amazon and the atlanta fed raising its first quarter gdp. something's going on in atlanta. they're drinking some mint juleps down there. steve liesman a little ske skeptical. >> thank you for watching "power lunch. >> "closing bell" starts right now. ♪ hi, everybody. welcome to the "closing bell." i'm kelly evans on another busy day at the new york stock exchange. >> irts been a highly volatile day on wall street it was up 1.75 points at session highs. coming up, we'll talk about what's driving these moves it is higher at the moment by 39 points. >> it is the busiest day of earnings season. our reporters are standing by with everything investors need to know as we gear up for this after-hours. aditi is watching alphabet, deidre is looking at amazon and

josh lipton will cover apple for us josh, what are you looking for >> kelly, here is what the street's going to be looking for from tim cook's company after the close here earnings per share of $3.86. that will be on revenue of about $87.28 billion that will represent gains of 15% and 11%. iphone units, 80 million with an average selling price of $756. key metric for investors, march revenue guidance, the street expecting $65 billion, meaning a jump of 24%. apple stock is about 7% off that recent high we saw of $180 in mid-january on concerns of demand for the iphone x. though, there are some apple suppliers who are probably saying some of these reports we were hearing about steep production cuts were actually overstated we should soon have a better idea guys, back to you. >> josh, how key is the china number particularly when it comes to the iphone?

>> it is very key, wilfred we have a debate there are some including bulls at morgan stanley, they're very bullish on apple's business in china. we saw the greater china revenue number pop 12% in the september quarter. morgan stanley telling their clients you could see a potential similar accept-up for the december quarter others like those at bmo are not as confident, say there's a lack of traction for the "x". >> josh, thank you let's turn to aditi with a look at what to expect from google parent company alphabet. >> first and foremost, analysts will be liking for top-line growth street looking for $39.5 billion. last quarter they reported $27.7 billion, up 24% from the previous year. analysts are looking for earnings of $998 another metric the street is watching is traffic acquisition

cost or t.a.c. those are the fees google pays its distribution partners. it's been rising with a surge in mobile and problematic and it can be an area of concern for estimates. estimates are $6.28 billion. we'll be looking for any impact on the company from the new tax plan and if alphabet has a plan to repateriate. >> amazon is up 3% in the last month. >> that's big, even by amazon standards. not to throw cold water on the big holiday quarter but the street has a tendency to overestimate amazon's q4 it's not hard to see how it could be a blowout quarter between record holiday sales, prime membership growth and the growing popularity of alexa and echoes cost and delivery ramp up for the holidays, two, whole foods acquisition, and aws

remember, this is amazon's profit engine. while still a leader in the space, competitors like alphabet and microsoft's cloud division are growing faster now and aws margins have been under pressure things we'll be looking for on the call will be any more details to deal with hq2 and just announced health care company amazon is forming with jpmorgan and berkshire. >> that margin pressure in aws comes when microsoft saw cloud computing margins expand pretty significantly this quarter. >> that's right. and because you are seeing price wars you have the first phase of the cloud wars that's just getting companies onto the cloud infrastructure. the next phase of the cloud wars, which some analysts think amazon could have more trouble is, is what are you adding on ton of that? what services are you adding in with that? >> thank you we'll see you for it the

earnings reports after they come out after the bell we have all-star analysts ready to break down those numbers. i'm not sure i'm ready. >> it's going to be very excited. >> all as today. huge, huge companies and a crucial quarter, particularly after the last couple of days of pullbacks in the markets let's turn to the markets and another day of volatility for stocks, despite the ups and downs this week, the dow just notched up best month of gain since early 2016 it was a record month for etf flows. let's bring in bob pisani with more. >> hello the economic news has been better, tax cuts have been helping. investors are just pouring money into the stock market. we follow fund flows here at cnbc that's where the money is going. look at etfs $75 billion in january is that a little or lot? last year the average was $40 billion a month. we're talking way, way into record territory it's going into u.s. equity and we're emphasizing international, european markets and getting a lot of money because the global

economy is expanding fixed income is on the flatter side they're not pulling a lot of money out there. where is the money going we keep emphasizing, plain vanilla index funds like s&p 500 index funds, there are two of them, eafa, that's europe, and emerging markets put those two together it's about 40% of the flows simple, index, low-cost funds. bonds, look, we're not even getting big outflows you think they'd be pulling out of high-yield or investment grade corporate. these are modest outflows. i don't think they're statistically significant. a lot of noise with the fed meeting as well as end of the month rebalancing. s&p right now, we had a big buy program right after the european markets closed look at that, right up and just slowly drifting south this is a lot of noise in the first quarter. some money being put to work and obviously people trying to take profits in the middle of the day. back to you. >> thank you, bob. we'll see you on the close mike santoli is orlando, and

top advisers are gathered there to learn about the latest in wealth management. >> what a perfect time to be doing so with the recent volatility how should investors be approaching the market mike joins us now with ceo of td america, tim hawkey. >> hi. thank you for joining us let's pick up on what bob was talking about the flows into the overall industry, reflected in your business. came into your year, your traders/clients had high exposure to stocks, very active, high asset flows are they equipped to deal with any uptick in voluntarility? is is there a chance this market is getting overheat on that front? >> as you know, we just reported our earnings a few weeks ago we talked about the trade levels we're seeing now, let alone the elevated levels we saw in the fourth quarter so, it's been a -- it's an mazing ride. to your point, there is an enormous amount of new retail money coming into the retail market the story seems to be around the

cryptos and as well as the cannabis-related sectors but we are seeing it across the board. it was just said on the show, certainly simple etf, broad sector plays is a relatively simple first trade for a lot of our new clients. and so, to your point about is it getting a little frothy it feels that way. >> you mentioned the story is in cryptos and cannabis, you mean at the margin, that's where this new rush of volume is coming from >> yeah, i think to your point, we've -- we've had a long-term period, a very, very low volatility so, you put anything into the mix that actually creates volatility, you get people focusing your attention -- we've never seen attention focused like we felt over the holiday period talking about, this was the topic. as a result for people saying, how do i participate in that yes, there are ways to -- futures that we can allow that type of trading but mostly it's just interest in the investor saying maybe i should learn more about this trading thing

it might be blockchain and cannabis but could be broader based as well. >> any evidence that transition is being made at this point or is it too early to tell? people starting with the cryptos and broadening out >> it's very early, but if you look at how our new accounts are shifting to the younger generation and you look at them starting to dip their toes in the water, so one of the things we see is that our equity to derivative mix, which is usually -- we call it 60/40, there's a higher mix of equities it's an initial trade as opposed to more higher education level required for derivatives trade so, it is early days, but it's boding well. >> on that note, mike, thanks, and hi, tim. i was just going to ask, we used to talk about tesla and to some degree apple as those names that were driving a lot of retail stock participation. do you see that today? are there companies, are those the companies, are there other ones outside the other areas you mentioned that seem to be hot

with the younger, newer traders? >> yeah, certainly the fangs, et cetera, seem to be very popular amongst all segments we saw a 70% increase in our under 35 age group that are opening accounts and those are also the products they use, so they're making those types of trades. but they are looking for the other symbols that essentially are more reflective of the interest that they have and some of them are otcs, for example. so, it's shifting a little bit, but no question the tech stocks are still very popular. >> i want to touch quickly on interest rates right here. obviously, rates going higher on the short end. probably pretty good for your business and the revenue side but is there a chance that rates go up too much do you think that can up-end the markets in any way >> absolutely. there's been a, what, 30-year secular decline in interest rates? a lot of this generation of investors and, frankly, borrowers, have never experienced an uptick. it's one thing to have -- i was

a banker for 32 years, so i've seen this movie before and it's not good when it's short. and i think we've seen this from the fed. the fed has had a very, very balanced view. some would say they're a little delayed but i think you might see a little more of a sharper slope, if you will, going forward. that should be something everybody should be a little careful of. >> have it on the radar. tim hockey, thank you for your time. >> thank you for having me. >> thank you very much for that. thanks to tim hockey as well. breaking news on mitt romney >> mitt romney, former presidential candidate, has just tweeted he's going to announce his decision on whether to enter the utah senate race on february 15th there's been a lot of speculation. it's believed that he is preparing to run uts n it's not a question of whether republicans would hold the seat but a question of whether the seat will be held by a run as much of a high-profile critic of

president trump that romney is we think the answer's going to be yes, but we aren't sure until it comes out of his mouth, guys. >> i was going to say, i find it hard to believe he would tweet about an announcement he was looking forward to if it was just going to be, i'm not going to do it, i'm looking forward to spending more time with my family i wonder how much of a thorn he could be in the president's side to the amount of gop lawmakers not returning for the midterms, do you think romney is of that ilk? in other words, is there room for the more moderate wing of the republican party to do well? >> i don't think it's an ideological question, for those that are leaving are leaving because it's a difficult environment to serve in, a difficult environment to run in. many of them would lose otherwise. i'm not sure it's going to translate into a shift of ideological composition of the republican party but trump himself is not an

ideological figure >> it's going to be fascinating to watch thank you for bringing us that news john harwood. it's a bit of a mixed bag. phil lebeau has more >> i'd call it a solid month we're still waiting for final sales rate for the month, but it was a solid month. not spectacular but not bad either when we say it's a mixed bag, it truly is when you look at each of the automakers, don't get caught in too much if they're up or down relative to january of last year the overall pace of sales was still relatively strong, especially when it comes to suvs, crossovers, pickup trucks. general motors' crossovers, up 20%. toyota pickup sales, up 25%. then jeep posting record january sales. once again, we see the market gravitating towards crossovers, suvs, pickup trucks.

those are the high-proceed fit margin vehicles for the auto industry the sales rate is expected to come in between 17.1 and 17.3 million, which would be a decent start to the year and might perhaps set up the industry to, perhaps, make it a fourth straight year at 17 million, but it's way too early in the year for that finally, guys, the chart of the day, the stock of the day, check out ferrari. today in italy the company announced record profits for 2017 and look what the stock did. it jumped more than 7% it is at an all-time high. i remember when sergio marcione wanted to take them public they thought they would cheapen the brand. it's been a great run. >> i was going to say, one of the other stocks you you could have picked was daimler because they get downbeat guidance this morning. it was one of the sparks for the selloff in the dax downbeat because of the strong euro is that potentially, therefore, a boost for the u.s. automakers in the year ahead if the german

makers, european makers are suffering because of the strong euro >> not necessarily when you look at daimler, it's particular to the amount of money they're investing in mobility services, future autonomy vehicles. and i think you'll see this, wilf, with a number of the automakers around the world. increasingly people are saying, how much money are you investing in these future products it's daimler's turn in the barrel today don't be surprised if it's somebody else over the next couple of quarters >> phil, great stuff thanks very much for that. phil lebeau. >> i can't even picture daimler without chrysler anymore it's just a -- it's a different world. >> well, mercedes. >> that will do it, the benz. steve liesman has more on janet yellen. >> we just got a few pictures in from the traditional sendoff that happens at the federal reserve when the chair's job changes hands. janet yellen and -- outgoing fed chair janet yellen and fred

powell can you see janet yellen addressing the collective employees at the federal reserve. i'm told she was greeted with sustained applaud by incoming fed chair powell who will take office february 3rd. there's jay powell addressing the group. we're told they said nice things about each other nice remarks made on both sides. some employees, we're told, put their collars up in a show of support for janet yellen then i'm told, guys, at the end of his speech fed chairman -- incoming fed chairman jay powell also put his collar up as a show of support for outgoing chair janet yellen and the style she has come to be known by, guys. >> steve, one question i don't know why this popped to my mind. but what's the salary for a fed chair? >> i don't know. >> is it public or not >> i think it's a little bit -- it's somewhere below the fed -- below the president. i think in the 200 range i have to double-check

i don't know off the top of my head. >> but with huge prestige as well steve, thank you for that. nice pictures. >> and the ability to go out and write books later. >> well, exactly exactly. steve liesman for us there. >> he didn't pop his collar. 45 minutes to go and the dow is up 46 points we've been down and up today s&p is hanging dwron a two-point gain transports are down 50 small caps at 4. the nasdaq is weaker by 4. a lot more still to come on the "closing bell. >> announcer: coming up, a creative way to get bodies back into the mall. we're talking about the ails reits that may be helped plus, we're on the watch for amazon, apple and alphabet all reporting after the bell "closing bell" is back in two minutes. hi, i'm mindy kearns. it's great to finally meet you. nice to meet you too. your parents have been talking about you for years. sorry about that. they're all about me saving for a house, or starting a college fund for my son.

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welcome back to the "closing bell." the dow is higher by 9 or 8 points the high of the day up some 157 points we have sold off towards the end of the session the s&p and nasdaq just negative russell slightly higher. pandora trading higher today by quite a few percent after

announcing a restructuring plan late last night. there it is for you. up 18.5% the music streaming company will cut around 5% of the workforce and shift resources to focus more on audience development efforts and also expand its presence in atlanta but will keep headquarters in oakland, california. meantime, bitcoin has been crushed last month and looks that way again here. plunged below $9,000 and now on its way to $8,000. >> this is big the bitcoin beating just keeps on happening it continues the latest round taken the cryptocurrency down below a key psychological level. like you said, prices on the bitcoin on coin base exchange went below the $9,000 mark sitting around $8400 now on coinbase today's action was driven in part by reports of more increased regulatory scrutiny in india as well as possible price

manipulation at a currency we're seeing double digit key clines in ooeter the all time highs we saw in mid-december, now over 50% a painful trade for many of those late intrents to tentrante >> given how strong every other asset class was in the month of january. big losses there. meantime, congressional republicans meeting today in west virginia to map out their legislative priorities for 2017 and president trump just delivered a speech to the group. we're joined from white sulfur springs, west virginia ylan >> reporter: the midterm elections are top of mind out here in west virginia. president trump essentially outlining the gop offensive in his speech they're going to be running on deregulation, gutting the individual mandate, drilling in the arctic and, of course, tax

cuts the president even dangled out that possibility of a tax cut phase two also slammed democrats for opposing this legislation. >> nancy pelosi called crumbs. that was a bad -- that could be, like, deplorable does that make sense, deplorable and crumbs those two words, they seem to have a resemblance i hope it has the same meaning but she called it crumbs when people are getting $2,000 and $3,000 and $1,000. that's not crumbs. that's a lot of money. >> reporter: now, the president and the gop focused on sort of the broad legislative priorities for the year but they also have to get the basics done of keeping the government open beyond next week now, today house and senate leadership said they do expect to see at least one more short-term funding measure that would need to be passed. senate majority leader mitch mcconnell said they are discussing how long that would be for, exactly what it would

look like, but he does believe it will pass. >> i don't think we'll see a threat in government shutdown again over this subject. one of my favorite old kentucky sayings is there's no education in the second kick of a mule and so, i think there will be a new level of seriousness here. >> reporter: this retreat is all about trying to get members of the republican party on the same page while they're out here in west virginia, at least. we'll see if they can hold the line when they get back to washington back to you. >> that's another great phrase we have to get wilf to start using. >> i like that one. >> let's talk about the memo for a second i'm sure it's all the talk over there as well. is today the deadline for the gop to go ahead and release that to the public? should we expect that tonight or tomorrow what do you think? >> reporter: the latest reports that we are hearing frommette white house reporters is the president will likely tell congress tomorrow that he is willing to release that memo

again, this is one of those memb issues not on the official memo but driving the retreat. house speaker paul ryan saying he believes the memo should be released but pushing back against the idea it would be released somehow to undermine the russia investigation or undermine the fbi. but, of course, democrats calling now for the -- for paul ryan to remove house intelligence committee chair devin nunes from the committee over this memo and the contents. >> after the state of the union, is republican unity pretty strong right now >> reporter: that's what the president says right now you are hearing a lot of optimism amongst republicans. they feel they have a strong legislative record to run on mitch mcconnell just said this 2017 was the best year he has seen in his 30 years in office so, they feel like they have a fighting chance if they can

avoid some of the self-inflicted wounds that have been plaguing the republican party over the past year. >> ylan, thank you very much for that what was the phrase? there's no fresh lessons from the second kick of a mule? >> yes >> he said it with a better accent. >> yes >> yes >> you can work on that. >> i can work on that. >> that's a great line. 35 minutes to go until the close. the dow is trying to stay positive it's up 11 right now we were up as much 150 earlier the s&p down and russell down three. we're going to crunch the numbers ahead. >> later, could pumping iron be the secret to getting america's struggling malls in shape? we have a special report on the report that could bring gyms to a shopping center near you (siren wailing)

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welcome back with the markets in flux, you can see what's behind this move. telecom is having a great day on the back of at&t's performance after its earnings last night. it's up 2% leading the way energy a little higher with wit crude nearly at $66 a barrel financials a little higher real estate, utilities weak, and we talked about interest rates moving higher again. time for a cnbc update with sue herera. >> hello here's what's happening at this hour, everyone police say a male and female student are victims of a shooting in a classroom at a los angeles middle school.

both victims are 15 years old. the male is in critical but stable condition the female in fair condition the suspect shooter is a 12-year-old female student who has been arrested. a weapon was recovered at the scene. airbnb says it will not go public this year and it's also losing its cfo and appointing its first chiefly operating officer. this as it pursues tighter management of its finances the short-term home rental company is currently valued at about $31 billion. sears says it has secured loans for a total of $210 million. the embattled retailer continues to prop up its business. it secured those loans through the chairman's esl investment fund sears said on wednesday it was laying off 220 workiners at its headquarters. more of california is rapidly plunging back into drought with severe conditions now existing in santa barbara,

ventura and los angeles counties that is home to one-fourth of the state's population you are up to date that's the news update this hour i'll send it back downtown to you, kelly, wilffred. >> thank you we'll see you next hour. sue herera. airbnb is the other story of the day. this is a big blow this is one of the marquee companies this year -- we're already off to the best start for ipos, i think, of all time we've had a number in january, which is usually a slow money, but everybody is waiting on these big names and airbnb says it won't be one of them this year. >> it's one of big ones meant to come this year you look at it and think, i can't blame them the private market continues to fund these companies so well why do they need to go public when they look at companies and what happened to snap. >> at some point they might have to give liquidity to their employees, which is why the spotify direct listing is interesting to see how well that comes off.

we'll obviously continue to cover that one as we learn more about what may be happening with airbnb a setback hoping for that to happen. >> all important stories begin with "a" today. we have about 30 minutes -- 20 minutes to go until the bell. we are lower suddenly more meaningful for the nasdaq, now 0.4% the dow is down 0.14%. so, we've just sold off once again in the last 20 minutes or so still ahead, new data shows u.s. crude oil production is ramping up to levels not seen in more than 40 years and it's expected to expand even more we'll break down the impact on energy stocks. we're also gearing up for the a-team of earnings -- alphabet, amazon, apple. >> amgen as well. >> and our team of reporters and analysts are standing by to bring you the mbs u ed kw.nueryone [ click, keyboard clacking ]

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it's been a very volatile session. dow was up 175 points at the peaking and we've been in negative territory, back out of negative and now back into negative territory in the last couple of hours. the dow is down 31 points.

the s&p is down 0.3% the nasdaq down now almost 0.5%. a crucial night of tech earnings to come in the next hour or so. >> let's send it over to dominic chu with a market flash. >> we want to call your attention to right now what's happening with the long-term u.s. government bond market, specifically the 30-year long bond we are now at yields we haven't seen since may of 2017 that 30-year long bond has now taken 0.31% is the last trade there. our last point above the 3.0% since may of 2017. looking at the ten-year note yield, 2.87% breaking multiyear highs as well all of this in the context of three big bond auctions happening next week on the three-year note and ten-year note, as well as the 30-year bond we'll see if these higher interest rates seem to attract some other big-name investors and foreign central banks to this market. back over to you >> fascinating dom, thank you for that. fascinating move in the

currencies the usual reuro moved up 0.8% you think it would be the other way. but a big move in the euro, particularly in the last hour or so. breaking news on auto sales. phil lebeau has that. >> the pace of sales for january coming in at 17.12 million vehicles that's roughly in line with what most people were expecting so, a solid start to the year. compare this with where we've seen auto sales finish the last three years. above 17 million now, it's too early to say we'll finish this year above 17 million, but the pace of 17.12 for january, definitely a solid start. back to you. >> phil, thank you phil lebeau for us in chicago. let's have a check on market performance as well. we've already had a little bit of a look, but let's have another look there's that market performance year to date up some 5%. >> look at the nasdaq. up 7%. >> it is extraordinary. >> and it's been divergence as well dom has a look at what this

could mean for thes rest of the year ahead. >> let's take with what's happening, if the bulls needed any more fuel for this rally history might be on their side given what we saw in january the s&p 500's 5.5% rise last month meant it was the best start to a year for the stock market since 1997. and when january is this good, the rest of the year is typically followed suit, historically speaking. according to the stock traders almanac since 1950 a positive january has correctly predicted a positive full year around 87% of the time. s&p, dow jones analyst howard silverblatt found it was correct 72% of the time since 1928 our data partners looked over the last ten years prior to this last month we've had positive januarys four times. three of those four years ended up with full-year gains. so, a 75% batting average if you're looking shorter term. the only year that it wasn't, guys, was 2011 when the s&p fell but get this, it was less than a

point. i literally mean a point we'll call it pretty much flat on that particular year. this is not to say it's totally predictive but many traders are looking towards this history as a possible factor for determining market outlook by the way, if you want more on the seasonality story, go to our friends at cnbc.com. back to you. >> thank you, dom. dom chu. >> going back to those statistics, amazing january, but wie got a lot of differentiation in january the top ten movers in january in the s&p, up more than 20%. the bottom ten, down more than 10% each so, huge, huge difference, despite overall -- >> it's a stock picker's market, as they say. let's ask -- >> as you say, impersonate meg. >> for the "closing bell" exchange we have hank smith, cnbc market analyst steve grasso at post nine from stuart frankel and rick santelli at the cme in chicago. hank, all of your market notes just were about the eagles today. can we just point this out to

everybody? we see what's going on here. if you can't draw some analogy back to the market, you're in big trouble, buddy. >> it's our number one trade, kelly. take the eagles and 4 1/2 and then on monday roll your profits into jpmorgan and johnson & johnson. >> steve, talk to us about this market today by the way, these moves in interest rates, this is a big deal. >> it is a big deal. right out of the gate you say the dax was weak, cut through the 50, the 100-day moving average and then labor costs rising so it gets everybody a little infrad of inflation creeping back in we haven't heard of inflation for how many years the fed, by the way, was perplexed as recent as december as to why there was no inflation to be found anywhere then you couple that with an ecb representative saying that the time to end asset purchases has come now that decision won't be made for quite some time. and i guess you really can't put any credence into that until you hear draghi say it and then you hear president trump talk about phase two of the tax reform, or

tax cuts all of those balanced each other out. we're back where we started off the day, in a weak momentum environment. but where have we come from? we're around those historic highs in the s&p a little give back, natural. i would still stay by the market, though. >> your view of that, hank, we've had a little give back over the last few days enough give back to stay with steve's position and buy the market or not? >> i would say the market is adjusting to higher interest rates, which is perfectly logical. you can't go up in a straight line like we did in january -- most of january forever. look, the market in the past 12, 14 months has been very rational it has reacted to the fundamentals and ignored all the other news the fact that gdp growth is expanding both here and globally, corporate profits are expanding here and globally. inflation is benign, as steve said and interest rates, even though

they've ticked up, are still relatively very low. and the risk of a recession remain very, very small. out over 12 to 18 months this is still a very good environment for the stock market >> rick, does this all go back to the atlanta fed's tracking number this morning? i know it starts hot for the quarter but i don't think it started as hot as 5.4% in quite some time. >> no, no, hitting 3% for a 30-year bond we're 37 basis points and ten note year yields higher. these are a big deal we weren't 37 basis points above the previous settlement's year for all of 2017. i also think the market needs to be ready to do certain things. so, i agree. when it's 5.4 gdp from atlanta fed, it did have an influence because it's being influenced in

the upside direction now it's hardly had any retracements at all we've covered a lot of ground. i would say tomorrow, especially the earnings side of the jobs report, will be very important, as well as december durable goods. if you recall, if you looked at orders non-defense, ex-aircraft, it was down 0.3. that's capital spending. and i think we want to watch that i wasn't happy with productivity today, a minus number. even when you look at the whole year and assume that fourth quarter preliminary number sticks, we're still a little over 1% for the entire year. it's still the best year going back to 2010 i don't see interest rates are going to back off. i am a little nervous that the fingerprint of the equity markets is now a little bit more volatility, days where you have big gains and you turn them into losers this isn't the way it acted for much of 2017

and i think that traders need to keep their antennas up and cognizant of the fact that it seems to be changing a bit. >> before we go, steve, do you know why amazon is suddenly down 4% on the session? >> you can only look at the market that just slipped again and took a little leg lower. going into the you understaend you see tremendous volatility. we've had this rebalance the last couple of days. you get guys trimming tech positions, buying something else, or buying energy as you see it catapulting higher as far as wti and brent maybe that's a whole rebalancing effort we don't know, unfortunately, until you know the headline that just came out. >> it's an amazon-specific move. alphabet and apple haven't done the same it's loss an extra 2% or so in the last ten minutes. >> it's about to report. we'll see if we get any further news on that thanks for joining us. hank, go eagles. >> go eagles >> hank smith, steve grasso and rick santelli. countdown under way. we're hanging on for about a

half an hour before the bombardment of earnings. amazon, ail fet and amazon we have full team coverage straight ahead

snud welcome back to the

"closing bell. the ten-year treasury note very close to 2.8%. it's just picked up in the last 15 minutes or so, 2.79%. that's part of the reason we've had a little selloff in equities i want to show the ten-year german bund yield as well. it only crossed 0.7 briefly yesterday and it's pushed higher throughout the course of the day. that's the move over the last month where it was just at 0.4 a delta of a move in the german bund significant and driving yields over here as well. >> the 30-year interest rate is over 3%. it's been the worst week for the home building business, down 4% so far let's check on a couple of etfs moving in opposite directions. year the energy, xle, which is positive, and real estate going the other way. not surprisingly with those reits with the way interest rates are going. diana olick with ideas to turn reits around and jackie with

energy. >> crude is up a little under 9% in the last month and established a new trading range with $65 being the new sweet spot analysts also think we'll go higher from here for several reasons. let's walk through them. first, weak dollar second, strong stock market. on a relative basis. that implies strong demand third, opec is sticking to that production cut and venezuelan production could be in more trouble than we think, so that would add to the opec supply reductions finally, iran, the tensions there seem to have cooled a bit for the moment but you never know if they flare up again traders are always watching that the overriding theme here is that that supply/demand rebalance that was predicted happened first a little slower and then faster than anticipated. goldman sachs mentioned this in research note this morning also taking brent up to $63. energy companies will benefit from this, too we saw improved results from shell and conoco we hear from exxon and chevron

tomorrow morning, guys >> thank you very much for that. let's have a look also on some angles on real estate, in particular what people are doing in shopping malls. diana olick joins us with that >> reporter: this mall is owned by pret, a philadelphia-based reit as shoppers move out of the mall and on land, land owners are trying to find ways to get back in, and that means more restaurant, more entertainment and, yes, more gyms. >> people are not just taking up time at the gym here, they're going to the gym, cross-shopping, buying clothes, dining out, doing things that are more than just work out. >> reporter: they're working out and walking into both retail and restaurants. >> i do find myself sometimes just spontaneously going to the mall after i work out because it's convenient and, to be honest, sometimes i'll go to the

mall as a little treat if i have a really good workout. >> reporter: there is no specific data yet showing whether gyms do drive more traffic to other parts of the mall, but corodino says he's seeing it anecdotally. >> that's why he's adding more big name gyms like planet fitness and boutique gyms across the eastern and mid-atlantic if you want to take a look at some of the stocks of these reits, p rchreit and simon properties are down. as interest rates continue to rise, we can expect to see trouble in the reit section overall. >> i know they have their headwinds, but i love that renaissance story. i know you do, too thanks for joining us. diana olick, appreciate it. it is the busiest day of earnings season. up next we'll take a look at where the stocks stand that are poinnit as we close out the trading day. we're back in a couple minutes

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. welcome back to the "closing bell." we'll hear from all of the as today -- amazon, alphabet and apple -- among many others take a look at these prices now

because once earnings are released, everything will be changing the stock could move sharply in either direction based on result apple is expected to come out right at 4:30 p.m. the others closer to the top of the hour, just after the close and as we mentioned earlier, if we can go back to it, amazon has taken a leg lower in the last half an hour or so it was down 1.5%, but most of the session is down over 3%. got close to down 4% we'll maybe see if those earnings are going to be negative perhaps just some profit-taking before the numbers, after a phenomenal run they've had also we'll hear from visa, gopro, amgen and mattel. we'll bring you the numbers as soon as they do, indeed, cross. we'll be right back with the closing down jount it's definitely a new idea, but there's no business track record. well, have you seen her work? no. is it good? good? at cognizant, we're helping today's leading banks make better lending decisions with new sources of data- so, multiply that by her followers,

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your new brother-in-law. you like him. he's one of those guys who always smells good. his 5 o'clock shadow is always at 5 o'clock. you like him. your mom says he's done really well for himself. he has stocks and bonds

your dad wants to go fishing with him. your dad doesn't even like fishing. you like your brother-in-law. but you'd like him better if you made more money than he does. don't get mad at your brother-in-law. get e*trade welcome back to the "closing bell." 90 seconds to the close. the dow is higher now by about 17 points or so. the s&p is lower by 0.2% the nasdaq lower by 0.4% there's the inextra day chart of the dow. what a roller coaster. it's been yo-yo around the flat line in the last hour and at the moment holding onto 24 points of gains. s&p sectors is interest rate sensitive sectors suffering like real estate and utilities. telco is near the top because of

at&t pulling it higher energy prices higher because of oil. goldman sachs benefiting from this pickup in volatility. up 9% since its lows after earnings two weeks ago the bond yield, two-year above 3% just to finish off before we join bob pisani, look at the three big as from the tech world that report any minute amazon is the laggard, down 3.6% slipped in the last half hour. >> i want to point out -- i want to see apple because apple has been used as a funding source. apple's been down for several days in a row. apple is now down for the year of course, we've had nice gains in amazon. we've had nice gains in google overall. the important thing is, i think we might see a little switching around here, maybe into sell on the news on the earnings right now for some of these companies. >> we're seeing some positives, though, in terms of the interest rate sensitive sectors as well

the likes of the financials rising today and benefiting offsetting utilities. >> yes i think the key thing here, it's a very noisy start people are putting a lot of money to work. also people are selling in the middle of the day. >> bob, there's the bell the dow just gaining a bit right at the close, up 40 points ringing the bell at the new york stock exchange, nutrien limited, discovery communications kelly has a massive second hour coming up now. welcome to the "closing bell," everybody i'm kelly evans. looks like we're finishing up with a gain on the dow but it's been an up and down session for the blue chips we were up 150, down about that much the russell 2000 small caps also closing higher, about 0.3 of 1%. the s&p 500 dropping a couple to 2821 today the nasdaq composite down 0.3 of 1% it was lagging all session

closing to 7385 for the nasdaq we'll get some major components. the names in particular reporting after the bell, and josh lipton is standing by to cover results for apple for us, covering those phones. d eir dre bosa and aditi roy we have a sixth spot we have amgen, eric chemi is monitoring gopro and courtney reagan will have earnings from mattel we'll see you guys as they come flying in. joining me now, cnbc senior market reporter michael santoli, and stephanie link on set with us, as well as tony dwyer, and ed lee, managing editor at ricoh. welcome all. leading the dow today was exxonmobil crude oil was moving higher to about $66 a barrel for wti dow dupont with a nearly 3%

drop on the s&p, qorvo was the loser, up 16% again, and tractor supply down 6%. yesterday we had facebook, at&t a big contributor, and tellco. what do you make of the markets today? >> i think there is this push/pull. companies saying good things, estimates higher, cash flows in abundance and that is being offset with the uneasiness of what's going on with rates rates are rising and rising very fast so, we go up, we rally, triple digits, pull back. we have to kind of settle this through with rates to kind of get much higher. >> rates moving higher even in thes last hour or so we're already under way here amgen earnings are out let's go to meg terell. >> it's looked like a mixed fourth quarter adjusted basis coming in at $2.89 versus analyst expectation of $3.03 revenue of $5.8 billion compared with estimate of $5.83 billion

in the quarter amgen giving 2018 guidance, looking for revenue of $28 billion. analysts were looking for the top end of that, $22.8 billion amgen sees $12.60 to $13.70 compared with average. analysts laying out a lot expected from tax incentives they say there will be $6.1 billion charge on a gap basis they took in the fourth quarter. that not included in the adjusted eps results due to corporate tax reform in the u.s. they say their 2018 tax rate will be 14% to 15% on a nongap basis for 2018 they are expecting to invest $3.5 billion in capital expenditures 75% will be in the united states, including, they say, opening a new manufacturing plant. a miss in the fourth quarter but a lot of tax updates back to you. >> amgen down 3.5%

meg, thank you amazon is out. >> q4 revenue coming in at $60.45 billion estimates were for $59.83 billion. that's a beat in a quarter where analysts usually overestimate what am sdwlon can do on sales this is a beat eps we're still trying to get an apples to apples comparison. what i can tell you is that gap eps is $3.75 that includes the tax benefit. we'll continue going through this release and bring you some aws numbers, some physical store numbers and more back over to you for now >> thank you amazon shares are up about 4% right now. that's just retracing the decline they had in about the last hour of the session no clue what was going on there. initially a positive reaction to these results. >> yeah, just so it's obviously gaining back what you just said for today. i think a lot of people were very on the fence about amazon's quarter because the fourth quarter isn't typically a good

one for them, believe it or not. so, i want to see the breakdown on reit, north america retail sales and aws. i'm looking at the guidance for operating income it looks like it's pretty much in line. people were a little nervous that guidance might be on the light side there's that but i want to see the breakdown in terms of what drove the -- what drove the earnings. but it looks good, at least at first blush. >> ed, what do you think >> i agree aws is something i want to take a look at. it's been funding the whole company for quarters and quarters and quarters. i think that's fine, actually. i think you can run amazon retail at a low margin that's how they're winning allow aws to be the profit-maker and then help whole foods with that as well. >> after microsoft last night with their cloud business up 98%, there's the high expectation. >> stiffer competition, exactly. overall we have to start thinking about amazon as a portfolio company. it's a collection of different businesses that have different leavers to it. the smarter way you manage

across those is how you win overall. >> alphabet's earnings are out now. let's get over to aditi roy and see how they're doing. >> hi, kelly shares are down for alphabet about 6.5% right now it was a beat on the top line. revenues of $32.3 billion versus estimate of $31.8 billion. that's a 24% increase year over year however, the number for eps, that was a miss. $9.70 per share adjusted versus $9.88. that might be what's driving the shares down right now. paid clicks up 43% cost per click down 14%. there's also a big section here about the impact of the u.s. tax cuts and jobs act. it's a little bit -- lots there, so we'll dig deeper into that and get that back to you in a little bit. also let's talk a little about the segments google properties revenue comes in at $22.2 billion. segment revenues are $31.9 million. other bets, $409 million

google other revenues, $4.6, includes things like google play, google cloud and hardware. traffic acquisition costs, that's an important metric that investors were looking for total t.a.c., the fees google pays for distribution partners came in at $6.4 billion. we'll dig into this and get back to you. >> aditi, thank you. google shares, alphabet shares, whatever you want to call them, the ticker is still google, down about 5% a couple different things to sift through here. a lot of the individual businesses look like they beat, but the bottom line miss, what do you make of that? >> so, it might be -- it sounds like it's margin because obviously revenue beat the number i will say something that was going on in the last couple of weeks, i think people were selling facebook and buying -- and putting that money into google because if you look at the valuations, they're kind of similar, actually. and there was all that

uneasiness about facebook and changing the news and everything else so, i think you had a little bit of that. so, the flows were a little bit different and the setups were a little different for facebook headed in with low expectations and google high. if it's a margin miss, it's something people aren't going to like that, obviously, because this is a cfo that is very well regarded and it was assumed that she would have a real good handle on margin let's see what they say. let's get more detail. but that's my initial gut. >> ed, go ahead. >> okay. so, i'm looking at actually cost per click down 14% in a quarter year over year i think that's a key number. i think that explains the bottom number a little bit. i think that's positive. the cost per click is going down, that means there's a lot more inventory so people bidding forad space, basically, aren't having to bid as high. that just means, you know what, there's more room for google to grow in terms of the inventory of ads they're selling

once a cost per click starts moderating, that's a bad sign because that means inventory is slowing down. >> i agree with you. i think you want to have a balance so you get pot average to the bottom line doesn't mean the growth story is over it just means that i'd rather they deliver a little bit -- >> you want the -- more predictable financial results. >> exactly. >> so i as an investor know what i'll get for it. >> it's up 12% on the year, right. >> but for a company that doesn't do dividend, that doesn't do -- >> i know. >> it's like you want the top line to win all the time. >> okay. >> it's just making me laugh i'm thinking to myself, i picked a bad day to stop sniffing glue. >> what do you make of the fact - >> listen, they're all great companies and all been great stocks at some point you don't want to chase them as bullish as i am, and i think i'm the highest on the street or close to it -- >> correct for the overall market. >> i think that's going to happen by the end of this year for sure. >> we had facebook sell off yesterday.

alphabet selling off today amazon kind of - >> kelly, they're so extended. if you look at any metric in terms of short-term trading activity, they're extended just like the market, they're due for a pause. corrections are only considered natural and healthy until you get one. what we really want to do, as opposed to last year, we're looking for higher voluntarilitity as monetary uncertainty ticked up and some stocks may disappoint on lofty expectations, you the get pullbacks. you absolutely want to buy that pullback. >> and some turn around after they get through the call. facebook that was the case with. we'll see what happens it's still early hours let's get over to gopro with eric chemi. >> this looks to be a pretty bad miss a 30 cent loss in the past quarter versus an 11 cent loss expectation. pretty big difference there. only $335 million in revenues for the quarter, which is less than the $340 million analysts were expecting that was in the guidance that was already reduced from a number that was close to $500 million just a few weeks ago

that stock, as you can see s they're down 8%. we saw it originally down 11% a couple minutes after hours remember, kelly, this was a stock that was above $10 just a couple of months ago so, it's really taken a big beating in thes last few weeks and we're continuing to see that with the bad earnings today. back to you. >> thank you to your point, gopro there just barely over 5 bucks a share right now. let's bring in mr. mike for his shouts thoughts on some of these earnings as they continue to play out what do you think so far >> kelly, i think you're seeing relatively normal responses across the board to a market that's run, especially the big techs. it's funny, we can quibble over alphabet's numbers and it's totally fair game, given what the stock's done, but a company this size delivering 24% top line growth, i think people have to step back and actually recognize really how remarkable that is in the grand scheme of things marketwide, i think what we're doing is the stock market is trying to make its peace

uneasily with where yields are going. i don't think -- i've been saying there's no magic trigger level to bond yields but in the context of everyday turn of the screw when the yields refuse to kind of ease back, i think it's just one more excuse to take some off as tony's been saying, you know, we were having the recoil from that shot out of the gate we got, up 7.5% in three weeks. so, i don't think there's a lot, necessarily, that you'd look at with this earning season and say, wow, that's really something to worry about over and above what we're already looking at. >> mike, one of the questions that has just come up when amazon was tipping lower at the end of the regular session, when we had the ten-year almost at 2.8%, the 30-year over 3%, are those things going to go in hand in other words, the higher interest rates go, is that going to make these big tech names vulnerable because they're trading at high multiples or, no, you think that effect plays out elsewhere? >> no. there have been times when they've actually acted a little bit like bond substitutes. they're very, very long-term assets, very high multiple -- relatively high multiple stocks.

sure, the discount rate goes up. they're worth a little less. and i do think you end up hav g having, you know, yields going up at a time when other types of stocks, perhaps, can work on a relative basis so, i wouldn't necessarily say amazon, you know, getting that little dip into the bell was because of the 30-year yield getting above 3% or anything like that. but i definitely think that the interplay is a little bit hard to decipher right here and, you know, a market in need of a pause is going to take it to some degree out of the very high capitalization stocks >> amazon a little off its highs. it was up 4% when the earnings crossed. about 2% now we have more on alphabet with morgan brennan >> that's right. as aditi combs through the earnings release, we have another piece of news regarding alphabet that's a change on the board we've got -- we've known that eric schmidt was going to be retiring as chair of the board we now know john hennessey is taking his place he was appointed yesterday he has served as a member of the alphabet board since 2004 and a

lead independent director since april 2007 also worth noting, shirley tillman announced her retirement from the board that will be effective february 15th back over to you >> morgan, thank you very much so, a lot of companies here. we've heard from amazon now. we've heard from alphabet. of course, we'll hear from apple in another 15 minutes' time. stephanie, as we continue to get more granularity, what's jumping out to you >> some of the breakdown of amazon and it looks like aws was up 45% i think anything over 42% people would be happy with. north america sales up 42%, too. so, that actually also was pretty good. i'm just kind of looking through very quickly, but it looks like - >> and maybe this isn't a fair comparison, but in facebook yesterday, it was notable that for their north american -- at least their user growth, that's plateaued. you know, and so here's mazon, which still for north american revenue is putting 42% revenue

growth i know it's not an apples to apples comparison, but it shows they have quite a bit of runway. >> they have quite a bit of runway it's still very, very early stages i think just the expectations where we were all a little uneasy we weren't sure if they could meet the expectation i'm feeling pretty good. the stock's had a nice run year to date. >> yes >> so, i certainly am not chasing it here, but i own it. i'm happy about it the numbers look good. i'm not as happy on the google side i just want to see the operating leverage at the end of the day i want to see a little spend, i want to see a lot of growth and i want to see that translate into a good earnings number and good bottom line this is not a disaster by any means. >> let me get back to amgen. we have more news on that stock. meg? >> that's right. just one more thing to bring you from amgen the company announcing a new $10 billion stock repurchase program. that's in addition to an existing $4.4 billion repurchase program left at the end of the year cumulative more than $14 billion in stock repurchases amgen saying here. stock is still down 4% as they

missed earnings in the fourth quarter and on a flat 2018 revenue projection back to you. >> that's interesting. it's actually been moving to the downside tony, a quick last question -- last comment, a quick one. >> to mike's point, we're in a -- trying to differentiate the stronger economic data making the fed tighter and ratsz go up against lofty expectations these are good -- all the numbers are good the economic numbers, the earnings, they're terrific somewhere in the middle of there we'll find a great entry point for a great run to the end of the year. >> tony, thanks for joining us appreciate it. >> appreciate it. >> ed, we'll see you again when apple crosses in 15 minutes' time you're parting we're parting ways >> i'm leaving out of here. >> it goes so fast that was good stuff. thank you, all. a lot more ahead on the "closing bell. >> announcer: this hour's all about big companies, big earnings and market movers we're all over apple, amazon, alphabet, visa and more as they report numbers the "closi bl"s ckn o nutes. iba i [ click, keyboard clacking ]

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welcome back visa results are out morgan brennan has those results. >> we have a beat on the top and bottom line for the dow component. adjusted earnings per share,

$1.08, 9 cents better than expectations net operating revenue, $4.68 billion, also better than expected payments volume up 10% cross-border volume, up 9% and processed transactions up 12%. now, the company also announcing that they have authorized a new $7.5 billion share repurchase program and they have increased the company's quarterly cash dividend to 21 cents per share alfred kelly, the ceo of visa, noting they've seen strong growth across the board but that in the u.s., momentum accelerated driven by strong holiday spending, e-commerce growth given the recent benefits of the tax cut and jobs act, we are evaluating ways to further invest in our business, our people, our community to digitize payments and contribute to overall economic growth you'll recall earlier this month visa said it was upping its 401(k) match for employees to 10%. shares of visa down fractionally in the after-hours trade back to you. >> it's interesting.

thank you, morgan. visa does a $7.5 billion buyback, it's lower. amgen with a buyback, it's lower. amazon, shares are up 2.5% after better than expected earnings. deirdre bosa with more on the results. >> amazon beating revenue expectations on strong holiday sales. want to point out something jeff bezos says we don't see positive surprises of this magnitude all that often. expect us to double down bezos saying they're going to keep spending. aws, this is one you were watching very closely because it is the profit engine of amazon revenue beating expectations by a little $5.1 billion in sales versus it is $5 billion the street was expecting this united grew by nearly 45% year over year which should make the street happy keep in mind, this is still slower than its competitors in this space, in the cloud space, like microsoft and alphabet.

subscription services, includes prime memberships as well as music and video and other subscriptions. in line with estimates, $3.2 billion. that's up 50% year over year but a slowdown some analysts say membership has hit saturation analysts started breaking this out last quarter after the acquisition of whole foods this is the first full quarter it had whole foods and we're seeing $4.5 billion in revenue t we'll be on the call in a little bit. we're looking for color around the hq2, the aws margins as well as health care plans back over to you >> maybe they'll announce who's getting the hq2 today. i don't think so shares are up 3% thank you. joining us is tom forte and tripp miller thank you for joining us tom, what do you make of it so far? >> thanks for having me on,

kelly. what i see is stronger than expectedle sales for aws i see 50% coming from third-party. i think that could be 75% over time both of those are huge profit drivers for amazon good numbers from amazon >> tripp, what do you think? >> we're very excited to be amazon shareholders this afternoon. it's been a wonderful ride for a long time for us specifically when you look at the earnings they just reported, you know, being up 31% and 38% and year over year and in the quarter, certainly, you know, puts a smile on our face we think the aws business will continue to be a profit-generators for them if it was a separate business alone, it would be the fastest to ever get to $5 billion in refuse n revenue. weal think that's important to the note amazon is continuing to create optionalty with free cash flow in different spaces. this new talk about health care and partnership with jpmorgan

and berkshire could be interesting. some of the smartest people in the world dealing with the health care issue could potentially benefit not only employers and employees, but shareholders we think this is a very good earnings report. >> mike, what are you focused on >> you know, obviously it's really hard to assail anything about the fundamentals in terms of the momentum across these businesses i'm more focused on the field position of the stock and the atmospherics around the company where everyone is putting wins in their columns before they play the game. whether it's raising price targets, you know, to kind of much higher levels on the sell side or the whole drama around the second headquarters or the super bowl, it just feels like they're in your face with how great they are i think it wouldn't be surprising if the stock, just because of the mood of the investor base, takes a break >> tom, we'll give you the last word because you just raised your price target to $1800. >> i did they're the chicago bulls of the dynasty jordan era, my favorite

era. i think the story for amazon was this was the first holiday where they had a significant story base give or take 40 or 60 whole food locations. i think they like having physical stores and they're just getting started in finding new ways to leverage physical stores in grocery and apparel over time >> guys, thank you tom forte, trip miller talking amazon up 3% after hours on that report. let's move on to mattel >> shares of mattel under pressure after hours mattel reporting fourth quarter earnings, reporting a loss of 42 cents. that takes into account 30 cents impact from tax reform still, either way you slice it, that was an unexpected loss. revenues of $1.61 billion, that was also below what analysts were looking for at $1.69 billion. sales of barbie, however, up 9%. we know that's been a struggle fisher-price sales down 12%.

entertainment unit sales up 21%. those are among the bigger revenue generating units for mattel and the ceo is saying they are taking aggressive action to enter this year with a clean slate so that we can reset our economic model and rapidly improve profitability. of course, and profitability was not present at this quarter. shares are down more than 6% back over to you >> that's a point. courtney, thank you very much. she said mattel down 6% right now. alphabet's under pressure, too, after missing earnings estimates. next, is this an opportunity to buy the stock? plus, apple set to release in just a minute or two we'll have instant analysis of the results and guidance coming up stay with me, mr. parker. when a critical patient is far from the hospital, the hospital must come to the patient. stay with me, mr. parker. the at&t network is helping first responders connect with medical teams in near real time... stay with me, mr. parker. ...saving time when it matters most.

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so you'll still be here to help me make smart choices? well, with your finances that is. we had nothing to do with that tie. voya. helping you to and through retirement. gerber kawasaki as well as jason ware from albion financial jason, what are you looking for? >> we expect the holiday quarter to be a pretty good quarter. obviously, iphone units sales are going to be the focus for the street that's nothing new but we think the holiday quarter with ten and with the 8 and 8

plus combined results in a pretty decent print. it's the guidance that matters most >> yeah, for sure. anything, ross, that would make you a seller of apple? >> no, nothing >> all right thank you very much. have a good afternoon. you don't have to worry about these earnings, right? >> no, i -- i'm really excited i think it's going to be a good quarter. >> as you can see, the numbers are just starting to krosh let's get straight to josh lipton with more on apple's results. josh >> kelly, apple reporting eps of $3.89. that is versus expectations of $3.86. revenue up 13% from $88.3 billion versus expectations of $87.28 billion gross margins, 38.4% iphone units, kelly, 77.3 million. remember, the street modeled around 80 million. average selling price, though, $796 the street modeled $756.

ipad units, 13 million max 5.1 million. services up 18% to $8.5 billion. other products, remember, that includes the watch, kelly, $5.5 billion. the guide, the march two revenue guide, apple is guiding between $60 and $62 billion. analysts expected $65 billion. gross margins between 35% and 38%. street was at 39%. i had a chance to speak briefly with tim cook about the quarter. he told me, we sold over 77 million i phoniphones. iphone x was our most popular. it was also the best selling smartphone in the world last quarter, so we could not be more pleased with the reception to it the combination of 8 and 8 plus and x set a new record i asked him about the iphone x, is is it a mainstream product or

with the price tag a premium niche product. he told me you don't become the top selling smartphone in the world by having a niche product. we would like to be for everybody. back to you. >> thank you by the way, josh, can you tell me what that gross margin number was? i'm not sure i caught that >> for the december quarter or march quarter? >> both, i guess, or either one you might have in front of you. >> for december it was 34.8%, the expectation was 33.8%. for march quarter they're guiding 38 to 38.5%. gross expectation was 38.9%. >> thank you, josh we'll let you go josh lipton. apple shares are down just fractionally they had actually sold off about 3%, but they've come back. now they've even turned positive we have ross gerber and ed lee ed, what jumps out to you right away >> the 80 million on the iphone was a pretty big number. 77 million is not bad.

the top line was really good that beat estimates. that's going to tell us something, which they guided for the march quarter. if they're selling more in the december quarter, that just means march is going to be softer i think that's what explained the initial dip. and i think, you know, it's -- it's a big product it's a good product. i think low supply chain reports didn't really sort of, you know, muster out these numbers. >> so, even though the iphone estimate was for $80 million, you think the fear was much lower so they came in at 77? >> and i think it was below the guidance but -- below the expectations but i think it's still a good number. i think it's a strong, healthy number that belies all the supply change concerns we had heard before. >> a couple segments that aren't -- for sure are important but missed relative to expectations ipad estimates a little light, max shipments light. service revenue a little below any of those a big deal to you >> you know, the services business is something we focus

on pretty intently the other two are pretty marginal you know, really, again, it's an iphone company with this long-run path towards services growth services has been growing at about 25% for some time and carries a lot higher margins than the iphone business that's something we pay quite a bit of attention to. that slight miss will require a little digging on our part it's been one of the legs of the stool for our bullish thesis on apple stock. >> ross, what do you have to say about these numbers? >> i guess all that analyst garbage was garbage and they sold a perfectly fine amount of phones we do this every quarter where the analysts are wrong earnings were good they're a little less than i would have liked, but, honestly, you know, they're doing a great job executeding right now. and hopefully as we move into this year further, they have, i think, a clearer path of what the position they're going to take in the future on services because it's clear they're going into video and such. how is that going to be monetized in any way for apple

i think that's the big question moving forward. >> were they wrong, ed the reports especially over the past week that built up a lot of of momentum about how they're are going to halve the production going forward this is backward-looking thing obviously they provided guidance as well. are there two different narratives >> i don't think they're two different narratives i think the supply chain reports are wonky and not good i think they're inaccurate, as ross pointed out it's something you want to look at but don't give too much credence until you see the actual numbers i agree with everyone about the services i think that's a key part of the business going forwards. we know apple, they green lit eight shows, tv shows, that's going to be part of the system we don't know how they're monetized. that's a good question is it part of apple music? is it bundled in do you pay a separate fee? or if you own an apple device you get access to these shows which would be an interesting way of how they look at media. >> we know how they're going to approach it.

they're going to give the shows away and put them on your apple tv and see if people watch them. if they're able to have some success with the shows they're making, they'll continue to make more shows and build this into a service. they're not approaching this in a very aggressive way. typical tim cook he's just tiptoeing in here to see if they can actually make good content there's no monetization path >> let me bring in mike san stolely. mike >> well, first of all, i think the market did a pretty decent job of sniffing out, slightly underwhelming iphone sales stock down 6% in two weeks i think the question now is, is the market going to try to figure out if this is just el elongated replacement cycle or a stock that's trapped in a situation of, okay, what's my next catalyst exactly here without a launch and without necessarily a big holiday quarter? so, no disaster whatsoever stock's going to find its level. i think that's the context in which these numbers are reported >> i didn't know if that was a

him behind you or someone was howling or what was going on. >> that was someone dragging a big cart worth of flatware and stuff. i apologize for that >> it's almost like you're back here at the stock exchange jason, let me it get back to you. so you can address some of these concerns and, you know, again, this is one of those things we're watching the shares down 1.5% after hours. but apple was not a name that ran up into these results. i mean, this is a company i think was down in january when the nasdaq was up 7% or 8%. >> yeah, it's trailed the market, s&p and nasdaq for january. of course, it had a blowout year last year. so, i think a pause and maybe a little bit of a pullback is warranted, particularly going into earnings. i just want to address the services piece of this we're talking about how they'll monetize it and the growth rate and iphone and how all of this fits together. it's important to remember, we're talking a $32 billion run rate in terms of revenue for this piece of their business

as far as that plays into the valuation on apple and what multiple investors are willing to pay for apple, i think there's certainly some head room there for apple to continue to get recognized and get respect from wall street on that part of their business, whereas before for many years they were just being priced purely as a hardware company you add a little software and services valuation component to that and all of a sudden apple rerates at 20 times earnings it's a different story. >> jason, ross, ed, thank you for talking apple. appreciate it. >> thank you. we want to circle back to alphabet now our aditi roy has a little more on those earnings. aditi? >> that's right, kelly i just got off the phone with alphabet cfo and we covered a range of topics including competition with amazon and the company's big bets on youtube and icloud i asked her about wwp's ceo. he was on our air and said he was expanding his company's ad budget by 50% and how she views the competition with amazon. she said the following -- she

said, we're doing a lot to protect the ecosystem, the majority of advertisers -- she said, we know we operate in a competitive market we're focusing on delivering the best experience for users and advertisers. she talked about youtube, the controversy around logan paul. here's what she said on that stoppic. she said we know we're doing a lot to protect the ecosystem, the majority of advertisers never left and those that did came back. and we also followed up and talked about catch repatriation, asked her about that whether or not we can expect to see alphabet follow apple's lead on that. shelle told us the repatriation tax does plrovide a lot of flexibility but that's more of a legal status than a change in investments. i asked her about waymo and the upcoming trial shell said they were excited about the opportunity around waymo. she stalked about an arizona ride-share program she, however, declined to talk

about the upcoming uber/waymo trial. the call is going on right now and we'll give you an update later in the show. back to you. >> aditi, thank you. those alphabet shares down 4%. let's get to dan ives, head of technology research at gbh, along with ali, an equity analyst at morningstar and ed lee at post nine dan, what's with the 4% drop, you think? >> i think if you look at overall expenses, missing the street on the bottom line. i think that's just a knee-jerk reaction similar to what you saw in facebook yesterday if you look at the core underlying growth drivers, on ad growth, on paid clicks, on the underlying fundamentals, what's happened on youtube in terms of engagement and ad growth, we believe this was a very strong quarter that ultimately is a feather in the cap for the bulls. and this really gives positive sort of sentiment going into 2018 on the expense issue, and that's more of an inventory reset that we ultimately think will be a positive, especially as you go

into the second half of 2018 we'd be buyers hear on weakness. >> ali, what about you any weak spots or what jumps out to you overall >> i agree regarding the top line i mean, certainly demonstrated their continued strength in advertising revenues i think it grew by over 20%. it's been doing that consistently the only thing i would look at, i would have -- i'd be worried about a little bit is the traffic acquisition costs or t.a.c. that, again, grew as a percent of advertising revenues. that impacts the margin. overall, i don't -- i'm not really that concerned. i think -- i think some of the impact of the hardware, you're seeing that on the margin, too you know, that's expected in a seasonally -- holiday season fourth quarter >> ed, anything you'd add there? >> other bets, which is a big part of their experimental business, their cloud is folded into part of that -- under google that's doing pretty well compare that to amazon aws, which grew at 45% plus

the cloud business is healthy for all the players right now. i think that's a positive sign it's not necessarily to say they're trying to steal from each other. >> the cloud is still growing. >> i think it means both still have more room to run. >> we have to go. >> i want to clarify one thing >> real quickly. >> it does include consumer hardware >> say that again. i'm sorry. >> other revenues, at it's very positive that it grew at 40%, but we should take into account that it does include consumer hardware so, for example, google home, the chromebooks and so forth overalling, yes, it's positive >> great thank you. again, appreciate it ali, dan ives, i know there's a call to get on, ed lee the shares are still down 4.5%. we'll hit visa and a lot of today's movers after the close when we come back here on the "closing bell.

bell." more earnings movers to tell you about. all moving pretty dramatically to the upside. let's start with athena health a $1.11 adjusted versus estimates of 63 cents. 329 better than expected revenue. the expect says they'll issue guidance at the upcoming summit.

tableau moving higher after a big beat 12 cents adjusted versus expectations of 3 cents. revenue of $249 million, also better than expected saying their cfo tom walker is stepping down permanently. he has plans to take a six-month sabbatical starting in april turning now to deckers, the retailer, the schumakhoe maker, better than expectations, revenue of $110 million. strong full-year guidance as well those shares up 8% more "closing bell" coming up after the break. most etfs only track a benchmark. flexshares etfs are built around the way investors think. with objectives like building capital for the future, managing portfolio risk and liquidity and generating income. that's real etf innovation. flexshares. built by investors, for investors. before investing consider the fund's investment objectives,

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welcome back to "closing bell." i'm julie boorstin in los angeles with breaking news on cbs and viacom both cbs and viacom have -- their boards have formed special committees to evaluate a potential combination. now, both companies, their boards have separately created these committees both of them just issuing separate press releases. both press releases having the samelanguage saying there can be no assurance this process will result in a transaction or on what terms any transaction may occur. they say that neither viacom nor the committee and cbs saying the same, intends to comment further until the process is completed of course, this is not the first time that the redstone empire of media companies has considered recombining. it's been over ten years since they split up. they've discussed recombining in the past

this was something that shari redstone expressed a lot of interest in. it's something i asked cbs ceo les moonves about and he said it would have to be on terms beneficial for cbs shareholders. definitely it will be interesting to see how this plays interesting to see how this plays out. >> it is a key step in all this potentially happening. julia thank you. today's earnings blitz is about more than just tech. visa is kind of a tech company, though we are looking a the shares after payi pal fell on its earnings and on the news it was going to be phased out by visa as part of its payment plan. we have guys here discuss it thank you. there is a lot of earnings on everybody's minds. let's talk about visa. ities it has been a great story of the bull market >> i love the stock long term. we love the stock long term. we prefer mastercard it's in the growth profile

if you look at top line growth for 2018 in top and bottom line, mastercard has better looking sort of growth metrics i would say we prefer that visa is still a great stock. it's going the continue to work. this weakness here after hours i think is probably a good buy on weakness, if you will. i know their expense profile is higher i still like the stock. >> they also announced a $7.5 million buyback. shares didn't bounce on hat. >> they had great earnings, beat numbers, announced a buyback we know the company has done well, it's witness a winner of a stock. surprising it would be this weak in the after hours perhaps it's expenses. not sure again, if you like this name and you like the story here, which there is a lot to like, then you use this opportunity to buy some at these levels. >> all right sense you both agree, we'll leave it right there david siebert and briancaly getting ready for the show

it's "fast money" at the top of the hour at 5:00 p.m. eastern time we are minutes away from the calls for apple, and alphabet. we will have more on this after the eabrk.

welcome back mixed day on wall street the dow hung on the a 37 point gain late in the day the russel was up nearly five points the s&p down two the nasdaq down 25 and interest rates struggled as the ten year yield neared 278% there is the latest move this the ten year, 2.792.

boib also had a tough day. below 9,000. a crypto watcher says arfe not it's set for another big surge we will be back in two oh yeah. no. at cognizant, we're helping today's leading manufacturers make things that think and do automatically. imagine that, a world of new digital products and services all working together for you. can i borrow the car when it's back? get ready, because we're helping leading companies see it- and see it through-with digital. hey ron! they're finally taking down that schwab billboard. oh, not so fast, carl. ♪ oh no. schwab, again? index investing for that low? that's three times less than fidelity... ...and four times less than vanguard. what's next, no minimums? ...no minimums. schwab has lowered the cost of investing again. introducing the lowest cost index funds in the industry

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welcome back to cloib. earlier we talked about guess shares getting hit after that was a post from model kate upton talking about the founder of guess, she was accusing him at least loosely of some kind of sexual misconduct. guess has just put out on 8k noting there have been two previous allegations, one in 2009, and one in 2016 that the company has looked into but has not determined if either has merit. they are aware of miss up ton's post mr. marciano denies any of the allegations but they are also looking into that to see if that has merit. kelly. >> courtney reagan there we are just minutes away from apple and alphabet's earnings calls. amazon starts at 5:30. will at get headlines from each. adeity roy is back josh, let's start with you. >> iphone units coming of the at

77.3 million a bit light versus expectations. analysts were looking at $80 million. but people are paying more for them average sell price is $796 about $40 better than analysts models conservative estimates at 60 to 62 million versus 65 million. >> one of the key things analysts were looking in amazon was the traffic fees that they pay to distribution partners they were above expectations, it could be an care of some concern for some analysts. on the other hand for the first time in the company's history they reported annual revenues of $100 billion deirdre, back to you. >> in the after-hours, amazon shares more than making up for the plunge just before the market closed the quarter driven by record holiday shopping season and

continued growth of its aws grow 45%. kelly back to you. >> i could have kept this going. we could have a string of seven or eight people there. anyway, that does it for cloib with all the earnings calls about to get underway. "fast money" begins right now. faim starts right now live from the nasdaq market site overlooking new york city's times square traders, tim seymour, guy adami and others bitcoin falling below $9,000 for the first time since november. a top crypto watcher says $20,000 is a sure thing. he will be here to explain why he is so excited. first it is the tech earnings super bowl. one of the biggest nights of earnings amazon, alphabet and apple reporting moments ago. amazon soaring the others are under pressure. those conference calls are getting underway we have got full