tv Closing Bell CNBC April 17, 2019 3:00pm-5:00pm EDT
>> the green machine is number two. and there you see -- >> and bridgedotown ladies camei last >> he's a knicks fan >> thank you for watching "power lunch. "closing bell" starts right now. welcome. it's the final hour of trade i'm wilfred frost. >> i'm sara eisen. china's gdp coming in stronger than expected. jack lew is here to discuss what this could mean for trade talks. and pinterest pricing expected after the bell. why one analyst is saying to hold off on this ipo >> and is las vegas sands feeling lucky? we'll bring you the casino giant's earnings as soon as they are released "closing bell" starts right now.
♪ welcome to the "closing bell." just over 59 minutes left of trade. let's check in on the markets. it's been a thin range today the dow, the high was plus 48. the low down 61. it is currently essentially flat, up a point or so s&p is just lower. nasdaq also just lower the russell is tracking more meaningfully down 4% in terms of the sectors, tech, energy and staples higher. health care down, a healthy 3% and real estate also down a couple percent >> another guest coming up this hour, olympic swimming sensation michael phelps on his endorsement deals and, of course, watching tiger woods at the masters. that was sort of a secondary story that came out of the masters. all the memes with him in the background of that amazing 16th hole >> and on that as well, apart from just being one greatest of all time looking on, cheering on one potential greatest of all time climbing back, if he crosses jack nicklaus' major title but a clear nike tick for
tiger woods and under armour for phelps perhaps the greatest olympian of all time certainly the most medals. depends which discipline the other person who rivals him in that title, usain bolt who has been on the show before. >> we only talk to the top of the top of the olympians >> just the g.o.a.t.s. earnings reports moving markets. bob pisani is on the exchange floor. i'm watching morgan stanley, sara is watching pepsi and julia boorstin is watching wall street's reaction to netflix bob, let's kick it off with you. >> ibm has been a real problem for the dow throughout the day united health as well. i want to show you right now, just off the lows here down $5.82 that's 40 points for the dow and ibm is bucking the earnings trend. most companies are beating earnings estimates significantly. ibm only beat by 3 cents
$2.25. the problem wasn't on the earnings it was on the revenue side once again below expectations. they've seen revenues lower than expected now three straight quarters essentially overall forecasting for revenues also below expectations problems in the mainframe and stronger dollar area that's been giving them problems so again, revenue down three straight quarters. you want to get an idea of what we're talking about. they did $79 billion in revenue two years ago. this year in 2019, they'll probably do $77 billion. they're still going in the other direction and that's the main problem, how to get the revenue growth there have been help for them. the cloud pivot. that is the big hope for them. a lot of people still believe that will provide salvation. but so far, it isn't enough of a revenue boost. guys, back to you. >> bob, thank you. morgan stanley rounding out the big bank numbers with numbers hitting before the open. what's the takeaway. you dug through this one >> the earning saw soft capital markets performance offset by
strong wealth management and decent expense control all leading to a strong eps beat the trading performance down 15% year over year put it toward the bottom of the table just ahead of goldman's down 18% decline. investment banking revenue of 1.15 behind expectations where most rivals had beaten this quarter. goldman sachs registered $1.8 billion in investment banking. but the ceo was optimistuc of a robust year ahead for m&a and also expects a bounceback for ipos in the second quarter saying they were pushed out, not canceled in q1 wealth management strong $4.3 billion margin 27.1% both of those ahead of expectations expenses were kept in check with the ceo said was prudent and would be likely to continue. >> the world remains uncertain i'd love to think the next three quarters are better than the last three quarters of last
year, but i'm a betting man. i'm not sure i'd make that bet right now. the world is uncertain until we see more clairty >> the stock up nicely today most of the banks up now since earnings season began. perhaps one or two stocks, specific disappointment. but earnings season has been fine up 2.5%. >> were the numbers good enough to be the catalyst so many bank bulls were hoping they would be because banks have been under pressure because of the flattening yield curve and macro concerns >> they weren't blowout beats so it hasn't completely changed the dynamic of how people think about banks. it just was better than feared, essentially. and again, morgan stanley is a great example of this. overall, revenue was down. earnings were down they beat expectations, but there was some cost control in there for it it wasn't a bullish, we're off to the races again like 2017,
2018 we'll have to see in a week's time whether this momentum continues. >> helps yields are higher and climbing >> turning to pepsi. high today following its earnings report this morning sara >> this is a good report from pepsi. the stock reflects that. they put up their best sales growth in three years. 5.2% organic revenue growth. that's the way to look at it that's a pure look at sales stripping out currency pressure which is still dragging on profits. what's behind it snacks for one frito-lay sales up 6%. north american beverages grew as well up 2.5%. free frito-lay chips grew and pepsi corps brand grew bubbly, sparkly water more than 60% growth from last year. mountain dew pepsizero sugar, all of these doing well per pepsi mountain dew and tea not doing well for pepsi so what's changed?
besides having a new ceo, ramon laguarta took over they've rampd up investment and spending big time on advertising. ad growth there is growing faster than sales growth coke has been pursuing the same strategy also i'm told execution at pepsi is sharper for instance, what the industry calls feet on the street placing product in stores. why didn't pepsi raise its guidance with these new growth prospects? i asked the ceo hug johnston >> where there is guidance, we always want to accommodate some level of volatility. but we're pleased with the results competitively, with the top line, and we do expect, we see up sides that come through in the business to reinvest them back to even strengthen and further make our business stronger >> bottom line, analysts say that was a conservative guidance, and they expect pepsi to beat it the stock has reflected the growth as you can see. it's been climbing, particularly strong in the last three months,
coke has been flat over three months that's a bit of a change coke had been carrying the growth torch in the industry over the last few quarters it's going to report next week it's gotten hurt a little harder by the currency headwinds because it's got a bigger international business certainly the bar has been set higher by strong growth. >> i don't know, what was that, an 18-month chart? but coke very strong over that period, 50%, 60% higher. i guess expectations high for coke into next week, too >> they both got new ceos and turned up the growthlevers coke has slimmed down, spun off its botlers, become a more focused organization and focused on growth outside of the corsparkling, carbonated drinks because consumers aren't going there. pepsi zero, coke zero, and also waters and sports drinks >> those ones to watch for next week, coke, pepsi doing well today. netflix has been all over the map since reporting results
after yesterday's close. julia boorstin is in l.a. with the details. >> we see netflix shares down about 2% what's been weighing on those shares is concerns about slowing subscriber and earnings growth in the quarter ahead but the ceo reed hastings dismissed concerns about a coming wave of competition as he has in many quarters in the past take a listen. >> i don't think they'll steal subscribers because we have different content than they do i think they'll do great work and we'll do great work. >> we can't get obsessed about any one company. it's a mix of, es, it's competition. that hurts but on the other hand it's getting internet interviewing more popular with everyone >> a lot of new and strengthening competition with disney entering the market hbo getting additional funding it is what it is we'll not be able to change it we don't focus that much on any one because no one seems to affect us that much. there's a ton of competition out there, and disney and apple add
a little more but, frankly, i doubt it will be material because again, there's already so many competitors for entertainment time >> hastings also insisting that he is not concerned about his rivals who are now launching streaming services, pulling their content off netflix because he is so confident in netflix's investment in their original shows saying that their top ten most-watched shows are netflix original brands and revealing that tens of millions of households have watched films and shows including triple frontier, the umbrella academy and highway men. saying netflix, the company will become more transparent about those viewer numbers still hard to compare them with movie ticket sales or tv ratings, but interesting as they use that transparency to try to lure more content creators onto the platform >> netflix up 2% as we approach the close. it's been a little all over the place. coming up, we'll speak live with former treasury secretary jack lew fresh off a trip to
beijing. his thoughts on trade negotiations and much more plus -- qualcomm's ceo speaking out about settling with apple since the stock turned in its best day suince the '90s. >> a much more natural relationship between the companies. one that we certainly enjoy working on products together more from that interview, plus the iacmpt on the entire chip sector is next. ♪
like never before store. the xfinity store is here. and it's simple, easy, awesome. ♪ welcome back to the "closing bell." the losers in the s&p today, bny mellon, very poor performance down some 10%. they did report their earnings before the bell. disappointing net interest income guidance and performance for them one of the best performers last year after jpm in terms of the banks but earnings not derailing the rest of the sector like wells fargo. disappointing on that. net interest income margin qualcomm higher today after turning in its best performance since 1999 following the major settlement with apple. david faber breaking that story
yesterday. also speaking today with qualcomm's ceo and he joins us now with more. so good yesterday. you had to follow it up today. >> we're happy to, sara. it's been 24 hours unexpected, i guess, given the market reaction. apple and qualcomm settling. we were lucky enough to have the ceo of qualcomm join us this morning on "squawk on the street." can't say he really told us that much more than we already knew in terms of there being a six-year agreement with a two-year option between the two companies. direct between qualcomm and apple. there's also going to be a multi-year chip supply there's going to be a large payment of some kind we know from apple to qualcomm, but we don't know how much they're paying per phone we don't know what that payment overall is and for his part, he's not really sharing a lot of the details, including what got them here given the vitriol on both sides. they seem so dug in and yet they
managed to find a way to get to a settlement something that qualcomm slowly but surely has been doing with governments and customers around the world. >> if you go back over the last 15 months, we signed major agreements or an extension of an agreement with samsung last january. we just did a big deal with apple. we have an issue still with one large oem which is huawei. we did an interim agreement with them on our last earnings call we disclosed it. when we look at the history, we're actually getting things knocked off the list with big customers that have a lot of leverage we have a lot of value and we're able to show that we think in the history. >> and speaking of leverage, we're trying to figure out what the leverage was perhaps the fact their 5g chip set will be a key for apple considering that hours after we heard from the two companies, intel said we're no longer in
the business of providing 5g chip sets for mobile handsets. so qualcomm has seen an accretion of value over the last 24 hours we said this yesterday while we were breaking the news about the settlement, the trial in san diego had been going on and it would have been really fun, i have to admit here's an excerpt from apple's lawyers trying to explain to the jury why they were at least originally or for the longest time opposed to the business model at qualcomm. they talked about what it would be like to go to a kentucky fried chicken and pluck down 17 bucks. the guy says first go to a different counter called kfl, kentucky fried licensing i have to go over here and pay the eating fee license when he says it's $17, that seems crazy. why would i pay $17 for the right to eat and 17 for the chicken. that's the world qualcomm lives in they don't sell chicken, though. they sell chips. too bad we'll not get the trial. it would have been fun >> i don't know if that's a good
analogy, though. anyway, we don't need to go into that because clearly the trial never happened, david. i want to go back to the timing of all of this we discussed it yesterday. obviously you spoke to steve mollenkoff today do we think the intel decision might have come first and that forced apple to be morequalcomm? >> what we can say is it was never clear that intel had the capacity or ability to make the chips to the liking of apple or what their needs would be. and apple has not really given us a lot of information about a 5g phone but we do know that some of their competitors are already planning their 5g entrant. the idea that amy would be beholden to intel with perhaps a chip set that was not the best out there was probably something they were not interested in doing. so you could believe that had to enter into the conversation.
clearly conversations that were taking place between apple and qualcomm and mollenkoff and tim cook, despite the fact mr. cook had said we're not really talking. >> david, just separately, i can see him on the floor, michael phelps he's joining us a bit later. you and i both -- which of the strokes are you having struggle with the most so i can get a few tips for you >> i've got a shoulder issue so my butterfly has been very much compromised >> i thought you were known for your butterfly >> i know. wilf is a young man, and i can only say once you hit a certain number, man, it goes downhill. so enjoy every minute in the water and what you're able to accomplish >> i will. and we will get you those tips, david. i want to get your butterfly back to its best david faber, thank you very much yesterday around this time we had a first look at the new
samsung galaxy fold phone right here on set. i really liked it. and i'm sad because -- >> you broke it. >> i don't think i broke it. >> you opened it one too many times. >> there it was yesterday. and it was awesome, i thought. >> apparently todd hazelton tells us half the screen is black now? >> i think we're just going to tease that >> but we have an update to come after the break. the phone now completely -- he is, in fact, here. sorry. he's ready to join us. todd, what's happened? >> it's completely broken. two days into my testing, working on my review it stopped working yesterday you asked me how well the hinge holds up now i can answer, not very well. samsung had originally said hundreds of thousands of times over several years but just using it normally, it stopped working completely and this actually happened to efrl other reviewers who have the phone today. so it's not just me.
it's widespread. >> you as a reviewer if it's happened to others today, is this the first instances of this i imagine it's pretty damning as the phone is not ready for release yet. your tweet as well about this is being retweeted aggressively i'm sure the brand is going to be very concerned. >> yeah, and they should be. so this actually happened in 2014 with the galaxy note 7 which caught on fire because of defective batteries. and then samsung issued a recall sold it again. and then had to recall it again and ultimately just stopped selling the phone altogethealtor at this point samsung's best strategy is to stop selling the galaxy fold. figure out what's going on right now it's just in p preorders. so people have not received it yet. only us reviewers. probably a couple dozen of us throughout but it's not looking good it's not something you should buy. this is a $2,000 phone and it did not last two days. >> has this ever happened before maybe it's just not ready for primetime because it was such a
big change >> what we normally see when i'm testing products are typical bugs like an app won't open right or might close or freeze and i restart the phone. this appears to be a hardware design problem with the actual hinge. it's not something they can fix, they, just by software now i have asked samsung for comment and they don't have a comment yet so i'm not sure what the problem is it could be they had a bad batch and want to send out new ones. we don't know yet. but this has happened before with samsung and i normally do see bugs every now and then, but nothing this major >> wilfred was pretty aggressive with it. trying to grab it from me. >> i hope it's insured or someone else is picking up the tab. it was not "closing bell's" fault. it happened when it was? cnbc.com's hands back at the bureau you can put it on your costco. >> thank you, sara accidentally showed a chart and you referenced the massive
gain it was coca-cola consolidated which is the biggest bottler, coke sometimes an easy mistake to make versus pepsi instead of ko, coca-cola. over the last year -- there's the chart. you get it, though coca-cola has been on this growth spurt and pepsi has been slowly climbing back and really taking it up a notch in the last few months so far this year. as a result of turning up some of those growth levers which showed up in today's earnings. >> it was confusing. it didn't match what you were saying or i missed something by not pointing it out straightaway >> you get the picture two hotly anticipated ip os are expected to price after today's close, pinterest and zoom and michael phelps joins us at post 9 to talk about life after the olympics what he was thinking when he tcwahed tiger win the masters
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delhi. michael phelps joins us now on set at post 9. a real privilege to have you here with us thanks so much we've got lots to talk about, including some of your business initiatives and colgate water save initiative which is why you're here today. i want to start with the timely news which was you as the greatest of all-time sportsman witnessing what was being billed now as one of the greatest comebacks of all time at the masters. do you think that's fair is it the greatest comeback of all time >> it's definitely one of them in sports, for sure. honestly, watching tiger over the last couple of years really make, i guess, some real effort and some real ground to being able to get back to where he is. he's somebody who is, obviously, one of the greatest athletes of all time and when he wants to win, he's going to do what it takes. and he knows what it takes to get back there so being able to watch him up close and personal at that place at augusta national, it was a fun weekend. i'm still speechless and giddy about -- >> you're also a meme.
you were in the 16th hole shot which was almost the hole in one. >> i thought it was going in i chatted with him afterwards and it was such a great tournament and such a great way for him to really get back out there and give jack's record a real run we get to finally talk about it after all this time. >> do you hope he gets that record as the man that has the most olympic medals? >> 100%. watching him and watching what he's done for the game of golf and i think records are always made to be broken. obviously it would take an extraordinary athlete to do something like that. and tiger is that guy. >> is your record there to be broken do you hope it lasts for a while? >> i'd like it to stay around for a while but honestly, it's going to take someone special to give yourself the opportunity. i hope there's a little boy or girl out there that's starting to train to hopefully one day do that hopefully i'm around and alive
to see it. >> maybe you were just trying to get an under armour logo in all those nike shots with tiger woods? wifl red mentioned your recent trip to new delhi. what are you doing now that you'd seemingly have more free time >> it was incredible i've spent -- this is my second trip in india. being able to go over and you see there looking at the store the store opening in delhi was awesome. absolutely crowded but just being able to go over there and talk about the importance of healthy and active li lifestyles it's incredible to see more people from all over the world but really in india becoming more active and trying to get fit. it's something so important and so powerful living a healthy, long life. and being able to go and just introduce our products it's something i've worn really my whole life. seeing what kevin is doing and what he continues to, do it's incredible he's probably one of the biggest visionaries i've gotten a chance to work with it's fun starting that next
chapter being outside of the water and helping people to stay active and get fit >> another one of your partners, colgate. water save initiative. >> water has always been a massive part of my life, naturally. and now being a family of four goes to a family of five, i know the importance of conserving water. and it's -- talking about india, if you're over there 1.4 billion people and less than 10% of people have running water. you think about that and what could happen if we don't pay attention to the small things and how much water actually we're wasting. >> with all these brands, others as well, you back cereals, blue apron. you often use your instagram account to publicize them. do you welcome that? how much do you welcome that, that you can put your own spin on the messaging do you think you get good engage am with your fans? >> i think the biggest thing when we're posting stuff on social media, it's authentic it's me being me
that's how i want it to be i don't want something forced. i don't want somebody telling me what to do, what to say, how to do this. we have fun with it. like the life cereal thing the other day with boomer. he was going crazy absolutely loving it ate a big bowl of cereal like dad and drank the milk >> hope you don't have blue apron stock. >> we don't. we don't >> under armour stock, though. >> you have a diverse lineup i'm sure you're getting pitched all the time >> stuff that fits into my everyday life. blue apron was super easy. that was something we were doing and using because it was so simple to have a healthy meal, but also for my wife and i, something that was so easy we could do together. we weren't really big cookers, so it's being able to learn how to do basic things is pretty fun. it's enjoyable but it's really just -- it's all in what my beliefs are, what my goals are and what my mission is if you look at everything going
on, a lot of it is based around family and what we're trying to do moving forward. it's exciting. we have really cool things number three is on the way we'll have our hands full. >> congratulations >> just wanted to ask about your battle with depression which you've talked a lot about in the past very honorably in the past and the highs and lows that come with being a sportsman you really started to open up about this in 2014 do you think there's been big progress since then? >> 100%. not only athletes but celebrities from all over -- all walks of life are opening up and talking about the struggles they have and the biggest thing for me is it shows they're human we put so many people on ped stals for what they've done or been able to achieve we don't think they're a real normal person. but we all really are. everybody is truly just the same doesn't matter what car you drive, what house you live in. we'll all have similar problems that we face every day so it's been a fun journey for me and something i'm -- i still go through
i still have depression spells i still get anxiety. like i have all of these things. and it makes me me and i think that's -- i'm accepting that and being able to open up and really talk about it and hopefully i can help somebody that's going through similar things >> michael, thank you for joining us today >> i was trying to see if you were breaking that news but you already talked about the baby on the "today" show i hope you get what you want, which is a girl. >> michael phelps, privilege to have you with us thank you for stopping by. time now for a cnbc news update with contessa brewer. >> here's what's happening right now. ivanka trump visited a cocoa farm in ivory coast as part of her visit to africa to promote african development among women. in an exclusive interview with the ap, she was asked whether her dad, the president, wanted her to head up the world bank. >> he did ask me about that, but i love the work that i'm doing, and myself and secretary mnuchin, we oversaw the process. we had a strong preference
david mueilpas was confirmed. president macron is holding a hearing to launch rebuilding operations $11.3 million will be released as emergency funds to help with the most urgent work godiva is rolling out 2,000 cafes over the next six years that will serve a complete men uveitems it works the foray into prepared meals. the first cafe officially opened in new york today. the company expects 40% of its total sales to come from the cafes in the next five years now that is something you can sink your teeth into the cnbc news update this hour i'll send it back to you guys at the stock exchange >> contessa, thank you up next -- new reports say the resolution to the u.s./china trade war could be coming in may. we are going to speak with former treasury secretary jack lew about the biggest hurdles
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acceleration as late but i'm watching the data just as you are >> when do you think the deal will happen between the u.s. and china? >> again, i'm not a great speculator i think it's very important. i think it's very important that the u.s. and china make progress in these trade talks i think this tension isn't good for either economy and given the size of both economies, you know, i think it's important we make some progress candidly -- >> businesses as well. >> i think it's important. i think it's important for both economies, and, you know, as a u.s. businessman, i am glad that the u.s. administration has been engaged in this debate and trying to level the playing field a little i think things got out of balance. >> we welcome you jack lew, former u.s. treasury secretary under president obama in a cnbc exclusive. he just returned from china. welcome back, mr. secretary. >> good to be with you >> what's your take on whether china has really bottomed in terms of the growth data >> i think it's hard to know from any one data report whether
they fundamentally bottomed. they have some serious challenges, even this data was confused in the sense the industrial economy that's gotten the benefit of fiscal stimulus did a lot better than the consumer economy like autos. and they have some fundamental challenges, demographic challenges that they have an aging population and it's going to take a generation to have enough workers to have the find of robust growth they need what i actually think they should take from this is that they should get on with the business of putting in place the reforms to make sure that the economy can stabilize and can produce at a steady level. they can't continue to come up with injections of stimulus to get things going every time things slow down they need to have a much more sustained and sustainable growth and for that, they need to open their markets. they need to free up intellectual property so it's not risky to bring it into china. they need to do all the things
we tried to do the one thing that was a big problem during our day, that's not today, is the exchange rate. we did our job owning with the chinese and that policy changed. i hope that coming out of these negotiations, there is a settling down of the trade tension. it's not good for china or the united states. we're the two largest economies of the world it's not good for the global economy. >> there were some headlines about the possibility of a trade deal as soon as the end of next month. as of when or if that materializes, on that point you just mention on intellectual property, do you really think there's going to be genuine progress, meaningful progress that's enforceable and lasts >> so i'm going to wait until i see what comes out of the negotiations to pass judgment on it i am skeptical that they are going to be the permanent kinds of systemic changes that we all would like to see. but i actually think incremental progress would be a good thing as well. i think the problem is it's coming at a high price
the mode of engagement we now have with china but also with our closest allies like europe and canada is creating this conflict between the united states and the world, causing uncertainty and i think slowing down the confidence that you need to have sustained growth. so i won't criticize incremental progress, but this isn't the right way to get it. >> what about the idea it's short-term pain for long-term gain all of these tensions should eventually lead to fairer terms for american accident when we're doing trade and when we're operating abroad >> no question we have to be tough with china i think we were tough with china and that's one reason they changed their exchange rate policy the question is how do you build a relationship between the two largest, most powerful countries in the world and do you do it in a way that leads to greater economic and geo political stability. and the way we've engaged to me is at a high price
>> last time you were with us on this particular show, mr. lew, was july 2018. and we were pushing you quite hard because the gdp growth was soon to hit a 4% handle or in and around that level. and you were saying you didn't think the tax cut was the right strategy as the growth rate has slipped, do you feel vindicated >> i've been saying the same thing for the last two years you know, potential gdp is not going to go from around 2% to 4% on a sustained basis you can put fiscal stimulus into an economy and get a short-term reaction and that's what i think the increase to 3, a little over 3 was. it's now settling back down. i think the challenge to our economy is that we're in the tenth year of recovery i hope we hit a record i'm proud of the fact i had a hand in the first 7 1/2 years of the recovery, of this growth period, and we're doing a lot of things around the world that i think put at risk sustained
growth there's nothing on the horizon that i think will cost a recession. but i think policy is working in the opposite direction and that's the problem >> i'm so glad you recently gave a speech where you mentioned mmt, which is a hot debate your property has presented some pretty bold spending ideas a lot of the candidates and hot voices in the democratic party want to spend a lot and say they can do so and we can issue a lot of debt and the fed can monetize it do you buy that idea >> look, i don't think that a new theory is going to change the fact that you have to ultimately repay the debt or that if you abandon the idea that there are limits to how much you can borrow. you do it at the peril of the financial economic future. look, i think there's a legitimate concern i was part two of administrations that took an enormous deficit and in one case turned it into three years of surplus. went from a deficit of 10 to 3% of gdp and it was immediately followed by tax cuts that drove
the deficit straight up. so you know how people saying that we get our turn to do it with spending. i think you have to be consistent and that means if you want to do things, you have to pay for them, do them in ways that deliver the right -- >> no party is there both parties want to spend >> both parties are in a place where what i'm saying is considered old thinking poll until things change and the pendulum will switch at some point. if we get to the point where deficits are again the major concern, it puts in jeopardy all the things most important to me in government. investing in the future, in education and research and in the social safety net. >> mr. secretary, in the speech sara mentioned you addressed some of the ways inequality could be rebalanced. one of those is taxing unearned income is that right? >> yeah, i thought for a long time that if we care, as i do, about income inequality. the fact we have enormous wealth that builds up in assets that
appreciate and they can pass from one generation to another, everybody talks about the estate tax, the basis is stepped up so you never tax the appreciation that happened during the period when somebody could have amassed billions of dollars of asset appreciation that ought to change we proposed changing it. it's an idea that's a little complicated but i think it's an idea that could produce hundreds of billions of dollars of revenue to reduce income inequality >> we're getting headlines on the wire here. herman cain is not withdrawing from consideration he says he's going to meet with the senators already opposing him. someone like this on the fed, dangerous or not >> look, elections have consequences and i think the president is nominating people that he thinks belong in the fed. this is a case where the senate, even a senate controlled by his own party has said this is not the right character in terms of policy or person for the fed
i think the fed is one of the most important institutions we have in this country it's something that parties on both sides have treated as something we need to protect i hope that continues. >> is it currently still independent, or was the pivot at the turn of the year something you think was politically influenced >> i think it was independent. i think that, you know, the chairman of the fed is making decisions the way he says he's making decisions i take him at his word he's driven by the data. i think there's a lot of political noise. but the data is hard to read we have trade wars we have high deficits at a time of growth. we have signs of inflation that may or may not be real i think you have to expect the data is going to move around as the global economy either strengthens or softens and he'll continue to make decisions that way. >> since you brought up the democratic plans, is there any democratic hopeful that's making economic sense to you? >> i think they are all just starting to develop their platforms. i think the idea of raising
revenue from the people who can afford to pay it is a sensible idea but it has to be done in a way that works and that it's adminstrable and that's sustainable. to me, the challenge is to pair up some of the things we need to do to invest in the future with ways to pay for them because the answer to my concern about paying for it shouldn't be doing nothing. it should be finding a pathway forward. >> let us know when you hear that jack lew, thank you very much. former treasury secretary of the u.s. analysts are split 50/50 on las vegas sands. we'll see what's in the rds ca for he company as it reports earnings that's coming up on "closing bell." for your heart...
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experience amazing at your lexus dealer. \s 4pm we've got a news alert on amazon >> amazon will close its domestic marketplace business in china by mid-july according to a force familiar its cloud business stays and it will continue to sell overseas goods in china and kindles the e-commerce players, they saw some slight gains on the news but short-lived as they are already the dominant players there. reuters first reported the plant closure about an hour ago citing sources. guys >> thank you very much for that. still to come here, audible
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welcome back we've got six minutes or seven minutes left of trade. in our "closing bell" exchange today we've got rick santelli at the cme in chicago and ben ben, china data, does that show that this stimulus we're seeing not just from them but around the world is working and we can be optimistic about growth again? >> there's no question the growth outlook is improving, although somewhat moderately and it's a combination of things it's china stimulus probably being heavier than we had thought previously back in 2015 and '16. a heavy dose we've been characterizing it as roughly half to two-thirds of what we saw back then. that number is creeping up it's the fed and it spills over to the rest of the world but also some of the growth puzzles of 2018, partially resolving and europe is a good part of that when you add that all up, you have growth that's slightly below trend but moving through trend as we go throughout the year now is that a reason to be super
optimistic in terms of corporate fundamentals i think there are limitations to that argument. when you add it all up, we're still teetering around trend earnings you can see this in q1 earnings announcements. they're beating expectations that came down significantly but not jumping off the page even if fundamentals are telling you this is a good time to add risk, our valuations really offering attractive entry points where that leaves us balancing alls the factors is adding to risk but in very measured doses. >> so you're staying cautious. rick, the bond market is reflecting some of these growth prospects globally that ben was talking about. what about the u.s.? first quarter looks better what does second quarter look like >> oh, i'm sorry in terms of interest rates, i think second quarter and third quarter are going to look very similar to the first quarter i think rates are going to slowly creep up. i think there's a good chance we
left the mid-230s in our wake and i don't really think we'll revisit them but i think the bright spot is even though rates may move up, i think it will be accompanied by better growth. maybe we've lowered the bar a bit but i think we'll raise the bar at the end of the year the trade deficit was the smallest in eight months and i'm sure the behavior of many that caused it to do so was affected by china trying to get around tariffs, not knowing how it was going to turn out. because if you just look at china, exports to china were over 21% imports dropped by over 3.5% but i think what i'm trying to exaggerate there is i think trade is going to be the surprise on the back half of the year >> thank you both very much. just under four minutes left to trade we'll be back with the close
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>> semis, new highs on china hopes and the qualcomm deal. health care, new lows on the concerns again, over medicare for all. >> there goes the bell, bob, thanks very much down 0.2% on the s&p at the close or 6 points. the dow fractionally higher by about 3 points which is splitting the middle of today's 100-point range. the dow has just gone negative at the close back to you, sara. welcome to "closing bell." i'm sara eisen wilfred frost rejoining me along with mike santoli. take a look at how we finished up the day on wall street. again, we saw the positive momentum that we got early in the trading action sort of fade throughout the day. closing flat on the dow. s&p 500 closing right on that 2900 level interestingly down about 0.25%
the nasdaq also unchanged. russell 2000 index losing 1% and just to show you how positive things were, the nasdaq 100 hit its first intraday record high since october 1st but you had weights like ibm one day left in the holiday-shortened trading week major averages unchanged so far. here are the other stories on the radar china releasing stronger than expected gdp data. nasdaq 100 hitting a record. and bank of america merrill lynch out with a new fund manager survey pinterest and zoom set to price their ipos leslie picker following that and contessa brewer is following las vegas sands. we'll bring it all to you as soon as it happens joining us is liz young, senior market strategist at bank of new york mellon. welcome back mike santoli, certainly another fade very early rally, little
action, little catalyst besides earnings >> market acts a little tired here just not so much reacting negatively in any dramatic way but it's just fatigued seeing the recent leadership group. software down 1% as a sector that's been a real driver of the up side and a little ragged around the edges small caps down almost 1% all day. more stocks down than up equal weighted s&p down 0.5% there's a little light selling below the surface. and a lot of the earnings are offsetting, you know, one another. not necessarily creating a marketwide catalyst. >> health care suffering this week and today >> very notable. it was a consensus, maybe crowded trade coming into the year because it was defensive but also had some growth in there. and, obviously, a little bit overowned and then this, the health care services area, basically people questioning the very business model of hmos and things like that now it's really oversold right now. it's on this losing streak that
i think you'll wonder if it should bounce very soon. but, clearly, for defensive group showing no real defensive attributes right now >> what do you do with that group, liz >> just in general what we have to look at is coming into the year, the rally was healthy and broad based. now a little more narrow leadership the nasdaq outperform. discretionary outperform, staples. pro cyclical signals something like health care, utilities and more of those defensives are going to see selling pressure during that time. >> are financials cyclical or value play >> seeing financials report healthy earnings is a pro cyclical move and you can look at the banks versus gold and banks outperforming gold doing well versus gold and that's more of a pro cyclical. >> gold sort of suffering against other metals is -- >> copper in particular. and copper has been doing well and gold suffering against copper when you compare things that usually are clear signals of a healthy economy, they usually
are also clear signals that we're going to continue in sort of an upward momentum. but we don't expect the upward momentum to continue at the same pace it has so far >> china released a slew of data indicating its economy may be stronger than previously expected the chinese economy expanded by 6.4% year over year. expected to be 6.3%. the industrial production data was good the fixed asset investment and retail sales data were decent but not huge wins. we were discussing this with secretary lew. the key point whether it's sustainable for a decade or not is that for 2019, it looks like things have stabilized and picked up again. >> for sure. to me, what's really saliant about it is the market shrugged. overnight we got the numbers seemed like we'd get a stronger open to reinforce that idea that the global trade is not vulnerable that suggests to me it's consensus that china has put in a bottom in growth wouldn't make too much of the reaction except the market
didn't use it as an opportunity to rally for verdict >> you know what else they didn't use to rally very hard is word we'd get a chinese trade deal between the u.s. and china in may there was a time the market was so sensitive to every single headline and a deal coming next month would have been more exciting >> what's happened so far this year is we've already priced in a deal happening every time we got some of that positive news, the market would react. now less of a reaction i think they are expecting it to come about the fact we got better gdp data out of china is an indication the stimulus is finally working, and april marks the beginning hopefully of a trend of that irrefutable positive catalyst. >> i've always thought that a trade deal, all the kind of upset about lack of a trade deal was really about a china hard landing. that was the main macro implication of that. it's not, can we come to some agreement on paper >> you don't think it's the uncertainty that businesses have to face when they're planning?
>> i think that indefinite status quo would be okay it wouldn't be ideal but we muddle through to me, if it's really going to suppress the chinese economy for a longer period of time, that would have been a bigger problem immediately. >> do you agree? >> i agree they are related. i think the lack of a trade deal or trade blowing up would have been a catalyst for china to have a hard landing. and that then bleeds into emerging markets, southeastern asia first and then that bleeds into the rest of emerging markets because they become guilty by association and then you see this risk-off trade around the globe the fact we've avoided that is a positive >> do you want to buy chinese stocks at the moment >> i would be a little more bullish on em stocks broadly than international developed, yes. >> let's move on >> to tech the nasdaq 100 notching a record high all less than 2% from their all-time highs which is easy to forget on a day like today where
there was little action. we're holding near the highs >> we're holding the market remains reasonably well supported kind of rotating the nasdaq has been the clear leader that, to me, it's a -- first of all, the nasdaq 100, a very concentrated set of dominant global companies it's been working. people have been seeking growth where they can find it still seeing similar signs of fatigue as you are in the overall market a record high on the nasdaq 100. question being market hasn't proven how much is left in the tank behind it >> within the tech space, is it a theme of moving back to the cyclicals, back to the big faang names or do you like some of the older tech >> i like some of the older tech when we have narrow leadership like that, those sectors leading us all the way up. if you remember 2018, it was similar. tech led us all the way up and then all the way down in the fourth quarter i'd rather see it a little more broad based like we had earlier
in the year. i get nervous when something like the nasdaq or concentrated index is leading the rest of the market because then i think there's a little moropportunity for investors to take part in momentum and really get burned on that trade. >> feel like we should add chips into the discussion. qualcomm's big gain, second day in a row helped fuel the tech sector >> totally a positive sign you'd have to say. qualcomm's move is a really radical catch-up trade qualcomm, flat year to date going into yesterday's settlement now off, what, 30% in two days or day-plus. and that's how much the stocks, the s&p, the semi index was up year to date total when semis and transports are trading at their rally highs, it's hard to get too negative, even if the market starts to look slightly wobbly >> results from las vegas sands. contessa has the up in bers. >> sands was first out of the gate for the casinos to report
earnings and they did not want to society the good news a beat on the top and bottom lines. earnings coming in per share, 91 cents versus 81 cents. and net revenues beat estimates here $3.65 billion. they beat in every segment of the market i'm looking at the estimate from the analyst was $2.2 billion they came in at $2.33 billion. they beat at the marina bay sands. in bethlehem, pennsylvania, their highest table hold ever. we're going to be looking for several items. we're going to be looking for what the chinese economic numbers are doing to the market in macaw is it encouraging people to come and gamble their money especially the vip sector. the margins are more important in the mass. and that's where the trend is right now. but the vip gamblers are very important. we're also going to be listening for what the plan is, what the expected return on investment is
in singapore for a $3.3 billion expansion. harry curtis told me he thinks it's more about keeping the license and keeping the cash flow there that's what they needed to do to keep the license through 2030. i'll also be listening to this call for any update about the health of ceo and chairman sheldon addleson >> contessa, thank you for that. >> lvs up 4% >> it should confirm what has been kind of an, i guess, revival in risk appetites in this area. it's still well below its highs. and i was pointing out, even though it's not a macau business, it trades along with china. traded with the fxi, china large cap etf for the last two years highs and lows matching up >> we'll wait for more from that earnings call. bank of america releasing its fund manager survey for april painting a rosier picture of the economy than in previous
months only 6% of investors surveyed expected a global recession this year 86% say the yield curve inverting does not signal an inpending recession. two-thirds of investors are bearish on growth and inflation outlook for the year reading through this, it's not optimistic necessarily, nor super bearish. it's just saying we're not going to get a recession >> it says that consensus is soft landing central banks have turned dovish because growth expectations have faded. it's the message the market has been sending as well, which is that we think that, yes, growth has come off the boil but we don't think it's going to tip negative that's logical if you talk about growth expectations being as dim as they were since 2016 obviously you have the election the next month but what that showed was people were a little overpessimistic about growth and, therefore, had
a wrong-footed on fed policy there. can't say we're going to get that kind of a quick binarymov like we did in november of 2016. we don't have the means for that but it is interesting that people basically feel like stay invested market seems okay but it's not gangbusters growth >> what's your take on sentiment and positioning and where that could lead us. >> i still think there's a little conflict between what people are saying about we're not expecting recession. everybody seems reasonably positive yet portfolios are still positioned for kind of this disappointing or call it uninspiring year and it's really easy as an investor to take money off the table when you're afraid but it's really hard to put it back on the table when you're not afraid so in the fourth quarter, a lot of people got scared we hadn't seen a correction like that in a long time. they took their money out or hit the pause button is putting risk back on. i don't know they've really come back in at this point yet. >> interesting to see that the survey suggested fund managers have corrected what was an 8%
underweight to european stocks does that sort of suggest that all of this changing global data trend has already been priced in i guess we got an indication of that with's china data does not apply to europe it's priced in we're back to neutral on expectations >> i don't know that i'd call it a correction if it was an 8% under weight i think it would still be underweight, particularly europe because we have question marks going through the year we need to figure out more about brexit although that's been extended and amended i think there still is an ignored risk about the italy banks and all that doom loop scenario that could ensue. and markets have been ignoring that outside of europe >> the biggest increase in global comequity allocations sie 2016 people are saying things don't look great but we're reallocating in and that process of getting re-exposed to equity seems like it's under way. >> i feel like people are waiting for signs of economic growth in the future so the signs we're getting on
growth are quite positive for q1 which everyone wanted to write off and say, look, we had the shutdown and bad weather and seasonal weakness and yet q2 is looking more mixed >> it's looking mixed. >> a lot of misses on the data point. >> the they're expecting and what their outlook is are waiting for that the market has kind of gotten there and said we got past the growth scare and most of the big, strong rallies of this bull market happen when people were very scared of something that didn't come true. that's what we saw >> the other thing on this broad topic is morgan stanley on their earnings call today did strike in terms of cash levels a similaren to to larry fink of blackrock saying we've got most of our clients with a lot of cash in their portfolios which is a relatively bullish sign once they get comfortable that it could be deployed the tone from gorman was not as strong gorman was more cautious
overall. liz, thanks for joining us up next -- rolling the dice on casinos lvs shares trading higher after reporting results as the company's big bet on asia, is that paying off? we'll get an analyst's take. plus, waiting on pins. pinterest's highly anticipated ipo pricing set to hit any 'lbrmite wel ing you that number as soon as we get it. stick with us here on "closing bell." -driverless cars... -all ground personnel...
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welcome back shares of las vegas sands are trading 4% higher now following q1 earnings that contessa brought us moments ago joining us by phone, david katz from jeff ries >> the largest piece of it is driven by macau. macau had the benefit of some higher than normal hold percentage but even on a hold adjusted basis they still did beat our number which was higher than consensus. singapore also did well across the board in all three segments.
>> the las vegas numbers were a little better, too and i keep going back, david, to an interview a few months ago with jim chenos. he was worried about the u.s./china trade fight and getting caught in the middle and also worried about the fact that las vegas numbers were not showing the kind of growth days they used to millennials not going to vegas what's actually going on there >> what's going on in vegas is that pricing power has been harder and harder to come by, for sure but from a supply and demand dynamic, from an economic perspective, the market is still very, very healthy in the context of las vegas sands, we should point out that it is, by far, the smallest of their segments and the stock is much more driven by their asian business, particularly macau >> what else are you listening for on the call, david of course, sheldon anderson is going to be an area of focus
>> so, what we will be focused on, number one, we were over in the macau market in mid-march. and we got the sense the economy in china was stabilizing and that market as a result is inflecting and so we came back. we made the call we upgraded wynn resorts raised our numbers on las vegas sands and made the call we think throughout the course of this year the market is going to accelerate and we raced our estimate for the market by double to 10% from 5%. we'll be listening on the call, yes, to see if mr. addleson is on board he was not last time and that's important yes, there is a leadership transition or fluidity going on across the top end of the space that includes mgm, with some activism includes caesar's who named a new ceo this week. includes steve wynn who is no longer involved with that company. and it just raises some interesting questions about the
direction and complexion of these companies and how they'll grow going forward >> what are the implications of that sort of generational shift that seems to be going on in the industry we're talking about consolidation. some other kinds of rationalization here >> look, i think the one critical question for us, whether it's las vegas sands, whether it's wynn, whether it's mgm, it is what their growth trajectory is going to look like because what we're talking about are iconic leaders, the chief visionary, chief diplomat within those companies. they were able to pursue licenses in new markets and envision the empires they've built. now that they're not here, what will these companies become is a fair question. >> the stock right now is soaring after hours, up almost 4% ahead of that call. david, thank you >> my pleasure still ahead -- the vix factor volatility slipping to new lows. what does that mean for your
money in the broader market, next plus, watch out, alexa facebook is now looking to launch its very own voice assistant. the cnbc reporter who broke atth story will join us when "closing bell" returns. olders." demand the best. demand a cfa charterholder. cfa institute. feel that? that's the beat of global markets, the rhythm of the world. but to us, it's the pace of tomorrow. with ingenuity, technologies, and markets expertise we create the possible. and when you do that, you don't chase the pace of tomorrow.
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close. nasdaq also just slightly down the russell down 0.9%. we saw tech do well. consumer staples do okay health care and real estate down at the bottom for the day. wall street's fear index, the vix is hovering around six-month lows mike santoli with more on what that could signal. >> initially what it signals is that the market has been relatively strong and calm it's more of a coincident indicator than predictive one. the s&p 500 on top, and this volatility index on the bottom look at the last time we were above 2900 here in september that was september 20th was the peak of the s&p. you had the vix making this low. it was lower than it is now. actually closer to 11. look how long the volatility index managed to stay below that 12 level that's why just simply being down here around 12 again isn't necessarily telling you the market is too complacent or too
calm but it's going to put you on alert that a lot of the character of this market is reflected in option traders' expectations maybe the hedging -- demand for hedges are not very high it becomes a danger where a lot of traders extrapolate this low volatility environment and star to sell vix futures, sell volatility for a long stretch and feel like they can't get bitten by that that's what happened in 2018 i don't think we're quite there yet but it's one of those things you have to tune into in terms of field position in this market >> the takeaway here is volatility spike is better at marking the bottom of the market than the other way around? >> it's always been the case bottoms are much more of a concentrated emotional moment whereas tops are kind of this process thatmight have to unfold over months if not even longer sometimes that's exactly true. you see the drama right here low vix. you had an "a" and a "v" lining up >> the vix rises while the stock market is rising, you don't see
that very often. >> that sometimes means the market is sniffing out the potential for volatility we did bounce in the vix in a flat market. time for a cnbc news update. >> scientists have restored some activity in the brains of pigs that had been slaughtered hours before the brains could not think or sense anything, and there are no current plans to try this on human brains but, clearly, the study raises profound questions about the line between life and death. surveillance video of new england patriots owner robert kraft allegedly paying for and receiving sexual favors during a visit to a florida day spa will be made public the palm beach state attorney's office filing the official notice with the court this morning. attorneys for media outlets fighting for the release say it won't likely happen before april 29th a climate change protester glued himself to a london train
today. this is the way he's protesting to pressure politicians to take more radical measures to protect the environment. nearly 300 people have been arrested in three days of protests and this robotic cook can prepare the perfect breakfast for you. i guess i'd be the judge of that at any rate, in six minutes, coffee, toast, sauteed vegetables, bacon and a sunny side up egg. tokyo university students invented the robot set to hit the market in 2020 we saw the roboting too today pulling a semitruck. this is much more useful we've got an engine for the truck. who is going to make you breakfast? >> i'm into it >> impressive robotic videos go. this gets a 3 out of 10. >> it's the most useful. >> it looked unimpressive that breakfast. >> i'm with you, contessa. anything to cut the time in the morning, yes up next -- preowned luxury fashion. y in neiman marcus tapping in.
we are currently on ipo watch. pinterest and zoom expected to price anylie picker joins us wi more >> i'm told the zoom pricing call is starting right about now. pinterest beginning in about 90 minutes. these are where bankers and executives will huddle together to figure out a final price for the ipo. two sources say pinterest is targeting a price above the range it had been marketing, that means either $18, $19 or $20 a share. zoom, similar story. two different sources told me the company is targeting a price at the high end of its recently boosted range or even above that new range. selecting an ipo price is far more of an art than a science. and no one is ever happy pick a price too high, we've seen this time and time again, shares will drop pick a price too low, the company will have foregone money
that would have otherwise been plunked back into their business in aggregate, issuers have left $65 billion on the table by allowing their stock prices to soar in their debut. that represents 13% of the total amount of proceeds raised between 2001 and 2018. but does it actually matter in the long run if a company's stock price gains or falls on the first day? turns out it actually doesn't on a market-adjusted basis. first day returns had little predictability for long runs post-ipo >> perhaps doesn't matter for that particular stock but how much does it matter for the pipeline and how well the ipos that follow soon after come? i mean, morgan stanley this morning seemed to be relaxed about lyft's fall so far since its ipo and very upbeat about the pipeline to continue >> that's a key component to this after-market performance for ipos is highly correlated to the
ability for future deals to be able to get done and to be able to get done at the prices they want so when investors are making money from an ipo, we'll be much more inclined to put their money behind the next ipo and the next ipo until that stops working and then the ipo window can shut sometimes that's due to market conditions oftentimes it's due to the aftermarket performance of the recent deals >> mike, i feel like tomorrow is going to be abouting becau inte you have two companies and this test about investor appetite for profitable companies zoom is one of the few unicorns that is profitable pinterest is not it's got a path to profitable. lyft and uber getting heat on wall street for not being able to see that. >> zoom fits much more neatly into what's already been working. so it's basically software, generally speaking, has been a very favored group we can analyze the numbers you have easy comps. it seems like maybe a little more tidy deal
pinterest, you essentially have to make a bet on the company's next act which is often the case when you have these unicorn ipos that have not necessarily been run for profits initially. >> leslie, thank you very much busy day ahead for you and we'll no doubt hear from you when we get the numbers specifically don't miss tomorrow, zoom founder and ceo on cnbc, eric yuan our next guest with a neutral rating on pinterest this week saying do not pin it to your portfolio just yet. tom joins us from d.a. davidson. why not? >> if you look at pinterest, the big challenge will be international monetization in the december quarter, their audience of 250 million month ly actives was 30/70. but revenue heavily biased to the u.s. average revenue for international was something like
9 cents. so if you are more optimistic than we are on the ability to monetize international, then i'd be more bullish. but it's going to be a bit of a challenge for the company at least coming out of the gate which is why we're neutral >> tom, how do you compare these or who do you compare this company to when you weigh out what its valuation is like >> from a valuation standpoint, i think the natural comparison is roku to the extent you have two companies today, pinterest has about $750 million in revenue. roku is about a billion in revenue. they're not really generating a lot of ebitda but advertising-based business models so they ought to generate ebitda in the future and we're looking at a 35% margin long term well, it's $16 the midpoint of the initial range for pinterest. you're looking at a company trading about six times the out career on revenue by way of comparison, roku is more like
4.5. so a rich valuation for pinterest, in our opinion. >> tom, the focus on the international efforts and whether or not they are getting as much tracks, does it tell you as a brand or as a product it doesn't resonate as much outside the u.s. or they've not really tried to push growth as much there? >> yeah, so, mike, i definitely think it's the latter. if you look at their international monetization, it's still very early stage however, there are some concerning trends. if you look at the average revenue per user, the growth rate in the second, third and fourth quarter of 2018 materially slowed versus the 2017 performance, and that did coin side with gdpr roll-out in europe as far as privacy now i do think that pinterest has some things going for it as it pertains to privacy versus facebook and others to the extent that consumers go to pinterest for product information and seeing the ads
is less bothersome but i do think it was a little concerning you saw that deceleration in average revenue per user on international -- such a low base. >> some warning signs. it's still a company growing 60% revenue in the last year tom forte, we'll see what happens. >> thank you we have some breaking news on the mueller report. eamon javers with the update >> attorney general william barr will hold a press conference tomorrow at the doj at 9:30 in the morning. so we do have some information here about how this roll-out is going to happen of the redacted version of the mueller report tomorrow morning what the department of justice hasn't said, though, is when they're going to release the actual report. presumably it's going to go online at some point for the public to read the question is whether that will be before or after the presser at 9:30. it will be difficult for reporters in the room to ask informed questions if they don't have access to that report so presumably the report will
come before that press conference but we don't have those details yet from the department of justice. also, we're told that rod rosenstein, the deputy attorney general, will be on the stage with william barr, the attorney general. so sort of a united front there. and an interesting format here the department of justice is only going to allow department of justice beat reporters. people there every day and have passes to the building to be in the room for that press conference so this will be the expert reporters only in the room for the press conference tomorrow. so a widely anticipated news event tomorrow morning at 9:30 at the department of justice >> eamon, thank you. mike, tough question when -- does this become a market event obviously a ton of general interest in it what would come out that could move the market one way or another? >> it's unknowable i think you could perhaps argue, if you want to infer the very kind of calm, tentative action of the last couple of days saying we know there's going to be the full report out on thursday perhaps the market is waiting and watching until there is
anything in there that's going to be relative to the 2020 election that's where it all boils down to if there's anything that's going to tilt the odds away from the prospects that the republicans will continue to hold the presidency, that's it. >> break news on jpmorgan. an internal memo saying mariann lake, the cfo, will become now head of consumer let me get the exact line here she's going to stay on the executive committee, and her new role will be head of -- sorry, i've missed the line of it she's become chief executive officer of consumer lending that includes card services, homelanding and auto financing she'll report to gordon smith, head of chase at the moment. for in time we've debated who is truly the heir apparent to jamie dimon of the younger crop. if you took the likes of gordon smith out. this move really does anoint marianne lake as the future ceo
in a three to five-year time horizon, not necessarily if it happened tomorrow. and timing -- i think you have to say is probably linked as well to the wells fargo new search for a ceo marianne lake was high up on that there's rumors this shuffle may happen for a while i was expecting it more later this year. i wonder whether that's been brought forward. >> she's staying here and next in line? >> she's staying here and next in line. also a big promotion for jen pepsiak who is becoming the cfo. so it's a broadening of roles and a change of roles for marianne lake. she's had such broad experience as cfo she's going to get more hands-on executive experience if she delivers well, she'd be the front-runner in a three to five-year time horizon for taking over as ceo one day just seeing some back and forth now on some -- no further
insight from jpmorgan. this is significant news this would rule out the chance she'd leave the company going forward. >> i keep thinking of jamie dimon in his testimony he didn't raise the hand when asked if the successor would be a woman. he clarified it. >> he clarified it on the earnings call. the question they were asked there was, could your successor be a woman he didn't answer he sat there stubbornly. on the earnings call he said this is a board matter, not specifically my matter >> some did raise their hand >> some did raise their hand the question was so open anyway, could it be? it's not confirmation. this is interesting. >> more telling. >> more telling. interesting timing it's probably been brought forward by the wells fargo news. no move in the stock jpmorgan had a great run, though since they reported it
ahead we'll lk to tathe head of amazon's audible division about the company's plans. eve? when you prepare for retirement with pacific life, you can create a lifelong income... so you have the freedom to keep doing whatever is most meaningful to you. a reliable income that lets you retire, without retiring from life. that's the power of pacific. ask your financial professional about pacific life today. whai tell clients, etfs can follow an index, but which ones target your goals? it's not about quantity. it's about quality. no trendy stuff. i want etfs backed by research. is it built for the long-term? my reputation depends on it. flexshares etfs are designed and managed around investor objectives. so you can advise with confidence. before investing, consider the fund's investment objectives,
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they're taking a minority stake in fashion file. it's an online seller of preowneddesigner handbags and accessories. obviously, interesting because it kind of goes against its own business model of selling those brand-new designer digs. but it's also been a sensitive topic for designers. especially chanel in particular. the whole resale market that so much money is made by other resellers that don't have the license to sell the actual designer goods the whole idea is that they are preowned but, hey, a hot space >> it shows this sharing economy resale gets into all areas and it reminds me of goat. we had a goat, of course, himself on the show earlier, but sneaker resale business goat which originally -- >> but those are new, right? >> no, resale. originally the brand hated that. they've got on board and it's a central selling place for high-end sneakers, whether they're new or not the brands got involved to certify what was being resold, having initially not liked it. i feel that's the model --
>> i think the handbag also goes into the decluttering movement you know, unload some of your older bags and buy a new one >> that's what i do with mine. >> foxconn chairman terry gou has declared his candidacy for president of taiwan. an estimated net worth of $8 billion. the tycoon hopes to keep peace between taiwan and china it's an abouting one the spat we know, not just the spat, but the longstanding historical/political clashes between taiwan and china he's the biggest private employer in china. over a million employees and so on one level it looks optimistic that could, therefore, see a peaceful, if you want, a peaceful coming together of the two sides. on the other end, in taiwan it's framed as if he's a bit of a puppet for china foxconn, of course, manufactures lots of products for u.s. tech
firms. say good-bye to video games -- >> not a fun story >> just trying to conserve time. >> or at least say good-bye to the discs that video games were once played on microsoft will be the first tech giant to ditch the disc and plans to sell a new xbox console that doesn't use cartridges or disks. it brings the industry closer to an all-digital future. wasn't that long ago the party line was that the games are so data rich and they are so dense that you would always need discs because broadband and cloud wasn't strong enough wifi is how games are played it's not the case anymore. >> i get that point for why it's taken this long but who even still has a dvd player surprised we haven't gotten to this point quicker it's more bandwidth heavy, but dvds -- >> i remember that build up such a collection and then -- >> to your point about the bags. gamestop is all about trading in your games you try them so i do think that subscription
is the way of the future it's like when they stopped selling cars with cassette players. >> how young do little boys start playing video games? >> 1 1/2 >> now it's just ipad. almost live, it's saturday night, sort of "snl" creator lorne michaels is producing audio comedy exclusively for amazon's audible unit with some of his "saturday night live" cast we'll talk to the ceo of audible about the deal and the hot market for audio content right now. 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
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>> hey, wilfred, thanks for having me. tell us what you wereable to break earlier and what have you learned since. >> yes i spoke with former facebook employees who told me facebook has been working on a new ai voice assistant. this is an effort that's coming out of the company's arvr lab and specifically it's a team up in the redmond, washington, offices, led by ira snyder who is a former microsoft employee, and so basically they just want to build a new assistant that can go up against alexa, google home or apple siri. >> all right, sal, thank you very much. >> you'll have more on the story on cnbc.com. 44% of americans over age 12 had listened to a podcast by the end of 2018. with that number expected to increase to 51% this year. joining us to discuss whether audio is the next frontier in the content wars is --
>> is don katz >> wonderful to be here. >> the top end of the range, but is it something that young people in particular are really taking up with gusto >> well, so first of all, of those tens of millions of people many of them are audible listeners and audible is a soaring thing and tens of millions of people are actually are customers and they get massive access to not only the largest audio book collection in the world, but also a huge array of original programming. people are writing to this aesthetic and people are writing to this form and we've had 20,000 actors as audible directly just creating new programming and there's a difference between that and radiolike podcasting so the allure of using audio is an explosive thing, and our company has been soaring, frankly since we invented the first digital audio player and commercialized it in 1997. so you know, there is a division
in that world of what these things are, but we're really mostly about profound levels of storytelling and that addicts huge numbers of people around the world and it's an amazing thing that this idea and tens of millions of people listening not. it's been a fantastic adventure, but it's a very dynamic world. it's very diversified and there's a big difference between a public radio like podcast and what audible offers these millions of people who pay us for this incredible service. >> along this journey, you got bought by amazon >> yeah. >> you are now, what operating independently? >> amazon has been pretty smart about taking people like me as founders and companies like ours and proclaiming that we have an independent brand and a business model and a different culture. so it allows us to have the beauty of inventing with amazon and access to some of the greatest collection of customers in the history of commerce and it also allows us to plan
together and the like and it's a wonderful relationship as i often tell people deciding between things like ipos and becoming a freestanding subsidiary >> do you tell them how to get bought by amazon >> i do, indeed. >> i do do that. >> spotify has been pushing into podcasts and amazon is launching some rival aub descriptisubscrie and who do you see at the audible part of the business. >> there are lots of different companies coming in. recently someone said there are over 40 different competitors and this large, diversifying segment and it's a welcome thing as is spotify coming in for the world, too it all accrues to the fact that the audible, basically created a category around the spoken word that should have existed all along, the audio stuck in book
publishing and if it flourished when thai drive to work and exercise and you reported listening at home is off the charts and it becomes this highly hab itch waiting way to use the times of the day when your mind is combis. >> long term, is it an ad-driven business or a subscription >> at this point given our traction it is a subscription business, because of the revenue business i came out of the magazine business and for 20 years i was a journalist and believe me, ad models have heavy cyclicality and when you have something worth paying for and you actually have a subscription model, too, you have countercyclicality and you know, the reality is the magazine business didn't hit the rocks because of the internet. it hit the rocks because of giving away the subscriptions ares and only having the ad model to ride on. >> don, great to speak with you. >> don katz of audible. >> go ahead, mike.
>> final thought, give us something to watch tomorrow morning. >> we're watching these same levels that we've been hovering under for a very long time and i don't think the data we're going to get and honestly and see if the market does respond to the mueller report because for a long time it's been really only in the periphery >> okay. great stuff. that does it for "closing bell" today. >> "fast money" begins right now. "fast money" starts right now live from the nasdaq marketsite overlooking new york city's times square. i'm melissa lee. tonight's lineup, brian kelly, dan suzuki of richard bernstein, karen finerman and guy adami the unicorn set to start trading tomorrow and we should have pinterest and zoom in moments. plus it's a health care headache, the sector getting slammed today down another 3%. we will tell you what's wrong with this group. we start off with a is celebration for investors, the nasdaq 100 hitting an all-time high for the first time since october 1st as tech is specifically a