do, iusv you think this is a bigger deal? inch i think it's a big deal "power lunch" starts now >> i'm melissa legal it's been march madness, stocks make a big comeback as we kick off the final week of the wild wild month how to position your portfolio from here. more problems for facebook the federal trade commission investigating the company's privacy strategy. and war of words between the u.s. and china boiling over. american famplers ear federally feeling the heat we're down on the farm "power lunch" starts right now looking for the cows and

corn welcome to "power lunch. the bulls are back stocks are rallying this hour. the dow was up more than 500 points earlier, now to 23,933. so about 70 points away from 24,000 again microsoft is leading the dow. we'll talk about that big call straight ahead bell a big gainer and an important week for the bond market, about 300 billion -- that would be auctioned off. that's a record amount of supply we're going to see just how much demand there, and moments from now, it would be a market mover. here to help us brake it all down, guy adami is here. >> all two hours. >> awesome also awesome is tyler mathisen we're glad the big guy is here

fedex reserving 20 electric tesla semitrucks scheduled to begin production next year the news not helping tesla shares the stock taking a hit in today as really, down 2.17%, and spotify releasing the financial outlook ahead of its listing next week, the biggest music streaming service expects revenue to grow. that's slowe than last year, but most companies love 20 to 30% revenue growth spotify expect more than 90 million subscribers. shares of lowe's up more than 5% the ceo retiring after a successor is found robert anybodylock has been with lowe's for 25 years. >> the stock dropping nearly again down 10% if one week in bear market territory. the ftc now taking a look at

facebook's privacy practices, and the senate judiciary committee is inviting mark zuckerberg to testify at a hearing april 10th surrounding data privacy issues. deidra bosa has the latest >> the attorney general asking facebook for information, joining a group of state ags earlier you mentioned the ftc opening a non-public probe into facebook practices, following reports last week that it would indeed the agency says that it is, quote, firmly committed to using all its tools to protect the privacy of consumers, and it could result in the u.s. government hitting facebook with a massive fine back in 2011 foib reached a settlement with the ftc, end the an investigation we reached out to facebook and reiterated the statement last week, saying we remain strongly committed to

protecting people's information. we appreciate the opportunity to answer questions the ftc may have meanwhile, guys facebook also facing -- that it's been logging the text and call histories for some android users the company acknowledging it calling it an opt-any feature saying it never sells the data or sees the content of all of these developments adding to you mounting blowback, a handful of smaller players halt been spending, and we're watching closely whether the bigger players like p & g also today -- the hits keep on coming, a government watch dog group filed a pair of legal complaints with the federal election commission, accusing cambridge of violating federal election laws. >> deidra, it is eu justice

commissioner is now asking if any of eu's users had been affected so, it's just -- the list is endless. thanks very much, deidra facebook is off by more than 2%, guy, what do you think about what the stock is doing? >> she said it, the hits keep coming thanks for having me, by the way. i love being here. >> good to have you here. >> you have a company that basically will have 20% earns growth, had four days where the volume has been ridiculous clearly advertiser are not, and maybe the engagements are down.

>> i do think the risk is significant. you're not invited to speak at capitol hill, you're told to go. an invite is a sort of quote/unquote. >> as long as there's an outstanding hearing involving mark zuckerberg, i don't think the stock can go much higher the optics are terrible. >> when does it get -- >> 100 million off market cap, you would think it's priced in, but we've seen before where people try to -- and it doesn't work that way. >> don't i have to wait and see what happening before you go buying the stock don't you have to wait and see what the consumer response is? >> unless the trough is such that if you wait too long, you'll be waiting on the other end of this coin, right? when it's back to 175. listen, i'm with both you guys

and gals i think the news flow is such -- the more bad news going forward, but at a certain point you say this is facebook, a company with a trek moat around it, and people are addicted to the product. we're finding that out now. >> thanks, guy he'll be here for two hours. bob is at the new york stock exchange. >> we had a perfect v-shaped moved. industrialses and tech it what matters. >> regained a good part of the losses when you have financials start are starting off strong, you'll have a hard time going down. industrials were also strong, bounceback on that look at the industrial, for example, started the day strong,

boeing, caterpillar, same thing, v shape, came back again, even more noticeable as technology also moved and rallied back. big part a close orders. there's still a few around even today, some of the consumer names, farmers had a terrible time recently. key point, low on february, we hid the 2 hyundai move average the key today will be the close. really big on friday they're quiet today. i think we'll get a quieter close. one of the key reasons for

today's rally is the trump administration taking a softer tone kayla tausche is in 1:00 washington, d.c. treasury secretary mnuchin over the week send said he was cautiously hopeful this morning trade adviser peter navarro said he was bullish. listen at the president's direction and personal direction, they are talking with the chinese as we've been doing since day one, and we will continue to do that. i think we're hopeful there that china will work with us to basically address some of these practices. so i see nothing but bullish signs ahead. >> reporter: that sentiment is notable, but the administration has been talking with china since the beginning.

after of last week officials were not pleased with anything that china had put forward so far. it remains to be seen how these talks could bear new fruit the u.s. trade representative could as soon as this week, release a solicit of those -- and wee see what's on the list the president has teased a new free trade deal, that have been going on since last summer you also have these ongoing talks with allies over potential exemptions other steel and aluminum tariffs to that end, theresa may this morning addressed parliament saying this, saying we must work hard to assure this exemption becomes permanent. at the same time we will continue to support preparations to defend our industry in a proportionate manner in compliance the prime minister also praised the u.s. and 17 other nations for the expulsion of some 100

russian diplomats in response to the poisoning of a former russian spy on british soil on march 4th. the u.s. this morning announcing that it would expel 60 russian diplomats, including the closure of the seattle russian consulate, which the press secretary said was due to the proximity of a submarine base and boeing guys, back to you. >> thank you, kayla. a news alert on the bond market right now. $30 rick santelli is tracking the action wow, that yield, rick, that's worth noting. >> yeah, exciting supply, we all know that. not so exciting $1.3 trillion spending package, but here we go this was 30 billion, two-year notes, the yield at the dutch auction, 2.31 right smack-dab. i gave the grades c, c as in charlie, very average. 2.19 bill to cover, best since july of '17.

that was pretty good a little below average, indirects, 50 is the ten auction average. 14.1 on directs, a little under the 15 ten-years auction, but here's some of the real issues here if you look at the 30 billion, that is the biggest size two-year note auction since may of '14 from january of 'is a all the way to january of '18. it was at 26 billion we have ramped it up bills have really ramped up and tomorrow we'll get oughten size. you know, this whole package is 94 billion i remember when it was at 88 for the longest time. >> rick, thank you very much what are investors to which i about this whipsaw market? let's bring in amanda, and peter. folks, welcome, good to have you

with us. amanda, you say you do not expect a trade war, but don't expect a lot of trade peace either explain what you do expect and how to invest in light of it >> our base case has and continues to be we do not expect a trade war, but at the same time we don't expect a lot of trade peace, either. that translates into trade dominating the headlines and investor psyche really in the short run. what i would say, though, is what gives us comfort is that the steel and aluminum tariffs appear to be implemented in a more targeted fashion. so after the shock and awe of the initial announcement wore off, things look like there's a little more precision involved in assigning them. with reports over the weekend that the u.s. and china are in trade-related negotiations, this gives us comfort that, you know, perhaps the end game isn't quite as severe as the market was fearing last week.

it's clearly in both our best invests -- >> what does that imply? >> we woog youths in near-term -- but we're not making broad changes to our asset allocation or portfolio positioning. this is very short term, near term kind of movement n market we try to stay very focused on the medium to longer term, which still looks great. >> peter, why don't you react to what amanda said and extend and revise >> well, the first thing is, you know, when we look at economists in the way they're analyzing this, they always tend to be rather what i would call book smart and analyze this soech and use theoretical tools, applications, that sometimes we tend to lose focus on the practical. as you know, wall street prefers street smart rather than book smart. if you look at this very practically, i don't see that

there's going to be a tread war. it's been amazing i think equilibrium will be reached. i hate to use that term, that is an economic term, but the dust will settle, our trading partners, whatever the terms will be, trading partners will adjust and we'll be on our way one last thing about this. we hear about this global economy, and that maybe these tariffs are impacting the global economy in a negative way. i totally disagree i think the reason why we have power to enforce tariffs is the very reason that we are globally connected, and that nobody wants to inflectself inflicted wounds on each other. the fact that we are connected mean it will be negotiations, it will be painful, a tug of war,

but i'm extremely bullish on the u.s. economy all indications is there had be green arrows pointing up. >> so both of you are dispositionally bullish. am i right in saying -- quick answer yes or no -- that you don't expect it to be like last year and there would be a lot more volatility? >> definitely more this year. >> peter same? >> yes, definite volatility, but that can be your friend. if you think the fulling are very sound. >> thanks, guys. don't you think that the administration saw 700-point decline on friday and say mnuchin is coming out on sunday, noor vario, let's leak a letter, calm everybody down? i mean, maybe. financials higher today, but down 7% in the past month, should you buy on the drop plus facebook going on the apology tour, taking out ads in the newspaper and the united

kingdom, but meanwhile, new information. more on on that on "power lunch. 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, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully.

into bitcoin falling below twitter saying at the ban all

the crypto-related bans. we see the impact here, 7919 is where bitcoin is trading right now. financials are in the green. they had been the worst performing seccor, the xlf is down 5% in march, down 7% over a one-month period conventionally wisdom is a rising rate environment, banking should be the place fob. why is not happening now jim, welcome to "power lunch." >> thanks for having me. is it this relationship broken down the last week we saw yields go down people started buying treasur s treasuries. >> yes, that's exactly right as you pointed out, the consensus opinion is that banking should be having a great year credit quality is great, interest rates are going up, it looks like deregulation is right around the corner, but there's also things to worry about

the fed is starting to take away the bunch bowl even though inflation readings are low you have to depend on a goal i locks environment. and bank stocks have been doing very well, because the economy is doing well. asset markets are up, the equity markets are up i think what's happened over the last month is natural profit-making. >> so you would recommend people -- to people right now they should shake off what we have seen over the last month? to you this is a buying opportunity? interest race are -- and interest rates are a margin. >> or stock pickers. we think a lot of the banks have really good results priced in, regional banking for instance are trading above 25 times earnings when you're investing in a highly rated slow-growing industry, that's a high price to pay.

on the other hand were see annual they had news of executive rye times on friday, so a bit of trouble there. the same story with american express, i think they had a very tough competitive year last year, the last two years, really that's another area. citi bank reported book -- albeit down from 78 bucks. why is citibank trading at that value. >> they still have taxi-deferred assets on the books. that inflates the value a bit. the other story is citibank is the most structurally challenged when you look at bank of america, their model right now looks a lot like wells fargo, a lot like jpmorgan. citigroup may not actually

belong together. they still have not proven why you need latin-american consumer lending in with the u.s. investment bank, in with asian consumer lending, there's not a lot of synergies there and you're seeing that in the valuation. >> yes, the famous supermark. >> exactly >> thank you for joining us. >> thank you. spotify releasing the financials ahead of the planned ipo next week. are they sweet music or hitting a sour note? we'll break it down next on "power lunch." ♪ (nadia white) the moment a fish is pulled out from the water, it's a race against time. and keeping it in the right conditions is the best way to get that fish to your plate safely. (dane chauvel) sometimes the product arrives, and the cold chain has been interrupted, and we need to be able to identify where in the cold chain that occurred.

(tom villa) we took our world class network, and we developed devices to track environmental conditions. this device allows people to understand what's happening with the location, but also if it's too hot, if it's too cold, if it's been dropped... it's completely unique. (dennis woloshuck) if you have a sensor that can keep track of your product, it keeps everybody kind of honest that way. who knew a tiny sensor could help keep the food chain safe? ♪ so lionel, what does 24/5 mean to you?rade well, it means i can trade after the market closes. it's true. so all... evening long. ooh, so close. yes, but also all... night through its entirety. come on, all... the time from sunset to sunrise. right. but you can trade... from, from... from darkness to light. ♪

you're not gonna say it are you? anything worth pursuing hard work and a plan. at baird, we approach your wealth management strategy the same way to create a financial plan built to last from generation to generation. we'll listen. we'll talk. we'll plan. baird. today, smart planning is helping the new new york rise higher than ever. as the world leader in unmanned aerial systems, we're attracting the world's best talent to central new york. and turning the airport into a first-class transportation hub. all while growing urban areas into vibrant places to live and work. 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.

spotify releasing financial data ahead of the planned ipo. morgan grenten is looking at the numbers. >> as spotify predicting revenue will jump 20% to 30% strong growth, but still slower than the almost 40% growth that was logged in 2017 that said the top music streaming service expecting margins to grow, that's notable. it has indicated that it is closer to doing so also subscriber metrics, monthly active users expected to jump up to to as many as 208 million premium subscriptions could comprise up to 96 million. that is key since most of spotify's revenues are those users paying to bypass ads

and all of this as spotify prepares to go public here at the new york stock exchange next tuesday it's by does that passing the traditional underwriters, and able to publicly release these figures but with a roughly 20 billion dollar valuation spotify is being watched, but also because of this. were reallies today, but march has been a rough month s&p 500 down more than 3%. energy spots were a bright spot. it makes it one of -- and it's been a while most energy watchers think le

will get there sneoor or later we'll have that when "power lunch" runs. but if things go wrong and an employee takes action against you, legal fees to defend yourself can be huge, even if you're not at fault. employment practice liability insurance helps cover these costs. trusted choice independent insurance agents represent multiple insurance companies and customize coverage to help protect you and your business. announcer: to find an agent, visit trustedchoice.com

hello, everyone. theresa may taking up the expulsions% parliament today she says 18 country versus announced they are removing more than 100 russian intelligence officers prime minister may telling lawmakers the action is the largest collective expulsion of russian intelligence officers in history, end quote benjamin netanyahu greet in maas in jerusalem. a new study suggests lead exposure is declining. university of michigan researchers analyzed blood sampling from young children before and after the 2014 water

crisis they found the percentage of kids with unhealthy blood levels dropped from almost 12% in 2006 to just 3% ten years later >> the most popular march mads in bobblehead is loyola's 98-year-old superfan, sister jean dolores schmidt more than 5,000 bobbleheads were sold in just 48 hours. that's a record. >> there you have it can't make this stuff up she looks fantastic. >> she can take it to the hoop anyday. let's getting a check on the rally of the hour. or rick santelli giving the

auction a grade of c let's move on to the price of aisle right now most oil watchers expected to hit 70 the only question is when. mean time keep an eye on -- only seems to be getting worse. a -- that recertification is coming up in may all of this in the backdrop tro tensions are the weather is going to start to get better

global demand estimates have been increasing. and u.s. exports are part the this story they're rising as well if it's absorbed by consumption, the balance can be maintained. back to you. >> jackie, thank you let's bring in pablo with his top picks. great to have you with us. what do you attribute to that outperformance relative to the broader markets. at the end of february, energy was 5.6% the lower levels in 14

years. today we're at 6% still, you know, remarkably underown underbought in the grand scheme of things. not back to, you know, 15% where it peaked a decade ago, but we're talking a 50% type of increase many invest through the xle, so the like of an exxon or chevron if you believe -- could you go with these integrated names and capture the same amount of performance?

this is a company with essentially zero kind of direct leverage it's got a lot of natural gas exposure those are a you will headwinds so stay away from exxon. i have used that as a source of funds. even better on the short side is e.c. a name to shores. now, on the other hands, some ideas to look at, occidental, marathon, cosmos these are all companies with much more direct business leverage to the rise in oil prices they don't have the

refining or the chemical or the natural guess headwind so chasic here on the long side. i mentioned a few of those what about some of these refining names they had a big run is there still room to the up side >> refining is not a play on rising oil prices. we're heading into driving season, but it's very different from saying that they're going to go up, because the price of

oil is up. thanks for your type, pablo. the usa is getting tough on china, hoping tariffing will benefit u.s. businesses overall, but one sector is worrying it could be hit and hurt. aditi roy is live at a soybean farm in indiana. aditi? hi there, that's right, in just a few as it is tradeal tk with -- gets increasingly tough. we'll have that story when we we'll have that story when we come back.e warehouse crew.

give us the data we need. in one place, anywhere we need it. help us do our jobs better. with domo we can run this place together. well that's that's your job i guess. ♪

- anncr: as you grow older, -your brain naturally begins to change which may cause trouble with recall. - learning frohim is great... when i can keep up! - anncr: thankfully, prevagen helps your brain and improves memory. - dad's got all the answers. - anncr: prevagen is now the number-one-selling brain health supplement in drug stores nationwide. - she outsmarts me every single time. - checkmate! you wanna play again? - anncr: prevagen. healthier brain. better life. farmers in the united states worried they could become collateral damage. eight did ii roy is live from a

farm near lafayette, arizona with that story. >> reporter: hey there, remember in romney, indiana, i'm standing on farm that belongs to brent bible. this snow will melt a few, and they'll be doing spring planting about half the cropsly planted with soybeans, but now he's rethinking that plan in light of the growing trade tensions there's a lot at stake china actually imports about $14.5 billion worth of soybeans from the u.s., about 61% of all u.s. soybean exports just over the past week end, the finance minister raised the ante that's making farmers nervous.

>> myself and my peers, we've been drafted into this trade war. we're being put on the front lines, but we haven't been given any weapons. what we see is that the ag industry, the ag economy is have i likely the first casual of the trade war. >> reporter: the american farm bureau federation has also wayed in on the issue saying we are very concerned about retaliation resulting from tariffs besides soybeans there's other agricultural products that's also on china's list of items nabbed be started, including fruit and nuts, wine as well back to you guys. >> aditi, thank you very much. joining us now on the newsline is kevin scott he is the owner of escort family farms, a soybean farm in south dakota, also the secretary of is the american soybean association.

good to have you back. >> thank you for having me >> we have a corn and soybean rotation half and half of our crop is soybeans one year and corn the next year. hogs, pork, which may also be subject to a retaliatory tariff. how worried are you about the threats to the pork side of your business to the bean side of your business. pork is a great easer of soybeans and, you know, half the my income basically on my farm comes from soybeans a 10 or 20% decrease in the price of that

crop could mean very significant money. currently we're running about a break even on those crops, so we don't needham hiccups. >> so what do you say when they say we have to do something about china. , for example, that something has to be done maybe we've got to accept some of the damages in the short term in order to deal with a longer-term issue. what would you say to them >> i couldn't argue that we a trade deficit with china, and the president would like $100 billion improvement in that and we, of course, would love to have soybeans be in the mix there of the total farm trade with china, 14 billion of that is soybeans. we would like them as an improvement in the trade balance

rather than being singled out and damaged by those tariffs you mentioned that things are breakeven for you. do you think any retaliatory measures could actually put some farmers out of the business? >> that of course is our ultimate concern we've always had issues up and down as far as being able to survive one year to the next so we're used to bumps in the road and ten days ago the american soybeans so, and some of our farmsers had the opportunity to sit with the ago president sonny perdue he's a great advocate for ag and

free trade, and we spent time talking with the trade problems, and he was very receptive to those things, but at the end he said buckle up, this could be a bumpy ride. >> it sounds like, mr. scott, tell me if my pressure is wrong, you feel like maybe this sector might end up being part the the collateral damage maybe you understand what the president is doing? or did i read too much >> i think you're accurate we have always done our part as far as, you know, issues that affect and we're going to continue to do that. it's just the hope that you mentioned earlier was that our new england people who are highly leveraged going to be our next generation coming forward, they do not have the ability to

weather those bumps like the secretary was saying we're going to have. so it's hard on them our goal is to smooth out those bumps and trade tariffs work against those. kevin, thank you very much kevin scott, scott family farms. coming up on street talk, what analysts are saying about big-name tech stocks and what guy adami has to say about what those analysts are saying. plus the latest reports that facebook wasav sing data from android users. the report who broke that story will join us next.

♪ ♪ excuse me, are you aware of what's happening right now? we're facing 20 billion security events every day. ddos campaigns, ransomware, malware attacks... actually, we just handled all the priority threats. you did that? we did that. really. we analyzed millions of articles and reports. we can identify threats 50% faster. you can do that? we can do that. then do that. ♪ ♪ can we do that? we can do that.

you know what's not awesome? gig-speed internet. when only certain people can get it. let's fix that. let's give this guy gig- really? and these kids, and these guys,

him, ah. oh hello. that lady, these houses! yes, yes and yes. and don't forget about them. uh huh, sure. still yes! xfinity delivers gig speed to more homes than anyone. now you can get it, too. welcome to the party. facebook shares taking another hit. now the ftc is investigating its privacy practices. they announced that today. stocks off more than 2.5%. facebook also facing outrage from the public after a revelation it has been logging text and phone call histories for some android users through what facebook calls an opt-in feature. joining us now is the journalist who first reported this about the android data collecting. shaean gallagher, the informatin reporter good to have you here. >> good afternoon. >> tell us exactly what you discovered

>> we found in archives of facebook data that users had collected and downloaded from facebook that there were reports of their phone calls and of their text messages dating from 2015 through around the end of last year. >> so that's a very specific type of phone, type of platform for a very specific time period, correct? >> right soy we believe that basically what happened is that on the android platform, which is the phones that this data was collected from, the permissions that facebook requested from the phone allowed them not only to collect contact information, which is part of what the facebook application and the facebook messenger application do, but also collect the ctuou sms and phone data as well >> did it ask you whether you wanted that phone data and sms data collected in other words, i don't use facebook, so i don't know, but i'm very familiar with places where they say, can we have access to your contacts? that's one thing were you ever asked or did your

research ever show that the users were asked whether they wanted their sms or phone data collected? >> prior to 2016, no now, a version of the messenger application gave users basically an okay button to click saying we want to keep track of all your sms and keep it in one place for you, but it didn't explicitly say we're going to record all the sms messages you make and it didn't just save the data it saves the message, time, and who it was to. there was no actual content, but it did record the individuals you were interacting with, and also who you called. >> in other words, they weren't looking at the specific texts, the words. >> right they weren't looking at the specific messages. >> but saying something as innocuous as would you like us to keep this information all in one place for you, sounds like a service which is may well be, and under some constructions but it's also doesn't really get

to the point that you think is, i don't know, nefarious is the wrong word, but objectionable. >> right, and it's not clear to many yutzers what they're opting into, and some cases, the apps get installed without the user's authority. they get installed by the phone manufacturer in some cases as part of a bundle in an android phone. so they don't necessarily have a lot of control about how the app is installed >> and facebook basically fessed up to this, right? they responded as they often do with a blog post >> right a fact check, as they called it. >> right right. which suggested everything you said was correct it's just that they said people wanted to opt in it madethe app work better, is the argument but they have since changed that policy >> right so what their contention is they collected this data so they could tell who you were interacting with on a regular basis so they could make better recommendations on who to send

friend requests to, but that doesn't really address the fact they retained this data for a very long period of time, and actually, they retained the data almost as long as the nsa was retained data under the 215 program the nsa was running until the end of the obama administration >> if you're looking for a framework for determining how long, why not use that i'm being snide. sorry about that thanks for joining us. i appreciate it. >> thanks. have a great day >> time for street talk. the analyst recommendations on the stocks you need to know about. the first one, intel upgrading it to a mark-up performance. they don't see a near-term negative catalyst. the one thing the firm is worried about, demand for apple's new lowest cost phone. apple forecasts are falling with the newest iphone model representing less than half of the iphone mix >> do you like intel >> what is the name of the segment? >> power pitch and pete pitched it last week

when the stock was trading around $51 the bottom line is it's a very compelling name on valuation i think jim cramer has the ceo on last week or so he said pete's price target of $60 is probably cheap. that's the ceo talking, can get it, but in terms of the valuation and the product mix, i get the apple story, but this should be a market outperform. well done by pete on the power pitch. >> fast pitch. >> what i said >> not well done by you. microsoft. morgan stanley rising the price by $20 to $130 that's about 50% higher than where it was trading earlier today. it will reach $1 trillion in market value thanks to cloud ataupgz. it shares the $250 billion market could double thanks to a combination of a ramp-up in cloud users and an installed customer base. by the way, we'll be talking to the analyst who made the call in the next hour. trillion dollars >> big number.

>> yeah. could it beat some of the other ones we have always been talking about? apple, amazon, googling? >> would it surprise you if a dark horse came in you have been watching that tournament that woman is 98 years old from loyola chicago >> are you talking march madness? >> you can get your footing. tyler, there's hope for you. i digress. in the meantime, microsoft, old tech, they were going nowhere five years ago they made the turn and made it better than anybody else valuation is your concern, but quite frankly, i think there's room on the upside i think the stock is going higher from here >> would you rather. >> i like this game. >> microsoft or apple? >> microsoft >> wow interesting. third stock. amd. susquehanna downgrading it to negative slashing the price target by nearly half. the firm citing impending competition from the chinese competition bitmain. it accounted for about 20% of amd's total sales. the analyst knows why bitmain is

first to market, he knows of three other markets working on the mining >> real quick on amd, i don't know if it's getting to $7, but it's become a bitcoin place. if you're bullish on bitcoin, this is a steal. high short interest. i don't know if it's going to $7 i would rather buy it here than sell it here >> got it. thank you. while facebook falls apart due to its data drama, microsoft, as they were just talking about, steadily rising. more on the battle of old tech versus new tech coming up. what about outperformance? really stark >> plus, up 400 today, down 700 on friday. how are individual investors feeling about these inswgs "power lunch" will be right back

good day, everyone welcome back if you have been with us, i'm tyler mathisen here's what's on the menu for hour two of "power lunch." stocks soaring as investors fears over an all-out trade war take a bit of a breather today is it a head fake rally or time maybe to get in and buy? as many are doing with the dow up 430

>> defriending facebook. we'll talk to a company that pulled its ads from the social giant following the recent privacy scandal. why? and are they afraid of losing customers? >> and if you're looking to buy into this recent tech sell-off, do you go with old tech or new tech we have a tech trade battle, so to speak, when "power lunch" resumes right now. >> and welcome to "power lunch." i'm melissa lee. big rally on wall street with the dow jumping more than 500 points at session highs. right now, we're up by 427 s&p higher by 1.5% all 11 sectors in the s&p in the green led by financials, technology, and consumer discretionary. microsoft, apple, intel leading the dow. ge the worst performer, hitting the worst level since 2009 ouch it's now trading at $12.85 facebook continuing its decline, entering bear market territory

in earlier trade and semis stocks worth noting, too, moving higher on pace for its best day in a month. lam, intel, analog devices are your leaders there financials in the green. bank of america, morgan stanley, jpmorgan up more than 2%, powering this rally. >> i'm michelle caruso-cabrera, here's what else is happening. lowe's ceo said he's going to retire once a successor is found. he's been working at the retailer for more than two decades. shares of lowe's jumping on the news >> finish line is soaring after agreeing to be acquired by jd sports fashion in a deal valued at $528 million. that's a 28% premium to friday's closing price. and yeti holdings, the maker of high-end coolers and other outdoor equipment, the company has withdrawn its plans for an ipo. they filed to go public in july of 2016. tyler, over to you >> thank you

guy adami is still here. you're here all alone for a couple minutes >> by myself i get scared when i'm by myself. >> here's here and we're happy to have you here major indexes rallying they're, however, off their highs of the day bob and mike also off their highs of the day on the floor of the new york stock exchange bob, a lot of analysts say today's rally is because of hints of progress over trade with china >> yeah. that's certainly the case. look, i started getting e-mails the minute mnuchin was on the sunday morning shows saying it's basically a negotiation, and the market want tos to hear that they want to hear a deal with south korea is happening they want to hear china saying maybe we'll be more liberal on stuff we allow in the country. the big thing i noticed is this is a super caporaly. if you look at the nasdaq 100 and s&p 100, the biggest stocks out there, apple, amazon, and microsoft. and when you get those three

stocks, apple, amazon, and microsoft moving at the same time, they're up 2%, 3%, 6%. these are almost 10% of the value of the s&p 500 >> they're muscling around the indexes, and below the surface, more of a gentle box the s&p 500 is up over 1%. obviously, it's kind of the big cap index move, and that microsoft move on the call that it could go up from here is driving things >> i think what's a little scary to me is watching the market just drift lower going into the european clues, which is ugly over in europe and a lot of people are saying, gee, maybe it's the dollar weakness or something going on the minute europe closed, the selling kind of stopped here in the united states. there's the v i kept talking about all day, and the volume got lighter as soon as europe closed as well i don't know what the problem the europeans were having, but something was going on over there. >> or bracing ahead of something, another shoe that might drop >> am i stating the obvious when i think, okay, market fell 700 points on friday

yikes, let's send out secretary mnuchin to try to calm everybody down on sunday >> i certainly think that might be part of the thought process se seemed like the moment when you didn't really want to, if you're the administration, want to push this idea that it's going to be to the max aggressive, a forced issue on the tariffs i don't think, by the way, that all the weakness on friday was mostly about that. obviously, thas an overhang, but a general sense that i don't necessarily want to take on more risk heading into a weekend where you have a bunch of these issues in play and boy, the bounce this morning, the bounced where it kind of had to, and really, even right now, as kind of pronounced as the rally is, we're back to levels at about 2:00 p.m. on friday >> to the extent the white house has indicated they really do care about the stock market and the extent they were concerned and wanted to reassure everybody, mnuchin certainly did his job, assuming all that is correct. >> all right, thanks bob pisani and mike santoli. it's been a volatile few weeks for technology, despite being up

today, the nasdaq is still down 4% for investors looking to buy in, what is your best bet for your money? do you get into the high flying fangs ora oldies but goodies joining us is jason ware, cio of albeonfinancial. kim, i know it's the valuation that's keeping you from investing in the likes of fang, so jason, i'm going to pose the question to you, why do you choose the higher valuation stocks when you can get decent growth with microsoft or cisco >> really, the decision between these two types of technology areas is really do you want growth or dividends? and there are certainly places in some portfolios where having these old technology stocks with dividends makes sense, but if you want growth, we would argue that the fang stocks, and we don't own netflix, so let's remove the n and insert the v, visa, that's also a new tech stock, and let's call it the faves instead of the fangs what we like to see in this group is the secular growth. if you look at the last three years, earnings growth has been

on the order of 40% if you strip out amazon we're stripping out amazon because they have gone from negative earnings to drdr.$4.gift last year. these are places you want to be if you're looking for technology growth we continue to go back to the fang names indeed, valuation is actually not that expensive, particularly when you take into account the growth i mentioned we think it's a place you can look to continue to invest >> one of the common threads amongst all of the old line tech stocks if you can even call it that, is they're less consumer facing at the same time, these are more of the stocks that would fall squarely into the cross hairs of a trade war, potentially jpmorgan highlighted that fact, said they were worried about global technology, there would continue to be pressure as long as there's a question mark of trade tariffs because hardware and machinery make up a big percentage of u.s. imports are you worried this could be another overhang on this group >> i think it is a concern

but not an immediate one, as we have seen with the news over the weekend. we're not a big, like let's -- i guess we're not thematic sort of investors. we look at the value and we want to understand what drives our companies. and a trade war, we don't think, would be a long lived sort of issue. and that being said, you know, getting back to facebook versus microsoft, we understand why the people who pay microsoft pay microsoft, because it gives them the ability to run their business on the cloud and with the products they offer. and facebook has a level of indirection where it's more of a media stock. an advertising sort of vehicle, and that's primarily why we're not interested in it, not that it's growth versus dividends >> even with the sell-off, kim, you don't see value there after the big, gosh, so much market cap wiped off that doesn't tempt

you in any way >> not at all. because i don't understand it. i don't understand what makes people stick around facebook other than their friends you know i'm sorry? i get the network effect, but if i have friends that i participate with in another format, i can still keep those friends. friends who you only talk to on facebook, are they really friends? and if you have to exchange a whole lot of chunks of urlife for those friends, that's -- >> that's a whole moral issue. a whole other discussion >> that's a social question. >> deep with us, kim if you don't talk to these friends, are they really your friends. i'm going to wrap my head around it >> yes >> jason, let me come to you with this, which is kind of buzzing around in my head. it's very convenient for us to say, okay, a battle between old tech and new tech. but if you're picking stocks, don't you -- do you care whether a company is old tech or new

tech what you care about is what the valuation is, what the earnings prospects are, et cetera, et cetera it doesn't matter whether it's old or new >> right, the conversation between, quote new and quote old is one that captures interest, but to point, it doesn't mean much the reality is, we're also long microsoft as well. and microsoft is a great example of old tech that has pivoted to new tech that's one of the reasons we like it. as we look at things like facebook and the power of the networking effect, the context matters. this is a $210 billion market opportunity globally facebook has a big share in that it's expected to compound at 13% a year over the next five years. the valuation on facebook, if you strip out the cash, at 16 to 17 times next year's earnings is basically discounting they're not going to capture any of that growth we think just because of the recent headlines that are shooting at facebook, to assume that's not going to happen is unlikely, and therefore, we think there's upside to the stock and the valuation is

attractive here. >> i want to go back to what kim said if you're only talking to these friends, these so-called friends on facebook, are they really your friends did i get it right is that it >> that's it and i mean, networking effects, i understand truly, because i'm really focused on business software and microsoft is a poster child for networking, you know, the power of networking because if everybody is on microsoft word, we don't have to waste any time of translating between one word processor and another. i get that but i don't necessarily see the monetization, because we're investors. we want dollars. i don't get it on facebook and i'm sorry. i just don't >> can i insert one more thing >> we have to go, guys >> fair enough >> we'll save that thought and come back to the friends versus nonfriends jason and kim, we thank you. >> let's speak about facebook a little more because we can't do it enough justice here the stock down once again today. did you know that? entering into bear market

territory in earlier trading the company now being investigated by the federal trade commission, among others deirdre bosa is in san francisco with the details >> tyler, a long list. since that ftc development, mark zuckerberg has been invited to testify at a judiciary committee hearing on april 10th. a company spokesperson said they're reviewing the invitation this comes as the heat rises on him to do so from lawmakers including mark warner over the weekend, who took to sunday morning shows saying he's the right guy. he can't send a staff. also, today, as tyler mentioned, the ftc opening a non-public probe into their practices which could hit them with a massive fine in full-paged ads in american and british newspapers on sunday, zuckerberg is apologizing again, in large text, he writes, we have a responsibility to protect your information. if we can't, we don't deserve it but even that, guys, tanlted by yet another development in a post yesterday, facebook acknowledging that it's been

logging the text and call histories for some android users calling it an opt-in feature and saying it never sells the data or seeing the content. at issue is that this is more data being logged by users without them necessarily realizing it now, as facebook shares continue to plummet, the big question for the business and perhaps the bottom line is, are advertisers getting spooked? so far, a handful of smaller players halting spending on the platform, and of course, we're closely watching the big players too like p&g to see if they follow suit. >> does he dare say no if the senate calls at this moment? in the past, you could get away with saying no >> he has to say yes >> it would look so bad. so bad for him not to go but who knows. >> going to be an incredible piece of viddee if and when he has to >> the swearing in >> thanks, deirdre >> here's what else is coming up on "power lunch. voltiatility has returned to th market, but a new survey says investors are more optimistic than ever. we'll tell you why straight ahead. >> as rallies against gun

violence swept the country, attendance at gun shows slowing down >> plus, sonos is getting anti-social. they're pulling the plug on digital advertising on social media. we're asking why they're doing that >> and dow is now at session highs, up by more than 500 points a gain of 501 points just 200 points to go to make up for the loss from friday all that and much more coming up on "power lunch. obvious. sometimes, they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group - how the world advances. ♪

when it comes to travel, i sweat the details. late checkout... ...down-alternative pillows... ...and of course, price. tripadvisor helps you book a... ...hotel without breaking a sweat. because we now instantly... ...search over 200 booking sites ...to find you the lowest price... ...on the hotel you want. don't sweat your booking. tripadvisor. the latest reviews. the lowest prices.

can can. fedex announcing a big order with tesla today the stock is taking a hit on the news elon musk is telling deslaw to slow down certain delivers to its biggest markets. >> that marked is norway there's a lot of tesla news but we know what's really the overhang on the stock is what kind of numbers will we see next week we'll talk about that in a bit when you look at the tesla news for today, a couple things stand out. fedex announced earlier today it is going to be ordering 20 tesla electric semis those will be delivered at some point in the future. they expect to start deliveries of these some time next year potentially. no delivery date has been set for the vehicles that fedex has ordered. remember, a number of logistics companies, transport companies have placed an order for

anywhere between 20 and 50 of these. the stock is under pressure today. in part because you have a couple pieces of news. tesla is saying it's going to be slowing down deliveries to norway there have been some issues there in terms of when the vehicles are delivered, the trucks that were transporting them elon musk said over the weekend, we can't handle how many are coming in here logistically in norway they have slowed down the deliveries there he issued a tweet saying it is clear we're exceeding the local logistics capacity due to a batch build and delivery customer happiness and safety matter more than a few extra cars this quarter. and speaking of cars this quarter, the first quarter, this is really the overhang on the stock. what are the numbers going to be for q1 deliveries? remember, they said especially when it comes to the model 3, by the end of march, we will be building 2500 per week that's what we'll be doing well, if you look around, you read some of the analyst notes, very few expect them to be doing that the expectation is it's not going to be 2500 a week.

then the question becomes, okay, how soon will you be to 2500 per week what kind of delay might be there? and we'll get the numbers. usually the first couple days of april. >> what's interesting about the analyst notes out there is even the most bullish analysts are saying yeah, we don't expect the target to be hit but it's a matter of when afterwards it will be hit. there's sort of acknowledgment, tesla is never going to hit the target, it's okay. >> not never, but not in the first quarter. >> are they going to do it at the end of the second quarter? is it further out in the year? nobody is talking about further out in the year, but it perpetuates this question that tesla investors have, which is when when do we see the ramp-up >> and the longer it takes, the bigger the concern the cash burn is >> cash burn, and you need revenue to offset it this year >> why is norway such a big market >> because they have embraced electric vehicles far more than most other countries >> no sales tax on evs >> yes in addition. >> i was going to say, is there a tax benefit.

>> you don't pay tolls >> best market per capita for them >> that said, still a very small market i get notes from people all the time how come you don't talk about norway it's a really small market >> you have been getting my notes then good >> nine teslas in norway have you been to norway? >> i haven't >> i tell you exactly what the trade is, 2014, the high in tesla was $280 2015, the high in tesla was $280 past resistance becomes support, and i think the stock finds itself supported at $280 tim seymour has been on this i don't think it's a car company. i think people misread it, but it feels like it wants to trade, the $28 level wants a gain >> all right, as the facebook data row grows, some companies have begun to rethink their advertising spend. we'll talk to sonos about why the company decided to take a break from facebook. and microsoft among the top performers today after a call from one analyst who says it's

heading for a trillion dollar market cap look at that, up more than 6%. we'll talk to that person ahead. as we hid out, check out the rally. the dow up more than 500 points. 546, to be precise ♪

feel that? that's the beat of global markets, the rhythm of the world. but to us, it's the pace of tomorrow. with ingenuity, technologies, and markets expertise we create the possible. and when you do that, you don't chase the pace of tomorrow. you set it. nasdaq. rewrite tomorrow.

rebounding from friday's steep losses all three averages are up more than 1%, more than 2% the last time we checked. market volatility, it shows investor optimism is at the highest level since the dotcom bubble despite the volatility. joining us is joe ready. good to have you here. >> great to be here. >> i'm looking at the dates of the survey, february 12th to 25th way before the massive sell-off last week and the volatility over the last two weeks. i mean, record high optimism should i see that now as a

contrary indicator that we're going to see selling because people were so optimistic? >> i think it's the new normal in terms of the correction tolerance. people have this 17-year run, investor sentiment, 7 out of 10 said they see household incomes, they're very optimistic about achieving and maintaining their household income and their investment goals over the next five years optimism is very high despite this was taken during a period of a lot of volatility, so people are still fairly bullish. >> a 17-year high. people are really willing to stick with the buy and hold after they had seen all of what happened even earlier. >> yes, 53% said that they expect and can tolerate a 10% market adjustment. so people have gotten the message of invest for the long haul, stick to your man. >> we have seen that 10% market correction as of friday. what's your guess as to how sensitive people are to these bouts of volatility? you mentioned this survey was

collected after the first bout but after two, you wonder if people stick to their guns >> after the second one, we service 4 million employees in these 401(k) retirement plan today. what we have seen is a significant increase in calls and inquiries, but a significant amount aren't making changes the notion of stick to your plan and maybe the period we have run, whether it's the dotcom of 2000 or '08-'09, people have seen the market come by and this have a plan and stick to it, people are abiding by it >> you said you had a big increase of number of calls but when it came to changing their distributions -- >> they're sitting on the sloins we have this asset allocation strategy, it's long term they have seen the benefit of the long term sitting to their strategy over time and not adjusting that >> is there a difference between men and women, age groups. >> women are more conservative if you look at how they're allocated today, almost regardless of gender, one thing

we see, age 55 and up, regardless of gender, are too aggressive in the markets when they do it themselves, when they're picking their own investments. about 60% are too aggressive at age 55 and up when they do it themselves which is really concerning >> 34% are highly confident they have enough money to maintain the lifestyle they want in retirement that would imply that something around 70% aren't. or maybe not highly confident. they're less confident than highly so two questions should we worry about that number two, do the numbers support the idea that those 34% who are so confident ought to be >> i -- so i worry about it, exactly. i think what we found is savings is the big deficit, so i would say to people, you can't invest your way to retirement, but the savings notion is really, really important. and people aren't saving enough. what they have also done is they have sort of got started too late they lost sort of that biggest

asset, the power of time >> maybe they're confident but they shouldn't be so confident >> they're confident in the investment markets and less confident about their ability to retire from a financial standpoint >> joe ready joining us from north carolina >> thanks for having me. >> is your money safer with large cap stocks we'll talk to two analysts stay with us on "power lunch." alerts -- wouldn't you like one from the market when it might be time to buy or sell? with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today.

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

hello, everyone. i'll sue herera. here's your cnbc news update at this hour. president barack obama in tokyo talking about gun violence in schools. he's attending the fourth global opinion leaders summit the former president praising the courage and effort of a group of 15 and 16-year-olds who helped spark global anti-gun rallies. >> there's word that fire alarms were silent during the deadly mall fire in siberia drone video showing the aftermath of that blaze, which killed at least 64 people, including children investigators say emergency exits were blocked there is no indication yet on what caused that fire. the military reports afghan pilots will begin flying missions in u.s. blackhawk helicopters in may

afghan's military has been using soviet era helicopters up until now. >> and madame tussauds max museum debuting its royal balcony exhibit. it features life-size and lifelike figures of queen elizabeth and her family the museum also says it's working on a wax figure of prince harry's bride-to-be, meghan markle. that's a little eerie or creepy. i'm not sure what the word is. >> wax museums can be that way >> either works. >> thanks. sue. >> you got it. >> let's get a check on the rally. it's a big one at session highs the dow surnling more than 500 points every dow component participating except for general electr electric we're buv 24,000 the s&p is up 54 points. also a gain of 2%. 2642 and the nasdaq composite higher by 2.5%, a gain of 172 points. 7,165.

all of the s&p 500 sectors are in the green financials, tech, and consumer discretionary are leading the way with gains between 2% and 3% >> stocks are rallying, as trade tensions ease. so how to position your portfolio now. we have a trillion dollars worth of advice with david laugherty, chief market strategist. welcome. good to have you with us you point out an investor's return in equities are part dividends, part earnings, and part the dollars that the investor is willing to pay for each dollar of earnings. the multiple and you think that one of those pegs, specifically the multiple, is not going to be there this year what does that imply about the kinds of returns investors should expect? >> well, i think after a very long bull market we've had both in stocks and bonds, i think the big key for investors and for clients is to reset their expectations we're not negative in any sense.

we think one of those cylinders, the earnings growth, should continue to come through fairly well, provided the global economy stays on track but given where valuations are, it's hard to see a lot of multiple expansion at this point. and this is happening in an environment where obviously we have central banks beginning to pull back at the margin. interest rates have bumped up a bit. and inflation, while we don't think it's runaway or a big risk, it's showing some signs of poking its head out. those three interrelated variables are never great if you're expecting a lot of multiple expansion so we think stocks can grind higher on thurnings. wee just not expecting what people would know as a traditional bull market where earnings and multiples are running at the same time >> at one time, we were looking stocks trading 20 times, 22 times next year. now we're back to 17 what is the right number do you think for the multiple on the market next year or the year after? >> the most interesting thing for me is the divergence, whether we're looking at

trailing multiples or forward multiples. the forward multiple on the s&p 500 is still a little over 21 times. so if you think the future is going to look like the past, stocks are still pretty expensive. but with all the euphoria around tax cuts and everybody taking their earnings estimates up, as you mentioned, the forward multiple on the s&p is now down just under 17. if we look at these on a person tile basis, the trailing pe is about 80th percentile. the forward pe, just under 17, is right around median so the reality is, what you have baked into stocks is a lot of optimism if the forward pe is more indicative, in other words, those strong expected earnings actually materialize, it's much, much tougher to make the argument that the stock market is dramatically overvalued >> real quick, it's not -- i'm not suggesting we're at '08,

'09, but it wasn't valuations that took down the market then in your opinion, is there some event out there that none of us are looking at that concerns you in terms of the broader market >> yeah, so this is actually a great point. i completely agree with you. it's usually not valuation that knocks the market. as i like to say, valuation speaks to how big the downside could be when it happens. it doesn't necessarily speak to the likelihood of it happening the exogenous shock for me at this point is really a slowdown in the global economy, in one of two formats. either the global economy actually rolls over and begins slowing, or what we have begun to see a little bit just in the last month or so isn't that the economy is failing in any way, but it simply isn't living up to extremely high expectations. so if you look at things like the economic surprise indexes, they don't indicate that the data has been bad. they indicate that it's almost been impossible to keep up with sort of the macro euphoria we

had in december and early january coming out of the tax reform discussion. >> that's an interesting point to remember. that the valuation doesn't necessarily predict the fall, but it can suggest how deep and hard the fall will be. david, thank you very much >> thanks for having me. so amid washington's recent trade troubles and tax cuts, shares of small u.s. companies have held steady while the larger and multinationals have stumbled the russell 2,000 has dropped 0.2% since the end of february, versus the s&p's 4% drop and the dow's 6% decline are small caps the better bet for this market? let's bring in eric. good to have you here. >> it's good to be here. >> everybody understands intuitively why you would see small caps outperform at this point, because of the things we talked about the tax cuts being better for them, since they have less overseas exposure and less likely to be affected, perhaps, by trade issues. but small caps have gotten

really expensive, relative to the rest of the market where do you come down on them >> you have to remember, the small cap space really is very, very diverse and there are expensive areas, but there's also inexpensive areas in the market that we think are going to see the best earnings growth in things like some of the material stocks, home builders, some of the industrials. we can find areas we think consumer discretionary where stocks are trading anywhere from, you know, five or six times their enterprise value to ebitda you have to go in and look at small caps on a case by case basis, and you can find valuations that make a lot of sense right here >> one of your picks is eagle materials. exp, and you make the point it's gotten punished because of its exposure to fracsand at the same time, it's exposed to wallboard and gypsum.

we have seen this deal with usg spawning the bid is that going to provide some lasting lift to the valuation here i mean, the valuation differential between the two is vast >> well, i think the other thing is eagle is very much focused on the cement business, which is a very important part of their business i think they're now -- there's not many u.s.-based cement companies left in the u.s. they're one of the largest producers. you had about a 20% pullback in that stock from where it was trading a month ago. so we think it's come down to a price where it really, this is a very attractive entry point. valuation wise, it's trading about 9 1/2, 10 times its value to ebitda. we see good earnings trajectory over the next two years. beyond that, no one has very much visibility into materials but we think this is an opportunity to buy the stock on the pullback it's had over the

last few weeks >> all right thanks for the idea, eric. companies getting anti-social in the wake of facebook's data scandal. straight ahead, we'll talk to sonos about why the company is hitting the pause button on their social media ads >> a look at the dow 30 heat map. all in the green except for general electric, which is trading below $13. "power lunch" is back in two (siren wailing) (barry murrey) when you have a really traumatic injury, we have a short amount of time to get our patient to the hospital with good results. we call that the golden hour. evaluating patients remotely is where i think we have a potential to make a difference. (barry murrey) we would save a lot of lives if we could bring the doctor to the patient. verizon is racing to build the first and most powerful 5g network

that will enable things like precision robotic surgery from thousands of miles away. as we get faster wireless connections, it'll be possible to be able to operate on a patient in a way that was just not possible before. when i move my hand, the robot on the other side will mimic the movement, with almost no delay. who knew a scalpel could work thousands of miles away? ♪ when it comes to travel, i sweat the details.

late checkout... ...down-alternative pillows... ...and of course, price. tripadvisor helps you book a... ...hotel without breaking a sweat. because we now instantly... ...search over 200 booking sites ...to find you the lowest price... ...on the hotel you want. don't sweat your booking. tripadvisor. the latest reviews. the lowest prices.

well, on a day when the markets are rallying across the board, general electric is down more than 2% on the day. 57% on a one-year chart. guy adami. >> yes, sir. >> what's wrong with ge? can they fix it? >> can they fix it they'll fix it at a certain point, but it's a valuation story. you're talking about a company with zero eps growth it trades higher than honeywell for no reason. this stock should have been crushing it over the last decade given the businesses they're in, and they haven't been. when the stock is down on a tape like we're seeing today, that's a tell especially after being down from $32 to $15 what's the point

the point is in my opinion, the pain trade is still to the downside at a certain point, it gets compelling we're not there yet, in my opinion. and, by the way, kudos to cow00, who six months ago - >> november. >> that's six months >> yeah, pretty good math for me when the stock was probably trading at $28 or so, said this stock is somewhere between $11 and $15. and where do we find it now? >> 12.80 >> between $11 and $15 >> growing list of companies pulling ads from facebook following the company's data scandal. the speaker company sonos is among them, but only for a week. joy howard is a chief marketing officer of sonos great to have you with us. >> thanks for having me. >> why a week? >> well, we thought it was important to take a moment to pause, to first of all ask ourselves really tough questions around whether big tech is doing enough to balance its own self-interests with its biggest responsibility, which is safeguarding our privacy we thought it was also really important that brands like ours pause and take a moment to reflect on the role that we play in all of this, and then

finally, for ourselves, we thought it was really important to redirect attention to the role that activists, academics, and civil society are playing to advocate for rights. >> you're moving across facebook, instagram, twitter, and youtube for one week do you ask yourselveyourselves,, whether or not advertising on these platforms is actually effective? >> of course we ask ourselves that >> is it >> it's very effective i think that's why -- i think that's why everyone continues to do it. i mean, i think ultimately, what we're seeing is there's really no opting out of an ad-supported internet >> do you feel at all trapped? people say, well, where else is everybody going to go? compare them to google, compare them to any other choice do you have any other choices besides facebook or do you feel committed that's why you're only doing a week >> that's exactly the point. advertisers have no other place to go. big tech has -- the big tech

media duopaeoly has media in a stranglehold what's most important is we really be thoughtful about the way that we're advertising on the platform and make sure that we're doing everything we can to do so responsibly. >> how do you know it's effective? can you give us any data, quantify in any way for us when you do x on facebook, you see y in terms of sales? >> well, i mean, one of the reasons why these platforms have been so valuable to companies has been because it's so easy to track how valuable they are. i won't disclose any specific statistics about our own ad strategy or the effectiveness that we're seeing, but i think you can really understand that that's why so few companies have spoken out, because they're precisely so valuable. >> do you think you'll see any strop dropoff in sales in the one week where you're withdrawing advertising across the platforms? >> again, i doubt it that's the point we want to raise. we're dealing with a duopoly between facebook and google. there is no other choice for

people who want to communicate with their customers even if you want to opt -- i would say pretty much all of the social platforms are really underwritten by advertising. there really is no other choice. all we can do is really support those who are working to make them safer for customers >> there are lots of other websites you could use obviously, they don't have the same multi-billion person audience, but there are lots of them out there >> yeah, there are i mean, i think what we're most interested in doing is really highlighting the role that big tech plays in all of this, and the very few choices that it gives for you. one of the reasons that's really important to us is because we're seeing big tech moving much more aggressively into your home. and we're in the business of providing great home sound experiences. so we want people to think about what are the motives of big tech when you're engaging with it, and be really well educated about those motives. >> when melissa asked if you would see a decrease in sales,

you said probably not. yet at the same time, you say advertising is incredibly effective. so if you're not going to see an impact on sales because you're going to withdraw ads for a week, that suggests maybe it isn't that effective >> advertising on these platforms is effective that's exactly why you're seeing so few companies speak out about it ultimately, though, why i'm hopeful we won't see an effect in our business, i believe in the long run, consumers reward businesses for doing the right thing, even when it's not comfortable. >> do you see the flipside of being beneficial to your company in that the notion that sonos is actually withdrawing ads for a week across platforms, that is actually going to be a bigger positive impact to offset the negative potential impact of withdrawing the ads? >> yeah, in the end, we're doing this because woo think it's the right thing to do. not just the right thing to do to remove our ads. we think it's the thing to do to cause attention to the problem and elevate the voices of civil

society who are working to make the tech platforms safer for users. >> joy, do you guys retain any information about how often people play certain songs, et cetera, how they use your platform what kind of data do you accumulate >> the data we have, we safeguard like it was our own. and we're very, very careful to make sure that we protect every aspect of data we have we don't sell it to third parties. >> but do you know, for example, and i'm a customer and i have on my -- facebook app, my sonos app on my phone. all of the music services that i use, whether it's spotify or amazon or pandora or tune-in radio. do you know how much time i have spent on each of those and when and maybe what i have listened to >> we know what you listen to, but the reason we -- i mean, we're more focused on understanding are we satisfying you as a customer, and i think one of the reasons why the platforms are so valuable for people is, again, any interaction we have with you, we

want it to be as relevant as possible so the primary reason we're looking at data is so we can serve you better i think that's the upside of the way in which companies are using the data >> it's never sold, correct? >> absolutely not. >> all right joy, thank you joy howard. >> yeah, thank you. microsoft surgery iing, up e than 6% after morgan stanley says they're headed for a trillion dollar market cap really going to get there before apple and amazon here's a look at today's big tech movers. qualcomm is higher by more than 3% all of them nearly higher by more than 3%, except amazon, up 2.9% the new guy? what new guy? i hired some help. he really knows his wine. this is the new guy? (dog growling) hello, my name is watson. you know wine, huh? i know that you should check vineyard block 12. block 12?

(bark) my analysis of satellite imagery shows it would benefit from decreased irrigation. i was wondering about that. (barking) easy boy. nice doggy. what do you think? not bad. (dog growling) your insurance on time. tap one little bumper, and up go your rates. what good is having insurance if you get punished for using it? news flash: nobody's perfect. for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. switch and you could save $782 on home and auto insurance. call for a free quote today. liberty stands with you™ liberty mutual insurance. i'm not really a, i thought wall street guy.ns. what's the hesitation? eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable.

i could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy. what's the hesitation? it's just complicated. step-by-step options trading support from td ameritrade

welcome back to "power lunch. shares of microsoft soaring for its best session since 2017. morgan stanley said it could reach a trillion dollars on the market cap joining us is keith. >> thank you for having me. >> a part of that is growth in cloud. can you map that out how that growth could displace the market share that others have in the space?

>> sure. we think there's two things going on with the growth in cloud. some of it is comingfrom an outsourcing argument, displacing other vendors in the space who don't do it as efficiently where you're selling into a company's on-premise data center it's much more efficient to do it through microsoft much more efficient to have microsoft run that plant for you, in terms it of server storage and the software running on top of it the other side of the equation is microsoft and cloud services are expanding the market opportunity by making it lower cost, easier to use. and actually expanding the amount of work you can do in a cloud environment. the types of workload you can do we think they're expanding the overall market environment and creating their own market, if you will >> what is a portion of your argument -- or the reason behind your upgrade that analysts are not understanding? not this many people are this bullish on microsoft what are they missing specific ka el? >> sure.

a big part of the argument i think people are missing is they understand the cloud transition and saying what we were doing in an on-premise world, we'll replicate in the cloud what people miss is the expansion part of the equation let's take office, for example there was a base of customers using office in commercial environments over 200 million people. and people understand that those 200 million office users will become office 365 users and pay microsoft a little more. that's the part of the equation investors get. the part investors haven't quite gotten a good understanding of is the basis of office users expands a lot when you transition to office 365 you can go deeper into enterprise, go into accounts you weren't able to go before with a cloud service that you couldn't go on-premise. and once you get those customers into office 365, the functionality expands greatly. they're able to get guys to use a broader set of solutions and charge more and more

you see good expansion within office 365 and also really good price expansion over time as well. >> we'll leave it there. thank you for your time, appreciate it. for more market insight, head to our website, tradingnation.cnbc.com we are at session highs with the nasdaq up by 2.7%. s&p higher by 2.3% check, please, is next >> announcer: and now the latest from tradingnation.cnbc.com and a word from our sponsor. >> a double top is a chart formation that suggests an uptrend may be ending and ready to reverse sometimes called an "m" formation because the pattern looks like an "m." a double top consists of two well-defined peaks of the same adice. trers view a break as the bearish signal it was my very first car accident.

i called usaa and the first thing they asked was 'are you ok?' they always thank you for your service, which is nice because as a spouse you serve too. we're the hayles and we're usaa members for life.

feel that? that's the beat of global markets, the rhythm of the world. but to us,

it's the pace of tomorrow. with ingenuity, technologies, and markets expertise we create the possible. and when you do that, you don't chase the pace of tomorrow. you set it. nasdaq. rewrite tomorrow. welcome back let's get a check of the markets. we're near session highs as we head into the last hour of trading. nasdaq and technology leading the gains. industrials higher by 565 points final thoughts here? >> i have some thoughts. first, my biggest, most important thought is, thank you for having me. >> always a pleasure. >> delighted to have you you're a well-behaved guest. >> i try to be. >> we do a show at 5:00 every day. >> "fast money." >> what did i say? i said, i don't know what's

going to happen on monday, i said don't fade the mood, whatever it is we're up dow 600, that's what i was talking about. we held an extraordinarily important level on friday. tomorrow, see what happens turn-around tuesday. >> let's see. >> don't bust a move. >> thanks for watching "power lunch. >> "closing bell" starts right now. >> so, if i say frost/evans, what happens i don't pay you? never mind welcome, everybody, this is "closing bell," i'm kelly efbs. >> iwe'll look at the dow. it rallied more than 580 points at the session high a few minutes ago. the major averages are higher for the first time in four days. remember what an ugly week it was last week. rear regaining some ground let's ge