tv Closing Bell CNBC March 15, 2019 3:00pm-5:00pm EDT
pay someone to figure it out for you. >> who knows the ins and the outs. >> be like melissa lee one day. >> whoo! thank you for watching. >> have a great weekend, everybody. "closing bell" starts right now. ♪ happy friday, everybody. welcome to "closing bell." i'm sara eisen. >> i'm wilfred frost it's a rough week for facebook the stock falling some 2% so far this week and today on a slew of negative news. we have executive editor cara swisher to break it down. tesla also falling today the company unveiled the new model y suv last night is the tesla hype waning an analyst took it already for a test drive. on the markets, set to cap off a pretty strong week with gains across the board
we have really lifted nicely throughout the session with the dow up 153 points. or .6% nasdaq on track for the best week of the year of 1% gain today. so we are looking strong going into today got a mixed batch of economic data and the markets lifted. >> absolutely. up 4% for the week as a whole is the nasdaq let's dive boo the chip stocks first of all soaring today. bertha coombs at the nasdaq with more on that bertha >> chips the driving force in tech broadcom's earnings sending the shares to a new historic high and the forecast for a second half momentum providing a lift to the sector today. cree with a 52-week new high lam research with a boost on an isi note of investments from
samsung and nvidia up got the rally rolling. large cap fully sox index up 30% from the 52-low at christmas, within 5% out historic high up 6% for the week, sara. >> bertha, thank you. next week investors watch to see if the federal reserve will hike interest rates or leave them unchanged and what they will sabt it growing number of firms on wall street predicting one rate hike this year and some saying. jpmorgan joining in out with a new note saying it may not come until late 2020. joining us now to discuss is michael faroli so, michael, you guys are finally catching up to the market with zero rate hikes why did you change your mind >> wef >> we have been of the opinion that fed wants to see inflation and gaining confidence given some of the speeches we have been hearing from the fed, so we
think their reaction function for lack of a better phrase is shifts in a direction whereby they want to see inflation firmer than the past few quarters. >> to sara's point, where do you think the market is already? if next week after the fed meeting the dot plot suggests zero hikes, will the market be surprised or expecting that? >> i think expectations plit between zero or one rate hike for the dots for next week for 2019 if there is a hike penciled in that might be a disappointment and may show the fed is not catching up to the market. the market we should keep in mind has a price cut scheduled for next year. i think if the fed is accommodative here growth should continue to be above trend and eventually will get us to another hike and takes a while i think before we see that growth translate into higher consumer price inflation. >> odds are rising that it's
coming this year, mike we have a 25% chance of a fed rate cut by december what's that about? >> that's right. i think the market probably is not sharing -- maybe more down beat on growth prospects or heard something from the fed i don't think the fed was trying to say there's been a big shift of fed rhetoric and i think that's more toward a pause rather than a cut. i don't think they sound particularly worried about growth and i suspect the statement after next week's meeting will continue to sound relatively up beat about the economy. so the market i guess just has a different view on risk right now. >> michael, what's your expectation for gdp growth for the year ahead and where would it have to sort of drop to, the tracking number at least, for the fed to cut in your expectation? >> right so we think growth this year just under 2%. we're obviously starting the year off with what looks like a
bad first quarter and doesn't help the year as a whole in our opinion that would still be above trend growth, growth pushing the unemployment rate down the fed has a bit more optimistic view of trend growth closer to 2% we're closing to 1.5%. a simpler way to think of this instead of gdp terms is payroll terms. if job growth below 100,000 then i think -- and on a three or six-month basis and the fed would cut because we are growing below trend. if job numbers continue to be in the mid-100,000 number on average that suggests the job market is still tightening some an kind of perhaps the easier way to look at where the fed reaction could lie rather than gdp terms. >> even today, we have weak
manufacturing numbers. very weak new york in particular empire numbers and then consumer confidence for march is rising and we have a record number of job openings if you add it all up, does it lead us to a soft landing? >> i think -- no i think the economy looks okay obviously q1, the government shutdown doesn't help, weak december retail sales number but i think as you look now most indicators outside of manufacturing look like they're doing okay and the service sector of the economy over 80% of private activity seems to be doing well as you mentioned, job openings are moving higher, layoffs are moving down and confidence is coming back now that the shutdown's behind us and look at the big pieces of the economy which is service sector and consumer spending and look like they're doing okay even though we have patches of weakness. mike. >> michael, thank you for joining us. >> thank you. shares of tesla trading lower today after the model y
crossover. phil lebeau has a look at how wall street reacted. phil >> reporter: and, wilf, the reaction of wall street has been, okay it's not much dimptd than what we expected. they rolled out the model y at the design studio last night in california and had a lot less energy than we see when elon musk shows us a new model. it will go on sale first deliveries we should say will begin at the end of next year. price range -- the base model coming out in 2021 starting at $39,000 up to $60,000 for the performance version. emanuel with a note saying we found the event somewhat underwhelming. brian johnson at barclays said timing of late 2020 less aggressive than we thought but still may be a stretch and then you have the reaction of adam jonas of morgan stanley saying model y likely to cannibalize
the mod 'em 3 in our opinion people said that the model y looks like a slightly bigger version than the model 3 and mention they're taking orders for the model y but it's a $2,500 deposit not $1,000 and unlike with the model 3, remember, the night of that event they said, look, we have tens of thousands of people with reservation there was none of that from tesla last night they said here it is and we will have it to you by the end of next year. >> so is the hype machine broken he didn't get a pop from the tweet when he teased the event. >> reporter: i don't know if the hype machine was broken. he was more subdued. look this was a nice vehicle and it might be wildly popular but there was not a whole lot of energy and razmataz and reading
the reviews of car aficionados, most everybody said it looks like the model 3 only a little bit larger even one person referred to it as a hatch back but tesla says it's a small suv >> yeah. the one he is getting out of in the image at the moment looks very small phil, what do you make for the timing of the announcement to the people saying it's been brought forward in order to take the attention off what might be a tough quarter for sales >> he did announce more than a year ago to unveil the model y this march so they did put this marker out there long before a lot of the troubles have popped up over the last six months for tesla. there is the question, however, wom wilf, whether or not by showing this and the price point and looks like the model 3, will it cannibalize sales and people saying i'd like a tesla. wait a second. why don't i hold on and wait a little bit and get the model y
and extra space an i'll get something that's closer to a crossover utility vehicle. >> phil, while we have you, also got to get your take on the latest with boeing up right now. started did day down still on pace for big losses this week. what are the latest developments as it relates to the company and what is the company saying about it >> well, the reason the stock is up today is because there was a wire report out of france where they quoted sources who said, look, there's a software patch fixing the problem with the 737 maxes in terms of the anti-stall technology and whether or not that might have contributed to these accidents and that will be ready within ten days. we reached out to boeing and they said, no, no, no. we have not changed our position it is still the expectation to have this ready in the coming weeks and left it open ended keep in mind, guys, that the investigation is just beginning. in fact, three members of the ntsb arrived in france late yesterday. they're just starting to look at
the flight data recorder that's damaged, remember the question is whether or not they can actually do as much of the investigation as they're hoping to do and this 737 while it's grounded, boeing will not be able to do any deliveries until they have a fix in place the bottom line is this. if you compare this to the 787 dreamliner, they have to find the root cause and say to the faa we think we have a fix an the faa has to certify it. this won't happen overnight. >> on that point, the notes that have come out, what do you reckon the market priced in in terms of timing before the ban is lifted if it is six months, is the stock got that in it yet or one month what is the sort of swing factor >> well, estimates are all over the map in terms of it might ultimately cost boeing in terms of cash flow and what the focus is on, wilf. the 737, the cash flow generator
for boeing and this is a company with $15 billion in cash flow and a lot of that is coming from the 737 line the estimate that a lot of the analysts say we think $500 million a month. free cash flow so let's conservatively say it's three months before we can start doing deliveries again you are looking at a billion, billion for an in terms of financial impact an doesn't get paid from airlines until they deliver a plane. even though they'll continue building these, they're not delivering them. they're parked on a tarmac somewhere in washington. >> and they're not shifting production, right? they're just going to pile up there. >> correct well, in order to stop production, that would create a huge nightmare logistically with the supply chain so they're going to continue building these at the rate of 52 per month which i know people say why build them if you don't know for
sure the fix if it's a software solution, you can did back to the airplanes that you have built. it takes sometime but you can go back and then get them certified, fixed and then delivered to the customers when they have a solution in place. >> phil, as always, thank you very much. phil lebeau. after the break, a solid week for stocks with major averages posting gains we'll ask chief investment officer whether the market is heading for new highs. plus shares of facebook falling as key executives head for the exits. kara swisher here to tell us why it's been a biblically bad week for the social media giant we want to hear from you always reach out to the show on twitter, facebook or send us an e-mail the "closing bell" will be right back ♪
♪ welcome back to the "closing bell." we have around 45 minutes left to trade just under that. the dow up half a percent over 117. the high over 200. so we have pulled back from the highs of the session which were a couple of hours ago an still 100% of gains of neely 3% of gains for the s&p 500. >> 20% off the lows of december. it is really coming full circle. let's discuss. joining us today, david balin from citi private bank and rick santelli from the cme in chicago. david, if i start with you, sara said up 20% from the lows incredibly, low vix and volatility, is there a sense of complacency out there at the moment >> i think a bit we have come full circle since
december and the growth is in fact slowing somewhat and we are having a benign interest rate environment, no future fed hikes and people assume the best outcome an probably more growth than is possible for the s&p. >> rick, esch's talking about the 10-year yield breaking below 2.60 is that an ominous signal? >> three or four more basis points added on and i would say yes. a resounding yes taking out the 2.55 area that's the low for the year and then flash back all the way to january of '18, there's a certain level of nervousness about falling interest rates even though obviously conventional wisdom is do i want to be long stocks? that was the refrain in january of '18 but this is something to be concerned about with all the central bank issues going on and with our fed still with a fairly decent stockpile
of its own treasuries, it is hard to divine where the pressure's coming from is this the relative value trade with japan's rates low are we failing to listen >> i think lower yields especially cracking the significant levels we are getting close to is going to end up being a bad fundamental for stocks and personally i think we are in that perfect period i don't know if it's goldilocks but i think the central bank here sees straight in terms of how to deal with inflation that isn't getting too hot, wages and productivity, maybe more in balance and it is something to pay attention to and my guess is especially if this go around we don't get closer to the contract highs as bob pisani has been saying and fail at the top of the equity range if while that's occurring and trade unresolved and rates below the key levels i can't imagine we won't get a response in the equity markets. >> rick, i guess the flip side is that the dollar on a sort of
six-month trend is stronger has softened again this week it can never really stay above that 97 level and a bit of surprise it softened that way given what we got out of the ecb last week. >> i couldn't agree. there's a big factor with the dollar and it always seems to be, you know, after it fails at 97 just as you pointed out but you know, with the dollar sometimes i think you have to take a step back i urge people to watch or listen to look at a five or ten-year dollar index chart and hard to think with the sarcastic trade that it isn't slowly going to try to work the way towards 100. >> yeah. by the way, a lot of that was the british found withpound wit week david, there was a lot of hand wringing last year early fall starting to see stocks hit and turbulent of higher interest
rates. is it going to stop growth is it going to stop the bull market now people worried of lower interest rates and sending some warning signals of growth and whether the central banks are too involved which is it? >> definitely the latter we don't expect rates to ever now go above 2.85 and most optimistic scenario, you see the odds change of the fed up to 40% nine months from now taking a look at the latest bloomberg data so to me that indicates that people are concerned about growth what we expect to happen is 1.5% to 2% growth in the u.s. we expect the dollar to fade a little bit as the year goes on but compared to other markets the u.s. is doing just fine. what american investors are missing is the opportunity to really diversify their assets overseas into asia, into some of the emerging markets to benefit from higher growth and sustained lower rates in the united states and that action i think is
really what investors have to do now to safeguard assets going forward. >> which countries in particular >> well, we like china itself and might be a bit controversial and brazil, as well. people are underanticipating the rate of growth that can come off a low bottom in brazil resolving the political issues and deal with the pension reform. that market has plenty of room to run and come up quite a bit this year and in china if you were to look back just 12 months ago that market is still minus 10% versus an american market looking back that time is already up considerably as you have said. china has stimulated an amount equivalent to half of what they did in 2009 when they were coming out of the great recession and those stimulus have yet to flow through the stock market and into the companies earnings and share prices >> wanted to ask you specifically, david, about the tech sector an having an amazing week up more than 5% for the week best performing sector by far.
is the tech trade back on? >> back on but the underlying story which you are hitting upon is how much people are willing to pay for real growth. areas to drive both top line revenue and more importantly substantial income growth over the course of the slow growth period that rick and i are talking about. those are the companies this people are going to want to invest in. some of these are momentum trades that you talked about and some of them are fundamental growth trades with sustained 20 or 25% revenue growth for 2 to 3 years in spite of a lackluster economy. >> david, rick, have a great weekend. >> thank you you, too. >> thank you. the president of diageo beer is here and the take on the corn syrup controversy of bud wise i and miller lite. >> i was able to have a guinness once on wax on st. patrick's day. on the stock exchange floor.
great shame. >> maybe we can save one for you after 5:00. >> question'll dig out a great conversation with him. the massive college cheating scandal in the headlines this week but we're taking a look at the legal ways to pay for school we'll tell you how students are negotiating better financial aid. that's coming next we see harnessing natural gas unleashing the promise of clean energy. at emerson, when issues become inspiration, creating a better world isn't just a result, it's a responsibility.
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recode expectative officer kara swish we are an op-ed in "the new york times" of facebook's biblically bad week. kara joins us on the phone thanks so much for joining us. biblically bad week. interesting use of words in the title. is the worst week in over a year >> well, you know, just added to it today by the terrible shooting murders in new zealand broadcast live on facebook by the killer so that even added to it this is after i published this story and then facebook tried mightily to get hold of it it whipped over the internet and the murderer used it to broadcast the mass killer is worst. i can't even -- it is horrible. >> yeah. >> i could not agree more. in terms of the things that have happened earlier in the week when you had written the article, what was the single item that stood out most of all?
the eastern district of new york investigation? >> yeah. the criminal investigation you know, the justice department does these criminal investigations and in this case it is about use of data and the misuse of data and the possibility that facebook misused data and gave it to partners that they had and whether they were allowed to do that and whether they had consent. the justice department of the eastern district of new york is investigating this and looking for criminal culpability. it is not a great look for facebook amid all the other stuff happening, there's a justice department investigation, ftc looking at fines and sort of for violating certain agreements facebook made. you know it just goes on and on and on actually. >> kara, does the biblically bad week tell us that facebook isn't better at dealing with these privacy scandals or regulators are getting sharper? >> i think there's more
regulatory pressure. you saw britain release a report saying facebook and other tech companies hurting innovation and elizabeth warren with the proposal to break up companies like facebook and to unwind deals like what's app and instagram. specifically mentioned those and then there's obviously these executives that just left because they didn't like the new direction mark zuckerberg the ceo, founder and controlling shareholder of facebook is going in which is a pivot towards privacy and the top lieutenant chris cox left and they were part of a recent reorganization of the company and saying it's planned but, you know, a lot going on. >> but those departures given how you framed them does that at least show that mark zuckerberg understands the pivot he has to make even if it does lead to high profile departures? >> i wrote about that last week.
essentially he was borrowing the business plans of we chat and snapchat and companies that had been doing private messages and particularly snapchat. facebook has been borrowing a lot of ideas and this time it's the idea of snapchat of private messaging and he's got to make this move but, you know, just this today, horrible thing showed just what happens when a public platform cannot be controlled you know and this is unfortunately the result of that idea. now, facebook's not to blame for this in any way and same time this ability to broadcast live video is also problematic and if you're a public facing company like this it is not the -- it is a terrible thing an same time not great to try to figure out how to try to manage it. >> and then there's this, this afternoon, a headline facebook, google and other big tech giants to face a reckoning, states
attorneys general warn. >> oh yeah. >> they're jumping on the issue. >> state attorney generals plenty to look at for them and regular lawsuits and so it is just a lot for the management to absorb and to deal with. same time keep innovative products coming to market. they're also competing and a large plate of things to deal and serious and require a lot of attention and bandwidth. >> i wanted to pivot to apple. they released a video of data privacy today or late yesterday i believe. are they foolish to sort of pat themselves on the back like this is it going to invitd a bigger fall yac fallout if they have a privacy issue or are you of the thought they never will because they have a different approach? >> but everybody -- no one can be safe in this world anymore. i think apple has long had, you know, it's a business plan that
doesn't depend on advertising but selling devices an deals with google and facebook and others but, you know, this is something tim cooked pushed. he did it in an interview with me talking about the business plan of companies like google an facebook against privacy and here we are apple, we have strong advocates of privacy and they have been around encryption and other things they fought that fight with the fbi a few years ago if you recall i'm not sure they should tout it too much but it's a business point that they are more -- value privacy more than the other companies. a contrast i'll not sure i would tout it. >> it also suggests trying to speak to the consumers here and not sure, what do you think? do you think consumers are wary of google and facebook right now and it's affecting usage with the privacy scandals >> well, we'll see it is definitely problematic
google said that the nes camera with an extra camera it. oops forgot to tell you about it. not just misuse of the data. where did it go? hacking. it's better selling point to say we are safer in this incredibly crazy online world. some of which is really disturbing you want to be with a company that's protecting your privacy or doesn't benefit from the data and there's no way around the idea that google and facebook don't. that's not their business and it is to a lesser extent amazon. >> kara, thank you for phoning in. >> thank you. >> on the latest op-ed did you learn how to say privacy? >> i think it did come out your way once i think -- >> i think twice i'm proud of you. >> couldn't have been twice. >> i mock you every time. moving on db. >> not just on that word. >> the same time that the college admissions scandal dominating the headlines,
college acceptance letters are arriving across the country and for many families financial aid can be the difference of attending a school or not. with more is sharon epperson with the story. >> hi, sara. with a sticker price topping $26,000 this year, financial aid is crucial for many families according to a recent survey by the princeton review, 99% of students and parents said receiving financial aid would be somewhat, very or extremely necessary to pay for their education. many schools will allow you to negotiate the initial financial aid offer through appeal and princeton review said one third of the requests honored at most colleges but you have to have a valid reason for example, a change in the financial situation, a job loss, medical bills or if your child improved the test scores you could ask for more money then based on merit appeals process varies by school so call the financial aid
office you will probably be asked to submit an appeal letter and this is where it pays to know dos and don'ts don't ask for specific number. the school could offer you more than you expect. make sure tow provide evidence to back up the reasons for the appeal and don't pit one school's offer against another it likely won't change the outcome. keep in mind if you do win an appeal it may not be for tens of thousands of dollars but in the world of rising costs, any little bit you get will help >> sharon, what about if your financial situation changes in the course of your studies are colleges typically open to helping when wild card factors occur during the course of a degree >> absolutely. so many different factors can happen in the four years as an undergraduate or graduate student and let them know if you have changes in the financial picture and being able to explain exactly what those changes are and the shortfall is going to be the key in you getting increased amounts of
financial aid. >> did you see the tweet ocasio-cortez? tweeting out the cost of the gop in her words tax scam $1.8 trillion to $2 trillion. cost of all student loans in america, $1.5 trillion do you see this issue really gaining political traction >> i think the issue of student loan debt is definitely gaining political traction and gaining traction among so many americans that face student loan debt and i think they'll talk about it nonstop because so many con stitd wents feeling the financial pain of student loan debt. >> sharon, thank you. >> sure. my pleasure. still to come, we'll speak with a tesla analyst with a chance to drive the model y yesterday. he'll tell you why he's impressed with the suv and what the bears are getting wrong. plus, kylie jenner a boost to ulta's sales this quarter we'll eak wnbrdo the numbers
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stocks here rallying into the close. technology in particular is a standout today and for the week sector's up more than 5%, more than 1.4% today and going strong consumer discretionary thank you, ulta. consumer staples, health care, utilities and more of the defensive sectors under pressure real estate and industrials are also lagging. >> morgan stanley up 5% this week. >> why >> just outperforming. banks did well and a particularly good run. time now for a cnbc news update with contessa brewer. >> major flooding in minnesota that forced hundreds to leave their homes. water is up to three feet, neely 300 homes affected here. the result of an ice jam in a nearby creek what a mess. mgm got its gaming concession extended and will
have the resorts pay $25 million to extend its license in the gambling hub that lifts uncertainty surrounding the concession there. crazy video of a woman lifted into the aby strong winds and lifted trying to secure a canopy and came out of it -- look at this without a scratch. got a story to tell. if you live in louisiana and got a big tax refund, you might be able to keep it 66,000 taxpayers double payed for the state refunds. now the state is trying to claw back the $26 million in overpayments a division of administration spokesperson says the problem was fixed. they're working to recover the money. i would say until you recover the money, the problem is not actually fixed my take on it. >> what a bummer for those people >> thank you very much coming up, will tesla's model y be a big win for the
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diageo, the stock up 26% can the company keep momentum going? joining us to discuss, ahead of the closing bell here, the president of diageo beer company usa. thank you for joining us. >> hello, sara thank you for having me. >> the narrative on beer has been weakening sales at the expense of consumers going for wine and hard alcohol. is that what you are seeing? >> we see a different picture. we are very happy with the beer company growing 13% in fact first half which shows that we can have positive growth in beer but indeed like the industry is in a tough situation. >> why is your -- why are your brands guinness included an exception to the trend >> we see core and innovation going well so our draft begin mess in a can is increasing and
bringing the pub experience to the home of our consumers. so if we think about consumers 21 to 34 they are kin to great experiences and what we offer. >> what about the trend towards light beer is that a global trend is it just a u.s. focused trend? >> i would reframe i think there's a better for you trend so consumers are keen to drink beers that are good for them and - >> none of them are good for you. >> with quality above quantity let me put this way and that's what we are doing more and more. delivering beers with incredible quality and i give you an example. our master brewer is brewing ambe tea this weekend for sait. patrick' >> very nice knowing the extensive liquor brands, there's not that many
beer brands for a xan of your size are you looking to buy beer brands or bring on some new one that is we are going to be drinking >> we are looking to grow the portfolio. beg beginness is our number one brand and it allows us to brew more beer and brewing 60 different beers in the first year and see an acceptance of the nur beers so that will give us a better portfolio. >> where are you on cannabis all the beer makers are getting in. >> we are looking at it very closely but that's what we are doing as we speak. >> would that be under your division >> not my own but overall innovation dw driven and look at it very closely. >> i know you said the strength of your own portfolio in giuness
and millennials prefer cannabis than beer? >> i don't have data indicating that i would say 21 to 34 let's call it, what they want is good experiences, they want products that are delivering benefits on holistic space and what we see more than anything else. and we see guinness increasing awareness and increasing distribution and penetration among that target group which is quite positive. >> we wanted your take on anheuser busch, super bowl ad, going after -- shaming other beer companies because it says they don't include corn syrup. is that true is it causing a rift >> i would not comment on other beers and i think -- i respect whatever they want to do with their own brands guinness we don't brew with corn syrup. >> i want to ask about
preferences, tastes in asia because of the conversation of briefly beforehand are they liquor drinkers are they beer drinkers what's the trend you are head of the u.s. business but - >> yes we see overall positive trend towards spirits and liquor so that allows fantastic experiences, it is a story telling world. and we see that across all the geographies. what i'm pleased to see beer doing so well for us in the u.s. and that's, you know, something that i'm super proud of. >> what you are in charge of. >> thank you. >> very good, thank you. have a good afternoon. ulta beauty jumping after reporting earnings after the bell yesterday. the results next. later states attorneys general apparently weighing action against big tech and we'll speak with arizona's ag who began investigating last year always wants to hang out.
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same store sales increasing. citing the exclusive distri bus deal with kylie jenner's makeup line and shares higher as i mentioned up 9% of 65% over the last year. so this really has been a best in class kind of retail outperformer comps above the industry a bit of a stumble last year and regained momentum. not just kylie beauty but a good find and they have added this company morph and it's a lot of those new launches which are driving the stronger comps oliver said 40% of the comps are due to the new offerings. >> kylie cosmetics made her a billionaire. >> made her a billionaire. owns 100%. helps to have a distribution deal with ultra. great contour. >> yeah. what does that mean? >> contour for your face. >> no. i didn't. >> spend sometime with me in the
makeup chair and see. i have gone for shares of adobe beating on eps and revenue and weak guidance. downgraded adobe from sector weight -- to sector from overweight ab down ubs did keep the buy rating and took a sort of different angle and a few differences out here only fearful of large m&a and strong competition is a factor and valuation not too steep for a growth company 20% growth so ubs -- >> had been a favorite. >> most people focusing on the key bank downgrade. we have breaking news now out of washington. kayla? >> reporter: sara, president trump issuing the first veto of his presidency this veto was just signed moments ago in the oval office in essence a block of congress's attempt to block his national
emergency that he issued just one month ago. this will send the effort to block the national emergency diversion of funds back to the house. the house is not expected to have enough votes to override the veto but certainly is an important measure of the president's campaign priority of building this border wall. we don't know where the funds come from and expect to hear more from the president just momentarily. guys >> kayla, thank you very much for that up next, we'll be back with the closing unn.cotdow less than five minutes left of trade. no matter where you are in life or what your dreams entail,
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don't get mad. get e*trade, dawg. welcome back to the "closing bell." couple minutes left of trade little bit of steam over the last couple of hours but we are still higher up about 0.4% on the s&p. the dow up about 100 points. it was up 200 points or 220 at the high of the session. we shouldn't complain. nasdaq up over .5% tech very much the leader up over 1%. consumer sectors doing all right. real estate done at the bottom key things this week, 10-year treasury note, wow, what a slide. we discussed that with rick santelli earlier
what was it this week? hard to say. nonetheless 2.59% the yield there. dollar slipping down 0.7% week to date. which is a little bit of a surprise down today pound has been a factor on that. strong this week the dollar sliding helps stocks. sector as i bring in bob pisani, tech leads the charge. energy also doing very well. the key thing all 11 sectors in the green, bob we shouldn't complain. >> we have broken through key resistance at 2815 to 2820 been waiting for this for a while. highest levels since october second important thing, the vix has collapsed again. we have got a 12 handle on it. essentially the lows for the year this means that -- >> bother you? >> it is a good sign in that companies have targeted volatility to add more exposure when the volatility is this low. we have a big rebalancing on the s&p 500.
a number of companies reducing the shares outstanding including pfizer, wells fargo, this goes to the whole debate about share count reduction and buyback. >> thank you there goes the bell. we're up half a percent on the s&p for the day. up more than this on the nasdaq. dow's also half .5%. russell slipped into the close a very strong session and a very strong week. sara, back to you. ♪ very strong week welcome to "closing bell." i'm sara eisen wilfred frost rejoining me in a moment along with mike santoli, cnbc senior markets commentator. the dow gaining 136 points about half a point s&p 500 also closing higher by half a percent for the week as a whole, though, a much stronger showing for all.
s&p up 2.9%. the nasdaq up 3.8% the dow sort of lagging up 1.5%. that was boeing. big story of the week down more than 10% as a whole. for the s&p 500 this is now the best week since back in november and we are closing at the highest levels since early october. here are the stories on our radar for investors. big rally in chip stocks fueling the tech trade economic data morning and forget fo ma fomo mike santelli has a new one -- >> what is it? >> we'll talk about it. >> and our guest this is the comeback for stocks. when you were in the dex in the middle of december and predicted to gain back everything, now back to october levels for the s&p -- >> back to about -- october 9th.
you have gotten rid of the free fall phase of the fourth quarter. it's tired of sitting out. i think the action this week indicated investors who, yeah, sure, allowed for the fact for a big bounce off the lows and the fact it's persistent and the indexes didn't back off from the levels that are resistance and slowly crawled its way higher i do think you have people recommitting to stocks to some degree an even grudgingly and that's why because there's been no economically relevant news to change the picture all week. >> i don't want to make light of the acronyms because i think this is actually important but what comes first toso or fomo >> tired and then fearful? >> the question is, have we got further to run >> the fear of missing out is when the market is accelerating and there's a momentum move in it and people are fearful that they just are going to be left
behind i think right now it's feeling more comfortable getting back involved with stocks and it is the inverse of what we did see in december. investors felt they had to pair back positions now volatility is smothered lower and at least it gives the impression in a lot of models that it's safer to have a higher risk level. >> rebecca, how do you characterize a why behind a big move behind stocks in the year and an especially strong week? >> boil it down to what you discuss a lot on the show and that's going to be a big change in central bank policy led by the fed but not just the fed, obviously. also the european central bank and china. and then hopes for a trade deal removing that piece of uncertainty from the market. i think the fed's more important driver and not just the fed driver and see what's said by mr. powell about that next week and then the targeting regime
and lower rates on a structural basis and all three coming together at once means seeing the vix volatility index sub 13 today for the first time since october to me that's mainly a fed story. >> mike, what do you make about the fall in the vix? give a sense of complacency? >> well, it is a level of comfort. obviously. we saw the vix down around 12 in early october. when the index was roughly around these levels so it is not incompatible with where the market is right now and reflecting the fact of gone to a lower pace in the market there's not a lot of signs of financial stress in the system and the obvious question saying is there more to run it is truly unclear. really all the market is doing and feeding off this backdrop of low yields, patient fed. there hasn't been that much more movement in the story but the stocks just kind of grinding higher' rebecca, is there more
room to run? >> short term, sure. i think you are seeing more signs of stabilization and some of the european data, people are hoping the chinese data improve with the stimulus there. a trade deal certainly is good news my fear is we might get too much of a good thing. if economic data do stabilize globally and it is really the manufacturing sector that's struggled the most, the consumer sector's doing better, but if things get better economically and equity markets and credit markets continue to run i think we have to appreciate the risk that the fed may decide it wants to hike at least one more time later this year and that's not niced in at all anymore and that would be a wake-up call and then i think secondly the china deal, fine, getting a deal but what kind of deal details matter a ton and we know that trade rhetoric not going anywhere the enforcement of the deal, the currency, what about global autos? the u.s. with india. i worry we get too much of a
good thing right now and maybe it's a few months away but i feel like we might have a little bit of a wakening once we get to where the fed want it is tighten or see the reality of the trade deal not as good as we hoped. >> chip stocks soared today with broadcom leading the way after the company beat on earnings the etf up 22% this year mike, broadcom up 8% or so dragging applied materials, texas instruments, others higher, too. >> yeah. >> having had a good run. >> very good run and today the leaders aside from broadcom reporting were the semiconductor stocks way below the highs and still this idea that, look, fine yes, they have recovered a lot but they're not yet back to where they were a year ago and psychology in the market is interesting. people don't perceive paying up
or potentially paying top dollar nothing says you have to get back to the highs but i think that's the psychology right now, especially if we're going to be thinking we get a rubber stamp for the group. >> how do you think about in this market to choose a comeback group like the chips >> we tend to do our stock selection very much bottom up and not necessarily identifying a sector per se. we look for the companies and what sectors we get fall out of that i look personally at where i want to be in the world and we are bar belled right now we have a large overweight of the u.s. and in december reduced europe further, added to emerging markets thinking of a trade deal, if we get china stabilization in terms of growth, emerging markets probably lead the way especially because the valuations so much more depressed in december ian what we have seen this year. that trade might be crowded but i guess going to what mike was saying before there might be
more room to run in the short run and comfortable holding my regional bets here letting my portfolio management teams do what they do best and pick the good companies for me including a birt of tech. >> apple up over 7% for the week. >> bigger winner in the dow. >> good example of stocks -- high quality stocks down a lot the story didn't change very much but an upgrade and still a long distance between where we are and the highs. if you look at the leaders of the nasdaq they just got disproportionate dollars this week with the obvious and natural place to go with stock expoeds your don't worry about every little wrinkle in economic growth an make the case if you wanted to say market's gone too far ahead of itself to look at the se semiconductors saying nothing's proven yet that's what markets do. >> basically if you're toso
apple is a good solution. >> yes. >> you didn't get it stralgt straightaway. >> i think toso. not toso. >> i was thinking of tofu maybe. we have to hit the data today because it was mixed again. university of michigan consumer sentiment and u.s. job openings showing strength coming in better than expected but new york fed manufacturing index and industrial production both coming in weaker than expected rebecca, how do you digest all of that? >> we have seen manufacturing in the u.s. but also globally taking a big hit and the industrial production data doesn't surprise me and it's back ward looking. the empire state survey getting more attention for me because that's march ian giving us a hint of the trend in the second quarter and i think the tale of two tapes here we have the consumer doing well, consumer confidence is up in line with higher stocks. that drives the u.s. economy but the manufacturing so far it
still looks like the drag could continue into the second quarter and as long as that drag continues it's going to keep a lid on growth which maybe is good because that means the fed doesn't have to rush back to take the punch bowl away >> yeah. we don't want recession theary maybe not too hot coming the data. >> we have some room for the data to get better without the fed getting itchy to do anything and next week could be a decision point right? if the market priced all hikes for the year and maybe one out there that could be an excuse for the market after a weak expiration to back off a bit. >> to the point of slightly worsening data, we have a long way off the need for a cut. >> oh, it would seem, sure, yeah. >> i don't know. bond market hasn't. >> in the sweet spot i guess. >> why. >> the other point i'd just make, as well, was last week we
thought, gosh, this ecb pivot didn't help stocks both in europe and here, as well this week we could point out the euro stocks 50 up over 3%. the 600 up 3%. it is a global rebound in sentiment this week and just taking hold of that looser policy and not concerned about the data and aware of now. the data worse, not too concerned about this. >> exactly. >> rebecca, we wrote an op-ed for invest in you, ready set grow, the financial education initiative with acorns the focus of the piece was about investing in financial literacy for women and girls. very timely. what is the big takeaway >> thinking about the basics of the economy, the u.s. economy about consumers. so if we all want a strong economy, we need financially literate consumers not overspending, not flipping houses too much or credit card
debt we have to start in school we have to start where they're young and start with the girls and the women and the end of the daye, sara, we live five years longer, sorry, mike, wilf. women tend to live five years longer and run household finances so if you want a healthy u.s. economy which i think everybody does you have to have financially literate women and girls. and right now the schools just aren't able or willing to teach it as much as they should and we need to push the schools and do what we can at home, opening up a basic checking account for your kid or talking about the value of money going shopping. >> and we just flashed up a statistic which i think is 30% of women are knowledgeable about investing and saving and making that grow. what is the comparable number for men? is it easy to close that gap is it education at a young age does it need to happen for people who have already left education and how do we improve
that situation >> well, it's never too late to start but it is amazing. when girl scouts did a really good, robust survey of girls ages 8 to 17, everyone surveys, over 90% said we plan to have jobs, take care of our families. but only 10% said they had confidence about making financial decisions. boys are brought up with more confidence they're brought up taught differently about money and personal finance and economics so it's really even at that youngest age where we have to start teaching girls about money and personal finance just the basics. so we start there. but we shouldn't stop. the shutdown was a great timely reminder you had a quarter of federal workers missing a mortgage or rent payment, missing bills or worried about bills. that's basic stuff we should be able to make sure we have an american consumer base that knows enough to set aside enough money for a rainy
day and obviously that's easier for some of us than others but i think there are little things everybody can do and that's going to be good for the economy overall. >> yeah. i mean, everybody needs better financial literacy and especially women. >> amen. >> geographic issues and also historically the industry has been bad about kind of serving women and kind of speaking to them in a way where they should understand it so yes. >> well, you know, you and i are the ceos of our households. >> absolutely. >> thank you >> thanks. >> great to see you. thank you very much. don't forget to read rebeck can's piece at cnbc.com. up next, tesla unveiling its new model y crossover. we'll debate the stock and talk to an analyst who took it out for a test drive yesterday. big tech companies about to
face a reckoning of states attorneys general. we'll lk ttao the arizona a.g. about what he plans to do. 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
today. elon musk revealing the model y last night in california failing to impress some investors. musk addressed some of the production difficulties at the event. >> the difficulty and value of manufacturing is underappreciated it's like relatively easy to make a prototype and extremely difficult to mass manufacture that prototype or msz manufacture a vehicle reliable. >> joining us is dan ies and craig irwin with a hold rating if i start with you, dan, you're at the event some pooh have suggested it lacked energy and enthusiasm. >> i couldn't disagree more. the bears are winning the battle in terms of tesla. this litany of bad news. in our opinion from an excitement in terms of the
actual vehicle model y, the specs and test driving the car, i thought it was massive enthusiasm it's a glass half empty for tesla and we think they get through it and model y is a game changer for tesla. >> dan, the event was invite only i think i'm wright in saying were there any as many bears alongside you do you think as bulls? >> i didn't talk to anyone in terms of obviously i was focused on trying to test drive and understand the specs on the car. no doubt right now tesla is an emotional bear and bull story right here and i view it as a 12-round battle and if you look at right here the bears have won this but in terms of what i saw last night i view that as a lynch pin to the bull
thesis. >> we have a bear to talk about this alongside you craig irvin, were you there last night? if not what were your impressions? >> no, i was not this is something that was completely what they described is anticipated they pack the events with fanboys, enthusiasts and don't anyone whon who's an enthusiast. i'm not surprised i wasn't invited because, you know, i do a lot of primary research and not necessarily focused on what tesla tesla is saying. >> craig, what is your biggest concern for the stock at the snoemt. >> the biggest issue is battery prices higher than the whisper number $240 a kill watt hour. that's hard economic data. their whisper number, whisper in dark corridors, 100 to 150 it is just no way they're at that level
you know porsche, volkswagen, buying batteries of $250 a kilowatt hour and the reality is the cars they're selling, you know, the model 3 and now the model y are just too expensive they're far too expensive. even with the price cut, you are really just getting a smaller battery. in order for the demand to be sort of where the bulls want it to be, you know, seven, 800,000 unit opportunity for the model 3 and plus the y realistically you need a lower price and they can't without costs out of the battery. >> dan, how do you address the concerns of demand at this price point and really also where the goal posts right now in terms of what the company has to meet to satisfy your bull case on volumes in the next couple of quarters >> there's no doubt the ev tax credit coming off in the u.s. and we are in europe a few weeks ago and we believe europe is especially in the norwegian
countries look strong and need to get through the one q and need profitability, two q, three q. the capital raise a risk out there? it comes down to demand on the mid rage can you see the 35 to 42k price point stimulate demand we believe it does second half of the u.s. an engoing into 2020 this is a much different story an i hear what your other guest is talking about but i view this as a forest for the trees and my opinion three to four years this company has a transformational growth opportunity and more of an air pocket rather than the start of an apocalyptic trend like the bears like to think. >> craig, the similarities some people think between the model 3 and y, an advantage or disadvantage >> 75% parts commonality is a good thing it should help them as far as supply chain but the reality is that they still have a lot of
money to spend to complete the final debugging and initiate manufacturing and complete the tooling to be able to make it in volume so it's just like the s and the x originally they're sister cars. this is the way they have learned to do things, learn to design things. i wouldn't say it's a material advantage. i think it's just sensible design. >> dan an craig, thank you both. >> thank you. coming up, goldman sachs easing the dress code rules as business goes casual that trend may be having an impact on one men's retailer we'll explain. and big growth stocks been on a strong trend relative to small caps we'll see how long it could go on - hello, i'm brad castillo.
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the u.s. money reserve has proudly served hundreds of thousands of clients worldwide. don't wait another minute, call now to purchase your american eagle coins at cost, for the amazing price shown on your screen. welcome back we're just getting video of president trump signing his first veto in office let's listen in. >> that's true i say it today with even more meeting. it was a big step.
>> president trump in the oval office he's just signed the first veto of his presidency rejects the measure that would reverse the national emergency he declared on the southern border let's bring in kayla who's listening in to what the president is saying and can tell us more about the significance of this. >> reporter: he went around the group that was assembled behind him for about 12 minutes before signing that veto. we heard from the secretary of homeland security talking about the humanitarian crisis. we heard from the attorney general, the newly installing a.g. bill barr saying that this action was firmly grounded in the law and that this is exactly the type of national emergency that the law provides for. of course, those comments from interesting given the protracted legal battle expected to follow the veto by the president and then we heard from members of customs and border patrol. we heard from sheriffs who work along the border and angle moms, the term that was coined by the
president to describe the parents of victims who -- fatal victims of undocumented immigrants and one of those angel moms received the pen that trump signed the veto with this is a symbolic gesture i will go back to the house where the house will have another vote on march 26th but is not expected to have enough votes to override this many members of the president's own party in the senate, 12 republicans, said that they did not feel comfortable with the president's decision to declare a national emergency, to obtain the funds from the p&g without congressional approval they felt that was executive overreach that set a dangerous pre precedent. the president seemed to speak directly to the members of his own party saying that the emergency that the border is what's dangerous guys >> kayla, thank you. turning back to the markets, big growth stocks have been in a strong uptrend relative to small
caps over recent years mike has a look at how long this trend could last mike >> this is the past two years and what it is measuring is the qqq, the nasdaq 100 exchange traded fund against the russell 2000 exchange traded fund and mega growth stocks against more domestic small cap company stocks and what you see is a very strong relative up frietre and connecting this that shows you that it is a pretty durable trend. hit the bottom of the line and kept going up from there maybe we have stretched over above the trend line a couple of things to note, this right around here was the signing of the tax cut bill which was supposed to cause a big relative rally in domestic stocks which is a bigger beneficiary. this is the january peak last yeo and over here obviously you have last year's selloff with on a relative basis the nasdaq holding up better and tells me
late in the bull market companies go to the big kind of well-known, reliable growth stocks they don't work forever and for now it seems as if this is the character of the market that we have right now. >> so, mike, have those same big tech stocks that have driven this seen the multiples go up over that period or not really >> actually as much because those are actually having faster earnings growth so i wouldn't have the numbers ready but look at the companies of amazon and apple and microsoft which hit an all-time high today and they have relatively faster earnings growth or more durable earnings growth and not as if it's just crowding into the most bubbly, expensive stocks. >> i wonder if it's liquidity driven versus straight-up fundamental economic growth. >> the other thick is smaller companies don't have the pricing power, the cost pressures hit them more and the growth stocks with a resilient business model.
>> mike, thank you very much time for a cnbc news update. >> here's what's happening president trump speaking to the prime minister of new zealand today offering assistance and s solidarity after 49 people were killed at 2 mosques in christchurch police charged a man with murder and took two other suspects into custody. the man accused of sending mail bombs is expected to plead guilty cesar is slated to appear in court thursday felicity huffman and his husband are back in a federal courthouse in l.a. today likely related to the $250 thousand dollars bond they put up after she was charged in the college admission scandal. what kind of music does your cheese right swiss researchers subjected nine 22-pound wheels of cheese to music 24 hours a day saying it actually changed the flavor. some listened to hip hop they sounded really cool
others -- i mean, tasted others listened to mozart. one "stairway to heaven. researches said hip hop had the strongest impact. >> wow >> is that for real? that's a joke, right >> not a joke. it was in "the wall street journal" today. >> strangely i like it >> i would say no way. >> brilliant. >> very good. >> waiting >> i was thinking how pregnant women play music for the babies. >> giving birth to the cheese. >> help them, intelligence. >> contessa, thank you very much. >> welcome. news flash no democrat announced the run for the presidency today but with 11 hopefuls already in and more democrats to follow the markets are watching up next, a lock at the economic policies of some of those leading contenders who have already announced. forget twitter and facebook, the hottest social app for teens
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seems every other day a democratic leader throws their hat into the 2020 presidential ring polls cite former congressman beto o'rourke and bernie sanders as the leading contenders. how might some of the democratic hopefuls impact the market and the economic outlook let's bring in ed mills, political policy analyst at raymond james and jim lasear at capital alpha partners very, very early, ed what do you think investors watching closest >> well, i think they're looking to see who might be the nominee. and we look to the 2018 election and see if that gave us any clues. does the democratic party want to pick someone from the left? does the democratic party want to pick someone from the center? they look to see that if we get someone who comes out of the midwest and they're able to d
convert minnesota, wisconsin, michigan, pennsylvania there is no chance for donald trump to get re-elected if the other states stay the same and if they do that, kind of what policies do the next president bring? what impact does that have on the regulatory environment, on m&a, tax policy out of congress post-2020? >> jim, what do you think the key factor is for president trump in terms of potential re-election? is it who his opponent is or is he in control of his own destiny? if so what factors do you look for in the next year or two? >> i think he is largely in control of his destiny one would be a path of a bad mueller report, impeoplement, failure of trade deals done, a bad economy and budget standoff for even government shutdown in november that would be a negative path.
the positive path would be a continued strong economy, solid trade deals, no impeachment and no shutdown at the end of the year, rather smooth sailing, and may happen now that trump made the point with the emergency action on building the wall. so it's up to trump to see how far he gets and what his status as president is at the end of the year after that, investors will divide for risk on or risk off mode flip the political risk switch or bet that trump will beat any opponent because the economy is supporting him >> ed, as the market tries to sort out the potential democratic nominee we are looking for in part the policy mix that seems to be gaining traction as part of the message of whoever the nominee is and to what extent can we make an assessment of business, economy, taxes that matter that much in the campaign >> yeah. i think that's right
i think if the kind of democratic party looks like they select elizabeth warren or bernie sanders there's more concern because their brand is running against wall street and so that's a real concern for investors. if democrats look like they're choosing a joe biden or an amy klobuchar, those are candidates more middle of the road and i think they would say, hey, that's a lot better than what we would have anticipated the big debate there is does the market want a middle of the road democrat or do they want to see trump re-elected right now i think that is an inconclusive debate there on the street but finally, i think what the market will be looking for as much as they're focused on the president they also have to focus on the senate because ultimately republicans have a majority there and would be able to block any kind of cabinet pick if they don't like them, if it's a more liberal democrat in the white house or they'd be able to stop some of the kind of
use of budget reconciliation which is a really big deal coming to taxes. it's a really big deal when it comes to other domestic priorities that's how ultimately we got the obamacare so the market will be looking at the presidential race but they will be almost equally looking at the senate to see about the policies that could be adopted with that president in the white house. >> so bottom line, jim, if we get one of the farther left candidates to be the nominee in a race against donald trump, are we going to see a pickup in market volatility? >> i think so. i think as joe biden aged, he's a political gaffe machine and don't expect him in the primary environment. we could have three or four democratic candidates to the convention harris and sanders and beto or klobuchar and gillibrand and raising millions
of dollars a month and you wouldn't see a single unified agenda until summer and they would make the bets on the health care regulation, financials regulation or energy regulation and depends on the candidate. we don't know for quite a while. >> thank you. still to come, some of the country's most influential states attorneys sxwrgenerals tn aim at the giants of silicon valley we'll talk to the arizona a.g. about his plans.
welcome back here are a few stories on the "closing bell" radar today guys, gender parity obviously hot button issue in society ahead of the women's world cup in july, nike and adidas jumping on the opportunity to put women front and center and both unveiled new women's world cup uniforms and nike did it on a high fashion runway event in paris and the first time that women's uniforms got their own design back since 1995 it's a spinoff of the men's and friendlier necklines, controlled fit and room for ponytails remember, last week, the women's team 28 players in the u.s. filed a gender diskram nation lawsuit of the federation
alleging they earn less than men even though they outperform men. remember, the u.s. men's team didn't qualify for 2018. what i have been looking at is why nike and adidas have been really jumping on this opportunity and making these moves now. it's not so much that they sell a ton of jerseys for women's world cup or even women's soccer it's women overall that is a key growth area. women's sports footwear grew 9% last year. so it's about building the reputation and the credibility with the women's market for companies that have reached multibillion dollars and looking for a source of growth and a way to do this. >> i don't want to pour cold water on this, i can't believe that they didn't separately design these jerseys in the first place and crazy. >> i was surprised, the. >> they got different versions of the men's one but to say and kind of try and celebrate the fact to give the same performance bonus to the teams -- >> adidas? >> saying that for the women as
the men, that's a little bit of a gimmick because if you think about how much messi gets this total from nike or whoever sponsors them and what portion of that will be a bonus of world cup it is tiny net-net the men are paid way more than the women and this is a little bit of a gimmick to say look how great we are equalizing it in total, the women getting way less in endorsements from nike and adidas than the men will be. >> a big debate. we have seen it in tennis and now in soccer and the question is should women be paid the same for the same amount of work and wins or should men be paid more because the ratings as you know in the men's world cup are multiples of the women's. >> a huge debate and to try to put it out there for one tiny -- >> it is a gesture if nothing
else. >> good point. corporate america has become a bit more relaxed with the dress code in an effort to attract more top talent goldman sachs among the most recent companies to make a suit and tie optional this is bad news for men's wearhouse brands the parent company down almost 36% so far this year the stock hit hard by disappointing holiday quarter and weaker guidance. the executive chairman saying on the call this week that the company focused on a more appropriate balance of attire. it was interesting whether or not there's direct correlation between the trends in the office or this but it suggests that goldman sachs move is reactive -- >> lagging. >> lagging exactly. >> 20 years ago this happened when business casual became a thing. gap was a hot stock. every man needed khakis. >> what is it now? athleisure >> good question. >> i will say -- >> define business casual. >> men's wearhouse and goldman
sachs. either way it's -- >> fair point. not a well run company before this meaning men's wearhouse. and joseph a. bank. there is a hot new app for kids to chat on. it's google docs educators lean on it for collaborative work but the students using it to pass notes around it says the way i used to. i never used to do that. i would get a friend to put a note in somebody else's locker. >> you can relate to it? >> i relate to the fact of my daughters saying are you doing their homework and a google docs tab open, i assume they're doing school work. >> all the schools use it for sharing? >> google ecosystem is dominant. >> this story and made my think teachers might have a nightmare situation. >> everyone has a laptop. >> just going on wikipedia to check stuff out. >> oh yeah there's a standard for that but you're right absolutely.
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emerson. consider it solved. welcome back state attorneys general on both sides of the aisle are reportedly cracking down on data privacy. "the washington post" -- which way do you want me to -- i tried to think of which way you wanted me to say it. >> the right way. >> i forgot which is which anyway, saying facebook, google and other big tech giants are about to face a reckoning. >> mr. attorney general, what exactly do you have in mind?
>> i think me and some of my colleagues are worried about this massive amount of data that's being collected, manipulated, sometimes that's misleading and ends up maybe compromising some of our privacy rights when you have these tech companies that have come to dominate the market share, they are essentially akin to the monopolies of old so we as state a.g.s are taking a look at whether we should do something and if so what should be done. >> why now this has been out here for a while now. >> as you all recognize, there's a saying that tech is the new oil. there's a higher concentration in just a couple of companies in the tech industry. as a result of that, they have the ability to manipulate the news feeds we get. they have an ability to manipulate who type of advertising we see or don't see. and then ultimately when you have companies that control 90% of the market share, once again
now we're talking to something that's akin to the standard oil of a hundred years ago any time you get companies that are that big, it becomes a threat to democracy. >> to what extent are you going to be restrained in looking at these practices by just what users agree, in the users' agreements, which are notoriously dense and long and nobody reads them. what type of breaches might you be probing here? >> that's an excellent question because that's a big part of the problem. very often people don't know what they're agreeing to and as state ags, we are the front line of protecting the consumers in our respective states. there's famous stories where people have agreed to terms and conditions where they're granting their immortal soul to some gaming company and they don't know that because they're so laborious and intense nobody
knows what's going on. in the past with facebook it took 20 clicks to opt out of something. i think as consumers we have a right to privacy we have a right to know what's being collected, how it's being collected, what it's being used for. i would submit we have a property right, a property interest in our data and information. that creates a theft to identity theft, our security and very often the companies don't seem to care. as a.g.s we have to worry about not only consumers as far as how the information is being collected but how's being stored, how it's being traded and what's being done with it. >> federal regulators are all over this right now as well. when it comes to actual action that could be taken, breaking them up, levying huge fines for violating privacy, that comes at the state level. what could you do about it >> why don't you talk to the folks at theranos where we
successfully sued them about what regulators can do talk to volkswagen when they tried to get our case dismissed in arizona state court, they were unsuccessful. we sued them and got millions of dollars back to individual arizona consumers. so the state a.g.s are the front line we are there to protect our consumers. i would submit quite frankly washington, d.c., has been at least the last decade where good ideas go to die. this is why i think you're seeing more state a.g.s concerned because of the inaction or inability of bureaucrats in washington, d.c., to do anything about protecting individual americans, their privacy rights, how they're being manipulated with news coverage and even sometimes our children and how they're being manipulated with applications and programs and how their privacy rights are being violated. >> which company specifically are you looking into
>> well, right now some of our -- we have formal investigations going on so i can't comment on individual companies. there have been some recent articles published there was a letter we sent to facebook which was a public record i will assure you no matter how big the company is, if they are violating the rights of arizonans, we will take a look at them and come after them hard in the courtroom if that's appropriate. >> mark brnovich, thank you very much attorney general for the state of arizona. final thoughts, mike a strong week. up 2.9% on the s&p, very much led by tech. >> exactly, led by the old growth stocks. next week is six months since the s&p 500 made its all-time high last september. it's been down 20%, up another 20%. the question now is -- >> can we reach new highs? >> -- can we reach new highs and on the strength of what? can we just expand price
earnings multiples >> we've got a fed meeting and a number of important earnings nike, for instance, is out on thursday all the early bellwethers. >> and it's preannouncement season at least coming up. >> thank you all for watching. have a lovely weekend. that does it f "closing bell" today. "fast money" starts right now. live from the nasdaq marked site overlooking new york city's times square, i'm melissa lee. tonight on "fast" netflix shares are surging leading the pack of faang stocks and one analyst says this is just the beginning of total domination. plus take a look at this mystery chart. it is a chart wall street cannot stop talking about and could spell big trouble ahead. fist, we start off with docks surging. the dow up 200 points adding to the year's rally the market is now on track for its best start