>> absolutely. >> well, i think it was growing. >> we are waiting for the effect to kick in >> thank you >> thank you for watching "power lunch. >> "closing bell" starts right now. life in the new york stock exchange, i am kelly entrepreneur vaevans. >> i am wilfred frost. >> this is huge come bk. it is a 700-point swings since the lows this morning. the market is coming back. gun gundlach does not think it could be sustained >> the re and of course, this year as i have said before we are going to

have a negative year in the stock market >> let's get right to the markets. pisani is on the floor looking a lot better than this morning. >> she's right, 700 points is a remarkable move here remember what happened the market is clearly concerned of trade wars and tariffs or whatever you want to say when you say your main point man, kudlow or wilbur ross and say don't worry about it so much, the markets try to calm down they're looking for and want to know why we got a turn around here not clear when the tariffs will commence and there is hopes for negotiations there is still a lot of damage being done we are having multiple compression occurring in big industrial and technology names. how many days in a row do i put on boeing? that's 50 points in the dow jones industrial average they're off of their lows.

john deere gets about 10% of its revenue over in china. we have other big industrial names that just started breaking even today 3-m gets about 10% of its revenues from china and chevron of 11% or 12% and still down despite the rally we are seeing. then we have some companies you may not think about, for example, take a look at visa, visa is showing positive but was negative all throughout the day. visa gets 10% of its revenues over in china. >> the bottom line is market moves on every gyration of tariffs and trade war issues on friday, we are going to get all the information on the jobs as well assua wage growth it is sensitive and very attentive, all of this right

now. >> back to you >> thank you very much for that. a fantastic turn around, we are over a percent the nasdaq is dipping in and out. bert bertha coombs. >> nasdaq biotech has really been the out performer today it is interesting despite the fact that the trump's tariffs could impact many drug makers. the biotech are higher and walgreenand henry schein microsoft turn around added the most upside impact to the large caps along with waapple. micron has a big revenue exposed to china is in turn around mode today and tesla with another

five plus days chinese listed tax stocks, some of them are doing well chinese streaming firm is breaking below and now is down nearly 3% on the day kelly. >> bertha coombs at the nasdaq steve bannon going after wall street in the midst of this fight today. michelle caruso cabrera brings us the story >> hey there steve bannon, widespread fears of the president's tariff fight with china is destroying stock market wealth. bannon told roeuters wall street supported and cheered on the experts of their jobs to hell to wall street if they don't like it wall street is always short

term bannon also said, "it is a full throw down, trump has planned this out for a long time." this is the beating heart of american capitalism, technology and innovation that the chinese stolen and forced amicans to turnover trump has sialled those days are over that's the problem with bannon, you never know what he's thinking he's always out spoken he's not oin the white house anymore but we pay attention because we wonder what degree does he echo of donald trump and how much does he influence him and how much of that remains in the white house, that kind of thinking >> yeah, if that influence is still there, you may expect the market to even sell off a little bit. we are hanging onto the gains so maybe that's an indictment >> michelle caruso-cabrera

there. they were down more than 600 points commerce secretary wilbur ross spoke out about what's behind the president and what china needs to do to avoid further tension. >> wto rules do not permit subsidies and dumping and permit those things the rules don't really address very well intellectual property but it is fundamental that you cannot steal someone's intellectual property. that's what they have been doing. they have to stop. if we got off those two bad behavior behaviors. >> let's bring in seema mody >> the chinese ambassador to the

united states struck a decisive tone saying beijing will respond of the same size of tariffs as washington did and is ready to enter a full on trade war if necessary even though he says that's not what china wants. now here is what he had to say >> we have a negative impact clearly, china economy, it will have a negative impact under the u.s. economy, such protection will not protect anybody it will not protect american workers or american families it will not protect american business or consumers. it will affect everybody including the u.s. economy itself we don't want to have any trade war with anybody but people have to understand who started all this >> who can play this game that's what he's saying the big question is whether china will take its retaliation to the bond market and reduce

its purchases of u.s. treasuries the ambassador says we have done our utmost to avoid this situation if the other side makes a wrong choice then we have no alternatives to fight back beijing continues to deny that it is stealing u.s. intellectual properties the china sees this as a disgrace and will not back down. you have to wonder if this will continue to escalate >> seema, thank you. let's take a look back how we got to this point the president tweeted after his asia trip. the united states have to be treated fairly, the massive trade deficits must go down quickly. that was his tweet in november when the u.s. announced its first set of tariffs on imported solar panels and on walshishing machines things escalated in march.

the u.s. announced tariffs on steel imports to which the chinese ambassador of the u.s. says they would not rule out the -- >> this week on china imposing on u.s. imports on over 120 products today president trump tweeting, "when you are $500 billion, you cannot lose. so at what point does this trade war if it is a war now ends. one side is named the winner here joining us is chair of the china team and steve worland is with us welcome to you both. it is important to define the goals of the trump administration and we are talking about everything from dishwashers to fillings. is this about china coming to some resolutions of how it is doing steel and aluminum and

stealing ip? >> i think it is about number one, president trump defined in reduce reducing the bilateral trade deficits, even though it is not something we are looking at. i think multi lateral trade deficits do. seeing china change its behavior in terms of allowing foreign investments and what ip has to be transferred in terms of that investment if both of those things improved, we should declare victory and go home and not engage in what is going to be a disadvantage a machine in boeing i disagree mr. bannon characterization that the american workers win on this they are proposed tariffs. they are not entering the force for 90 days. we have a long runway.

that 90 days can be expanded we have a long way to negotiate settlements. >> jonathan, i guess the runway is key ross pointed to the fact that this could lead to negotiations. what is the likelihood that president xi want to make some kind of a step back and come to some kind of a deal. he's a strong man and he does not like to suffer his image >> he certainly does not he's strengthening his image over his political power and the last six months in china i think we'll see the economic side of that which is for the time being, you can go with a little more tic-for-tac language what comes for president xi is 2025 which was a long-term program to up value, of the ten

sectors in the economy and they don't want to give way on that that's a political position and his political app ambition for his country. >> steve, you mentioned two goals for the u.s that's a big goal and hard to do especially we are talking about a couple of billion here and there. >> it could be done through energy >> the other thing is improving for china to come forward, okay, we'll do what on intellectual property >> so end requirements for transfers of technology in order to enter the chinese market. that'll bring more companies into china and benefit chinese consumers. we are benefiting china 2025 to the extent companies are willing to express spring air and higher quality to china and beneficial to china the chinese analyzed all of

these things is not going to benefit is the winner is the incumbent, the loser is 99.9% of the chinese people president xi and his economic team, a harvard trained person and wong sang who had 35 years of dealing with the americans and sophisticated in terms of what the americans want and need >> is there any attempted new policies for the u.s. that's too late or is the chinese already taken what they wanted >> the chinese taken most of what they wanted and a lot of american firms are involved in that and are working the chinese company on programs that the president would denounce just following off the last comment that made in china 2025 contains provisions for increase intellectual property selection. you may say it is talk but i

think it shows the way that china's mind is working and the chinese always have to think lower cost produces all around them who may rip them off one day. >> we have to leave it there >> we are talking about gas and natural gas exports. >> the chinese would invest in the terminal billions of dollars and we would export it to china and you can enter into contract for ten years that could have a material effect. >> it is in the works >> thank you both. steve and jonathan, joining us to talk about impossible outcomes here. apprecia it. >> cnbc.com just p ua story of the real effect of all the proposed tariffs >> we have about 45 minutes before the close we are on a session highs of 123 points ton don the dow it has been a fantastic and

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that cat and intel and exxon is lower. stocks leading the nasdaq higher it was the nasdaq started to encourage the market to rally around about lunchtime when t y celgene and walgreens and shire is hire today. >> josh lip ton is joining us in san francisco. >> there are 1300 categories listed here including a lot of high-tech products like semiconductor machineries and consumer as and electronics are included to. the tech industry worries of further china retaliation given how much business does tech does there. check out this list of the most revenue exposure to china and you will see it is dominated by the semis, names like qualcomm

and qorvo. they do ship their processers to china whether it is assembled into other products or phones or tablets. other notable names with the revenue exposure, we should mentn apple is one and intel and nvidia one question moving forward, how much beijing would want to hurt these tech heavy weights or whether it would mean shooting themselves in the foot after a company like apple does sell popular products and employ chinese citizens through its manufacture operations and 41 retail stores in china >> kelly, back to you. >> josh lipton out west, thank you. shares of spotify is moving lower on their second day of trading. let's get to seema mody.

>> shares of spotify fallen more than 6%. it was steadily throughout the day. spotify is still above its reference price of 132, close to sessions low and well below its peak near 169 yesterday. keep in mind spotify still has a sizable lead in subscriber number compares to many argue of its next big competitor. it is not a great start. spotify debut, the second day of trade, kelly >> i think it is a rip roaring success for something this novel on wall street >> you know it is changing in tune a little bit. >> very funny, we know the real test for these companies come within the first quarter or two when they put out the first report, yeah, they're not making a lot of money >> also, on that price of ratio, it is still much, much cheap than netflix what we said yesrday, wow, what a massive support it is of tech valuations but relative to netflix is low

you said funny but your face did not display that emotions. >> i didn't mean it. >> i could sense that. >> but i appreciate the effort >> dow is looking to gain 150 points a huge turn around, we are down more than 600 for the futures. look at the nasdaq and russell is up right now. mark zuckerberg will face questions. we'll bring you highlights as soon as it gets under way. we'll have more with gundlach and including his take on bitcoin. we'll be back in a couple of minutes.

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welcome back to "closing bell," i am eamon javers chinese tariffs were announced this morning this trade official saying chinese tariffs were in attempt to intimidate the trump administration the trump add mministration wil not back down. described as u.s. effort on trade as a real effort by the united states to get china to change its ways and said that china is good at promises but

not good at delivering on them we'll see whether the tic-for-tac here continues on throughout the week. i talked to a white house official last night suggesting that it is all under is discussion kirsten neilson is briefing reporters right now at the white house's press briefing room and she has said the president and the pentagon are working together to deploy the national guard at the border with mexico as the president discus in the ite house erday. the national guard is going to the border with mexico, more details on that, back over to you. >> eamon, thank you very much on that of the back and forth continues between u.s. and china. we got 34 minutes to go before the bell we rallied nicely the last couple of hours. >> look at that. >> ten minutes backup to nearly

200 points of highs of the day for all the markets. very nice looking charts, steady improvements throughout. 1% high for the s&p. >> still to come, has trade warfa warfare, is now a good time putting money to work with asian equities >> we'll speak with an expert. >> china retaliation could hit our agricultural hard including soybea soybeans we are hitting to a farmer who he says his worst fear is becoming reality

welcome back, to the "acrossi"acros "closing bell," i am wilfred frost along with kelly evans in today's chart showing it nice indeed from low to high. we are at the highs at the day the s&p is up 1% and the nasdaq is up 1.3% >> microsoft is there and boeing is still down about 1.5% it was down 5% or so this morning. it is time for cnbc news update. le let's get over to kourtney

reagan >> the woman that opened fire at youtube yesterday owned the handgun she used, aghdam wounded three people before killing herself. >> there is no evidence linking aghdam to anybody at the scene of time of this incident a semiautomatic handgun was recovered at the scene registered by the conduct. a fire in moscow killed one person and injured six more. authorities vowing to step up fire safety across the country prince charles and wife camila is representing queen elizabeth at the commonwealth games which will begin later in the day. that's your cnbc update at this hour back over to you >> thank you very much for that.

we got 29 minutes before the close. le let's get to bob pisani. >> take a look at the s&p 500, we moved 40 points since the open and more than 70 points since the pre-open right now and you can see it is sitting at the highest. most of the time we see consumer staples and consumer name in general. we got coke and nike and walt disney and p&g if you look outside of that, the companies that are most impacted by trade wars, big name industrials like deere and boeing and transport today we have seen union pacific on the weak side. they're not in positive territory. same situation wh energy stock. this haseen independt of the whole tariff issue of a lagger all yearlong we have seen oil moved up in the middle of the quarter last quarter. $66 or so.

energy stocks never moved. it is an unowned and today of the rally going on, we are not getting any movement up in energy the hope is perhaps these negotiations will yield much less impact in terms of tariffs and trade wars that's the big issue right now >> we'll see you in the close, bob. bob pisani, let's get to our closing bell exchange today. ker kevin nicholson and keith blitz is with us and rick santelli who's joining us from chicago. >> keith, we'll start with you, we had people referring to comments from kudlow and ross this morning we did not spike below the lows from yesterday what do you think is going on? >> i think it is a large dose of trading going into this market right now. we have seen a lot of investors and institutional pulling back

and when you have a market that's susceptible to these micro burst of volatility. why are we swinging back and forth and again a lot of i it -it -- it -- arthur is right, you can look at the chart going back in two or three years how the major index is bouncing back, pick your daily average, 150 or 200 we draw serious trend lines going back five or ten years the machine is triggering off precisely of what you are seeing today. >> technical trading is one factor more broadly when we see weakness in the market because of trade fairs, is that a buying opportunity? is that what the mark et is telling us today >> when you take a look what's going on in the market, bond market never really moved much of the last couple of days what we are thinking is that it

is an opportunity potentlly to st into the market because one of the things that we believe is happening is that china really focused at the president's base and that's because they want to get to the negotiation table we think that's what's going to happen is they're going to negotiate because right now you have china who could threaten to sell their treasury and the u.s. can threaten to not buy their exports and it will take all of economies down and will affect the global market. kevin, what are you guys are buyers up here >> we continue to like international markets. central banks are still accommodated,excuse me, inflati inflations are still low here. we still like europe and like to pan in this environment.

>> tell us what the currency play would be. the yen jumped this morning against the dollar but that move have been reversed throughout the day's trade. >> you know woilfred, i am sorry i don't see the side of it maybe it is apparent down the road the in fallibility of the strong yen is getting away a little bit of the notion of scale of interests and markets and stocks or interest rates make it the currency of an -- it would be a, the best weapon of the chinese and that's the u.s. market ro volatility and the machine that is contribute to that. they did pick a battle today that some what shocked me and i am n thenly one on soybeans. the reality for soybeans are as followed argentina is having a drought and china grows 14 million tons of beans and a fraction of what

it uses, could not make up the difference there is not to make up the difference globally. to take it a step further that when we talk about soybeans, let's say they found some magic soybeans that are unaccounted for and they decided okay, we'll go to brazil or we'll try to see if argentina has a spare few and they'll take it those in the place of u.s the u.s. will send theirs in the place that those beans are going. beans cannot be printed like f etfs in japan or foreign exchange or interventions for that matter or any financial asset that's a paper asset to pick the battle, it would hurt food inflation and destroying much of the infrastructure that processes it those beans are way more important than the chinese economy than what we have to do to tear up a few export receipts

and write a different destination on it. >> i am thinking of magic soybeans and jack in the soybean stalk now. >> however, that would take a long time to retransfer of the exporting of the soybeans. the chinese are clever here. i am sure the white house got dozens of calls from the soybean farmers this morning, it is going to bet both parties to the table and that's what the chinese wanted and they accomplished that. >> we'll talk to one of soybean farmers at the next hour thank you all for joining us keith bliss and rick santelli. thank you all for joining us about a 200 point swing. it has been a steady game from lows to highs. the nasdaq leads to dhachart at

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sarah hucklebee sanders taking question at the white house today, let's listen in >> we have tried and tried and democrats did not want to participate. they failed to show up to do their jobs as they were elected to do. the president has been very cle clear, putting multiple proposals on the table to fix the problem and democrats have not been willing to take a deal. it was a good deal further than the previous administration and frankly you should not be asking me this question or the white house, you should ask senate democrats and members of the house, why they are not willing to fix something that they claim they want a champion day after

day. >> larry kudlow and wilbur ross says negotiations are likely of the way the trade dispute is going to be resoed does the president agree with that make them real as they are not real yet and see what happens. >> we are going through the review period, we have the best negotiator at the table and we'll go through the process it will be a couple of months of tariffs on either side would go into effect and implemented. we are hopeful that china will do the right thing high buo china created this problem we have a president who's willing to stand up and say enough is enough, we are going to stop the unfair trade practices and we are asking china to stop unfair practices and we are going to work through that process over the next couple of months >> these tariffs will take in effect if any change >> i am not going to get ahead

of the process of where we are we are in the review process right now. certainly we expect china to make changes and stop the unfair trade practices that they participated in for decades. >> do tariffs take in effect >> i am not getting ahead of the review process but i will anticipate if there are no changes to the behavior of china and they don't stop the unfair trade practices then we would move forward >> sarah, all of this is taking place represents billions of dollars in real money. is the president worried that this rattling is causing many people in this country to lose money? >> the president is worried that we have countries that are taking advantage of us for decades and he's not going to allow that to happen we are certainly going to have long-tersuccess anwe are focused long-term economic principles and making sure that we have a strong and stable

economy. that's what the president is doing. jim? >> question on amazon, did the pentagon get words of a large, cloud computing -- is this something he would have concerns about of amazon getting this contract and would he intervene in the contract's competition? the preside >> the president is no t invot d in the process i would refer you to department of defense that's something that the president is involved in and it is a process run by d.o.d. for the specifics, i would refer you to them. there is a lot of johns here >> the president calling the deal that they have with the united states postal service a sweetheart deal of amazon, my question is another sweetheart deal, that's the $50 a night

that the payment that scott pruitt paid to a lobbyist that did business with the epa. as you know, sarah, the president promised to drain the swamp, his behavior is seen as swamp-like, why is the president okay with it >> the president is reviewing the situation. we have a chance to have a deeper dive on it, we'll let you know the outcome of it we are viewing it at the white house. the presidt thinkse has done a good job on deregulation front. we are taking it seriously and we'll look into it >> john. >> i am going to stick with the theme to go with another john and i will mix it up >> okay. thank you, sarah. >> two questions last week buzz feed reported that christopher steel was claiming in a report, documents

that the fbi had a second report on the mysterious death of the founder of russian television and former press secretary to vladimir putin he died at the hotel dupont. this report says he was blodgeon >> i don't have anything specific on that incident at this point >> the other thing is do we have a read out from the mexican foreign ministers' meeting here including with the white house staff. >> i am sorry, i could not hear the last word. >> are you asking if we are going to have a read out

>> yes, we are continuing in the nafta negotiation, we felt like we made significant progress and we'll keep you posted as it continues. >> jeff. the president has maintain all along that our focus has been on defeating isis, there we made significant progress since the president took office. under his leadership of the collapse of the faith there, we are continuing to make progress, we want to focus on transitioning to local enforcement and do that over this process to make sure that there is no reemergence of isis and take away some of the progress that we made so that's what we are moving to. as this environment has changed becae of this success under the president leadership, we ar evaluating it as we go

>> did he express his annoyance or dissatisfaction of iran or criticizing the regime >> no, because again, the purpose would be to transition that and train local enforcement as well as have our allies and partners in the region who have a lot more at risks to put more skin into the game certainly that's something that the president want to see happen, it is for them to step up and do more that's what we are working with right now >> sarah >> follow up on that, the president wants to see american troops come home from syria. >> absolutely, the goal is to defe defeat isis and once we do that and make significant progress, when there is no longer a need for troops to be there and we can transition tolocal enforcement and that's the

objective. >> what does that look like? secondly, what did he tell his commander of how quickly he want to see that lay out? >> the president maintained since the beginning, he's not going to put an arbitrary time line, he's measuring actually winning the battle and not just putting some random number out there. but, making sure that we actually win which we have been doing, we'll continue to do that and that determination will be made by the department of defense and the secretary of defense which the president has given authority to do that >> local forces to do more >> training the helping transition to local forces and make sure there is not a reemergent of isis >> sarah sanders at the press

briefing she was asked about the stock market and whether the president is worried about the recent sell-off and volatility. she said no, and they're willing to take short term paying for long-term success when it comes to trade in the china tariff issues >> this is based on long-term economic principles. what a remarkable turn around. it is about a 3% swing whether you look at any of those, we are down and in around 2% and now up 1% a huge, huge in today's turn around >> several overseas markets are in correct territory shanghai and japan's nikkei, it is up 12% and 13% off their closing highs from a few months back our next guest on foreign markets, joining us, michael pervis gentlemen, a good afternoon with

you. i will start with you, in terms of international asian markets in particular in light of some of this trade talks. what do you like most and is it because of these trade disputes or in despite of them? >> emerging markets and china clearly is a big part of that. but, to the extent this gives you another opportunity and you need to take that. it is still the cheapest asset cost in strongest. you got the macro tail winds here the best performing economic market last year, china. i will say more of a rerun of that this year >> ben, are you saying these trade disputes making your conviction to buy the market stronger or are there other potential tail winds that you don't mind of trade disputes

>> it is a chinese corporate about 10%, comes from outside of china. that's pretty much the lowest number of any markets in the world. i would say chinese corporate are immune to this we think it is going to be a bit more consensus and that's going to drive of the earning surprise story. i think it is undemanding right now. >> wheres his accent >> is that also english? >> that's a british accent >> he sounds a little different. >> we do have different dialect. >> michael, japan was positive over night, we asked china earlier who says japan will get hurt because they are a big supplier >> there are collateral damage

here the fallout is the strong yen and the correlation and the negative correlation between the i don't think yen and the nikke have been increased. i would agree with ben, look, at this part of globally synchronized growth is still on which indeed seems to be, the dollar is weak and behaving itself the asian em dimension has been very strong. there is one bigfoot note which when you talk about chinese equity, you have to disaggregate of the new tech names. the etf which is heavily weighed towards that it has a correlation of 0.9 with the fang index so you have -- >> did you have that exposure or want to avoid that >> interestingly the china's

tech names are immune to the u.s. regulatory dynamics those platforms were built in concert with strict chinese regulations. if you like that exposure, china has that and perhaps not so much the u.s. >> ben, quickly, if the chinese mpany is- are people over egging the likelihood that china is going to step back and do they care if these tariffs are imposed? >> ben >> i think we lost ben there and we are tight on time either way, we shall leave it. michael and ben, thank you very much for your time this afternoon. >> he took your offense about your comment of his accent >> i am curious. awere coming right back after

this short break let's begin.

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it is a question of steady improvement down sharply from the opening. s&p is down 1.3. it is a 3% move from open to close for all these markets. fantast fantastic performance. energy is right down there at the bottom both discretion and staple are at the top industrials are near at the bottom there boeing is down a percent, it has rallied and as i bring in bob pisani, a quick snapshot of the international markets which shows a negative >> 800 million to buy and not to sell we get those orders around 2:30. we saw a major impact on moving the market forward i would note that the president sending out his wing man to

argue that this is not as much of a deal as we think. our strategy worked today but the mark is still tenure we moved from the lows this morning to theighs today >> ringing the bell. healthcare trust of america. the nasdaq tlc trading spaces. back to kelly. >> thank you, will, welcome to t "the closing bell. i am kelly evans. we were off more than 600 points you should see some individual names like tesla and the way they whipped around today. the dow at 230 points gained a little less than 1% higher for the blue chips remarkable considering what happened throughout the session and by the way, it was the weakest relative performer

the s&p 500 is up 1.1% and 2644. the russell 2,000 small cap adding 19 points joining me to talk about is david bonson is here ceo jeff gundlach did appear during the halftime report he was talking about his outlook on the market. it was not a positive one. >> we are in the volatile regime that's different for what we experience in 2017 it is pay back time. 2017 was the easiest investment year of all time the risk returns of the stock market were the best in history. this year as i have said before. we are going to have a negative year in the stock market right now we have a negative year in everything except commodities which is the only

thing that's really up >> that was jeff gundlach earlier this afternoon pay back time until, i don't know, what happened midday session today we turned around and we lifted higher and close almost at the highsest est sess. >> you may remember this guy that worked for cnbc, larry kudl kudlow, he made a comment on tariffs and we are posturing and negotiating. >> negotiawe are suddenly remin, the president negotiates and they felt better about that? >> it sounds that i am saying critically of the president but i am really not. these days o f the market, 500 or 700 are big. is he serious? is he really believing about stuff he's saying of of trades d

tariffs. there is guys like kudlow and larry cohn advising the president, we should not be playing around with it >> we heard from sarah sanders a short time ago when she was asked if the president was worried about the loss of wealth caused by the recent stock market volatility. she says no. she says short term paying was seen worth it for long-term success. >> i would not be surprised, but we did move to the highest of the day. >> the markets, they believe really is going to play out. i don't know if you heard, steve bannon says, to hell with wall street there is real great sown-ups ine run that's driving sensible negotiations with china.

>> well, if you listen to what jeff gundlach said, he said some important things we agreed with him completely that bitcoin was the the mrmomer ofhe speculative euphoria. the last three days have been the only day that made sense to us for the last two weeks. while they were bombing facebook and amazon, they bombed every body else. for months, we had the people who are in the way of amazon and in the way of google and facebook getting beat up then all of a sudden, they beat them up and they beat this thing up that were getting beat up the best bids were not things of

depress. >> you saw today's signs of the stock market was picking through zg not throwing everybody out at the same time. >> the most important thing that happened today was lenoir's reported earnings. afternoon merging to create the largest homeowner, their business is booming. what happened was domestic businesses significantly out performed non-domestic business today. we actually agree with a lot of gundlach had to say because you don't put a speculative euphoria situation back together. until the professional buckle and the sentiment among professionals. we are not vaguely close to them giveri giving up. every little drop in this thing, i got to get back into that stuff. >> i just want to make sure that the people saw

we are just showing, lennar closed up 10%. people are forming household builds and the economy is fundamentally fine there is a quite remarkable move when they reported this morning, those earnings at the bottom line, the futures, shares were up 1%. >> they lifted throughout the session today. >> that's right. we are massively under housed. it is hard for the united states economy to be lousy when we are moving from depressed, home building to more full-blown home billing over the next two or three years. it is hard for interest rates to go down when the largest population is going to go out and buy their first house in my cases. >> yeah. >> we worked on that for a while. what has been getting in the way of that is all the capital have been sucked into amazon and

nvidia and facebook and all of this euphoria stuff and they are gettg tribulation and people are missing you cannot succeed of over priced security over five or ten years. >> understood. facebook is still negative on the session today shutting at 2.1% the whole home builder sector is 3% today >> let's move on cayla tausche is joining us. >> there is a little bit of a whip splash coming out of the administration today kudlow and ross talking about how tariffs are just a tool to extract concessions from china, this will end in talks then you have a trade official separately telling reporters that while the u.s. prepares to

accept changes, in the past, china have been good at promising things and bad at delivering things. a little bit of pessimism briefing was largely about the president's new plant to militaryize -- these tariffs if they were to go into effect. nothing would happen for a couple of months when she was asked about the negotiating position, the tactic of the president to you know on one hand promise tariffs and backtrack on that. thwill the won't they, she da did say they are focused on long-term success of the economy. there is one group of trade critics that's absent is congressional republicans who are out on recess.

one group of senate republicans actually was in china and south korea talking about trade with companies and will officials there. one of them put out a critical statement this afternoon senator chuck grassley of iowa, he says he supports action of china. farmers and ranchers should not be expected to bear the brunt of real occasion for t retaliation of the country you can bet that congress is vocal when it returns on monday. for now, we'll see how those talks progress kelly. >> that's a good point, cayla, thank you. we'll see what they do to say about this joining us to talk more about u.s. trade is robert holoman thank you for joining us

what do you think the way the mark wac market watch this morning. it seems to back off to a negotiation tactic >> $50 billion proposed tariff taxes by the u.s. a it is reason to see volatility in the market. the key question is the market may be volatile from day-to-day but chinese retaliation is designed to hit at the heart land of america at airplanes and cars and soybeans and those are the kind of long-term implications that really hit the kitchen table around the u.s. and it can extract the most pay. >> what do you think is the u.s. goal here. what would china have to do to kind of keep this from going

further? >> the u.s. certainly identify problems that exist in china they are real problems what the u.s. have not yet done is suggesting that we would go to war along issues of these trades what china needs to do in response to avoid both sides' inflicting pain. >> david, i am not sure if it will move the negotiating posture of the u.s. clearly. it sounds like this is one of those look we want improvements and steel on oil we want improvement in intellectual property and maybe that leads to more wiggle room of the legislation >> i think so. the problem that we face is one or the other either they are going forward with tariffs and there is going to be contractionary in our

economy. i think there is a lot of transparencies the chinese knows we are trooyig to go. there ha thproperty side should be separatefr the par riftariffs. there are things we can do after those committing the fractions >> you don't think we can use that threat to make them move? >> the "we" is not the chinese in this broad abstract sense it is individual actors that are cheating and we need to go after them and other country >> we could be talking about thousands and thousands of chinese enterprises. >> you want us to go after them one by one >> i want us to go after people who have done something wrong and not after consumer automobiles or farmers

>> pibill >> the first thing is the chinese have borrowed from here to eternity to bill thinuild tht don't produce any rent for them to cut-off selling stuff to us would -- we could exist just fine in the united states of america. i don't want to. i like the trade that we have around the world and i know there will be a huge price to pay but more than any country in the world right now, we could exist just line if nothing came in and nothing went out. we run massive trade deficit 13% of our economy is export >> you take that 13% off, it rounds out to be $1.5 trillion >> that would be a punch in the gut. >> i'm siting in seattle, there is a company called boeing, by the way, it used to be head quarter here i talked to jeff bezos about that they get hurt, no question about

it but, the bottom line is this, walmart sucks in just a ton stuff from china and sells it inexpensively. they have to service their debt. we use the craig mccall rule borrow so much money from somebody that they cannot let you go out of business the last thing you want to do is somebody owes you $2 trillion is take away a way to pay you back. >> all right, let me give the trade representative the larceny wolast word here. >> it is about china building a economy in its country that's where the u.s. have to be specific of what china needs to do this is not a broad attack for

china on a trade deficit this is quite precise but the u.s. have not said what china will and needs to do i think that's the worryfor th u.s. long-term >> all right, we know the bilateral negotiationswill tak place in the next six weeks or so >> robert, thank you, bill, a quick word >> we own starbucks and disney, when their joint ventures with starbucks and the park at disney, they can walk in any day and the chinese totality congress government could announce they don't own anything this their cntry they'll have no legal means to stand on this whole thing astounds me >> that's their choice if stunarbucks wants to make tht choice, you don't think they are aware of those risks

>> i don't think united states investors are aware of those risks. i don't think they realize they have a guy running the country is not going to have to face re-election >> we'll see >> the company, spotify, a different kind of beats from the typical ipo. seema mody is here with an update >> a late day come back of the second day of trade. shares of spotify personnfell b% it finished above its preference prize. a name that we'll continue to watch after its listing yesterday. seema, thank you >> david, in a word, what does this mean to wall street >> in terms of the spotify

>> any ip activities is interesting. i am interested going forward of any investigation of the investitive banking. we hear so much of the improvement and dodd frank reform and goldman and jp morgan and so forth >> i think they want to make sure they stay involved. >> we got to go. bill, would you be an owner of spotify? >> no, the money that went into spotify was coming out of fang yesterday. >> one of the reasons why the fang stocks have been so spectacular is virtually there is no meaningful large tech ipos in a tech boom >> that's true, guys, thank you. >> rowdy discussions david and bill there is a lot more ahead still on "the closing bell." stay with us straight ahead, three sectors

getting caught in the middle of the trade fight between the white house and chinese leaders in beijing plus, the industrials and chemical sectors and, a soybean farmer whose life is on the line in this battle. a closing bell with kelly evans. live from the new york stock exchange is back in two-minutes. you know what's awesome? gig-speed internet.

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i'm gonna stop them. "you're-i'm in.th me." blockers. rated r. welcome back, mark zuckerberg is taking questions on a question call julia boorstin is bringing us highlights the company is facing two problems, first, can they get their system under control and can they make their system to undermine democracy. mark zuckerberg says they did not do enough in the past but they are taking steps now. >> now, we have to make sure we are taking a broad enough view of our responsibility. it is not enough to just connect people we have to make sure that those connections are positive and they are bringing people closer together it is not enough to just give people a voice

we have to make sure that people are not using that voice to hurt people or spread misinformation. it is not enough to give people too tools. we have to ensure those those developers are protecting people, too. >> he says it is an arm's race he did say once they have 20,000 people working on this issue, he does believe they'll make better progress interesting kelly. there will be bad actors out there and it is impossible to fix it 100 back over to you >> julia, thank you for keeping posted. >> privacy of the ceer of facebook problem it is a wide ranging issue for social media and including tweeter. go to cnbc.com, we'll walk you through the steps to find out of all the stories.

after china retaliated against president trump's tariffs. stocks turning positive in the 2:00 p.m. hour and the dow surged 760 points from the lows and closed higher by about 230 24,264 for the blue chips. the sector that's impacted by tariffs were hit harder. morgan brennan and phil lebeau where we begin on the impact of auto and planes. >> let's take a look at the proposed tariffs are from china. this is one reason why the auto stock were under. you are looking at a proposal of 25% tariffs on autos built in the united states and sent over to china that would make a total tariff of vehicles that already have a 25% tariffs to begin with. 50% and they would primary impact suvs and electric cars.

last year, the u.s. sent just over 267,000 vehicles to china it is the second largest export market for the united states the other story that people were watching today, boeing the reason here is boeing specifically has one of the aircrafts that may be targeted for a tariff from china. we are talking about 25% tariff on select aircraft that would be based on weight. not all airplanes are impacted but 757 would have the most exposure also, in part people are unsure of what exactly a potential tariff could be. details remained to be seen. we reached out to the company for a comment, they said we are still assessing what may take place here like so many other companies, they are not saying a whole lot at this point. >> it is not china's fault they

are getting rid of the forest? >> it is you and i driving our suvs >> oh my god >> all right, phil, thank you. let's get over to morgan >> for the broader industrial, prospect of a trade war is a one-two punch. if you were to see a broader trade war, that's something that could cut into broader global economic growth. in addition to boeing, proposed chinese tariffs could impact ge and honey well and all three big area of big business and they also have other segments that could be impacted as well. similar story for deere and c caterpill caterpillar. cat managed to come back in. call it the fear of fallin

demand f machinery that's what drove the stock today. the other group is transport, union pacific and norfolk, those also fell. fedex, air freight business back and forth to asia is a big part of their business. >> caterpillar turned positive thank you. seema has the details. >> 106 u.s. exports could face reciprocal taxes from china. 40% of which are products related to plastics. it is an industry where china is a big player u.s. ka because of the natural gas boom here in the u.s., there has been an abundance in supply of these bi-products that are used in

making chemicals american producers are increasing supplies hoping to sell these products to country like china with the warning on tariffs, that's certainly much more challenging. some of the chemical producers to spotlight enterprise products and 66, all closing down for the day. despite the broader market come back >> all right, seema, thank you very much. >> some of the big american companies are worried they could get hit with these tariffs are implemented. mark zuckerberg is speaking live about the company's issue. lest listen in >> i think it is important to keep in mind that there are billions of people are loving the service that we built because they are building relationships on a day-to-day basis. that's something i am proud of our company for doing and we'll keep doing that. >> our next question

please go ahead. >> thank you during today's disclosure and announcement, facebook explained that the account recovery and search tools using e-mails and phone numbers could use information of all of facebook users. when did facebook find out about this scraping operation and if that was before a month ago, why did facebook not inform the public about it immediately? >> um, we looked into this and understood it more over the last few days it is part of the audit of our overall system everyone has a setting on facebook that controls, it is right in your privacy settings that controls whether people can look you up by your contact information. most people have it turned on. a lot of people turned it off so it is not quite everyone but certainly the potential here would be that over the period of

time that this feature has been around, people have been able to scrape public information, the information that if you have someone's phone number, you can put it in and you can get, you know, a link to their profile which pulls up public information. i certainly think that's, it is have that setting turned on, atl years that someone has probably access your public information this way >> your next question comes slate magazine please go ahead. >> hi, thanks very much for doing this you own a company relying on people sharing data. we know that it could be used in

a manipulative way i am curious what other steps have you taken to protect your privacy online do you use an add blocker or do you sign up for the personality quiz like folks are signed up for. >> i certainly use a lot of app. i don't know if i use that one specifically it is -- yeah, i am a power user of the internet here i think in order to protect privacy, i would just advise that people follow a lot of the best practices around security change your password regularly don't have your response or the password recovery tool be information that you make publicly available some where. look out and understand that most of the attacks are going to be social engineering and not

necessarily people trying to break into security question systems. for facebook specifically, i think one of the things that we need to do and i hope that more people are looking at is privacy controls that you have i think especially leading up to the gdpr, a lot of people are asking us, are you going to implement all those things and any answer about it is we had almost all of what's in there implemented for years and not just europe. to me, the fact that a lot of people may not be aware of that is an issue that i think we need to do a better tool putting it in front of people and not just offer them i would encourage for people to use them and make sure they are comfortable on how information is used. >> your next question coquestiog

ahead. >> that's mark zuckerberg on a conference call with reporters dealing the company's privacy issues julia boorstin have been monitoring everything for us >> it is interesting mark zuckerberg has been asked a couple of times if he's still the right person to lead facebook another reporter asked if he should be the ceo of the company. mark zuckerberg was adamant that he's still the right person of running the company and he says life is about learning mistakes and learn what you need to do moving forward taking broader responsibility for what's going on and the way people's data are being used and doing a better job and learning from their mistakes. a big theme here was this idea that they did not take broad enough responsibility and they want to make sure they are protecting people and encourage

all of their users to understand the private settings and take responsibility for themselves and go through turn up app and etcetera and all the other things you can do to limit the use of data by outside forces. >> we'll see what happens on that call, thank you >> if you are just joining us. here is a look at how you finish up on wall street. the futures are down more than 611 points for the dow we turned around and close higher of 800 points swing tesla closed up more than 7% in this session to. a lot of people are saying small caps are staying safe of all the issues craig is joining us now. ceo thank you for joining us.

>> there are several i think key attributes to small cap that's getting favorable. small cap is under performed for a couple of years and they are playing catch-up the less regulations are big things for small cap and they have more influence there. the repatriation of money and big companies for the last several years, tir forof investment is buying bacesk sh and not investing in a f thing. less regulations meaning more y buy outs and you mentioned tariffs. >> are there 2,000 security in the russell? >> may not be. >> shire is down quite a bit >> not as much coming into public and a lot less out there. >> that explains the big picture tail wind here, you have some specific picks

u.s. steel in particular >> yeah. >> why do you like this name >> first of all, have tremendous leverage on this side. the interesting thing, the stock is now below where it was when the 232 ruling came out. >> these stocks may not have done as you may have thought >> here is six months ago, you thought u.s. steel is going to earn a $1.50 per share >> we are talking about maybe $5 >> wow >> because of tariffs? >> no, because a lot of business are getting better at $5, that is 34 right now and 35 that stock got to trade 50 there is good upside the stock traded 200 in 2008 point not that it will ever do that again >> its got a way to go before. i know that you like floor & der, those are some names that

well can look at craig hodges there, thank you for joining us >> here is a look at some of the biggest moments in of the day in our rapid recap. >> china is striking back announcing $50 billion in retaliatory tariffs against america products >> when the retaliation of chin hit the tapes, we saw 300 points plunged in the futures >> i would take the president seriously on this tariff issue he is openly a free trader >> it is pay back time 2017 was the easiest investment year of all time and the risk adjustment of the stock market and the best in history and this year, we'll have a negative year

in the stock market. >> stocks in the red the dow had been down more than 500 points right now it is lower than 47 points a dramatic turn around on wall street closing right around 24,026. >> he builder lennar of more than 10% aft its earnings this morning. rst, futures had only 1% but it did continue to move higher 3.3% today after falling more than 7% this year. here is david seymour and tim seymour. >> tim, what do you think of the builder? is this the inflection point >> people are worried of interest rates and they trend to trade down

the reality is the most important thing for builders is people have jobs and making more money especially for the ones that's positioning to a lower demographic. giving away less inthe term of incentives that's what the market wanted to see. >> david, what do you say? >> agree >> so, i look at it and say wage inflation, people are going to have more money and be table to spend that rates are not going to get away from us, i am not concerned about that i look at the supply/demand set up it is in favor, i am sticking with them here, d.r. horton. >> it is up 6.5% today >> before we get too carried away and start trading them.

regional againe is getting you look at the regions the lower end is going to benefit the most i look at the economy where you see the improvements and the wage inflation is not that lower. d.h. horton is the best name of the buy. >> even if rates go up a little bit more or a lot more >> you know how they are going to trade valuations are not terribly cheap but someone like pulte group, it is not what i want to be lennar number is really good >> guys, great stuff >> david and tim, catch all of our "fast money. fill lebeau is joining us. >> kelly, you know a few minutes ago, i told you boeing basically said we are looking at these proposed tariffs and had nothing

to say boeing says it is confident that dialogue continues while both governments outlined positions that could do harm to the industry we'll continue in our own efforts to proactively engage both government and build on the recent ashurnsurances and u.s. chinese leaders and product tiv talks are ongoing. it is pretty much of what you expect to hear from most of the company that's impacted by these proposed tariffs essentially saying let's keep talking. hopefully the two sides can come to an agreement so there ino a full-blown trade war >> phil, thankou tariffs on soybeans was one of the biggest concerns one of our biggest export, we'll ta autlkbo the soybean fallout

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welcome back, soybeans future got hit today after china's proposed tariffs on soybeans and more than 100 items. with some kind of trade war legumloo looming, what kind of impact is in stores for us

joining us now is a soybean farmer in romney, indiana. thank you for joining us, is that a trump's country >> yes, it is a republican, indiana tends to be a republican leaning state. >> i am playing around with the words there. >> it has been suggested that china is going after trump's country to punish and put political heat on the president. what are you looking at in terms of the business -- it is an easy target, soybean especially are an easy target for us, what it means, it is a financial hit. it is a direct impact and obviously we saw the market fall quite a bit today.

2% does not sound like a lot when you put in those terms but when you look at the cash value and the small margins of agriculture, that literally is the difference and can be the difference the profit for the year the 2% loss was just today it is concerning >>rett, if i can ask you a personal question. how much do you make farming soybeans every year? >> we tend to look at hopefully a 5% to 10% margin on our soybean products this year we should raise about 100,000 bushel of soybeans that's a million dollar gross in that product if you can make $50,000 on those products, that's good. today we saw 25,000 of that taken off the top.

that's how direct and how quickly the impact of a government can really hit us in the wallet right away. >> yeah. >> and there is not much of a cushion there as we can see. so it raises the question for your livelihood of how do you response rick santelli said to us, he looks at the very big picture and says that is negotiating posture because of a shortage of soybean in the world china cannot grow enough to feed themselves and brazil cannot step up quite enough itself. do you think that's right. there is a shortage of soybeans. what's your experience >> i respect rick and i really like his opinion but i think he's wrong on this one we don't necessarily have a shortage worldwide on soybean. the u.s. da came out on thursday of some of the largest supply numbers on soybeans worldwide

than we have had in quite some time i think the supplies are plentiful. yes, we lost a few million bushels because of the drought and my concern is it probably will work out in negotiations for the long-term and i hope it does the problem is, the government and especially the chinese government because they are good at manipulating and working markets. they can be stubborn on this a lot more than i can be solvent i want to make sure we are aggressive with it and sitting at the table quickly and lets get the decision makers together and figure this out quickly. >> yeah, you understand this whe ing asell as anybody we understand better the hit now. brett, thank you for joining us. >> thank you for having me

>> a soybean farmer in romney, indiana. >> we had a big sell-off this morning but we see a massive turn around this afternoon what the long-term effects of this trade policy could be coming up on fast money, the longfin ceo will join us need a change of scenery? the kayak explore tool shows you the places you can fly on your budget. so you can be confident you're getting the most bang for your buck. alo-ha. kayak. search one and done.

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welcome back we have more news on the china front. elon mui what is happening >> the ambassador to the united states speaking to reporters just after leaving a meeting with acting secretary of state

john sullivan. the ambassador said it is china's preference to resolve any trade disputes through negotiations but he said, quote, it takes two to tango. he also called the u.s./china relationship come prei have and complex and said so far at least both sides have been able to manage the quote not so good thing. during that meeting with acting secretary sullivan he said he discussed the overall relationship between the two countries. trade was pa of that meadet mong he seed toe reiterating the comments he made to cnbc recognizing that the trade dispute could escalate further back to you. >> elon mui joining us with panelists. john, what kind of rhetoric should we expect from china at this point are you surprised we are doing

this tit for tat on the tariffs but is that to be expected. >> president xi was essentially made lifetime emperor two week ago. he has to be tough domestically for his own people when we did our first round of tariffs on steel and aluminum we got back a soft response because we don't buy those ploukts from china. that was pure politics now we hit them with real tariffs. >> none of it has been implemented yet. >> of course. >> this is just a proposed list of things that could happen and -- >> of course the difficulty is, if i'm putting on my investor hat or my ceo hat i have one man on one side and another man on the other side and there is no groups of people making decisions with professional history for skill so it's anyone's guess as to what these two are going to come up with. >> you have to wait and see how

it shakes out. >> i have $10 billion of assets in our portfolio and we can't do capital spending with this kind of uncertainty around. that's why we had a market that went down 500 and up 800 today it'sall over the place. >> ron today it was strange to trace the evolution from this morning, a huge downdraft and concern about trade war and then this afternoon, oh, no it's all just negotiations. >> and that leaves us in a strange spot kelly insofar as if you give away your position after saying you are going to impose tariffs by saying this is purely a negotiating tactic, china can say we are going to wait president trump out, the inartfulness of the deal hard lined in thefirst phase and softer in the second phase creates dissonance out there i think in this administration they don't know how to float trial balloons when it comes to the political process of putting

out poll seem you could say this is something that's on the table or being considered. gauge the market response. and then move on as you are doing this, negotiating simultaneously with china. they don't do it that way. >> it's almost like they pop the balloons before they have gotten in the air then they float more of them. >> amateur hour is the -- >> and larry was the guy who had to walk it back today and say we might not impose tariffs we hope we can negotiate our way out of this. all that does is create a level of chaos not only in the financial marketplace but as john said for business owners and the soybean farmer you talked to ier who has a profit reduced in a coup of second it's not a way to conduct policy particularly in public when you are dealing with asian counter-parts. >> absolutely. and ron, you know, larry is a lonely man in the white house. >> no doubt. >> dealing with his counter-parts, the protectionists the problem is we don't have a team of people here who have

spent time in china. when i want to though if anybody knows about china i count the passport stamps. trade is complicated >> do you agree that we have a point on intellectual property, they have a point historically on china dumping all of these industrial products into the market if there are abuses shouldn't they be corrected? >> of course they should everybody cheats on trade. we cheat they cheat i think they cheat bigger than we do. it is one man economy so they can get away with all sorts of things that we can't rule of law is very thin. >> what should we do >> take a more complex view on trade than just talking about this deficit this deficit just measures stuff on boats >> all right. >> we have services. we have capital in trade. >> we are running up against the end of the show guys we have got to go. ron, john, thank you for joining us this is just one conversation in a whole, whole constellation of trade right now. with volatile day for the

markets. we will recap e thheadlines for you and get a check on facebook news when we come back

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look at this shares of facebook are rallying after hours. they are up more than 3% as

investors digest the headlines from facebook chromatomark zuckerberg's call with reporters which just ended julia boor citizen has the highlights. >> that call ended just seconds ago as mark zuckerberg said that so far the cambridge analytic scandal and all the fallout has not seemed to have an impact on advertisers but they still see it as a major issue. he did accept a lot of responsibility is fault for what has gone wrong but he did stress he believes he is still the right one to keep running the company. >> yes i mean, i think life is about learning from the mistakes and figuring out what you need to do to move forward. and you know a lot of times people ask what are the mistakes that you made early on, starting the company, or what would you try to do differently? you know, i think the reality of a lot of this is that when you are building something like facebook that is unprecedented

in the world, dollar going to be thing that you mess up >> kelly, back over to you >> julia, thank you very much. facebook shares still rallying that does it for "closing bell," everybody. thanks for tuning in "fast money" begins right now. >> "fast money" starts right now live from the nasdaq market site overlooking new york city's times square i'm melissa lee. traders on the panel today -- tim seymour, david seaburg, dan nathan, and guy adami. tonight on fast, embattled crypto stock longfin is unr investigation by the s.c. after what has been a roller aster ride for the stock from a $5 stock to a $70 stock, and then back again. we will have the ceo of longfin venkat meenavalli will be on our show mark zuckerberg doing damage control and speaking to reporters moments ago after announcing 87 million users up from the initial 50 millionhad data misused b