why important? a potential u-turn on tpp and nafta deal, global coordination. this is her job and her bag. >> all right thanks for watching "power lunch. >> "closing bell" starts now >> hi iss, everybody, i'm kelly evans. >> a good afternoon to you two big ceos under fire, a new report prompting safety concerns at allegiant air there's concerns of racial profiling in starbucks the dow is up more than 315 points, about 1% gains right now for the blue chips and broad market the s&p and nasdaq are higher for the year, of course, trying to achieve that amid volatility. we start with bob pisani at the

exchange with an eye on the action for us, bob >> just at the highs today, maybe just a little bit off it, and it's largely due to a relief rally on the fact that the syria strikes were perceived to be pin point and not creating escalation that's number one. number two, the debate about peak earnings is passing the numbers are still good overall. i think bank of america, the selloff on friday because of the bank stocks, this is a sign, well, we are more concerned with 2019 numbers banks are fine today bank of america was in line. it's up about 1% then we have truckers coming in, trading to the upside. you see ryder up, jp hunt had good numbers, all the logistics companies are up that's an earnings story all the companies that are going to be reporting earnings tomorrow are also moving up in anticipation of that for example, look at united health care. that's 7 points on the dow, better than 50 points on the dow in one that's reporting tomorrow. all of the big managed care

names are to the upside that, of course, we have johnson and johnson, another very, very big name out there, and that stock's also trading to the upside that'll be trading out tomorrow as well. timely, goldman sachs right here, that will be reports tomorrow morning, up $3. that's 21 points remember this debate we've been having, a spirited one, 20% increase this year likely for right across the board in all four quarters and others argue 2019, we see 10%, so we'll see earnings slow down, not -- it'll still be growing, but only half as much, and, therefore, a problem with the hargmarkets. it looks like the markets agree with me. guys, back to you. >> bob, thank you very much for that, yes, all eyes on goldman sachs tomorrow, certainly looking at that as well. meantime, health care stocks are up nicely today, up over 1% for the sector partly because cnbc.com has a scoop this morning saying amazon has plans

to sell drugs to hospitals that news sending the likes of cvs and walgreen's higher. >> to discuss this is christina far. thank you for joining us is this because amazon feels more scrutiny from washington lately >> that is one possibility i think the bigger take away for me is health care a hard, even harder than expected for a company like amazon. as they look through the amazon business group, getting into the pharmaceutical supply chain, sources say they found all sorts of complexities including the entrenched competition faced from the dribt istricters, grou purchasing organizations, and it's harder on the hospital side to sell into the space than they thought. they are shelving this after considering it last year they may return to it, especially if they can do

hospital conflicts, it's worth it, but for right now, they are focusing on other things >> they are working on a big project with jpmorgan. do they want to step back from that as well or separate and still committed to it? >> no conclusion they step back from that particular consortium. it's a group specifically focused on marketplace selling bulk items to customers. they might take on the issue of drug pricing, which is a big one right now. within that other group, which is their alliance with jpmorgan and berkshire hathaway they are looking for a ceo to lead the group on decide the strategy, but the drug supply chain is one employers across the cia are scratching heads thinking how can we disrupt this

>> right hospitals, christina, lamented to us the high cost of health care and the supply chain, so why is it the hospitals, sounds like, are not eager to jump into the business with amazon >> great question, kelly because amazon's only selling less risky devices, what we call plus one and plus two devices at this time u. they are not as many options as hospitals would want another reason is just that they have these relationships with distributors and the gpos i mentioned they had for years and health care is a relationship, it's a human driven business it's all about that steak dinner deciding on contracts that last for years, and so for amazon to come in, disrupt that, it's not as easy as it might be in other industries so i think that's where they see some of the challenges, and they are looking for ways to fix that with the hospital advisory board they have amassed which met at least one, according to our

sources, but it's going to take some time before they land huge system contracts that really move the needle. >> christina, thank you very much for joining us today with that market moving story cvs up 6%, and walgreen's up 4% today. go to cnbc.com for much, much more on the story. it's up there right now. check it out news alert on fox news conservative commentator >> fascinating development in the trial in new york, the court proceedings in new york where michael cohen, the attorney for president trump, has been trying to find ways to slow down the federal government's access to the materials that the southern district of new york seized from his office and hotel room a few days ago the cohen has been arguing that these materials are covered by attorney-client privilege. the government has been responding that michael cohen

does not practice that much law, he has more attorneys than he does clients in the back-and-forth on this michael cohen's attorneys said there was a client whose name they could not disclose. the judge in the courtroom ordered the attorney to disclose the name of the client, and who was that client of michael cohen? it was sean hannity, fox news commenta commentator, of course, ripping the seizure of materials from cohen's offices. obvious conflict for a journalistic organization, although he'd say he's not a journalist per se, but it is interesting that the attorney for president trump is also the attorney for sean hannity, leading fox news commentator, guys >> john any other information on what the -- why he retained michael cohen? >> no. we do not yet know that proceeding is ongoing at the moment, but so far not

disclosing what the matter in which cohen was representing sean hannity was >> yeah, john, thank you john harwood there in washington regard leless, of course, w profession the clients are in, could be conflicts there, but if you're are a client, you'll be disappointed either way. >> there's a lot of questions to be answered. that's the latest in that trial happening right here in lower manhattan. two other stocks now are starbucks and allegiant travel with now controversies >> here's the latest on starbucks, but, first, to phil lebeau on allegiant. over to you. >> reporter: rough day for allegiant and investors like the 21% stake in the company taking a big hit today. 6 60 minutes had a blistering report looking at the safety record of allegiant, worse than competitors, pilots pressured to down play safety issues, according to the 60 minutes, and highlighted what they consider

lack enforcement from the faa. in response to this, allegiant says this unoriginal and outdated story bears in resemblance to allegiant's operations today it shows a fundamental misunderstanding of faa compliance practice and history, usually after a story like this, you have the questions will the ceo stay in power? according to one analyst, that's not likely >> the likelihood there's management changes as a result of this is zero. you know, again, the challenge is that that report highlighted were known and they took steps to address them. >> as for the faa and criticism it faced, it issued a statement saying the faa's oversight of allegiant produced results, and rate of incidents to the air traffic organization trended downward in recent years there was an audit down by the faa back in 2016 there will likely be more

questions about this report and about the company's safety record when it reports earnings that is scheduled next week. guys, back to you. >> phil, thank you allegiant down 2.5%, like you said, and it was not the only company feeling the heat over the weekend. the starbuck's ceo kevin johnson apologized for an incident last weekend in which two black men were arrested at the chain's shop in philadelphia >> the ceo said today he'll meet with the two black men arrested at the philadelphia store last week after a manager complained to police the men were trespassing. the men said it began after they asked to use the rest room, but store employees refused and asked them to leave saying bathrooms were for paying customers, they were escorted in cuffs. there's a growing outcry in arrests including protests at the store that's closed and a call to boycott the store on social media the police commissioner said

officer's actions were by the book, but the starbuck's ceo apologized, declined to prosecute, and said the police never should have been called. >> i'm going to do everything i can to ensure it is fixed and never happens again. whether that is changes to policy and practice, additional store manager training, incoming training around unconscious bias, andwe will address this. >> the store manager who called the police has now left the company in what is spokesperson called a mutual decision, but this bathroom policy, guys, is an issue for the company already as customers are coming forward with their own videos and stories which they say demonstrate discriminatory enforcement. kelly, will? >> thank you can allegiant and starbucks bounce back? >> jeffrey, founder and ceo of fellows and author of "why are we bad at picking good leaders,"

and author of "friend or foe," good afternoon what have you taken away from the quality of the ceo leadership in the last 48 hours for both the companies who has done well? who has done poorly? >> it's a tale of two cities, isn't it good and bad things can happen to companies and requires leadership at the top to set the tone everyone's listening and watching body language what did allegiant do? set out a press release. that seems dumb and defensive and overlawyered on the other hand, look at kevin johnson, hunkering down, issued multiple heart felt apologies in layman's terms everyone could understand and on a deeper level, he's actually leading from the top in an authentic way, and i predict that makes everyone feel a little bit safer, and it will probably have good cultural impact with the company overtime >> adam, is that difference down to the fact allegiant feels they were unfairly targeted, and starbucks says the men involved

were >> absolutely. i agree completely with what was just said. i study, how do you put a crisis, cork it back into the bottle you got to be quick. you got to be open you got to be repenting, and remor remorseful >> allegiant seems to say, wait a minute, you know, we have a side of the story not fully told starbucks is not disputing events easier to responds here if allegiant is disputing the events, then what difference should they have taken in terms of the response? >> absolutely. so, you know, they got dealt a bad hand and feel they are prosecuting for something they felt was resolved. it's a difficult situation to be in remember, the single biggest value is safety. they write, safety, above all else and before all else, and in the safeituation like this to be defensive, come out with a press

release to downgrade and denigrate the report and foundation of the report rather than saying, look, safety's the number one issue we're aware of the problems and took steps to change it, but we're going to do even more. here's the things that we're going to do. secure the safety future of the company, and by not taking safety, the very core value of their organization in showing how they are not just going to do what's the bare minimum, but go gabove that and do what's necessary to get the trust of the customers flying with them and investors of them. that was a critical, critical mistake. >> how important is communication with these issues today versus in the past i mean, we saw the share price there of allegiant down 12.5% in the last week despite the analysts that we just heard from saying the issues are out there, and, yet, the stock price is being slammed. >> well, i think communication is everything, and if you look at starbucks, there's no doubt this is going to cause short term pain, but i don't think

starbucks should worry there's an impact culture, and johnson is front and center leading the charge this is ceo activism in da whate people know what they were doing. >> all right, guys, thank you very much. adam, jeffrey, joining us, and allegiant shares down 2 partnersh2.5% 44 minutes until the close near, what, off the session highs, in fact, the high of the day on the dow is 315 points we are up 214 points in the moment, so full percentage gain for the dow. and we're just getting started. next up, a major shakeup in the ad world but is this really the end of the jingle for wpp's martin sorrel plus, getting set for netflix. the company reports after the bell wait until you see how the stock traditionally pairs after reporting numbers. this is the "closing bell" live

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those people who invest in brands and, indeed, innovation in a recession come out of it stronger and do better >> as we see, increasing penetration, it fragments the media landscape. >> and we've seen the multinationals come under heavy, heavy pressure in china. >> the problem in our industry, i think, is the marketing investment is not regarded as investment but a cost. that's what we have to shift >> that, of course, is sir martin sorrel, a fixture at cnbc for years now out of a job he's stiping down from ad firm w wpp this weekend following an investigation into alleged personal misconduct. this is a huge news.

>> humage you saw with what the market did when it opened >> shares down significantly because he's the embodiment of the company and the whole industry that's not to say wpp didn't have challenges already. >> right >> last quarter not so hot >> right >> how significant is the loss >> well, it's significant. i mean, sir martin is wpp. he's tied up in the identity of the company, and as such, i think the shareholders and board will be looking at possibly breaking it up and seeing if its parts are worth more than the whole at the moment. it's speculation remains to be seen >> another reason people cite the fact share prices are off is sir martin does not have a noncompete in the contract >> right >> he's 73, but still very much a young man at heart who wants to keep on working is that a reason the share price is off could cherry pick? >> i can't speak to share prices, snapshot at any given time not really painting a full picture. i mean, yes. he's young at heart.

he's a new dad he's a brilliant guy, he's a fighter. identity so tied up in the company that the words "noncompete" and martin sorrell do not go hand in hand >> there's no noncompete >> exactly >> hewith go ahead and do what he wants >> we'll see what it is. >> what do you think the -- if he's able now to just go out on his own, talking about the problems that they had in the traditional advertising model, what's freedom look like and ability to do something new and unconstrained look like? >> i don't know. i can't speak for what the plans are, what he hopes to do i certainly wouldn't count him out. he is -- >> what i'm saying is because we know that traditional ad companies, talking breakups, some of the pressures from clients and that sort of thing, where would you want to go right now? i mean, what do you see -- >> if you're an advertising

person, which he was not at the outset wanted a marketing services company and turned into wpp advertisers holding company. if you were an advertiser, you look to be a smaller scrap pi person who may be is not going to be the goliath but has more creative treatment and anymonims and ability to change, or your consultancy absorbing everything and changing the game in their own right. >> if it was the end for the marketing career, how would you frame the career overall there's been struggles in the share price the last year, but overall, how do you frame it >> a visionary he took something that no one saw or thought of turning it into an entirely new model it comes mixed, twends who you talk to. some find him to be abrasive, and others find him to be a micromanager

some people find things to be profits obsessed to the detriment of the agencies in the holding company, but on the other hand, he's a brilliant economic mind. i had a few interactions with him, and he talks circles around anyone >> lack of problems for lack of succession planning? >> absolutely. i think so, yeah there's not been a clearly articulated leg -- well, line of succession they have their people in place, but it's a really interesting time what happens next, not just at wpp, but other holding companies that have men in their 70s running them it's a real changing of the guard moment >> it is, brian breaker, thank you for joining us >> thanks for having me. ahead as well, another perspective, a brit, one of the few business leaders with global recognition. >> most prominent. >> yep and big in asia as well, middle east - >> big in japan. >> yeah. he does, he's not just here and in europe, but he's got name recognition wherever he goes anyway >> yeah, he does

35 minutes into the close, dow up 216, off the highs by 100 points hanging on to gains, nasdaq is the under performer. gold mman reports earnings tomorrow, we got those details, and some discussion around those earnings torw. at tcomeomro 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 to "closing bell," news to share with you on nike

we have just learned that antwan andrews left the company this is significant because andrews was the vice president of diversity at nike and comes amid a shakeup at the company. the questions and critiques around the company's grow culture in some bad behavior led to trevor edwards, the nike brand president, actually leaving a few weeks ago, and now another executive departure. this one specifically related to some of the questions that nike's facing as vice president of diversity this has not impacted the stoc or business much nike seeing a lot of international growth and that's bottom line for investors. >> okay, thank you very much for that back at hq. let's look at some other market movers, transportation company, jb hunt higher after posting inline earnings and beat on revenue this morning highlighting volume growth and higher customer rates as a result

up 6.3%. dean foods falling today after falling from sell to neutral citing pressure from the move down 8.4%. other stocks to watch, we begin with tronc, higher that soft bank is a possible buyer for the company. up 11% and goldman sachs bought personal finance company clarity money. they use ai to cancel or lower bills, find better credit cards and set savings goals. they report earnings before the bell they have not disclosed the price, but i was on the call, and they are putting a lot of effort into markets into their consumer banking platform. it's still small for them, but growing very fast indeed, and it's a fascinating era to push into >> reports suggested this is the front for the new services this will be their app in a way, does that make sense to you?

is that the product we talk about with the acquisition >> this for the moment has deals in advertisements and offers from other banks because it allows you to input data or what you got at the moment. you can tell you can get a better savings rate here if you change to the bank, and, clearly, it will continue to offer those contracts, but think in due course just offers people goldman sachs products to improve it it's a small base for them, but it's kind of an easy move in sense because they don't got the cost space others do >> surprised they are going aggressively into the consumer realm. >> i agree it's been, like, a year, and i'm still surprised, but it's growing fast question is, of course, is this something they pushed into because they needed to and it's too late oar something they are just opportune with, and we'll see in weeks and months to go. we have earnings tomorrow, fascinating they will be -- it is a crucial year for them if they do not perform in the newer environment, this different training environment, it's a double whammy they failed to do so, and just looking at the bank of america earnings

this morning, it was fascinating to see equities up 38% in terms of trading, fixed income down 13%, and so clear -- >> i don't know about the forecast feeling good about it? wilfred frost said up 30%. >> could be up that much given the others are a bit soft. >> peter costa is here tomorrow. >> i owe him a beer because others would be sow, and jp was up 7, and bank of america up one of the it's been softer, but equities are strong, great for morgan stanley, and fixed income soft, that's not good, but optimism coming into earnings may be a little bit harder than we thought anyway, they are up today in louisville, the banks having fallen on friday we got 29 minutes before the close. there is dow for you as you can see, banks are higher, gold man on the top row at 1.2%, only two lower, about a percent on the dow approaching the close. 30 minutes of trade left

time for a cnbc news update with sue >> here's what's happening at this time, everyone. president trump praising strength of the economy and his tax overhaul at a small business round table event with hispanics in florida he also warned about electing democrats in the midterm elections saying they want to repeal the tax reform bill >> eventually, thigh want to terminate and raise your taxes, and we cannot let that happen because the country is starting to rock with businesses coming in it's starting to really rock a line of strong storms brought heavy rains, winds, and flooding to the east coast in the d.c. area, especially, this morning. several drivers had to be pulled from the vehicles after roadways were flooded the heavy rains also caused power outages. and my favorite story of the day, researchers say pasta is not, not one of the harmful

carbs to be sacrificed although it is made from refined grains, it is low on the glycemic index, a measure how quickly a person's blood sugar levels rise after a food is eaten. >> this is a source of argument at home, sue >> i know! >> i think pasta's not bad for you. >> it's not. >> what's the word "harmful," certainly, maybe fat p iteninfao cares, but it's not harmful. >> empty carb. >> right that's the perception, an empty carb and perception was it raised your glycemic index quickly, but with dried pastas, they are a slow released carb. i love this story! >> it's not empty at all, but full of joy. >> i do too. >> i have a #called everything i read in a women's magazine is wrong. >> there you go. >> this is the number of features about the glycemic

reading. >> everywhere. >> making pasta tonight. >> excellent >> this city has great pasta >> enjoy, kelly. >> sue, as ever, thank you very much >> you got it. we got 26 minutes before the close, and we are just off the session highs, but beare up 240 points or 1% on the dow, s&p and nasdaq up nicely as well up 1%. big earnings this afternoon from netflix, and as they set to report, a number of trends are emerging in the companies already reporting. are there some bullish signals for the market in e mbs?thnuer reading the tea leaves when the closing bell comes back. so, my portfolio did pretty well last year. that's great. but the market was up nearly twice as much. that's a tough pill to swallow. exactly. so i started trading.

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23 to go until the close, just off the highs, but still nicely higher, dow up about 1% s&p and nasdaq behind it, but a healthy set of returns all the sectors higher, tech and utilities do lag consumer staples, materials, and temcos lead the pack >> thank you watching the dow transimportapon pace for the best day in more than a month discussing this with a 2.5% gain

and more is jack and the chief economist and co-founder of the universal compute exchange, and steve grasso here at post nine, and jeff, chief investment strategist at raymond james. we watch the transports and industrials for dow theory and signs of bullishness you're not sure about the market retesting the lows, but do signals like that today make you think it's an all-clear? >> i don't know about all clear, but i do believe it's going to be very difficult for markets to selloff in earnings season it's an overwhelming tail wind to everything that's going to report, every sector, every space is going to pretty much have a tail wind whether it has a higher effective tax rate or lower effective tax rate a 21% effective tax rate moves the needle on a lot, and nobody's going to really get in the way of the bull while we are in earnings season now, you can say what you will

-- >> bank earnings have not knocked socks off. >> the bank earnings are -- if you look at those through the prism of jamie dimon's comments sayi ining it was an extremely competitive environment and loan growth was not great, so i think people said, hey, the banks have run, just a bit, and if jamie dimon, who is the spokesperson for any and all things financial -- >> jamie was not on the call this quarter >> he's been quoted, not on the call, but extremely difficult and competitive environment. this is almost verbatim what he mentioned, that he thinks it's an incredibly competitive environment, and loan growth is subdued. >> yes >> so if he says it, investors say who am i to say it's more bullish? >> saw that loan growth in bank of america this morning. jeff, one line jumped out, a bearish engulfing patent from

friday's trade that sounds worrying to me is today's move offsetting it a bit? >> i've said on your show many times in the month of january that our intermediate and short term models telegraphed february as a window of downside vulnerability. it arrived on schedule a selling climax february 6th, had a throwback rally, down on february 9th, undercut low or lower low below february 6 low, recommitted cash raised in the month of january, and we think the 25-32 print is it. >> all right we're at 26 today. like you described a boxing match there, jeff, with all the terminology. jack, let's bring you in talk a little bit about rates edging higher, retail sales looking other. what are you watching? >> a yield curve i got to tell you, kelly, i'm concerned about it you are still not seeing that

steepening you expect to see with this action in stocks it's like a case of two markets. you got the stock market doing one thing and you got the bond market, which absolutely, especially on a long end effort curve does not believe the fed, think of it. you know, we've already priced in about two more hikes, the december hike is getting very flakey as far as pricing goes and the way the long end trades, they invert the curve. you know, when you look at the stock market, though, and you see what's behind it and grasso hit the nail on the head earnings season, valuations are better, and you got such great tail winds between repatriation, a lower tax rate, tax reform, just seeing the tip of the iceberg. this could be one of the mays where you sell in may you may regret the day so pay attention to especially -- go ahead >> if all the good stuff happens, if the yield curve is flat, it's going to invert, sounds like that's a problem -- how can they be so out of whack.

>> great question. no inflation that is the problem. in fact, you know, the fed is fighting this invisible enemy that they perceive to be out there right now, and it's really not. i mean, we were looking at some of the numbers coming out, and people are starting to look for inflation around every corner, and it's not there we still have inflationary pressure out there look at commodities. it's why these banks are not doing well in the trading rooms. the commodities are not moving they are one directional and going sideways, and, frankly, not giving volatility they need. that tells you there's no inflation and the fed does not need to be nearly as aggressive as they think they have to be. >> huh >> okay. thank you. >> you're all right leaving it there? >> i was going to fish more, but i have to tell you - >> that's some suit you're wearing there. >> there you go, steve, means more from jack jack, steve, and jeff, thank you, all, very much. 18 minutes to go dow's up 246 now, s&p up 43.

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welcome back, everybody. after the bell today, we get earnings from netflix. shares down 1.5% in the session. according to the data partners, shares moved an average of, what do we have here? 9.6% up or down last eight quarters after those results. >> watching it closely bringing you the results as soon as they come out speaking of earnings, are we seeing a peak in earnings growth is this as good as it gets bob pisani, what do you say? >> no, it's not, but it's the

debate the market's having the peak earnings story. so the idea here is that this year, earnings will be up 18% to 20%. that's a record. in 2019, that estimate falls to 10%. in other words, we're at peak right now. bear in mind, earnings are growing in 2019, but the rate of growth will be lower does that matter at all? my sense is it will in the longer term, but this is the debate not for now, but it's a debate for later in the years, in the third quarter, perhaps. the market has room it go up biggest problem is everyone is expecting big earnings here. now, we've seen this friday when banks delivered in-line reports and sold off, oh, peak earnings. reversed today notice that? this is not a broad worry about earnings peaking the bar is, though, much higher right now, and that's a worry. the good news is they are clearly a floor under the market, trade issues, perhaps syria calming down, good news, and the issue is the fed here. they may be raising, but if

things go bad, they'll deslow raise of increases it's not a fed put, but limit on the downside and could be a cap on the upside because the rfed s raising rates. issue is interest rates. where do they go volatility is back down. i think we start seeing rates move up. we see only one or two nasty inflation reports away from the markets making it a potential big worry. capital was out today talking about inflation moving up as well i think that's what you want to watch. headlines on inflation earnings, i think a good season. back to you. >> yeah. we were talking about inflation too, all eyes on the reports, bob, thank you >> 12 minutes to go as bob was saying, up nicely, 246 points, gaining, again, as we approach the close. we are up a full 1% on the dow >> up next, shares of bristol-myers and merck today, bristol-myers down 8%.

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drug makers watching highly closed clinical trials for drug cancer drugs today we are back at hq with the details. >> it's an exciting day for the field of lung cancer treatment results from merck in particular for its drug are called unprecedented in treating the deadly disease lung cancer is, of course, leading cause of cancer-related deaths according to the american cancer society more than 234,000 americans diagnosed this year, and more than 154,000 people will die from it. because of that, it's a huge market for drug makers estimated at $10 billion to $15 million annually the trial results today released at american association research conference in chicago were highly anticipated by looking at the stocks, you think bristol's results were bad, but they were not merck will keep its lead when given with chemotherapy put

risks of dying by 51%. in bristol's, it's two drugs that cut the risk of death or cancer progression by 42%. the results are not comparable, but they said the results practice changing and analysts give the market share to merck right now. and that's reflected now >> are the drugs adapted at all from the original incarnations already approved for certain skin cancers just the same drug now applied in different types of areas? >> yes these are drugs that unleashed the immune system on cancer cells, approved in 2014 showing incredible results there, and the key now is just figuring out where they work best, and the companies and others are testing drugs in hundreds and thousands, really, of patients to try to figure that out, so they are the same drugs approved in 2014. >> thank you very much fabulous advances there from both companies

up next, right back with the closing countdown. markets, the rhythm of the world. markets, 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.

yes or no?gin. do you want the same tools and seamless experience across web and tablet? do you want $4.95 commissions for stocks, $0.50 options contracts? $1.50 futures contracts? what about a dedicated service team of trading specialists? did you say yes? good, then it's time for power e*trade. the platform, price and service that gives you the edge you need. looks like we have a couple seconds left. let's do some card twirling twirling cards e*trade. the original place to invest online. welcome back to "closing bell," three minutes to the close, up a full percent for the dow, off the day's highs, but essentially up there close to it nasdaq and s&p just behind the best part of a percent for each of them. look at the s&p intra-day, you see it was a positive open we gained steadily throughout

the morning, and the afternoon has give or take held on to the highs that we hit at around 12:00. sector performance today, leading us higher, consumer staples and materials. interesting to see health care doing well after the story from khristine farr, about amazon no longer wanting to challenge in that space, and in certain areas of the space not selling drugs directly to hospitals. as you can see, all the sectors are high today, real estate at the bottom financials second bottom, but important to see that sector higher today having declined friday tech also near the bottom, but it is a resoundingly positive broad rally today. all sectors are higher quick look at the banks, i mentioned, bank of america reported this morning, and it sort of stopped the rot in the sector, so we have got a bit of gapes for the banking sector we got a 0.6% gain there, focused on goldman tomorrow, up a percent today, and morgan stanley to report adds well on

wednesday. look at oil prices, last week, a big gain in oil prices, up some 8% last week, giving back a little bit today, 1.5%, but there's the performance over the last week, still, resoundingly positive for oil prices issue and ending, bob pisani on the british pound up nicely, 0.8% at -- oh,.7% >> predictive observation. >> it is objective >> of course it is >> no reasons why. >> there's the chart, can you read it in. >> it's up because it's the best country. >> of course >> there we go >> the important thing about today is that you're right about turning around the banks, good point. talking about peak earnings friday and indication the banks were down, selling off, go home, and wait for 2019 for things to get better that's not happening also, look how they -- transported up 2.5% today. look at the truckers all up. jb hunt with terrific earnings

reports, dragging up the rest of the truckers, and logistics companies like ch robinson and ryder. stocks have earnings out tomorrow are outperforming a little bit united health, a big performer all day. they are out tomorrow. we'll get goldman sachs, another one, you mention the that one. >> and fang, netflix as well or is that separate >> netflix is the only without a bit of controversy surrounding it in the fang names >> 38% >> biggest outperforming in the fang stocks. that's important overall i can't believe they wouldn't report spectacular numbers, reid hastings knows how to give an earnings call. >> sounds like a bullish expectation there. >> really does -- commentary is amazing in general i think, though, the fact energy is a market leader and continues to be a market leader even on a day like today, it's very important despite the fact national oil well is a

disappointing commentary >> oil down, energy stocks up. there's the bell up 215 points on the dow, in and around 1%. ringing the bell here at the big board, the sow hotel property celebrating the 20th anniversary of the listing that's all for the first hour, and kelly's got the second >> thank you welcome to "the closing bell," i'm kelly evans. gains not as strong as they could have been earlier this afternoon, but dow adding 1%, 218 points today, and s&p 500, relatively weaker than that, adding 21 points, though, to 2677 now, that's right in the territory of putting us into the positive for the year on the s&p. the nasdaq adding about .7% today. it was kind of the underperformer, still closing at 7156, and russell 2,000 adding 13 points for a 1563 close

transports, nice session there 241 points higher. joining me now is michael santolli here and ed weiner, and carry firestone. welcome to all of you. we have netflix earnings in minutes. topping the dow is united health and ge trailed again, and jb hunt transport a winner on the s&p 500, and bristol-myers was down nearly 8% it was the laggard mike, we came in to today, more when we closed friday, a lot of concern about what happens with syria, what course of action the u.s. takes, and that resolve the quickly in terms of the market's reading of things. >> the markets were not clenched up in the weekend, but cautious. we gained that more and more, friday's losses, really methodic methodical, quiet, 1% gain, but

the market in the last, like, five, six days is moving chains forward, not in a flashy way, but putting distance between the market and the recent lows, so i think the repair process remains underway even not with a lot of energy behind it >> do you think because we're in the middle of earnings season, the washington headlines do not matter so much >> no. i think it's actually interesting what's going on because for years and years, you had really no earnings growth, but huge multiple expansion, and now you're seeing the reverse. you're getting a lot of earnings growth, but the multiples actually contracting because of all the uncertainty around washington, d.c. i actually think the headlines coming out of washington are more important now than ever >> and is that because of what is at stake here talking about the president's personal lawyer or because of the nature of the market >> no. i mean, i think that there's real risks to the entire agenda if you have an issue, and so that, to me, is one of the main drivers, and in anything that leads towards potential democratic control of the house

is something that weighs on the market multiple a little bit >> do you agree? what are you watching today? >> first thing, big shoutout to the people who ran the boston marathon today here in torrential downpour and rain in the face >> go dezi, first american woman to win since 1985, huge congratulations. anyway, yes, carry on. very excited >> antastic. so i actually think that earnings are a big positive for the market you know, we seem to have forotd about the trade wars a week ago, the market was collapsing under fear of potential trade war as the treasury secretary said. today, we had good earnings, jb hunt, charles schwab with good numbers today. we'll continue to see good earnings we have a market multiple coming down market bounced off the 200-day moving average up for a fifth day

if we push through that, we have a reasonably good shot of moving back towards the highs so i can - >> all right >> it's comfortable to see the numbers looking good >> all right we have netflix earnings headed our way, but, mike, you have sort of a series of your own here when it comes to the market what's the working title of your netflix series >> for five or six weeks, i've been essentially looking at the market as a romantic comedy plot working title is "when scary met rally", and this is what i mean by the emotion that is behind it this was your infatuation blind love phase here the market was dumped without notice or realizing what was happening. what happens after that? this is a quick little rebound fling that the market had, thinking maybe it was a quick spike, and i considered this all in here as a market having trust issues after a bad breakup, not sure whether to commit, and right here, i feel like it's sort of maybe ready to take a chance

again on something a little more risky. get out there more this is, i think, the emotional cadence we've been in for the year >> what happens next in the movie? you know - >> so is it going to be that kind of movie where, you know, all along you knew it was going to work out in the end and find mr. or mrs. perfect or something darker i don't know i think right now it's slightly encouraging, at least in the last five, six days. >> i bet ian has a take on this. >> no. i appreciate mike describing my adult life as far as my relationships have gone, but, no, i think that ultimately it's going to come down to earnings and if they are good enough, they hang in there with buybacks, et cetera. a large shoutout to friends in l.a. it's 80 degrees, enjoy the weather. >> exactly what about stocks you like in the environment? where do you think the best place is to invest right now >> well, you know, it's interesting. we have this little setback with

the tech stocks, and so some of them are reasonably attractive if you look at what's happened with alphabet, facebook, several other big tech names, paypal, for example, they have come down, and i think our reasonably attractive right here, some of the industrials look good, and, you know, we own a company that's a restaurant equipment company, cme group, there's a story today, it's an old case. i think they'll resolve that i think that's an attractive name you know, you can look through sectors and find in energy, we have had a terrible year in energy, and we don't own stocks, but they are nicely performing so far in the last couple of months, so, you know, we can stick with what we see as attractive and good earnings coming through >> what do you think of the fact earnings season kicked off with a wimper here in terms of the response friday and a little bit today? >> well, i mean i think a lot is

positioning. people were long the financials coming into the earnings reports. so i think it's really a question how the street is set up there's quantitative trading going on right now, and what you saw today was just people lifting the s&p hedges because the world did not end over the weekend, but it comes down to that, and i think people just got trapped on the long side the numbers were good, but it is a question the not good enough given how they were long those stocks >> is it a fair tell -- so do we set banks aside, mike, or is it emblematic >> the banks did catch a bid today. charles swschwab is good definitely wait and see another two, three days. >> scwab up 4%

>> it's capturing everything important for the market to work short term interest rates going up, good for schwab and risk appetites and investor flows and things like that and the market itself seemed like it was a -- hard to get bearish on the market when schwab is doing what it's doing today. >> we have netflix today we start to get more of the big tech companies, better read of industrials, and, you know, those parts of the economy, but do you think the positioning is similar to what it's been? >> it's very hard to sort out because estimates are high normally they are caught in reporting season giving companies the ability to give that typical beat. i wonder if you have the margin making it easy for them to beat, however, stock prices are down difficult to stay how the market is set up relative to how the earnings are set up. i think when it came to the banks, trading was not good enough to overcome the other

vats, but jb hunt today in trucking sends the sector flying >> justified, you think? >> i mean, the transport sector trades like kind of a quick silver, you know, etf almost the whole index gets ripping from time to time, so, you know, it's justified based on how they had been on the defensive here, and, you know, i think the numbers were fine for jb hunt. >> as we mentioned, best performer in the s&p, up 6%. before we move on from it, do you think it's telling in any way that charles swb chwab is having a great day i don't know, we'll see, but in terms of expectations, is this a main street versus wall street revelation here? >> well, it's interesting. this is a company we own well and organic growth up about 8% today. we liked what we saw it doesn't necessarily translate into the big investment banks. it might deals have started to pick up,

and there's deals with imminent ipos and growth in the world that could translate the asset management business is good for them. i think that there's been a lot of connection that schwab schwab has had. that's helped the stock in the last few months. >> all right let's talk about roku. shares are moving after hours, leslie picker has news there leslie >> an announcement that espn plus is going to be available for streaming through the device according to a press release, espn plus is bringing mlb, nhl, mls games and grand slam tennis to the device. you can see there, shares up about 3.7% in after hours trading. back to you. >> leslie, thank you ian, what do you think we have to look and see if shares of disney move. if it's good news for roku, how are investors viewing prospects for this kind of spinoff digital

network they are giving a try to here >> yeah. i mean, i think, actually, it's interesting to see what netflix has to say that disney is pulling content in the next year or so, but, yeah, right now, there's a big experiment happening at disney, and i think it's to be determined as far as how that plays out >> got the kobe bryant offering, but so far they want it to be a tack-on service and not, you know, meant to cannibalize core espn, and at the same time there's roku up 5.5% after hours today, and reports about comcast adding netflix to its bundle where is this headed >> well, i mean, i think it's headed to which businesses can sustain this kind of content acquisiti acquisition? i mean, i think the bear case on netflix and if anybody cares about it today has clearly been willingness to spend like

drunken sailors on content and people gave them a pass. at some point, you reach a critical mass of content, and, you know, maybe there's not enough romantic comedies left to watch, but i think we're at a point -- >> could never be the case >> well, we're at a point where we'll see. amazon -- everyone's getting in the game and we're to the point i'm not sure there's that much more upside. >> mike, only thing, quickly, i want your thoughts on here, is is it a big deal for roku to add espn plus and make this a scarce asset? i mean - >> no -- >> the point is to make it - >> i think maybe the reason the stock is benefitting from it is there's a sense that roku could be the neutral third party bundler of internet tv so it would just be a vehicle for all the apps to reside on that's not part of traditional cable companies. >> does comcast move to integrate netflix suggest they take that route themselves >> within their territory,

right? i guess the question is, are they going basically able to go on a web-based, you know, basis and compete with roku. >> any reason if comcast and charter do it in their markets -- >> question is, is there enough room for roku in that? i thought the big runup in roku from the beginning was all about this complete scarcity of ways to play internet tv outside netflix proper >> right >> so you know this is the way the world's going and there's a limited -- >> not comfortable with valuation of netflix, you look for other opportunities. we expect to hear from netflix, itself, at any moment now. sean hannity revealed as cohen's third client we have the latest john, remind us why we were looking for the third client in the first place? >> kelly, we had been looking at this because michael cohen's

offices and hotel rooms were raided by federal authorities from the southern district of new york as part of the investigation into michael cohen's behavior and he's tried to claim attorney-client privilege. question is, how much of an attorney is he, really we thought for a while the most interesting thing in this hearing would be the appearance of stormy daniels, who, of course, is battling with michael cohen through her lawyer over the nondisclosure agreement for her claimed affair with donald trump. we got something much bigger because the attorneys for michael cohen were directed by a judge to claim there was attorney-client privilege involved in the materials, by naming a client they had other than donald trump. in the republican fundraiser who had a nondisclosure agreement with a mistress michael cohen

negotiated they revealed that third client was sean hannity, fox news commentator, weighing in very b p much, although hannity does not necessarily describe himself as a journalist now hannity has responded to the disclosure in a tweet saying that he did not have a formal relationship, did not get a bill from cohen, that cohen did not represent him in any legal matter and also made clear that it did not involve a third party trying to make it clear to his fans and viewers that there was not a mistress involved as was the case with donald trump so he's said that i thought they were confidential conversations, but he called him for some minor

legal discussions, advice on particular matters, we'll see what else comes out through those materials, and, of course, we're going to wait and see what the judge decides on whether or not she's going to slow down access of federal authorities to the materials, which are now being sorted to rer remove thmo that could involve attorney-client privilege. >> thank you, john harwood kelly, netflix shares rising after hours trading as the company reports better than expected subscriber additions, announcing u.s. net additionings are up 1.96 million. international net additionings of 5.46 million, about half a million more than estimated. you see the stock now trading up nearly 7%. earnings coming in at 64 cents a share, right in line with expectations analysts' expectations, revenues

beating estimates by a hair. now, another factor that's driving the stock higher after hours is the company's outlook for the second quarter the company saying that they expects to earn 79 cents per share in earnings per share in q2 now, that's versus expectations of just 65 crepts per share, so better than expected revenue for q2, the guidance right in line with expectations while it's really subscriber numbers that are expected to be much better, stronger than analysts have been anticipating company expects to add 1.2 million new cruiusers in the u., and 5 million internationally. all together, that's about half a million more than expected, so, really, showing ongoing growth in the u.s., an area where analysts and netflix

itself sees the market become saturated. as it's diversified in the don't created, it's not just one show driving growth, but they have between 7.5 and $8 billion in content spend this year across a wide variety of formats and international production continues to increase with big nonenglish originals we'll dig through the release and get back to you with more. >> all right, julia, thank you very much. more on this after a quick break, ian, you have the final word on this one netflix up 6%. >> tremendous quarter. not much else to say absolutely crushing it i do think the one thing you have to be worried about is if rates start to go up and people get concerned about massive debt load they have then you may see weakness in the stock, but for now, they keep buying >> all right, guys, thank you very much. ian, carry joining us today to talk about the markets more ahead on netflix and on

"closing bell," stay with us ahead today, one ceo caught in the trade war perhaps like nobody else he sells pork and chicken to china. see where he stands now. plus, wait until you see the security bill for facebook's mark zuckerberg. no not his cyber security bill. his actual security bill thneyoe omlosing bell" livfr e w rk stock exchange with kelly evans. when i grow up?

i want to be someone who ... makes the world beautiful ... and builds up my neighborhood. i want to be someone who helps others ... and teaches them new things. every year, comcast employees and their families come together on comcast cares day to give back. it's a celebration of their year-long commitment to their communities. what do i want to be? i want to be someone who cares.

welcome back julia is digging into earnings, shares up 6% after just posting these results. >> interesting details company is investing in marketing of the new original titles to create density in viewing and destination around titles, driving the water cooler conversation another interesting fact here is one factor driving growth both in the u.s. and abroad is bundle offering bundling in netflix with other products, such as with comcast here in the u.s., and with sky in the u.k., and, kelly, just worth noting, international segment now accounts for half of

revenue in 55% of memberships, pretty impressive as netflix hits 125 million subscribers this quarter back to you. >> ramping that up quickly thank you, julia for more, we bring in ed lee at post nine with us, and david trainer from new constructs, and ross gerber from gerber kawasaki to talk about the company. look, a couple things here, they are 43% year on year revenue growth this is an old company now, and the number is getting better and better >> that's why the multiple is going up they are spending for the future, right? they are content spend negative free cash flow keeps going up, so sometimes you are tagged for that, but evidence in the numbers, their top line is growing and on the earnings, and surprised by subscriber gain, actually for this past quarter that they are talking about tends to be softer the bundling is working in, you know, the spending seems to be working. >> yeah. that's the story in terms of the upside right now

first of all, not a huge move, 5% up. yes. nice to see it >> as we said, last eight quarters was 10% >> exactly below the highs from march, but, still, the republican is right now at this valuation, the question is, exactly when do they double subscribers globally that's how you think about it based on capitalization of the company. >> because priced in >> well, something like that you are getting to the point of 300 million subs, and if you accelerate more than expects in any given quarter, maybe the path is, you know, more direct >> and it's a distribution company of the that's how to think about it, right? think about content spend that drives subs, but 125 million subscribers, that insane few companies with that amount of credit cards on hand every month going into their - >> market volatility in the tech stocks, netflix itself up big this year, ross, what do you think about this as an investment after the numbers >> oh, well, it's just amazing how well they are doing as a

company in every level and proving their international strategy is effective as well as their content spend is well-spent so far, and so i think as an investor you have a challenge because the stock is so premium priced, you know, and you are pricing in a lot of growth into the future so i don't know this is the place i'm a buyer of netflix in fact, we're not as a firm >> you own it, though. >> yes, we own it and it's wonderful, but, you know, we have to find value stocks. compare disney, which is doing all kinds of interesting things at 14 times earnings versus netflix -- >> i know, but people said that for years. >> i know. me too >> what about company size 135 billion for netflix and 155 billion for knenetflix. >> wow, holy cow >> it's amazing. >> i have to think about that. david trainer, what are you looking at >> free cash flow. spent $2.8 billion last year

only got $2.7 billion left i don't know if this story's sustainable. you said the valuation is already pricing in a lot of growth and a lot of customer growth we did the math. justified 312 bucks, right, in it yesterday, talking 2.6 billion customers baked into the stock price. if you assume subscription prices stay where they are today and margins stay the same. valuations ahead of itself >> i think the subscriber base -- >> i don't know if you can sustain the base >> the price has to go up. definitely in terms of the investment thesis and in terms of the business thesis what they go for, price for consumer has to go up i'm at the $14 month plan. >> transitioning people there. >> that was back in object or november, but it's going to go up again has to, right? >> it will it will for sure even if the price doubles, talking -- >> where is it going >> slowly. >> if it's 40, that's not

enough ross >> it's going to go slowly because they don't want to shock anybody. but hbo is $15 on your cable bill, and netflix is a $20 minimum in my mind better than cable and it's $10 it's crazy >> well, $10 for now >> now, but i think given the how big a base they have, i don't think it flashes that heavily on to their monthly bills, so everything is more expensive these days they afford to go up to a $19 or 20 and not lose many or cut into growth >> no ur jgency now, though, the market is not allowing them to have to worry about it i do think they have won the first big battle, the default internet tv app. outside the bundle, it's like that's the one you get if you get any of them. there's a lot of people. >> yeah. >> and the bundle is the profit

-- >> it's not either this or cable. as we know now >> the cable bundling is huge. this comcast deal is huge for them >> if it makes them realize the price is going up to 40, then -- >> also, because, it tells you people are watching netflix on tv screens, not on their phones or tablets or computers, and that's why bundling is key and how they get - >> all of this - >> into the subs >> guys, thank very much ed, david, ross, great discussion shares hanging on to a 6% gain after hours for netflix. meantime, you won't believe how much money facebook spent on security for the ceo and how it compares to other top tech ceos. those dedails when we come back right.

welcome back dow up 212 points on the bell today, less than .9% of 1% gain. nasdaq up 49, russell up 14, and netflix up 6% after earnings earlier this hour. time for a cnbc news update with sue herera, sue? >> thank you, kelly. the new york times and "washington post" won pulitzer prize. trump calling the investigation a witch hunt bill cosby's primary accuser andrea constand continues testimony. constand denies knowing or ever speaking with margaret jackson

who says constand spoke to her about framing a celebrity before she accused cosby of sexual abuse in 2005. stormy daniels attending the court hearing for president trump's personal lawyer michael cohen in new york. daniels' attorney says he believes the evidence seized from cohen could possibly be a big problem for the president. look at this a police officer in louisville is becoming an internet sensation after leading a family of ducks to safety diana louis saw a mother duck and babies trying to cross the road, so she stopped rush hour traffic to help the ducks cross and get to the other side. >> oh. >> and even though it was rush hour, there were basically no drivers getting feathers ruffled. >> that was boston common -- i saw what you did there, sue, make way for ducklings >> exactly, yeah, in the boston commons, there's the statue of all the little ducks

my kids used to love to play on those. >> so cute >> i know, really is >> love it even if i was in the traffic, i would have been okay with it >> i would have as well. >> thank you >> have a good night >> you too, sue, thank you very much facebook raising eyebrows how much money they spent to keep zuckerberg safe a new record for the cost of personal security ever paid by a company. according to company filing facebook spent $7.3 million last year on personal security for zuckerberg up 50% from 2016. they say that's the largest sum ever for a fortune 100 company, quote, by a wide margin, and it works out to $20,000 a day to protect him. now, by comparison, bezos spends $1.6 million, and ellison at sr..5 million, and tim cook, security expenses of $224,000, and berkshare hathaway spent

$387,000 google does not disclose the numbers, and sandberg spent $2.2 million on security last year believed to be the second highest among all fortune 100 companies for 2017, of course, just below her boss. now, why the big increases well, in the filing, facebook said costs were necessary to, quote, address safety concerns due to specific threats, and facebook paid to install security systems at his various homes, so they don't list the number of security guards who are protecting zuckerberg, but reports say there's a team of 16 guards working in shifts at the palo alto home another reason that may have gone up last year is, remember, he took his famous road trip across america to learn about the rest of the country. that may be why his private jet costs also went up to dp$1.5 million, up 75%. guys, back to you. >> robert, thank you mike, i did the math, that's

$19,000 a day. is that right? >> seems generous. >> i don't know how to price the things other than relative >> i don't know if there's any kind of play in how you can account for these things - >> is it really security >> companies lump more in there than others, but it's stark. >> $19,000 a day to protect the zuck costco weathered amazon storm, and the stock is outperforming amazon over the past month up next, fast money traders tell you whether to cash in right now. plus, the ceo of purdue farms, one of the nation's largest poultry producers says how the potential trade war could impact his industry and your wallet at sllheth'sti aad

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stocks on track to open higher on the hopes that the u.s.-led missile attacks on syria will not escalate. the focus returning back to earnings >> bank of america reporting first quarter results this morning. the bank beating on both the top and bottom line. results helped in part by improved loan growth >> look at the target in a context of the economy that's growing and expects to continue to grow, the stock market valuations are not unreasonable. >> shares of wpp lower after its

long time leader sir martin sorrell steps down following allegation of misconduct starbuck's ceo, kevin johnson, issued an apology following a weekend incident seeing two black men being arrested amazon shelved plans to sell pharmaceuticals and focus where it's already operating dow up triple digits, crossing through the average for the first time since march 13th. gains not as strong as they could have been this afternoon, but adding just under 1% and costco got a bode of confidence today stock upgraded to outperform by wells fargo, and tim seymour is here now, stock up 3% in the session. that's good, costco outperforming amazon over the past month you know i love me costco, tim, do you >> i don't know that i love me some costco. e-commerce business is a tail

wind in an industry with a lot of structural challenges between labor costs, obviously, online, but that's growing 30% these guys have tremendous gross margins at 11%, setting them ray part from the peer group and winning on price love the treasure hunt in the stores i don't know what you shop for, but it's great >> you know what the definition of wishful thinking is, kelly? the 87-year-old guy in the toilet paper aisle buying 24 rolls and bringing it home >> why did you have to do that >> i thought we had to get 72 at costco >> saying this about costco, it is on valuation extensive stock. 20 times forward earnings. march comps up 9% almost they are crushing comps. rof report at the end of may are you going to stand in the way of the thing into earnings don't do it. goes higher from here. >> what say santolli >> always expensive. always is. the game has been to maybe wait until it stumbles a little bit

i could see -- >> it did a little a couple months back. >> i see the argument it is slightly insulated from what plagues retailers which is rising wage costs because they always pay their people more than minimum wage, right not coming off the low base and keep people for longer i can see the long term story still in tact, and also a small business play. >> i ordered off the website, too, tim, e-commerce, do you think they need to get it right there? last word. there yes, they do need to get it right renewal rate for the club is key here, so they win with the people in the store and online >> and in aisle 24 >> selling a half million dollar diamond at costco, who is going there? >> we've done enough today >> i almost got an ipad there the other day. >> come on >> no, really. it's the best deal in town anyway, guys, thank you. we'll let you go i will not address the toilet paper either tim, guy, catch all of "fast

money" at 5:00 p.m. eastern time purdue is synonymous with chicken in the u.s., but there could be a big impact on athnoer product. the ceo joins us on that next. your letting go thing. your sorry not sorry thing. your out with the old in with the new, onto bigger and better thing. get the live tv you love. no bulky hardware. no satellite. no annual contract. try directv now for $10/mo for 3 months. more for your thing. that's our thing. visit directvnow dot com

that's it. i'm calling kohler about their walk-in bath. nah. not gonna happen. my name is ken. how may i help you? hi, i'm calling about kohler's walk-in bath. excellent! happy to help. huh? hold one moment please... [ finger snaps ] hmm. the kohler walk-in bath features an extra-wide opening

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or his company, the boring company, is building and filed the paperwork to raise $12.5 million in an equity offering. not a lot of details in terms of how many people will actually be a part of this equity offering, but, again, plan to race 112.5 million according to the filing. yet another example of what was once considered sort of a quirky side project for musk becoming increasingly looking like another business for elon musk >> just did a bunch of fundraising with spacex too, right, i believe been there too as well >> yep >> any concerns about the stock after the bankruptcy tweet doesn't seem to be dogging musk in general here. >> no. no >> phil, thank you phil lebeau there bringing us up to date on the boring company. >> perdue farms know for chic n products and pork, and the product is in the crosshairs of

the trade war between the u.s. and china. joining us now, randy day, ceo of perdue farms and great to have you with us >> thank you for having me >> you have a unique point of view on the trade situation. is it just that any tariffs are bad tariffs? >> well, we believe in free and fair trade, but the reality is we don't know how this is going to turn out, so we're not overly concerned yet. we need to wait and see how it plays. and export is important to us, but it's a relatively small part of what we do. the bulk of the business is domestic >> how big is the pork business? >> the pork business, we're a small pork producer. we have one operation in iowa. we have some wonderful products. you know, our vision is to be the most trusted name in premium proteins, so we don't -- we're not a huge business, but everything we do is premium. >> do you think you could benefit, then, if some of the lower cost product takes, you know, that tariff hit and is less competitive >> our consumers are looking for the high end products. for example, everything we raise

is no antibiotics ever three years ago, we took 100% of the chickens down that path. we're also headed down a path of elevated animal care this summer we'll have our third animal care summit in sulsbury, maryland >> you have announcements in that, in fact. >> several in that regard, and bringing together animal rights activis activists, customers, farmers, and academia, and we'll be discussing elevated animal care. it's a great dialogue. >> you have a new product line, as well, in organic to tell us about? >> we do we're the largest producer of organic chicken in the country organic food is growing in the marketplace much faster, 12 times faster than conventional, but chicken is not the reason it's not is because it's too expensive so how do we make it more affordable that's the journey we're on to make organic chicken more affordable so that more people can buy it >> yeah. >> you know, food that's good

for you shouldn't be out of reach from the average person. >> how do you do that, though? isn't it just scale? >> not just scale. the big costs in raising organic chickens is the feed how do we take costs out of the feed, and it's really going to be a focus on the supply chain, taking costs out and improving logistics. >> huge news on eggs, huge recall how closely, since you have the chickens, and that's about the eggs, do you have to watch for salmonella issues? >> well, salmonella is a challenge with any food, like, any microorganisms, food to you, it's food to them, and so we have to be diligent. the way we've converted to no antibiotics ever is by changing how we grow chickens all the way back to the breeder farms, the hatcheries, you know, one of the largest users of baby wipes in the country. >> of baby wipes >> to clean eggs >> you use baby wipes to clean eggs >> that's right. that helps us go with no

antibiotics ever >> that can't be cheap >> well, nothing's cheap about it, but it's what we are >> are the -- the bigger producers, i assume they see this growth rate in organic, and they say, well, we've to do tha too. you see that outside the proteins area, where, almost everything in the cereal aisle looks like it could be organic or something like that i wonder if it maintains premium plays? >> oh, i think it will i think it will. it is expensive to produce it's not going to be around if it doesn't to some degree. the challenge is to bring the premium down so more people can afford it. >> and do you think the industry has moved past its issues about chicken pricing collusion? concerns that consumers and the supply chain had about whether that chicken dock pricing was trustworthy? >> still pending litigation out there. i can't touch on it, but we'll have to see how that goes. >> all right, randy, thank you for joining us >> thank you for having me

>> randy day, ceo of perdue farms here today baby wipes, surprise the easy la falling today despite the rally in the broader market why the automaker is in some hot water this time. that's coming up also, ahead on "fast money," the man behind the bitcoin tax selling theory will reveal why he thinks bitcoin could triple in price this year s. 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? in the 2018 lexusxus saes and es hybrid.standard lease the 2018 es 350 for $399/month for 36 months.

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welcome back, everybody. we haven't done this in a while. it's time for the takeaway

and today, michael, we begin with "the new york times" saying an ipo wave is coming. the pipelines are full, and the success of dropbox means a ton more public offerings could be on the way now, we've heard this before how big a wave do you think we'll see? and does it really count as one until we start talk about uber and airbnb >> it's still kind of selective. the fact that we know of or knew of almost all the names coming out. they're of a good size that they're not just the deal of the week kind of thing. so i think there is a chance that, you know, it's time for a lot of these considering venture funding probably peaked four years ago. which kind of had the crest in 2014 we had this unique kind of double wave thing going on. >> it's almost like you had a winnowing process in the private market so the ones that are ready are really ready to go it does lead up to something in 2019 for uber. which is almost it's going to feel like alibaba. it has a tremendous lead-up,

huge, but then you don't know. alibaba has been a monster since it went public. >> it has. that's a good point. tesla down more than 3% after a report alleged the company undercounted workers' injuries to make its safety record look better the report says compromises for safety were made to fit with elon musk's preference do they add up over time >> they're certainly starting to add up last week the focus was on the balance sheet and the issues at tesla. i think it's gone from a stock where people just had this willingness to believe, you just had to see the vision and buy. and now it's the other way around where the company now has to prove on the production side and elsewhere. >> but musk, he still has the touch. the boring company is raise mortgage than $100 million phil just told us. >> it's of amazing i don't know if that's bullish for tesla or no. >> man investors are going to have to

find a new favorite acronym. they want to ditch the f in fang trading lower in sympathy after facebook's privacy scandal street still agrees they're the better of the bets they'd have to call it nag. >> that would be a better way to rearrange. >> i think the story means that the f stays in fang. >> obviously it's a little farther off its highs, facebook is, than the other ones. but it's almost too obvious twhiet be in the penalty box for a while. now i think it's interesting that the stock bottomed not when mark zuckerberg appeared in congress, but when the company said he would appear in congress it's almost like the market saying okay, finally they're trying to move past the situation. >> we're not going to talk about nag any time soon, i don't think. a rally on wall street today. 'lrep the big headlines. check on the after-hours movers like netflix, right after this [fbi agent] you're a brave man, mr. stevens. your testimony will save lives.

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let's get a final check on the news making headlines after hours today. specialty materials maker celanese is trading higher thanks to strong, get this, acid

prices in china. shares are up 5.5% shares of roku announcing after announcing espn plus will be available for streaming through its devices now. of course, that gives its viewers access to live sports. roku will have more 5 and netflix nearly up 6% as well that streaming giant reporting better than expected revenue in its earnings a $2 million increase in u.s. subscribers and strong second quarter guidance they address the can issue in the letter he says because netflix can't be at cannes. the letter says we can't because a french theatrical opening is required and french law says if the film is in french theaters, it cannot be on a streaming device for three years. >> that's right. they enforce a very strict window it's hilarious >> i thought it was just oh, we want to be purists. >> there is a regulation for it. >> of course >> everything. although it's funny because it comes after steven spielberg said maybe they shouldn't be able to be at the oscars.

>> excellent point. >> people are trying to dig in their heels. >> i suspect netflix will somehow come out on top. certainly the shares are up. that does it for us. thank you, mike, as always "fast money" begins right now. "fast money" starts right now. life live overlooking times square i'm melissa lee. david seaburg, dan nathan, and guy adami. tax day is tomorrow. and it could provide a huge boost. the man behind the tax selling theory tom lee will join us to explain how high it could go plus, it was a wild weekend for elon musk, on twitter at least. tweeting onion articles and even pictures of tequila. this is a company faces new safety concerns at its production facilities. we've got a special report but first we start off with netflix, the best performing with the s&p 500