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tv   Closing Bell  CNBC  April 11, 2019 3:00pm-5:00pm EDT

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>> and the governance question is so critical so many of these companies that are clean tech companies have the dual share classes where one owner controls it. >> and then is social media -- does that qualify? >> yeah. all right. thank you for watching "power lunch. "closing bell" starts right now. and it is the final hour of trade. we have an interview with rich clarida. we'll get his take on the economy, inflation, trade and much more. uber expected to file its ipo after the bell we'll break down those numbers and the countdown to disney's investor day is on we'll tell you what to expect when it kicks off ."closing bell" starts right now welcome to the "closing bell."
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i'm morgan brennan along with wilfred frost. let's get a check on -- i know, you have such long legs, i thought you could glide here so quickly. let's get a check on markets one final hour of trade here everything is largely lower after starting the day higher. but it has been a pretty h. pretty narrow trading range. volume not particularly heavy. you take a look at the dow, 2691 similar move for the s&p 500 nasdaq down 0.3% and russell small caps are also trading lower. health care stocks the worst performers but we'll keep an eye on that. >> industrials, financials towards the top of the list. but let's get to sara eisen and her interview with rich clarida. >> yes, i am here with richard clarida of the federal reserve thank you for being here so let's start out where we are
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in terms of u.s. growth which has slowed down a little bit this year. what is the outlook? >> i think the outlook is we had a rely strong year last year, 3% growth and i think growth may slow a bit this year. but the unemployment rate is at a 50 year low, inflation is at our goal or slightly below so the u.s. economy is in a good place. >> and here at the meetings the theme is the synchronized global slowdown and one big question is how much that spills over into the u.s. what do you think about that >> and when the global economy slows, exports tend to slow down and the u.s. is part of a global financial market, so uncertainty abroad tends to spill over to our markets as well, so it is a factor >> and it feels like we've had a few false alarms with recessions we had the steep drop in stocks and mixed messages on the
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economy. why are we so sensitive to that? >> i'm not sure. the expansion -- in july, it will be a ten year plus expansion. longest in u.s. history. so perhaps people are conditioned to think that there is more of that risk but we don't see it, we don't see an elevated recession risk there are a lot of different indicators but the economy is in a good place. >> what happens if the u.s. and china can reach a deal on trade, what would that impact be on the economy? >> i think it would be a positive because there is some uncertainty about whether or not the deal gets done it is obviously constructive as we saw with u.s./mexico/canada i think some good news is probably anticipated but it would be a positive for the any for sure >> do you think the trump tax cuts are still fueling the economic growth? >> certainly 2018 was the strongest year for growth in a decade.tax cuts are on the booke
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effect last year but it has been a positive >> and on trade, it has been a source of uncertainty. how much do you think that the global slowdown is being caused by the trade tensions that have been he will straighted? >> i haven't raeally seen estimate of that i think that is more what people worry about that could be a problem but i don't think so far that it has been an issue. >> and some people are wondering if we are seeing green shoots globally is is too early to say that? >> i don't think that i'd use that term, but the macro data globally has been positive i think now perhaps the expectations are more in line with the data and there is some prospect for an up turn in global growth later in the year. >> you're sounding very positive to me. global growth, on u.s. growth,
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and yet the fed has made a big reversal you're patient, you're on pause. it seems like a big u-turn and the market has responded >> i wouldn't character kriz izt that way we've said that we can afford to be patient because we're operating toward our goals there has been a lot of normalization that been done and we think that it is appropriate now to be patient and step back and see how the data evolves so the economy is in a good place and i think monetary policy is in a good place. >> are you sir priced urprised market reaction? one of the best starts to a year ever >> what i would say about that is as you know, you're a pro, markets go up and down and we don't want to be handcuffed to the daily moves, but we look broadly at equities and credit spreads and volatility but i think the markets are reflecting the fact that the
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underlie momentum in the economy is good and as i've said urks we think the economy is in a good place. so i think markets also see that >> but there is no question that the move to patience was celebrated by this market. and it does also raise the question about whether the december hike was a mistake. >> i don't think that it was a mistake. i stroeted for it at the time. if i could rewind it, i wouldn't change that view the december hike was justified given where the economy was and also justified given that it was important for us to get the policy rate in the range of what we've called neutral and as chair powell indicated and i've said, the policy rate is in the range of neutral and when you're neutral, you can afford to be patient a year ago we were below neutral. >> and there is also talk that the fed is right now being bullied by the markets markets throw a tantrum after december and the fed changed its tune on the balance sheet and on the interest rate trajectory how do you respond >> i've heard that and thank you for reminding me
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on the balance sheet, balance sheet is something that we've been discussing publicly and in the committee really several meetings last year and this year and we were always going to make a decision on the balancing sheet and we made that decision this year after a lot of deliberation i think we've communicated it well obviously qe, there is not a playbook for coming out, and i think would he reach se've reso appropriately. but i think that we're in a good place and in terms of responding to are markets, a lot of folks weren't saying that in december when folks were calling for us to pause so i think that we just put the monetary policy in place that has the best chance of achieving our goals on a sustained basis that is what we're all about >> how high is the bar for a move either to hike or to cut? >> well, i think one of the virtues of having the act to be patient is you just let the data
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to come in we don't see a need for a move in either direction. we'll be getting more data we had some issues in terms of the shutdown in terms of getting data late. so it will take time to assess all that we'll get q1 gdp pretty soon so we're looking at all of that. definitely has been perking up from some of the earlier tracking estimates so i don't think that i'd characterize it in terms of a bar other than just to repeat myself and say that we're in a good place >> and what about inflation? the data there has season a deceleration >> and we have a dual mandate.sa deceleration >> and we have a dual mandate. inflation has been somewhat below our 2% objective and last year with 3% growth and 50 year low in the unemployment rate, core inflation was 1.9%. i think globalization is a factor and i think the fact that we and other central banks have been
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successful at keeping inflation low and stable, you know, makes it perhaps more difficult to get inflation up than it may have been in the past so we're looking at all those factors. and we do think that it is important chair powell has said it recently, it is important for us to demonstrate that inflation can get back to 2% and stay there. >> president trump has pointed to the lower inflation numbers and said the federal reserve should be cutting interest rates. what do you think when you hear that >> well, there are a lot of opinions about monetary policy i'm sure they are held in good faith. monetary policy is more of an art than a science so we respect that folks will have differing views but again, we have a committee of 17, full strength 19, and we make a decision based on the data and our analysis of what we need to do to achieve our mandate. >> and the market is starting to price in a cut
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does the market have that right? >> i think market pricing is tricky to interpret. i wouldn't characterize right now tprobability on what we're going to do. >> a rate cut happens when you see the yoult look outlook dete. >> i'm certainly not there for a potential recession. if you look back at fed history, there have been times when the fed in the '90s took out some insurance cuts we saw that in '95, in 1998. so rate cuts are not always associated with recession. but as i said, we certainly don't see a recession right now. >> is it harder to tune out the political noise and the pressure right now because the president continues to go after the fed chairman and fed olicy >> what i can tell you is that might, my colleagues on the committee, we're just doing our job. it is a complicated world.
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folks will have opinions we respect that. we're just doing what we need to be doing abo >> you went to dinner at the white house. what was that like >> i did attend that dinner and i will just comment that i enjoyed the opportunity and i'll leave it at that we issued a statement after that dinner which i think speaks for itself >> there is now talk of two prospective nominees, not typical in terms of their background and there is some concern about that independence because of their close ties to president trump. >> a decision on who to nominate is up to the president confirmation is unto the senate. and so i won't weigh in on that. i don't really know either of them very well and right now we have a committee of five governors and of course the reserve bank presidents and we'll just focus on that right now. >> do political views enter into the discussion around the table on monetary policy
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>> i've been there six months and i've not seen it around the table, i've not seen it in the hallways the nice thing about the way we're organized is that our mandate is in statute. there is a statute in the law that says we are charged with maximum point of price stability. we have a professional staff that does arm's length economic analysis so it is pretty eapretty easy tt >> so anything that you will be listening for in the senate hearings >> i don't have any comment on that >> let's talk about the bond market let's say we have a sustained yield inversion here how should we read that? >> the yield curve is of course the difference got ten year and the short yield. and yield curves can steepen or are flatten for a variety of reasons. prolonged inversions are rare. certainly i would pay attention if we had a sustained prolonged
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invasion of the yield curve. we're not there yet. i think the other thing that makes determining the yield curve a little bit more tricky now is the fact that because of global developments, the extra yield investors require to hold a ten year bond has been moving around a lot and in particular by most estimates in negative territory now. that means bond yields are being depressed because of a desire to hold safe assets and not just about our policy path. and so at the fed, we would have to try to educate ourselves if we did get a sustained inversion if that is due to some information about the economy or our policy, or if it is reflecting other factors in the global bond market >> and that is a question about even if the ten year yield reflects the state of the u.s. economy or more what is happening in europe. >> and as you know when i did my show before, we used to talk about that lot and certainly the u.s. is the center of the global bond
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market and what happens in europe and asia has a big impact on ten year bond yields >> with the ten year at these levels, does it suggest something to you about the u.s. outlook? >> it suggests to me that the economy is in a good place and that tmarket sees an economy wit stable inflation and growth that is solid and doesn't have any particular view right now about any change from that. again, with the proviso that bond yields can go up and down for reasons outside of what we're doing or what is happening in the u.s >> what is the biggest risk as you see it right now to the u.s. economy? >> i think as i said among the known unknowns, i think that we have a pretty good handle on that i think the risks are things that you don't necessarily have an ability to factor in. and, you know, we've gone through several potential risks. i think what i would say is a risk that is one that i think is
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not a particular concern now is that the global financial system and the global banking system in particular is much better capitalized and has much more liquidity than a decadinge inag. so you need to reflect the positives as well. >> and what about brexit they will kick the can down the road until halloween how much of an impact could that have on the u.s. economy if things go disorderly >> well, again, we have yet another extension of the brexit. there are a lot of possible scenarios there. what we can say is that we a central banks have been really focused now for some time on making sure that financial institutions are as prepared as they can be for unfortunate o outcomes to brexit
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u.s. institutions don't have a lot of direct exposure relative to their capital right now and we're monitoring if veit ve closely as are other central banks. >> thank you very much ended it with the brexit question for you, wilfred frost. >> thanks. and we have breaking news in fact on one of the topics that came up in that interview, the potential new picks from the president to join the fed board. kayla y kayla tausche has the details. >> and opposition to herman cain has stopped the nomination before it is sent to capitol hill a fourth republican senator announced that he would not be voting for herman cain if in fact the nomination were sent to the hill the reason why that rebuke from senator kevin cramer, the junior senator from north dakota is important, is because he sits on the senate banking committee which only has a margin of one
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vote they have -- effectively just one vote that they can lose and this would make cain's nomination effectively a tie he is also the fourth republican senator overall and there was only a three vote margin on the floor. so both at the committee level and on the floor, there is not enough republican support for herman cain even with the tie breaker from the vice president. so certainly that is something that the white house will have to respond to. at this point the president has said that it would be up to cain whether he goes through with the nomination but it appears that sna s thas republicans don't want this to happen >> and joining us for reaction to that news and also the rich clarida interview, sarah, great to see you and a lot to dissect let's start on the news from the potential nominees rich clarida mentioned it as
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well it is really down to the senate committees and members to decide and i guess that is kind of lost in all this heated debate. >> it is a really important part of the debate. because of course the federal reserve governor positions are long term positions. they are 14 year terms and the senate has to could be fi -- confirm these people so this is set forward in the constitution federal reserve governors must be confirmed by the senate and so there are a lot of questions swirling around the fed nominees and the attention really now focuses on what the senate is going to do with them. >> if you were voting on cain and moore, how would you vote? >> well, it is actually not my vote but i'll tell you what i think that the senate should look for in looking booth of them
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i think that they will want to look at some of the prior statements that have been said you know, if a nominee wants to abolish the federal reserve, if a nominee wants to return us to a gold standard, if a nominee feels that tax cuts have long and sustained benefits for the economy. all of those kinds of prior statements i think are fair game for the senate to look at. and the senate will look at it really in light of economic conditions then can -- the conditions that the senators know about in their object economics because of course there is a direct link between monetary policy and the economic prosperity that the fed is supposed to be bringing about in every state, in every corner of every state so that will be the question that the senators will face. >> and in terms of that, bringing it back to those
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comments from cherlaridaclaridas the economy is in a good place he seem cautiously upbeat. do you agree >> you know, i think you're right. i think it was a very -- i think he was very upbeat on the economy. i thought that he played the economy up i thought he sort of down played the potential interference that the fed is feeling from the white house. so you saw both. you heard him really down play some of the slowdown in economic demand questions of global demappnd whh h has slowed down. and she pointed out also that the fed had indeed done a hike
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as recently as december. what would that mean if things had been so upbeat and then march of course and we know this from the march minutes, the fed has indicated a slowdown, a stepdown in growth so last year we were at 3% the fed is projecting 2.1 this year that is a significant stepdown >> and we also heard from mr. clarida saying wait that the fed took out an insurance policy and cut before the data perhaps turned south do you think that is likely? what possibility would you -- >> it could be part of it. i mean, i think that the fed likes to be ahead. it tries to preempt so to speak with a small move, snag it could -- that could come along and yes, that could be part of the thinking that is going on
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here and then you also here him talk about this point of patience, right? being a point that we shouldn't look at in terms of signaling a downturn, but at a point of like hey, now we're at neutral. so let's stay at neutral until something changes. that is a different kind of twist i would say on the communication on the economy >> sarah, great to see you thanks for joining us. coming up, tesla reportedly putting the brakes on expansion plans for its factory. we have the details. how it could impact the stock. the latest innovation from xfinity
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the gigafactory. and now planning on freezing the investments partially because they lost $179 million on tesla batteries. also the report says that panasonic is not making as much of ae of an investment in the china plant. and a lot of this has to do with the model 3 and specifically whe whether or not you can be profitable it the a lower price point. you take a look at sales, and they slowed down in the first quarter, mainly because of the lack of a federal tax credit or the federal tax credit being cut in half invite united stat the s and tesla responded late today by saying that we disagree completely with this report, both tesla and panasonic continue to invest substantial
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funds into the big ga factor bt. guys, back to you. sgla. >> sounds like tesla is batting the report down, but if you were to see some sort of pull back in investment from panasonic for example, i would think that it just -- once again hammers home the focus on cash and maybe the lack of potentially enough of it at tesla >> well, it depends on whether or not you truly see a pull back in investment. there have been a number of these types of report and you hear people saying that panasonic is getting out time and again the reports have turned out to be false or grossly exaggerating what is happening in terms of their investment with tesla. >> phil, very quickly, tesla's
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bat i artery still the best out there? >> people i talk with that did the research, they have an advantage over their competitors. and that is really what you want to focus on the lower you get that, it allows you to be profitable at a lower price point. and pushing the $35,000 base price on the model 3, that is crucial that they bring that cost downs as much as possible are they making money? no but how many people are probably buying a $35,000 model 3 odds are that they are up gauging it a bit and maybe paying $41,000, $44,000. >> phil, thank you up next, a big investor proclaiming value investing wil beat growth. but there is a caveat. and the curtain finally to be lifted on the disney uspl streaming service. streaming service. we'll have a preview
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the s&p 500 moving back to the flat line right now. in terms of what is outperforming, it is industrials, financials ahead of the beginning of big bank earnings tomorrow morning. health care the worst performing sector and real estate lower. >> and time for an update with sue herera
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president trump is welcoming south korea's president moon to the white house. he was asked about attorney general barr's comments on capitol hill yesterday that his presidential campaign was spied on >> there was absolutely spying into my campaign i'll go a step further, in my opinion it was illegal spying, unprecedented spying and something that should never be allowed to happen in our country again. >> in los angeles, michael avenatti is facing 36 counts including wire fraud, tax fraud, bank fraud and bankruptcy fraud. prosecutors say he also stole millions belongs to his clients including embezzling from a paraplegic >> these four areas of criminal conduct alleged are all linked to one another because money generated from one set of crimes was used to further other crimes typically in the form of payments designed to string along victims so as to prevent mr. avenatti's financial house of cards from collapsing
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you are up-to-date that is the news update this hour guys, back down to you >> sue, thanks very much ahead we'll go back to washington for a look at global markets when sarah interviews jacob frenkel. >> and we'll talk to a value >> and we'll talk to a value investor about silicon valley. and you're still not sure if you want to make the trade? exactly. sounds like a case of analysis paralysis. is there a cure? td ameritrade's trade desk. they can help gut check your strategies er all your toughest questions. sounds perfect. see, your stress level was here and i got you down to here, i've done my job. call for a strategy gut check with td ameritrade. ♪
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the s&p large cap value index underperforming the large cap growth index this year so investors take this as a sign to buy the value stocks dip? let's discuss. scott, great to have you on. i'll put the very question right to you is this an opportunity to buy the value dip? >> well, you think you have to look on a stock by stock basis if you look at the s&p overall, it is 18 times and if you looked at therous she will 2000 and 2500, they are roughly 18.7 and 19.5. so you can't just buy them hoe
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know geniusly, you have to find individual stocks. but i still think they are out there. >> and talk to me about how overpriced you think the overall market is at the moment. is it flashing very large warning signs to you to sell or just medium sized? >> no, we always stay fully invested because our average pe is about 11 to 12 in the portfolio. but the historic norms since 1946 is about a 15 multiple. there are a couple things here though corporate earnings will probably be flat, down 3% in the first quarter. and i'm being generous i'm giving it 5% for the whole year so the yjury is on out how stron corporate earnings will be we still haven't resolved the trade issues and real gdp is slowing worldwide. so there are some warning
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signs .not markedly overpriced like in 2000, but still a couple multiple points expensive. >> but what about the fed's recent pivot, does that make you more relaxed overall with the valuations we have at the moment >> yes, the it ten year is about 2 aboutmen 2.5% but i wish the president wouldn't politicize the fed. i don't think that we should cut 25 basis points yet. i mean inflation is somewhere around 1.9% to 2.1% this is around the fed goal. but, yes, it will be accommodative. i don't see any increases in the fed funds rate occurring 2019. >> i want to go back to this -- this idea of value investing and i realize that you are saying don't look at it broad based, you have to specifically pick stocks here but the fact that we did have this fed pivot and the rates slow larry kudlow saying he doesn't
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think that rates will rise in the foreseeable future, maybe never in his lifetime. that has certainly helped sort of reignite the run we've seen in growth stocks so why would that not continue to work if we do continue to see rates low? >> i agree with you. i look at the faang stocks here to date and they are all up 16% to 30% plus on the year and a lot of it is through etfs. but we've seen this movie before from 1999 to 2000. and i know that value has systemically lagged the last two years. when we talk about value, we're not buying below book, we're buying companies with double digit growth but instead of paying 20 plus multiples, we can buy them at much lower pes >> like what >> well, first one is synnex
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it integrates things for the cloud, soamazon and facebook. selling about 8.8 times expected earnings doesn't get much respect earned 16% return to equity. i had the management in and they promised that they will knock $400 million off the balance sheet with free cash flow generation so it is a surrogate play on things like cloud computing. another company that is also a surrogate play, sivb, silicon valley bank shares they grow net interest income about 15% earnings per share and will grow at about 13% return on equities almost 21%.
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and it is very clean reserved 3:1, nonperforming assets and other real estate owned. so a very cheap stock. they have a bulletproof type of balance sheet over 35% of the assets are in u.s. treasuries. and agency types of cash and it is a surrogate play because half of their lending they work with private equity. so it is not so much an early stage loan directly, they loan to the pcs that -- the vcness this area. and if you look, they have very low loss provisions. so awfully cheech aap >> 21% as well i'll have to remind jamie dimon
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of those scott, thank you >> thank you for inviting me appreciate it. we will speak to you again soon i hope. meantime breaking news, on boeing phil lebeau has it >> take a look at shares at a speech in dallas, texas the ceo dennis muilenburg provided an update in terms of where the company stands for fixing the software for the flight coal system of the 737 max which has been grounded for nearly a month. here's what he had to say. >> overall our team has made 96 flights totaling a little over 159 hours of air time request this updated software. they will conduct additional tests and production flights in the coming weeks and we continue to demonstrate that we've identified and met all certification requirements >> while boeing is moving closer to submitting that fix along with changes in pilot training to the faa for certification, but perhaps in the next couple weeks, the faa will be meeting
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tomorrow with my lot represe-- t representatives from the airlines and as well as the ntsb givingen a update on what they would like to see from boeing. so a little incremental news, but nonetheless significant that we have an update in terms of how much flight time the updated software has received so far >> phil, significant i agree and also gives me a chance to ask about him, how much pressure is he under given his handling of the situation is his job under threat at all >> i don't think that it is under threat, but definitely under a lot of pressure. this is at cash cow for this company. this is what provides the vast majority of its kaub flcash flo they need this plane to be flying again but they have to crank until deliveries anytime you cut production, it is a huge deal they went from 52 to 42 when the
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market was expecting them to go up to 59 >> phil, thank you up next, disney holding its investor day the company expected to release details about its new streaming service. we have what investors need to know, when when he come back
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> disney kicking off investor day. and david faber is there >> reporter: it will be a big day for disney hard to keep track of time at least for me, but i think that we're less than an hour or so away -- a little more than an hour or so away from the beginning of presentations the planning for t plan for the future of the company in terms of moving from one ye one ecosystem to another the bundle of programming that has been so profitable for so many years for so many of the entertainment networks and a
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move to direct to consumer universe that we know so well. some of the key questions here though are how hard do you pull off the band aid if you are bob iger there is no doubt that disney will see a decrease into its cash flow. costs in terms of are marketing, technology and foregone license fees that they would receive from the likes of netflix as they start to pull their programming off of other platforms. but the key is, can you convince your investor base to look beyond that and say yes, the world has changed and we're grabbing the future to make sure that we have a future here at disney and that is what it will be my expectation is that they will be fairly transparent today and give us a good deal of numbers
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and things for the investment community to grab hold of that will help them figure out the near term and longer term possibilities that disney is talking about and the profits that it will be able to accrue are we going to get costs? most liskl likely. a price on the service yes. see how it works absolutely so it is a big day for this company and not just this company, but its excess tore, whether they be netflix or those who are still stuck in the old ecosystem. how hard is iger going to attack it is one question many have everybody trying to figure out the future >> david, it seems like there are very high hopes and high expectations around the details for disney and the direct to consumer offerings you were talking about the
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increased costs and the impact on earning earnings do you think that is already baked in >> that is a key question. over the last few day, we've been detailing all of the upgrades, a lot of analysts getting on board with the belief and trying to understand what the impact will be near term but really believing in the longer term story of direct to kirm for d consumer for disney. and it is not just about disney plus, they will also talk about espn plufs a plus and hulu. and frankly the market will be closed, but tomorrow we'll have a better determination as to whether they surprise people at all either way >> david, we're looking forward to more from you thank you. and good luck staying on top of the time difference there. you can catch david's interview with bob iger tomorrow on "squawk on the street" at 9:00
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a.m. >> just need to remind him we're in the middle of the show that he loves to fill in on david loves it particularly on a friday >> only on friday, wilf. and up next, a top unieheikst tells us the two cotrs les in the emerging market space.
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xfinity, the future of awesome. just 6six minutes left to gd stocks are moving back to the flat line. joining our closing bell exchange, diavid and rick. good afternoon and david, i'll start with you the run we've seen in the u.s. equity market seems to continue to be a focus around china, u.s. trade talks. the fed being more accommodative. and now the start of earnings season what do you see as the next major catalyst for a move either up or down >> well, absolutely you are looking now for the effects to
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come through and to affect earnings strongly in earnings season i think that we see the u.s. obviously having rallied up significantly. but i think we're more excited about the kind of term urn we si the asian markets. we see a bottoming at some of the economic data including policy support and some of the political risks in both economies. >> rick, what do you make of the ecb today? it did have a bit of a negative impact on u.s. committee mequits >> they did a little bit, but all things considered, when we talk about inflation in the states, just consider if we had a rampant rise in inflation think about how other central banks like japan and europe would have to deal with it they would have to go more negative on the short end and the long end, they would have a steep curve and mostly likely be entirely negative. i guess the point is no matter
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you how things turn out or how accommodative mario draghi can be, its funneling down to some generic bond where they issue them i don't know how the market would react. but th but this is the eighth session in a row that it is two basis points on either side of 2.5%. >> all right up next, back with the close
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♪ don't get mad. start investing with e*trade. welcome back to the "closing bell." just under one minute left of trade. there is the intake delra day ct comments out of the ecb, yields ticked up. going to show you the half screen we're essentially flat as we approach the close >> yeah, narrow trading. low volume low volatility need more volatility but not for ipos big moves up you got hot space, that
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cybersecurity. you got a ht stock mot stock mad obviously uber the big one >> and boeing is the top stock on the dow after the comments from the ceo the dow essentially flat at the close. but boeing up 1.4% dow flat, the russell just negative the s&p is just positive up by one basis point at the close. that does it for the "closing bell." morgan, back to you. welcome to the "closing bell." i'm morgan brennan and i'm along with mike santoli, senior markets xhcommentator. here is how we're finishing the day as stocks settle off the lows of the day. the dow finishing right around the flat line, down about 14, 15
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points 26,142 s&p 500 finishing also flats 2888 and nasdaq be finishing down 0.2% and russell 2000 also finishing slightly lower industrial and fns stocinancial. health care and real estate underperformed you'rer could file i uber could file its ipo any minute now and we will get reaction from former minneapolis fed chairman who will be here at post nine with us. but first, let's begin with a summation of the markets mike santoli >> pretty calm market. holding steady here. looked like it was going to ease back earlier for more than a week right now, we've been basically at this same little very narrow range in the s&p 500.
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the question being have we gotten as far as we can on the fed and what can earning telling us >> and we'll go into the broader markets in a moment, but breaking news on you beuber leslie picker has the details. >> and that filing is imminent only once every few years do we really see a confining deal like uber the ride hailing company is sure to capture the markets and the media's attention because of its size, because of its complexity and because of its brand it is programs the most hotly anticipated ipo ever having gone through about two dozen rounds of private fundraising but none of them open to average investors. today's filing likely hundreds of pages long. we'll review its financials and investments and current stakeholders reportedly morgan stanley and goldman sachs are underwriting the deal
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the filing will be available for investors to read for at least 15 days before uber can set a price range and start its official road show of meetings with leslie, thanks for that. we look forward to hearing the precise numbers. let's talk more about the markets. stephanie and mike are here. just to go back to the broader markets, treading water for the week as a whole. >> and one, we're just holding right near the highs and not really giving back much even though sentiment is starting to look a little confident about. i wouldn't say overaggressive. and again waiting for the earnings inputs. i think today was interesting because the banks kind of rallied slightly ahead of their earnings tomorrow and some of the stuff that has recently
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backed off like some software stocks >> and speaking of ipme menmen o tech companies that went public today. up 59% and the other 36%.os, two tech companies that went public today. up 59% and the other 36% how does that add to the conversation around these company? >> i think since lifyft was not that successful at least initially, you needed to see some follow through from some of the other companies. these two stories are dynamic growth stories value and i goes are a little rich for me, but they are dynamic. so we'll have to see what happens with lyft. i've always said it is hard to buy ipos because you don't know what the trading action will do to the stock but i am glad especially for the capital market stocks. and i think that -- so it is very much confirmation but today was a little bit about
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themacro we had a ppi that was pretty good and bank of america, the credit card data was released and it showed a pickup in retail sales spending in march. and micro, we had a couple earnings that were very good numbers. so the real crux of the story comes tomorrow >> and on that note, how are the banks set upcoming into this earnings season? >> i think people are kind of fatigued with the story. in other words, i don't think that people are there saying that they are cheap, they will outperform we have to own them. i think expectations are pretty low. expectations implied by their valuations seems pretty low. so i always think banks go one way and then it is never a consistent story >> i agree last quarter we had expectations low, they were kind of beaten coming in off underperformance
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and then the last three months are still underperformance so unless a massive blowout beat, whether the market is really ready to give them that kind of -- >> i think right now you'd have to make the case that effectively the stocks are pricing in a fed rate cut which would in theory be bearish no the banks. if you don'ten th think they wit a cut, then maybe that is an opportunity. >> and on that topic, rich cl p clarida spoke with sara and she has some of the highlights >> and global growth certainly all the stock right now and the slowdown we are seeing in many parts of the world but as far as the u.s. outlook, according to the vice chairman of the federal reserve, looks pretty upbeat. listen >> i think the outlook, we had a really strong year last year 3% growth. and i think growth may slow a bit this year. but the unemployment rates at a
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50 year low, inflation is at our goal or slightly below so the u.s. economy is in a good place. we didn't see an elevated recession risk there are a lot of different indicators but as i said, the economy is in a good place one of the virtues of having the ability to be patient is that you let the data come in, we don't see a need now for a move in either direction. >> and on that point, he wouldn't give us a clue into which way they were thinking would come next. they are truly in this patient moed but i will say, and mike santoli did a lot ofof work looking bac clarida said that they did cut in history preemptively to sort of protect the economic recovery back in '98. so just the fact that they are thinking about that and on be serving that is sort of
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interesting. but when i asked him about the market pricing in a cut,observi interesting. but when i asked him about the market pricing in a cut, he wanted to give the impression that they are not being bullied by the markets >> and we came into this with the imf globe hal growth downgrade. and yet he said that we could women see a global growth ex-u.s. pickup in the second half of this year. what is the sense of all the people we've been talking to the downgrade was a sort of backward looking catching up with the data that we've already seen >> clarida was reluctant to use the word green shoots. i used that permanent. but his answer indicated that they were seeing some early positive signs in terms of the global economy and furthermore, he said that if the u.s. and china were able to reach a trade deal, then that
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would represent some up side for the u.s. economy we've heard draghi saying that the trade tensions and the tariff threats have hurt confidence and global growth so i will say that there is a since here in the discussions that we're getting that global growth has slowed and that it has been a sink troh nized slowdown which is a reversal from the last few years, but there is no resense of alarm that we need to have extreme policy measures.al sense of ala that we need to have extreme policy measures. haven't heard talk about a recession. and the outlook for the u.s. from clarida, from mnuchin, from the new world bank president, that the u.s. is actually still outgrowing the rest of the world which is looking up. >> great stuff, sara, thank you. joining us now is former minneapolis fed president here at post nine welcome. >> thank you for having me on. >> in terms of those comments
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from the vice chair, the fact that he did seem upbeat about the u.s. economy and monetary policy in a good place, the economy here in a good place, do you agree? >> i think my benchmark outlook and the vice chair's align pretty well. i think my concern is that the fed maybe doesn't have as much ammunition to fight down side risk and i think that makes a more persuasive argument for taking out the insurance that sara was talking about. in '98, they took out insurance when they weren't close to the zero lower bound now we're much closer so you have less ammunition to fight recessions if they were to occur. so i think that makes a more compelling argument for thinking about an interest rate cut >> but i think the ammunition is versus an ecb or whoever who we heard from today, in that sense again when you consider where the rest of the world is, does
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that make you think the insurance policy cut is needed more or less and my apologies we have breaking news on you been 00 uber leslie >> the per spe peexchange listee new york stock exchange under the symbol u-b-e-r they have listed with a place older amount of about a billion dollars. plus a source says that it will be closer to $10 billion by the time that they go public they also disclosed some financials for 2018 which they have disclosed in the past similar to those, they said that they reported about $11.3 billion in 2018 which is up quite substantially from the $8 billion that they reported last year two years ago.
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losses from operations, about 3 bhld which has narrowed from the $4 billion that they reported in 2017 we'll speed read this and fill you in >> leslie, thank you very much deidre, i guess the key difference from lyft is that the loss is narrow, not widening >> yeah, that is a good point. but i would also say that revenue we're seeing at $11.3 billion. and uber has been making its finances at least lot of them public for quite some time so while the losses are narrowing, its revenue is also glowing but at a much slower pace than lifyft.
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and i'm going through it right now, but one of the first things i did was control find and go to the risk section and something caught my eye here, we have incurred significant losses since inception. no surprise there, include management united states and other major markets. we expect our operating expenses to increase significantly in the foreseeable future and we may not achieve profitability. remember this is what lyft grappled with its entire road show and avenue tfter trades this pao profitability is what investors have so many questions about so you are seeing uber hit a similar sentiment. i'll bring you more as i get it. there is certainly lots to unpack here. finally getting numbers for the first time on uber eats. and when we compare the two, be careful because uber eats as its platform core business includes eats and ride sharing. so we'll break it down and some of the biggest shareholders, we
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already have a few names, softbank, of course. benchmark a vc firm. travis callanick so we'll bring you the names as we get it. >> deidre, thank you happy speed reading. mike santoli, so losses narrow, but also the rate of top line growth slowing what will matter more to investors? >> the rate of top line growth will slow because of math. that is probably understood. but the question is at what pace they emphasize the number of trips. they have doubled the number of uber trips in the last year or so to 10 billion and what they will emphasize is the size of the potential market so the ceo letter says we represent less than 1% of all miles driven so that is the story will investors be willing to say
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we have had no way to play it through an investment directly until this point, so we have to play this way. that is the fundamental issue. >> this doesn't make lyft more expensive, it looks a little cheaper on uber. >> and you can spin it a lot of different ways for sure. there is more up side, more growth, more market share that they can get not nearly as diversified. the question is, is what is the growth rates for revenue so you asked the question about what is more important, to me it is a growth stock. you want growth, right and you have -- for uber,ed that 70% top line growth a couple years ago to now it is expected to be about 25%. so what are you willing to pay for that deceleration and then
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stabilization. with uber, bookings are growing 11%. so again, what are you willing to pay for that kind of growth i do think there is a market for these stocks obviously. but we have to see more details, more results, more consistency and they have to prove that they can deliver. that why is why i want to see f they can execute >> for netflix, people think 250 subs globally, that does the trick. we don't know that number for uber >> business efficiency will be one to watch >> and they are saying that they will expand their margin, but they are also investing heavily. so which one will win out. that is why top line is even
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that much more important >> and lyft down from its ipo price and we'll discuss more again about uber coming up let pivot back to the macro. >> thanks for strapping on your seat belt. >> back to the macro we were talking about the need for an insurance policy cut. do you think that is likely? is the fed warming up to that or not? >> i think to me when i listen to skrvice chair clarida, he sa we are in patient mode and so that significant if i news that they have tosee something pretty big in order to cut i think it would be great if they were to communicate about what they are looking for. i'm sure there is data that would prompt them to raise rates
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as well. i think they thoo xhshould comme more about their contingency plan >> do you think the gauge for how the fed is looking at as setting and calibrating for inflation needs to be adjusted >> no, i'm pretty comfortable with how they are measuring inflation. it is important to be consistent and i think that going to core pc inflation and sticking to that, and then using core as a marker for where you think headline is going to go, i think that has served the fed well bad news is that they haven't done well in terms of hitting their target, but i think that is the fault of the policy >> what is your take on the global growth outlook? mr. clarida seemed pretty relaxed about it >> i'm a little more concerned than he is
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i think the u.s. remains a relatively closed economy. we certainly have to keep an eye on what is going on overseas but the basic impulse for u.s. growth remains what happens here in the u.s and so i think that as a policymaker in the united states, it makes you a little more sanguine. but i think there are some risks over there in both europe and china. and the fed should be thinking about those as they formulate policy certainly >> have you been surprised by the core cpe you mentioned inflation is really nowhere to be found anywhere has that surprised you >> i would say i'm less surprised than some, but still surprised. i thought that we use see a very low unemployment rate without much inflation, but i continue to be surprised by how much employment growth we are able to generate, how low unemployment can go sounds bad, but that gives me as you can have more of a growth without generating inflation
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so i've been surprised, but it is good news and it means that we can facilitate more growth without risk >> and your idea that perhaps the fed should consider using some of it limited ammunition to forestall a recession instead of hoarding it, does it conflict with pi with people on the committee who believe that it is above trend, it is good, it is tightening i wonder what the dynamics are in temps of h terms of how the would get to that. >> and i think what we heard is that you have to see some kind of lowdown in growth.get to that >> and i think what we heard is that you have to see some kind of lowdown in growth or softening in inflation. either one of those i think would lead them to start to consider a right cut what they haven't been articulate enough about is what they would have to see to prompt a rate increase.
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if you look at the pricing, there is no pricing of any kind of increase at all in 2019 that seems pretty exextrestreet. so i think that the fed should be communicating a little more about what they would have to see in the in-flaiflationary pie to get them to raise rates >> all right we'll have to leave it there thank you very much. up next, much more on the fed's independence and concerns about slowing global growth when we hear from sxwrak jacob frenkel. >> and we'll discuss whether the official unveiling of disney plus will be a positive catalyst for the stock and negative one for netflix. and tomorrow the interview with and tomorrow the interview with bob igerit's about technologytr.
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america's most advanced internet. internet that puts you in charge. that protects what's important. it handles everything, and reaches everywhere. this is beyond wifi, this is xfi. simple. easy. awesome. xfinity, the future of awesome. a news alert on j. crew. >> they are including a possible ipo which if pursued they say it would be completing it as early as the second half of 2019
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the goal would be to maximize shareholder value, position both j crew and madewell brand for long term growth no secret that j crew has been facing a number of challenges. so the company saying that it is looking to ready strategic options, potentially a possible ipo. and in addition it that news, saying that michael nicoholson has been named interim ceo of j crew group, that is effective immediately. back to you. >> thank you very much mean time let's get down to washington, d.c. where sara has another guest at the imf >> i'm joined by a veteran of the imf world bbank meetings, jb fra frenkel. you have been to 66 imf bank
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meetings >> you are making me old >> so you are a good person to ask about the temperature of the meeting. it seems like everybody is talking about the global growth slowdown but nobody seems particularly worried especially about the u.s. is that how you see it >> the word i heard most was moderation, to make sure people understand that there is growth, it is moderated relatively to what was last year but it is clearly not in the direction of a recession or anything of that type. and there are many good reasons to explain why growth should be moderated. some are domestically, but many are internationally. the international environment is less positive. europe is having its problem the trade negotiations with china are producing a lot of negative sentiments in the market >> is that hurting growth, the trade tensions >> it helps accepsentiment.
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and if you ever want to gauge about how businesspeople look at it, just look at every piece of positive news about negotiations, you will see markets go up. and every piece of negative, you will see are markets go down because people understand it is beyond trade it has to do with the ability to govern a complex world and therefore when the two large giants of the world, china and the u.s., are engaged, markets and the economy needs to see them communicating and reaching an agreement >> we've heard some positive news here on that front. we will see. really wanted your thoughts on monetary policy right now. we just heaad rich clairrida wouldn't give us a clue as to a fed move what is your sgeskts tanexpectas >> i think that the next move will be a hike but as the chairman indicated,
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it is data dependent but the fact of the matter is we are now coming out of ten years of extremely low interest rates all over the world fed was the first to start the normalization process. >> and you were a big proceed p p proponent of >> because it can affect the economy in many areas and especially financial markets will be much more vulnerable >> and are they still distorted? >> yeah, relative to the long term the issue is the timing. is this the delicate balance so i think that when the fed announced the departure from the original path, 2019 was supposed to be to see more hikes and 2020 even more. and so the fed decided to slow
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do down the words were patience. but the word patient means let's see when -- how the dust settles. because there are externlg al issues that are unsettling. we need to see what happens with brexit, what happens to the trade negotiations you have italy and europe, turkey, you have a lot of -- many reasons to be patient to see how the dust settles. but by and large, i think when we get into 2020, we will see hopefully the growth resumes, resumes means going back up. and then with it the normalization. >> and i really want to get your thoughts on whether we should be worried about central bank independence you've written a lot about the topic. we have two potential fed norm knees. it isn't look like herman cain will get the votes stephen moore still potentially out there. does it mark a serious departure
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and should people be concerned about it >> i think you should always be concerned central bank independence is one of the most important pillars of the economic policy that can generates stability and the an seaccepts absence can generate instability. being fed governor or being in general a central backer respect, i banker, it requires professionalism. it is not a medal for somebody who supported somebody else. the stakes are very high you don't give the license to fly an airplane just to a friend you need him to be a professional and the economy is a very large complex airplane >> seems like a no vote from you on steve moore thank you very much. always good to get your thoug
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thoughts >> wow, 66 imf meetings, that is impressive >> sara will get there before too long up next, weekly jobless claims dropping to a 50 year low. we will look at whether that will give a stock to the stock market >> and jeff zobes is challenges retailers to match his investment ffrs at&t pedge-to- intelligence, covering virtually every part of your healthcare business. so that if she has a heart problem & the staff needs to know, they will & they'll drop everything can you take a look at her vitals? & share the data with other specialists yeah, i'm looking at them now. & they'll drop everything hey. & take care of thi yeah, that procedure seems right. & that one too. at&t provides edge to edge intelligence. it can do so much for your business, the list goes on and on. that's the power of &.
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. unemployment hitting new lows and mike isn't tolly lisantolis with more. >> unemployment claims and it is a relief this is the four week achlg of unemployment claims. the weekly was below 200,000 which is a 50 year low.verage of unemployment claims. the weekly was below 200,000 which is a 50 year low and back in late november, i highlight this hed this same cht it looked like claims were bottoming. it is a leading indicator of a softening economy. looked like it could have been
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peaking. we've steen theen that it has gw and that is a good sign. and this is more than 50 year trend, the last time we were in anywhere near this vicinity. so that shows you even if we turn higher, it does not mean that the economy is in weak shape 37 but it shape. but the trend change is what matters. last time we had before 200,000 was even before i was around, 1969 >> mike, thank you and time for the news update with sue herera. a federal grand jury returning an indictment charging gl gregory craig with making false statements and concealing material information about his
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being aactivities on behalf of ukraine. and congress is targeting illegal robocalls. it has the becoming of attorneys general from every state, consumer groups and telecom companies. more than 48 billion romo caboc went to mobile phones last year. >> stop it before they reach consumers is especially important because unlike legitimate callers, they will not be deterred by the prospect of enforcement knowing that they will be very difficult to locate >> israeli space crafts has failed in its attempt to make history. they contact with earth moments before it was supposed to land on the moon. it crashed on the lunar surface. the prime minister mr. netanyahu was on hand and he said try, try again. we'll keep you posted on that one. they are expected to put up another lunar module next year
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back to you. >> space is hard that phrase exists for a reason. >> absolutely. >> still made some history nonetheless. sue, thank you very much up next, jeff bezos challenges retailers to match its $15 minimum wage bank of america went up to $20 this week. we'll discuss that coming up let's stop talking about diversity, and actually be more diverse. as investment management professionals, let's measure up. cfa institute. your but as you get older,hing. it naturally begins to change,
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. welcome back amazon jeff bezos challenging rival retailers to match or beat the company'spay and benefit policy and making your closing bell debut? welcome. >> thank you and that's right, jeff bezos including a challenge this morning. today i challenge our top retail competitors, you know who you are, to match our employee benefits and our $15 minimum wage do it. better yet, go to $16 and throw the gauntlet back. walmart tweeting claiming that amazon paid no income taxes for the last two years adding hey,
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retail competitors out there, you know who you are, how about paying your taxes. walmart also adding, fwiw the vast majority of our warehouse associates have been making more than $15 for a long time and they still get quarterly performance bonuses. referencing the recent change to amazon compensation policy because they cut bonuses for some workers last week cnbc spoke with walmart ceo who explained that while their minimum wage is $11 an hour, their average employee makes $17.50 plus benefits >> we have great health care offers, question hawe have chan policy, birth mom can now get 16 weeks paid leave it is not injuries starting i think with a, it is the whole thing. >> and target announced that they are raising its minimum wage to $13 an hour with a goal of $15 by 2020
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and with the nation's low unemployment rate, we could see more similar announcements in the fun. back to you. >> thank you for that. and i'm not a fan of this. i think be competitive on your job, sell products, but don't try to tell other companies how to run their company bottom line. i don't know that is really not his place to say. >> among the things that you could compete on, it is probably productive for the world at large if it becomes part of your brand. >> and then that is a slightly different topic 37 it is a goodwill topic rather than trying to embarrass your competitors. do it for yourself, but criticize. turns out some of your private conversations may not be so private we'll exaipln. and hulu could be headed to
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more details on uber's ipo including risk factors >> and i want to share with you some of the more equal qualitative nuggets. the number one risk that they cite is that they operate in a highly competitive market for personal mobility which we know is ride shari ing largely, meal delivery and low goods ticks
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they say that they have lower service fees and other incentives offered to drivers.g. they say that they have lower service fees and other incentives offered to drivers. it has resulted in significant losses since inception and they don't see that ending anytime soon or flipping to profitability. they did say that their business would be impacted if their drivers were classified as employees instead of independent contractors and that they needed to really maintain a critical mass of those drivers in order to be successful and they highlighted workplace culture as a risk factor and said that operational compliance and cultural challenges are something that they confront with their business and that of course also feeds into the risks that they will continue to maintain brand and reputation for their company. now, they say that platform users, to that point, may engage or be subject to criminal violent or inappropriate behavior which we have seechb some news stories as of late on that front and they also discussed some of their investments that are risky
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and talk about the fact that they may fail to successfully commercialize autonomous vehicles and they may be subject to data privacy breachesen other regulatory risks they detail some of the use of their proceeds and we told you earlier could amount to about $10 billion, some of which will be primary sold by the company and some will be secondary. and they said that they plan to really create a public market for their stock which we see a lot out of sully cof silicon vae companies. they may use some of to satisfy some obligations related to the restricted stock options for compensation and they also have a really interesting one time cash driver appreciation reward of about $300 million to 1.1 million qualifying drivers and they are also doing the directed share program like we saw with lyft where they reserve a portion of the shares for
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drivers. but that will be under the discretion of the morgan stanley and the exact amount has not been disclosed going back to the inside shareholders, we don't know which ones are selling that 14should come out in the nx two week travis kalanick owns about 8.6% of shares. >> leslie, thank you very much fast reading you've done there in the last hour here where some other stories on the "closing bell" radar today amazon reportedly hired thousands of employees around the world to listen in on what consumers are saying to their alexa digital assistance they say using humans help improve the device's ability to respond to commands. it is one thing to use how it works, but this also says that they use internal chat rooms to share files when they needed help passing through certain words.
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or came across an am mou amusing recording. and clearly then not just record fogts machines but actually humansing a cessing the value of what is being said by people which i'm assume consumers don't know is happening. >> yeah that is bothersome and raises the question of disclosures and how consumers specifically, whether they understand how all of that delicate information is being used and analyzed. all right. and marijuana or as we now call it cannabis could soon call things like corn and wheat on the agricultural futures market. new leaf data services, a connecticut based firm, says it is currently in talks with a global exchange to talk futures contracts for the budding industry i mean this kind of seems like a no-brainer that you would have somebody trying to launch a commodity future around cannabis i think that they are also
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looking at hemp specifically given the fact that it is a cash crop and it is becoming widespread folks will want to hedge this. >> it will bring people up the street into to have -- it's goto be a standard crop type for any of these futures contracts to work meanwhile, hulu eyeing a new series with kate mack kinnon set to play elizabeth holmes it would add to the growing trove of theranos scandal and the feature adaptation of the best-selling book bad blood and i can't decide if hollywood and media in general is advertising for more iterations of this story. it's captivating people. >> everyone raved about that. >> it's obviously an amazingly compelling story, and i think -- silicon valley comes up and sees
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something that resonates with people we shouldn't complain that in general the idea of business stories reaching mass market and it's always usually the disaster story, annoyingly. >> that have legs, exactly. >> coming up, more on uber's ipo. mo treo come from the s-1 and a mo treo come from the s-1 and a lot more here on "closing bell." and create the future that's most meaningful to you. which means you can retire, without retiring from life. having the flexibility to retire on your terms. ask your financial professional about pacific life today. up nt, wllexe' have much more on uber's ipo
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you set it. nasdaq. rewrite tomorrow. welcome back let's have a look at how we finished the day on wall street. the s&p 500, the dow fractionally lower and the dow down 0.2% and the news was mostly negative and a rally into the close and that meant we ended the day, health care the only sector down 1.2% and industrials and financials led the way higher. >> we're getting more details on uber's business and market shares around the world. there are a number of them and deidre has the details
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d? >> hey, morgan we have more of a breakdown for the first time let me first talk about uber's different businesses ride sharing obviously made up the lion share $9.2 billion and uber eats is more than expected and made up $1.5 million in revenue and the other mostly freight at this point making up $373 million of that total $11.4 billion revenue and you mentioned global footprint let me run you through that. its global reach and let me talk about revenue per region in 2018 and the biggest region $6.1 billion in revenue and latin america comes in, after europe, the middle east and africa with asia pacific the ride share companies in terms of its minority affiliates and this was also pointed out in its risk section and the company saying it doesn't necessarily
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have control over these and it's a pretty big stake in each of these companies and russia, remember, sold its business to yandex so it has 38% of that business and 15% of the ride hailing company in china and 23% of grab. we want to talk about contribution margin because this was an important metric for lyft and we can't compare them because the two companies have different ways of calculating them, but they are a signal of business efficiency, and we can see that over the last three years, uber has increased its contribution margin in 2016 it was minus 23%, flat in 2017 and in 2018 9% and this is what ube would point to to say that the business is becoming more efficient and the business model does work. back over to you guys. >> deidre, just quickly, from those other bets and business lines like uber eats, are we
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getting an indication if they are more or less profitable than ride sharing or if investors might give those parts of the business a slightly better or worse multiple >> i think that will be a lot of -- that will be to do with a lot of the questions on the roadshow i know that uber eats has been taking a lot of investment and they're still in grabbing market share mode as well as freight and other things like atg come is their autonomous car unit again, uber eats and ride sharing are part of this core platform and other bets which still makes up a very small amount of revenue, but the company is investing heavily in, so it will be interesting to see how they paint the picture there because they are spending so much money, yet it's bringing in so little revenue so far >> okay. deidre, thank you very much for that tomorrow i'll certainly be looking at the bank's earnings about 6:55 and wells fargo, 8:00
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and they've underperformed significantly for the market and not an impossible environment to beat. >> the market will extrapolate and seize it at the right time of the cycle to grab a hold of these big ones. >> tomorrow on "closing bell" the cfo of wells fargo will join us to discuss the outgoing ceo as well as the earnings tomorrow on "closing bell." that does it for today >> great to be here, and we're going to send it over to times square because "fast money" begins right now. yep. there we are "fast money" starts right now. live from the nasdaq marketsite overlooking new york city's times square i'm melissa lee and our investors are mike tapper and guy adami and wall street is bracing for earnings season and there are two stocks that could be big winners and he tells us the name as it gears up for what could be a $100 billion public offering we will bring you al

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