hawkish than people had thought. maybe that's why we are seeing the tenure yield at the highs of the session. >> i think it is the market story so far this year >> yes and the possibility of exceeding long rate, the curve, something we talked about in the 2:00 panel. very interesting >> thank you for watching "power lunch," everybody. >> "closing bell" starts right now. ♪ >> before we start here, can we take a minute to wish a very happy birthday to francis griffeth bill is there with his mom and family celebrating, i mean - >> i could not agree more. >> i wish we were there. >> huge congratulations. i wish i was there huge congratulations, i agree, 100. >> looks great >> bill needed the whole week off to celebrate >> absolutely right, too, what an absolute amazing landmark

>> look forward to the return and congratulations again. welcome, everybody, to the "closing bell. >> i'm wilburt frost in for bill today. markets stormed out of the gates this morning, but a dramatic reversal in the last hour. >> a big day for earnings. after the bell, facebook, microsoft, qualcomm, at&t, and more reporting what you need to know ahead of the reports. >> starting with the initial rebound and selloff and since then pull back we are uptown at the nasdaq, and bob pasani is at the new york stock exchange, bob, starting with you >> the important thing is what happened in the last hour because we have weakened now, everyone is talking about the feds' statement about market based measures of inflation compensation increasing in recent months, but remain low. they added that phrase they are more hawkish on inflation, but it's modest, and the s&p, let's look at the s&p it did not move at all for the

first 15 minutes after the feds' statements if you thought, they would have been moving more aggressively. we are down 12 points since the announcement came out. if you look at the rest of the market, look at bank stocks, yields moved up on the ten-year, maybe three basis points i think the important thing is bank stocks benefitting from higher rates, but they have not. bank stocks drifting lower here. reits with negative effect from inflation concerns and higher rates should have gone down. they have not moved at all on this remember, some of this does not make since if you are just arguing that's the reason the market moves down. the vix, well, the vix initially just moved down on the perception this was not overly hawkish and slowly moved up in the last two minutes bottom line is this, i'm not entirely convinced this recent drop is due to the fed there's been significant discussions in two days about market on closing balances there's been a titanic move up in stocks and a lot of pension

funds do rebound to the end of the month. they may sell stocks towards the close. just spoke with art cashcashin, it's not that far out of whack i'm not entirely sure about what's going on, but i want to see what the market on closing balances look like in the next hour again, we have a pretty significant move this month. finally, i want to point out, you notice boeing up $16, now up $15, that's 120 points in the dow. remember, the dow is flat right now. that's the power of boeing and largest stock that's out there that would be holding up the dow even more right now. guys, back to you. >> that's the point, bob, thank you, see you shortly after that strong start today, the nasdaq is lower after posting the worst day since december yesterday the index on track to close out the best month since 2015. what's behind the moves? >> we have window dressing at the end of the month, and some

ventures are pulling the shades down, but earnings very much continue to be a driver here at the nasdaq electronic arts better than expected, not withstanding disappointing sales with star wars the force not as strong, but revenues up strongly lifting shares of its rivals facebook and microsoft up ahead of their earnings this afternoon, adp at a new high on its quarterlyresults apple has been the drag. it's kind of moved up into positive territory by a couple pennies but continues to be negative it's negative for the month. amazon, on the other hand, is the force driving things here, continues to run to record new highs again today. up 24% here for the month. biotech is the loser despite strong gains for the month president trump plans to make lowering drug prices a top pr r priority for the year.

we heard this over the last couple years, but biotech today very much the biggest source of pain back to you. >> thank you very much for that. also adding on the selloff between the last hour or so that the sector performance that held at the peak of the day, they are holding now. there is a broad selloff health care the big underperforming, tech, and industrials still outperforming. not really related to interest rate sensitivity joining our closing bell exchange today steve grasso, and rick santelli at the cme in chicago. rick, starting with you, did we see meaningful change in yields that could have sparked a selloff in the last hour >> reporter: you know, i don't think so, but i agree with what various people and analysts have been saying, guests on cnbc since the meeting. i think the language can be viewed harsher i agree with peter, and i think it's for a reason. you know, one of the big discussions we've had all day on

cnbc, what i've been talking about on many pieces for months is the yield curve will the fed be a catalyst to me, the discussion about whether it inverts is a mute point. it will invert the question is, when, and what's the catalyst? if it's within the cycle, that's normal, but if the fed in aggressive tightening causes that, that's another scenario. there's two ways to avoid that start stressing inflation to get the long end to wake up, not saying it works, but makes sense. the other thing to do, if they renew the balance sheets $600 billion for all of 2018, just push some of it forward. do a little more aggressive non-buying in the rolloff earlier in the cycle to reduce the balance sheet. maybe that helps steepen the curve. i think it's all about the yield curve. even though most analysts that are really good with fixed income don't think an inverted curve means the same thing today as it once met, i still say that with regards to that dynamic,

perception will be reality, especially considering how heavy the story would be jumped on should an inversion be cost. >> yeah, for sure. steve, the 2.75% level on the ten-year we crossed earlier. interestingly, moved around a lot and now going the other way. yields moving lower as well as stocks what's going on with the market here >> i think we looked at the market yesterday, selling off yesterday, and when you want to try to talk your way into and out of a premise, it's still about rebalancing at the end of the month. i think bob touched on it. when you look at the financials, where should they have gone with rising rates up they are not going up. i think you're starting to see people taking and trimming, selling those winners, buying those laggards, and to the point, when you see the individual sectors that shouldn't be responsive to a rising rate environment, when you start to see them sell off or be purchased, that's about month end.

this is not about rates. macro rates, today, it's not >> we had a pullback in the last couple days, but the fact volatility is up and, in fact, in january, there's a lot of differentials in the indexes, is that an opportunity? >> it is it is sector rotation this year. at the end of the day, s&p is up 5% year to date. not a bad number for january, right? >> or for the year >> yeah, i mean, so exactly. so that's not bad. i think volatility is going to return to up it's all about interest rates, particularly the ten year, and the s&p earnings yield if those -- if that spread continues to compress, you'll see rising volatility, something that investors look out for out there, but it's going to be a trickier year. let's face it, no one expected 20% from 2017 either >> it's always tricky. >> no one expects 20%, so the easiest thing to say is that we're going to be up single digits >> right, right. >> and usually, as you heard me say before, usually upsets most

amount of people at any one given time the s&p 4% above, 7% above 100 day, and 100% of above the 200 day, those are worrisome with the technicals, but people have not seen a corporate tax rate in their lifetime at 21%. people are looking at this trying to use their brains that we looked at the market with for the past five, seven years the corporate tax rate at 21%, you cannot fathom what it's going to do to the economy >> right >> you need to add to that is the entire world is growing. gdp across the world is impressing when you couple the items together, there's really reason for optimism and there's no reason to be overly pessimistic here because of a couple days that are bad >> we have some news, so thank

you. wynn resorts, contessa brewer, what's happening there >> reporter: concluded the public meeting, michelle, and it brought authorities to modify or even revoke the gaming license that license was awarded to wynn mass llc, the subsidiary of wynn resorts, and to its qualifiers including steve wynn nay were obligated to disclose anything that the commission asked about, and one point, it was reiterated again and again in the hearing is that the company, the individuals were part of the qualification process, never disclosed the $7.5 million settlement between steve wynn and the manicurist reported in the "wall street journal," they never found evidence, but nothing for the commission investigators to fine they said wynn now told the commission they confirmed the settlement, and they told them that back at the climb of 2013,

wynn counsel urged them not to disclose that private settlement to the commissioner during the qualification process. now what happens the investigators go forward and review the suitability of individual qualifiers including steve wynn review any corporate action or lack thereof what was known what was not known why wasn't it known? they report back to the commission on the corporate response to the allegations that are now in the public domain, and they'll review the current situation, how these allegations affect the financial stability of wynn resorts. one commissioner added on the day quotes steve wynn himself in 2013, and steve wynn told the commissioners, we, in this industry, have a need to prove we know right from wrong guys >> contessa, so in a nutshell, there's multiple different investigations by all these different jurisdictions into the company? >> reporter: nevada opened an investigation, i heard they are reviewing investigations against steve wynn, and a question here

today about whether the investigators from massachusetts will coordinate with the investigators in nevada. that's something the lead investigator would look into whether nevada was willing to do that >> good point. contessa, thank you. >> the key thing for the stock price is mccau two-thirds of overall earnings, and current license to operate expires in 2022. either way, a question about getting the extension, which is a huge swing back to the stock even before the news if that factors in it's a make or break, 10% move or much more >> down 17% on the week. we have about 48 minutes to go before the close, and we are now down on -- well, the dow's just ticked hirer, but we were down, down .20 on the dow. we saw the intra-day selloff >> there's much more ahead on

"the closing bell. coming up, if you bought shares of boeing one year ago, you'd fly high with gains of more than 100%, and there could be more blue skies ahead we'll tell you what the company just say about its outlook for the rest of the year plus, we'll explain what trump's tough talk on drug prices mean for the pharma industry plus, facebook, my kicmicrosoft, qualcomm, oh, my one of the most important afternoons of earnings season. stay tuned, e th"closing bell" is back in two minutes

welcome back dow east down six points now, up 261 at the highs, i think, so we really lost a lot of altitude here watching the s&p, also down about six points at the moment transports down 14, russell down ten. getting a big boost on the back of strong earnings report this morning, that stock far and away the best in the dow, today

even as the index lost steam as explain. phil lebeau is in chicago with a breakdown of boeing's earnings report this morning, phil? >> reporter: the stock is still up big on the day, although the rest of the market fell off in part because of the numbers reported for the fourth quarter. in the fourth quarter, these numbers that easily blew away what the street expected they beat the street on the top and bottom line, and not by a little bit, but by a pretty wide margin, and record operating cash flow in the backlog grew in every single division in the fourth quarter, but it's the guidance for 2018. this is what got investors excited today. earnings per share expected to be $13.80 and $14 a share. for some perspective compared with what they expected, that's 15% above what most analysts were expecting also expecting records deliveries of commercial airports and they are optimistic about the rampup in 737 mass

production >> the ramp up continues on track, and we're not seeing issues or any problems that are out of the ordinary. i remain confident we'll achieve our max ramp-up goals for 2018 >> reporter: looking at shares of boeing, it is not surprising that this company's stock popped as much as it did. really, the one question on the conference call, guys, that got a little attention aside from the earnings and the outlook, is what might happen with embray air they are attempting to buy there's no update as of right now. they are still optimistic there's going to be a deal, but if not, he still believes boeing moving e ining higher this year a huge day for boeing. back to you. >> up believable the run, the doubling in the shares and excitement around the name already going into it thanks, phil >> you bet >> phil lebeau >> can they keep the rally on track? bob, thanks for joining us

if boeing -- interesting question, are they end blah embo a well-performing machine? >> emblematic in the sense that earnings are coming in better than expected, and generally, analysts are moving numbers up the extent to which boeing did it is an outlier that's good news the market has responded to the better earnings in the last month or two months anticipating them, and now, of course, the flying ointment is the rising interest rate. we have the earnings moving up at the pace, and interest rates were flat. we probably have stocks continued up a bunch that's the fly in the ointment earnings are a necessary, but not sufficient condition for the markets to continue to go higher >> before we discuss interest rate move, given that you say earnings are a necessary condition for markets to continue higher, are you, therefore, concerned about the slew of perk earnings we have starting tonight given as well how big a market cap the companies are and how well

they've done already >> well, because they are so big and they've done well, you have to be concerned, but i think on balance, they will deliver as the economy here and abroad has done better, and, of course, the tax adjustment that you referred to earlier will affect these companies, many of them have huge beneficiaries from the repatriation of cash we should get good news on the reports. >> i wonder where this leaves us back to the rally. the point made yesterday about howard marx you can have the corporate rate falling and earnings, but how much is priced in what do you think the answer >> well, some is clearly priced in, and as i said, if earnings all by themselves, we still would be going higher in my view, as the trends for the economy, repeat here in overseas are stronger than most thought you see real gdp numbers for the year moving up, here and the global numbers we have the earnings tail wind without a doubt.

>> bob, what about the tax reform bill? clearly, it's been seen broadly as a positive for markets, but down the line, deficit rise significantly, will people consider the opposite and something that could spook markets? >> well, eventually, but i think eventually is down the line. the market is choosing washington, d.c. is choosing, most investors are choosing to ignore the deficit build, but without question, it's there it will haunt us at some point in time, but not today having said that, the supply of treasuries this year is doubling, both from the runoff from the feds as well as more treasuries being issued, and so that's part of the reason rates are up >>age important point, especially today, bob, thank you so much for joining us >> thank you >> bob doll. 40 minutes to go see if we hang on to the rally the ten-year, of course, moving higher, the dow barely positive, and s&p and other averages a

little lower up next, president trump shared strong words about prescription drug costs last night in the state of the union take a look at what the tough talk could mean for drug companies. plus, janet yellen wrapping up the last meeting as fed chair moments ago. the feds' decision and how the incoming chair could shake up the country's central bank back in a couple minutes your brain changes as you get older. but prevagen helps your brain with an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. the name to remember.

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zplmplg welcome back talk of immigration reform and infrastructure spending in the state of the union last night,

president trump took a moment to highlight his concerns with rising drug costs. >> one of my greatest priorities is to reduce the price of prescription drugs i directed my administration to make fixing the injustice of high drug prices one of my top priorities for the year. prices will come down substantially. watch. >> cnbc has a look at what the president's comments could mean for drug companies going forward. meg? >> hey, well, it's not the first time donald trump weighed in on drug prices. they wonder if the spark holds any bite trump accusing drug companies of getting away with murder for attacking merck prices after the ceo stepped down from the presidential counsel over the summer there's several other comments made, and it resinates on both sides of the aisle, but so far, there's been no action still, stocks today show there's

fear in the market, particularly because trump said last night that the drug prices will be one of his top priorities for the year, wells fargo analyst will talk to ceos about pricing before the start of the summer what could actually happen this year well, new health secretary said he doesn't support giving medicare the power to goernegot prices directly, but president trump support the that in the past they discussed increasing competition by improving more drugs and some expect focus placed on transparency in the drug prices system around rebates and discounts and copays that pits the middlemen back in the spotlight, and those stocks are trying to climb back from yesterday's hit from the amazon announcement around health care. big questions here >> it is amazing there's still struggle with it telling you about the scope of the announcement thank you. >> thank you we're going to talk more about drug prices with cnbc's

conference, march 1st, go to cnbc.com/healthyreturns. i'm city writing 7 on everything go figure. >> the returns look good despite -- >> very, very good >> despite the slide in the last hour or so we got minutes to go with a slide, the dow just higher, s&p and nasdaq just low. still ahead, how are retail investors navigating renewed volatility in the markets? a pulse of main street in the latest editi othonf e "closing bell investment club" when we return is the monolithic view of emerging markets obsolete? at pgim, we see alpa in the trends, driving specific sectors

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a report that u.s. foods and cisco are suing the suppliers incoming tyson foods, hillberg pride, and sandserson farm they allege they manipulated prices for chicken products. the stocks fell. pilgrim's pride down 5.5%. >> thyime for a cnbc news updat sue? >> reporter: the third and final sentencing for larry nassar, he faces three more charges stemming from sexual abuse in an elite gymnastics club. >> the statements will be read here, the number stands at 65. i do expect that number may change, but that's the current number we are at as of this moment >> reporter: despite a long decline in cigarette smoking, a new report from the american cancer society found people with less education and those making

less money continue to have high smoking rates. nearly 25% of native americans and alaska natives are smokers, the highest of any ethnic or racial group hostess brands offers bonuses and free snacks to its workers after the tax overhaul it's a one time payment of $1250, and $750, and twinkies. that's the news updates this hours. and cup cakes. >> exactly you missed the whole point >> that's it >> that dividend thank you very much. >> you got it. see you next hour. janet yellen wrapped up her final committee meeting. let's get to steve leisman with the latest steve? >> thanks. upgrading the economy, expressing greater confidence that inflation moves up to the 2% target this yearment bottom

line, the fed pointed towards the march rate hike with little reason to change the view it's on track for at least three rate hikes this year, and kind of flirting with a fourth maybe here's the probabilities 92% now in the market for march, 6 6 2% for june, and a 22% chance right now call it one in five, thereabouts, of a fourth hike this year. the fed said economic activity depends on household spending and employment, all solid, and could warrant further hikes in the months heads and inflation moves up this year that's the first time it's been that confident at least in a while. finally, took the step of electing the fed governor jeromej. powell. they sit the rates that's effective february 3rd. powell would formally be sworn in for the other role, chairman of the federal reserve board of governors on february 5th. the yellen era ends with five hikes in the books, first five in nine years and suggested the

powell era begins by resuming a slow hike of rate hikes. >> thank you for more on this, let's bring in former dallas fed president and cnbc contributor, richard fisher, and julia coronado here at post nine welcome to you both. richard, what do you think the significance is as janet yellen leaves this fed? we're not going to know yet, right? we don't know until the end of the cycle and how well or poorly it ends. think about the way people talked about greenspan when he left versus after the crisis, right? >> the word that came to me in the statement was the word "solid" over and over and over again. she did a solid job as chair started the exodus as we called it in the fmoc, five straight increases, clearing a path to e repair the balance sheet, but leading up to that she's done a great job

no market turbulence until recently she's going to escape the fed as having been one of the most successful fed chairman in history, and i just personally having served with her for so many years, extremely proud of her. she did a great job. >> julia, in your eyes, what's the biggest change that jay powell is likely to usher in people point to a different view on regulation or deregulation. >> he's more inclined to be easier to relax some of the regulations that were put in place post-crisis. she was inclined to do that to it's a matter of degree. i think largely, he's going to take his cue from the legacy she leaves data dependence, pragmatic, practical approach, i think what they do in the months ahead will depend entirely on what the economy does >> richard, that's my point. looking back at this, greenspan retired january 31st, 2006, so

widespread acclaim it was the great moderation, everything came up roses. he was the maestro i remember covering the book it was a rock star thing, and we were thrown out of the bookstore for having tv crew there a lot determito determine over t couple years >> legacy is determined by your successor, what happens in the markets and economies afterwards, but there is a difference not just on the regulatory side, but it's in better shape than it was. alan took an end run approach, total libertarian, that's not the case now we had dodd-frank, now massaging the exercise of dodd-frank, making it effective at the same time not strangling the financial sector i think the real difference is that as brilliant as janet was, as brilliant as ben was, they did not have backgrounds in credit or capital markets, and that's where jay powell is

different. people say a ph.d. in economics. fine, doesn't count, not the same credentials as the pr predecesso predecessors, but he understands credit markets if we have a correction here, he'll be able to understand that better than panicking as the committee has done before, and i think he'll be more tolerant as to the ebbing and flowing of capital markets. i think that's very, very important at the high pricing levels relative to underlying evaluations. >> that's a fascinating point, richard. julia, what's your take on what to expect for the rest of the year a lot of discussion earlier about whether the yield curve inverts or not >> right >> we saw long end deals rise a bit, but could they stop inverting with the three, four hikes we expect? >> i don't think inversion will be the issue i think the issue is going to be the long yields rise the combination of the fed raising rates, the balance sheet running off, and then a doubling

in issueance by the treasury means yields are challenged to stay low, not to go even lower that's my own take on the year ahead. >> that's an interesting point because if they feel like, well, wait a minute, the rate is raising or rising ahead of us too quickly, what's the response li like >> that's the beauty of patience approach raise rates, wait and see what happens, and decide what to do again. again, i think the data dependence is going to very much remain the strategy, and that gives them some wiggle room to react to incoming information, both market information and economic data. >> do you think it's possible this fed takes a step back from tran transparency the question was raised whether powell would go from having press conferences in every fed meeting? i wonder instead if there's a view expressed, maybe we don't need to hear from the members so much or be quite so vocal because it's confusing people more than it helps, or it's

hurting legitimacy more than helping it is that possible under his tenu tenure >> hard to go to press conferences after every meeting. i'll tell you why. when we had meetings, it was at 10:00. when we didn't have press conferences, we'd go to lunch and sometimes to 2:00 or 2:10 whatever it might be the reason is because the chair has to did into their office, be briefed on every single possible question asked, may not have anything to do with monetary policy, takes an enormous amount of preparation a quarterly press conference is likely to be maintained for the short term powell is comfortable, he might discontinue this practice. i think you're right, that a lot of information conveyed, but, remember, by conveying information, you let the market discount future possible actions as we've seen today, with the slight change in wording, th probability as steve pointed out, as a rate increase has gone

up, and different quarterly interva intervals, one of the purposes of this communication. i don't see it changing right away i think he'll continue the practice for a while, and then we'll see what he comes into his own, what he chooses to do, but doing it every meeting would be a very difficult thing, it's a taxing thing for the chair >> yeah. >> he has the capacity to do that, but unlikely >> richard, julia, thank you so much >> thank you >> thank you >> a quick question for you. you were already on tv when -- 2006 >> no, no, i was just at the "wall street journal", and the book came out a year or so after that, and they -- everyone there will remember this, the video department at the time was a cam corder and a closet and said, oh, you have -- can you take this around the block and go with our producer to cover this event, so -- >> that was the start? >> that's what the intern said to do. >> very good >> i was still at university in that time. there we go. anyway, 20 minutes to go before

the -- we ticked up a little in the course of the conversation, such that all three indexes are now just about in the red. in fact, might be in the red, s&p up, and nasdaq up .20 as well how did retail fair in the market learn from the closing bell investment club next facebook and microsoft gearing up for earnings te e bell a preview of what to expect in just a few minutes you always pay

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look at this market, the dow is now up 100 points we've been up 261, then we were negative, and we are climbing back into positive territory, boeing leading the way with a 5% gain >> 7% at the peak, down to 3.5%, and microsoft went up 22.3%, or so, reporting their earnings today. >> nasdaq positive as well by .25%. we'll watch it last trading day of the month, time to check in on main street after yesterday's selloff and today's whip saw moves, what are retail investors doing with their money? we will ask.

good afternoon to you both starting with you, if i may, generally speaking, have you been worried about the last couple days as we've seen volatility pick up and intra-day declines like we saw today >> last couple days, i have not worried. the last few weeks made me excited about the market, and i anticipate days and times like this, especially during president's state of the union address, with anything that's going on in the government, i anticipate downs, but as far as the upside goes, it's amazing, and i have not seen anything like this in a long time >> tom, what moves have you been making >> well, my initial idea was to wait to see what happened with tax reform and take a little bit off in 2018. i figured at worst rates stay the same, best, they go down the corporate announcements have been better than expected. apple's especially, that's a lot of money to invest and bring home i've been standing pat, and sticking with what i have.

the intel was the winner, bought in low 30s in mid-june last year, up 50% from that point >> tom, some people are concerned about apple's iphone10 sales reporting tomorrow does that worry you? >> i don't worry about the short terme terme terment. apple is a great company, if it goes down, that's a buying opportunity. >> there you go. you put money to work in the market, but is unlike anything you've seen. talk relative in the past, how much do you invest in stocks the rally too crazy? what are you doing to stay prudent here >> holding on most things. i bought refinery stocks in frontier -- excuse me, and what was it -- marathon petrolup, and their fundamentals are strong, long term plays. i look at fundamentals, i look whether they pay dividends, and over the past few quarters, they

beat mark eed estimates this is what i'm looking at, all refineries, but stay heavy in energy, real estate investment trusts, and mining, so like gold and newman mining are the strongest performers over time >> tom, have you been on bitcoin and block chain? >> no, i did not the way i play it is i owned cme for a look time, a solid stock, quietly goes up every year i figured the way to play was to buy more cme when they announced the buiitcoin futures it's worked well stock's phenomenal the other thing that's nice about that stock is they have a variable dividends at the end of the year, and that's been increasing the actual yield of the company is over 4% on top of the growth that they have >> tom, same question to you before we go you know, looking at inin ininge rally -- curious, tom, what do

you think about how strong markets have been and how exposed you want to be in. >> i'm not chasing momentum stocks, valuations don't make sense, i will not buy it intel is the example, up 50%, but at $4 a share of earnings next year, you're talking a 12 pe i'm not concerned about valuatio valuations, not chasing the bank stocks, all i have is google, actually >> all right good stuff thank you for the time >> hey, thank you. >> 12 minutes to go here, up 111 points it's been a whacky day to close out the month, s&p positive, transports positive, russell negative, and nasdaq positive. >> 5% down, set to close out in 12 minute's time facebook, microsoft, and at and t reporting earnings what to tcfoinheepts en we come back p.

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you know what's not awesome? gig-speed internet. when only certain people can get it. let's fix that. let's give this guy gig- really? and these kids, and these guys, him, ah. oh hello. that lady, these houses! yes, yes and yes. and don't forget about them. uh huh, sure. still yes! xfinity delivers gig speed to more homes than anyone. now you can get it, too. welcome to the party. welcome back, art mentioned there's 700 million to buy on the bell today the significance is not only

orders to buy on the end of the month, but there was concerns or rumors in the market of numbers as big as $20 million to sell today. that having gone out, people seeing some of the buy orders come in to help explain why we went from negative to significantly positive again on the dow today. >> yes, big intra-day moves, particularly in the last hour. we got an earnings parade after the close. let's get to the reporters to a preview what to watch for. josh lipton is on microsoft, we have at&t, and julia on facebook julia, starting with you >> reporter: a big factor and focus for earnings is how changes to the news feed impact the bottom line. zu he said time spent decreases, but how much engagement and advertising could suffer looking for guidance on growth to original video with the watch tab as well as instagram ads learning that facebook ramped up investment in security impacts

possibilities, we listen to updates on the capital expenditures and how tax reform impacts the company's plans. back to you. >> julia, thank you. josh, what details about microsoft? >> reporter: well, microsoft is off to a strong start this year, stock's up 10% better than the market and the tech sector as a whole they look for 86 on revenue of 28.39 billion, representing gains of 4% and 9% respectively. they zero in on the company's commercial cloud business. they estimate that commercial cloud revenue hits $5.2 billion in the quarter representing growth of 53% driven by strong adoption of azure and office 365. kelly? >> josh, thank you you're watching at&t and looking for? >> number one thing to look for a subscriber growth, especially after reports from t-mobile and verizon, analysts are mixed whether strong numbers from the

competitors bode well for the telecom player or makes it more challenges for at&t to post sizable gains in the fourth quarter. aside from subscribers, the street is on the lookout for any commentary on the anti-trust fight with regulatoors who acquire time warner. there is a trial for march 1 atth, but it will be notable for the broader retail industry. >> thank you see you in minutes, top of the hour put the cashen animation up for a minute correcting the record 700 million to sell concern with 20 billion to sell because of the pension rebalancing this month long story short, it's not the fear that had been in the market definitely want to get that corrected. >> we do, but this is what happens when bill is gone. you blamed me essentially. >> no, you were not given the responsibility i was. i was. >> blamed it on me >> oh. >> anyway, moving on

coming back with the closing countdown. >> hear from qualcomm, paypal, and ebay earnings. those results as soon as they are out. keep it here, you're watching cnbc, first in business worldwide. nobody's putting their money into equities. they're not investing in commodities or fixed income. what people are really putting their money into is what they hope to get out of life. but helping them get there requires a real refusal to settle for average. because when you approach investing with a tireless desire to beat the status quo,

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ride intra-day these are the charts, particularly last hour, high in the morning, pulled back around the time of the fed decision, and the minutes coming out, and we sold off to the lower on the s&p and the day by about .20%. that since rallied back in the last half hour trade the s&p up 0.15% in terms of sectors, tech, industrials, the best performers, health care the worse, off the back, of course, comments in the student towards drug companies let's look at the dow as well for big individual moves there boeing in particular after their numbers, which was all that and a big of chips, incredible set of numbers, up significantly, 7% at the highs of the day. now, also, worth looking at microsoft which we heard from josh lipton reports after the close, up a nice 2%, and quick look at interest rates ten-year touched 2.75% briefly

after the minutes when the deals broke. we did an inter-day selloff, and 2.72%. >> of course, there was some concerns about that brief selloff we saw after the fomc statement at 2:20, stocks moved down appear to be equity selling, but what was the reason for that for whatever reason, there was concerns about closed orders, perhaps rebalancing from the pension funds. that's been around all week. no huge market on closing balances now the market balanced. for whatever reason the selling at 2:20, well after the feds' statement. i'm not too surgeoned. look at bank stocks, they recovered nicely as well >> even with the last couple days in volatility, the s&p still gained 5.7% in the market. >> terrific month overall. russell up, though not as much, big moves up in the tech names,

and health care was great and biotech was strong the broad diverse group. one thing i say is the global reinflation in the second half of the month, still strong >> at the close, 78 points higher for the dow after the roller coaster ringing the bell here at the stock. p the second hour starts now with kelly evans >> thank you, will, and welcome to "closing bell," i'm kelly evans. we were up 260 and lower in the last hour, and closing higher by 75 points, 26150 for the blue chips, quarter of 1% gain. s&p gaining about two points to 2824 today, and nasdaq up a tenth of 1%, 7411, and russell 2,000 couldn't join the party there, down half a percent on

the bell, eight points down to 1574 no records here today. we're still well short of the levels after the couple day selloff we've seen, but a strong month overall with more in a moment buckle up, it's a busy hour for earnings we're breaking out the octobox look at this on facebook, julia, microsoft reports, and qualcomm, at&t, paypal, ebay, and mondelez i'm already exhausted. guys, thank you. see you in a minute as they come in joining me now is our cnbc contributor from shares etf and danny, welcome to you both i hope you're ready. it's going to be wild. >> it's been bumpy >> already has been. as we look at the month quickly, as we cap that off, topping the dow was boeing with a 20% gain in january, 5% after strong earnings ge down 7%

over on the s&p 500, netflix the winner going back to the results, up 40%. can that be right for the month? netflix up 40% and l brands down 7% kevin, your thoughts on the market picture >> winners continue to win boeing is a wonderful upside surprise i consider this changes throughout the cyclical year, really delivered great quarters. netflix is interesting because you're now paying a crazy multiple of revenue for that if you -- i mean, you have to have conviction to own that in volatile times, and i'm not saying it's a bad company by any measure, but if you think about it, it's getting in the hollywood business, making movies that's a crappy business see how it plays out >> thinking about how you likened boeing with a facebook-like multiple right now to avionics service. that's a different service representation >> the difference between the two? one has cash flow. the other has no cash flow >> what about you?

what do you think here after a couple big down days and still strong start to the year >> yeah, kevin's right it's been a big pile on with the money coming into the market, chasing these big names, even further up the chain amazon and netflix have really outpaced things like facebook up significantly as well, but i think that investors have been saying, well, if it's good, i got to pile in without any kinds of mandates or, you know, where do the wheels fall off >> the interesting thing is, awaiting tech results, today and tomorrow, we get pretty much the grab bag >> right >> and everyone's wondering, how will these set up for the trade for the rest of the year last year, we talked with mike about this we came into march, and markets looked one way like today, and march on it was a faang trade, all the big platform names putting up crazy number, and the question is, what do the earnings look like today to set us up in 2018? >> volatilities, keeply, we'll

have big winners and big losers. old friend, volatility, is back, i wait the a year and a half for vol to return, and here it is, straight to the banks, the brokers, seeing more trading, and facebook knocked it out of the park great stories there, all the small companies, but staying there. >> i don't know if this was based on friends and family usage of facebook or - >> all the "shark tank" companies, so many of them, look where they spend dollars, it's all going to facebook. >> their pricing power is massive. they increased ad pricing by 35%. that's akin to what my health care provider is doing every year, so you know how it is. >> paid in part of the health care space, amazon, berkshire and jp morgan reminded us this week you're right the question is, if they tinker with the methodology of what you see, fewer ads from plush ublisr and whatnot.

that's the question. >> absolutely. it is creepy how they starting to infiltrate every aspect of your life and every aspect of everything you click and look at it, but that's life in this day and age. >> i thought the health care space was a buying opportunity they felt ensured, and so, you know, buffet's companies too why change anything? they continue to sell for sure it doesn't change cash flow. >> we had that very discussion yesterday, is it the insurers most affected or the pharmacy side distribution of drugs? people who manage plans? that's where more the anxiety, it feels like, is. that's a great point earnings are out over to john with the numbers. >> kelly, looks like qualcomm has a beat on top and bottom lines, wall street expected 5.9 billion dollars, and nongap, got 6 billion even in revenue. 98 cents in diluted earnings per

share. the guidance 4.8 to 5.6 billion dollars for the current computer and eps range of 65 to 75 cents. also, a bit of news on the licensing process, an issue plaguing qualcomm over the past few quarters as a number of jurisdictions and some of the customers have been pressing them on the licensing model. here's a big juan that's reached a new deal with qualcomm qualcomm qualcomm and samsung amend long term cross license agreement and as a part of this, according to the release, samsung will be withdrawing its interventions in qualcomm's appeal of the kftc decision in the sole high court. why they push back, the licensing model, he's no longer going to be fighting against qualcomm they are no longer fighting against qualcomm on the license issue. of course, apple still very much

up against qualcomm in a number of these jurisdictions on its licensing model, but samsung, the other big smart phone heavy weight no longer at odds with qualcomm over its licenses model, kelly >> all right thank you. a lot going on with qualcomm there, obviously, the shares unchanged as it digests. facebook earnings are out. over to julia bors fton. >> reporter: earnings per share of 2.21, beating estimates of $1.95 per share. now, it's worth noting that there's a a tax impact facebook reporting a 77 cents decrease per share in earnings per share due to the effect of the change in the tax law. if you include that tax impact to earnings per share at $1.44, but exclude that, it's $2.21, so that is a beat excludeing that tax impact now, look at revenue, also a significant beat revenues coming in at 12.97 billion dollars versus estimates

of $12.55 billion. daily active users, 1.4 billion from december, up about 14% year over year. pretty much right in line with expectations as are the monthly active number of useser, 2.3 billion, up 14% year over year, and average revenue per user at $6.18 worldwide, higher than expected. average revenue per user in canada, $27.76 i wanted to read here the quote from the ceo saying 2017 was a strong year for facebook, but a hard one in 2018, we are focused on facebook being fun to use and well in society, encouraging meaningful connections between people rather than passing content. they made changes to show fewer viral videos to people's time is well-spent and totally changes reduced time spent on facebook by roughly 50 million hours every day. by focusing on connections,

community and businesses are stronger over the long term. so interesting here that he's focusing on some of the changes that have been announced last year they announced changes to decrease the prevalence of viral videos otherwise known as click bait earlier this year, they announced changes to the news feed to prioritize communication between friends, friends' baby photos than cat videos, consumption of content it's going to be interesting what they say going forward about how those changes are going to impact revenue moving forward, and also, we're looking for any commentary on capital expenditures and how much more they spend as they double down on the issues such as security guys, back over to you >> all right, julia, good stuff, thank you. facebook shares down 3.5%. covering this all hour, but kevin, thoughts? >> excellent numbers across the board. it's the continued trend, 14% up on new accounts, that's phenomenal you don't find that anywhere in traditional advertising or media. those numbers are

spectacularment it's a sell on news for the 3% selloff, but i don't see anything wrong with any of the numbers there >> danny >> i own the stock i have owned it for a very long time i will continue to own it. i think the numbers look phenomenal people are a little bit disappointed just in terms of tax impact that has to be digested. interesting to see where it opens tomorrow, so for the record, i like the cat videos. we spend a tremendous amount of time on facebook >> yes >> because of that, i think now facebook is feeling like it has a moral obligation, especially what happened with the russian issues and things like that. >> yeah, listen, we'll move on with others to hit, facebook down 4 % now. for me, it's surprise not to see the users blown out of the park. 14% on the year, but that's not growing like it was. no idea -- >> yeah, but you're talking

about the law of numbers, 14% on a media giant. >> yes >> beats everyone else in every metr metric >> and revenue per user, $6.19 >> you're a task master. wow. >> i remember when it used to be beat by a little >> debbie downer, i can't believe it >> josh? >> kelly, microsoft reported eps of 96 cents, versus estimate of 86 cents revenue up 12% looking through the business segments here, revenue and productivity, business processes, 9 billion, in line with what the street looked for, office 365 revenue growth up 41%. revenue in intelligence cloud, that division 7.8 billion. up 15%, azure revenue growth,

98% in the quarter, and revenue in personal computing, 12.2 billion. finally, here, kelly, they say commercial cloud revenue 5.3 billion, up 65%. margins up 55% call starts at 5:30 eastern. kelly, back to you >> all right, josh, thank you. shares down 3% how about at&t >> reporter: it's a beat from at&t, 78 cents adjusted versus exception of 65 cents. revenue came in 41.68 billion dollars higher than what analysts were expecting. strong eps guidance for 2018, $3.50 adjusted as you can see the stock perhaps moving here on strong guidance up 1% in after hours, and in terms of the passage of the tax reform, impact on at&t, the company says a billion dollars in 2018 incremental capital investments, more than $200 million in bonuses paid to front

line employees in the fourth quarter. additional impacts include a 20.3 billion dollar increase in the net income, including a more than $800 million increase in adjusted net income in the fourth quarter shares up nearly 2% here guys, back to you. >> all right thank you. and, again, so far, a lot of these companies have been peeling off on the results a little bit at&t's case, going a little higher on this microsoft, real quickly, what do you think? >> microsoft changing their business model a number of years ago to the subscription model knocked it out of the park again, and azure, i mean they had 31% of the market last quarter with 64% year over year growth now you are looking at 98% year over yoear growth that's massive >> wouldn't facebook love that -- i'm kidding. >> i own microsoft, but you got to remember, this was a dino-tech company. >> yes, yes. >> the transition happened, and now people measure it in the new world. >> right >> we wish ibm did this.

they couldn't pull it off. great management here. now we got amazing margins in the company too. >> let's go back to at&t, mic microsoft shares down half a percent, was down 2% a moment ago. at&t positive after reporting its results, of course, tied up with time warner potential acquisition among a host of other things they are dealing with, but strong guidance. i wonder if that is just maybe analysts had not caught up to the tax benefit or what's going on there >> i think that their relent relentlessness around cash flows is paying off. we owned this company for a long time, amazing dividend deals, a very stable traded stock not a huge range for at&t and has not been for a number of years, good and bad, but you get the stability and see the company is really kicking in on every aspect time warner, starts to happen, i think in june is when they expect to go to court. >> quite some time >> just has to work through.

>> fun read today as well about the relationship between randall stevenson as they look to expand in mexico as well. at&t up 3% let's get the next report. >> reporter: kelly, a beat on the top and bottom lines for the payment company. revenue up 3.7 billion versus 3.63 expected. adjusted ets of 65 cents, three cents above the estimate total payment volume of $131 billion. also above estimates, full year of $451 billion, 2.2 billion dollars in payment transactions. paypal finished the year with a total of 227 million active accounts that was more than than expected the company just begun started to monetize this platform, continuing to see huge growth, 10.4 billion processed in q4 for the full year, 34 billion, and that's nearly double the volume

of the previous year, and guidance in terms of revenue and earnings and fiscal year 2018 largely in line. also, within the earnings announcement, announcing they are extending the relationship with e-bay through 2023, three years longer than the initial agreement, which set out that e bay cant great its own payment system they spun that off two years ago, and since then, it's been on a roll, down 2% in the afterhours, but the stock surged 90% last year, up more than 15% this year. guys >> thank you by the way, the banks are now coming out with their own dell payment app meant to take the momentum away. how about vertex we have the results. >> kelly, it's a beat in the fourth quarter, earnings at 61 cents on adjusted basis versus analys analysts' expectation of 63 cents. revenue at 652 million for the

quarter versus 595 million estimate for their drugs in combination, had product revenue at 621 million dollars the company announcing a $500 million stock repurchase program, and separately, driving stock 4% higher after hours, announcing they took two new experimental drugs forward into phase through clinical trials in combination that could expand treatment to 90% of patients that's important the cystic fibrosis story here, the call starts at 4:30 listening for more details on that, kelly, but up 4% on the news >> wow thank you. a great couple years going back a second to paypal, guys, what do you think about the numbers that were just put up there that stock's weaker after the result >> i mean, it had a heck of a run. there's a lot of players coming in, soft bank also, and paypal is in bed with ebay and has been

for a long, long time. they see the writing on the wall with a lot of other players, but the platform pays off. i think the stock might be ahead of its skis. >> i don't own the stock it does not qualify in my portfolio as financial infrastructure because there's no dividends look at everybody else in the space, they turn capital back to shareholders that mitigates risk i begged them going public to show out the dividend to go int every single index fund. they have not done that yet. i can't complain - >> well, in a way, and i wouldn't, but you could argue that the reason if they do that move going forward, if that's on the table -- >> kelly, there's so many mandates that require a return of capital financial services that they are not getting. it does not matter, a great run in the stock, but getting to these prices, you want everybody owning you, and, therefore, i appeal to the ceo, met him in a conference, start paying that div at 1.25%, and i'll buy the

stock. >> 1.25% >> right there >> specifically. thank you, guys. leaving it there for the time being, kevin, danny, a lot more coming up as you saw, at&t shares popping after the results. we're going to get more reaction to facebook and microsoft resultings as well, talking about how to trade the stocks, and we wants to hear from you. contact the show via twitter, facebook, or e-mail us you're watching cnbc, first in business worwildde each day our planet awakens with signs of opportunity. but with opportunity comes risk. and to manage this risk, the world turns to cme group. we help farmers lock in future prices, banks manage interest rate changes and airlines hedge fuel costs.

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welcome ack, earnings coming in. we start with mondelez >> kelly, a is 110 beat on eps, adjusted 57 cents, street looked for 56 cents revenues in line at 6.97 billion dollars, and let's take you through the organic growth numbers. now, in latin america, it was a beat at 5.5% gain for the quarter, asia, middle east, and africa beat 6.9% europe, european union, rather, up 1.4% in the quarter, and north america, though, a miss, down .8% for the quarter overall, organic growth grew 2.4% for the quarter also, taking you through what they said about tax reform they said it gave them a tax

benefit of $59 million in the fourth quarter they also reported an effective tax rate at 24.5% for the fourth quarter, 22.8% for the fiscal year 2018. mondelez is now slightly in the green. back to you, kelly >> thank you facebook under pressure after reporting better than expected earnings reaction to numbers from kevin landis from firsthand capital management and dan morgan. welcome, guys. what's your thoughts about the quarter? >> i'm just trying to imagine how great things would have to be at cnbc if you folks actively took measures to get people to turn tv sets off >> i'm trying, every day no go ahead >> right, right, yeah. thank you. but, you know, it's -- if you would have told me a year ago, two years ago that at this point, facebook would be actually trying to get people to be a little less engaged, i would have never believed it,

and that's just such an amazing testament to the kind of grip they got on so many people >> well, dan, that's the interesting thing about it i don't think they could say that if they didn't have a grip on people, right >> yeah. i mean the big thing, kelly, for the quarter, we got the data points about engagement time, average around 50 minutes, interesting to see how that moves, if it moves south or north of the number, keeping people engaged, also, the fact that they did very well in revenues hearing revenue was 12.78 billion above the estimate, and that was a good thing about this in terms of keeping people engaged, leading to advertisers giving more money to promote products. those things go hand in hand looks like in the quarter they were above the estimates in terms of ad revenue. >> kevin, can they have it both ways here's the point i agree with you it's weird for a company to say we're trying

not to be so addictive, for example, certainly this kind of company. if that's the case, they needed the changes anyway and will increase what they can take from advertisers, shrink the number of spots is this stuff that facebook needs to do to continue to change anyhow and they painted it with this dplogloss? >> they are under pressure, no question, after the election and other things they are under pressure because people are realizing what a powerful platform they got this is one of the prices of success, but, i mean, you don't have twitter having the issue or snap having the issue. so, it's -- there's only one company that is this powerful that they have to try to dial it back, and that's just -- that's just amazing by the way, you know, we have not even gotten into looking down the road when occulus has people completely glued into their own reality. they not only got a great plan to keep entering more and more

people, but a lot of hooks they have not even sunk into people yet. >> dan, where do you think the company's fair value is now? >> well, the stock now trades about 30 times fiscal year 2018 numbers. i think the key, kelly, for them is being able to continue with this success and control expenses going forward i mean, we're hoping that they'll kind of downsize their expenses to 35%-40% growth going forward to 2018. they are ramping up security you mentioned the -- what they are doing in virtual reality and so forth, so i think those are the moving parts, but the stock still doesn't seem overly priced when you look at compared to an amazon or netflix in terms of the high flying multiples that are out there in tech. >> all right guys, thank you both, dan, kevin, talking facebook, shares down nearly 5% after that report after hours. >> thank you >> microsoft lower after resultresult up next, buy the stock on the

dip? it's down 1% now plus, did you pay up to paypal after the latest result? fast money trade on that one comi ungp. [ click, keyboard clacking ] [ keyboard clacking ] [ click, keyboard clacking ] ♪ good questions lead to good answers. our advisors can help you find both. talk to one today and see why we're bullish on the future. yours.

welcome back, more on at&t's earnings, stock up 4% now. >> more than $20 billion fourth quarter income tax benefit after u.s. tack overhaul helping their profitability picture, also helping is the subscriber additions, 4.1 million total

wireless adds. 2.7 million in the u.s., and 1.3 million in mexico. also important to point out, 300,000 total video net ads, 161,000 in the u.s., and 139,000 in the latin america burning question, what happens with at&t and time warner? randall stevenson, at&t's chairman and ceo says on the time warner front, we look forward to presenting our case in court and closing the deal. kelly, that antitrust trial is set for march 19 the stock right now is up 4% we'll get on the conference call and get you more details as they come >> good stuff. thank you very much. time for a cnbc news update now with sue >> hello, again, kelly this is what's happening at this time, everyone an amtrak train traveling from washington to west virginia carrying republican house members collided with a garbage truck. there was one fatality, one serious injury from the truck. president trump commenting on the accident >> the train accident was a

tough one, tremendous jolt, and they are proceeding to their confronts, the driver of the truck was killed, and very sad to see >> reporter: insurance claims from last year's deadly california wildfires have reached $11.8 billion, making it the most expensive series of wildfires in state history the number exceeds the total insurance claims from the top ten previously most costly wildfires in california. a former boss and pharmacist sentenced to eight years on racketeering and mail fraud charges in connection with the deadly 2012 meningitis outbreak. the pharmacist at the new england compound center, 76 people died, nearly 800 were sickened prosecutors said chen cut corners to boost profits that's the news at this hour back downtown to you, kelly. >> sue, thank you very much. a look at wall street today,

the story, what happened, up 260 on the dow, went negative, rose 22 points, a very strong january for all the major averages now let's look at the names moving on earnings after the bell looks like a lot of them are to the downside facebook down nearly 5%, and paypal down 4%, and qualcomm and microsoft down 1%. talk about microsoft the shares are lower we bring in max wolff from the phoenix group. what do you think? why a disappointment here? >> well, i think we are getting a selloff and correction in the market and people sell on the news, even after good results. i thought the quarter was good >> what stood out to you >> basically office 365 up 25% year over year, cloud computing up 15%, and the other personal computing was up 2%, which says

we reversed the down trend, so i thought it was a good quarter. they continue to evolve to a company that's selling software as a service rather than shrink wrap software. >> right max? notable highlights in the quarter. >> obviously a strong quarter, less growth in the cloud than we wanted to see, and microsoft is in the habit of wowing people with a slight of hand here with revenue, otherwise, looking at fast revenues, subscriptions to software, where they do a comparison with awf, over at amazon, still the market leader with over a third of the business, so we like the name, however, let's be honest, it's hard to imagine microsoft bigger than it was in the past. it's done well outpacing the dow, but there's a lot of value, and the name, was a solid quarter. >> can it keep growing >> i believe it can, and i think the cloud business will continue to grow, and the office 365 has

a service because they add more futures that's going top to the share point platform to the team sharing platform, so i think that is evolving and continues to grow. >> max, there have been -- we have not talked a lot about the length in acquisition. it's not really coming up a lot. there's also been rumors this week briefly mentioning in ea. microsoft looking to do something on the xbox front? is that important for microsoft, do you think >> look, diversified revenue treatment, better lags than office productivity software is exciting here. we'll continue to see that being part of the story. that being said, the tax benefits, people expected more news on that microsoft has a lot of offshore held money, making bigger, higher ticket accusations. i think we thought we'd hear more razzle-dazzle on that, maybe in the call, and, again, some of the other acquisitions make sense, a billion dollars on the linkedin deal, but the question is, is it priced in at

$93? hard to imagine unless they discover a cure for cancer in there they don't have a lot of that value priced in right now >> yeah. the bioteches are doing that now. before we go, now that they have access to the capitals from overseas, what do you think they should do with it? >> well, they just announced they are going to have a 13 billion dollar tax charge, meaning they are bringing about 85 billion to reinvest in the business, to acquisitions, buyback stocks. >> what kind >> i think expanding the gaming platform would be good the xbox 360x is probably the most advanced platform on the market it is becoming more of an entertainment hub than just a gaming platform. i think they, of course, they are incorporated into the voice activated interface into that, and so i think that will be part of the connected home and the internet of things interface for them to grow that significantly.

>> all right see if they get more on the call, thank you for now. ivan and max, down 2%. paypal lower after reporting results, and find out of the how the fast money traders are g e ocwh wcoene me right back on at schwab. oh really? thank you clients? well jd power did just rank them highest in investor satisfaction with full service brokerage firms... again. and online equity trades are only $4.95... i mean you can't have low cost and be full service. it's impossible. it's like having your cake and eating it too. ask your broker if they offer award-winning full service and low costs. how am i going to explain this? if you don't like their answer, ask again at schwab. schwab, a modern approach to wealth management. your insurance on time. tap one little bumper, and up go your rates. what good is having insurance if you get punished for using it? news flash: nobody's perfect. for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. switch and you could save $782 on home and auto insurance.

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president trump delivering his first state of the union last night, said the stock market rally was not lost in his message. >> the stock market smashed one record after another, gaining $8 trillion and more in value in just this short period of time >> futures up sharply after the worst two-day performance with the dow since september of 2016, and the s&p worst day since may of last year >> boeing all-time high, beating top and bottom lines, beat the guidance >> i love the balance sheet. i get emotionally involved when i look at it it is such a thing of beauty generating more and more and more cash flow that is what is driving the stock. >> the amtrak train was carrying republican members of the house of representative, collided with a garbage truck. there was one fatality and one

serious injury from the truck according to the white house >> no change in the federal funds rate, it's set at 1.25-1.50% unanimous decision by the nine current voting members of the committee. >> now near session lows, s&p negati negative, the dow up 261 points at the high, now up 60 crazy day, up 260 on the dow we were then lower in the last hour, and we're closing higher by 75 points that's 26150 quite a day. quite a month looking back on january, a strong start to the year for all the major averages. checking on shares of paypal after hours after reporting their results, tradingweaker joining us now, welcome, guys, stan, paypal's down 4% now, and what do you think is going on here >> well, i think it's a as a matter of fact that the stock was up 100% in the last year, 50% of the year, and the numbers

look good at first blush here, a m shift in payments. they are well-situated there's an issue further into the year when people compare their valuations, that is paypal versus expected growth versus mastercard and visa, two stocks performing well, and, also, taking advantage of the secular shifts in e-payments, but eventually, paypal could be viewed as rich if you see a minor deacceleration in the earnings and sales growth. >> wow >> deceleration yet? >> he emphasized you don't need me i'll sit here and look pretty. i'll push back a little. ill say this the quarter was okay they basically reiterated what they said on january 16th. valuations are a concern it's been a concern for the last 65, 70% of the move. the stocks made an all-time high today. transaction margins were 65%, they looked for 55%. there's a little bit of

everything for the market. i think bull wanted to see full year guidance for next year, this coming year, increase it was not that's the reason to take profits in the name. they upgraded the stock. look, i think it's fine. probably a healthy pullback in name you don't have to rush out to buy paypal at close to 38 times forward earnings, but you are getting an opportunity, again, over the next couple weeks given what they are doing to buy perhaps in the low 80s >> would you guys -- actually, i should not know if i know the answer, but buy banks instead with them coming out with their own -- you know, the -- look, then it was an amazing product when it came to market, but now it's getting more commoditizeco and when each bank does it too, is it worth paying 38 times for the fast growing part of the company? >> banks have a different revenue stream and different --

the tail winds for banks are different than just offshoot of venmo. you know i'm not, i'm carrying around a couple dollars in my pocket that's how i get around. >> don't advertise that. >> someone want to knock me off, i'm here at 5:00, it's predi predictable as can be. buy pay january pal if it pulls back to 80 bucks >> with this and other peer payments, it's important this is the bear cage for paypal, first mover advantage. they got in with the millennials, your kids, that sort of thing, but at the end of the day, everybody's got a bank account, right if they make it easy to pay peer to peer, don't forget apple, latest ios made apple pay peer to peer, so competition is a big thing for this year, and that's when people start focusing on the fact that it's up 100% year over year, and it's getting a little expensive

>> yep did you want to comment on how much cash you're carrying or - >> listen, i got a couple bucks. $fou $4 >> i got the cash app from square >> i'm 54 years old. i don't know what to tell ya i don't got the pps. i got nothing. >> just taking inventory >> you ask the question, i answer the question. >> i didn't if dan was fully tech or still old school we'll let you guys go and hope nothing happens. thank you for your time. >> catch all of "fast money" at 5:00 p.m. eastern time another earnings report. >> kelly, shares fell 4% in extended trade despite a 5 cents beat on the bottom line. here's the story despite growth in the cyber security unit, overall revenues sales beat expectations, 1.23 billion versus estimate of 1.27 billion. the ceo says the business volume

planned in the enterprise segment, third quarter revenue was below guidance speaking of guidance, the company cutted the q4 guidance by a sizable amount. the stock down nearly 5% right now, kelly >> that'll do it for sure. thank you very much. more than 5% as we continue. shares of square, by the way, popping today, up 3%, and we'll llouhy in tea's take away right after this ♪ ♪

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qualcomm shares lower after the earnings report. we spoke to the company's ceo and has the highlights, john >> reporter: kelly, interesting news on china from the conversation just now with steve, and some of his lieutenants. first of all, the average selling price of smart phones in china in qualcomm telling me higher than expected, seeing that consumers trade up from low end to mid-tier and higher end devices capable of lpe, and larger screens, and on the other hand, though, the sell-through, unit sell-through a bit lower than expected. one of the executives there told me they are keeping an eye on chinese new year sales to see if that picks up, what direction that goes in both of those trends are something that apple investors want to watch for as that company's report comes up, of course, apple not included in qualcomm's licensing number right now, but average selling price of apple devices are

higher, which could be good, but if the chinese customers are buying fewer smart phones, that might be bad with apple with a new smart phone on the market. i talkedabout the cross-licensing deal, patent cross-licensing deal with samsung, executives there telling me that it goes through 2023, so that's five years it does include 3g and 4g patents not included before, and that stability is a positive, they said, of course, they are under fire from a number of competitors for their licensing business, but samsung now not adding to that particularly in korea, kelly >> jon, good stuff china stuff is interesting, in particular, thank you, jon frott spoke with the qualcomm ceo. time for the takeaway. beginning with samsung, 50 for with 1 stock split adding liquidity to the long term, and kevin o'leary is back. should stocks here like amazon

follow suit? >> no. i don't think -- the classic proves it doesn't matter i don't see chopping up stocks 50:1 makes a difference at all it's a trick to get market cap it works sometimes >> if it doesn't work, why the cap. >> why does samsung saying specifically it thinks it will work and shares rally as a result >> because they think it will work you have to look at it in a quarter or two from now. you can buy fractional shares today. >> true. >> it doesn'tert match it is financial engineering. i went to samsung weeks ago. what an amazing plet re of new products. >> rave being samsung, and the google phone over here. >> i can't help myself i saw incredible technology. >> let's talk about football fox won the rights to air thursday night football. shares tanked in frons down 4.5%.

one of the worst performers in the nasdaq pay $3.3 billion for the broadcast rights is that a smart move. >> the market doesn't like it, clearly. there is issues about football as a genre it started with the the knee down issue and all that stuff. and how fast is the viewership growing? >> yes. >> and the dollars are so huge in these cases you have got to get it right and know the advertise remembers going to be there. i think the market is signaling there is risk to the deal in terms of what the irr is eventually going to be. >> i wonder if the price had been different, fit would have been more positive grass, now you have this property, but at that price too up in. we will see if they can make it worthwhile. >> square climbed after the ceo tweeted users can buy and sell bitcoin on the cash app. it has been testing for a couple of months. bitcoin has been sinking lately. regulators cracking down facebook saying it's not going

to let cryptocurrencies advertise. i'm surprised square was excited to announce this what does it say to you. >> my bet is less than 1% of transactions will occur on it. but in the bitcoin story, the more the regulatory head squeezes the better for the currency there is a place for the curren currency as long as it's not volatility 5 to 7% volatility in a quarter would be like a real currency. the biggest opportunity, the way i'm going to get involved, is could i be part of a platform that allows you to issue coins for assets take companies like my shark tank companies with coins if the s.e.c. approves it that's what i'm interested.

>> it sounds dicey. >> you are doing it with independenti go go and all of these things that allow you to trade currency into product. >>. we will check on stocks making big moves after hours today's results, apple, alphabet, and amazon among others coming up on "fast money," wells fargo's strategist says volatility is back tht.all tell you how to de wi i what's the value of capital? what's critical thinking like? a basketball costs $14. what's team spirit worth? (cheers) what's it worth to talk to your mom? what's the value of a walk in the woods? the value of capital is to create, not just wealth, but things that matter. morgan stanley (sighs) i hate missing out missing out after hours. not anymore,

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. businessy hour for earnings today. tomorrow brings more of the same here are the big th meecnas on deck we will tell you more about that next [ click, keyboard clacking ]

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at&t's earnings call is underway the shares coming off of their high. >> while the justice department attempts to block at&t time warner acquisition randall stevenson, ceo of at&t

remains confident. >> our top priority for 2018 is clezing our deal to acquire time warner we were obviously surprised when the government decided to try and block the merger because it is a classic vertical merger between two companies that don't even compete with one another. with 50 years of legal precedent, it's the type of business combination that the government has confidently approved with appropriate conditions now, while we remain open to finding some reasonable solutions to address the government's concern, we do expect this case will ultimately be litigated in court. the trial date is set to begin march 19, and we remain very comfort that we will complete this merger. >> we'll see if this deal closes kelly, back to you. >> seema thank you. seema mody, at&t shares were up 5% as i said they were a little bit off of those highs. how about facebook this is going to be the one to watch. shares were down nearly 5% after that earnings. the call is going the start shortly. down a little more than 4% now

the company said recently changes it made to the news feed meant users spent less time on the mainframe. it's time for "fast money" now thank you for joining us on "closing bell. we will see you back here tomorrow for a whole lot more earnings "fast money" starts right now. i'm brian sullivan in once again for melissa. your traders on the desk, tim seymour, guy adami bitcoin under pressure there is something happening this week that could be about to take the crypto to the next level. we have got those details. plus, boeing's epic run rages on and could mean even more trouble for ge. we'll explain the connection. first we have to begin with technology earnings. two behemoths reporting numbers motels ago facebook and microsoft both coming in with beats however, the stock