what results have you driven in q3 or q4 but the truth is if that leader isn't showing up physically well, if the mental emotional
resilience is not there, if the character driven leadership is not there, that creates risk not only for the individual and their family -- >> are you saying he should step down >> no, not at all. i'm talking about the pressure of the role. >> but i'm wondering how much pressure is too much pressure to be leading chairman, company of the board without a number two >> so i don't want to speculate, but this problem is common the words he's using is not uncommon for leaders in these roles. and there's a need for us to have a tremendously different approach to preparing leaders. we have a nine month program, a six month program. there's ways to get into what the family is seeing for this leader, the friends are seeing for this leader. there's a whole perspective how this leader is showing up. >> reducing stress makes it
easier to think straight and think linearly, if you can show real results i'm behind you 100% >> and i think in addition to that if you're feeling fully charged, intellectual agility, emotional intelligence, those are the things that are displayed by leaders who was reinforced themselves nat right way. >> maybe montana meantime refrain from twitter >> that might be great advice. from the johnson & johnson human performance institute. joining us today rick, let me start with you. despite all the stir about turkey and china as well we're essentially flat for the week. what is this telling us about the markets? >> well, you nailed it
not only are we flat for the week with respect to equities, we've sold off to flat the one odd man out here is the dollar index, and that actually answers your question, bob listen, the issues especially some of the political issues out there aren't going to go away overnight. what we're seeing is the impact of emerging markets, turkey, all the trade issues at least irrespectable of the president's dealing with china or nafta related, their influence on the market is waning that doesn't mean the issues are going away but many of us at cnbc monitor the issues but see effect on the marketplace. i think the dollar given some of the ground that it gained because of many of those issues is a real positive sign. >> we may be flat and resilient to the turkey news, but not
everything is up this week in fact, if you look across the market energy, materials, consumer discretionary and technology are all ending the week lower in terms of sectors in the market. that tells the story as well about investors getting defensive. >> yeah, and we've seen this intermittently over the last several weeks. i think a couple things are happening. one, we're seeing a bit of profit for technology, we saw it in the second quarter based on reports and now we're seeing it in the retail space and in the traditional institution space. i also think, you know, if you think about this sort of transition to a more defensive posture, i think you can look at where we are in the economy, i mean you saw consumer confidence today. although the university of michigan was a little bit of an outlier versus the other consumer confidence surveys. i feel people feel we may be
entering some of those later innings and there's some value in these quote-unquote value sectors. i think people are looking at it and saying it doesn't cost as much to get defensive. maybe it's time to add some of those positions to the portfolio. >> and we're looking at a potentially 26% gain for third quarter earnings, somewhat in the 20s for the fourth quarter as well. the numbers aren't coming down and to me that's the reason we continue to outperform the rest of the world >> bob, you're absolutely right. and speaking of the rest of the world, we've seen a huge move just in the last hour when dominic chu mentioned that about a 3% move in the emerging markets and 2% move in china etfs $160 billion of new money in etfs so far this year, but the
iemg has $10 billion year to date, $2 billion just in the last month and it's got a pretty big move for getting market representation for only 14 basis points if talks improve this might be the link everyone is looking for as far as valuations getting better, markets getting better overseas, especially emerging markets in china >> thanks, everybody still ahead on "the closing bell," a hedge fund billionaire says wall street critics are suffering from a bad case of buy back derangement syndrome. his case for why stock buy backs could be viewed as a positive ahead. plus last month president trump criticized the federal reserve. remember this? >> i've been a very good man in the fed. i don't necessarily agree with it because he's raising interest
i know! i know! i know! i know! when did brian move back in? brian's back? he doesn't get my room. he's only going to be here for like a week. like a month, tops. oh boy. wi-fi fast enough for the whole family is simple, easy, awesome. in many cultures, young men would stay with their families until their 40's.
and welcome back we have a news alert on the sec. sec chairman jay clayton just putting out this statement on president trump's proposal to change how often companies report earnings. i'm quoting, the president has highlighted a key consideration for american companies and importantly american investors and their families encouraging long-term investment in our country many share this sper pective on the importance of long-term investing. recently the sec has implemented and continues to consider a variety of regulatory changes that encourage long-term capital formation while preserving and in many instances enhancing key investor protections in addition the sec's division of corporate finance continues to study public company reporting requirements including the frequency of reporting, as always the sec welcomes input from companies,
investors and other market participants as our staff considers these important matters. that's mr. clayton's comments. so there's a very quick response to president trump's request to study it obviously, i think -- >> no sign which way they're going to go, but message received, right? >> clayton is very smart he messages he's continuing to study it wisely. >> love it >> not bad for a friday. >> yeah, friday afternoon. meantime federal reserve officials will begin gathering next week for their annual meeting in jackson hall. steve liesman is joining us now with what more to expect we learned powal is going to talk >> the 42nd meeting in jackson takes place as always in the shadow of the mountains and in the looming financial economic issues of the day facing the fed. as they meet fed officials will be a month away from the ten year anniversary of the
financial crisis the unwind of the policy measures among the issues facing chairman powell who faces quotes monetary policy in a growing economy. they have to deal with how tariffs will effect the economy, how fiscal stimulus is going to affect inflation and growth in a fully employment economy, the effect of interest rates on the fed from emerging market economies and also corporate and government debt, of which there are tens and trillions out there. it'll focus on firms in several industries kansas city putting out a statement today, quote, these shifts should concern central bankers since they likely have important links to slow productivity growth, slow wage growth and there's another shadow from
a president who has commented on fed policy and one of the things we'll look at is whether or not powell asserts. >> i think when the fed started using jackson hall to sort of telegraph policy changes is there any sense that might sort of change under the new chairman at all? what's the style at this new conference >> i think there's questions as to whether or not bernanki actually used him. you remember when they had to haul emergency communications equipment because the world was kind of meting down and they had to communicate from there? it turned out august had to be a really hairy month and he had to tell them what was going on, and
also they did a lot of policy up there and communicated it to central bankers. as you guys recall the financial crisis was a global one. so being up up there was helpful at the time. >> jackson hall sort of has an international flavor to it do you have a guest list yet >> i think you can expect the leading central bankers including kuroda and dragi almost always make it up there this is place, by the way, where some of these emerging market central bankers can communicate with federal officials and fed officials can hear back from them i remember in years past there was important communication that happened between the two about how all this is going to happen. and no one knows better than you, sara, about the effect of fed policies around emerging markets. i think that's something the fed will be mindful of and we'll hear an earful in jackson hall >> oh, yeah, thank you for that,
and welcome back to "the closing bell." let's check on some stocks to watch here seven year low for dean foods. here's the problem, 70% of dean foods revenue is milk and th milk business is ugly. it was downgraded today and jp morgan, they cited a possible third quarter earnings miss. they cited higher raw milk costs, they cited the threat of milk alternatives and head winds in the shift to private labels as well as valuations. and indeed earnings have been declining for several years and the stock is a pricey 20 times earnings even today and we're at a new low. jp morgan slashed the stock price target to $26. >> you sound outraged. i don't drink milk still >> this is unfortunate they own a lot of famous milk brand names. everything, commodity inflation number one, erosion, a brand name competition in the pricing.
>> milk demand is lower. >> it's like a plague of locusts. >> and there's the stock price down one winner today is nordstrom surging after a big earnings beat after the bell sales rose 23% boosted by online promotions the retailer seeing a big am yeas in same store sales specifically at the outlet, nordstrom rack, at 13%, actually could close at its highest level in years now it accounts for 30% of nordstrom's overall business they've been investing behind this and also not been one of the most beloved retailers in this big come back story in 2018 >> i think the important thing macy's had great numbers, too, they had an enormous run up. and wal-mart showed a much more
modest run up this year. people are looking for value we're also selectively buying stocks that's actually what's going on in retail. they're picking winners and losers right now in retail >> and i would say the overall theme the consumer is the winner if you look at the growth. >> i know people including my wife love the deals macy's offer all the time critics suffering from buy back derangement syndrome. we'll tell you why bliaiilonre hedge fund manager is taking on the buy back haters.
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can't impact power lines. and since the onset of the drought we've doubled our efforts. i grew up in the forests out in this area and honestly it's heartbreaking to see all these trees dying. what guides me is ensuring that the public is going to be safer and that these forests can be sustained and enjoyed by the community in the future. and welcome back time now for a cnbc news update with sue herrera >> here's what's happening at this hour, everyone. the judge in the paul manafort trial says he is being protected by u.s. marshals because he's been threatened over the case and he will not release the nameoffs the jurors due to safety concerns. the jury is still deliberating a recent report named 300 priests accused of sexually and physically abusing more than
1,000 victims. a bishop with the dioceses of harrisburg saying there needs to be repentance for grievous sins. 14 were killed and more than 100 injured when a man drove a van into crowds in the center of the city and back here at home a rather messy tribute to a classic movie. a huge food fight breaking out at the st. paul saints game to celebrate the 40th anniversary of animal house. the announcers even getting into the game look at that they're playing pop concern out of the booth before you say what a waste of food, the team says it will donate money to a local food program. today's quote comes from hqr capital management he wrote a piece titled buy back
derangement syndrome in it he writes, quote investors generally do not spend the money paid out in buy backs or champagne bubble baths or other forms of consumption rather they reinvest it in other stocks and bonds buy backs thus facilitate a movement in capital from companies that don't need it to those that do. that's how markets are supposed to work. interesting. >> here's the important thing, it's not the buy backs, it's how much you're reducing the share count. it total shares that are outstanding out there are down but not so dramatically. look, here's the numbers you can see there's been some years where it's been down like 2016, 2017 where you've shrunken the share count, but this year it's actually up that's because they add on the front end, they add options.
i think this is not a big issue. i would also note that the dollar volume of trading is near record highs so the amount of money that's actually trading even if there might be slightly less shares outstanding is as high it's ever been they're trading dollar amounts not necessarily the stock share amounts like they used to. >> and also a political punishing bag because they could be spending that money elsewhere. and president trump announcing today he'd like to see an end to public companies reporting their earnings every quarter. here's what he had to say when asked how many times a year he thought companies should have to report >> i'd like to see twice, but we're going to see this took place when i had, you know, the world's top executives, among the world's top executives and the head of pepsi cola, a great woman who's now retiring and i asked what can i do to make it even better, and she said two time a year reporting
not quarterly. and i thought about it and it makes sense to me because we are not thinking far enough out. we've been accused of that for a long time, this country. so we're looking at that very seriously, twice a year instead of four times a year >> a shout out to the outgoing pepsi cola ceo she wrote many market participants as well as the businesses most agree that a short-term only view can inhibit long-term strategy and included a suggestion to explore the harmonization of the european system and u.s. system of financial reporting. in the end-all companies have to balance short-term and long-term purchase >> well, look, who can argue with that statement? of course all the companies have to balance it, but i still come
down on the side of where the sec was 80 years ago where they said more information is better. that's what happened 80 years ago and i'm still with the sec on that. >> let's have a conversation about it is it time for companies to change the way they report earnings joining us now on the phone is allen questrom jc penny right now is a company that is struggling, would they do better if they only had to report earnings every six months >> i'm not sure that would help them at this point every six months is better than quarterly, i doubt they're going to change that but i do give credit to the president for listening to the executives when he invites them in i think what we all want to see is people think about the long-term. and examples of this last
quarter of wal-mart where the stock went up because primarily because the internet was up 41%. when they finished last quarter of last year it was down 22% so now it jumps. it's only six months later and in the case of macy's they report a good first quarter because of a change in sales and second quarter it goes down. people can't respond that way. the key is the executives that run the company have to think long-term whether they report quarterly or six months. you have to think how the business is going to like six months, 16 years from nu >> amy, let me turn to you you advise big institutional investors. where does the council of institutional investors come down on this question? and who would benefit of having less information out there isn't that the real crux of the question >> well, that's true
and of course executives would like fewer restrictions on when they report and how, how often but would that benefit the investors who after all are the share owners of the companies? quarterly reporting provides investors with, you know, with accurate information, timely accurate information they need to make informed investment decisions it's been around for a long time, and it provides discipline and accountability in the marketplace. you know, if you have longer intervals between reporting you could have more -- first of all, it'd be harder to cover any shenanigans going on think about chevron, it was a big report and that led eventually to uncovering what we all know now to be a hosof cards. and also leaving investors
without information to rely on so they'd be more likely to pay attention to rumor or off-the-cuff remarks by executives and that could make for more price volatility and speculation. and there are studies, you know, that have shown this some others think it could provide more opportunity for insider trading. >> allen, how do you respond to that, and also what do you think a move to six month reporting period would allow companies to do if they get unshackled from the every three month pressure to beat on the bottom line >> again, i think analysts certainly gives them quarterly because it gives them something to do. i think quite frankly the it could have been looked at two years before i think it's me you how the ceo wants to treat it. i'm all for six months, but as i said i don't think it's going to change and i think we always have to think longer term. if you're investing and you're
going to flip every three months, i mean that seems to me to be a strange way to invest. but i'm a long-term investor i'm not a short-term, i'm not a trader there's different ways people think. i think to the point as more information that's available every six months or every three months is fine as long as people have access. >> wouldn't it be better if we turned this around, amy, and said maybe the ceo mind-set should change? at this point their compensation is tied to the stock price isn't that a short-termism to look at? >> there is concern. i think we all want our executives to focus on the long-term. i think if ceos want to get out under short-term scrutiny more of them should stop issuing quarterly guidance
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new reports that amazon may be planning to make a live recording box to rival tvo that's all it took tivoshar ti tivo shares falling. >> everything is basically tackable at this point everything can be disuptable tomorrow a new loyalty program goes into effect that effects marriott, ritz carllen and starwood >> the rollout of the unified loyalty program comes two years after mariate acquired starwood for over $13 billion members can look forward to
having 13 hotels to choose from, more than 6,500 properties though marriott is introducing seasonal pricing in 2019 which according to industry experts means travelers will need to hand over more points to book a room on peak nights. and the american express credit card reduces the number of points spent per dollar from eligible purchases from 3 to 2 drawing criticism from a number of elite members >> the thing i'm most upset about and i know a lot of starwood members are devalued earnings on the credit card. >> hotel rivals have taken notice last month hyatt launched its new credit card. shares down about 10% this year trailing its peers wall street want to see how its
business travelers which make up an outside proportion of the revenue respond to the new program. >> so bob has already mocked me and everybody else that pay attention, a little bit. i think it's important he talk tuesday the points >> i agree, he's great >> do you expect that all those starwood points fanatics are dropping off because of the marriott merger and these changes? >> it's really hard to say i think the next coming weeks and months will give us a better idea if the new unified program marriott has launched here will win the hearts of the spg savvy business traveller their perks and the whole program will be downgraded to the marriott experience, and they were very well aware of that they tried to make sure those
perks would not go away. >> i was not mocking you i was making a comment -- we were having our conference call with our producer. and i said it's amazing, seema, what people will do for points i've seen people do somersaults just to get a few extra points i think it's worth it. a lot of people trade ideas. you know, the amex platinum card or the one you were mentioning, people love these cards and pay a lot of money for them. but the point is people are really addicted to getting points >> in the hospitality industry loyalty matters. it's the business traveller, the consultant, the software developer who leaves their apartment monday, and once again back on the road monday. they really value points and the free breakfasts and the ability to get access to a suite keep in mind under this new program more people will be
competing for room up grades >> and you pay $550 a year for the cards, too there's nothing that's free out there. >> it's called perk, bob seema, thank you 12 minutes here before the closing bell still looking at more than 100 point rally. and the dow has been a turn around here for a friday dow is up 131, nasdaq lagging. it really has been pretty much all week up next you'll hear from david darts. 'lgehithiday wel t s eme of the week, his acronym. get excited. "closing bell" is right back how about some of the lowest options fees? are you raising your hand? good then it's time for power e*trade the platform, price and service that gives you the edge you need. alright one quick game of rock, paper, scissors. 1, 2, 3, go. e*trade. the original place to invest online.
he's only going to be here for like a week. like a month, tops. oh boy. wi-fi fast enough for the whole family is simple, easy, awesome. in many cultures, young men would stay with their families until their 40's. welcome back a few minutes left to go in the session. essentially right near the highs for the day. joining us now with his market acronym of the week the independent investment consultant despite all the issues around turkey and china we're essentially flat >> i think the market wants to lift here. the stocks are surging that's the s on debts. debts is this market theme's acronym. using the word of aretha franklin r-e-s-p-e-c-t
d is defensive positioning we've had basically the market leadership as you've pointed out week after week by the small and midcap stocks, and by the technology hercules stocks holding up the markets they have gotten defensive. go for some dividend yield whereas the s&p 500 is not the e is emerging markets. there you have turkey. there you have brazil, big election in october. and they may get their own version of a strong man. brazil, turkey, argentina. so be careful. they owe money in dollars and the dollars has been rising. it's up about 6% b is bond burdens. and there you have china's
indebtedness, used be 700% of gdp. ten years later it's 300% of gdp. can they manage this yes, a lot of is old domesticly t is teetering tech stocks and you see they've begun to crack. not only the u.s. ones but baidu, 10 cents, and hulu is down 40% from its year high. and finally the "s" is surging stocks and stocks want to lift here the u.s. has basically become the fortress of solitude where money is pouring in from abroad to take advantage of the profits. >> i look at your acronym and most of it sounds pretty bearish. is that how you're feeling >> i don't want to come across as the two greatest prophets in
the old testament, both ticking owe and were urging hope and salvation. you want to be very realistic here and it's time to trim a little bit the part's not over, but it's late in the game and i've said to you before, sara, the smorgasbord has been picked over a little bit you're not the first person at the tasting table. >> we've got to go, but the market has been doing that already. this week it's all defensive stocks, utilities, and health care and consumer staples. >> and that's where the flows are, too >> it's a healthy rotation, bob. it's a healthy rotation but it's time for people to get a little bit more defensive than they're thinking offense wins games, defense wins championships and special teams win super bowls. >> always have bits of wisdom. >> there are a lot of references >> coming from you that's a compliment up next we're coming right back with the closing count
there they are, your neighbors. you like them. they always remember everyone's names. your kids love swimming in their pool. you like them. if you forget your trunks, they'll loan you some. they have a section in their stock portfolio just for pool stuff. everyone likes them. you like them. but you'd like them better if you made more money than they do. don't get mad at your well-liked neighbors. get e*trade. and welcome back to "the closing bell." two minutes to go. for all the problems with china
and turkey this week we're ending the week essentially flat up very small, but we again turn defensive on the week. look at the market leaders want to show you consumer staples. good week again with the kelogs of the world slowly moving up. not big, but up 3% the fisas and the mercks hitting 52-week highs consistently health care as i mentioned, and utilities doing well, metals and mining where still dealing with the overhang and strong dollar growth and china internet stocks big decline there over 7% overall. still no healing there look what the cat dragged in >> welcome to friday in the summer it was originally for sale on the bells as we move into the final minutes of the day, but it's really pairing off. it's pair off right here on the
s&p, and it'll be the friday in the summer >> one of the reasons the market is so healthy keeps holding up essentially on the week despite worries but defensive. utilities, real estate, the four classic. >> and people get anxious and nervous and those are the groups they goto, which is good >> important next week we're going to have jackson hall >> the subject is market structure and how it affects monetary i'm not sure how many of those people really understand market structure, but we could talk about that all day >> do they mean liquidity issues what do they mean when they say market structure >> i'm not on the guest list, but we're going to find out. >> the important thing next week we may hear some comments on
china trade negotiations, and we've seen that is the marginal mover of the market. >> although we know that meeting isn't until november >> we're closing out the week. there is the closing bell. sara eisen is next, and if we can find bob pisani, we'll send him over, too. please do, bob welcome back to "the closing bell." i'm sara eisen in for kelly evans. bob will be back in just a moment let's take a look how we're finishing up the day higher across the board today. dow closing up 0.4%, around 110 points all 11 sectors in the s&p today closed higher. nasdaq lagged all week and all day. up 0.10%
and buy for the s&p and dow it's a positive week. 6 and 7. nasdaq down about 0.13%. and tesla getting crushed today after elon musk opened up in an interview with the "the new york times. if daily stress becomes too much for musk and without a number two not in place who could take over this role joining the panel today we've got cnbc contributor evan numar. and on the s&p it was nielsen holdens, the biggest holder. and hues the biggest loser there was some bearishness first with turkey, emerging markets and then hope of a china-u.s.
trade discussion coming by november all in all, markets higher >> yeah, it doesn't feel like it's higher. it felt like a very unsettled week i think the market has kind of i don't know who was doing the leaking or anything like that, but on two days this week we had the leak about the china trade delegation coming to the united states at the end of the month and then today about two or three hours ago we had the other leak that they'll be in november, a road map it made it sound like there was something there. i happen to think that there is not much there i think there's going to be more volatility over the next few weeks as the market realizes there's no quick or easy fix to these trade negotiations >> does that bother you we get these constant interventions in the middle of the day that move the markets? i've had traders call me up angry saying bob, it's time for the 3:30 announcement from the source >> it definitely feels that way. look, i don't want to cast
accusations at who it is or what's going on. but you sense there are people in the white house who are sensitive oo the markets a bad stock market combined with not great consumer sentiment numbers that came out today, i think for the white house is viewed as a bad thing. so the white house can kind of gin up whatever they want. >> well, the reason it didn't feel like a positive market to you is because energy closed down 3% on the week, consumer, discretionary, tech flaelg anol lower on the week. >> all the big stocks you've seen lead recently, even the ones like nvidia, adobe, the stocks that have been real leaders in recent times. facebook, more recently it's come back and given back most of its gains. the energy sector has been very
bad and netflix. those are very big moves >> i want to turn to victoria here because what we saw is how defensive its become again this week so your top sectors are real estate, utilities, consumer staples and health care. and this is part of the miracle of this market we keep getting this rotation when big leaders like tech fall back a little or aren't as strong, other groups come in are we going to see a continued turn to value in the next several months >> i think you're going to see a small term to value. what people are probably doing is taking a bit off the table from those growth stocks we've seen the sectors that have been leaders year to date. the technology to consumer discretionary, those are the ones lacking this week and we're seeing great earnings from the retail numbers coming out, at least a majority of them and there's anticipation we'll see some good numbers next week.
we've been laying the foundation for some positive quarter three numbers. retail sales came out and that was a strong number. consumer confidence took a little bit of a hit, but we still see consumers out there spending so i think people are willing to take a little bit off the table but maybe start repositioning if they think we're further down the market cycle >> all right, so concerns this week that the turkish lira's collapse would drive down global markets and u.s. stocks continue to do better than. this week the s&p has both outperformed emerging markets as well as china. that's on the top, the white line there as well as other indices like japan, brazil and germany. we are still the place to be in the world. the out performance isn't as great as it's been in prior weeks that we've seen, but with the earnings we have even excluding the tax cut impact the
investors seem to be flocking to the united states. >> you look at what's going in turkey, but that's more of an isolated incident. the issue we had here the pastor that's there, that may have been the trigger but it definitely wasn't the cause of the whole situation. there are capital accounts, surging inflation, those are issues turkey's had for a while. and that puts them a little bit apart from the rest of the emerging markets but there are definitely some others that could fall into that category, maybe south africa, argentina. i don't think we're going to see contagion from that, but the u.s. definitely has a stronger place to be. they still have some good growth you see china stepping in and doing some government stimulus as far as infrastructure spending they have had wins as well, their consumer growth, their credit growth has really been declining. there's issues there, and we're seeing the opposite here in the u.s. so definitely i would focus more domestically.
>> i mean, does this make sense to you, evan i guess it's a relative bet, but is there really such a thing as decoupling >> it's possible -- i mean, europe has underperformed the u.s. in the last ten years this is not a new story. most of the foreign markets have underperformed the u.s. since the crisis by a huge margin. so there's not really a lot of news in this my take away is actually it doesn't mean because things are not good in the emerging markets or things are not good in china, that's not necessarily good for the u.s. stock market. >> you know, who it is good for, though, good for president trump as he tries to get leverage and bring the chinese to negotiation table. >> here's the thing, i don't know how it's going to pan out i saw larry kudlow was talking down the chinese economy, investments collapsing you heard all that i don't really know what's going
on in china, but i would say one thing. i still am of the view that the trump administration needs a successful negotiation with china sooner than the chinese do and, look, we'll see how things play out all i'm saying is, you know, there are mid-term elections in the united states. there are not mid-term elections in china >> i agree with you. i think the chinese stock market doesn't reflect the chinese economy that well. we had this whole discussion in the last 24 hours about that, so i agree with your point there. you want to talk about apple >> yeah, because actually we have president trump >> commenting earlier today on the efficacy of quarterly earnings the president did, saying he'd like to see companies report less. >> i'd like to see twice, but we're going to see this took place when i had a, you know, the world's top executives, among the world's top executives and the head of pepsi cola, a great woman who is now retiring.
she said because i asked what could we do to make it even better, and she said two times a year reporting not quarterly and i thought of it and it makes sense to me because you know we are not thinking far enough out. we've been accused of that for a long time, this country. so we're looking at that very seriously. we're looking at twice a year instead of four times a year >> in response the pepsico ceo told us. most agree that a short-term view only can inhibit long-term strategy and thus long time investment and value creation. >> i think the important thing here is who could disagree with that statement, of course. >> i think she's also trying to make it seem it's not just her idea only. >> by the way, i was in business school 27, 28 years ago.
we were having this exact discussion 28 years ago. the countries that have gone to biannual reporting, that would be europe -- by the way, you can't point and go it's worked so well for those companies in the stock markets. because the reality is for most investors twice a year is not enough >> and clayton just weighing in releasing a statement and we're quoting here, recently the sec has implemented and considers a variety of regulatory changes that encourages long-term capital formation and preserve and in many instances enhancing key investor preces. who could disagree with that >> that statement basically said anything anodyne, that was a statement that says i'm not going to publicly disagree with trump >> but president trump, you know, likes to get his way and if he has something,
especially, if the whole business community backs him up on this, do you think it could actually happen. >> i doubt it, and the answer is i don't know, i doubt it >> they'd have to have huge amounts of hearings. it's embedded in the sec 34 act. it is in the original act. it was there for a reason because they had problems with individuals not knowing what was going on with these companies. >> here's the reality that for some companies like a bircha hatch away, a lot of these companies that have traded, that don't need to raise capital a lot, these are companies that basically don't worry about quarter to quarter reporting in any case for companies the issue is kind of a red herring if you're a bank though or financial institution it is a much bigger pain to do quarterly
reporting. >> how about changing the way companies report their earnings? how about going to just generally acceptable accounting principles and not adjusted numbers. maybe that would help us understand markets a bit better. i'm just giving you a list of things that bother me. >> no, that's good but when you look at how their reporting, i don't think it's the earnings themselves that cause such an issue, but the guidance if you look in the past it's the guidance numbers that actually move the stock if they're trying to negate the reaction of the specific numbers, i think that's going to double if you go six months instead of quarterly the volatility is going to increase and there was actually an article in the germ of accounting economics that says the cost of capital rises significantly when you extend the period of time between your reporting because the risk concerns go higher so you have to look at the economic psyche of investors, look at cost of capital. there's a lot of things that go
into whether or not that would be a wise decision, and changing the way we do earnings, changing, doing adjusted numbers, all of those things would be more beneficial than going to six month reported earnings >> and maybe making them the short-term solution rather than different earnings reports thank you very much victoria tesla having its worst day sin since february that after ceo elon musk says stress has made this year his most difficult we'll look at who could potentially replace musk if he decides to leave plus netflix spends a ton of money on original content but apparently just a small percentage of users actually watches those movies and shows find out if th's rat aed flag for the streaming giant later on "the closing bell.
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me know. they can have the job. is there anyone who can do the job better they can have the reigns right now. >> so who else could lead tesla? joining us now bob luts and jp who could do a better job? is it fair to say or unfair to say the company is elon musk is that unfair >> certainly the vision for the company has been very uchmuch e musk but the key things that make tesla successful has gone beyond elon musk. it's the idea and motivation for the cars, certainly it'd be an enormous change because there are few ceos as connected to the brand as musk is >> bob, i know you've been very critical of tesla and musk in the past wondering your reaction seeing that interview today and whether he should be leading this
company. >> well, i think elon is tired he's worn-out. he's obviously got some emotional problems he's self-medicating he has shown some disturbing signs of being somewhat volatile and non-stable and i think the right solution for tesla at this point is to move him aside from day to day operations, let him have a four-week vacation and really get himself back into shape. and then appoint him non-executive chairman, exactly the same solution that the ford motor company adopted in the case of billy ford a few years ago when they removed him from the ceo position and made him nonexecutive chairman and brought a professional hard-hitting sound experienced manager in the person of allen and there's no reason tesla couldn't do exactly the same thing. because elon musk is brilliant, he has the vision, but he's very
poor at executing and he's poor at delegating. and he obviously has a little bit of difficulty controlling himself. so what he needs is a solid blocking and tackling, good, seasoned executive to run the operations >> but professor, wouldn't he need to sort of grow up a little and become more emotional mature i admire him greatly, but isn't that what's going to have to happen how would he possibly delegate the reigns everything about him says he runs the company as he sees fit and its his vision he's the guy who dramatically advanced solar batteries, electric car industry. its his vision >> what they want to do is do the vision, do the growth, build the reputation of the company. when it comes to actually executing on the vision they aren't always the best for that.
this is why venture capital firms routinely change over the founder ceos for a professional manager like bob was talking about a second ago i think there are probably things elon would be thrilled to spend his time on other than trying to figure out how to produce x number of model 3s >> given how a lot of this seems certainly to you and the professor and a lot on the outside, it seems kind of obvio obvious. if it seems so obvious what do you think it's the reason it's not happened is it just that mr. musk is very stubborn or do you think it's something the investor base in the company actually wants, for him to stay onboard as the ceo and effectively the coo of the company as well? >> i can't imagine any sound investor who has his money in the company or any independent board member would want him to remain as ceo in light of recent performance. and let's not forget for all the
admiration we have for elon musk for building the brand, pushing electricification, et cetera, we'll probably have to go back to the capital markets for more money. so the company is not being well run. now, i don't know the whole composition of elon's board. but i know that many of them are perhaps not as independent as you would actually like. they're, you know, friends and relatives of elon musk and acolytes and so forth. i don't mean to sound insulting. but it is not like a typical fortune 500 board is constituted. and if they are to honor the fiduciary duty that they have to all of the shareholders, i would say it's high time that they took action. because now you've got an sec probe coming over the somewhat
unfortunate announcement of going private and the funding being secured, which was, you know, clearly not the case and i think in my personal judgment the board should take action and find a ceo. not get rid of elon. keep him as the visionary, the titular head of the company and give him the honor and respect as the founder of the company he deserves but that company needs professional management and it needs it now >> out of time j.p., make a prediction. if elon were to leave the company would the stock go up or down in. >> i think the stock would go up at this current moment stock investors are worried about this company. >> you mean not leave the company completely or still be in charge of some aspect of development? >> i honestly have a hard time of him being completely involved or completely walking away
headquarters >> hey, sara the department of housing and urban development announced today a formal complaint against facebook for violating the fair housing act by allowing landlords and home sellers to use its advertising platform to engage in-housing discrimination the claim says facebook allows advertisers to control which users receive housing related ads based paw pawn the national status, disability and/or zip code facebook then invites advertisers to express unlawful preferences by offering discriminatory practices allowing them to effectively limit housing options. it's worth noting the assistant secretary of fair housing and equal opportunity says when facebook using a vast amount of personal data it collects to help advertisers discriminate it's the same as slamming the
door in someone's face cnbc has reached out to facebook and we will get you that comment. shares basically unchanged, though, right now, bob >> that is pretty broad claim there. it seems they make that claim against anyone who gathers information. heavens, google could probably get the same kind of claim >> i'd be curious the politics of this. because i'm sure somewhere there's a lot of politics of this i don't know how it'll play out. it's going to be interesting the reaction next week this kaulss the banks billions and billions of dollars. >> very interesting story. thank you, seema deere staging a come back. >> what a come back it's been. shares finishing the day up 2% despite missing expectations
why? the conference call. saying overall deere is encouraged by the outlook for the rest of 2018 and the early interest for deere's new technology coming in 2019. here's how one analyst put it. deere employed 2019 is stronger and the outlook would be positive in terms of today's results net salesb equipment sales jumped 30%. margins though were dinged by higher costs of material and frigh freight. the fear that retaliatory tariffs could hurt demands for deere's equipment for now at least that doesn't seem to be warranted. so that had sent shares down over 17% over the past six months deere also reaffirmed its fiscal full year guidance and said it believes the stock's, quote intrinsic value is higher.
that's the reason why they think investors should keep buying back the stock >> we saw harley having to struggle with this as well so your people are able to raise the prices i guess the question is how easy it's going to be for the rest of the businesses in that area to raise prices that's going to be a big issue i don't know how long they're going to be able to keep doing that >> absolutely. and i think they're saying there's no traction in terms of the ability to raise prices in terms of these heavy machinery companies whether it's a deere or caterpillar companies targeting consumers especially in areas where there are maybe bigger more structural issues like harley. different story altogether >> morgan, thank you chip stocks got slammed this week week guidance from nvidia and applied materials adding to the
pain today should you use this pull back as a buying opportunity let's bring in the fast money traders for their take mike, how ugly are the charts on semis? would you be a pier? >> i would say certainly let's take a look at amat first. but it is starting to look a bit cheap here it's trading at about 10 times earnings, and the nature of their business has gotten a bit stable probably 40% of their business is coming from the conventional side and they're adding a lot of longer-term contracts and i think that's a positive. i would say the same thing about nvidia also because this is stock when they have disappointed a week later they've typically done worse that trails by about 200 basis points if you are going to add to these positions you have some time, i think. you don't need to rush in.
>> yeah, i think i agree quite a bit with mike here i think in the long run you want to be in that particular name. but you probably have a week or so before you can buy this on the dip. and really the one thing that i was encouraged by and certainly i'm biased but nvidia is saying their crypto currency mining business is dead but something happened with the theory where they postponed their software mining and they're going to stay with hardware mining for another year at least, that could be another catalyst for nvidia in the future >> near 60% this year, that's what nvidia, said, you're trying to turn it around and make it sound bullish. >> their business doesn't entirely depend on crypto anyway they're basically giving no attribution to crypto at this point. >> that's right. and lot of people were basing it on it earlier in the year.
this is my point >> i totally disagree with that. if in theory it turns around, but if it's not priced into the stock when the it turns people are going to want to buy back into to nvidia. and let's take a look how they finished the day on wall street right near the highs for the dow jones industrial average we moved up in the middle of the day on talks of the china situation. >> talks about talks >> that's a good point, sara 2850, we've been there before. the nasdaq composite eking out a very small gain. the russell 2000 also small gains for the week
>> let's get to some of the other big stories today in our rapid recap. >> markets are stabilizing after yesterday's rally and what has been a roller coaster week for stocks >> deere, it is falling almost 3% lower pre-market after posting a quarterly earnings miss >> pricing hasn't kept up with input costs and that's hurting companies. >> elon much says this past year, has been quote the most difficult and painful of his career >> this has a big psychological dimension. someone has got to help him here because no one can do all this alone. >> shares of apple right now up today. the stock hitting another record intraday high. >> chip rocked the sector, and nvidia leading the drop. >> most of these companies, the amds, micrones of the world are
more attractively valued >> president trump calling on regulators to look into possibly ending quarterly reports >> we have not been thinking far enough out we've been accused of that for a long time, this country. so we're looking at that very seriously. looking at two times a year than four times >> this would shift the endless focus on quarterly expectations. >> between trump and tesla it was a busy friday in august. the highlight of my day and what made the most impact was hearing jim stewart of "the new york times" sit here at post nine talk about the conversations that the times had with him. you know, you sort of felt bad for him i think in the emotional state. and jim kramer was off today but he tweeted musk should take a medical leave. and i think after today the game has changed a bit. it's changed whether he's going
to take this company private but what his mental state is >> i think jim was remarkable in his discussions. great reporting from "the times," and you're right it. it changed the conversation. when you start talking about taking ambien, millions of people take ambien but innuance -- >> didn't roseanne -- >> i think your right. and now we have an additional issue about his general state at all. why he agreed to the interview but cudeose to "the new york times" for a great report. >> time now for a cnbc news update with sue herrera. here's what's happening at this hour, everyone. turkey rejecting the appeal of a u.s. pastor being held there saying evidence is still being gathered in that case. president trump today saying about the pastor, quote, we are
not going to take this sitting down, end quote. the first funeral is being held today for the victims of the bridge collapse in italy four friends their 20s among the 38 killed. four shops today closed in their remembrance. apple saying no data was compromis compromised after an australian teen hacked into their network and the best catch of last night's tiger twins game wasn't made by a player it was basically the grab you're going to see by that home plate umpire he celebrated the home run by flipping his bat into the air, but many gonzalez reached out and he snagged that bat. great catch. there you go you're up-to-date. that's the news update this hour back to you guys find out what's behind an
shopping season, but for some parents it's fast becoming a time of angst for parents with children with allergies. this alarming shortage >> that's right, sara. the epipen is something people with allergies count on in case of an emergency. but this month when prescriptions of it drug is highest heading to the back to school season many are finding them hard to come by her 6-year-old son has a severe nut allergy. and as he heads back to school she needs to stock up on epipens. >> i went to the same local cvs pharmacy i use to fill my son's prescription and this year i was told that the epipen generic which is what nigh insurance covers was not in stock. >> running low on supply >> in my busy pediatric clinic we have noticed that there are a number of patients, for example,
calling in wondering where they can procure their epipens. >> in calls from two dozen pharmacies from boston to san francisco, cnbc was told almost every single one had no epipens or just a few in stocks. mylan says it's exploring options to stabilize supply and cited supply of third party compone. >> in the manufacturing process. epipen isn't the only option on the market it's by far the most dominant. >> the school prefers the epipen because that's what they have trained their staff how to administer >> as hudson prepares to start first grade his epipen is one of his most important school supplies >> and yesterday a new competitor to the epipen was just approved by the fda, the first generic version from teva
tart suiticals we're not expecting that necessarily to alleviate some of these stresses heading back to school >> thank you very much and we also don't know, right, meg, the price of the new one. >> no, we don't. neva has not yet announced the price. analysts are estimating perhaps maybe a 25% discount that's an estimate from david mereset, from wells fargo. >> meg, thanks watch out grub hub there's another meal delivery service on the block and it's valued at $4 billion we'll name names coming up but first netflix spends big money to sign top talent for its shows but its efforts, though, don't exactly seem to be paying off. what could this mean for the future of original content next.
and welcome back a new statement just coming in from house financial services committee on the president's proposal to have companies report earnings twice a year rather than four times a year. the statement in part says, and i'm quoting, i applaud the president's continued efforts to evaluate the impact and cost of federal regulation on legler businesses and intrap entrepren.
>> what we didn't hear is whether he supports the proposal or not that was an anodyne statement. by the way, it said absolutely nothing. that's what politicians are good at >> what they're saying is they support thinking for the long-term. you're going to hear this on the left and the right look at elizabeth warren, she made a proposal this week and it sort of got at some of these issues >> yeah, i still don't know where representative -- is standing >> it still doesn't matter it's going to be up to the sec >> to make a change in law they would have to hold big hearings and it would be very intensive i predict it won't happen. >> this deal comes on other
giants shonda rhymes, an "american horror story" producer all signing with netflix >> although netflix continues to spend big money on original content research from a group called seven park data shows only 20% of u.s. viewing is from netflix's original shows is it worth the big pay out? joining us now to discuss is cynthia littleton, and we get all these headlines about these big deals. do we actually know what programs are most successful on netflix? have we ever seen any break down >> no, we haven't. there's a lot of people in hollywood that would pay big money just to have those numbers. netflix is walled garden system, so they don't release viewership statistics on their shows. i think netflix would say as long as subscribers are watching their service they don't care if
they're watching originals, if they're watching acquired product. as long as the service is sticky and there's enough things on there for people, when they fire up the screen, they want their users to find something that they want to watch >> and isn't there a way to sort of monetize this on a global basis? they have figured this out, wright, presumably is there a point where they're going to say this isn't worth it, and obviously up until now the way they're doing was the right approach >> they're amortizing it that the users is 8 billion worldwide. it is such a broad base, and i think, you know, netflix often says that they want to be -- they want to be very broad-based. they want to have something for everyone when you turn on that screen they want you to find something that you will stick around and watch. that's their key metric. >> do you get it, evan
>> i get -- i don't understand how they make the economics work totally. i tend to be -- i'm platform agnostic, but i like certain amounts of the content that netflix provides my question for ms. littleton is they invest a lot of money across the board on almost all their shows, they have very high production values on everything. they sign these big -- and it seems noo me they're not really looking on a show by show budget basis the way a normal studio would. are they spending too much than what they're getting is my question >> is it true, cynthia, do they not care what the budget is on a show by show basis >> they did actually have a show about a year ago that actually did test the limits of even netflix's ability to write checks in a show that was called the get down and it had a lot of problems during production so it went to an astronomical
figure of upwards of $15 million, and that show actually did get canceled it tested the limits i feel right now they need to put on high qualit netflix, have you seen this great show, have you seen this show, you know, they have shows they import from europe and latin america. it's all about circulation for them they want people to watch as much of their stuff on their air as possible. and right now the market is not punishing them in fact, this seems to be applauding them when they say that their content spending figures are, you know, are three and four times even their nearest competitor like an hbo again, the market continues to applaud them so they feel like their strategy of going from market share and a global subscriber base is the right one. >> well, we'll have to see about that with netflix down another 8.5% this week. >> it's just a matter of time.
at some point, at some point they'll be peak netflix content and it may be a year or two from now. >> you're platform agnostic? >> i am. >> cynthia, thank you. good to have you here. between postmates, grub hub, you might think the delivery meal service is saturated but another service just dbl iouedts valuation for the second time in three months why are you so good at this? had a coach in high school. really helped me up my game. i had a coach. math. ooh. so, why don't traders have coaches? who says they don't? coach mcadoo! you know, at td ameritrade, we offer free access to coaches and a full education curriculum- just to help you improve your skills. boom! mad skills. education to take your trading to the next level. only with td ameritrade.
>> i'm not agnostic in food delivery. >> you care about the food deliverer? >> nice to see you. >> great to be with you. it's a polarizing topic. everyone has their favorites i know i do. it's a big deal, this deal for a couple of reasons. one, the latest $250 million round, which was led by dsd doubles doordash's value for the second time in four months from $1.4 billion to $4 billion now it helps the company compete in a crowded field with competitors like grubhub and uber eats the ceo saying he wants to use it to get into more cities and get more restaurants to sip deals with doordash. >> the goal is really to bring delivery for the very first time from some of these very large establishments to all of their customers. when you, you know, you think about wendy's or chipotle, these businesses have thousands of
stores so, we have to first perfect the operations second, understand how to go to market in each city. >> doordash says it is on pace to expand from 600 cities to 2,000 cities across north america, even with that growth can the company justify its new valuation or is it a sign the space is getting a little frothy a lot of people are asking that question doordash still trails its two biggest competitors in the food delivery space grubhub owns 45% of the market uber eats has 24%. and doordash has 18% >> it strikes me that this is an amazing number they're able to raise that we're a long way from peak delivery to overuse a phrase 6% of restaurant sales >> he told us this morning that only 6% of restaurant sales are delivered, excluding pizza, which is a whole other space there's a whole new world out there and they're tapping into it they want to go into every city in north america. >> i mean, you're apparently
very picky about this. what is -- >> just from someone who doesn't cook. >> understandable. but what is the differentiation. >> the major thing is the restaurants on each service. >> but you as a consumer, as the end consumer, do you care who delivers it? >> yes, because some of them are more expensive. >> some have zero delivery fees. seamless - >> caviar has all the best new york restaurants but it's expensive. >> and it depends regionally, too. i was in philadelphia last year, i was there for many years, they're known for their restaurants. a lot of restaurants use caviar. where i live doordash is really big. >> we could talk about this for a while. >> who knew. >> how many apps do you want to have we have more retail earnings on deck next week. we'll preview those and what's ahead next week.
♪ ♪ build your next big thing to run in more places, without recoding. the ibm cloud. the cloud for smarter business. we've got another facebook news alert. >> they are trying to break facebook break the encryption in the messenger app so they can listen to a criminal proceeding. it brings back a controversial
topic whether companies should change their products to enable surveillance and succumb to government pressure. >> here we go. part of the privacy debate thank you very much. evan, pleasure having you here. >> have a good weekend. >> next week jay powell will delivering a speech. we'll keep an eye on that. >> have a good weekend thanks for filling in. that does it for "closing bell." "fast money" begins right now. "fast money" starts right now. live from the nasdaq market site overlooking new york city's time square, i'm melissa lee. tonight on "fast" apple hitting a record high and it could be at the expense of the f.a.n.g. stocks is this the beginning of the great apple rotation plus the crude crush oil down 4% this week and the chart masters see something that is spelling more trouble ahead for energy stocks. first, we start off with a big story of the day that would be tesla. the stock tanking today after elon musk'