and that stock a lower as well it was seen as a low quality beat this is a group that does have a lot of growth. >> they need a tissue for today's performance. >> there you go, some tissue margin thank you for watching "power lunch. >> and "closing bell" right now. >> a triple threat for stocks, oil near $70, and gas prices surging, and 10-year close to 3% we assess here on the closing bell what it means for the stock market, and, plus, google reports at 4:00 p.m. after the close, that and much more coming up as the "closing bell" starts right now. good afternoon, and welcome, everybody, i'm wilfred frost at the new york stock exchange, downtown, and kelly evans at at the sohn conference uptown

>> several interviews today, we have social capital joining us, talking big ideas for the market, and we know his ideas unveiled here earlier impacting that stock getting into that. later, nathan august joins us, where he sees opportunity, and, also, we're going to talk to lakestreet, those interviews coming up on a beautiful day here uptown. wilf >> also beautiful downtown, kelly. as you said, we are separated, but excited. there's a huge show coming up, and moments ago as well from that conference, kelly, the bond king was on "power lunch", and here's what he had to say about what rates are telling about the market >> at 275, which it was, and two years down to 2.25 it's that that exciting for 50 points to take that amount of rate risk so maybe the curve does not invert this time, but tells us, certainly, you know, that there's something to

s.t.a.r.t. looking at. >> getting to the closing bell exchange today, steve grasso, and rick santelli from the cme in chicago rick, starting with you because just a couple weeks ago, we were discussing how we felt yields peaked for the year already. you've been off for a week they surged. what happened in your absence? >> go back in time that's an important point. they did act spongy, fell out of the range we spent a lot of time in, but, to me, one key whether we lock in the high yield of the year, in february of 2.95 that we took out friday and today, and that was the 2017 high, which was 2.63 fact of the matter is we got down as low as 2.73, 2.74 close, so within nine basis points. if we would have traded or intersected under that 2.63, i would have signed a contract saying my fellows locked it in for the year, but that did not

occur. there's little doubt at some point we're going to go through 3% i think mr. dunlap had a good point with regard to how much risk you take to short the long end and long the short end looking for steepening or you want to go the other way looking for flootenning, but i frame it as this. i don't think a recession's coming, personally, but i do think that the inverted or the flattening curve makes many nervous. it's perception issue. those who you make nervous, this is important, mr. draghi, they are squarely on the boxes, and the notion of less from central banks along with nervousness about inflation and the zandiste of the equity market with good earnings all on the wrong end. >> either way, welcome back from vacation you look good for it >> thank you >> steve grasso, on the other hand - >> oh, developing a trend between us i don't know that i enjoy it >> in terms of the market today, down a third of a percent.

>> right >> impressive giving the spike to close to 3% on the 10-year. you are inspired by more >> it is, but we are weak. we are around a retracement in the s&p, that's the level you want to watch if we break below, good for another 20 handles lower if the market stays a little bit soft, but to rick's appointment, it is amazing just a couple weeks ago, we worried about rates skyrocketing through 3%, and worried about why rates were not skyrocketing through 3%, and so goldman sachs put out a chart saying where we have to be worried about rates they are not here. >> where >> 3.75, honing in on 4% that's where you need more growth in the market, and it's supplying it right now i know it's very hard for the market to have that digested, but we're worried about large cap tech this week if we get information and earnings, that puts the fears of the market behind us, or at least on the sidelines in regards to large cap tech. i think the market can regain its upward trend

i think that's what the markets should be worried about. we already revisited the china trade worries, and we already visited a whole host of things let's worry about large cap tech >> doug, your view on earnings, more important than rates, and what's your score card so far? >> yeah. i think earnings will be more important. in fact, you know, i think the economy's on sound footing, and normally what you see when rates first go up, is you see multiple expansion for the s&p. that's happened in the past, and until rates get to a point where people feel the feds pull the punch bowl, and we're a long ways from that ultimately, earnings have been coming in decently so far. we're really early into the earnings season, so we have a lot more in front of us, and the thing that i just have trouble getting my mind around, which is a good thing, is earnings are supposed to be somewhere in the mid 150s this year, maybe the mid-170s next year, and we're about at low 130s last year. significant earnings growth at what some people say is getting close to the end of the bull market, and that's not normal

end of bull market behavior. in our view, this bull market probably has the expiration date extended because of the strong earnings >> rick, one head wind, i guess, for stocks, if it arrives, could be a stronger dollar: given the fact is we're seeing in the yield markets, also some of those pmis this morning improving in the u.s. and getting slightly worse in europe do you think the dollar might finally break out higher >> well, i'll tell you what, it's been an impressive run. since thursday's close in the, rise i rising 3%, highest closing yield since the 15th of january. listen, we can debate great article in the journal today, sometimes a strong currency is not bad for exports, thank switzerla switzerland. i personally think, you know, we need to get in the positive territory about 9212 and dollar index on this rally it's going

into i would think that's a good thing, export in trade issues, but i think it's tough watch 9212 unchanged on the yearment that's the key to the dollar index. >> rick, thank you very much for that also, many thanks to steve grasso and doug, leaving it there. >> thank you >> all right, one industry short of feeling impact from rising rates is housing, and dia diana olick has the report >> reporter: better than in march, based on january and february when rates really jumped the 30-year fix got up to start the year, and for the past month, it sat and came down a little bit, and then last week, turned up again, and the expectation is that it will keep rising, so we we want out to an open house in suburban phillie yesterday to gauge buyers, the 600,000 home listed last thursday, already had two offers by sunday. buyers were much more worried about finding a house they could afford than about rates, but a lender on site said high prices

and higher rates suddenly have buyers stretching on the mortgage, putting less down. >>. >> once you get to the 500,000 price range, it was 20%, and now you can do 5%. we are seeing that, absolutely, especially in the past year, that spiked up >> reporter: now, less skin in the game, but the underwriting is still tight the only risk is if home prices fall, which is unlikely now, but you know, it can happen. right? we learned that the hard way >> we did, indeed, diana existing home sales up month on month, but down year on year, so overall, is this a strong market, we're saying in the moment, or, in fact, slightly coming off the pace from last year >> reporter: no. it's really not as strong as we would like that's mostly because there's so little for sale, down 7% year over year, listings come on, but fly off the shelf. without anything to buy, the prices are higher, bidding wars are stronger, and it just makes

it more difficult for folks to afford a home, add on higher interest rates, and it's the perfect storm. >> perfect storm indeed, thank you very much for that we've got 51 minutes to go before the close we have sold off a little bit in the last half hour or so, down a third of percent now on the dow, and nasdaq down a full-half percent. we're just getting started next, today, one of silicon valley's brightest stars, chamath live from the conference, and plus, why one top stock picker says buy coal no joke. see what he sees this is the "closing bell" live from the new york stock exchange with kelly ensva and wilfred frost. we're back in two minutes.

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you know what's not awesome? gig-speed internet. when only certain people can get it. let's fix that. let's give this guy gig- really? and these kids, and these guys, him, ah. oh hello. that lady, these houses! yes, yes and yes. and don't forget about them. uh huh, sure. still yes! xfinity delivers gig speed to more homes than anyone. now you can get it, too. welcome to the party. welcome back, everybody, decline in markets now, picking up a little bit of steam, dow do down at the moment, and broader decline for s&p 500, and nasdaq down a half percent right now. flip side, check out box,

surging 14% today after social capital founder and former facebook tech revealed this stock at sohn. box shares up 10%, chamath joins me now did you tell aaron this was coming >> i did >> he knew >> he did. >> must be sitting there going, great, previous best ideas are amazon, tesla, and now box, which is tiny compared with these guys you think belongs in the upper echelons of best positioning right now? >> absolutely. the framing i used, if you're interested in artificial intelligence and believe it has value in the world and future, which i think it does, there's only a handful of companies to be long. amazon and google obviously, and then in unpacking what else was around, we found box >> what about dropbox, it's public, it's bigger, but don't they have the same advantages as box? >> yes dropbox is a great company and drew is a good friend, but they

have deeper penetration into the enterprise with box. customers who are sticky and payi paying potentially tens of millions of dollars of year, it's not consumers doing that, but large companies, and box is, i think, penetrated almost 70% >> so you think it's going to be sticking, not the kinds of thing -- my familiarity is companies need someone to manage stuff in the cloud, and so maybe box got there first, but maybe dropbox looks good tomorrow. why not just go in there >> thinking how sticky something is, look at the concept called churn. how fast are people leaving the service, companies leaving the service or amount of dollars you lose if any of the metrics, box is phenomenal, probably the top in terms of retaining customers and growing revenue. it's an incredibly sticky thing once a decision is made, it takes a long time for it to be

unmade >> how big or valuable do you see this being >> it's a $3.3 billion company with a huge margin of safety, cheapest stocks around, growing at incredibly fast rates, and when i think about the businesses, can they go out ten years, and this is possible. >> could grow from a $3 billion to a $30 billion >> over ten years i think so >> maybe someone -- attractive acquisition target first >> i think you're right in that as people look to expand to ai, a lot of fortune 500 companies themselves say who is somebody i can buy that gives me a foothold into the market, and at the app location of a.i., these would be one of the best. >> talk about artificial intelligence for a minute. i was reminded a lot of a.i. is powered by big data, and what is big data well, it's needing to aggregate our personal information, which now there's a lot of backlash about, so is privacy a threat to

big data and a threat to a.i >> enormous threat, and you, the consumer, now you ask yourself, am i the customer, and when i'm a customer, i have rights, and so think about for example, when you buy a car, right, you give over money, and ford gives you a great vehicle, but they give you a warranty, and there's laws that protect you, et cetera, et cetera, but then if you actually don't pay anything, i think we have to be really open to the idea that maybe we are actually not the customer, but we are part of the product itself >> we are the product, yeah. >> in that context, i suspect governments will have to get more involved, so that they create the proper guardrails, think of the welfare of citizens, and then they create laws and regulations allowing us to think about data privacy in a different way. >> i have to ask about google, which you highlighted as companies benefitting from the

shift to a.i google today is called bout by the journal as being the worst than facebook with regard to data collection, but we are not aware about it and don't blame it for 2016 and what have you. if that's the case, then i, as i user, i don't want them having this information and power is that a existential threat to google from achieving what you think it can achieve >> in talking about privacy, we try to figure out, who knows what s in the case of google, they don't know who you are they know a location of a phone, a random e-mail address, they may know a bunch of searches tied to the ip address, but it is very hard for them to actually know your first name and last anytime they are really only a handful of companies, apple, facebook, and handful of others -- >> that's the difference those companies that know us as a person with the name attached. google is not one of them in.

>> there's a hierarchy of this, and we can ask a logical question about who knows those things the irs knows your first name, last name, and address other government institutions do state and local police do. in terms of private businesses, only a handful do. when governments internalize that, the same requirements and protections they demand of others will be demanded of these companies. >> back to the markets, companies you like, any big traps out there that you see you know, maybe some of the companies that have become so big, so loved, else lately, and you feel like, there's just no there-there. >> i think most of the big tech companies are indelible for a reason, phenomenal business models these are all great businesses run by great teams i do think, however, that where they become successful or

continue to have success, makes sense to take a step back and ask ourselves, where are other markets in old businesses who cannot embrace the same technology how are they positioned? i think that's where you are going to see, unfortunately, a lot of job destruction if we're not care and there's job disruption and iconic businesses go by the wayside. i think that's really the point where we need a different kind of conversation, which is how do we better allocate the gains to protect jobs, actually grow wages, and we can be more humane in how we build the economic vibrancy >> two quick last questions for you. one, pertaining to facebook, is when was the last time you spoke with sheryl? >> this past weekend >> and how, you know, what's your read on things? >> i think that these guys are doing the right things, that they are working in support of privacy. they are trying to figure it out. it's a really hard job it's super nuanced they are trying hard i think they'll figure it out. >> did you hear jeff said short

it because he doesn't like the way that zuckerberg's appearance on the hill went >> if you're going to short facebook, you have to do it for probably more than technical reasons, honestly. you have to understand other things that, frankly, don't exist yet in the business. there is a vibrant user business, vibrant revenue growth, and so until those things change, i just, we can agree to disagree. >> last question because we've seen the success of some of your previous picks here have had what made you more money, sohn picks or the golden state warriors over the last couple years? >> the honest answer is the sohn picks because of the magnitude of the dollar is bigger, but the warriors are nipping at its heels. >> when do you sell? you have to know when. >> i believe in the buffet idea once you buy high quality businesses, best thing is to never revisit them >> including a basketball team >> yeah. in fact, the reason why i say that is because i think in a

world where we are all in front of our phones all the time, things that give us a connection to the people around us, things that bring us together physically in an environment have huge premium value, and one of those things is sports. now, movies do that potentially, music, but i put sports at the top of the pecking order there in terms of the ability to bring people together. >> cheering for them get curry back in the lineup first, and then we'll see. thank you so much for your time today, chamath about 40 minutes left in the session today. we were looking into declines, box notwithstanding, overall markets, and a lot more here at lincoln center still an interview with nathaniel august, that's coming up, a key read on the health of the tech sector when alphabet posts first quarter results today after e bethll, of all days stick around, "closing bell" is back in two.

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welcome back to the closing bell, there's the second heat map for you today, telco leading higher, energy doing well, best performer last year, up 2.6%, and tech at the bottom today, down 0.6%, and market down around .25 of 1% not too bad given yields spiked closer to 3% on the 10-year. down to the floor where mike is posting up hane's brands

>> yes, they have been a leader all day, up 6% here at post six, up about that much since they were upgraded this morning really, a value call here. this stock is down coming into today, 18% year to date, a tough group, and apparel stocks have had a hard time, very much a bottom fishing call, and saying free cash flow of 10%, a a hated stock, and guidance looks achievable, and we'll see if it lasts. >> last week, i guess more broadly, it was consumer staples names that suffered most of all. >> exactly well, i think you might argue that hane's is a consumer staples type product line than a consumer discretionary it's t-shirts. in fact, champion sweatshirts on the brand is one of the elements of the upgrade, maybe it's in for revival, but this is everyday stuff, this is not big ticket >> thank you very much

>> all right s >> see you on set later. 35 minutes before the close, down a quarter percent on the dow. back out to the sohn conference for an interview with nathan ie august, and why he's betting on a stock that gained 50% already this past year, and questions of data privacy swirls, breaking down the report and what it means for the broadest tech industry don't go anywhere. back in a couple you know what's awesome? gig-speed internet.

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

welcome back to the "closing bell," down on the dow, and nasdaq, and s&p. an hour ago, hit the lows of the day, down about twice that amount, but we've recovered nicely approaching the close, just 31 minutes away here's a check on the main laggards in the dow. goldman sachs down a couple of percent, despite yields rising, but they have seen a flattening of the yield curve as well, and goldman had a decent week last week relative to the rest of the financial sector, and pg down, best part of a personality, and intel, and walmart make up bottom now it's time for a news update.

>> we begin in canada, canadian police say a van in toronto hit eight people at this point, the cause of the incident and extent of injuries are unknown. police are confirming the driver, however, is in custody the metro nashville police reported travis reinking is in custody, the suspect in a mass shooting that killed four and wounded four others in a nashville area waffle house sunday a lab in texas is growing hundreds of miniature brains using stem cells the brains are not intended for patient use. researchers are studying lab-grown brains to better understand how the brain can repair itself after injuries and the royal family announcing today that prince william and the duchess gave birth to a boy weighing 8 pounds and 7 ounces the couple introduced the newest member of the family outside to well wisher outside the hospital before then putting the baby in

that car seat in the car and heading back to kensington palace >> that was just a couple hours after giving bitter, sue >> yes she gave birth - >> oh, my gosh >> i know, and looked beautiful. you know, she had the baby at just after 11:00 local time, and just before 6:00 local time, right there, they took her home. >> my goodness >> i know. it's a high bar, kelly, it's a high bar really is. >> not clearing it >> and she's wearing heels she's in heels >> that's just awesome i have to say, i love it >> it's a wonderful family >> congrats to them. >> absolutely. >> thank you very much >> you got it. see you later. sue, back at headquarters there. watching shares of palo alto shares here, seeing an uptick today at the sohn conference, longing the stock, and joining us now, scott is here too,

because, well, glen, you can tell the people why this caught all the attention. you are now calling a troubled internet relief program something we seriously may talk about in the future. how bad is it there in the cyber world? >> it's tough. we have real cyber criminals sponsored by nations that need money, and chasing after capital on the internet whether it's cyber money or deposits around the world. >> the stock has done incredibly well, right? >> yes >> that was the pitch, up 31% year to date, and over a longer stretch, it had outperformance, so you're not necessarily catching this as a point of greatest value, but why do you think there's a lot of weight ahead of it in. >> we're seeing in the i.t. industry we're moving from traditional enterprise on premise setups to hybrid cloud and enterprise computing networks where data travels over

a lot of different clients and kinds of networks, and that opens up a new opportunity for palo alto as the leader in enterprise to expand their franchise to the cloud model and the hybrid enterprising cloud model. >> yeah. everyone's trying to make that transition, feels like it's more reliable, but i think more as the president is potentially going to sit down with the north korean head of state here shortly. you're highlighting the fact that these actors, and we just read the other day that north korea treats cyber hackers like they are olympians this is extremely important to them there's companies like palo alto out there trying to help, but are we way behind in terms of what we can do here? >> well, it's a battle that is raging every day, and one of the statistics i talk about in the presentation was the amount of time that companies or governments have between the time the hackers first enter the network and when they discover

them and shut them down. that's 400 days on average to 100 days over five years, so that -- we're making a lot of progress, but 100 days for criminals in your computer network is 100 days too many >> in your days as a tiger cub working as a tiger, you specialize in tech, right, talking almost all aspects of it, e-commerce, internet, soft fair, hardware, all of it. what's going on with tech? is the tried over for a while? about to reboot itself it's carried a lot of water. your performance is amazing. last year, it was up 38% net of fees, and this year up almost 12 >> right >> riding the back of the wave >> it's not over at all, and we invest on a long term view, and when i look at what are the driving factors in the industry, about, only 14-15% of computing

has shifted over to the cloud model, and it's still early, and we're 20 years into this there's still -- it doesn't happen overnight these trends are actually very long term oriented, so we can pick winners that win over as much as a decade of a period of time, and when i was at tiger, i helped get us into cisco, for instance, and microsoft. there was 10-year periods where they compounded every single year we're in that period for a new group of stocks. people talk negatively about the fang stocks -- >> is that who you think is that new group? >> it's part of it you know, i think there's other winners like a palo alto networks that we discussed i think you have companies like wayfair that's - >> alibaba, right? >> yes only a handful of companies beat amazon >> you put wayfair up there with the fangs? >> absolutely. >> wayfair

>> only companies who beat amazon is netflix and alibaba, and wayfair. wayfair is crushing amazon in the furniture e-commerce market, we are long it and love the stock. >> amazon is still the biggest position >> yes amazon is my biggest position. there's a lot of things to sell other than furniture >> okay. >> in furniture, it's wayfair. >> the president has amazon in his cross hairs. are you worried about any developments from washington impacting amazon >> yes that's maybe a bit above my pay grade, but what i would say is that for 25-30 years - >> a big pay grade if your performance is that good >> is anything about the pay grade many. >> the ftc is focused on, you know, they focus ongoing after companies that try and make prices go up amazon does not make prices go up, they force them down, so they are the friend of the

consumer, and until they change economic principles of how we enforce -- >> they are trying to. we talked to the yale researcher, arguing amazon prices are too low, and, therefore, the government needs to come in - >> i read the book it was not a great read. >> what about facebook it's in the one of the long term positions. >> we've been long term shareholders of facebook i do think they were caught a little flat-footed on this recent event, and i think they need some time to both change the company and, you know, zuckerberg said, look, it's going to be six to 12 months to get this right in the long term, they will be a terrific company

>> i'm still -- by the way, before you go, when you talked earlier, and he said go public was cool then. are we going to see the next crop of companies, 20% compounders, now the likes of uber or too late >> a wave of ipos to her point this year. >> especially excited about the sharing economy, the chance to buy shares in uber, which we've done in the private market and lyft, and we would love to be big shareholders for companies like that and air b and b, that's the real next wave. >> all right thank you so much, glen, great stuff. scot, see you in minutes >> thanks. 20 minutes left in the session.% y 10-year nearly touched 3% ae earlier. s&p down 4, and nasdaq is the underperformer down 25 alphabet gears up to report earnings after the bell today, and there's changes. we'll have a preview of how much the stock moves coming up, plus,

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under 20 minutes until the close, we are off the session lows, s&p's now.2, and nasdaq down 30.4.4%. looking at individual market movers mcdermott lower today, and they currently have a deal in place to merge with chicago bridge and iron, that stock, as you can see, up some 15% today goldman sachs upgraded merck to buy from neutral that stock up 2% today as we

have 18 minutes left of the session. kelly, over to you >> thank you i'm here at the sohn conference, and joining me now, my next guest, manager of partners, president, and founder welcome, it's good to see you here >> thank you for having me >> you're the guy who comes on set and says, i love cole right now, i want to invest inn this,e largest way to participate in the coal market. >> wrticipate? we've talked about war on coal, and when the president came into office, he changed that a little bit, but there's a lot of difficulties out there >> it's undeniable, but it is international, and those markets are growing nicely, so in our opinion, you can actually get the u.s. business for free if you buy it today based on the valuation of the international business >> you are telling me the thing that peabody benefits from is being an exporter of coal to other markets. what happens amid the trade and tariff talk?

is this the next thing to clamp down on or use as a bargaining chip >> actually, they are producing the majority in the australian operations, and will do roughly $800 million out of australia this year after allocating corporate expense and another $600 million from the u.s. operations, and u.s. operations don't export at all. they serve domestic utility customers and say the bottom end of the cost curve, so the most competitive lines in the united states, but the crown jewel in our opinion is the australian business doing $800 million, and look at comps for the australian business that suggests the entire market cap is actually covered just by the value of the australian business. >> wow well, again, we're supposed to be america first here. you are saying this is based in australia, but the biggest custom assume? >> absolutely. >> no in that case, if china tries to clean up the smog problem and knows that it's coal

fired and they have to get better environmentally about that, how does that affect peabody? >> interesting you bring it up there's two types of coals more important types of coal used in steel making it grew 5% in china and will continue to grow and them it's less important type of coal is a thermal coal that exports to china among other asian countries as well as used domestically in australia, and what's happening in china the country is trying to decrease the coal production domestically and increase imports because it's actually the mining and production of the coal domestically which is so dirty in china, and created so many of the environmental problems >> fascinating so if there's more -- if it looks better for them to be, you know, exporting the coal to china to make steel, you know what the next question's going to be. it's a steel market that maybe you can explain to us, how much steel is china making, and how

much steel do you expect them to continue to make >> chinese steel production grew 5% last year, growing steadily every year since 2009 with no signs it's going to end as the company continues to invest in infrastructure and new buildings, and china is not really a major exporter of steel to the united states because tariffs have been on chinese steel for a while. >> that argument they are a major exporter, but through other countries, and that's affected by the tariffs now? you think that's overblown >> i definitely think that's overblown. >> peabody coal you like effectively for that argument. there's a couple places you think in the u.s. are kind of unloved and overlooked including shipping and exploration and oil production companies oil is starting to look better again, up near an almost above $70 here can you be a little bit more specific >> sure. in the oil patch, our favorite domestic companies are bonanza creek, penn virginia, and pvc energy what's interesting about them is

they eliminated almost all of their debt by going through bankruptcy just like peabody did, so there's a clean balance sheet and grow extremely profitable at current oil prices >> making a good case, for coal especially, we don't hear that lately thank you for joining us >> thank you for having me today. >> nateniel august we still have 12 minutes left in the session, looking at declines here to kick off the week. dow's down 25 points right now, keeping an eye on that, again, with interest rates largely in focus today. we'll have a lot more on the market, including how much al a alphabet moves after reporting earnings that's when we come right back stay with us let's begin. yes or no? do you want the same tools and seamless experience across web and tablet? do you want $4.95 commissions for stocks, $0.50 options contracts? $1.50 futures contracts? what about a dedicated service team of trading specialists?

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nonevent, but there's a nice recovery in the last hour, flat on the s&p nowment two stocks to watch now, irobot and amazon irobot falling about 6% as you can see on reports amazon is working on a project to develop robots capable of navigating homes and completing household tasks. they are down half a percent as we said, though, the tech sector is one of the two worst performing today, and amazon more moving because of that. now, on the tech front, after the bell, getting earnings from alphabet that could make some big moves after hours according to our data partners shares of alphabet moved on average 3.3% either up or down or eight quarters after earnings were released. which is no small feat for a company its size meantime, back to hq for a market flash on alcoa. >> good afternoon. look at shares of aluminum stocks, all down big today along with aluminum prices

now, remember, china was targeted earlier this year for anti-competitive practices, and the story had to do with russia is a little different. this is a little bit more about the company's association to the russian billionaire who alleged to be involved in a range of illegal activities that's why we talked about sanctions. today, treasury says they will take a little bit longer in the wind down period here. that's why aluminum prices went down back to you. >> and this relates because there are business dealings with alcoa or direct ties to alcoa? >> neither right now what happened was the nudews cae out from treasury taking aluminum prices down as well as the rest of the stock with it as well including the u.s. company. >> okay. thank you for carrying up that for us big move there, down 13%

after the close, two fast money traders weigh in on under armour, fast money trades, and google earnings on the close don't go anywhere. seven minutes left to trade. back in a couple lower calories. ♪ higher expectations. the light beer you've been waiting for has arrived. introducing corona premier.

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until the bell does ring you see the s&p 500 little change, actually down less than a point right now, and also limit change for the year. it's interesting we've been churning around that flat line level in the s&p 500 for some time right now. it's also roughly the middle of the range we've been in, really, since the selloff first began in january. we did have a rally attempt this morning in the s&p 500, up almost half a percent in the morning, but without a catalyst, a little bit of a heaviness settled in we're waiting for a lot of things like to see if the 10-year treasury yield hits 3%, hit 2.99 and change early this morning, and it's settled back a little bit from there, but still remains pretty much on the precipice of that 3% level we're also waiting for a ton of earnings, naturally, something like 40% of the s&p 500, market cap reporting this week, beginning with alphabet after the close, and while we wait, though, seems as if the market is still in this no man's land neutral territory, between the february lows, those january

highs look far away, and one thing to highlight is the vix, it's reflecting this stuck nature of the indexes right now. seems comfortable in the 16 range right now, pretty well below the 20-plus it was at for a while, but, also, not bag to 2017 levels under 12 bob pisani is here what struck you today? >> everybody over the weekend concerned of hitting 3%, it did not dominate trading activity today. >> sure. >> 2.5% in january, moved to about 3% in february because of wage hikes, now they are accustomed to the idea continued to turn about apple and apple suppliers, microns and broadcom, all notably week, taiwan killed again, real fundamental stories moving things down. fang names weakened in the middle of the day, not just apple, but the other big names as well, and micron really never

got off of the ground at all there's your fang names down they are all the lows, but notably weak, and there was continued commentary from the consumer staples group, another point, kimberly-clark, another company with concerns about inflation. >> yes >> and inflation in their costs, yet they can't pass it along >> that's right. >> that's one of the problems. >> no pricing power at all, so kimberly-clark said this, procter & gamble said this, and kimberly-clark is one of the largest consumers of eucalyptus pulp when is used in tissue paper. bathroom tissue paper, paper towels, that's why it comes from because it's very soft and people like it >> sure. and they warned it was going up. >> this is not a joke, eucalyptus pulp prices going up, and plastic wrapping as well >> expensive to eat if you're a

koala now. >> all at 52-week lows, so, yes, interest rates are dominating the session, but there's other stories going on that are very important. now we'll get google and what they have to say >> banks, we are talking about yields pushing higher, they did not make a showing of it today >> no. i think the big thing about the banks is, yes, we're getting net interest income a little bit higher, but the loan growth is really anemic, basically one and a half -- they are not all in, but from what i see, 1.5% to 2% year over year, loan growth is disappointing, given the fact the economy grows so much, and all the liquidity keeping rates low, they could have taken advantage of that. even in corporate loan growth, business loan growth, and commercial loan growth, consumer loan growth, we're not seeing a pull >> a little push-pull there. thank you very much.

we are audiotape the the nasdaq, that's the first hour of the closing bell, and wilf and kelly have the second hour >> kelly is uptown at the sohn conference, joining her in a moment, a lot more to come from there, and mike santolli will be on set finishing the day on wall street, essentially flat, the s&p fractionally higher, dow fractionally lower, and nasdaq down a quarter of the percent, it was towards the bottom of the s&p, but relatively encouraging finish, down more like .3% on the s&p an hour ago, nice ri cover - recovery into the close. joining us, jim, and tony from pimco and mike ishere as well.

let's talk, first of all, about rates. tony, quite encouraging, equities flat. rates moved the last couple sessions in particular and last week as a whole. very sharp are people right to be worried about this or overreacting focusing on those headlines at 3% >> difficult to argue the markets generally are worried about a meaningful rise in interest rates look at various strurmts thinstn the bond market, it's not a level frightful at all for example, markets price for the feds move policy rates to eventually 2.73%, or so, and it's built into various markets. sure, it could go a little further, but we suggest not meanfully further, and, finally, we'd sigh don't focus so much on point estimates. focus more on improving construction an don't get worried about a rise in market

interest rates >> michael, if we think more broadly in terms of what level of interest rates does hurt stock markets, gets you worried, what level is it in your mind? >> probably 3.3, 3.4, somewhere in that neighborhood, but i agree with what was just said. i don't think the market, at least from an interest rate standpoint is set up for a slope that's severe in terms of rate increases. unless there's shocking news on inflation, certain oil at 70, certainly factors into inflation statistics, but it's all really about the pace of the increase the increase is gradual, history suggests equities are fine, economy's fine, but it's when there's surprises and shocks we don't see it right now in terms of economic data i don't think the fed sees it. certainly, all the talk about trade tariffs is going to give the fed pause in terms of raising rates at a very high pace >> mike, if we look at the ten year, though, 2.83 two fridays

ago, 2.99 essentially today. that feels like a quick move >> if you really zoom in on it, it does look like a sharp move, but we were about 2.9 in the third week of february, s&p same day traded, and now here we are, so it shows you that really we're fixated on micromoves and because it's a round number, it's getting attention, but i don't think the velocity of the move absent the round number of 3% which we have not seen in more than four years, we get that much attention. the stock market is trying to sort out what kind of valuation to place on very good earnings in the context of borrowing costs going up directionally, whether it's a lot from here or not. right now, you know, corporate bonds, 4.25%, doesn't seem demanding, but it's the highest they've been in this cycle when

stocks are expensive that's why the market makes peace with it. >> talk about good earnings, got that flash from alphabet 993 the eps, well ahead of expectations at 9 it 28, and josh lipton has a breakdown on the numbers. what are you looking at? >> as you mentioned, alphabet reporting eps of 9.93, versus expectations of $9.28. revenue, 31.31 billion, the street at 30.3 billion, and looking through the segments, google properties, about 22 million, google networks, 4.6 billion, and google advertising revenues, 26.6 billion google other revenues, that's play, cloud, and now nest, 4.3 billion. other revenue bets -- other bets revenues clock in at 150 million. other bets operating loss around 571 million. total tack comes in at 6.3

billion. that means total tack as percentage of google's advertising revenue here is 24%. paid clicks on google properties, that is up a much better than expected 59%, and cost per click, that is down 19%. guys, back to you. >> josh, thank you very much for that headline beat on revenue and eps and underlying metrics like cost per click down more than hoped for, a good metric, and total tack up more than expected mike, your first reaction on these numbers, certainly, looks like a beat and aftermarket is up >> looks like a beat on the relevant areas google is not a company that's going to take guidance yes, a big margin to beat, but not out of the zone of what people were looking for in this environment. you know, makes sense it's up 3% i feel as though people are a little bit unwilling to necessarily say this thing should raise higher from here just because of the background uncertainties about, you know,

ad supporting digital media and the rest, but it seems like things are in tact there's a different reporting standard people have to get used to the numbers present the here. >> jim, when we consider alphabet as a stock, the eps growing more than 20%, this is a beat, though, eps growth of more than 20%, does that justify evaluation and make other tech names look attractive? >> in the short term, they are getting a bump by people moving ad revenue from a facebook to google there's only two players now, and you see a little bit of a switch my sources are telling me if you look at what facebook has done with using data in order to pinpoint target customers, it's not like what google has done. google has more data thing that's exciting is that if google advances analytics the way facebook is, the power of the analytics for a marketer is going to be greater than what you have with facebook, so i think long term, there's actually more growth to come at google, and they come out the winner in the battle for ad revenue and ad dollars between

facebook and google. it's impossible to, you know, value a business that looks like it's growing to the moon, but we know all bean stalks don't grow to the sky that said, there's runway for future growth, especially on the revenue side >> michael, that said, there's a similarity with the privacy issue between google and facebook, making money from advertising, relying on people's data, versus netflix with a subscription model where the consumer is first. do you think there's a risk for google going forward that they could get regulated like a facebook >> well, google is going to be regulated like facebook. there's going to be regulation that's going to occur, but the appointment that was made is a good one facebook has mined that data significantly so, use it in the advertising, and i think google has been a little bit more he has tent to use the information. if there's more information, they disclose more information about how they are doing it and distributing information to advertisers. i think there's enough bandwidth

to do that and still increase the effectiveness of their ads, and so i think it's a positive sign for google, even if regulation comes >> can i jump in regulation is good for incumbents in the financial services sec sore, so that's why facebook is not necessarily fighting regulation. that keeps other competitors from being able to get in, and i think that makes this business potentially more valuable. >> all the way, banks, look how well they stand compared to europe today switching back to the broader markets to discuss more about google earnings after the bell tony, talk to me what's happening in terms of the markets, the riskier end of bond deals? rising as much as we've seen government bonds rise in the last couple weeks? >> one of more interesting areas to invest now is the short term investment grade securities. you mentioned the end of the investment spectrum from bbb, lowest of the investment grades securities, but for two year maturities, three years, yeield are in the 3 to 4, interesting part of the yield curve, in

part, because there's selling that relates in part to some technical stuff called cross currency basis it's more expensive for foreign investors to hedge u.s. dollar back into their own, so they are shedding some of those in the context of the global market, yields, therefore, look good, and it's good place to invest one final point on this, shorted investment grade securities, they can consider self-liquidating, not tomorrow, but in time, they have what we call a low spread risk, meaning credit spreads wide, it does not hurt you, and low duration risk, if interest rates rise, we're not hurt there either. exciting space short term space of the market, 12 trillion dollars in the banks, earning nothing, so mobilize cash and look into short term space >> mike, how does that compare when we consider the s&p dividend yields and earnings yield as well? >> it's interesting. well, right now, fixed income yields are good competition for dividend yielding stocks, right?

we talked about the consumer staple stocks. a lot of the big, you know, blue chip names and consumer staples have yields close to 4%, dividends close to 4%, and seems as if those people just in it for the yield have places to go. it's safer in terms of what's going to happen. >> quickly, the barclays, the universe of bonds in the sense, yields 3.3%, and pimco generates 100 basis points, mid-4s we're looking at, which is not bad for a diversifier looking longer term >> jim, a quick final thought. we have not touched on this. trade wars, weighing on markets, but there's winners in that domestically >> oh, yeah, there's always a winner and a loser out of trade wars, and i think what you're seeing is that the domestic steel industry and aluminum industry, relatively small, comes out ahead, and small cap stocks have been the big winner on a relative basis because they have less exposure, sell off

less when we see headlines about trade shutting down in other parts of the economy overweight small caps as defense to potential trade war concerns. >> great stuff leaving it there thank you, all, very much for joining us, michael, jim, and tony meantime, the sohn investment conference, of course, underway in full swing in new york city let's get over to kelly evans for more on that she's alongside leslie picker. kelly? >> thank you, wilf yep, we are sitting here, full sing, music behind us, i don't know that you can hear it, but, leslie, talk about the highlights from the day so far a lot in tech, right >> a lot of tech a lot of internet. a lot of long, kelly few short positions pitched here, which is emblematic of the market >> totally >> came here the last two, three years, chances are, it did not go so well one, i point out that has everyone talking, a lot of buss, the long bet on box.

>> moving the shares in a big way today. >> oh, they shot right on up 1 11%. his point was an interesting one. you don't hear it discussed talking about box, and that is an a.i. play, that's artificial intelligence, talking about that as the next interracing in the tech cycle, so you see what happened in the internet in the '90s, mobile at 2008, and now a.i. is the big trend there, and he says box is best positioned to capitalize on that. >> by the way, we interviewed him shortly thereafter and asked what he thought about facebook, a stock as well, and last time he spoke with sheryl after all their issues, take a quick listen >> when was the last time you spoke with sheryl? >> this past weekend >> and how, you know, what's your read on things? >> i think that the guys are doing the right things i think they are working in support of privacy they are trying to figure this out. it's a really hard on. it's super nuanced

they are trying really hard. they'll figure it out. >> criticalof facebook in the past from a user point of view, data collection point of view, and social media ails point of view, but they are saying, look, they'll figure it out, and not saying the company is in existential trouble. >> that was not a stop call per se, but end of 2017, he was the one saying social media, hinting at facebook, destroying the social fabric, and then, of course, we saw all the news come out recently with cambridge analyti analytica. >> we saw a short call today >> we did. >> speaking of facebook. >> we did! jeff, interesting trade suggestion >> your twin, by the way >> my twin, in a purple suit today. i don't know we definitely did not plan that ahead of time. i'll tell you that many much, but he recommended investors go long xop actually, which is an oil and gas etf, and short facebook. interest i

interesting, so take a listen. >> i think this is a big event, and i also think there's to the just one cockroach in the kitchen. we had the apology tour, we've seen it before, it's not the first one, we're already one apology too far on this thing. one more problem, and there's going to be one because there was never just one cockroach, but i don't know what happens with the credibility of the "i'm sorry we'll make it better" type of statements. >> there you have it, jeff gundlach, why he's short facebook long xop and short facebook. what about grubhub coming up today? >> so she recommended grubhub as a play on millennials and their tastes, no pun intended, and the food service >> and if you rely on it too much >> she, herself, does not like to cook frequently and thinks that's why it's poised to capitalize on this trend, and

she said that compared to its competitors in other developed markets in europe, it's only up 4.5% penetration in the u.s., and it has room to grow there. >> surprised it's only 4.5%. >> that's what i said. >> there's a lot of skeptics about grubhub. leslie, great stuff, thank you very much, leslie picker with a recap, there's more to come on "closing bell. straight ahead, much more on alphab alphabet's numbers and how you should play the stock. police, the battle over a stock that started the war on wall street >> i'm telling you, he's like the cry baby in the schoolyard not an honest guy or a guy who keeps his word >> how the story really unfolded >> and the next chapter in the icahn saga we're back in two minutes.

zblmp welcome back, we have an earnings alert >> down 1% after a mixed second quarter, beat on the top line, company reporting $22 billion for the quarter, and that's a growth rate of 8% year over year, but the company missed on the bottom line by a penny as a result, the stock is under

pressure shares down by 4% earlier, and a final record client trades per day, 943,000, better than the estimates of 931,000 a lot of people trading on volatility, wilf, back to you. >> thank you very much for that. tomorrow, don't miss first on cnbc interview with tim hockey alphabet reporting results about ten minutes ago. stock up initially 3 partners.5w down 0.6%. to discuss why we see those moves, victor joins us, and ken from firsthand capital management as well victor, if i start with you, that share price move initially up, now down, your take on why people are selling it down once they dug into the numbers? >> well, i think it was a initial headline reaction, so the headline numbers, revenues, and etsb, meaningful b, versus

consensus and expectations, but, as you know, with everything, devil's in the detail with alphabet >> what is the detail? >> first, whether whether or not revenue growth accelerate. it did not it was above my expectation, but did not accelerate second on tack that came in slightly better, so i was encouraged seeing that number as well >> traffic acquisition >> traffic acquisition cost, better than expected, was a pain point on the stock for several quarters now then, third, really just on margins. that came in below expectations, so i think the stock is areactig to that, and stock is just reacting to the margins, expenses kicked up >> margin is because, as you say, costs and expenses more broadly? >> expenses kicked up a bit in the quarter. >> kevin, bringing you in. what's your take on these numbers? do you think the share prices are selling off unfairly >> well, you know, i think that

the big question with google and psychology with the stock around alphabet is whether or not privacy concerns die down or whether they are going to build. if they build, it'll spill over beyond facebook and on to google if you think facebook knows a lot about you, try google. they know every search and everywhere your android phone has ever been. that could be a bit of a cloud over the stock, but the effects are a topic that rises to everyone's surface and then just kind of floats away. >> how big a cloud, kevin? does it mean an impressive eps growth of 22% or so, does it mean that kind of print is irrelevant and could see 10-15% down if they start to get hit with the same thing as facebook did? >> well, if you look at where google money's comes from, it's the world's biggest business fly wheel, this paid search and

advertising off the search, it's just a monster, and if people started to feel uncomfortable using that and started to look at alternatives, and there are alternatives, most people don't think about it, yeah, that would be a pretty big deal >> victor, how would you characterize the risk right now? one thing that occurred to me when it came to the facebook discussion was presumably whatever might be done on a regulatory basis or privacy, you know, data handling, any of the procedures, it's going to apply to everybody >> right >> so, therefore, as long as you're on the same footing as another company, and you already have that size, is it really going to effect longer term? >> listen, first off, google grappled with these issues for quite some time now, for years nothing new to them. it is compounded now because you have not just eu, but gdpr, and, you know, interprnet privacy issues that percolated with facebook and transfers to google as well. they have issues right now with

looking into some of the incidents at google as well. a lot of risk. i think that may put them in check somewhat, but as you said, it could impact the entire industry, not just google as well >> quickly, we talked about the google part of the business, but elsewhere in the alphabet parent company, what's the other drivers that jump out to you that you like? >> well, you know, definitely the network part of the business was better than i expected, so, you know, that was good, but, you know, the one piece of the business, though, that's not in numbers, because they have not started generated revenue yet is waymo. i talked about them for quite some time now. they could generate billions of dollars of revenue over time for al alphabet, spin it off a at some point. it's not reflected in the stock right now, so that's the one piece of the business that's not in the numbers today, deexpense not revenues, but could benefit the stocksignificantly >> thank you very much for joining us, victor, kevin, and you affected the stock up 1% again. let's get uptown, again,

kelly's at the sohn conference with more discussion on this very topic kelly? >> yeah. that's right, we'll talk about google more while facebook's facing scrutiny, now it's google's privacy practices that flew under the radar, but are getting attention lately. i'm sitting down with seth stevens, author of "everybody lies," formergoogle data scientist, thank you for your time >> thank you so much for having me >> we wanted to pick up on the fact that earnings aside, this gets more to the heart of the future earnings, today, wall street journal among many, talking about facebook practices, google as as much if not more on you, and from your experience, is that true, and do they face user backlash now? >> well, i think google does have more information than facebook, and i don't know that it's bad, makes the product better, but people are honest to google, so they don't tell

facebook what they are really thinking their health conditions >> whether they mean to or not because they type it in the search >> exactly the google set is bigger, more powerful than facebook's i think people trust google more than they trust facebook they never really trusted facebook so they are more comfortable having data in google's hands than in facebook's hands >> that can shift on a dime. all it takes is, look, in the weird way the election threw facebook into the middle of the argument, it could be similarly out of the blue putting google in the middle of things, right >> you see after edward snowden's revelations, there was a change in user behavior. people were weary to search on google that really hurt google, and, yeah, if users freak out about what google knows about them, it could be bad for google. >> google is an advertising-driven model like we talk about facebook and that's why there's so much focus on

whether that holes up, so youtube as an example, advertisers, i don't know about users, but on the advertising side, they don't want videos to be for a terrorism ad or anything like that facing pressure from the advertiser and users, right? >> yeah. i think it would take a lot for advertisers to change. they arehappy with the product google's giving them, but if there was a big outcry, this could change behavior maybe, advertiser behavior. i'm more nervous about user behavior if they think twice about using a site, that's really, really damaging. >> is it that someone says, hey, i have a new google, if you want to do a search without being tracked, use my tools? >> they already exist. dot, dot, go, for example. >> it's been around for years. >> forever, but behaviors change, like i said, after snowden's revelation, there was a change in behavior, so sometimes you don't see it in a big public outcry, but there's

subtle changes in people's behaviors. >> google maps, google mail, some of the most popular apps that exist >> i'm pro-google, just saying what the risks are i think in general, one of the reasons google has flown under the radar is because people really do value the products, even more than facebook. they trust -- they are happy with google keeping their information if it's going to suggest where they might want to go if it's going to suggest their home when they type it in google maps and finish it before they put it, oh, that's a good service, so i think in general, google's services seem so valuable to people they are willing to - >> it is a pain, type it in, you get the number wrong, and the you have to delete it. >> i think if there was a service they didn't have that, it would be competing with google maps. >> thank you, good talk with you today. seth stephens, author of "everybody lies," and a former google data scientist. up next here on "closing bell," under armour upgraded from

deutsche bank, up nearly 4%. the fast money trade how to play the stock right after this quick break. hought much of it at all. people said it just made a mess until exxonmobil scientists put it to the test. they thought someday it could become fuel and power our cars wouldn't that be cool? and that's why exxonmobil scientists think it's not small at all. energy lives here. there's nothing more important than your health. so if you're on medicare or will be soon, you may want more than parts a and b here's why. medicare only covers about 80% of your part b medical expenses. the rest is up to you. you might want to consider an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company.

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rela - al qaeda related content facebook explaining in a blog post how it's been forcing ban on terrorists, on the platform, saying it's growing its counter terrorism team currently of 200 people up from 150 last year, and this, of course, as the company faces growing scrutiny both in the u.s. and in europe back over to you >> julia, any indication as to whether this number's risen because more of the information was posted or just finally working how to track it down and remove it? >> well, they say it's a combination of artificial intelligence being able to identify the data as well as their team of now 200 security people up to 50 in the past year they talk about ways they identify content and pull it down it's unclear how much they attribute that jump into an increase in actual amount of content, but they say they are getting much better and much faster at pulling down the defensive content. >> okay. julia, thank you very much for that julia borsten there.

facebook shares are flat the dow is fractionally lower, and s&p higher, nasdaq down, and russell a little bit lower itself we did improve into the close, and having opened slightly higher, a bit of a yo-yo session, but flat finish, not bad given rates did spike again. we got time now for a cnbc news update with sue herera >> hello, everybody, this is what's happening at this time. two people killed when a van jumped the curb and ran over pedestrians on a sidewalk in toronto, canada this afternoon police have the driver in custo custody, but at this point, they are not saying whether this is an intentional act or a traffic accident a brussels court found paris attack suspect abdeslam guilty of attempted murder guilty for shots fired at police officers as they sought to flee arrest in 2016 both sentenced to 20 years in prison a new art exhibit in london

attempting to raise awareness of pollution by allowing visitors to breathe polluted air of cities around the world from dehli to beijing you are exposed to toxins from nitrogen to ethanol. san francisco giants belt set a new record, longest at-bat belt fouled off 16 pitches, ten in a ow, and saw a total of 21 throws before he hit a line drive to right field for an out. there's a record for you that's the news update this hour, back downtown to you >> sue, thank you very much. you know, i'm a fan of london rr, but that latest exhibit? >> i'm not sure either i wanted to do the story because it's unbelievable. why expose yourself to that -- >> i know. >> doesn't make any sense. >> it's not extreme levels because hundreds of millions of

people are exposed to that day in and day out, but you're puts yourself unnecessary in what looks like a grubby environment. >> absolutely. >> thank you very much >> you got it, back to you >> all right, it's a tale of two atleisure stocks which one would you raerth own the closing bell will be back in a couple minutes it took a whole lot more. that's why i switched to the spark cash card from capital one. with it, i earn unlimited 2% cash back on everything i buy. everything. and that 2% cash back adds up to thousands of dollars each year... so i can keep growing my business in big leaps! what's in your wallet?

earnings season comes to full boil this week, 42% of the s&p market caps will report. >> hasbro out with quarterly numbers missing on the top and bottom lines >> the 10-year is the big story, we got to 2.99 and watching to see if it cracks 3% for the first time in four years >> the bet is earnings overcome the move above 3% yields i'm in that camp >> ideas are fast and furious here >> jeffrey urged investors to do a fair trade, long xop, the oil and gas etf, and short facebook. >> chimath pitching his best idea, box, market reaction decisive, up by 13%. >> finishing the day on wall

street, essentially flat the s&p fractionally higher, dow fractionally lower, and nasdaq down a quarter of a percent. shares of underarmour climb 4% on an upgrade from deutsche bank, and lululemon was downgraded let's bring in guy and karen joining us guys, over to you, which is the one to own out of the two in. >> let karen start the show. >> i will. they are both expensive, but, to me, lulu is where to go, just in terms of risk-reward, two companies that are expensivement one hitting on all cylinders, even without a ceo, and the other, that's expensive, but in the midst of a very rocky turn around, so i would rather own lulu although the stocks are not up a lot the other thing in its favor, i think there's almost a gravitational pull towards 100 when you're this close >> i'm going to accord with karen as i generally am, and i say, you know, underarmour is

close to 60 times next year's numbers. i don't know where the value is. i understand they upgraded it from a hold from sell, but, you know, still, it's not a ringing endorsement that the stock bounced off, and there's 11.5, more room to the upside, but looking for a stock with tail winds, it's lulu this is too much information, but i think they are underwear i go to the mall and buy their underaway, they are fantastic. you are smiling because you wear them too >> i don't actually wear them, but i -- i -- i've been -- i'm speechless off the back of that comment, i'm afraid. >> it was, in fact, too much information. >> exactly >> it was my mind that followed it i didn't have to mike, you still in the camp of athleisure >> i think it's peaked, but lulu said it's more than just a way to play the general fashion movement and the winner in the

group, and i think the problem with under armour is it's well-known, and brand diluted as they did too many things i agree, it's expensive, but it was really expensive at 50 it's still expensive at 16 and change at some point, i think maybe the stock finds a way to turn it if they get it to work before it's cheap on paper >> given nike's stock pullback on the executives leading, own that rather than both of these >> no, sticking with lulu. guys recommendation of underaway, but before that, good momentum >> ringing endorsement join me at the mall, we'll go shopping, grab a beer, watch an arsenal game risk is too big, lululemon gets it done. >> i'm going underwear shopping with guy for a weekend there you go i can't believe my life has come

to this. how much better can it get guy, karen, thank you very much. >> thank you >> catch "fast money" at 5:00 p.m. eastern time in 20 minutes time let's get to josh. >> i want to bring you a synopsis of what i discussed with rudd. in terms of the earnings report we saw, i had a question about traffic costs, 6.3 billion, that was certainly higher than what the street was looking for so i asked about the trajectory of tack going forward, does she still expect traffic costs that investors pay attention to because they pressure margins, still expect them to subside in the quarters ahead she does, knowing she anticipates the pace of year on year growth and sites tack as a percentage of sites revenue slow beginning in the quarter, she told me, the second quarter, and first quarter noted did increase, did increase these other lines here, both in the

seasonal step ups mentioned, and increases we've talked about i did ask her, also, wilf, about gdpr, new privacy controls in europe, and i want to ask if she'll quantify the impact, today, obviously, the street is interested in what that's going to mean for users for marketers, and ruth said in terms of the overall business here, the ad business is search, relying on key words around a relevant ad or product, noting we have a diverse advertising business and committed to compliance across it, so seeming to suggest there for a big part of her business, she's not expecting material impact, and, finally, on youtube, wilf, obviously, we see reports, ads from companies running on youtube channels that promote questionable content, white nationalists, nazis, north korean propaganda. i asked whether it was time for the company to take a harder editorial line on what content is published on her platform, which, of course, they want to

monetize they have been focused on youtube and content and making sure youtube offers, she told me, the best experience for users and making sure there is no abuse that conference call is already underway i'm going to hop on it and bring you headlines as they come, back to you >> josh, great stuff, interesting final point as well with facebook taking down that content. we look forward to more comments, josh, from the earnings call. thank you very that. meantime, fight between heavy weights has been raging for five years, and now it's a book back in two minutes with the man behind it all, our own scott walker don't go anywhere. we return in a couple minutes.

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to help protect you and your business. announcer: to find an agent, visit trustedchoice.com oh, hello, engrossed in this thing. five years since the bill -- i can't believe it's been five years. >> i can't either, i know. >> since the herbal life feud. shares climbed 180% during this time, and here's alook back at that famous war of words >> if he stays long herbal life, he'll lose his entire investment >> could be the low of all short squeezes >> war of words heats up with carl icahn bashing bill ackman over the short position in herbal life. >> ackman has one of the worst reputations on wall street, and i'm going to tell you it's herbal life that's a classic

kplam example of what he does. he's the cry baby of the schoolyard >> the guy is road kill on the hedge fund highway, i never have to worry about him again, doesn't have the resources to sue me, not an honst guy or keeps his word and taking advantage of the little people >> you couldn't pay me to do it. >> is not used to anyone standing up to hem after this, he said, he literally said, bill, we can be friends now. i said, carl, you are no friend of mine, and that was it >> i never said i wanted to be friends with you, bill i wouldn't be friends with - >> okay, carl. >> you said you'd like to be friends to invest together >> carl, i have -- you think i want to invest with you? >> i'd wouldn't invest with you if you were the last man on earth. >> remember that >> when the wolves bite, two billionaires, one company, one battle breaking down the showdown between the investors when is it officially out, tomorrow >> publishes tomorrow.

>> what's it feel like to look at your name on this thing >> amazing i can't believe it's been five years since that clip. >> i can't either. >> happened on this network. >> five years is long enough to not only spend time reporting and digging deeper, but for us to look back and say who was right and wrong? >> wall street's score card is clear. right. >> yeah. >> herbal life shares at $100 today or thereabout? carl won that's clear and, you know, bill ackman's big short did not work out, and he never thought that carl would appear, and that changed the game, if you will, and that moved the goalposts in such a significant way that it was just too difficult, really, for bill to overcome. >> this does, i imagine, i have not read it because it doesn't come out until tomorrow, i'll take this one home, but explains how you got to the point on the show of having both of them calling in at the same time and effectively fighting

it was very unusual thing to ever see happen, but this does help explain of how they got there. >> i lay out clear how that whole thing happened, and, really, it was -- it was the genius of other people really, at cnbc, that helped that whole thing come together. you know, i had booked ackman to come on that day, but our colleague, max myers, was interru instrumental in the way that thing ended up on live tv, and you heard in the clip that we ran the oh's and awe's that day. it was extraordinary, and i, you know, i was able to get, i think, because bill and carl and herbal life all participated in this book, and there's news and stories that nobody has ever read >> including about a dossier that's not the dossier everyone in washington talks about right now.

i was not aware of that. >> there was another dossier what i wanted to do was a lot of what bill did, a lot of people knew about carl's place in this story. herbalife was pretty quiet throughout a lot of this and we didn't really get an idea. >> but it turns out they were very acting behind the scenes. >> they certainly were they commissioned this fbi style dossier by a former fbi profiler. >> don't even say any more about it number one in buy og graves in company profiles on amazon right now. >> that's amazing to hear that. >> not too shabby. >> the whole thing's been great, great experience. >> congratulations and we look forward to celebrating scott wapner joining us, talking about his new book this is the best interview of the show. >> it was fun for me. there's much more "closing bell" ahead. it's back to the sohn

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hello, everyone. i'm sue herera welcome back to "closing bell. we have just been listening in to the police briefing in toronto and as you probably know, earlier this afternoon, a van plowed into a number of pedestrians in toronto now the police are saying nine people have been killed. 16 people have been hurt there are a number of those people in critical conditions, possibly as many as five the incident occurred earlier this afternoon the police, assistant chief saying a moment ago, this was

not an citizen. the driver of that van is in custody but one person right now is in custody. apparently they are looking for any other possible accomplices but they have one person in custody. nine people killed, 16 people ndiored, five people in critical coitn. we'll be back in just a moment. kevin kevin kevin kevin kevin kevin kevin kevin kevin trusted advice for life. kevin, how's your mom? life well planned. see what a raymond james financial advisor can do for you. at fidelity, our online u.s. equity trades are just $4.95. so no matter what you trade, or where you trade, you'll only pay $4.95.

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welcome back to "closing bell." i'm leslie picker here from the sohm conference in new york. two tech aluminum nairries of their age and a lightning round series of questions whether he's be long or short, a variety of big name tech stocks bill gurley invest privately in most countries so it's not an actual book that he's talking about here i wanted to get you up to speed on his thoughts, bull/bear case for each of the following companies. facebook, amazon and spotify he liked. he would be long on those companies of the google, he was a bit more sceptical about that company, about the search lines. he stopped short of saying he would actually go short that company. in terms of elon musk and tesla. he said that he would be more in

favor of buying something on a bond structure, a convert be bonds in order to participate in the upside but protecting the downside due to the riskiness that he thinks surrounds elon musk and interestingly enough, he talked about hertz and he said that he does this with some trepidation because of carl icahn and this harps back to what we expect to read about in scott wapner's book. he did say that he thinks ride sharing is a huge substitute for hertz. of course bill girley big investor in uber did he make comments about some of the tensions on the board there and he hopes that doesn't repeat any time soon. back over to you >> leslie, thank you very much for that great coverage throughout the day from the conference. let's check in on the headline alphabet shares see soaring after hours. the stock initially spiked. then fell into the red down half

a% shares of td ameritrade. that despite a revenue beat to a record number of client trades per day. it's down just over half a percent. hasbro shares keeps rallying despite weak earnings. brian goldner tells cramer while toys 'r' us won't have much of an impact going forward. >> we head back some inventories across the entire retail channels in order to ensure our new initiatives weren't caught up in the liquidation and we'll begin to shift those as we move forward with great entertainment initiatives, we have the aconvenient gers movies and "black panther," we have the new solo movie come not guilty may it's very exciting in the second quarter moving into the third and fourth quarter with new innovation and initiatives for a number of our brands and gaming initiatives. >> that's coming up tonight at 6:00 p.m. on "mad money. mike, thank you very much. kelly, let's get back out to

you. ten seconds left and the good-byes. >> yes, plenty of time guys. gate stuff that does it for "closing bell." thank you for tuning in. it begins right now, "fast money. "fast money" starts right now. i'm melissa lee. traders on the desk are tim sebring and guy adami. larry robbins of glennview capital will be joining us and you want to listen to him. he had one of the best performing picks from last year. john pfeffer on one the hedge fund world will will be bullish. alphabet you know it as google's parent company. the stock has en