that are going to be more deliberate about rate moves we think is the right thing. diversify fixed income. all on spread assets that are going to be much more zlt in this environment. >> closing bell starts right now.resilient in this environment. >> closing bell starts right now. hi everybody. welcome to the "closing bell." >> stocks turning to the downside. financials getting a pop in the last hour after the fed revealed a june rate hike is still very much on the table. we are we're going dig deeper into those comments. an all-star panel coming up. >> google announcing its new mobile virtual reality platform. >> what we've built won't be available until this fall but we'd like to introduce you

today. call it daydream. >> the head of vr will join us to discuss this daydream. in a first on cnbc interview. >> in the meantime after losing a second lawsuit claiming johnson & johnson's talcum powder causes ovarian canister, they are speaking out right here on cnbc. comments in a moment. >> and super bowl of bio tech coming up in just a few weeks. we'll start getting data from a number of companies that that could cause sol bic moves. >> and fed minutes released about an hour ago. steve leisman has some of the highlights for us. >> thanks a lot. the u.s. federal reserve strongly suggesting the possibility of a june rate hike if the economic data improves and that is what they expect to happen. in fact in the minutes before the april meeting that came out just a few hours ago the fed said some of these conditions are already been met but many

members of the fed expect the other conditions to be in place by the time the fed meets in june. that means further evidence by the economy is rebounding in the second quarter from the weak first quarter. if the minutes are met it likely would be appropriate for the committee to increase the target range for the federal funds raid in june. some in the fomc said they were concerned about risk in persistent sloweden and continuation in in over seas and mentioned the brexit vote as well. however the minutes also as it was they decided to keep open their options for the june hike. a lot of attention will be paid

tomorrow t. fischer and dudley's commentary could go a long way. >> that is going to be very interesting. steve, great stuff. thank you. talk to you later. let's talk about these fed minutes. the markets not so favorable reaction to them and our "closing bell" exchange right now. joining us an mohamed, dorothy, steven and rick santelli who with's in chicago. dorothy, clearly the market interpretation is that june is more on the table than we earlier thought. do you agree with that? is it? >> clearly we're being guided to be prepared for them. partly because they don't want to surprise the markets so we're beginning to see the fed

spokespersons out there beginning to prepare the market for it. don't know that that necessarily means it is coming but it certainly means that if it comes, they don't want it to come unexpectedly. >> mohamed, is there a risk that we start to price it in now? in a way almost making the hike happen and then making it hard for the fed to actually move forward the markets don't do well here between now and the meeting. >> so the fed is torn. it is worried that we have been underestimating the probability of a rate hike and markets are starting to be more realistic in terms of what has happened to the two year treasury that has moved massively over what's happened to the probability. you know the fed is always torn. is it leading the market? is it reacting to the market? the clear message today is this is a fed inclined to hike rates. if it weren't for brexit, it probably could hike as soon as june. but it will definitely hike this year. that is the message from the minutes. >> sarge, what did you think of

the market response? it is no secret you and i carry an daily clog about the markets and where things stand right now. do you think the markets were caught by surprise by this? >> i don't think so. the market is up. the banking sub sector is up almost 3%. clearly they have been told by banking owners it is time to raise rates and if they can justify it they are going to do it. it's a victory for the savers. victory for the old folks which is a good thing. if the fed wants to join the family of sentient beings i women the welcome them. >> we talked about interest rates and flattening curve. do we see things moving higher and responding favorable? are they encouraged longer term? >> i i just think favorably is not a good word for that context. i don't know what's favorable.

but i will tell you this. the long end has multiple personalities. there are a lot of things effecting the long end. so i think it is very hard to answer how it is going to respond if and when the fed actually delivers on its promise of likely, which is also a big deal. but i think that it is all about the short end with regard to the fed. and the long end is about relative value, what draghi does, policy, contagiocontagion fact that we are doing a tightening in a 2% economy is something very unique. so i wouldn't be surprised to see a lot more koount intuitive moves in the market. but suffice to say in general terms all rates at least have been moving up. at least at the two year is a sprinter and the ten year is like a tortoise. the dollars probably your best gauge. and tell you what the dollar actually does have a nice head of steam. in terms of doing damage to

market and mohamed is always great in this category. but now or whenever they are not going change the laws of financial physics. when they tighten the dollars going to go up and the stock market is going to have a bit of agita. but down 6, down 7 isn't that bad in my opinion for today. >> rick set it up for us pretty well. the prevailing wisdom has been for a lower dollar and commodities going higher, most notably the price of oil. could that change if the sentiment switches to the expectations possibly for a rate hike in june? >> yes it could. remember, the fx market relatively is torn. that is relative price so it has to keep an eye on elsewhere and here. if the fed unambiguously signals it will move, you will see a stronger dollar and that will have consequences on other market as rick said. >> we're still going to hear

from fed chair janet yellen before the june meeting. and fischer and dudley. if they are really serious about going in june and that really being a live meeting we would expect all three of them to basically give us the same message here, right? >> i think it is going to be really important what they say. there is no need to necessarily pick june. you still have the situation in uk with the vote coming up right after that. so to postpone it post that would not be a problem. definitely be going up this year. but i think hear interesting the three of them is going to be sending very intentional guidance to the markets. and so we need to be listening. >> sarge, the financials. they are the leaders today. they were before the minutes. they were certainly after the minutes came out. is that an area you are going to start to sniff around here? what are you going to do with

those guys if as i said to mohamed f the sentiment continues to grow that the fed is think act june here is this. >> i don't know if you want to trust it just yet. retailers have been beaten down. technology has been. i think you will find better value elsewhere. in you want to get into the banks maybe you want to buy one or play options. i don't think you want to jump in with both feet just yet. >> you are still skeptical we're going to hear more definitive line of hawkish attitudes from dudley and fischer tomorrow. >> they have said the right things but i've told you for weeks. the dxy they want it at 95. it was around 92, 93: they wheeled out about six or seven hawks. got it up to 95. now with the minutes if it starts creeping higher they are going to start talking more duffyish because 95 is where

they play nice in the sand box with the other banks. we have a long way to go before june. so are a long way to go. >> what would you add mohamed about the thinking about the level of the dollar here? >> i think it is hard to target the dxy. there is too much going on both here and over seas to target an effective exchange rate level. but i think the general point is correct. moves and financial conditions a whole is making them more confident about going forward. and they were worried about markets underestimating the possibility of a rate hike this year and they wanted to do something about it. and first the fed regional presidents and now the minutes confirm that they want the market to price at a higher probability of rate hikes this year. >> having said all of those though mohamed, before we let you guys go. it's been highlighted that the brexit vote in the uk is just

after the next fed meeting. could that be the wild card that keeps them from raising rates just in case? >> it could. i think, you know, if you work backwards we'll definitely have a rate hike this year, maybe two. how early, july. could it be june? yes. but the polls for brexit it would have give a lot of confidence that british citizens will vote to remain. it is hard to say june or jewel because you have this massive brexit vote on the 23rd. >> interesting. yeah. go ahead. >> the more general point is that the markets had priced the probability so low before 4%. now at around 25% is more reasonable. i'd put it slightly higher but i wouldn't put it at 70 or 80%. >> mohamed, rick santelli. you are assuming the brexit vote is a negative if they leave. his three is unwritten. whether the euro experiment will be a long lasting, in ten years

when i look back and see it all break up and if the uk leaves, we could say wow they were brilliant early. i just find it so fascinating, that if they think the uk is going to pull out, that is assumed by everybody to be bad news. and i have a problem with that. your thoughts? >> so rick -- >> but it is not just bad news. >> -- long term i don't think this is alarming issue. for two reasons. one it will be replaced by something else. britain will videoan association agreement with the eu. and second briden was trz a free trade zone. so there were different versions. short-term what will it be replaced by and how quick. you may see short-term disruptions but over the long-term i'm not an alarmist at all. >> and dorothy? >> yeah, so the issue really is uncertainty. that is what is the issue. and pushing it to june when you

can come right back in right after it, no reason to jump the gun on it. because there were -- could be uncertainty following it. might as well get all the of the cards face up on the table before you have to show your hand. >> dorothy, mohamed. you are saying it's quite possible a july rate hike even though there is no press conference that meeting and we haven't seen that since they started dining these press conferences every other meeting they could go in july that is a live option to both of you? >> mohamed? >> yes it is. >> dorothy? >> sure. every meeting is a live option. and they want to try to get a hike in this year as soon as, they feel, possible. they just don't want to jump the gun on it. >> guy, i think june is far more likely than july. i just have a feeling we're going to go in june. >> all right. that is what makes a market. appreciate you all. about 45 minutes to go here. market was almost briefly looking like it might be in positive territory for dough.

down 46 again. the s&p 500 is down a quarter percent. nearly 5 points and the nasdaq is in the green by 11 points. virtual reality. google's head of vr gives us the scoop on the tech giants plans to stay ahead of the pack in the growing category when we come back. >> and bio tech. thousands of data sets on new development and cancer drugs begin to be released tonight. we'll tell you which stocks to focus in on.

welcome back. watching the markets digest the fed minutes which released about an hour ago. the market was higher as soon as they came out, it turned lower and that is where we remain with the dow down 46. s&p down 4icious the nasdaq up 10 and the tesla stock is rising. citing increased confidence in consumer demand. >> and it makes sense. just yesterday or monday they said they see higher oil prices

coming. so you would go with the alternative energy cars too. >> and yet today interestingly enough now that the dollars making a comeback we'll have to watch oil prices and see how they go. >> we'll take a break. holding with a decline of about 50 t dow was up about 75, as kelly pointed out when the fed minutes came out. >> and jeff lucas speaking with dave faber about an hour ago. that's coming up. >> and embrace yourself for after the bell earnings. tonight we have cisco, sales force and urban outfitters. we'll tell you what the street is looking for and breakdown the results when they hit the tape. nobody does it better than the "closing bell" team. coming up. ♪ somewhere you pay your car insurance

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google is kicking off its annual io developers conference in california. one of the most anticipated announcement this is year is about google's vamts in virtual reality.advancements in virtual reality. >> and joining sus us is josh lipton. >> thank you. as bill mentioned the big news today was google making this mush bigger push into virtual reality. you have now daydream, this new vr platform you have built. walk us through that news, clay. >> daydream is all the

ingredients you need to create really high quality immersive vr experiences. we started designing smart phones with specifications that will enable to drive the design. and we've created a headset and controller. and finally we're working on a bunch of apps and experiences, like youtube vr, you can so you can step inside concerts and events and other things and experience them like you are actually there. >> and daydream. that is the platform. >> and it's very important users have a really comfortable experience in vr and developers have that consistent set of functionality to target. so part of daydream is a set of specifications for the phones and we've been working again with the likes of htc and others

to create phones that meet specs and we can guarantee a high quality user experience and consistent target for developers. >> clearly, virtual reality is seen as the huge growth category. i wonder about potential pushback from hollywood. as you now know steven spielberg the other by a was ringing his hands over the possible intrusion on motion pictures where the viewer would be more immersed in the motion picture and the be able to look and decide where to watch this movie. and spielberg is worried that will take away from the story telling aspect of motion pictures. how well do you think hollywood is going to embrace virtual reality? >> well i think as with any new medium or technology there are new things directors and cinematographers need to figure. just as they needed to figure

how to use 3-d or i max. i see vr as another tool in the story teller's tool box to bring them yet another way of bringing users and viewers into a story and enabling them to experience flit a new and more immersive way. >> i wanted to ask more how this works. we know you have cardboard. is this a step you have above and beyond that? and what kind of headset and controller interface are we talking about? >> so daydream is a big leap from cardboard. we love cardboard because it was mobile and approachable and fun for everyone. and we've taken those tributes and also built something much more powerful. much more immersive. and it turns the phone which is built to be a phone and the core of a vr system into the core of that very high quality immersive

vr experience and the controller that pairs with it will let you interact with things. point at things. move things. and it can turn into everything from a fishing rod to a pan to flip pan takes in and much much more. so it is a big leap in terms of quality and immersion. >> final question. we were talking to traders and investors. they want to know how do you make money off this? how does google think about moneting vr? >> we always think about a great product and experience first and then figure how to monetize it. but i think it is easy to see potential in vr, where for example you could have tickets to an event that were both real tickets to attend the event in person but also you could be there virtually in a by a that feels as if you are there. >> thank you for your time. appreciate it. >> thanks for having me. i love that. something as high-tech as virtual reality relies on

cardboard. >> and as the nice way to go back to basics here. really interesting to see how people like using the headsets and controllers now? >> david faber joining us. >> because the head of time warner speaking with him exclusively about an hour ago. what did he have to say? >> we haven't speaken at least on camera and publicly for quite some time. and of course a lot has happened since we last spoke. but one of the key questions is the emergence of these over the top platforms that will include some bundles of programming and be available to people via broadband perhaps presenting opportunity for people to turn off the video service and the cable bill. and i did ask, well, given this new environment that is increasing in terms of competition and availability of various over the top bundles,

what is your strategy? >> in most cases able to watch your tv not work on demand. you can't through it. you can't find out do i go back two weeks episode or what i do. what you are seeing right now finally is that the entire tv environment is finally getting on demand and good navigation. i think you are seeing it across the system! there you hear it. but of course a key question becomes all right fine all of these platforms are available to you and the bundles that are being put together by various providers. why are your channels going to be a part of them? and that is a key question for so many companies out there. in fact discovery shares are down in part because of a note out from city saying they are not sure their channels will be part of a bundle. >> mr. bewkes says wells well,

ours will be part of every bundle and i asked him why? >> we think the numbers are bearing it out and we think we've got the biggest broad appeal. and the world news leader in cnn. a terrific kids network in cartoon cartoons and others. if you have those kind of networks with that much reach and power -- and we don't have a lot of marginal networks. when people are constructing these new bundles whether as the comcast or a verizon. trying to make -- they have the big bundle, they have smaller -- >> and there he is in. in profile as am i. of course we are not going to stop talking about this subject for a very long time, given the earthquake that is occurring. maybe slowly but steadily in this business. >> somebody wanted a second camera on that. i can tell. >> we had it. >> tv. >> we're trying to figure it out

here. >> i hear you. >> we had the ceo of cox on yesterday. now jeff bewkes on and nobody is willing to say that eventually we're going to have all a la carte programming. do they still believe viewers want bundles? maybe a skinny bundle? do you buy that? >> a way i do. what you will hear now is listen. at a certain price point it makes sense for the family at home that likes to still watch on the big screen. economically it will make sense to have the old fashioned bundle. and i'm sure that will be the case to a certain extent but i also believe we are in the midst of a seismic change in this industry. regardless of what they want to acknowledge. and the opportunity to purchase the skinnier bundles that fit what you like is only going to proliferate. you walk around and see all the young people we work with. ask any of them whether they have cable at home, meaning video and most of them don't. >> i'm wondering whether this all adds up to more or less

total aggregate dollar spend per month, you know, for the companies. even if there was a bunch of skinny bundles it feels like a bunch of streaming music or other things happening. people might be playing less in piece but more o as a whole. >> it's possible. yeah. the that is a big thing the consumer and how much they are paying and how things will be bundled including the likes of music. >> yeah. or throw it in the bundle. you can throw anything in the bundle. >> it's been fwunlding with you just now. >> as with you bill. >> didn't even involve cardboard. two powerful quakes hit ek dor today.ecuador today. the first quake hit along the pacific coast knocking out

power. limited damage was reported. the obama administration has issued a new overtime rule aimed at making sure american workers get paid for the hours they work. the new rule will require employers to pay employees who everyone up to 47500 a year time and a half for work completed. ever edward nero is one of six officers charged in gray's death. and how about this. 100 year old ella may seat world record. she fell hard there. but dusted herself off. and finished. running the distance in 47 seconds and that guys breaks the old record in half.

she's a hundred years old. >> she doesn't look at it all. >> i know. look at her. look at those moves. >> there is something for you to shoot for. >> she's got it going. god willing, just to get occupy from that. >> yep. >> holy cow. that is fantastic. >> she's amazing. >> good for her. >> one of my favorite stories of the day. i have two two. the christopher columbus story of the day and now ella. >> -- >> they're reacting to it back there aren't they is this. >> yes. here the dow holding with a decline about 60 and a leading trader will tell us whether he's watching as he head towards the close. >> and mega turrel has a special report on bio tech stocks. stay tuned for that.

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yesterday, kelly. >> so that remains a bright spot. what do you think of the market? >> well in the absence of any compelling news it seems to be trading more in emotion -- >> are you saying the fed mins are not compelling news. >> i think it is news but i don't think as compelling as people are making it out -- >> even though it changed the expectations of the rate hike and all that. >> look everybody talks about the quarter point or rate point or something of these things and then it becomes something that can't be reversed if the fed so deems it necessary so i again i think there is a emotional response and commodities get hit a little bit but maybe not as important a factor as other things we've been seeing. >> such as. >> well there just seems to be a sort of sense of negativity in some of the european countries. some of the brexit news, brazil,

some of the things we've seen down here in some of the specific stocks. but overall i think we're trending down lower. in the absence of any real news. but monday they tried to rally him. didn't get anywhere. they didn't get anywhere today. but the sense down here from a lot of guys head into the last half hour here that at point there are going to be some good deals here for these names. >> all right. thank you. heading into to the klose the dow down 62 points. johnson and johnson is fighting back claims that it's iconic baby powder is linked to cancer. two jury trials agreed that it has. meg turrel has the latest on that. and still ahead what too watch for in the earnings report. sales force, cisco, lbrands and urban oufrts. coming up.

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>> johnson & johnson has been facing a series of lawsuits claiming a link between its talcum powder and ovarian cancer. most recently this month ordered to pay $55 million in damages. take a listen to what he said about this. >> in this case we think frankly it is inconsistent with more than a hundred years of experience with powder. more than 30 years of very compelling clinical evidence. so look in these cases we think the right thing to do is to appeal it and continue to fight it. but we put safety and quality first in everything that we do and we are particularly site excited about some of the newer things that we do in this area. >> analyses point out these haven't really effected the stock which is trading near an all time high.

the focus today was really how are they going to grow those bill and kelly. >> the things that bothers me is that either the talcum powder causes cancer or it doesn't. why leave to it a jury? why isn't there a panel of scientists who are ruling on this whole thing? it just seems a weird forum to be deciding this. doesn't it to you? >> yeah, bill. i totally agree with you on that. it seems od you are not having a jury full of scientists. and when you look at evidence there's several study fwus results are all mixed. there doesn't seem to be scientific consensus. people on both sides are firmly convicted in what they think the evidence shows. and essentially what they have said is based on limited

evidence from human studies of the link to ovarian cancer they classify this use as the feminine hygiene product as possibly carcinogenic to humans. so to use a horrible phrase t jury does seem to be out on this. >> and shifting from cancer causes to treatments that is going to be in the spot lat spotlight later todalight spotlight later today. >> more than 5,000 data sets will be released at 5:00 p.m. ahead of the conference in june. we're going to be looking for a lot of data from big pharma companies like merck, bristol-myers. pfizer. roche which just got a new approval this afternoon, well ahead of schedule. so this has really turned into an immunotherapy dmompbs soconf

some ways. but others are being closely watched. >> i'm glad you mentioned because it seems like an interesting quirk how this happens. we have to kind of wait until the actual event for more clarity? >> yeah. often this can be earlier data sets and they will be updated or sometimes the final data gets released tonight and you hear more presentations at the conference but it is odd how it works how some data sets are released in advance and then you learn more at the actual conference. >> thank you for joining us. we'll let you go for now. and those results will start coming out after the bell. well after the bell. 15 minutes to go here. dow is down 53. s&p is down 56. the nasdaq is hanging on to a gain of 8 points. >> next, has the fed lost control of the yield curve? talk about that after this

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12:30 left in the trading session. a $600 million to buy. >> it is coming back a little

here. >> and more possible volatility coming your way. our earnings squad on the case here. domonic choo. susan lee. and courtney reagan with l brands and urban outfitters. >> the average annalsed estimate according to thomson reuters. for cisco today. investors still scare about what cisco says because it is the biggest make of all of that equipment. the big sellers of course for cisco, switches and routers. but also data centers. any commentary on the forecast or macroeconomic conditions will be key as well. the stock has finished higher the day after earnings. cisco's report will be the next big thing on data about

companies and governments around the world if they are spending on enterprise technology. >> thank you. susan lee and more what we can expect from sales force. >> adjusted eps of --. billings also a key metric. and this measures revenue plus change in deferred revenue. and we're expecting 1.5 billion. which represents an increase of 16%. shares have been pretty volten since the end of last year. they have rebounded 40% since february lows and something else to watch for. stock based compensation. representing 12% of fiscal profit and if the stock price falls the sales force could engage and they could have to do

more aggressive resolution to compensate employees. >> and two retailers are about to report earnings as well. >> investors shouldn't be surprised by lbrands. we know q1 comps will be up 3%. revenue will be as they told us. lbrands also guides earnings at the high end for consensus 55 cents. expectations have been fallen for urban outfitters. the street is looking for soft revenue and comp sales. consensus for earnings of 25 cents on 759 million in revenue and comps around .4%. we'll see. >> thank you all. we'll see you at top of the hour with the earnings reports. with the dow down 29 right now. joining us is --. nice to see you. what did you think of the market

response and the fed minutes here? seem to suggest a little more bias towards a rate increase in june. >> yeah i this i they tried to preface it with some of the fed speak that came out earlier why not prepare for hawkish fed minutes. one of the things is why so hawkish. i think the conclusion the fed has come to is that zero interest rates and negative interest rates are off the table in the united states. they see what's happened in europe and japan. and the faster they can get off zero and away from zero is the better for them because the only thing they are going to have on the way out except for another qe is to move rates back down. so i think -- off to the races with them because obviously that takes zero interest rates and negative interest rates off the table here. >> same for you though and reraised this earlier and we've

seen this before. as soon as they indicate this might happen, markets rush to price it in. does that keep them from actually being able to raise rates if there is a lot of turbulence as a result? >> you know, we had brexit issues for june. as brexit came off really the increase in rates should have got a little bit -- probably should have been raise and it really didn't. stayed stagnant like 16% for june. now up to almost 30%. september --. where he have verizon strike effecting claims. went from 250 to 290 so tomorrow's number is going to be big to see whether it is noise or data dependent fed saying oh my god we're lowing down. >> another way. has the fed lost control of the yield curve? the yield curve has flattest it's been in nine years. >> the black swan could be is that the fed loses control of the yield curve.

because of the global compression in yields. we saw dell five times over subscribed. that was abrupt. and now -- so anything with a yield is getting sucked down the zero and if that happens let's say the economy heats up and the fed can't do anything but invert the curve a lot because the long rates there is no quality paper out there so long rates stay low you have to go maybe double whether the long rates are. 4%. 2%. who knows. >> once again. thank you. breaking news on via come via com. >> voted to stop paying chairman emeritus sumner redstone. that is a move taken. and all we have at this point. >> the soap opera continues.

>> yes it does. >> thank you sue. >> do you know what i learned the other day. that procter & gamble it was their ideas to create soap operas so they would have an advertising vehicle. don't take it to the bank but something to think about. >> sponsors had a huge role in those soap operas. and game shows too. >> in today's world what's the equivalent? any case, you have a closing countdown. >> yes i do. >> after after the bell mark zuckerberg is meeting with members of the conservative movement to discuss allegations of suppressing conservative news. watching cnbc first in business worldwide. real is making new friends. amazing is getting this close. real is an animal rescue. amazing is over twenty-seven thousand of them. there is only one place where real and amazing live.

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even when i'm on the move. sign up at etrade.com and get up to six hundred dollars. can you e tell when the fed minutes came out? let's start with the dow jones industrial average and see if we can tell. oh right there. >> yeah. >> the 10 year note. let's see if we can tell wrapd what happened this. >> stocks went lower. >> trending higher. got above right at 2:00. >> the effect had been softened some. but clearly all yields went higher today. >> we can take a look at the

dollar. >> let's do -- >> -- rally. >> -- back to 95. >> -- could be headed higher in june. >> and what happens when the goes higher? what goes lower? >> oil and gold. >> gold. let's see that. would have been its worst days in several weeks after the rally it's been going on for white a while. so clearly the markets having to reprice a number of asset classes to get ready for the possibility of a june rate increase. >> and after all this the dow looks to be closing down 10 points. banks took another leg up. we also saw strength in tech and bio tech. and one reason the nasdaq had the shortest decline and helped to keep the nasdaq out of correction territory which it was flirting with at the close of trading yesterday.

>> and how to we have earnings. coming up. cisco, sales force, l brands, and urban outfitters. so technology and retail. >> and walmart. more importantly two fed officials who are voting members are spoking. bill -- >> more than just fed officials. the vase chair and the head of the new york fed. >> -- but. >> -- >> red headache -- >> dudley gave an interview tot the "new york times." and we'll see whether or not they add any more fuel to the fire so to speak about all this. these expectations for rate hike. as soon as june. >> we flif interesting times mary thompson. >> we do. but it is a bit of a repeat every day. it's been the fed the fed the fed for, you know, a long time now. >> ground hog day continues. >> yes.

>> 200 point swing from top to bottom but finishing virtually unchanged right now. the close of the bell here at the new york stock exchange, shareholders services association and sim corp ringing the bell. thank you bill. welcome to the "closing bell" everybody. i'm kelly evans. we were up. we were down. finishing just about on the flat line. a slight drop for the dow at 5 points. and the s&p fractionally higher. we'll keep an eye on that for you. 2040 the level there. and the nasdaq up about half a percent. embracing yourselves for more out the fed tomorrow morning.

nevers are getting set right now for a big round of earnings. dominick choo, susan li, courtney reagan and urban outfitters. cnbc commentator mike --. and carol roth. welcome both. fast money trader steve gras sew will join us shortly. seems like we're up and down up and down. >> the market had to readjust to what was going on in the treasury market. not a full on panic. that is isn't the temper tantrum because i this i the idea that the fed officials wanted to inject more uncertainty was out there for a little while. so all that happened was you had to take away the trades that were based on the premise of no move through labor day. so really we're just adjusting

to this new move. so i do think that there is this delicate balance. banks weigh up and bond light stocks getting hit today. >> -- >> little more spence being built? >> it does. the flows as one treasury reporter was saying the are most active since the minutes of january 2015 fomc meeting so there's been a lot of flows trying to reprice for fed expectations. so the, you know, the debate over this meeting t next meeting. boy, does it continue here. >> it does continue. and i think what the fed did is not necessarily say that june is 100 percent on the table but they opened the door that july has a higher likelihood and as we move down the calendar those likelihoods increase and from my perspective i think that this is long overdue.

i think the market digested fairly well. i think you have to look out at the calendar with the uncertainty of the presidential election and what they may end up doing to the market. they don't have indigestion yet but as we move into the next couple months we're going to be seeing some rough tummies, so to speak. >> the best performer today was financials. the worst utilities. it's an interesting question. people came into the year certainly more position forward the -- by the way steve gras so with us. look at the moves. city group up almost 5% again. does this continue now. >> if you look at the utility space and the etf, the utility space on lows in february was only down what, 5 factor fr% fr. so every time you bet against

yield, i think you lose. you can't have it both ways. you can't say that a right rise is not going hurt the economy. you can't say a rate rise is going to do anything impactful. and then you say well that is the reason why reit, utilities and staples will be sold off. but every time you sell those everyone comes back to them. so xlu is up 13% year to date. if you look at the energy complex the sles are only up 10% year to date and that sector has been screaming. so i would think that basically the death of utilities has been greatly exaggerated. >> i think it has to be repricing. if the 10 year yield goes back to 1.7 they hold the bid. above 2 then the pricing mechanism gets thrown -- >> and my point i guess it's got to be something a lot more traumatic or dramatic move to see anything like that happen. >> and it is not just the utility stocks. it is any of the consumer discretionary names or the quote

unquote more value names because of the high yield. the high yield paying stocks. have to keep an eye on those as well. >> and diseait is not just stoc. people again are trying to figure out how forage rl we. it is really interesting. >> it was firm today. stronger than the government bond and investment grade market. as long as that continues we could be okay in stocks. >> let's start with courtney raken. >> earnings for american eagle beat on every metric. reporting earnings of 22 cents per share. wall street was looking for 18 cents o. revenue of 749 million. the con sense was for 731 million. comps of 6%. analysts looking for increase in comparable sales at 4.5%.

calling it a strong first quarter in the face of a tough operating environment. saying that the company had compelling merchandise strategic investments and solid execution across the board nearly and he's optimistic about the future. a beat for american eagle nearly across the board. shares up 8.5 in response. >> big move there courtney. thank you. again, the team retail look what's happened with -- aero postal just went bankrupt? abercrombie is trying to turn the ship around. >> it's interesting. we're hearing retail is dead. and here you have a specific name that through execution was able to manage through that all. so i think that this is a really important point in terms of retailers looking at the product mix. looking at what they are trying to do to write their individual -- >> -- last week we got retail sales and what were they buying?

they were buying apparel so everything looking for entry point in department store but maybe you just buy straight apparel. >> i look forward to hearing from l brands in just a moment. and cisco's out. domonic has the numbers. >> shares up about by 4.5% for cisco. this is the world's biggest maker of computer networking equipment. this after the company reported earnings of 57 cents a share. beating the average analyst estimate of 55 cents. revenue slightly better. $12 billion on the nose. analysts looking for $11.97 billion on average. we should note also appears their guidance looks above some wall street estimates for both eps and revenue. earnings beat, sales and

guidance looks better than expectations. shares up now 5%. we'll dig into this a little bit more but some consider this a big bell weather for tech spending. the conference call gets going about 4:30 eastern time immediate we'll bring you all those details. >> the top line comes in with 12 billion in revenue and both cisco and sales force somewhat indicative of our business is really spending here. >> cisco benefitting from really low expectations. nobody was really looking for that much out of here. a business casualty of the stronger dollar. that's eased up. the stock itself was 26 before the report. it was 26, six years ago, three years ago and ten years ago. so hopefully it can get moving. >> jmp securities now. as dom mentioned. top bottom, guidance. the whole she bang.

what do you think is going on here eric? >> thanks for having me and it is great to sew cisco posting modest upside. this is a company certainly first communications company to report an april quarter and after a pretty rough start to the jeer it is good to see they are able to deliver and maybe good marginally higher. good results. >> what about mike's point though the stock has really gone nowhere for a while. it is kind of rubbing in place. is this a breakout? >> we're at neutral rating on this. largely because i do think that they have done everything in their power to optimize the operation -- from an operational perspective, you know, efficiencies there. they have to generate top line growth and that's been pretty elusive for them. to get a breakout. i think they have got make some transition in their products. and they are working towards that. but it's been a rough, rough process getting there.

so we are not there yet. >> erik. thank you. got to leave it there. appreciate your joining us. and ceo chuck robbins will be on "squawk on the street" tomorrow morning a first on cnbc interview, to discuss these result. we'll march on to an earnings alert orp sales force. >> we got a beat from sales force both on adjusted eps and revenue. eps looks like for the fiscal first quarter looks like we have earnings beat of 24 cents a piece. 23 cents. still that represents a jump of close to 50 percent for theme year on year. revenue in line with expectations. slight beat here. coming in 1. 92. and raised full year guidance to 8.16 billion to 8.230 and hence the shares are rallying in afterhours. back to you. >> what do you guys think?

>> sales force has been -- i shouldn't -- they have been delivering. they have that huge premium on the name. so if you look at a stock slow and steady like an sap you look at apples and oranges. i i wouldn't be surprised if you start to see this maybe switch gears after hours. >> one of the things that is a big concern for investors on this name is how much cash they spend to drive that continued growth and granted they have been doing a very good job. but the question becomes at what point are they spending too much cash to get marginal increases in revenue and profits. >> and sales force ceo marc benioff tonight at 6:00 p.m. eastern. tesla here. phil lebeau. these are not earnings. what's happening? >> it is not anticipated in terms of breaking news but it was anticipated by the market.

tesla announcing that it will be having a secondary stock offering. totaling two billion dollars. not two billion in shares. but two billion dollars that will be raised. that money will go towards funding the expansion to build the model three. improve the production, ramp up the production for the model 3. those $2 billion. 1.4 will come from shares being sold by tesla, the company. the remaining $600 million will come from shares being sold by elon musk. part of the shares from him are tied in with him exercising an option, stock options from 2009 that expire next year. those stock option, 5 and a half million shares, he's now exercising them. and tesla's secondary stock offering. we don't have a price yet on the

shares. but the goal is to raise $2 billion and that will go towards model 3 expansion and production ramp and shares of tesla. as you would expect any time you offer a secondary offer like this, you are going to see some pressure. they are under pressure. down as much as 7% after hours. >> phil. thank you so much. >> two billion a bigger figure than people expected? >> i think it is always kind of a spot offering and it looks like it is going to be a little bit of a surprise. but yes, goldman's upgrade of tesla was anticipating a billion dollars in new equity. >> that was my question. so did v they named the underwriters yet and is there involvement from goldman because we did have this upgrade and now we're getting this offering. >> has the company disclosed anything on that front? >> yeah, kelly we do. it is morgue substantial and

goldman sachs. and to speak to the issue mike was talking about. in terms of whether or not this was more than the street anticipated. people are looking at the production ramp of the model three and saying you need a billion, bill and a half dollars. they are going to need some cushion. as ambitious as the targets are, there are few people who believe they are going to be able to ramp as quick as they have already set their goals for. it is likely going to be slower ultimately and they need the cushion. >> steve. >> this is something you cannot -- this is the epitome of overpromising and underdelivering. phil cover this is like nobody else. and the truth of the matter is i don't know if the investing community believes they can get to their targets and how much rope are they going to give them going forward. >> well look at the shares. i know they are well off the

peak but still at 203. still basically giving a lot of -- you know, a lot of trust to what elon musk has laid out. >> at least there are a enough people out there willing to fund the whole project. that is what it comes down to. the story comes down to they have production shortfalls. maybe the gig factory is less than it's cracked up to be. >> the price of the car. you said the price is 200 dollars. every time the push back you give to a bull in tesla they will say it's so much more than a car company. >> and gundlach said he thought tesla was basically a lot toe ticket on their disrupting the future. a pricey one. >> a elon musk premium. but it is also one of those consumer brands people are so passionate about. almost like apple if you dialed it back five years. and that is where you get that premium. and we can discuss whether or not that is jufd. >> we got to move on to earnings -- >> go ahead phil. >> real quick.

just to people understand at home, the target that's the la has set for production in 2018, a half a million vehicles. the most optimistic analyst on wall street believes the most they will be able to produce is about 340,000 vehicles. so even the most optimistic think they are not going to be able to come anywhere close to that. >> great point and thank you phil. urban outfitters reporting first quarter results in line for earnings. 25 cents a share. that is what analysts were looking for. revenue higher than expected at 763 million. compares to 759 million for consensus. comparable sales of 1%. many analysts the consensus looking for a decrease. so that is a beat a pretty short release so we'll hear what they have to say on the call but that is it for now.

>> see, everything's fine. everyone's beating. the retailers. >> all you have to do is have your stock get pummelled for weeks on end and then report on target numbers and then it bounces. >> steve, thank you for joining us. much more coming up on fast money of course with steve and the rest of the crew at 5:00. carson block will explain why he sees another financial crisis right around the corner. that's next hour. ahead here, facebook fighting back against accusations of political bias. ceo mark zuckerberg is set to meet with some of the nations biggest conservative leaders to address those claims. up next we'll speak with one of the people ready to meet with him. also we're going hear from someone who says the most underinvested investment on wall street right now is the a trump presidential victory. cnbc first in business worldwide sup jj, working hard? working 24/7 on mobile trader,

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they found out who's been who? cking into our network. guess. i don't know, some kids in a basement? you watch too many movies. who? a small business in china. a business? they work nine to five. they take lunch hours. like a job? like a job. we tracked them. how did we do that? we have some new guys defending our network. new guys? well, they're not that new. they've been defending things for a long time. [ digital typewriting ] it's not just security. it's defense. bae systems.

and facebook ceo mark

zuckerberg battling claims. >> mark zuckerberg and his team denied reports that emerged last week. saying facebook put its thumb on the scale against conservative topics especially when it came to the facebook trending feature of facebook's website. nonetheless the controversy raised ironically on social media and facebook doing damage control today. here is who we know will be in the room with mark zuckerberg this list very heavy on media personalities. presumably that gives you a sense of who it is mark zuckerberg thinks is running the conservative movement in this

country these days and also maybe indication that facebook wants these personalities to go out to their media personalities after this meeting and reamplify suck be zuckerberg's words on tv and the internet. we're expecting a read out and some details once it's all said and done kelly. >> thank you for now eamon. the silent's editor and chief will be attending today's meeting and he joins us from facebook hq. rob, welcome. >> thank you. >> so the interesting thing is that this gizmodo article that started this all was just about the trending topics on facebook but your allegations go much deeper. don't they? >> certainly this is something we've been following closely. the daily signal launched two years ago we're part of the heritage foundation. a massive following of 2.5

million combined on facebook. a lot of conservatives looking to us to provide news content. and yes we've seen some unusual patterns over the course of the past two years i'm and hoping today's meeting will be opportunity for facebook to shed light on how it operates and bring transparency to the topic we've seen played out. >> what is it about in facebook's case? is it they need to be more transparent? >> there are a couple of things. first you have questions how facebook is using the trending topics and whether or not there was some sort of human suppression that goes beyond the algorithm that facebook says is in place which was suppressing conservative news. so that is one factor. i think there is another thing

at play though. and that is this perception that exists among conservatives that's existed for some time and facebook has not really addressed in the past. and that is whether or not employees of facebook who we know overwhelmingly donate to liberal causes, we know 80% of money goes to liberals and the chairman and ceo mark zuckerberg are at odds with conservatives on issues and coming out of the meeting today i'm hoping to hear a range of viewpoints as well as a commitment to standing by and supporting conservative thoughts on facebook. >> what i think and wonder guys here is whether the bigger issue for facebook is a business risk that this population, who call it half the population if they feel like they can't trust what they are seeing from the company is that a risk? >> it is a huge risk and you have to understand that perception becomes reality. so even it is not the reality or

maybe a small percentage of the reality, that perception can be very damaging to the business. i wonder though from rob's perspective, is facebook really the only place that you are seeing this? because as somebody who's an independent but who has some right leanings, i seem to notice this all over the place. it doesn't seem to be particular to facebook even though they are being called out on this right now. >> yes, i think the thing that distinguishes facebook from other social media networks is that facebook is so large and has such a global reach that it is amplified. and with facebook any sort of tampering like this would send a message to conservatives that all of a sudden they are not welcome on the platform. i think they have already lost conservatives and there is probably no way of getting some conservatives back who have just given up on facebook. i there are some publishers like us who want to continue to have a role.

we just want to make sure we are being treated fairly. >> if anything it underscores the need for your site. you know, if you go and launch a conservative version of facebook let us no, rob. >> no plans to do that. >> thank you so much for joining us. target the latest to post disappointing sales. we'll discuss whether or not this beaten down industry can rebound. and first the summer travel season hasn't even started yet but it is already a nightmare at many airports. how long you may have to wait to make it through security when we come back. smart devices are up. cloud is up. analytics is up. seems like everything is up except your budget. introducing comcast business enterprise solutions. with a different kind of network that delivers the bandwidth you need without the high cost. because you can't build the business of tomorrow

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this is the pursuit of perfection. welcome back. tesla disclosing further details. and phil lebeau has more. >> we know how many shares are being offered and ruffoughly th price. 9775,000 shares. comes out to a share price of 2 208.81. so that is the pricing on the secondary offering from tesla. and that is back of the envelope math. we'll wait and see if we get more details. not all of that is coming from the company. remember about 600 million will be coming from shares elon musk

is selling as he exercises 5.5 million options on 5.5 million shares. >> you are in o'hare. and tell us. because air fares are near record lows but security lines maybe because of that are going to be longer than ever. >> it is a mess. more people are going to be flying. let's quick run through what is going to be going on with the tsa. we've spoken with a lot of angry travelers. people waiting in line in many cases more than an hour. the tsa are going to be adding staff and overtime. extra help will be going to the busy airports. o'hare, atlanta, dallas. all the major airports. and shifting schedules at least here they will be. pushing more of those workers towards the rush hours in the morning and afternoon.

for the people here this chicago as i mentioned it's been another frustrating day. there are times you come through and looks like it maybe takes 15 minutes to come through security. other times the crowds build and you have people with at least a 90 minute wait. by the way o'hare is warning people arrive 3 hours early. and this may be the beginning of a long, hot and frustrating summer. a record number of travelers are expected torg according to airlines for america. 231 million people expected to fly. up 4% from last year. let's see if there are any changes or if this is a regular thing. >> three hours before departure. >> i was there this morning. but here is the interesting thing in perspective. from my point of view this is a security issue.

these are people in line who haven't had their baggage screened yet. so i harken back to belgium and now you have gags and gags of peel all put together before you get to security. tsa is supposed to be keeping us safe and i think they are creating another security issue and that's something that has me very frustrated. >> courtney reagan with results. >> l brands earnings out 59 cents per share. that is better than expected for both consensus and what the company had guided to just several weeks ago. revenue coming in at 2.61 billion. in line with what guided. comps are up 3% also inline. however lgrands has lowered full years earnings forecast to a range between 360 12k3 380. and second quarter first is

coming in a range of 56 cents versus 68 cents. the shares are down after hours. the company will not hold a conference call until tomorrow morning at 9:15. >> it is clearly not all coming up roses. down 2% now. back to sue herrera. donald trump releasing a list of 11 potential supreme court justices that he plans to vet to fill the seat of antonin scalia in he is elected president. six were previously nominated by president george w. bush. canada prime minister trudeau made a formal apology for an incident over a century ago. that is when a japanese ship carrying sikh immigrants was

denid denied entry into the country. and a 14 1/2 karat diamond is said to be the largest and best vivid blue diamond in existence. and legendary video game tetris is being turned into a movie. the producers plan to film in china and feature a chinese cast. they have been working with the tetris company for over a year developing the idea. i'm going send my husband with the kids to see that one. that's not -- not up my alley. >> playing tetris. i just can't imagine the movie. >> two hours of -- no thank you. i hope it is a success. but. nope. >> you know what? wreck it ralph did great so now it's morphs that are basically about video games. >> and angry birds and

everything i don't know! down the rabbit hole. >> thank you sue. cisco's conference call is under way. we're listening in. and have investors been dismissing the seriousness of donald trump's presidential campaign at the expense of their own portfolios. our next guest thinks so. now what? how will you keep up with the new demands of today's digital economy? the fact is: some believe they won't need a traditional bank down the road, so at cognizant, we're helping banking and financial services companies think digital, be untraditional, and reimagine what the bank of the future can be. our clients can now leverage customer intelligence to predict their financial needs and provide more contextualized products and services. we're creating new platforms across channels so customers can effortlessly invest, borrow, lend, transact-wherever-whenever they choose.

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let's get a check on the names moving afterhours. l brands is the one sitting out of what's otherwise a rally. down nearly 4%. urban outfitters up and american eagle up 14%. brexit talk. one thing that hasn't been on the radar yet? a president trump. the wall street journal's ken brown has a new piece saying the most under priced investment on wall street is a trump victory. ken brown joins us. thank you for coming down. you are probably right. we ask a lot of guests about the donald trump presidency and everyone just kind of goes eh. they don't really seem to know. >> the idea for the column came to me. i talk to people all day long

and everyone is like no, no way. then you start to look at it and really there is a big denial on wall street. and it is not that it is going to happen. it is just that you have to think about your contingencies and outcomes as an investor. and no one is thinking about it. >> it actually is going to happen. this is something that i was early on the band wagon. i'm not opining on whether i think it is good or bad. i've seen the trend. i believe this is going to come to fruition. i guess the question is we're talking about original stocks but on a macro basis is do you know what the market really loves is that is uncertainty. if you have donald trump as president that brings a constant uncertainty to the market. >> and high end market polling. looks at what the market is saying about things. and he said what the markets hates is idiosyncratic data. and it's stuff that you can't model. stuff that you can't understand.

>> she a black swan. >> right. and something people don't want to deal with. and not only ideology. but also how do i invest in all this? >> and ideas that could do well under a president trump. that could be defense, cybersecurity. other areas maybe multi national trade wouldn't do so well. >> the marks are trying to price in things that look like they might work either way. and looks like things like infrastructure. so the idea that basically of the twoed cans left you are probably not going to have a lot of candidate s left. >> there's been criticism that we're too dependent on monetary stimulus. and might not be a bad thing and god knows the country can use infrastructure improvements. then it splits so trump maybe more defense.

hillary may be more social stuff. trump could do other -- there are areas of disagreement. >> it seems to be fairly clear what hillary would likely do. i feel like er time you say. but trump would do this. we really have no idea. i feel like he could do whatever he felt like he could do in the moment. >> do you think we're going start to look at the market as we head into the summer and be able to read more clearly? it is ultimately a pricing mechanism. >> it is going to be hard to see through that. if it was less of a macro market it might be easier to see. that's hard to know. >> if you get trends in polls in florida and ohio, that is probably what you can assign projects too.

>> i don't think you can discount out this time. i think there are a number of states in play that have never been in play before that is going to be totally different -- >> state by state polling once we have nominees -- >> correct. >> anecdotal barometer around here is number of screens on a political channel instead of a market one is creeping up. >> it's gonna get worse. >> ken brown of the wall street journal. >> google stock falling more than 4% since reporting earnings last month. will things turn around? we'll ask later. and co-founders of who what whether where will join us and talk a little retail next.

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she had planned for every eventuality. ...which meant she continued to have the means to live on... ...even at the ripe old age of 187. life well planned. see what a raymond james advisor can do for you. welcome back. target took a dive today. down about 7.5%. among retailers struggling this quarter. reported an earnings beat but a revenue miss. let's bring in the co-founders of media group who's clothing line is sold there. what's going on in this retail environment hillary. >> i think ultimately our line has been doing really in part because we've been reaching out to millennial and really being involved in the process and using things like snap chat to poll on patterns and prints and

etc. >> and how much influence does this have on the products you put out? >> with so much competition today you really have to understand your consumer. and not only understand everything they want and need but cater your entire experience to them. >> gap, what would they have to do for example to get their mojo back. >> i this aloft retailers are try choosing to go out and find the audience that will come to them based on the brand that already existed. and you are seeing new companies create products specifically for a group. so it is a little backwards and i think there is opportunity for all of these retailers to do that. >> building on that one of the things i've seen of few retailers do very well is use generated content and as a way

to curate the hottest looks to help sell to their friends and the like. do you think that is a step the traditional retailers need to do? absolutely. >> -- in order to be competitive. >> really having that dialogue with your audience and then you know for sure that this piece is going to sell because your audience has told you yes this is what we're interested in. this is the sort of thing we want too buy. and that audience feels they have a role in the creation of it. and motivates them -- >> -- cooking dinner. if you get them involved they feel like they would rather eat the outoutcome. >> true and also a messy process. this strikes me as the post brand world. right? where people don't have affinities with this particular brand i know already. it is with a look or some bespoke tailored thing i don't know about. >> it is all about evolving. it is possible for a brand to evolve over decades as we've

seen some successful retailers do quite frankly. if you don't evolve there will be new up and comers who will come out and speak to that generation exactly how they want to be spoken to. >> it's a concept that has worked well and we see these retailers in upscale malls but what about a brand like burberry. >> they are so innovative. spend tons of time. they get on every platform first. they really have a dialogue with their consumer and audience and that personalizes it. and that is what everyone want. >> where do you think this leads us? >> i think like anything else the industry will evolve and you might see certain brands die off. and i think you will see there is room for new brands to become even larger. >> congratulations on all that you are guys are doing to shake things up. you have a new book "the career

code ". thank you. >> google is holding its annual developers conference from google home to its new messaging service. we'll get a look at the latest from the tech giant after this. businesses need the agility to do one thing & another. only at&t has the network, people, and partners to help companies be... local & global. open & secure. because no one knows & like at&t. with usaa is awesome. homeowners insurance life insurance automobile insurance i spent 20 years active duty they still refer to me as "gunnery sergeant" when i call being a usaa member because of my service in the military to pass that on to my kids something that makes me happy my name is roger zapata and i'm a usaa member for life.

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gookle is holding its annual conference today. josh lipton brings us the latest news out of the tech giant. josh? >> reporter: kelly, google's ceo kicked off the show today by introducing a new virtual assistant called google assistant. apple, siri, amazon, alexa with your voice, just ask a question and get an answer. and he said this is google's future. >> we have invested the last

decade in building the world's best natural language processing technology. in our ability to do conversational understanding, it's far ahead of what other systems can do. >> reporter: now, google assistant is going to be integrated into some new products as well, including this new messaging app, including features like emojis and stickers. it feels its artificial intelligence is what will distinguish it from rivals. we've got new hardware today. google introducing a new voice activated home device. this is google taking on amazon's echo, launched less than two years ago. this could be a challenge. the team at forester estimates amazon has already sold more than 3 million echoes. it's attracted rave reviews. google didn't offer a price, only saying it will be unveiled

later this year. google made a new push into virtual reality. they unveiled this new vr platform built for android called daydream. the vr market is going to be a $120 billion market by 2020, according to digi capital. google would like to get a piece of that red-hot industry. >> josh, they do appear to kind of be trying to be in every facet of your life. they've got the home, they've got obviously all sorts of workplace tools that we could be using. i mean, do you see this -- do you see a lot of these products being a hit, or they'll just try everything and see what works? >> reporter: so, google is doing a couple of things. obviously i think the message today was that android, they want to be everywhere. android remains the world's most dominant operating system by market share, more than 80%. smartphones, tablets, wearables, all those categories. they also see these products

developing from here. android -- if this was a little bit different, we've got android at its latest offerings a couple of months ago. they gave a little more color to that today. it will be faster, more powerful and more productive. i think it's about expanding that territory and protecting your home turf, making sure whether it's vr, your position against facebook, sony. also new messaging apps. yes, there's rivals, there's competiti competition, but they think their expertise will give them a leg up. >> beautiful shot out in california. >> i can't get past the fact that they're santa claus, they know when you're sleeping, they know when you're awake, they know when you're bad or good. so be good for goodness sakes.

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welcome back. sales force is moving higher by about 6%, after reporting better than expected earnings earlier this hour. ceo mark bennyhoff will be joining jim cramer tonight. >> we're thrilled this quarter to complete a significant and very strategic transaction with

amazon, where every amazon employee is getting access to sales forces services. analystics, all the things that sales force does. >> you can catch that interview in its entirety tonight. "mad money" with jim cramer starting at 6:00 p.m. eastern time. a better sort of glow on corporate spending than we had maybe thought, or feared. >> i think sales force is maybe the one that will get a little more traction in terms of implication for the rest of its group. the large cap growth stocks have struggled a little bit. the tech stocks. benihoff is always optimistic. so i don't know if we take much away from that. but the stock is reacting the right way. >> i'm not going to extrapolate from those two. i think this is undergoing a zone transformation and they need to do what they need to do. sales force is just great executers. that being said, if you still look at earnings where we are today, being potentially down

after all is said and done for the fourth quarter, year over year, we still have a lot of issues to contend with. >> the retail earnings this hour, i'm not sure how much you can read into them, right? you have -- >> better than than what they had set up for. >> a reclaimation project. >> exactly. it was fascinating discussion that we just had about retail and how we have to be so social. and what is this really going to mean for the existing brands, to your point. >> and the product, like l brand, they're fighting trends not to get into the millennial shopping habits, but certainly sales issues they're up against, too. you can see the big movers after hours, including urban outfitters, up nearly 12%. we turn our attention to tomorrow, jobless claims. >> that's now got added meaning. you want to see if there are still signs of tightened labor

market. >> and wage growth. that's going to be key. >> we have to let carol go so she can get to the airport seven hours early. thank you both. that does it for "closing bell." "fast money" begins right now. "fast money" starts right now. live from the nasdaq market site, i'm melissa lee. we have tim, pete, steve, and guy. tonight on fast, noted short seller is here. could another financial crisis be right around the corner. plus, big tech, big beat. cisco and salesforce among strong earnings. we'll hear from both ceos in their own voice. what some are calling in the after-hours session a shady deal. goldman sachs updating to a buy ahead of the announcement of a $2 billion stock offering. get this, goldman