>> does that make you feel better on a selloff like today, guys >> yeah. >> all right s&p 500 down by 1.3% dow lost their gains for the year, down 1%. we'll follow the action through the next hour. >> "closing bell" starts right now. hi, everybody, welcome to the "closing bell. i'm kelly evans at the new york stock exchange. >> facebook sinking on data coming up. >> i thought it was because you deleted your account. >> not today. >> first though, the dow down 482 at the lows of the session now 2,000 points below january record highs let's get to bob pisani on the floor. >> i'm way over here come on over, vinny.

i know facebook is getting a lot of the blame but we have broader problems than that there's no market leadership and hasn't been for a little while here take a look at material stocks the steel stocks went up on the stair riff issues. look at ak steel, down 4%. that's one issue materials not doing anything industrials aren't doing anything either. remember the industrials were moving up earlier in the year. global economy expanding since this trade war became an issue, caterpillar's gone nowhere. it's down five bucks, 35 points on the dow deer same situation. not doing anything another group i'm worried about, swing around, a lot going on, banks were a big leadership group. look, they've gone nowhere ever since we stopped being worried about inflation a few days ago with cpi and ppi numbers, ten-years stopped going up banks have shown no leadership at all they're not stepping up. then other problems with the energy stocks. look at chevron.

another two bucks, 15 points in the dow. ever since middle of february we dropped. energy stocks never recovered and they lost every modest rally in that particular group you know about tech, i know we're getting concerns about social media, but big tech in general is a mess. ibm, 25 points on the dow with ibm down almost four points. here's what i'm concerned about. it's not just tech there's no leadership in the market we need something to step into the breach the volume is very modest. that sounds surprising how could it be modest, down 400 points nobody's buying the dip so it keeps drifting lower also, nobody's running for the exit there's no sense of panic at all down here. it's a strange situation we need a little leadership right now and we're not getting it from anybody. >> thanks so much for that bertha coombs is at the nasdaq market site with what's moving there. >> everything is moving into the

red as bob mentioned we're seeing a broad decline overall it's large caps, small caps, biotech also coming into play. actually down further than big cap tech but it's very much a big cap tech led and biggest drag is facebook, seeing its biggest one-day decline since the summer since going public in 2012 it's come off the lows but remains in correction territory following those growing concerns about how its data is used by third-party. among areas getting hit hard on the chip stocks. biggest decliners on the day among the nasdaq 100 at the chip indexes are still above technical support levels they are coming off new highs last week. broad com and qualcomm after that deal was in the red today one deal today is pushing at least one chip stock into the green. israel based orbotech being

acquired for $4.3 billion by now we have two in the green, seagate and ross technologies have been the only members of the nasdaq 100 managing to stay above the even mark in the last half hour. the wildest thing is a week ago we were talking about an all-time high close. >> yeah, bertha, absolutely. all 30 stocks in the dow are in the red with caterpillar down 3% joining us more to talk about the tech jason ware from albion financial. thanks for joining us. talk us through what your take is on this selloff this afternoon. clearly facebook is the catalyst is it fair other names are selling off alongside it >> thank you for having me it's a great question. i think we need to put this in context like any market move we see. what's basically selling off today, whether if you look at the semiconductor stock or

f.a.n.g. names, these groups have been doing very well in the market not only the past several months, the past year, three years, five years. they're secular growth names when we get a bit of headline news that shakes investors, we see a little pullback in these names is not something that really scares us much. but i think looking at it again through a different context is look at the market leadership. post-correction, tech was really the only sector that had regained its precorrection highs. a little pullback today but it's off what was mentioned by bertha lastweek recent highs. >> jason, it seems like it's the place everyone wants to hide they say, well, you know, no matter what's going on with the market, i'm going to be safe in f.a.n.g. this is the most overowned biggest part of the market is any of that changing because of what's happened are we at an inflection point? >> we don't see an inflection point. we continue to see strong, secular growth stories

when you look at technology. in particular, you want to talk about the f.a.n.g. names, these are durable businesses, leaders in their respective markets. they have strong free cash flow. they have, like i said, strong leadership position, management teams. valuations are pretty fair if you look at a number of these stocks facebook is trading sub 20 pe. sales are growing 50%. you can say the same with rail fa bet, microsoft, amazon. great businesses unchallenged in their spaces and enjoying strong tailwinds. that thesis hasn't changed for us i think that's why there has been such strong ownership of these stocks for so long. >> what's the bigger risk, consumers listening to these stories and realizing their data is being used in ways they didn't expect and, therefore, ask consumers wishing to leave,

that or government regulation? >> you highlight both are ricks. these platforms are sticky at the end of "power lunch" i heard michelle say, cute puppies, i need to instagram that people still want to be -- >> i guess you didn't hear the announcement that wilf is no longer on facebook, my friend, today. >> i left. i left wasn't enough to keep him. >> there's the 7% dip right there. i am still on instagram. >> still in the eco-system >> there's certainly growth in these platforms. i think the marginal user that leaves is unlikely to change the economics of digital advertising as a whole what we're seeing in survey data are businesses spending on facebook for targeted ads, they're planning increase their spend. regulatory risks could be a real risk that's something that has our

antenna up and we're watching closely because what we saw late '90s, early 2000s, you have regulators coming in on both sides of the atlantic, you could see compression and that's a risk that we're watching >> thank you very much for joining us i have to say, i was never a great candidate for facebook all the ads were about financial trading. >> i think you were a perfect candidate for facebook. >> they didn't monetize my usage many. >> the shares are falling hard after reports that 15 million accounts were mislosed by uk-based cambridge analytica just a few minutes ago cnbc learned facebook hired an auditor to look at cambridge

analytica and wilf has special insight. it is a british company. >> the thing i was going to highlight is this company has been at the forefront and discussed a lot for about a year and a half, since the brexit vote it's not just the people coming to discover it it was linked very closely to the unofficial campaign for leave, leave.eu as opposed to the official campaign, something cambridge analytica denied the focus is on here the couple weeks ago the ceo was in front of parliament at a hearing and answering questions that since has been contradicted by the information we learned since let's have a listen to that hearing two weeks ago. >> does any of the data come from facebook? because i think i read you have said with so many likes, you can almost predict what somebody's going to think about something or, indeed, how somebody might vote. >> we don't work with facebook

data we don't have facebook data. we use facebook as a platform to advertise. >> over the weekend he clarified saying we deleted or facebook tat da at the time we were alerted to controversy of fate book data policies he said, why didn't you disclose this to parliament and he said they didn't ask me that. in the meantime the ft is reporting cambridge analytica trying to shut down a channel 4 documentary due to air some comments that he made recorded by reporters undercover. that brought it all together this company has been in the limelight in the uk for about 18 months clearly some more, perhaps, to come out joining us for more on this story is jason, the ceo of inside.com and marc grossman here on set with us and president of bold streak and technology lawyer. jason, i know you're no fan of

facebook how do you react to this information? i mean, is this more about cambridge analytica, speak more to the problems facebook has or is it that big of a deal at all? zoom thanks for having me. it's a huge deal i think we moved from an existential crisis for facebook to an actual crisis. obviously facebook is known, zuckerberg himself, for moving fast and breaking things and i don't think they considered the downside it's been a great stock to own because they don't care what breaks now we're finding out what might be breaking is democracy and our country and our ability to relate with each other as americans. this is extremely dangerous for facebook obviously, you mentioned regulation as a possible issue and maybe consumers backing off. i doubt that but there are other issues like the ability to buy companies i don't think facebook would be allowed to buy instagram at this moment in time also the talent wars people don't want to go work for a company like facebook that

people perceive is destroying society. and i think it's time for maybe thinking about somebody -- >> jason, this may be splitting the hair a little too much we can come back to what you said, but disrupting society is the big accusation going back to the elections. invading privacy is, perhaps, a different matter that seems to be more what this current episode is about do you think users are more likely to react to this idea that their information has been shared against their liking or do you think it's more important to them that facebook seems to be playing a positive role >> i think consumers like the product, they love instagram it's hard to get off the addiction of social media. i don't think that consumers are going to flee the -- these products tomorrow. they're pretty ingrained it's a great opportunity for an entrepreneur to come and create a competitor to these products

i think at this point if you look at zuckerberg, he's m.i.a when was the last time we heard him talk about this? it's a complete and utter failure of leadership? i think you don't want to own the stock facebook and i think i'm going to officially take them out of the f.a.n.g. today and replace them with a "d "request the and call it the d.a.n.g., but disney in there going forward. i think sheryl sandberg should run the company. she's a better communicator -- >> facebook or disney? >> facebook. that wouldn't be a bad call early. she's a tremendous leader. zuckerberg has done a horrible, horrible job, you know, handling this crisis. he's done an amazing job being a pirate >> mark, what's your reaction, your position as a technology lawyer, what do you think facebook has or hasn't done wrong and your reaction to some of the things jason just said? >> they've done everything wrong but i don't think any of it matters. they followed kompt best practic -- corporate best practices, and had an agreement that said you wouldn't do certain things

you'll self-certify data destruction. none of that happened. it is normal that nothing happened the latest is going to be an audit of this data that's new that's unusual and i think it's only happening now because of the horrific bad press facebook is getting otherwise this will continue to be inte be swept under the carpet. >> has this crossed enough of a line we'll see regulation from the government that will clamp down on all of these stocks moving forward or not? >> not in this environment as it is in the united states. in trump world where everything is about deregulation, no matter how bad this is and this is bad, i don't realistically -- >> i think everything in trump world is the biggest regulation being halted this week >> we look at all the regulation coming off the books, gun control where nothing happens. i think this is another issue where there will be a lot of talk, short memory, short news

cycle and the world moves along. >> i wanted you to hear what jim cramer said earlier, to the point jasonwas making about this not disrupting facebook's business model >> let's go over the numbers two matter revenue up 47% earns per share up 57% it's become a pariah does it deserve to be a pariah are these people tone deaf i think people are genuinely surprised the stock can be down this much on a news story on names they may or may not have shared with russians from an outfit connected to trump. it's like, wow, okay, this is like the russian probe give me something that hurt? what does it have to do with the price of earnings for facebook that's when shares were down less than 5% they're now down 7%. is this that the regulation is bigger than jim and others were citing or why do you think the reaction has been so outsized?

>> i think people have watched this story get worse and worse and worse. i think we'll see a couple more cards turn over that are very bad for facebook i think the reason facebook is not suing the company in question, cambridge analytica, is because they don't want to go into that discovery process and the last couple of times they've done discovery of facebook's misdoings, it's been pretty ugly. >> but to your point, it's not clear that cambridge analytica did anything wrong what would facebook be suing them for >> they're probably in breach of contract as far as discovery, that's a minor issue. they'll have congressional investigations, they'll have parliamentary investigations the only reason they haven't sued them, it's too soon. >> this is part of facebook's business model a couple years ago it opened up the ability to access this personal data to these third-party developers. >> that's why nothing is going to change. regulation, i don't expect it in the united states. yes, there will be more in the eu, more fines in the eu

this is cost benefit analyses. pay the fine and continue. >> eu wants to push back 20% of the market cap. they have nothing to lose but to go after these sorts of companies and political backing to do as well. >> it's a bigger slap on the wrist. i'm not buying in. when you look at equifax, that was worse information, information that was actually meant to be kept secret. what's happened to equifax nothing. do you think facebook when everything is supposed to be public-facing or almost everything is public-facing is going to tank over this issue? i don't think so. >> mark, thank you for joining us jason, thank you very much we have a news alert on president trump with john harwood in washington. >> president trump just finished delivering a speech? new hampshire on his approach to the opioid crisis. he said the opioid prescriptions should be cut by one-third over

the next several years said he would do that by focusing on supply rather than demand he talked -- the profile thing was the death penalty for drug dealers but he also said the justice department was looking at suing drug manufacturers and distributors for their role in this crisis. didn't say exactly what they'd be sued for. said his formal plan says it would pursue unlawful practices by manufacturers and distributors but he clearly included that business component as part of an effort to the reduce the overall levels of prescriptions. >> there's a number of companies not just the manufacturers but any distributor in that ecosystem that could be vuler? able to that thank you, john. john harwood in washington. 40 minutes to go a little more than that. dow about 140 points off the low. >> all dow 30 stocks are lower. the "closing bell" is just getting started.

>> announcer: next up, investigators trying to figure out what happened after an automated uber hits and kills a pedestrian is this more ammunition for those who say automated driving is simply unsafe and what will be the impact on the industry trying to drop the drivers? plus, much more as investors pile out of facebook and other big nasdaq names this is the "closing bell" on cnbc, with kelly evans and wi wilfred frost live from the new york stock exchange. starting with advanced manufacturing that brings big ideas to life. and cutting-edge transportation development to connect those ideas to the world. along with urban redevelopment projects worthy of the world's top talent. all across new york state, we're building the new new york. to grow your business with us in new york state visit esd.ny.gov.

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welcome back to "closing bell." uber halting self-driving test after a fatal accident >> the tempe police department telling us it happened at 10:00 p.m. last night when an uber autonomous vehicle struck and skilled a woman walking across the street uber halting all self hi-driving programs the ntsb is conducting an investigation into the accident. companies from lyft, waymo, gm and ford are also conducting

self-driving tests w waymo self-driving cars are driven up to 4 million on american roads in california where many of those miles have been driven, there have only been under 60 reported accidents since 2014 and many have happened when a human driver and another car bumped into a self-driving car that was stopped or driving at a low speed. guys, this latest accident, far more serious, is believed to be the first pedestrian death from a self-driving car it could have implications for this ndustry, an industry that's whole premise relies on eliminating human error to reduce deaths and costs. we don't know whatcaused last night's accident but it has the ability to damage perception of self-driving cars when lawmakers are grappling with how the technology is deployed and keeping the public safe. >> do we know anything else -- all the information i've seen is a woman in a crosswalk and it happened late last night

do we know anything else about any of the details of quhapd here >> we don't know any details yet. they're investigating it remember, these self-driving cars have so many sensors on them they're collecting so much information that we should at least in the past, know what caused it, a human error or autonomous vehicle car most of the times it's human error, like a person in another car or the driver in that car taking control and causing that accident. >> thank you, deirdre. ed lee is on set for a little more her point is right that the reaction to this will depend on if in some way that pedestrian was culpable or purely blamed on uber. >> we're at a time period where lawmakers generally are looking at all kinds of tech companies, new tech in terms of is it being regulated properly, should we do more facebook has been hitting the

markets today based on what happened with their data in this case, as depoint out, we don't know what happened a pedestrian always has the right of way whatever the accident may have been, the car is ultimately at fault. whether it was a driver error in terms of the operator, the safety operator -- >> is that true? what do you think, is the pedestrian, do very always have the right of way we feel that way - >> we feel that way. that's the thing >> when people are concerned or afraid of a new technology, the tech company, in this case, uber has to be that much safer with everything the public perception is going to be super ski. one thing we found, we did a report on this a few months back, for all the autonomous miles uber has driven, a safety driver has had to take over the wheel every 0.8 miles. it's not that great but it's still early days i think it's better to test it, to see as many real world

conditions to get as much data as you can. >> remind us how important self-driving technology is to the future of uber they need to get to this point at some point. >> this isn't just some tech experiment it underpins the future of uber's business. due to pricing wars, like uber loses money on a lot of their rides. if you have an autonomous vehicle, you don't have to pay them the driver, give them the 75% cut of the fare. you take the full fare and also own the car. the car runs 24/7. it can run all the time, pick up multiple passengers -- >> it's the holy grail if it works. >> real quickly? >> i think also this goes beyond uber waymo has racked up 4 million miles, twice as many as uber, and they've been in accidents, none this serious. for this technology to be better, it has to be tested on public roads whether or not this is going to be a setback uber has had some of the highest

profile accidents, caught on video when it ran a red light or when a car flipped over. not necessarily due to the technology, but, perhaps, humans again, it just changes public perception could make it harder to get these vehicles to market >> that's a great point. i think there's been more scrutiny over a company like uber because of the way its managed. with a new ceo in place, i think he's presented a more faithful, more professional kind of leadership and i think that speaks volumes about how they're managing their business. >> ed, dee, thank you very much to both of you. more breaking news on the facebook data scandal and julia joins us with those details. >> uk data from cambridge analytica issuing a statement saying it strongly denies the claims made by "the new york times," the guardian and channel 4 news those are claims that cambridge analytica had illegally accessed data from 50 million facebook users. cambridge analytica saying, quote, the company's detailed responses to their questions

ahead of publication were largely ignored in subsequent reporting. the a founder left in 2014 and misrepresenting himself and the company throughout his comments. the company goes on to say, in 2014 we received facebook data and derivatives from another company, gsr, we engaged in good faith to legally supply data for research after it was subsequently known gsr had broken its contract with cambridge analytica because it did not adhere to data protection regulation, cambridge analytica deleted all facebook data in cooperation with facebook they said this data was not used by cambridge analytica as part of the services it provided to the donald trump presidential campaign, personality-targeted advertising was not carried out for this client either the company has made this clear since 2016 they go on to say they work with commercial brands and mainstream political parties in democrat elections and they did not work on the brexit referendum in the

uk what's notable is they're blaming the app developer, gsr, who sold the data to them saying cambridge analytica was working in good faith but it was gsr that broke the rules and they did comply with facebook so pointing fingers at the app developers saying there has been miscommunication by the mainstream press back over to you >> julia, thank you for that ed lee still on set with us. your reaction to that, particularly as it relates back to facebook. again, we know facebook was aware this data, whether it was gsr's fault, cambridge analytica's fault, they've only reacted once it's become public. >> this was something delved into by reporters. it's not as if facebook had some automated system or api or software discovered this is and they were trying to correct it reporters reached out and said, hey, we're seeing this data was misused. even cambridge analytica is saying, it's not our fault it was this third-party that misused the data and we since deleted it what it speaks to is clearly

facebook does not have a systematic set of rules or procedures in place. you have to wonder how many other -- >> shares, by the way, are not off their lows despite that statement, facebook down 7.3%. investors are showing no sign this clarification makes them feel any more comfortable about the developments. >> this reaction we saw in terms of the news they're going to audit cambridge analytica to see if they actually deleted all this stuff again, that's not a systematic fix. that's reacting to one specific instance the risk here, the downside risk is, well, you can't manage your data this is not just abstract pieces of information this is people's personal data if you can't fix that, congress might step in and say, we have to put labels on this or monitor how you actually manage this stuff. i think no one likes that. no one wants a business to be regulated by government. it hampers their ability to do things. >> do you think we'll see

reaction from the eu quicker - >> yeah, in eu, privacy laws are much more strict and stringent they take it seriously they've started doing it with google they'll take a closer look with facebook u.s. congress might take a look and say, hey, that's not a bad idea we should adopt some of those same measures. sort of the political will around tech in general but facebook in particular, the tide is against them. so that's the thing that mark zuckerberg has to react to. >> you know in europe there's always an element of, i don't want to say jealously, but these are american companies -- there's been a lot of naval-gazing about where are europe's big tech platforms this time around? so, the fact it would be -- we've actually had people argue the u.s. should not be too tough on these companies because - >> the playing field is against them in europe i think that's a fair point. at the same time, culturally speaking in europe, privacy is a much bigger deal. >> clear regulations coming one way or another >> julia, final thought from you? >> well, i want to point out

facebook shares down 7.5%, the market's reaction today, to this facebook news is notably different than other bad headlines we've heard about facebook for the past year there were negative headlines about mismeasurement questions facebook shrugged is that off and continued to grow its ad revenue. there's been a slew of headlines about the role facebook played in the 2016 presidential election we saw the stock continue to decline -- i'm sorry, continue to grow and make gains despite those negative headlines i think the declines we're seeing today mark a notable shift in the way investors and consumers may be seeing the sum of all these negative headlines and today's news, the weekend's news in particular. >> thank you very much julia boorstin and ed lee on set. back to your question one, which is right, the u.s. has

out-innovated everyone, apart from which country china. how did china achieve that protectionism by not allowing facebook to operate there. it's an interesting side topic. >> not exactly - >> europe's been completely left behind as has the rest of the world, apart from china. other headlines today. sue herera is joining us. >> thank you here is what's happening at this hour the first lawsuit was filed today in connection with last week's deadly bridge collapse in miami. it was filed on behalf of a victim who was injured in the collapse who was riding his bicycle under that bridge and struck by a vehicle veering out of the way >> i know there is a public outcry right now for accountability for those who might be responsible and we'll do everything in our power to hold any entity that might be

responsible for these accountable. two trains collided in kentucky norfolk southern says one train suddenly stopped that caused the second train to hit it that caused a fire evacuation order was issued and four crew members were injured. a judge is pushing back the start of bill cosby's sexual assault retrial to march 29th after initially rejecting demands from cosby's lawyers for a three-month delay. the judge ruled up to five additional accusers could testify. you're up to date. that's the news update 25 minutes from the closing bell you know what they say about the early bird...

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welcome back about 25 minutes to go let's talk about all this with our "closing bell" exchange. joining us are jonathan from cedar street asset management, cnbc contributor peter costa and our own rick santelli at the cme in chicago welcome to you all peter, what do you think of the market action today and how much is it keyed off by facebook down by 7%? >> i think it's mostly facebook. once you have one huge tech individual stock stumble, they all do this is what we're seeing. we're seeing an overall exodus from the tech sector for the time being i think that a lot of times you look at moves like this and say, well, there has to be a buying opportunity at some point.

it is tech sector it's a little different. have you to be cautious to step back until a lot of the dust has settled. i don't think we've seen everything we're going to see. >> it's mostly facebook as the catalyst but we've seen yields pull back today. >> yeah, but, you know, they did pull back. we traded at low as 283 yield in tens it's back at 2.85. actually up one basis point on the day, wilf, it looks to be the 17th day we'll have a settlement in the 2.80s. i find it fascinating as follows -- if i would have told you that we would have many days where we're down 2 to 500 in stocks, the dow jones specifically, and interest rates really avoid dropping on that and sticking down and, i think that's very fascinating. but i do think the fed meeting coming up over the next two days is also part of that reason but all things being equal, we could debate as to why markets are

down in equities, primarily i think just as peerd said, i would agree with that. trade issues can disappear they don't always end up the way markets fear the most. when it comes to something like the issue of facebook and tech, that's a reality i'm very impressed with the entire fixed income curve today with respect to how well it's holding up meaning not giving way to lower yields. >> for people who feel bushd by facebook and want new places to look there this market, do you have a couple ideas? >> i think for us, what we see here is certainly over the weekend and heading into monday, you know, increased escalation in the tariff discussion as the under-secretary for international affairs last night and into this morning discussed slowing down negotiations with china in terms of formal economic discussions and i think that plays a role into the concerns about the current market

so, our view in terms of looking at opportunities is to be very valuation-disciplined, to look for companies that have overall exposure to some of these issues on trade where they can come out as beneficiaries. >> such as a couple names >> the two names we like that we think people should take a look at are both low valuation names. the first is fabernet listed on u.s. stock exchange which is a contract manufacturer in the optical space trading a very low multiples and exposed to tech trends that are very favorable going forward. then we like environmental plays, golar lng is another attractive name, in our view. >> thank you jonathan, peter, rick with big and small ways to navigate thank you very much. 20 minutes to go we're watching the dow down about 400 points and continuing to follow the facebook fallout

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17 minutes go to to the close. the nasdaq is down over 2% the dow and s&p down over 1.5% tech very much the laggard today, very much because of facebook. still to come, avenue capital's co-founder tells us what he thinks is the biggest risk to thesmaet 'sotacebook. stay with us ithic view of emerging markets obsolete? at pgim, we see alpa in the trends, driving specific sectors of out performance. where a rising middle class powers a booming auto industry. a leap into the digital era draws youthful populations to mobile banking and e-commerce. trade and travel surge between emerging markets. everyday our 1,100 investment professionals around the world search out opportunities for alpha. partner with pgim, the global investment management businesses of prudential. ...with its high-tech cameras and radar... ...contemporary cockpit...

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welcome back to "closing bell." we're getting some breaking news from puerto rico's electric power authority, known as prepa, suffering a cyber attack late last night according to the agency the agency is working to solve the situation according to a twitter post in spanish we have translated into english. they note personal information from users of prepa has not been compromised but that the waiting time at the customer service center could take longer than normal this is -- pre a is providing electricity to the island of puerto rico which suffered tremendous outages since the hurricane so this could affect people as they try and get those issues resolved. back over to you

>> thank you very much for that. let's check in on the f.a.n.g. stocks. they've been front and center and facebook is down 7% or so, dragging down the rest of the sector google down 3% amazon and netflix down 2% joining us for more on the tech slide is paul meeks. very good afternoon to you what is your tad on facebook and the kind of crucial levels that it needs to trade around today in order for you to be positive on the stock >> so, i'm positive on facebook longer term. i know there has been some discussion about both google and facebook losing some u.s. and global digital advertising share to the likes of snap and twitter. i think over time even though the two giants will lose some share, they're still going to have the bulk of it. so, i like facebook a lot. facebook with today's action has

dipped down to at the close about its 200-day moving average. if we don't hold there, i actually think in the short term there could be some technical downside to the stock, but if you're true long-term investor, i think it's a good time to buy facebook as far as the rest of the f.a.n.g.s,s, i like them all the only one i don't own for clients is netflix but the others are not as deeply oversold as facebook >>. >> this seems to be one of the most overowned parts of the bull market the regulatory risk certainly for facebook and google is too high what happens if the ownership starts to change here, if people start jumping out? >> well, that could be a problem and the stock has done so well for so long that i'm sure a number of investors, whether retail or institutional are

there to rent not to own that's why i probably would hold off particularly for someone who is worried about short-term losses until we see stability around the 200-day moving average for facebook. >> you mentioned you're confident facebook is able to pivot when it's found problems in the past and moved forward and monetized its expertise in other areas. is this a moment it's now going to have to do this is this a watershed moment in facebook's life it's going to have to change its business model? >> i don't think they have to change the business model. the risk is mostly regulatory. the business model may not change but it may be more expensive to run the company >> wow >> and in the meantime, you know, a lot of people don't realize how strong this management team is one of the greatest pivots of all time happened right around their offering in the spring of 2012 when they had to pivot from

desktop to smartphone. and i think that the management team is very strong. i think that they are taking these issues seriously i think that they will have to pay more to be more sensitive to privacy, not just the united states but around the world. but they're still going to dominate digital advertising and i would buy the stock on dips. >> paul, thank you very much paul meeks joining us with facebook shares down a little less than 7%. nine minutes to go art cashin just swung by and said we had a billion to sell on the bell but a lot has been canceled you can see we've come off the lows down about 378 the nasdaq down about 2.5%. up next, capital co-founder michael lasry tells us what he thinks are the biggest risk to the market let's begin.

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i think the biggest risk is in democrats take control of the house. if they do, then what you're going to have is constant

investigations and i don't daik i think what the market wants is a little bit of stability and they're not going to have that at all. and then the question is, what's going to happen with that? so, i think that will end up being negative for the market. >> marc lasry there. i can completely see what he's saying on that investigation front politicswise but you could argue tax reform has been done most of the appointments that would lead to deregulation should have been done and could a democratic house make infrastructure spend more likely quite possible. >> not to mention that gridlock can be good a lot of times it's a fine line to the point about how much people are focused on this, art cashin was saying earlier, the traders around here are all keyed up why do you want to be long this market when you don't know what the next tweet could be? certainly any investigations could ramp up from that. we've had massive uncertainty the whole time that the market's been rallying since his election. >> marc lasry, has raised a lot of money for democrats the other thing that's interesting is that debate about

protectionism. we've seen some further left-leaning candidates, bernie sanders of this world, being relatively supportive of that, too. you can see areas where the president would -- >> the joke is he would be a better democratic president. if that was the way congress went if they are looking to impeach him, maybe not so much anyhow - >> we're off the lows. up nt, wreexe' back with the closing countdown. let's begin.

yes or no? do you want the same tools and seamless experience across web and tablet? do you want $4.95 commissions for stocks, $0.50 options contracts? $1.50 futures contracts? what about a dedicated service team of trading specialists? did you say yes? good, then it's time for power e*trade. the platform, price and service that gives you the edge you need. looks like we have a couple seconds left. let's do some card twirling twirling cards e*trade. the original place to invest online.

welcome back to the "closing bell." breaking news. there has been much speculation about where saudi aramco, and expected to list only on the saudi stock exchange next year basically that would be a smaller ipo than what the street was expecting. they are not expected to have news on that ipo during the prince's upcoming visit to the united states. they say awe -- dow jones says it would give aramco a smaller valuation. we're working on whether or noted this might preclude a u.s. ipo or whether that would be coming further down the road that's the part of the story we're still working on back to you. >> thanks very much. big blow to the new york stock

exchange if they're not listing. >> i think legal issues in the united states. >> more on that coming up in the next hour. that is the bell we're well off the lows. three points down -- 330 points down on the dow. ringing the bell, microchip technology and aarons. still a very heavily negative day all in all down 1.5% or so for the nasdaq a little better than that for the s&p and dow. kelly has the second hour. >>. >> thank you welcome to the "closing bell." i'm kelly evans. dow dropping 334 on the bell much better than we were at the lows of the session. still a drop of more than 1.3% how about the nasdaq, down just under 2% today the s&p 500 shed 39 points to

close at 2712. the dow closed at 24,611 russell 2000 small chips down to close at 1570. during the session today, dow was negative on the year s&p holding onto 1% gain we have given back a lot of that ground from early january with those strong markets let's get to bob pisani, here on the floor with some of today's big movers. >> a lot of cross-currents, a lot of complications a lot of this started with facebook let's put up social media. this may be a watershed day for social media not just facebook but pan doria, groupon, google, anything in social need yeah potential good as well as potential harm that you can give up your privacy for a lot of this this broader issue is going on besides social immediaty take a look at energy stock. rough day again. energy never recovered from the

february lows we hit the service names like halliburton were weak and weak today. material stocks, mining stocks, steel stocks popped in mid-february on those issues with tariffs, ak steel, all those big names have been coming back down to earth banks were leadership but bank stocks stopped going up and big names and the regional names hit 52-week highs and slowly coming off their highs in the last few days industrials including railroads, they started very strong but they have had problems on the global tariff concerns caterpillar, deere and csx to the downside you heard wilf and i talking

about these headlines coming out that aramco will apparently only be listed on saudi arabian stock exchange this will be a big blow if confirmed for the new york stock exchange with along with the london stock exchange, very actively pursued saudi arabia and aramco to list down here there were many issues principally among them, concerns of possible legal issues around 9/11 that may have been a factor. we don't have any confirmation of that. you heard the early story from sue herera they'll be listing only in saudi arabia try to get you more on that later on >> bob pa sisani, thank you >> we have a statement from basically a u.s. representative here in the u.s. that says, quote, the company continues to review opportunities for the listing, in addition to listing on the saudi arabian exchange, the home exchange, a range of international options are still

held under active review the company will not provide a running commentary on the course of the ipo it leaves the door open but they won't do a running commentary on the ipo. that's the statement on from the u.s. representative here kelly, back to you >> sue, thank you. let's kick this around with the panel. mike santoli is here, our senior markets commentator. rob cox, global editor at reuters breaking views and keith betterleson. mike, to you on the saudi news before we get to everything else that's happening today, they don't have the liquidity to handle this listing alone in that market. >> no. i wonder -- not the full capital raise you think they would need to meet what we thought were their needs in terms of monetizing this asset. you wonder -- >> they shrunk the offering quite a bit perhaps they could. >> that gets you a listing -- global investors could

participate, in theory, but i don't know that it gets them where the saudis want them the bullish talk for crude oil, saudis want to make sure it's up there above 65 to do this ipo. >> journalists saying saudi wants 70 what do you think the significance is here by the way, while the u.s. and london were vying for this listing, china was happy to come in and provide some loans as well >> actually, when we did our predictions book and you had me on, thankfully, i talked about how i thought they were going to go to hong kong because you have the legal issues, the jasta terrorism act effectively makes it very difficult for them to list in the united states, even though that probably be the best place for valuation, liquidity london has a bunch of problems they haven't passed a bunch of changes to their premium listing rules, which would actually accommodate the aramco listing china has gone and completely bent over backwards to change

its rules. you have the back door from china. there were a whole bunch of arguments as to why they couldn't have gotten a premium valuation. look, this is -- you knew they were going to do their listing >> sure, the home market. >> see where you can go. everyone knows $2 trillion valuation for this company with oil anywhere near where it is just -- it's a pipe dream. >> chris, real quickly, would you invest in saudi aramco as things currently stand >> not on the saudi exchange, but in the fullness of time they'll have all the global listings some news you should be skeptical about, and that's one bit of it. >> as we know, mohammed bin salman a two-week tour of the u.s. as they make investments in endeavor but it looks like they're going to try to go alone for the time being let's get to oracle, the big

earnings after the bell. josh lipton has the numbers for us now. >> oracle reporting eps of 83 cents versus expectation of 72 cents. revenue, 9.$9.78 billion in lin with what the street was looking for. cloud revenue up 32% to 1.6 billion, also in line with what analysts modeled within that software and services up 33% to 1.2 billion platform as service and infrastructure as service combined, those revenues up 28% to $415 million. just quickly here, it looks like new software licenses, $1.4 billion. software license updates and product support, that clocks in at $5 billion. total on-premise software revenues looks like $6.4 billion. the conference call starting at 5:00 p.m. eastern and we'll be on it. back to you. >> josh, thank you also be sure to catch an exclusive interview with oracle

ceo mark hurd on "squawk alley." your thoughts? >> it looks generally as expected and i don't know if that gets you a whole lot. the stock jumped up to this level around nine months ago and been riding its way side ways. i think it's on track in terms of transformation of the company. >> chris, you excited? >> not at all. i think they needed a monster quarter to have a big move i would also say the much better play with using ibm in the cloud. they're in the enterprise cloud side of it and i think that's where we'll see more continued growth at a much higher level for companies and not so much the public cloud >> you're willing to go there. you like ibm, chris. you know, you're going out on a limb a little bit these days >> well, 11 times next year's earnings, cheaper than anybody else it's the last one of the old

2000 intel, microsoft, oracle, cisco, to have any type of recognition. i think they're due. and gene has done a great job turning the company around after 22 bad quarters. i think now is the time. it's understand underowned and unloved. >> as they say, that's when you should be buying when everyone else is selling. oracle down about 2% right now keep an eye on both of them. how about shares of facebook, the biggy today, haven't seen a drop like this for this company in a while. nearly 7% lower on the bell after it was revealed a political intelligence firm accessed personal data of millions of users without their permission julia boorstin has the latest. >> lawmakers in the u.s. and uk are calling for mark zuckerberg to testify, raising the spectre of regulation and the eu is investigating facebook's potential privacy violations facebook's latest responsible, it just announced it's hiring a digital forensic firm to audit cambridge analytica and its

claim it deleted the data on 50 million facebook users a year after it had purchased that data, deleting them in 2015. facebook saying, quote, if this data still exists it would be a grave violation of facebook's policies and unacceptable violation of trust and the commitment these groups made we are moving aggressively to determine the accuracy of these claims we remain committed to vigorously enforcing our policies to protect people's information. cambridge analytica just issued a statement denying claims made by "the new york times," "guardian" and channel 4 news in the uk saying it purchased data from an app developer, gsr, which is engaged with in good faith. saying it discovered gsr had not adhered to data protection regulation, it worked with facebook to delete all that data this weekend's report say the data is still out there and note facebook failed to alert consumers whose data was harvested. now regulators are looking at how this could impact facebook's

ad revenue. >> thank you very much the shares are down nearly 7% during the session by the way, it took down pretty much all the nasdaq with it. the qqq power shares, all the f.a.n.g. stocks closed lower after the latest fallout cambridge analytica took more than 50 million users' data from facebook before the 2016 election without their permission look, google is down 13% they're seen as the other target if more regulation is coming down the pike. we had politicians talking about it do users themselves care >> i think users are starting to care but i don't even think that's why the stocks are down i think it punctured the confidence of a lot of growth investors who felt like these were one-decision stocks i don't think they were driving the entire market but there was confident these tech platforms will dominate for a long period of time and they just magically kind of print money. they don't have to be managed.

it was network effects equals ad dollars. all the stocks that had a lot of air under them got hit the hardest. at it did pick up a little bit we had some dip buying on the close. >> e-marketer ha coincidentally gets to those fears saying ad dollars are declining to 4%. >> look i think this is a moment where people are going to recognize that they -- that facebook truly has many achilles heels, not just one. they don't just have a problem with a platform that can be gamed. that's where people say, well, facebook can be so easily gamed. it's actually their response to it it's the way they've dealt with it it's the sort of lack of credibility from the management. then you think, my gosh, if this

were equifax, we'd -- well, we'd see the ceo resign, as he did. this company, i'm not sure -- there's no pressure because zuckerberg owns the company. they've got three classes of stock. investors have been supine and let them run the company through the growth phase but now you're at the point where maybe we need, as ten years ago, we needed sheryl sandberg to come and help the kid with the startup. now maybe the kid needs help with a giant corporation. >> people have suggested -- they might just be in way over their heads at this point. does it take a leadership change to sort this all out or -- >> i think it does i just don't think you're going to get it because of the governance. >> they have pretty much a lockhold on that company we also have news on blackberry. kate rogers, what's going on there? >> blackberry and microsoft announcing a strategic partnership they say is going to empower the mobile workforce

offering enter surprise solution that will integrate blackberry's expertise and microsoft's cloud and productivity software. microsoft apps will be available within blackberry dynamics called blackberry enter surprise bridge those two companies working together blackberry getting a 5% pop on that news. >> chris, before you go, you like blackberry or microsoft or both or neither? >> i would say probably neither. microsoft has had its run. it's still certainly part of, you know, if you're holding spdrs, i think you sell them when you can, not when you have to. >> words to live by. thank you very much. wall street's volatility gauge, the vix, was up today it was over 21.5 at one point, just under 20 right now. hit its highest level since march 7th.

what does this volatility pop say to you on a selloff day like this >> interesting to see a pop here i think there is a lot of nervousness in this market, particularly day is a classic countertrend day where all the things that had been working were down the most the things that really had not been working were down the least, or in some cases up i think going into this week's fed meeting, there is some nervousne nervousness. maybe talk of a fourth rate hike people are asking, do i want to be long in these names going into that. i think that is leading to this selloff we see in tech and that increase in volatility >> big question. obviously, it's whether this actually marks a shift that's going to last or if it's just kind of a reflex or a head fake. do you think we could finally be seeing some rotation ought of these big growth names which have basically outperformed for

years now? >> a lot of people have called this for a while, but i think this is -- it's different this time i'll tell you why. last week there were two things that happened on tuesday one was the president's call for tariffs. and also we saw the dissolution of the broadcom and qualcomm merger i think this is a bigger deal than people realize because this really is the foundation of the post cold war economy seeing -- led by tech, led by markets liberalization this is the first time in a long time that's being called into question with news today about facebook, i'm sure they'll be dragged up on capitol hill. the management seems tone deaf these are big issues this could be the beginning of a long-term turn away from this tech and towards defensive sectors. >> if that happens, let's say it plays out from there and maybe

the fed gives us reason to stay off-balance, there's not enough defensive type in the market we have a top-heavy market with tech and with other growth sectors on the top does that mean the overall market is probably in for a rougher ride >> yeah, i definitely think so we're about midway between the january high and february low. i think it's very likely we'll go back and test the 200-day i wouldn't be so quick to dismiss some stock-picking areas. i'm a stock picker exx exxon, that's over 4%. look, today stocks i own in my fund, hormel was up today, smucker, they're up today. there are good names out there if you're willing to look for them there is some value out there. >> some good ideas thank you very much. >> thank you >> canned ham and peanut butter, that's defensive.

>> i'm on board with the peanut butter trade. still a lot more to come today on the "closing bell." >> announcer: straight ahead, much more on a self-driving uber that hit and killed a pedestrian plus, will new privacy problems for facebook make americans rethink how they use the social media network? and we're just learning about a new invitation for tech titans mark zuckerberg, larry page and jack dorsey to come answer questions in washington. will they stiff the american government again this is the "closing bell" on cnbc, with kelly evans live from the w rkto ehae.neyo sckxcng you always pay

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welcome back to the "closing bell." facebook's privacy scandal weighing heavily on its shares and the whole tech sector. we hit the streets of new york city to find out whether these new privacy concerns are enough for users to get off facebook. >> i think that will use

facebook a little less now. >> i essentially have an expectation that whatever i put on facebook is available for every advertiser in america. to me personally, i just don't think that's terribly concerning. >> i'm just going to try to get off the grid >> i think everyone has my data. like, it's all out there so, i'm not so concerned >> if you're using facebook, you're probably going to, you know, expect some of your privacy to be compromised. >> i use it a lot. i've heard of that stuff in the past with target and whatnot i think i'll still use facebook every day like i have in the past. >> i think facebook executives should be held accountable. >> all the social media companies like facebook, twitter, google, need to be put in check a little more today given the prevalence of hacking and things like that >> joining us to discuss, cnbc.com editorial matt along with justin hendrix on set with us, director of nyse media lab and co-founder of

regulatesocialmedia.org. so, i think we know where you're coming from. does this new chaptersay something new to you about facebook or do you think it will be new to most of users or as these people say, they're used to is it. >> i think this latest breach has -- it's caused a lot of people to wake up and realize what's going on. the technology companies do need some checks in place there's an enormous amount of power in silicon valley. there's no regulation at the moment that holds them to account for these type of problems. >> what would you define the problem as >> you take the enormous amount of personal information that we all volunteer and you put it onto these technology platforms, there are certain things we need to know. one, it's being handled appropriately and that our privacy and confidentiality is being respected. two, that it's being used for reasons that we understand

in this case with the cambridge analytica scandal we're seeing unfold, it appears it wasn't used in a way that even the original users who signed up for the app suggested it was. >> matt, you had a piece where you suggest this is the biggest test yet for facebook and its lack of leadership is the core problem which we heard one of the women interviewed say she thinks executives need to be held accountable what kind of change at the top are you talking about and what kind of difference should it make >> i think that a true leader admits mistakes, apologizes completely and then takes responsibility by keeping skin in the game. and what we see with facebook is every single time one of these things happens, they dodge, they evade, they try to downplay the size of the problem. with the latest problem you had executives on twitter, ironically, saying, this isn't a breach this isn't data stolen the data was used in a way that was intended which in some ways makes it worse

meanwhile, you have mark zuckerberg, who's told investors he's going to sell $13 billion worth of shares over the next 18 months i think you add all this up and it definitely looks like a company that doesn't have sufficient leadership to deal with what it has to deal with. >> it seems to me it's always knit back to the original conception of what facebook was to be, and they wanted to be this neutral tool, this utility that can be used by advertisers, this magical match-making tool out there for social network willing. what would you say is the actual pragmatic solution here? do they have to have the same kind of obligations has a bank has not to surrender your data >> one is transparency to government and to independent auditors that could include researchers people need to know what's going on in the black box. we need to get into the systems and understand what's happening

and understand when breaches like this occur, how far do they go number two, transparency to individuals. we should have the right to know facebook should have to notify us when these type of things happen when a massive state-run propaganda enterprise takes place on facebook, we should be informed of that, right? and the third thing is, i think they should clean up the mess. we have to think about what the responsibility of these technology companies is to support independent media and journalism and help us with media lit racy problems. there's a lot these companies with do. facebook's got the market cap of something close to exxonmobil. you all could tell me. there's no company at that scale that doesn't produce pollution >> on that note, uk broadcaster channel 4 released part of of an undercover investigation into cambridge analytica. wilf is back with more on what they are able to disclose. >> channel 4 decided to air

about 20 minutes of their investigation into cambridge analytica tonight. that's aired in about the last half hour with the time difference here is the chief executive of cambridge analytica being secretly filmed by this channel 4 documentary. >> we can set up fake ids and websit websites we can be tourists, so many options. we have some experience with this >> talking there of what appear to be relatively underhand ways of how they could help clients influence elections. the 20-minute clip that aired about half an hour ago seem to imply quite a few different examples of that we should say cambridge analytica has come out with a

statement tonight saying, quote, we entirely refute any allegation that cambridge analytica or any of its affiliates used entrapment for any purpose whatsoever they go on to say, cambridge analytica does not use untrue material for any purpose those recordings, of course, grabbing a lot of headlines in the uk as i'm sure they will around the rest of the world over the coaxurse of the next 1 hours. >> thank you it just occurs to me that if you want to say cambridge is being shady and they shouldn't have done this, nothing they did -- you know, facebook was aware they opened this platform for third-party users like them to get mine or any other user's social graph who are we to hold to account for what's happened? >> i think that's the whole point. facebook users have realized that when they're posting on facebook, it's like writing your

life story on a piece of paper and putting it on a lamp post. facebook has guidelines. these guidelines were violated in this particular case and facebook made cambridge analytica sign a certification saying we didn't use this data, we deleted it. the point is, when you post on facebook, not even nas book necessarily can control where that data you control is going to end up or how it's going to be used. i think users are starting to become aware of that >> yeah. certainly the users we spoke to. plenty of them seemed quite aware of it. for all the regulatory response we talk about the individual response by simply saying, you know, no more may be just as powerf powerful thank you for joining us >> thank you. let's take a look at how we finished on wall street today with facebook shares down 7% it was an ugly session across the board. the nasdaq was down 2% on the bell the dow shed 35 points, better than 1% drop the russell down just about that much the dow negative on the year time for cnbc news update with

sue herera hi again >> hello here's what's happening at this hour, everyone president trump says he is working on a plan to curb prescription drug prices drug company stocks fell on that news he made the comment during a speech in new hampshire on the nation's opioid crisis >> if you compare our drug prices to other countries in the world, in some cases it's many times higher for the exact same pill or whatever it is in the exact same package made in the exact same plant and we're going to change that >> claire's is the latest retailer to file forchapter 11 bankruptcy protections the teen jewelry chain said it would remain open as it attempts to reduce its debt by nearly $2 billion. the company says they are confident it will emerge from bankruptcy probably in september. the former "sex and the

city" access cynthia neixon say she'll run for government in new york she'll challenge governor cuomo in the democratic primary. that's the news update at this hour back downtown to you. >> thank you sue herera uber suspending its self-driving car testing after the first known fatality with a pedestrian deirdre bosa with the latest >> it happened around 10:00 p.m. last night in tempe, arizona according to the police department there, a woman was walking across the street when an autonomous uber vehicle hit and killed her the nstb is conducting an investigation into the accident and uber is halting all of its self-driving car programs. as kelly mentioned, this is the first known pedestrian fatality caused by a driverless vehicle but there have been a number of less serious accidents involving autonomous cars over the years as they're being tested on public roads

in california, there have been nearly 60 reported accidents involving driverless cars, but many of them, many of them caused by human drivers either bumping into stopped or slow moving autonomous vehicles or when the human driver in that self-driving vehicle takes over. we don't yet know enough about last night's accident but it could have implications for the industry, which is still in its early stages it's also an industry in which nearly every major car company plus numerous startups are involved in. it comes at a time when regulators are balancing public safety with emerging technology, which is meant to reduce deaths and costs by eliminating human errors it also comes as states are starting to consider allowing companies to test cars without that safety driver back to you. >> not to mention as uber wants to go public next year potentially. deirdre, thank you very much deirdre bosa. oracle shares are lower after hours despite beating wall street's estimates we have a top tech analyst joining us to talk about how you should be trading the stock

after the results.

wasn't just facebook and the rest of the f.a.n.g. complex getting hit, the chips and semiconductors getting crushed we'll have more after this kevin kevin kevin kevin kevin kevin kevin kevin

kevin kevin trusted advice for life. kevin, how's your mom? life well planned. see what a raymond james financial advisor can do for you.

welcome back tough day for facebook shares down nearly 7% on the bell the company dragged the broader nasdaq qqqs lower by 2%. a big part were the chip stocks. vaneck with 1.6% drop. "fast money" traders are here to help explain what chips have to do with facebook. >> dan will start. dan is the facebook king

go ahead why don't you tell kelly what facebook has to do with the chips. >> hi, kelly when you think about this selloff, it's about outperformance, crowding in names. when we think about f.a.n.g. it's heavily favored among large investors. chips the same thing, smh, the etf that tracks the semiconductor etf is up double the performance of the nasdaq year-to-date to me i think there's a lot of crowding in there. again, you heard a lot of people talk about facebook today down 7% they're saying it's a cheap stock on the out year numbers. intel trades 14 1/2 times. qualcomm trading 17 1/2 times relative to growth and relative to balance sheets they're attractively valued. to me, you know, i think it's probably one there the same. it has to do with crowding valuation. >> imbedded in your question was notion that somehow the market went lower this move was predicated on

facebook i would submit to you, dan might agree with this, he may not, but if you look last week you had four days where the s&p had a big move to the upside followed by a selloff we haven't seen moves like that in quite some time where the market gave up gains maybe the market, maybe not down 350 dow points but maybe would have been down today regardless. let me say this about chips -- >> you know -- >> go ahead. >> say it real quick real quick >> real quick, micron, to me, on a ba flin tape is a stock way too cheap. back to you. >> i was going to say, guy, my first question is to you but i see what you did there you covered very well. mike was going to ask a question but then you asked it for him. >> see that. >> we don't need to be here at all. >> he bought himself a lot of time. >> it's in your head i have espn. >> yeah, that's what it's called when you can read those minds. we love you guys thank you. dan nathan, guy adami. much more coming up on "fast money" at 5:00 p.m. eastern time about 20 minutes

the f.a.n.g. stocks did get hit hard in today's selloff but facebook is under fire in washington up next, former democratic senator from iia, anayndnaev bh joins us you're watching cnbc, first in business worldwide a whole. ♪ it was such an overwhelming response to help others. no one thought that they were going to do this before it happened and everyone just did it. i think that's the way that human nature should be looked at. ♪ i'll stand by you. ♪ i'll stand by you. ♪ won't let nobody hurt you. ♪ i'll stand by you. when this bell rings... ...it starts a chain reaction... ...that's heard throughout the connected business world. at&t network security helps protect business, from the largest financial markets to the smallest transactions, by sensing cyber-attacks in near real time and automatically deploying countermeasures.

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big thinking in the finger lakes is pushing the new new york forward. we're the number one dairy and apple producers in the eastern united states supported by innovative packaging that extends the shelf life of foods and infrastructure upgrades that help us share our produce with the world. all across new york state, we're building the new new york. to grow your business with us in new york state, visit esd.ny.gov welcome back more news on that facebook story dominating the headlines and the markets today. julia, what's happening? >> the latest is that connecticut attorney general issuing a statement saying that his office has in writing initiated an inquiry asking

facebook to answer a series of questions about this matter. saying they cannot comment, connecticut residents should know his office takes privacy matters seriously and they will move as quickly and responsibly as we can do to get to the bottom of the situation. they're stalking about the reports that the data of 50 million facebook users was harvested and acquired by data firm cambridge analytica so, we'll definitely keep watching this. this is just the latest a number of lawmakers and regulators raising questions about this. the federal election commission holding a federal hearing on june 27th on its proposed internet political disclaimer rules the commission is now inviting facebook chief mark zuckerberg, google's larry page and twitter's jack dorsey to join us on the phone is ellen weintraub. is there a direct connection between this or an opportunity to talk to them about the news over the weekend

>> no, no, the invitation that i issued stems from an ongoing rule-making effort that was prompted by the news last year of how many ads on facebook were actually placed by people who had no right to be advertising on politics in our election. so, we're trying to get better transparency so that the american public can see when they're reading on their news feed or getting ads, they should be able to tell where that information is coming from >> so, obviously your focus and jurisdiction is on advertising and which parties are permitted to participate in campaign advertising. so, that's not necessarily as much about this potential data breach and the use of that data? >> no. the timing is just coincidental. >> are you going to take the opportunity to ask them about these privacy issues do you have concerns that people don't realize their data is

being shared in this way >> as a user of facebook, i have personal concerns, but our official jurisdiction has to do with money and politics. we are conducting a rule-making on political advertising i expect the questions will be limited to those topics. >> do you think -- are they going to show up do they have to? can they send a deputy >> well, i'm inviting them i hope someone will show up. i am inviting the top people because i think we ought to talk to the top people. >> and i think a lot of people want to hear from them thank you. >> my pleasure >> ellen weintraub is commissioner at the fec. joining us is the one-time governor and former democratic senator from indiana, evan bayh, here with us at post nine. welcome to you. >> thank you, kelly. >> you know we're going to ask you about this since it's the topic. what are your personal concerns about facebook at this point >> well, some of this has been going on for a long time but the technology has changed it. you go back in the day,

campaigns all the time would take voter role and you create profiles so you know your direct mail and other forms of advertisement would be persuasive you combine that with new technology, which is a lot more intrusive and it raises a couple of big policy questions. number one, how important is privacy to us? europe tends to have a more stringent approach to protecting people's privacy than we have in the united states. number one, what value do we put on that? most americans would say pretty high value. >> we also spoke -- our cameraman went out and asked a bunch of people on the street what they thought about this some thought, executives should be held accountable and others think what i put on facebook is public information people know. >> i worked in intelligence when i was on capitol hill and having seen some of the information -- the technology that's available, it does lead you to believe that maybe there is no such thing as privacy anymore. but having said that, most americans would like some zone of personal space that they can

protect or not as they choose. the second question is, who do you trust to protect that? do you trust the private sector to police or role for government you need checks and balances there. >> it's a good point we want to come back to this we also have a news alert. also want you to react to this it's a phase two of tax reform. >> a potential date for the rollout of that phase two. house representative mark meadows, head of the freedom caucus, conservative wing of the party, saying he expects to see some tax reform proposals around april 15th that is the tax day. he expects they will focus on making the individual tax cuts permanent and also, perhaps, some changes to the capital gains tax as well. so, he said the talks around this have been substantive they are ongoing again, april 15th as a potential rollout date earlier we did also speak to house ways and means committee kevin brady.

he was a lot cageyer about that potential rollout date but he said he wants it to happen in 2018 back over to you. >> thank you so, phase two looks like there might be some momentum behind it larry kudlow, who now will be at the nec, suggested it could made individual tax cuts permanent, for one. he also mentioned the capital gains rate, doing something there. what are your expectations >> a couple things -- well, my expectations are it's hard to get anything done in an election year the closer you get to an election we're getting pretty close this may be teeing up things for after the election. >> you don't think it's part of a way to try to win the midterms which is so hard to do when you're the party heading into that. >> yes, it could be. my tribe is complaining, look, these were tax giveaways for the corporate sector and all that. if they come forward and say we want to make the individual cuts permanent, that's hard for the democrats to complain about. it raises the issue longer term of deficits and with rising interest rates how you service those deficits

that's a big issue no one is addressing right now the final thing, the real bet in the first wave of tax reform, had you to do the corporate side to make us globally competitive. the others were a bet to increase productivity growth, to set off a >> sure. >> so the capital gains cuts might have some impact in inducing more capital investment, more productivity. that would really be pulling down on that bet >> on the other hand, the passage of the tax cuts came with promises that this was going to accelerate growth we haven't seen it kick in yet it's all to come and now we need more. >> mike, you're an impatient man, aren't you? >> i'm trying to just see if it works. >> look, with this kind of fiscal stimulus coming with monetary conditions that are tightening but still historically fairly loose, you should expect some bump in the economy over the next 12 months. the real question is is that a one off event that will dissipate? does that set off the cycle of

self-sustaining growth, productivity gains so you can afford to have high real wages without interest rates that are choking off the growth we just won't know until we get there. those are the two different sides. >> i think mid terms are going to be super interesting. the types of candidates. connor lambs he had to decry pelosi to get the victory. who even becomes speaker at that point if the dems do retake the house? then there are reports of pursuing impeachment do you think that's politically correct? >> i think the democrats are so unhappy with our current president. they'll deviate. once they get in control, will they allow that? we'll have to wait and see. >> yeah. >> we have two forces working against each other 70% of americans are happy about the economy. normally that would really help the party in power. >> right. >> at the same time the mid term elections tend to be a counter reaction for the people in charge which is the president

and republican congress. we have to fight this out district by district, state by state. it will be endlessly interesting. kelly, come november or next january, we get to do it all over that's democracy. >> it's going to be interesting. looking forward to it. senator, thank you for your time. shares of the nasdaq as we mentioned down more than 2% today. just about that much tech iesnvtor joins us with where he's finding opportunities when we come right back. we use our phones and computers the same way these days.

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nearly 7% today. if this guy says sell it, it's all over >> ross gerber is joining us is this a fair characterization, ross what do you think about this news.

>>. >> i will admit it i am disclosing that i'm not selling off -- >> are you disclosing that because it's down 7% >> what i'm actually doing to the public since i'm talking about it >> they didn't allow their platform to become a gutter for so many evil things that are going on it's going to get worse and worse. i'm not -- i have more questions

now. when there's so much being bought by fake accounts. >> ross, they're out there at a low level. i think there's two different extremes to this there's a shakeout in a crowded sector it will spend the end of it. >> the government has to step in here they will. it's just a matter of time now the tip of the iceberg will be here it's a fundamental trust that we have with technology companies its it's our data and it's

controlled by five companies >> ross, you're surprising me. >> get out your phone. get out in real life. >> if you change your mind, i hear ya. >> ross gerber from gerber kawasaki "fast money" begins right now. >> live from the nasdaq market site tonight on fast it is bitcoin cash all raising higher prices bitcoin bear market over we've got a special report stocks are getting hammered as well the market selloff as the dow at