tv Closing Bell CNBC March 11, 2019 3:00pm-5:00pm EDT
and appropriate action so that is the latest on that tragic air crash over in ethiopia. >> as boeing is dramatically paired the losses in today's session and interesting to see where it closes. thank you for watching "power lunch. >> "closing bell" will start right now. ♪ good afternoon welcome to the "closing bell." i'm wilfred frost. >> i'm morgan brennan in for sara eisen january retail sales higher than estimates. we'll get a read on the consumer when we speak with ceo first on cnbc. plus, we are taking you inside south by southwest for a look at some of tech's coolest new gadgets. bit of fun coming up with that story. let's check in on the markets. just under an hour left of trade. the dow is the laggard of the major indices because of boeing. it's paired the losses ian still
down healthy 6%. s&p near its highs of the day 1.4% was the high. up 1.3%. nasdaq leads up the couple of healthy% a healthy percents. >> tech stocks surging on the nvidia deal of earlier today china and indonesia grounding boeing 737 max 8 phil lebeau has the latest phil >> morgan, you heard the comments of secretary chao saying they're closely monitoring this investigation. you have got the faa along with the ntsb over this ethiopia where the black boxes have been recovered. let me bring you up to speed on the investigation right now. they have recovered both of the block boxes. it is a matter of how quickly to get the information from those boxes. one of them was slightly damaged and may slow things down a little bit there are some airlines and countries around the world saying we'll shut down the 737
max 8s until we have more information about what happened in ethiopia. meanwhile, boeing is defending the technology that goes into this airplane. at the same time, when you're looking at the 737 max 8, you heard secretary chao reference an air worthiness directive. there was one last year after the crash in indonesia and clarified the procedures to go through if they encounter certain situations that might lead to the aircraft getting faulty data causing the anti-stall technology to kick in which would push the nose of the plane down it's only certain situations where that potentially, potentially could happen and boeing believes that all crews around the world have been updated in terms of how to deal with that situation. also out with a note today like most on wall street saying this isn't good near term but long term boeing has a huge backlog
to focus on the traveling public has a short memory of catastrophic crashes boeing reports orders and deliveries tomorrow and with regard to the last point, guys, go back to the dreamliner fires in 3013. i remember at the time covering this, there were people in numbers of airports, see the reports saying never going to fly the dreamliner if i have to get on a plane as a dreamliner, the backlog continues to grow. those kind of fears quickly fade away once they determine a cause of an accident and a solution if a solution is needed >> phil, i still don't -- i don't quite understand how it's okay to say, oh, we have rolled out an update instead of instructions so the pilots avoid the sort of auto issues that were coming up but there's still so many question marks on this. >> correct. >> if it were proven that this
was a boeing fault itself, would that be unprecedented in aviation history >> no, no. because i think you would go back through the history of whether it's boeing, airbus, go back before that, mcdonald douglas, aircraft manufacturers while they have improved their safety record dramatically, you can go back through history and find times either whether with the design of an aircraft our with a procedure supposed to be followed when flying a particular aircraft, that they later determined, look, that was incorrect. we noeeded to make a correction there. boeing had to go back and make a mechanical change with regard to the batteries and how they were built, installed and used within the aircraft of the dreamliner that happens, wilf, from time to time. >> thanks, phil. stay right there we'll continue this conversation we'll bring in ivan fineseth ivan, stock still down 6% today.
obviously, still a lot of question marks, a lot of unknowns more will be revealed here and the fact it is pairing the losses and also the fact that some of the key suppliers to boeing like, for example, general electric, which helps make the engine, are trading higher are you surprised to see that? >> no, not at all. usua unfortunately, it is a tragedy i think that the weakness today is a buying opportunity because boeing right now has a 20-year backlog for planes >> phil, how important is this specific plane to boeing's outlook for five years >> huge. huge this is the cash flow generator for boeing they're ramping up production. they're at 52 a month now. they're going up to 57 per month later this year and there is already discussion at some point in the future going up to potentially 62 per month you have 5,100 ordered right now.
it is a plane that is in demand. it is a workhorse for the industry it is a crucial airplane for boeing and look they're not looking at this saying, well, okay, we'll figure out what's going on. they want it resolved as quickly as possible. in determining the cause of the lion air crash and not determined yet officially. >> ivan, you just heard the comments from phil it is a cash generator, important to boeing which, you know, accounts of two thirds of the book toward the commercial piece of the business but in terms of how investors think about this company in terms of the 737 max line but also other businesses with boeing, how would you break it down? >> well, this is the biggest business and the 737 max is their number one selling plane and boeing has a long history of quality manufacturing and quality service. and fortunately, i don't think it's a systemic issue across the
model or boeing planes and unfortunately but when these things happen it allows the company to retest the system, improve the software and operation of the plane so net the -- i think going forward things will become more safer. that's the pattern that we have seen after many unfortunate plane crashes. >> phil, you mentioned that we still don't know specifically what caused the lion air crash, of course. it happened on a same model plane. >> yep. >> what reaction did boeing see in sales if any after that crash? >> oh, they didn't see a dropoff in sales their backlog continues to grow since that lion air crash and that was only in october you won't see a huge reaction of orders placed and moving away. there's discussion of lion air to take the order and go over to airbus but otherwise you haven't seen much of a fallout and nor do we see a dropoff in terms of
people flying. you heard ivan mention this. in the history of aviation, civil aviation, with the exception of 9/11, which was terror related, you don't see people saying i won't fly anymore. 9/11, extremely different situation than talking about here. >> guys, thank you both very much ivan and phil. the nasdaq on pace for the first gain in six sessions currently up 2%. let's send it to bertha coombs for a deep dive on what's moving there. >> thanks, wilf. investors seem to be shrugging off senator warren's advocacy for breaking up the big tech companies, she made that comment this weekend at south by southwest. facebook on an upgrade apple with a biggest gain since the start of the year for a day. on an upgrade from b of a and amazon up.
nvidia is the day's biggest gainer with the $6.9 billion deal to acquire mellanox and that is really seeing the chips moving higher today. they're among the best gainers up for the first day in five but they have done pretty well overall in the quarter wilf, they're -- morgan, at below that 10% decline threshold. they're no longer in correction. back over to you. >> bertha, thank you from the nasdaq. joining us, we have got tobias, chief equities strategist at citi and rick santelli tobias, i'll start with you. obviously seeing investors really kind of buy the dip here coming off last week, the worst of 2019 for the major averages do you expect to see stocks chug higher from here >> we continue to think that a lot of investors miss this kind
of big trade we had. we can talk about last week being down and the prior eight weeks up strongly and didn't take advantage of the weakness of december to kind of step up you tend to sense that the pain trade is even moving higher and on the dips people do want to put some money to work look the earnings expectations have come in meaningfully from where they were in the fourth quarter and probably some potential for upside surprises revision trends have stopped going down >> rick, we have spoken a number of times in the last five to six months the dollar hasn't held above 97 for long when it's crossed above it is that changed now? >> yeah. i think it has, wilf granted it's a down day for the dollar index although not much it's still hovering a quarter cent above that level and a built of an accusation a cushioe given up close to half a cent of
a close to a close perspective but the fact it's holding up here and there's so much negative action outside the u.s., even with some of our numbers a bit softer, just take, for example, a big macro number of japan overnight the february preliminary japanese machine tool orders if you want to kind of get a big grasp you look at these numbers. it was minus 29.3, wilf. the softest since october of 2009 so in my opinion, as long as europe, japan and china, maybe that's a ast rin asterisk with s of trade the dollar is well supported. now, will it continue to hold and es calate from here i would say yes. not in a breakneck pace. >> tobias, i'll put the same question to you. your outlook on the u.s. dollar this year and how's that, i
guess, governing your investment thesis >> it's an important element in the sense that citi's view on the dollar is mild depreciation. i'm not a currency strategist but keep in mind that is the consensus crew on the street and worries me a bit when everybody's on the same kind of path it is really important the dollar has been incredible indicator for the relative price performance of u.s. securities relative to others so if you look at the s&p 500 versus emerging markets, the dollar tends to be a huge influence there. the dollar's rising. s&p outperforms. commodity price is heavily influenced by the dollar and as a result certain sectors like energy impacted by the dollar. so, you know, from that perspective, i do understand it but the dollar's also a safe haven for investors getting -- concerned about troubles abroad. we just introduced, for example, our bear market checklist or indicator, a better bmi than the
body mass index and in that sense right now only 20% of the indicators suggest to be cautionary give kind of a perspective here, in 1990, 69% of the indicators were flashing red or yellow. in 2000, 89% and we're currently 20%. we are not indicating any kind of bear market backdrop for the broader markets and usually if you did see that you probably have a much stronger dollar environment. >> and tobias, this bmi you put in things like earnings growth outlook, et cetera, to get your overall position that you just mentioned. what are the 20% that are suggesting some levels of caution? >> so there are four things let's sacred spreads -- not really the credit spreads but the duration spread, the shape of the yield curve some of the sentiment indicators
easing off but really in yellow opposed to red so we went the prior three instances. the majority of them were in what i would call red or danger zones. four cautionary zones of yellow zones, not the red zone. so it's kind of comforting in that respect and this is not suggesting to get a wobble in markets next month or next month but rather are you looking at a bear market environment? it just doesn't seem to be the case. >> rick, i mean, i realize that treasury yields here in the u.s. ticking higher today but in general when you look at the ecb policy last week, the comments of fed chairman powell over the weebl weekend, should investors get comfortable with interest rates for the foreseeable future >> yeah. that's the conclusion. but the word of caution needs to be applied here. that investors may approach
interest rates that way and they have good cause to but let's not forget that there's lots of printing going on in europe and japan that underpin some of these interest rates and guarantee transactions and negative securitys that are highly unrealistic and in our own country, sent. can change almost overnight and i caution investors to get too come place ent about it. thank you. the trump administration with the $4.7 trillion budget plan for 2020. we'll look at some of the most controversial parts of the proposal ahead. tech and media companies going all out to gain the attention of influencers at south by southwest that's where we find our julia boorstin. >> hbo investing millions of dollars to bring fans into this world of "game of thrones"
shipping in not just the throne but costumes of ireland for 80 actors who have a script over 100 pages long the goal to make the experience as authentic and immersive as possible we'll look at the other experiences in technology here at south by southwest. right after this break so with xfinity mobile
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customize each line by paying for data by the gig or get unlimited. and now get $250 back when you buy a new samsung galaxy. click, call, or visit a store today. ♪ welcome back to "closing bell." just over 40 minutes left of trade. the dow up only 0.6% compared to the s&p's 1.4. boeing is weighing down. otherwise the other 29 stocks are higher but boeing down 6% all sectors of the s&p higher. this song is going to be stuck in my head for the rest of the day. >> i like it. all right. tech and media companies are spending big bucks to drum up buzz at this year's south by southwest festival this year in austin, texas. julia boorstin has a look at some of the hottest demos. >> reporter: the tech and the
marketing experiences we have seen here at south by southwest have been about bringing investors into immersive experiences, most dramatic example we have seen here is hbo's creation of the world of "game of thrones." ♪ ♪ go forth and fight for life >> reporter: hbo clearly spending millions on this interactive experience with 880 actors to impress the people that spread through and get them to spread the world to millions more kicking off a blood drive and partnership with the red cross saying it's already lifting the number of new donors by 40%. ♪ also looking to draw cutting edge consumers here, the first-ever personal drone used for recreational flights. >> whoa. >> reporter: lyft aircraft, no connection to the ride sharing service with a demo of the 15
flights to offer starting this year in addition to tons of virtual reality demos, augmented reality in focus with tools like this one to virtually try on glasses and seeing more robots like the lg prototiles and artificial intelligence like this lockheed martin exo skeleton to give people superhuman strength another big trend seeing here this year, electric scooters, at least five companies this one is jump which is owned by uber. they're all over south by southwest, littering the streets and competing for market share here guys, back over to you. >> and julia, there's a bit of a political twist, as well, this year as there has been in past years. is that something people are embracing towards or would they rather it stay fun and lighthearted >> reporter: well, i think
that -- look there's very big questions facing the tech community here and i think it makes sense they're discussed. i do think we see more political speakers than ever on the stage in the convention center here behind me and senator klobuchar calling for a tax on the big tech companies saying they should have to pay for their use of consumer data then senator warren, she doubled down on her push to really break up the big tech companies and spoke specifically of facebook and amazon and some other giants so i think it makes sense that this year in particular that this would really be in focus and we have so many candidates for the 2020 election year. >> yeah. julia, that exo skeleton is really something but in terms of covering this for years now, in terms of what you have seen, what has surprised you the most this year >> reporter: i mean, i think what's kind of amazing, morgan, seeing the technologies which were very far out, very
futuristic seem to come to fruition this year we were hearing about flying cars and now we see this drone which is getting ready to take flight and take consumers up in the air for $250 to be able to pilot a one-person drone. this seems accessible. and sort of really close to happening. this is the first year we have seen scooters here you see people zipping behind me and the robots are much closer to reality a lot of those robots like in the lg demo, those are about home assistance and connecting your home so i think the future is here and these are the companys that are really trying to sell it to consumers. >> julia, from drones to thrones, can anyone sit on the throne there or a special treat? >> reporter: it was a special thing. i asked very nicely and they let me sneak up on to that throne. it wasn't very comfortable but it felt great to sit up there. >> the power kind of overtakes the need for comfort i think
julia, great stuff thank you very much. >> reporter: exactly. >> julia boorstin for us at south by southwest. actor playing mark zuckerberg, now he's tackling another part of the financial film with a film about high frequency trading. a big pop today for deutsche banc we'll break down that story for you next measure up? a cfa charterholder does. you've worked hard to grow your wealth. make sure you're working with a wealth manager who can grow with you. cfa charterholders have the investment expertise to unlock opportunities other advisors might not see. learn what a cfa charterholdr can do for you at therightquestion.org this is decision tech.
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up next, sales of restaurants and bars climbed in january according to the retail sales report. the ceo of bloomin' brands weighs in. south by southwest political as senator warren lays out the plan to break up big tech. >> it's a little like baseball you can be an umpire a platform or you can own teams that's fine. but you can't be an umpire and own one of the teams that's in the game >> we'll discuss whether breaking up the tech giants could lead to more innovation coming up. i tell clients, etfs can follow an index, but which ones target your goals? it's not about quantity. it's about quality. no trendy stuff. i want etfs backed by research. is it built for the long-term? my reputation depends on it. flexshares etfs are designed and managed around investor objectives. so you can advise with confidence.
welcome back apple just putting out an invite for an upcoming event on march 25th saying it's show time please join us for an apple special event. of course, we don't know what it is yet there's been some rumors over the last couple of weeks getting closer to being ready to launch a subscription tv content service and they did say show time in this announcement. that's getting a birth of buzz
and no confirmation yet. likely some kind of content announcement >> two weeks from today, 1:00 p.m. eastern time and buzzfeed news, for example, roeporting i could be a streaming service meantime, it's time for cnbc news update with sue herera. >> here's what's happening at this hour, everyone. british prime minister may heading to france for face to face talks with european union leaders trying to save her brexit deal from defeat in parliament she is flying to meet european commission president. algeria president announcing a delay to next month's presidential election and bowing to public protest by promising not to seek a fifth term he announced the dramatic moves in a letter to the people. here at home, 28 members of the u.s. women's soccer team are
part of a lawsuit calling for equal pay and better treatment coming after the team looks to defend the world cup title this summer alex morgan and megan rabineau were on the "today" show this morning. >> coming to compensation, we aren't paid a dollar to a dollar that is also very important thing for us is to stay on the soccer field and do what we want to do and our passion has always been and represent our country in the world cup. >> you are up to date. guys, i will send it back downtown to you. >> love u.s. women's soccer and i hope they don't make them play on turf again. >> you guys by far the best. >> yeah. >> you always win. >> fantastic team. they really are. very inspirational. >> well, english team male or female not won world cup in far too long thank you very much. >> you got it. the january retail sales
reported this morning. they came out. that report. it showed sales at restaurants and bars rose nearly 1%. >> despite that positive number, outback restaurant parent is lower today. the company with the analyst day today. joining us from the nasdaq is liz smith, bloomin' brands ceo thank you for joining us today. >> thank you for having me. >> so given the fact we got the retail sales number today and you did hold this event, looking across your different businesses, different restaurant brands, how would you gauge the pulse of the consumer right now? would you say it's still strong? >> yeah. i think we really do see a strong consumer environment out there. we refer to it as the consumer's cautiously comfortable i think that, you know, you look at the macro economic figures and all supportive of a positive consumer environment. >> what about -- what's driving for you the growth you saw
you saw decent comparables seof same store sales including delivery >> yeah. we had a terrific 2018 and we are happy to share our plans for 2019 and it is about what you are saying driving that 360-degree experience in restaurant, across the core concepts and also we are extending the brands beyond into delivery and off premise occasions which are really growing rapidly and a big demand for brands in the restaurant and also when consumers want to enjoy them outside of the restaurant in the home and we have seen a lot of growth in that area. >> talk to me about how you think about off premise long term is it market share grab at the moment to sacrifice margins for and take over the delivery yourself or use the companies popping up everywhere from the uber eats of the world
>> sure. we started the journey about four years ago looking at how the consumer behavior was changing and it is really proving to be an incremental opportunity. we started direct delivery we are the only chain that does delivery direct from the stores and we started this in earnest and will have about 700 stores by the end of the year it is an incremental occasion for us and we are taking an omnichannel approach we will be available in third party and focusing on direct delivery and building that competency and been a successful venture for us. >> liz, it is interesting to hear you say that that's been very profitable. it is not what i would have expected in terms of delivery business and the lack of opportunity to upsell. i guess more broadly, how would you assess the cost situation for the business right now in terms of commodity prices and what that meant for food you have had minimum wage on the rise here in many parts of the
u.s. >> sure. so when you think about we're doing direct delivery. right? we are not paying that third party fee and interestingly a lot of the delivery is done online and that does provide a great occasion for up sell and pleased with the flow through on that on the incremental side and customer side and top line side it's good. on the cost side we see manageable commodity environment. we guided to 2% inflation in the basket this year and certainly we like everybody else is seeing a tighter labor market and those are going up but what we're really seeing for us is that healthy traffic coupled with productivity and modest pricing juf setting the hecosts. >> what about the international expense and opportunity? will you push that and expand further into any new countries. >> great question. as you know, we have a thriving business in brazil
we bought out our partner there about five years ago and since that time, the top line in brazil grown 15% the profits in brazil and constant currency basis grown 10% and see an opportunity to really drive significant continued growth down there. it's a huge market for us. we also see other opportunities to leverage our leadership in latin america to penetrate other countries that have very similar consumer bases we have a strong franchise business in korea. we're going do use that to partner and continue to expand in a very healthy hong kong business we are definitely opening new stores overseas. where it makes sense on a direct basis in brazil. and then partnering with other really strong franchise partners to grow the brand and other markets. >> liz, you're ceo until april 1st. what do investors need to know about your successor
>> he is the right leader at the right time to oversee the next era of great top line growth and great margin growth. dave deno is my partner over seven years on this journey and a tremendous leader and he will be the right leader for this group going forward. i look forward to seeing involved as executive chairman but i couldn't be more proud of this leadership team they are the best in the business >> well, liz, congratulations to you for your tenure and i hope you enjoy ringing the closing bell at the nasdaq this evening. >> thank you so much >> liz smith of bloomin 'brands. just over 20 minutes until the close. we hit session highs and for the dow over 200 points. s&p about 1.5% higher. the nasdaq crossing the 2% higher mark and the russell doing better the dow lagging with boeing's
impact on the index. the white house unveiling the budget for 2020 today. we have details next. later, jeff bezosaddressin concerns of his personal life following the tabloid scandal that filled the headlines. we'll tell you what he told employees, coming up your brain is an amazing thing. but as you get older, it naturally begins to change, causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain
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♪ welcome back to the "closing bell." here's a look at the winners on the dow. the dow's up 178 points right now. apple up 3.5%. coca-cola, 3m and united health all up each more than 2.5% the white house, meantime, unveiling the budget for 2020 today. eamon javers has the details eamon? >> reporter: hi, morgan. here are the top line numbers. $4.75 trillion overall this year the defense spending would increase nearly 5% under the
budget proposal. nondefense discretionary, everything else that the government chooses to spend money on each year, cut by nearly 5%. there is border wall funding in there. 8.6 billion for border wall construction 1.9 trillion in savings overall from programs including some of the social safety net programs of medicare and medicaid over 15 years. over 15 years. white house says that the budget would balance. now, it was expected that this budget would be dead on arrival on capitol hill and speaker of the house nancy pelosi confirmed that in a statement just a short time ago she said, the cruel and shortsighted cuts in president trump's budget request are a road map to a sicker, weaker america. guys, i can tell you that we had the acting director of omb out in the white house press briefing room saying that despite the nearly trillion dollar annual deficits implicit
in the president's budget request here today he says this is a fiscally responsible and common sense budget. he blames folks on capitol hill not going along with the spending cuts that the president previously proposed for those trillion dollar deficits, guys >> eamon, as you said, expected to be dead on arrival. if we could look past some of the individual lines of disagreement which are significant, is there a majority across congress to allow for a bigger deficit and to allow the national debt to keep rising >> reporter: ironically, that's a thing they agree on on capitol hill there is a majority to allow for a bigger deficit and deficit spending, sort of for years to come the question is what it is spent on and that's where the fight is. right? that's why we could see a government shutdown debate not over the fact of deficits at all but where they come and what they're used to finance. that's the real fight in washington so the question is, you know, with the $22 trillion national debt, you know, one of
the questions, long term for the united states is, you know, how much -- what's the carrying capacity of the united states economy in terms of debt overall? you know where do you get close to that number that's sort of an unknown number and there's nobody in washington who's sort of addressing that broader question because short term it's about the political fights like we saw this earlier this year. >> thank you very much for that. speaking of the budget, morgan, you have been taking look at funding for nasa. >> ifr they released more details today. two words. the moon this is the key focus of the fiscal 2020 budget by the civil space agency today according to nasa administrator, quote, we'll go to the moon in the next decade with new technologies and systems to explore more locations across the lunar surface than ever before this time, when we go to the moon, we will stay we'll use what we learn as we move forward to the moon to take
the next giant leap sending astronauts to mars so the plan, a series of small delivery missions this year and then we have new landers expected, robots eventually by nasa, humans by 2028 and really looking to part anywhener aggree with the private industry. here's the budget. half a billion less than what congress ultimately appropriated for 2019 this includes increased funding to support lunar activities. to take cargo and then humans to the surface. 2.6 billion for plan tori science. fully fund the james webb space telescope. 1.5 billion for the international space station and new commercial capabilities in low earth orbit and noteworthy, deferred funding for the boeing-made space launch system rocket the sls and the lockheed made
orion spacecraft but i think if there's one takeaway in terms of comments of earlier today it is really that nasa and we saw this and i reported on this last week and the week prior, the commercial crew program, you know, to bring humans back from u.s. soil to low earth orbit to the space station and it is really public/private partnerships and the push to engage the private sector more and more in nasa's pursuits to do this. >> this focus on the moon, i don't know whether to be excited because all of it is amazing, the idea to stay there and use it as a base to go further or disappointed the moon was 50 years ago. what's been the delay? >> oh, i think it is a little bit of both, right moon 50 years ago and why haven't we colonized it up until now? >> yes. >> here's the thing. other countries are working to get to the moon right now. a lot of experts think china
could put boots back on the moon before the u.s. does so it's disappointing and really speaks to the fact of we are in the new space race and the government is taking notice and we're going to need some innovation and some money to make that happen once again. there's a lot of potentially resources, water , et cetera on the moon maybe extracting those elements for the first -- >> i hope it's successful and all very exciting and we'll see. morgan, thank you. meantime, tomorrow morning, i'll be live at the p&g to talk about the president's new budget proposal the defense piece of the budget with u.s. army secretary dr. mark esper that's tomorrow on "squawk alley" starting at 11:00 a.m. eastern and we'll get the defense side of this budget, all those details tomorrow 750 billion. that is the top line proposed number right now which represents a sizable increase
and again it's one oberf the ar to see battle brewing. up next, shares of deutsche banc jumping. he played mark zuckerberg and now jesse aisenberg is taking on wall street and joins us live at post nine coming up on "closing bell." at leaf blowers.ad [beep] you should be mad your neighbor always wants to hang out. and you should be mad your smart fridge is unnecessarily complicated. but you're not mad, because you have e*trade which isn't complicated. their tools make trading quicker and simpler. so you can take on the markets with confidence. don't get mad. get e*trade and start trading today.
don't get mad. i can customize each line for soeach family member?e yup. and since it comes with your internet, you can switch wireless carriers, and save hundreds of dollars a year. are you pullin' my leg? nope. you sure you're not pullin' my leg? i think it's your dog. oh it's him. good call. get the data options you need, and still save hundreds of dollars. do you guys sell other dogs? now that's simple, easy, awesome.
customize each line by paying for data by the gig or get unlimited. and now get $250 back when you buy a new samsung galaxy. click, call, or visit a store today. welcome back to the "closing bell." stocks near session highs right now. let's check on individual market movers shares of mellanox soaring after nvidia announced it's buying the company. this is the biggest-ever acquisition for nvidia and hopes to boost the data center business and mellanox trading up about 8% invade yeah is helping lead the nasdaq 100 higher. we had the ceo of nvidia on earlier today and the way he said the data center has become the most important computer in the world and no longer starts and ends at the server the xutder in the future to
extend into the network and going on to explainthat data center of the future investors seem to like this today. >> both stocks up healthy. a nod to the quality of the innovation of the tech space in israel, as well. i've got the deutsche banc today. higher today on the reports of tentative talks with commerce bank for options this came after the german government expressed the concerns of a foreign takeover it's up 5% today off an incredibly low base. >> yeah. >> most people actually sort of suggest a deutsche bank commerce bank merger not favorable. they would be forced to do slightly more nationalist service. i'm skeptical on the point that something that the german government favors to come with -- for it to be worthwhile, so many job cuts across the two banks and retail business and
people criticize what deutsche bank isn't succeeding on at the moment, the domestic retail customers in germany are well served these banks are not about to go bust so i still think that the possibly on the table is something international for them to do. ie, apply the surgery rather than domestic but the international bank is there something to do with asset management and the investment bank? i think the bank prefers that. i'm not so sure the government wouldn't ultimately prefer it, as well. >> how much is the conversation and reflection of the macro situation, the fact of slowing growth in europe, you have lower interest rates for lower >> good question both clearly, it is very, very hard for the banks to make profits at the moment with the yield curve outlook and the puts on the table the bigger names to be able to merge. but interesting thing is we're still talking about this merger. is it plausible that boideutsche
bank to merge? even a year ago, no. perha perhaps that's possible today. we are being crushed by the chinese in asia, by the american investment banks and do we still need to have a footing on the map? we'll see what happens it is interesting that both up today even though many think it's not outstanding move for them in its own right. we'll come back with the closing countdown five minutes left to trade. after the bell, a read on retail with earnings of stitch fix. we'll breado tk wnhe numbers an give instant analysis coming up. measure up? a cfa charterholder does. you've worked hard to grow your wealth. make sure you're working with a wealth manager who can grow with you.
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don't get mad. get e*trade, dawg. welcome back to the "closing bell." there's the half screen. very healthy looking s&p, nasdaq out perform the dow today because of boeing's decline. coming off last week's decline and bounce back and gains off asia and europe and helping today generally. up on the s&p. pretty much the high of the session as we approach the close. as i mentioned boeing's decline
on the dow itself has improved throughout the session. down 5.5%. s&p sectors for you, all of them are higher led higher by the likes of tech, energy, communication services, but frankly, nothing tocomplai about there. utilities, the laggard even up .75%. sterling, as well, very strong approaching that crucial brexit vote tomorrow. hearing from the prime minister to see if she secured anything from brussels. >> the strong dollar is a problem. we'll hear the end of the first quarter of companies having a problem with the strong dollar and reversals. we talked in the morning of banks holding back better today russell 2000 holding back. better today semis support good on the nvidia deal we had a dayhere where about 85% of the volume is the stocks
to the upside and not seen that for several weeks now so a real strong reversal. not a lot of news on it. >> by the way, bob, shouldn't be complaining as i know you weren't. s&p up 1.45% at the close. the dow itself up 200 points 0.8% the nasdaq up close to 2% at the close. that does it for the first hour of the "closing bell." morgan, back to you. ♪ welcome to the "closing bell." i'm morgan brennan in for sara eisen. wilfred frost will rejoin me in a moment along with mike santoli, senior markets commentator. here's how we're finishing the day on wall street as stocks settle near session highs with the dow finishing the day up 200 points. 25,651, up .8% despite 150-point drag from boeing after that deadly plane crash
s&p 500 posting its best day since january 30th you can see that right there 2783 up 1.5%. nasdaq composite, a similar stat there. up 2%. led higher by semi stocks. 7558 russell 2000 up 1.8%, as well. here are the stories on the radar for investors. morgan stanley warning the stock market correction may not be over upgrades of apple an facebook fueling the nasdaq rally and a key brexit vote could move the market tomorrow. in terms of what we are seeing here, joining us to talk about the market day, katherine rooney vera good afternoon to you. but first, mike santoli, let's start with you major averages breaking a five-day losing streak how would you categorize it? >> finishing on the highs. whatever happens from here is a very strong buy the dip response and just about a 3% decline of
last monday's intraday high and then three days back today in one bite still stubbornly low bond yields didn't really budge today. it was growth stocks so it's a little bit of a familiar story line of a couple of years ago where it was essentially big, quality, long-term growth stocks with bond yields low is what the market flopped to. >> what is the reason for the bounce today do you think it was attractive valuations >> look. i think mike is right an i'll add to his points that the retail sales data came out very strong and puts to bed at least for the meantime any further concerns with regard to a u.s. economic deseceleration and reti sales reversing a lot of december's although it was downwardly revised loss in
retail sales was definitely good for cyclicals today. >> rath rin, would you say growth stocks are a buy right now? tech and communication services powered the gain today >> look. i think growth stocks have done spectacularly well since december 26th at the very low and rerecommended was to go long growth stocks. s&p up 17% since december 26th fueled by the sectors most beaten up by the principle fears that took down the market, the fed, trade war and u.s. recession and we see more value in other sectors to play catch up for example, defensives. for example, food, beverages and tobacco stock that is we think present nice value. >> mike, there's value out there. what about the valuations overall? how do they they look? >> strikes me as neutral i think we are around the five-year average for s&p.
price earnings ratio looking at the 30-year average, it is not the long-term average and more like the high teens on a trailing basis so i'd say neutral and why the big question is what earnings do and not so much how much we pay for a dollar forecast earnings and where whether they start to stabilize and pick up again from here i think in general that's not holding the market back and much more been around global exposure to various companies and risk appetites i think today showed you last week i was saying it looks like a benign pullback here not seeing signs of credit stress or anything haywire in the system it did seem like today's response said that professional investors felt they weren't sufficiently exposed to stocks and took advantage of the 3% dip. we are still a percent below that level that's thwarted four different rallies in six months on the s&p ian not like it's an all-clear signal today. >> you said that we've got lower
yields and shouldn't spook investors based on that valuation characteristic but it's a slightly bearish move and could be forewarning of a pullback. >> i think bearish if the yield curve compresses from here or if you see the treasury market start to go on high alert about another down shift in growth it's not quite what i see right now. it is really seeming as if everybody's on board with the patient fed. and right now there's not a lot of inflation sensitivity at least in that market. >> morgan stanley says a market correction is likely not over until pressures stabilize and goes on to say that the 2017 u.s. tax cuts likely caused the fed to tighten more quickly and caused the economy to overheat katherine, very much linked with the point we just discussed with mike and the outlook for rates what is your take on that? >> yeah, look. i think the equity premium is enticing and inviting more as
mike just mentioned. that got spooked because of this combination of negative factors that led us to close the fourth quarter with a nearly 20% top to bottom move in the s&p i would say, look, morgan stanley is right in the sense of of course there's correction and of course volatility anything can incite that we can have a bad data out of china or the president come out with a negative tweet with regard to trade negotiations what i'm telling clients is if you're nervous of a correction and preserve the upside, look to, you know, buy puts, look to raise capital and raise cash on the strong upside positions. you can buy risk and ways to protect your portfolio without getting spooked and selling the majority of risk and would be a big mistake. >> mike, talking about margin pressure, there's tariffs and other areas to see increased cost, freight, transportation
and then look at the jobs report of last week it was disappointing number in terms of headline jobs number and wages increased. is that something that needs to be watched more closely right now? >> i think so. you are hearing more chatter about it you look inside the wage number. hourly number, average weekly earnings not up as much i don't think one month's data's going to cause that. but i do think certain sectors are -- if you look at the restaurants, in their conference calls talking about it already but if you look at the stocks that were leading the way today, the facebook, the apple, amazon, netflix, that's not really part of the picture for them because they have the kind of wide and defensivible margins for now anyway. >> i like -- if i can -- >> go for it. >> if i can jump in. i view it as a goldilocks scenario in terms of low inflation. we have a tick up in real wages but looking over history in the u.s., over the past several
decades, to incite core pc inflation you really do need real wage growth to the tune of 4%, 4.5% year over year so virchivirc verging on 3% doesn't worry me we have low inflation and strong economic growth. i still have u.s. economic growth above 2.5% this year and inflation just below 2% and a very good environment for equity outperformance and higher risk names such as i always harp on the emerging markets undervalued aset claset class. >> another area the's getting focus again is the fang stocks, a pair of those with a vote of confidence facebook upgraded to a buy after analysts said the company's transition to a story-based format was quicker than expected and then apple was upgraded to buy at bank of america which lists ten reasons to be bullish
including that supply chain order cuts mike, i mean, i realize we are still off highs for the stocks. >> especially. >> we have seen sizable gains since the start of the year. >> we have apple's more or less kept pace and i think that the analyst is making this sort of calculation that says, first of all, at b of a merrill they downgraded it correctly above $200 in early november and now saying basically the bad news is in the street too negative on the outlook for iphone and we should look for an inflection of six months i don't think that the stock today apple was all that impressive in terms of responding to a forceful upgrade with a $210 price target when the nasdaq was ripping and keep that in mind but in general i do think that these are the stocks with upside to the former highs that analysts try to push. >> katherine, do you like either
of these stocks? >> look. i think apple is still attractive from the perspective of where it is at versus where it was i think if we do get more demand from china rather than what was previously baked in when apple dropped precipitously, i think we can still see more upside so i think that the combination of strong u.s. groewth, probably fiscal and monetary stimulus out of china and give more fundamental push to apple stock and the broader technological -- technology space. >> katherine, we have a couple different senators proposing different details in different ways of going about it but proposing possibly breaking up some of the big tech cap -- big cap tech stocks. it is a longday. don't mind me. how big of a threat is the regulatory overhang and how much should investors pay close attention to that right now? >> i don't think they're paying attention to it right now,
morgan, because this is a lot of political posturing and radical ideas to win the primary so while you do have some senators, i think you are referring to senator warren talking about break-up of the big names. i don't think that that's going to become really a threatto th markets or they're going to internalize that but if this candidate or if this was touted further or became a candidate i think that would put significant pressure to the downside on, for example, the banks, on tech, on some of the names that have been cited but specifically heavier regulation, more government hand would put downside on risk and specifically on these asets we are talking about. >> katherine, you mentioned china there as a factor. of course, that impacts apple and the broader market and china stimulus s. the stimulus more important factor for their outlook and apple than the trade talks? >> i think china's so critical
in terms of demand for apple products and can't be ignored and trade talks are number one that's what i would contend really drove the downside surprise to the 4q is real risk to trade negotiations and i think really optimism is pretty baked in at this point i recommended end of last year with chinese equities and up tremendously so a lot of the optimism is already baked in were we to get a further shock or something really surprising out of china then that would carry a heavier weight because i think the optimism is baked in to the reality which will be some trade accord between the u.s. and china. >> okay. we have an earnings alert on stitch fix and we have the numbers. >> the online retailer up about 10% after hours here on big earnings the top line $370 million versus 365 expected and the actual eps number 12 cents a share better
than the 5 cents that analysts were expecting active clients, 3.0 million users, better than the 2.95 million that the street was looking for and that's a big reason for the move although no guidance yet so watch out for the 5:00 p.m. conference call for guidance numbers for the next quarter >> eric, thank you very much for that had a good day, already during the actual session and well off the highs of last year above 50. >> yeah. a tremendous run after the ipo and then subsequent quarters had a little bit of a gut check and still a heavily shorted stock. about a third of the shares short and a battle ground every quarter and it looks like it's not that big of a market move and in a quarter of nobody really knows of anything happening with consumer spending on the downside they seem to beat numbers. >> certainly is a momentum name and it's up 8% after hours speaks to --
>> i think the options double that. a crucial brexit vote coming up wilf, you have been watching that one close. >> i have indeed mps due to vote again tomorrow on the brexit deal the pound traded between 1.26 and 1.33 this year the main swing factor whether or not a no-deal hard brexit is more or less likely. if may's deal fails then the government will offer mps votes to approve no-deal brexit on wednesday and if that fails to delay the exit date on thursday. sterling would likely rally if the deal is approved or if the brexit date is delayed because did former rules out no deal and then latter delay no deal. and can sterling to fall if no deal is approved may is travels today due to speak roughly 45 minutes time. hoping to announce a game
changing concession from the eu to improve here deal if she doesn't do that, in all likelihood to lose the vote tomorrow and the british pound is up today on hopes that she'll deliver something in the next 20 minutes or so but the math for her deal still looks pretty tricky. >> it is an action packed couple of weeks. >> i think the interesting thing with this 18 days left is so many times we said is the definitive week for brexit only definitive if the deal passes and doesn't look like quite possible to extend the purgatory of recently even further. the pound today, up a percent and still in the middle of the range and not like it has a real kind of key idea of which way we go >> katherine, there's a number of ways to play out. what we have seen is certain headlines and votes along the way have actually had ripple effect on markets here
how are you gaming that out? >> well, i love what was just said there purgatory. i have used that term, as well i think it is purgatory and continues to be if we get an extension and likely only three months or so and extends uncertainty weighing on the economy so i don't think we get a deal if we do, it's an extension and maybe a deal but the scenario that i'm looking at, morgan, is a hard brexit and i'll recommend going aggressively long british assets in what i expect to be a collapse in the markets because i do think that the uk is going to be devastated over the long term and will see an opportunity to buy at good value at that point. so that's what i'm looking at, that's what i'm giving to the investors and i think that's going to present a very attractive buy opportunity over the course of the next couple of months. >> katherine, what do you think the pound's level would be or the ftse's pullback would be in
the event no deal happens and that you'd be happy buying at? >> that's a great question it depends on how bad it gets. there's a price for everything the bank of england said that the economic retraction would be 6% to 8% i think that's overest mailing it we're thinking more of 1% to 2%. 2.5% so it depends on what the market prices in and if it does price in the 6% to 8%, we could get more than 20%, right it is not unexpected and expect the uk to plummet and equities to drop like i mentioned in that range. possibly more. at that range, i would be expecting to buy and if it goes beyond that even more so so it will present an attractive opportunity. i think over the long term of course, there's guys that's skeptical and perhaps it will take years to recover really but i suspect it will be shorter in the time frame with regard to the recovery.
>> thank you very much very interesting there. >> my pleasure. up next, boeing shares with sharp losses we'll speak toa former pilot about whether this could be a coincidence or a bigger problem with the jets. and senator warren doubling down on her proposal to break up big tech companies find out what could happen to tech innovation if she gets r he way later on the "closing bell." the future of technology investing
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welcome back shares of boeing down sharply after another deadly crash of the 737 max 8. this time in ethiopia. second crash of the model in less than six months the faa determining that the model is air worthy. but should fliers be concerned about the safety of these planes joining us now is les arbin retired captain, contributing editor at "flying" magazine and author of "paper wings." thank you for joining us. >> my pleasure. >> how often does a new plane, a new model and a new iteration of
it crash out of the skies? >> well, not at all. let's put it that way. boeing had some issues with the 787 but they were just minor issues, at least that could be rectified. this is unprecedented to happen. you don't see it >> what about when it happens twice and they both happen so soon after take-off? >> let's preface this discussion with the fact that right now, yes, there are incredible similarities to it but the investigation, field investigation, is still in progress there indeed could be other causes for this particular tragedy. that being said, we are drawing parallels to the lion air crash back at the end of october of last year, and, you know, that was not tragedy that was caused they think by a faulty system. >> les, if the faa determines
that the model is still air worthy and other countries china, ethiopia, indonesia grounding these planes, at least for now until we know more, are they right to do that? >> well, i think they're reacting with an abundance of caution. here in the states, we have an incredibly experienced bunch of the united states -- a bunch of pilots with a lot more time on average than the asian countries i'm not trying to disparage the asian pilots they're great colleagues of mine but they have less experience. that doesn't mean that this situation couldn't have overwhelmed the seasoned pilot but maybe the reason to halt the flights of these aircraft until something substantial comes out to determine the cause for these other countries. >> les, one of the selling points i guess initially of this
model by boeing was to say that there was not going to be -- it was not necessary to have a ground up retraining of pilots, correct? was there a way in which they tried to get the model out there without going through what might be typical of a sort of training round? >> well, every new variant of any model airplane is going to have some differences and we call it differences draining apparently boeing did not think that this was a substantial enough difference to inform pilots about many airlines did not have this. this disturbs me didn't have the description of this particular system and what it would do. so when the airplane reacted the way it possibly did with lion air at this point in time the pilots didn't know what they have and they were fighting something at a very low altitude, became a bucking bronco they couldn't settle down there's a remedy to the situation. back in the days of the
dinosaurs for boeing run away trim checklist was always part of the procedures. as it is now but which means you disconnect the trim switches which by theory boeing says should have stopped that airplane from doing what it was which was saying i'm heading to the ground because you put me in a stall. aerodynamic stall and the faulty sensors may have provided them with faulty information. and they were wrestling this situation with multiple warnings, both of visual and with oral warnings and not sure how to analyze the situation or what they exactly may have had because i can guarantee you these ethiopian crew knew of the lion air accident, had their checklist revised appropriately and still we have this tragic situation. >> yeah. les abend, thank you for joining
us today retired pilot, contribute or the at "flying" magazine it's been ten years since the start of the bull market up next, we'll break down the charts to see if there are signs that stocks are starting to look overvalued. pln elon musk with a deadline to exaiwhy he shouldn't be held in contempt of court the details coming up.
china and the fed have been big drivers of the market sentiment this year. could earnings guidance be the key to where the market is heading next mike santoli with a chart. >> i have two charts for you the first one is on that earnings trend this is the fact sense consensus earnings sometimes the market works like it's supposed to with earnings peaking in late september. the estimates for this year have slid to be about down 5% to 6% from this high right here. the s&p 500 down about 5.5% right now as of today's close. this is what the bulls are looking for. flattening out that slope has calmed down it stabilize a little bit. this's the good news you like to see it inflect higher or companies beat the estimates. look at the next chart and basically shows how much the market right now is willing to pay for these expected earnings.
this is over the last ten years. here you see the depths of the bear market. very, very cheap we have trended up and right here we were knocked back from the upper bound here which is the five-year average. this space in here is when the market is pricing in that big jump from the tax cut. so it seems as if as i was saying the valuation looks roughly and to hold the valuation you'd probably need the earnings estimates to stabilize or get better. finally a thing to point out is we did nudge above these levels in 2016. wilfred knows i have been harping on this 2016 analogy an earnings recession or thereabouts and lifted out of it until we got traction on the fundamentals. >> why do you say the fact of the five-year average means we're priced neutrally when we are significantly above the 10-year average? >> arguably the returns you got when you bought at these below
average levels were very high so you have a suggesting of the market undervalued in the first half of this and from a longer term perspective of 30 years it is roughly neutral and a good point because forward returns from here at these valuation levels are not guaranteed to be that great over ten years. >> mike, thank you very much mike at the telestrator. time for a news update >> thanks. here's what's happening at this hour, everyone. nasa administrator speaking at the kennedy space center praising the president's 2020 budget for funding critical projects including going to mars >> what we are trying to do is prove capability, prove technology, retire risk, make sure that what we develop is not a dead end in fact, has capabilities of being utilized on another world.
that other world, of course, being mars the democratic party has selected milwaukee to hold its 2020 national convention choosing to nominate its challenger to president trump in the key battleground state of wisconsin. the midwest city selected over houston and miami. the gop will hold its convention in charlotte, north carolina. iranian president meeting with iraq's prime minister in baghdad where they discussed relations between the two countries. rowhani's three-day trip to iraq to solidify ties between the two former enemies you are up to date that's the news update this hour i'll send it back downtown to you. >> sue, would you do it? would you go to mars >> no, i'm a chicken i would not. no bill griffeth would. i know he would. >> really? >> yes, yes. right, bill? he's nodding yes >> i wouldn't do it. i'm not interested in going to mars low earth orbit for me.
>> i would but it needs to be five or ten years into the cycle. >> not the first. >> when you can return. >> exactly. >> all right. >> see you tomorrow, guys. >> going to stay thank you. up next, instagram's co-founders respond to senator warren's calls to break up big tech. he played facebook ceo zuckerberg and now jesse eisenberg is taking on high-speed tdi ithrangn e latest film he joins us later on "closing bell."
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tech gadgets and product demos respected the only things in the focus at south by southwest this year. senator warren speaking out about breaking up big tech and instagram co-founder responded to that proposal >> that opportunity to do what you do best. to come up with a great idea, to work your heart out to make it happen to be able to compete on a level playing field is taken away by these platform giants. so my view is break those things apart and we will have a much more competitive, robust market
in america that's how capitalism should work. >> what surprised me is generally the policy is like all tech should be broken up and feels to me not nuanced enough and it shows me that the understanding of the problem isn't there. so i think it's going to take a more nuanced proposal but my fear is that something like a proposal to break up all tech is playing on everyone's current -- the current, you know, feeling of anti-tech rather than doing what i think politicians should do which is address real problems and give real solutions. >> let's bring in david garrity and scott berg good afternoon to you both scott, i'll start with you obviously a lot of focus on regulation and whether lawmakers are actually here in the u.s. are actually going to put pen to paper in terms of policing some of the big cap tech companies. after the comments of senator
warren, what do you think? is it possible >> well, i would agree with the instagram co-founder's view is there's details that ultimately need to be worked out. so many of the applications, whether it's the company she mentioned or even larger companies like an oracle or sap thrown in there, so many of the technologies are integrated at the core and deliver significant value to both individual consumers and corporate customers. the's detail that needs to be broken out to actually achieve some of those high level goals >> david, clearly some of these companies have huge amounts of market share within the sort of sub sectors of the market they operate but competition also requires the consumer to be getting hurt. are consumers getting hurt >> i think consumers have been hurt and operated here under a model where consumers given over the data we know that there have been concerns raised. some of the companies clearly facebook amongst them not been
model se model citizens and on a global basis, the regulatory environment is changing as a result of the global data privacy regime that went into effect of may last year so we are operating in a situation where there needs to be greater supervision. leading to a point of companies broken up? it might be possible but we also at the same time as politicians look at developing economic competition policy we do need to be mindful of the fact we operate in a more global market and the united states has a large competitor in the form of china who has a government-led technology sector that's looking clearly to take leadership in emerging technologies between now and 2025 so as policy and regulators get to work different realities need to be taken into account. >> scott, one thing you can normally infer when a politician
makes a case like this is it's popular. coming up with this proposal because they think it will resonate and with folks across the political spectrum i wonder if it means a chilling effect on the big companies doing additional acquisitions or anything else you think the companies might have to reassess. >> so we think it's too early to necessarily make that leap obviously, if these are issues that get pushed further down the road in terms of maybe further along in the presidential campaign or maybe larger grassroots efforts might be an opportunity there but we don't think it slows down m&a in the short term at least. >> david, would you still as an investor be looking to buy some of these names or does this put a chilling effect to use mike's words on these stocks and owning them right now >> well, i would say certainly given the way things are made up now on capital hill with the
senate being clearly held by the republicans, the possibility of this becoming law is very thin until we get into the 117th congress in 2021 so there's certainly an opportunity here for industry to further consolidate but i would say this could be a chilling effect and do note as mike might have noted earlier technology led the s&p 500 off the bottom back in march of 2009. technology is the leadership sector for the stock market as a whole and, you know, to the extent that the storm clouds are coming, you know, investors might think as we get further towards the election, take time money off the table but could be a good year for tech. >> certainly they led stocks in the broader markets higher today, as well thank you for joining us today. up next, amazon founder jeff bezos addressingthe employees
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numbers to examine investment opportunities firsthand. like a biotech firm that engineers a patient's own cells to fight cancer. this is strategic investing. because your investments deserve the full story. t. rowe price. invest with confidence. welcome back here's some of the other stories on the "closing bell" radar today. care.com shares falling today after an investigation by "wall street journal" found numerous instances where cavegivers accused of commitling crimes while caring for children or
seniors, even found some daycare centers licensed wh centers not licensed when they were supposed to be. they do a preliminary screening and not a full background check and doesn't verify credentials and offers screening packages which can cost up to $300. the stock fell about 12.5% today. it's a read i urge folks to take a look at. it is part of the bigger brewing debate of tech companies and the roles they play in being the platform versus the responsibility they have for the content that's on that platform. >> the thing that's particularly surprising and disheartening is can pay extra for a proper background check and an admission that the check is not sufficient and opens a can of worms for who you feel is responsible. >> probably explains why the stock went down and people think that the business model is risk. next story, despite the
headlines and impending divorce, amazon chief bezos isn't losing focus on the day job and is reassuring the employees after an internal staff meeting and said i'm as engaged and focused on amazon as ever. i still tap dance into the office and overall said that's great to hear. >> i would love to see him tap dance into the office. >> i liked i get to live in the future with this job that's a fun way to think about the job. >> he kind of does, as well, with all of his work endeavors full story's on cnbc.com. the netflix hit tidying up with marie kondo inspired many to clear out the homes of unnecessary things and this has sparked a donation frenzy and it is inundating them with massive
quantities of junk including dirty clothing and broken appliances. >> i love that you picked this story. >> this is -- first of all, top of mind. maybe decluttering going on in my house i'm asked to watch this show and i have not done and also i have brought things to a thrift shop and felt sheepish about it i wanted to drop it and get out of there and may reject it or have no room for it. >> i have just recently moved and the clothes i took to a charity store and the rest i didn't bother. i don't think anyone wants this. >> i was amazed of the numbers in the story do they back it up with the data yeah up 20% and 30% in january when it went on netflix. >> a decluttering guru is causing, you know, is causing costs to rise at thrift shops across the world right now. >> you only move clutter you don't declutter the world. >> true. coming up next here on "closing bell," jesse eisenberg here at the stock exchange to
discuss his latest film and whether he ever gets mistaken for zuckerberg the short list? yeah, i'm afraid so. it's okay. this is what we've been planning for. knowing what's important to you is why 7 million investors work with edward jones. a cfp professional is trained, knowledgeable, and committed to financial planning in your best interest. find your certified financial planner™ professional at letsmakeaplan.org. find your certified financial planner™ professional what do advisors look for don't just track an index, help me meet a client's need. is the fund built to sell or built to last? etfs are only part of a portfolio. so make it easy to explain. give me a quality fund that helps me get clients closer to their goals. flexshares etfs are designed and managed around investor objectives. so you can advise with confidence. before investing, consider the fund's investment objectives,
get an edge on high frequency trading. it opens in new york and los angeles this friday and in select theaters nationwide on march 22. joining us here on set at post nine is one of the stars of that movie, oscar nominated actor jesse eisenberg. thanks for joining us. >> thanks for having me in this unusual building. >> a building central to your movie. >> yes, yes, yes also a building i think no one in my family ever expected me to walk into. >> in light of that, talk to us about the movie and the research that went into it in terms of getting ready for the character that you played. >> it's the thing when i read i assumed it was a fantastical idea you guys probably read "the flash boys," there's some of that stuff in there of these guys to build this line underground. i don't know what the terminology is because you guys are experts, but to get information a millisecond faster than everyone else
it's interesting, because most movies you see that are about wall street are taking place in rooms like this or in offices around the corner, but this one takes place in swamps and cutting through mountains and going door to door asking people for a four-inch strip of their land to dig. >> it's interesting hearing you talk about it and about the stock exchange does that mean there was no element of actual going in to become a trader to prepare and when you do new roles, we talked in the tease about your roles playing mark zuckerberg. did you immerse yourself in that >> my main concern is to bring enough emotion and humor and human element to a movie so an audience could be possibly derive details about financial stuff so it's less important to be an expert in what you guys are experts in and more important for me to humanize this complicated story of this complicated financial transaction. >> and they're trying to get the
slightest edge, but as outsiders, right >>yeah. >> it's not like the guys inside have the special information to tell you how much wall street has changed, in the movie "the grifters" they say they can delay it by seven seconds. now it takes how long? >> it's 1/16 of a second. >> as somebody who comes from an artist family and we're all socialists and everything, so apologies. but it's interesting to me to learn the lengths people go to to do something that produces nothing because they're not -- there's no end product or any -- it's not helping anybody except it's creating wealth, but for a very small group of people after they would build this line, the goal is to extort companies and say if you're not on our line, you're basically going to lose. >> you also played mark zuckerberg in "the social network. facebook in the news with all the privacy scandals, what do
you think of that company and have you ever opened a facebook account? i remember reading when you were doing that movie you hadn't. >> i opened a facebook account for like 30 seconds when we were doing the movie and i got an e-mail saying -- this was like ten years ago. i used a fake name, fake address. i got an e-mail who said we think you should be friends with this woman, who was my sister's friend and i immediately shut it down and never got back on. >> do you ever get recognized in the street by people who think you're actually mark zuckerberg? has their reaction changed >> that hasn't happened in the last few months that it's been in the news. when the movie came out, i think because he wasn't as famous as he was now, there was like some confusion because people saw ads and didn't know what they were seeing but no, now -- of course i'd rather be recognized as him -- well, maybe not now but maybe i
could walk in and get a loan much more easily. >> jesse, thanks for joining us us here stock exchange as we said "the hummingbird project" out in new york and los angeles this weekend. up next, a deadline for tesla ceo elon musk to respond to the s.e.c.'s contempt of court complaint is fast approaching. we've got those details straight ahead. ector. it's about technology transforming every sector. ♪ at pgim, our bottom-up approach uses a technology lens to identify long-term winners. from energy... to real estate... to retail. finding such opportunities for alpha is the true value of active investing. and around the world, you have a partner in that pursuit. pgim: the global investment management businesses of prudential.
welcome back elon musk has just hours to go before a deadline responding to an s.e.c. complaint. phil lebeau has the details. >> he has about seven hours before he has to answer. that's the deadline given by the court for him to answer a complaint by the s.e.c they want him to be held in contempt of court. with that midnight deadline, that's when the judges said, look, if you're going to answer why you should not be held in contempt of court, file it b midnight tonight this goes back to the tweets that were sent out on february 19th he sent out one saying, look, we think we're going to make 500,000 vehicles in 2019 a couple of hours later he clarified it with another tweet saying i meant to say that the estimated total would be closer to 400,000, not 500,000. and that has the s.e.c. saying,
wait a second, are these preapproved, as was the agreement with the s.e.c any of these financial tweets, anything that might have market implications for tesla must be preapproved. that's at the heard of this issue. we're going back and showing you this because that big sell-off in tesla shares, that's when all of this came to light or at least was pushed to the forefront by the s.e.c we'll see what elon musk has to say when he files his response in court. >> he doesn't look like he's tweeted since march 8th, which is kind of interesting here. the other thing real quick, the u-turn in terms of tesla, some cars, prices rising, the fact that they look like they'll keep half of their stores open? >> this gets to the heart of the criticism that critics have of te tesla. they need an operations chief. you've cut prices, now you're going to boost them back up, cut some stores, add some stores this is what some people say is emblematic that needs a coo, if
you will. >> phil, thank you very much for that 15 seconds left, mike, great day for the markets overall. >> we've got to see if there's some follow-through. we're back to where we were last tuesday, so no real harm in this its dip so far. >> thanks for joining us we look forward to your defense related interview tomorrow but that does it for "closing bell." "fast money" starts now. "fast money" starts right now. live from the nasdaq overlooking new york city, times square, i'm melissa lee. check out shares of boeing managing to pare some of the losses after a second deadly crash involving one particular model. we've got the details on that developing story. plus some of wall street's surging stocks are heating up. the nasdaq was up 2% today having its best day since january 30th