cryptocraze that square might be cashing in on. >> exactly >> not much reaction to the no action out of the fed. >> no. that was very exciting for me. >> it was really kind of a ho hum report today on the fed. >> we'll see how it trades into the close. >> "closing bell" starts right now. i'm wilfred frost. this is "the closing bell. a busy day for investors with many wondering whether another round of big earnings beats is enough to get stocks moving higher >> i'm steve leisman in washington where the federal reserve has just given investors something new to think about >> i'm bob pisani on the floor of the new york stock exchange i'm phil lebeau in chicago getting you ahead of today's key quarterly report from tesla. the big issue? cash burn. all that plus love and war in online dating and a dire, dangerous, deadly warning from the cdc i'm kelly evans.

"the closing bell" starts right now. welcome, everybody we'll get to those stories in just a moment. first a check on the markets as we begin this final hour of trading. the dow jones 49 points right now swinging nearly 200 points off session lows the s&p 500 also down a quarter percent. the russell making a strong showing today up nearly 0.75%. >> steve leisman has more on the fed. but first to bob pisani with those market moves and the main stories of the day here at the stock exchange bob? >> wilf, the important thing is the federal reserve today. they told what people wanted to hear let me show you the s&p 500 intraday 2:00 p.m. eastern time is when we get the fed statement there you see what happened. seven or eight points up the fed basically said inflation was moving toward the 2% target and was likely to go far beyond

that they felt confident with three rate hikes this year that's what they wanted to hear. but it's not lasting this a problem for the market. still not being impressed with the earnings not even with the fed telling them what they wanted to hear. the dollar did move down as the federal reserve spoke. and that helped commodity prices we saw oil, for example, spike up it wasn't enough to help the overall market energy just isn't big enough we have a bit of a problem here. the bulls are losing control of the narrative. look at the s&p 500 for the year here ever since we hit the high in early january, put that up here. we've been in what's called a descending t ining try angle. this is lower highs here technicians go nuts because easily you can just break through that on the bottom there's not a lot of support there. that's a major issue for the markets. so the question now is can the bulls regain control of the narrative. and see what's going on. so they're very happy, the fact we held the 200-day moving average. the fed today say inflation

should stabilize around 2% now they're hoping that the jobs report, stable numbers around 195,000. not too hot, not too cold will stabilize the market right now here's the problem losing control of this narrative is what i was talking about. take a look at this quickly here remember when we were talking about earnings going to be great. now instead of higher earnings, they're talking about peak earnings that's a change in the narrative. now instead of global synchronized growth, they're talking about slowing growth, losing control of the narrative. inflation just moderately moving up others are starting to say it could get even more aggressive the next few days, we've got to figure out a way for the bulls to come out and say our narrative is the right one global inflation, global concerns about a slowing economic -- that's not going to happen that's where the battle lines are right now. >> all right good stuff we'll see you shortly. let's bring in steve leisman now from the federal reserve in washington where the fed just announced its latest decision.

any surprises, steve >> they did not suggest any quicker pace for the hikes it also acknowledged that inflation moved up didn't seem concerned. it went out of its way to remind investors its 2% inflation target is quote, unquote symmetric. what does that mean? it seems there's a code by metrics because inflation ran so long below its target, they are not going to quicken the pace of hikes or become concerned if inflation runs far little while above that target. here's the result of the statement. the market raised the probability of a 25 basis point rate hike in june. that's coming. we're sure about that. it's 97% it kept it unchanged at 68% for the hike in september. pretty high percentage then it lowered a bit of the third rate hike this year to 25%. some bond yields fell before

coming back a bit. and the economic activity is rising moderately. unemployment is low. curious comment growing strongly because the data has not been looking at that. and the risks appear roughly balanced you've got to question is it two or three hikes from here it's definitely one more, probably two more. and the fed and you and investors and everybody has seven more months of data to figure out if it's three or more kel will i >> all right, steve. thank you very much. steve leisman there at the fed >> let's bring in julia coronado and christina hooper thank you both for joining us. i guess if we start on this topic of roughly balanced inflation, could that have been a little more hawkish, perhaps >> i think that is not where they want to go. they don't want to send a hawkish signal the whole goal is this became the second longest expansion on

record they want it going as long as possible they welcome a little bit of reflation. it's been running so low for so long, they would like to see it move above 2%. so they don't want to send that signal we're about to take the punch bowl away. we're going to keep it exactly go goldilocks >> this interesting thing is the stories we reads about the strength of the labor market there are anecdotes of bonuses for trucking firms cited in the journal today. if that's the case, is this an economy that maybe needs the fed to lean more heavily against it even if the other data isn't falling into place quite as strongly >> it seems likely that's the case we're seeing building wage growth pressures we're seeing it in a variety of different indicators including the employment cost index. and so it suggests that while it didn't hold for a long time, it is starting to be proven true. >> well, but wait a minute because that would suggest -- again, this is the tradeoff

between unemployment inflation julia, it has not been the case so far that falling unemployment has led to rising inflation. that's why larry kudlow comes on saying it's over forget it. do you see signs of real inflation? not just the cost pressures but across the economy that's picking up >> we see signs of some gradual wage pressures, yes. the question is, is it strong enough and does it produce inflation pressures? and that's where we really haven't seen that much evidence of that. and it has to be, again, just right. if inflation starts outrunning wage growth, then consumers lose purchasing power >> right >> so you want those things to sort of rise in tandem so far, yes, the eci looks good. but it's been very gradual they're still tightening policy, let's be clear they're still moving forward with rate hikes. it's not like it's a dovish statement. but it's just not getting far ahead of the data. letting the data calling the shots. >> kristina, how will they be

about the softening data around the rest of the world and the impact on the dollar which has been rising of late? >> it remains to be seen we're going to want to look carefully at the fomc minutes when they come out right now the fed is very much laser focused on the u.s. economy. and so while it's not raising any kind of alarm bells about inflation just yet, we're certainly seeing a strengthening of the labor market. and we also have concerns about input costs increasing as was indicated in the most recent federal reserve beige book where protectionism, concern about tariffs was abundant >> okay. julia and kristina, thank you both very much for joining us. let's turn now to the big dow mover of the day shares of apple up sharply 5% now after earnings beat and strong guidance that came on the closing bell yesterday josh lipton joins us now from san francisco with the latest. josh >> wilf, apple reporting strong results here being on the bottom

and the top. and more importantly providing a stronger than expected q3 forecast heading into this report, there was worry about that iphone x, but ceo tim cook telling me iphone x was the most popular iphone each and every week of the quarter. that's of course on top of last quarter. it was also the most popular iphone every week since its launch another positive surprise in the quarter, greater china revenue up a strong 21%. i did ask cook about trade tensions between the u.s. and china. cook saying he remains optimistic i think that china and the u.s. have this unavoidable mutuality where the u.s. can only win if china wins china can only win if the u.s. wins and the world can only win if both win i mean, it's pretty much that simple jim cramer also asked cook a smart question is wearables a real needle mover now or just something you're proud of because you're selling a lot? our revenues grew almost 50% and

that is very much powered by the watch and airpods, cook said if you look on a backwards basis, we are a fortune 300 company already in the wearable space. back to you. >> all right, josh thank you very much. josh lipton. before we go to break, here's a check on how that's rippling through the supply chain. these companies that had been hammered going into this on weak iphone shipment worries seem confident today. qorvo up 1.5%. cirrus up less than that >> they have traded less than after apple can buck an otherwise trend. >> and what josh just discussed. they're talking about services in some areas that may not have much to do with these components so we'll see >> either way, that's a 7% decline apple had over the prior two weeks already eradicated over the last couple of days resounding positive numbers. we've got 50 minutes to go before the close at the moment the dow is down 27

points lost a little bit of steam since the start of the show. slightly negative for the dow and s&p. nasdaq remains high but only 0.2% >> but "the closing bell" is just getting started next up, beware of the bug the cdc out with a serious danger warning for americans this year. see how it's going to impact business large and small. plus, love and war as facebook gets set to dive into dating, the established players get working. this is "closing bell" from the new york stock exchange with kelly evans and wilfred frost. we're back in two minutes.

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welcome back to "the closing bell." i'm wilfred frost alongside kelly evans. there's the dow and s&p. up 0.2% for the nasdaq we had a brief moment of positivity in the s&p but it has slipped back to negative territory. time now for the quote of the day. today's quote comes from mario gabelli who's launching to profit off of something unexpected devotion to their pets the mario gabelli pet parent

fund will invest in any sector which supports the well being of pets and pet parents >> by the way, when i first saw this news about gabelli launching this, i assumed it was a pot fund just because, you know, that -- the cannabis, the whole -- a pet fund this is similarly trendy, but very interesting >> i wondered whether it met a pet fund like -- >> his project >> yeah. it is extraordinary. this is so niche to focus on i can't imagine what the investment universe is it's not going to be huge liquid if he raises a lot of money for it >> but it's getting bigger every time we see a product they're spending so much money on this is a way to offset in the consumer packaging space so ironically it's being disrupted by a lot of upstore organic foods. this looks like dinner i would eat. you make a fresh salmon and put

it on the cat's plate. pet parents are spending a lot of dough zbla >> and as we discussed yesterday, they travel a lot in the u.s. >> the pets do so, yes, the investment universe is growing. >> thereyou go we'll see if that's a success or not in the weeks ahead anyway, we've got 45 minutes to go in trade. let's look at two stocks to watch individually >> up first, molson coors. ticker is tap. it's down 15% today after missing estimates on the top and bottom line. they own brands like blue moon in addition to coors >> you know what might help? this hot weather >> wilf, you need a palm front >> don't point that out. i'm just saying we could picture a nice cold beer in the sun. >> the mexican beers have done okay even though they've tried to buy up craft names right now, volume

numbers are not there. >> down 15% for that but much worse, snap the company behind snapchat, of course, down 22% after suffering through its lowest ever open this morning the collapse comes after the company posted declines in its ad pricing the company also continued to struggle with the controversial redesign of the app. and as that reads the app everyone is focusing on. clearly the numbers are concerning when you consider that revenues slightly forecast. only 2% higher and costs overall rising again so the loss overall was $385 million. it's not a really early stage social media company it still makes a huge amount of loss it hasn't got the scale of facebook, but it's got a lot of scale. there's a lot of question marks there. >> and the shares at some points were down about 9% or 10%. the more investors have seen and heard about this, the less they like it.

>> jim cramer saying they're not getting issues of what they're facing as shown by a 22% decline in the price. we have about 42 minutes to the close. dow's still lower by about 60. we'll see if it can turn positive the s&p down about six right now. still ahead, tesla is gearing up to report its earnings after the bell the key number to watch is cash burn we'll break that down as soon as it crosses the tape. up next, mike santoli with one of the market movers >> yes riding the beauty boom this year estee lauder has been one of the hottest stocks having a tough day today following its reltsus. we'll talk exactly why that stock is weak when we come back. o help you reach your goals. it's having the confidence to create the future that's most meaningful to you. it's protection for generations of families, and 150 years of strength and stability.

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welcome back to "the closing bell." 40 minutes of trade left mike's got a big individual stock mover for us >> wilfred, yes. u. estee lauder down today. it's up more than 50% over the last 12 months but after earnings reports this morning, beat on the top and bottom line for the past quarter. but the implied guidance in terms of the sales pace and earnings per share in the coming quarter was just not good enough to satisfy what is an expensive stock and a pretty demanding investor space doesn't really change the overall story, but just shows you how this is one of those stocks that seemingly was priced for perfection the numbers didn't quite live up

and you're seeing down 8% today in estee lauder, guys. >> okay, mike. thanks very much see you in a few moments for more discussion here meantime, the centers for disease control reporting an increase in mosquito and tick diseases to the tune of 200% in the last years >> and according to the miami herald, miami-dade saw a decrease of 7% in hotel revenue year on year in december 2016 after the deadly zika virus outbreak this year the cdc is putting $49.3 million to the diseases. dr. lyle petersen is one of the authors of this study and he joins us now by phone. thank you for your time. >> thank you glad to be here. first first -- >> first of all, i have to admit

i'm ter tri rified of the tick . why has the prevalence of these diseases got so much worse >> a number of imported mosquito borne diseases from around the world. one cause is simply travel and trade, global travel and trade is allowed more of these diseases to come into our country. the second is that we've changed the environment in many ways for example, with lyme disease, it's been reforestation which has allowed deer populations to explode. which has caused ticks to also explode in number which has increased the number of lyme disease. and more people live around these deer now where they're at risk the other factor is that our nation is not fully prepared to deal with this onslaught of new

diseases we need better tools to control them and we need to strengthen vector control organizations >> is it just a case of more diseases being carried by the same number of bugs? or are there more bugs as well >> there's certainly more bugs as well. there's a dramatic number of ticks that spread many of these diseases some of the increase is due to the fact that we've been able to identify and diagnosis more of these diseases but there has been a dramatic increase of both tick and mosquito borne diseases. >> what do you think a company should do? let's say they have an outdoor patio, people might come and get bitten and turn around and kind of blame the business owners for that, doctor should they start providing bug spray at the table

what are ways to combat this >> many businesses have supplied mosquito repellant for their customers. if they're dining outdoors that's a great way to help customers protect themselves another way is to work with local vector control organizations to reduce risk >> okay. democr dr. petersen, thank you for joining us >> thank you bye-bye. >> as long as it doesn't keep people from playing outside in the summer don't be afraid. >> or eating outside >> or eating outside i heard chickens are good for eating ticks if you have back yard chickens, they go through all day and -- if we could have backyard chickens, i would for that >> i thought you were recommending chick is good on the grill. according to a bloomberg report, amazon is offering to pass along the discounts it gets on credit card fees to other retailers. this is if they use its online

payment services now, there has been a lot of discussion and speculation among analysts as to what amazon wants to do in the payment space it has hundreds of millions of users and access to their payment. not just for lenders but for the likes of networks. and we're going to show you their stock charts and payment processors like paypal, stripe, and square all of these falling on the news but paypal fell as much as 5% rebounding a little bit now down 3% because this would infringe on paypal space. there is no pay with paypal button on amazon website back over to you >> all right could be telling deidra, thank you very much. paypal down now about 2.5% we have about 35 minutes to go and the dow is actually heading to fresh lows here we're down 122 points. even the nasdaq has now turned negative up next, facebook is getting into the dating game that's heart breaking news for a number of heotr online match

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hello, everyone. i'm sue herrera. here's your cnbc news update at this hour. at least 12 killed in a suicide

attack in libya in what appears to be an attempt to disrupt a vote planned later this year officials say the disease bomber blew himself up inside the building while other militants set it on fire british prime minister theresa may welcoming antonio guterres to 10 downing street. french police say 109 people are in custody after yesterday's may day protests in paris. the violent protest against economic reforms by the french president macron left restaurants and cafes damaged and six cars were set on fire. and you think you had a tough day? houston astros relief pitcher ken giles was so upset after giving up a tie-breaking three-run homer to the new york yankees last night that he punched himself in the face. he ended up being the losing pitcher wasting a shutout effort by houston starter justin verlander. >> i know that feeling >> i feel so bad we all know that feeling

>> i've been very close. yeah oh, my gosh. >> we all know that feeling. back to you guys >> playing sports on this show every day -- no. sue, thank you very much we'll see you next hour. how about shares of match group iac extending losses look at match, it's down nearly 5% again >> let's bring in our guests thank you both for joining us. my first question is why is facebook doing this now? presumably they've had all o the data, the know-how to do this kind of thing years, two three years ago. why do they suddenly decide to move into it now >> i don't have the answer to that question. i wish i knew. a lot of people when they heard this thought isn't facebook already doing this and it wasn't actually surprising it was surprising they were so late to the game, i think. and a lot of what exists now are

already using data from facebook also bringing your friends of friends in to whom you're going to date. so it is the timing is strange >> did tinder and some of these owned by match and iec, do they factor into facebook >> tinder is a popular app amongst millennials right now. >> could the timing be related to the data privacy scandal simply because perhaps in the past they've thought this is something we don't want people to think we're using their data for? but now the cat's out of the bag they may as well jump in on the bandwagon. >> fast locebook has a ton of da about its users. instead of sharing that and allowing for a third party partnership, it could be that facebook's looking at it like let's own this data. we operate it. let's make sure that people are aware of what we're doing with the data so this product is going to be affirmative opt-in consent

but lets us, facebook, actually maximize the value of the data inside the sort of walled garden of facebook. so there could be a little bit of that. but, i mean, look. to me this is a natural fit for facebook zuckerberg's mission is to connect the world. so this is a case that fits with that you know, i think facebook has proven that they can take the best of kind of the best of other types of use cases i'm thinking about snap stories and be a fast follower and just go in there and do a better job executing, distributing their product to its massive user base and that's what, you know, really the scary thing is for match investors. i think it's going to affect the multiple. >> do you cover match or iac >> i do. i cover both >> so from your point of view, is this -- let's call it a 25% drop in the market cap in the one case spp that justified by facebook's move here >> yeah. the way i would say it is that

up until really yesterday, i think market sentiment had match as the market leader and they are today the market leader in online dating, right but we had been ascribing a premium multiple to the stock. so something -- in excess of 20 times ebitda now you have an internet platform like facebook, it just capped the multiple that you're willing to pay for us we're now scribing more of an inline multiple with the industry i don't think it's going to dramatically impact the model over the midterm but it could because facebook is free and it could hurt the pricing power narrative for tinder's paid subscription products and it's just a fear in the market place that puts a cap on the multiple that's the thinking there. >> in terms of the broader

online dating market, is it still growing or is it past its peak growth? and which apps in particular are attracting the best attention? >> so it is completely still growing. and i think has reached complete also there's no stigma attached anymore for any kind of age group. for younger kids particularly for our readership at elle they're very interested in a female empowerment angle to dating right now and so, for example, an app like bumble which is an app where women are the ones who are making the first communication to men is very popular they have over 12 million users. and not only do they do dating, but there's also -- you can find friends on bumble. they're also launching something called bumble biz which connects you to female business owners. >> is that something facebook could look at and say we're going to go ahead and offer that, too, on our new service?

>> i think that's the fear for all of these companies at facebook because of their user base being so big could take all of the best features from all of these apps and coopt them. but first one like bumble, women do have loyalty to certain brands like that and they don't really feel that threatened. facebook is such a huge company paired to them, they have their niche. >> thank you both very much. the person of course we have to talk about this with later, steve grasso he said this would be the low. sorry, steve >> he defied his own rule on that we also were showing iac's statement on this. if they can kind of joke about the russia issue on facebook's platform, they're not too worried. we've got 24 minutes to go until the close. we are at session lows we have sold off sharply in the last five or ten minutes or so so we are now down 0.6% on the dow and the s&p. the nasdaq which had been positive for most of the session

down slightly as well. shares of amazon, they're up nearly 30% year to date. but one market watcher says it's still a good time to buy the stock. we'll explain. and we're gearing up for another parade of earnings after the bell led by tesla. we also have square, fireeye, and fitbit "the closing bell" will be right back say carl, we have a question about your brokerage fees. fees? what did you have in mind? i don't know. $4.95 per trade? uhhh. and i was wondering if your brokerage offers some sort of guarantee? guarantee? where we can get our fees and commissions back if we're not happy. so can you offer me what schwab is offering? what's with all the questions? ask your broker if they're offering $4.95 online equity trades and a satisfaction guarantee. if you don't like their answer, ask again at schwab.

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welcome back to "the closing bell." i'm here with wilfred frost. we're looking at the s&p 500 a moment ago said there are some heavy sell orders on the close weighing on things only two sectors are weighing right now. even though crude is relatively unchanged. apple of course having a strong day. some of the suppliers flip side of things. consumer staples down about two. joining our exchange today, we've got mark lehman, steve grasso, and rick santelli. steve, i'm going to start with you. going into the close yesterday,

you got one big stock right. one smaller stock wrong. because you bought apple into the close. >> i was bullish on it but i did buy match. remember the three-day rule. which the father of the three-day rule is my tech guru gary burrman he introduced that to me years ago. where you see a total butchery of a stock, you have to say enough is enough i think you're going to see a defense case made on that stock not to get too caught in the weeds on this. but the top ten holders have to come out and defend that company. >> more importantly on apple, 5% in one day, are you now selling it for a quick gain? >> no. i'm -- you know, i've been a holder of apple. i'm going to remain a holder of apple. i said as long as the company can change the narrative to a more services-oriented business and not so dependent on hardware, it's about changing the perception because we all know that it is still a hardware company it will remain a hardware company. but as long as they can say services are growing now and

this is a pretty respectable number that we're talking about. >> mark, what are you watching >> i'm watching sort of the leadership you just described whether it's apple or facebook and i'm also noticing over the last quarter that you had ample opportunity when the stocks got in the way of either the legislation or tweets or whatever people have a chance to buy these at much lower prices i think volatility will remain we have a tug of war deciding how much inflation we have i think you have to watch the leadership because they have not changed. yet the opportunity to buy them has happened and i think it will continue to. and i don't think you want to shy away from those leaders. >> rick, what's your takeaway from those fed minutes >> you know, there really wasn't much of a takeaway with regard to any type of change that in my opinion is significant but i do think when you look at the markets and the way they reacted to what was expected, we do learn something the curve steepened a bit after the fed meeting.

we saw the note yield drift back under 250. and we saw the 30-year slip back fed meeting's over, the short end takes a breath the long end is still on notice because we have the employment report on friday and i think that always seems to be a proxy for growth in the economy. at least if you keep it simple so i would continue to look for a little bias of steepening as we move towards friday's number. and anything after a solid performance, of course, gives us the possibility to blow out that $3.3 3.03%. i think the long end is going to have a big day on friday but the short end is probably going to drift lower from here >> and inally, steve, we have tesla coming up after the bell today. i mean, that one is also going to be one to watch are you doing anything with it now? >> i bought it yesterday and i bought itagain today

and you saw it spike right on the fed minutes. unrelated to the fed minutes -- >> you saw tesla spike on the fed minutes? >> kpa accountly you have to watch these technology companies ran off of that they reversed and gave a little bit back i'm giving wilf a heads up on this one i'm going to look like a hero or get decimated tomorrow >> i know. >> it's going to be up 25 or down 25. >> mark, quickly talk us through your view on amazon. it's one of the major tech companies that you like. >> yeah. i mean, obviously we saw a blowout quarter when they recently reported. i think most important is the leverage they have they can pretty manufacture the kind of earnings we had in the first quarter going forward and decide what kind of expense growth they want to have i think the kind of leverage they have now with the cloud and some of their faster growing markets, they're getting into the wallet like we saw recently. had some news on their swipe what they're doing to companies like paypal and visa i think the leverage these big companies have is extraordinary.

and what we obviously know now and have been saying far long time is internet economics lead towards monopolies i think the only thing that gets in their way, only thing really is inflation >> yeah. >> exactly >> or the legislation could help just want to point out here as the dow continues to sink, we're approaching 23,955 in fact, we're below that now. so that was of the 10% down from the recent highs, steve. going back to late january so we really haven't been able to kind of make a strong -- and this despite what you were saying is we should be heading into earnings season with someone there to lead us you can't count the counterfactual what would we have been without the strong record earnings but when you look at this level on the s&p, you have to look at the granularity of it. if we do not start forming a foundation here above 2600, the

200 day is within eye shot right now. but once again, this was record earnings fundamentals was there i think that is the underpinning under the market without those record earnings, we would be probably a hundred handles lower at -- >> but why would we still -- and i know that's hard sometimes to ever just pin it on. but why do you think there's such inherent weakness >> there's inherent weakness because there's a lot of unknowns going forward we've had that punch bowl. you guys have alluded to that. we don't know the way the market is going to react. we haven't been in a true rate rising environment in quite some time and the market has to figure out what that valuation is >> but rick, in terms of the rate rising environment, the 10-year has been actually fairly steady for the last ten or so days now >> absolutely. and i think that's a critical point. you know, we made our 2.95% high took awhile to get over 3% i think that is significant. i think even in a rate rising

environment with balance sheet reduction due to getting a little more girth as time goes on, the long end is behaving pretty well with those conditions pressed upon it and the wild card, of course, is growth domestically and globally i'm not sure how much weaker growth will play into that calibration. could it be weak enough to get us back to 2.60% or $2.2.50% i'm not sure it's a compelling argument it's hard to go into the counterfactuals. but rates are firm when you consider they closed at 2.41%, wilf, even though we've been steady with many periods we've gone sideways, there's been little giveback in rates. it seems they go up, they hug, they go up, they hug but few retracements anywhere near where we settled. >> great stuff we'll leave it there, gents. thank you very much to mark, steve, and rick. we did briefly touch a 200-point decline on the dow during that

interview. >> just about 12minutes to go. we'll see what happens here. especially as we continue to see what kind of selling pressure we might have the s&p is down 20 the nasdaq's now down 25 points. russell trying to hang onto a small gain the stock is up around 30% for the year and typically moves 'lng than 10% on earnis. wel reveal the mystery market mover when "closing bell" returns. let's get started. show of hands. who wants customizable options chains? ones that make it fast and easy to analyze and take action? how about some of the lowest options fees? are you raising your hand? good then it's time for power e*trade the platform, price and service that gives you the edge you need. alright one quick game of rock, paper, scissors. 1, 2, 3, go. e*trade. the original place to invest online.

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welcome back the selling pressure may be easing a little bit. we still have about $750 million to sell here, but it worked through some of the bigger numbers. the dow still down 194 points. >> it doesn't look like it's easing pressure from that chart as you can see the final hour of trade has been a messy one. we are down as you say nearly 200 points >> the s&p 500 down 21 right now. the vix, by the way, only fractionally higher. and the russell still positive how about after the bell we get a bunch of earnings headed our way from tesla, square, and many more only fitbit negative in the session right now. and according to partners at ken show, could see big swings

>> kensho data shows either up or down over the past eight quarters were released for square, over the past eight quarters, that figure is 7.7%. and for fireeye, the move an average of 11.5% either up or down when it reports earnings. >> was it fitbit then? that one historically has been about 14% mover on its earnings. which one did we tease i think it was -- was it fitbit then >> i don't know. >> anyway -- yeah. it was fitbit. all right. there you have it. we're monitoring the wires we'll bring you the analysis coming up after the bell up next, we are coming back with the closing countdown >> then we'll be joined at post nine by jim grant in the next hour he'll weigh in on the fed and the magic moment he's tcngwahi for. tell you what that is still to come keep it right here

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♪ as a lifeguard in savannah ♪ ♪ i'm 85 and i wanna go home ♪ ♪ dropping sick beats, they call me dj nana ♪ ♪ 85 and i wanna go don't get mad. get e*trade, kiddo. welcome back to "the closing bell." we got about four and a half minutes of trade left. it's not a pretty picture as we approach the close we are right at the session lows here is a picture of the s&p intraday chart as you can see, we were lower at the open but only slightly pretty much right through until about 2 p.m. we then got a bit of a pop they were initially taken. they were fractionally more dovish than people expected. but that lasted for maybe 20

minutes or so. it's been a steady selloff into the close. we're down about 0.8%. if we look at the individual three indices, you can see the dow is down to a similar amount. in and around that 200-point level. the nasdaq is out performing but still down itself. it had been in positive territory for much of the day. it is now down 0.4%. we did say there was a bit of reprieve after those fed minutes. they were more dovish than expected we did see the dollar soften a little bit for a brief moment. but the strengthening of the dollar has come back as well as we approach the close there you can see the dollar picking up over the last course of a half hour and that stronger dollar story has been something of note over the last couple of weeks bob pisani is joining the right now. let's have a look. some four or five sectors down over a percent now as we approach close another random ones as well as

like consumer staples. >> i would note new lows virtually across the board rarely do you see an entire sector hitting new lows, again this is a recurring theme. throw a dart at the consumer staples and you're going to hit something at a 52-week low that's notable this has broadened that. this is a disappointing day. two important things happen that was good for the bulls apple had a great report it held up throughout the day. big volume, a lot of people buying it. number two, the fed said what everyone wanted to hear. what the bulls wanted to hear. that was the fed seems to be anticipating that inflation is going to stabilize around 2% they were not sending signs that we're worried it's going to pass our targets. that means three rate hikes rather than four at least that's the way people down here interpret it that's good news we saw the market rise six or seven points initially then drift lower higher market on close sell orders come in and people

watched those kinds of things. and the selling accelerated. i think the bulls are in some trouble here right now they've got to change this narrative around >> bob, we're on track for a one-month low close. if we close where we stand which is down 186 points let's talk about the dollar. we did see ut soften a little bit off the fed minutes the same way the stocks went up a little bit. that's turned around quickly into the close. >> in theory the way it was described, it was initially the correct sbrerpgs to the fed's comments we saw yields move down as well. that pushed commodities up oil moved up on this oil stocks moved up. so the initial reaction for the market seemed to be the one traders were anticipating. and we simply turned around and reversed from there. what we've got here now, if you look at the s&p 500 since the start of the year, we hit the high in late january since then we've had a series of lower highs. the market's moved down.

it's tried to rally. it's called a descending triangle it's a technical formation and we're at the verge of breaking through the lows for the year we got another 20, 30, 40 points there. but that's not a good formation that you want to see we should have turned it around. remember the narrative beginning of the year, record earnings now they're saying peak earnings then they're saying global expansion. you and i were talking about that another saying slowing growth. and finally interest rates under control. now some of the bears are even saying, no, inflation is stronger than that suddenly the narrative has been lost by the bulls. that's what i'm talking about. >> and we did have some disappointing pmis this morning as well. plays into that softening global growth picture you mentioned oil prices are up. pretty much the only positive sector as we approach the close is energy.

>> juniper, good numbers overall. mastercard had good numbers. mastercard's in the technology sector we had good earnings reports today. >> there goes the bell despite those earnings reports, bob, we closed down around 170 points 0.7% on the dow. ringing the bell here at the big board capital c. a disappointing final hour of trade. kelly's got the second hour. welcome to "the closing bell," everybody i'm kelly evans. dow dropping 170 points or so. interestingly enough, that puts us at 23,924 so we are closing at more than 10% down now for the blue chips from their recent high back in late january so even with the comeback that we've staged at various points over the past month or two, we're sitting here pretty much the bottom of that range the dow down 0.75%

it had been positive until we were in that final hour. it was down about 0.4% closed down at 7100. significantly the dollar was at t.hs it's going to be another busy hour for earnings after the bell here phil lebeau is joining by. julia boorstin deidra bosa. eric chemi bertha coombs. and aditi roy will have fitbit results. we'll see you all in just a bit as those earnings start to cross. joining me now is senior markets commentator michael santoli alongside sarat sethi. welcome, everybody leading the dow today was apple with about a 5% gain after

earnings yesterday i'd call it 4.5% verizon down 2%. aptive was the big gainer. and unum group lagged. we talked about earnings season how there was so much anticipation of strong profits and the market had kind of started to find its footing. and then now lately, even today it was really just the last hour that things fell apart >> taking aggregate good numbers for granted. it's not an encouraging pattern. you have this heaviness later in the day. but i also think it's mostly sideways it says to me it's more of a confused churning market more than one that is particularly fearful you know, even with the selloff in the afternoon, it wasn't like there was an urgency to the selling. it was very kind of measured i don't say that to say it doesn't mean anything, but it doesn't change the pattern very much we're kind of in the middle of this lower zone. >> the volatility vix didn't

moou much this was unchanged the market snapshot at 2:00 p.m. looked very different. >> i don't think the fed had much to do with it the fed said what we were expecting. inflation is there but the market's just having to slow drip downwards. it starts off most days strong in the morning then it kind of me aanders and sells off in the afternoon companies with strong earnings, most of them stayed where they are. that was expected. >> if they're weak, they get crushed. >> if you're weak you get crushed all day through it and there's no follow through the next day now, the positive of all that is, we've been waiting for something like this. >> what do you mean? >> in the sense that the market hasn't corrected other than the first correction we had. right? >> this whole cycle, you're talking about. >> that's the whole point. it's doing what it's supposed to do when you have a peak in the rate of earnings, you go into the pattern. >> you're bringing up the peak earnings thing again. >> that's okay >> you're saying the peak rate

of change. you're not saying this is it corporate america is never going to earn more than it is in this quarter. it's just it's not -- >> no. it's just not going to go 25%. earnings are going to be up 25% in the first quarter >> is that surprising? it was helped by the tax change. >> you also have top line growth of about 8%. you can't say it's a gimmick it's really actually good economic data. and the argument doesn't hold the history. the market does not correlate to the rate of change of earnings it correlates to the direction of earnings. there's no way that's negative before you invert the yield curve sustainably. >> you're still positive for the year >> you have to be. but the thing that's funny is you're down 8% from peak everybody on the way down said, well, there's not enough the bulls are still in control now the bulls have lost control and the sentiment is getting negative and you're down 8%, with earnings up 20% for the entire year, you know, our call is that you got to buy them here it's been our call since you corrected in the beginning of february >> real quickly on the dollar,

we did see that strengthen to a 2018 high. >> then it backed off. the fed was interpreted as net dovish a little bit. they basically implied they'd let inflation run a bit. but the 2-year yield came down, financials lost some steam if you want to point to one -- >> and stocks didn't take it that way -- >> i think stocks are very confused they don't know what to wish for right now. >> it's not the old paradigm where if the -- >> it's not clearly the pair di - paradigm i don't know that it's -- again, we're just kind of in these opposing currents. >> i think that combo of, you know, the peak earnings, does that mean growth or inflation? and one day it means inflation or two out of three days it means inflation. one day it means growth. >> by the way, the adp jobs report this morning was pretty solid. we have the bls one coming up friday >> there is nothing wrong in the

data that would suggest that it was the end of this year or next year i cannot find a way that my $155 s&p earnings estimate for this year can be too high which means you've already discounted the caution you're down three multiple points from how you came into this year at 20 times based on the likelihood of that one, you'd have to have an economic catastrophe to not hit that. meaning you'll be trading at 17 times earnings >> well, this is the interesting thing. is it simply that investors aren't willing to pay up as much for every dollar of earnings, sar sarat? if so, why >> a couple other things are happening too. yes, investors are being cautious you've had five years of phenomenal growth. maybe we're not going to get it. i think you're going to get good earnings but i also think you get this rotation out of stocks now we haven't seen that if ar long tomb i think you're getting money moving out of there. you have a pause on the buy

button people taking profits. and it's okay. you can now start to point capital into cheaper stocks. >> maybe the 2-year is 2.5%, but if you could express its capital return as a percentage and in a company like apple which has to be as steady and solid as -- >> listen. this isthe time where we are famous for coming on tv because the market's down and getting cautious you believe that you're not going toward recession and the market is down 8% and earnings growth is is positive and the fed told you thaur goiey're goid what you expected them to do, tell me how it's a time to be cautious in january with everybody ripping to the upside every day, that's the time to be cautious not when you're pulling back >> let's talk about spotify earnings for the first time as a public company, this set of results is out. julia boorstin has though numbers. >> spotify revenues coming in right in line with estimates at 1.14 billion euros

that's right in line with estimates. monthly active users, 170 million also in line with estimates. the company reporting 75 million premium monthly active users those are the people who pay for the subscription service we see that the stock is declining in after-hours trading. it's likely due to the guidance. the company guiding that is q2 monthly active users between 175 million and 180 million. estimates were for 179 million soslightly lower also user guidance is unchanged in a ring of 198 to 228 million versus estimates of 204 million. earnings per share, the number we have there is a loss of one year on 1 cent per share but that's not comparable to a loss of 36 cents -- euro cents per share. we're looking to understand how to better do that comparison but that is the loss per share

looking now the stock is down 7.5% back to you. >> thank you very much pretty much in line with what we see out of the gate with publicly traded companies. the added risk with this one is it needed to be tested by markets. didn't go through that if you want to call it rigorous process to set the price for the ipo >> well, the stock's been straight up. that's the other thing to keep in mind. >> yes this is not that volatile given all that >> it's not. i think you also don't exactly know how to read management. right? you don't know if they're typically cautious for giving guidance because this is the first time they've done so yeah i think this is par for the course it's definitely not a battle tested stock in terms of people knowing how it operates. >> it's down about 6.5%. interestingly throughout this came up with apple as well they're talking about the growth in apple music and how quickly they've been able to ramp that up and whether they can make a

better business out of this. they don't have to worry about it being their sole income >> apple can do the amazon you don't have to deliver a profitable metric, just deliver growth spotify's got the quandary where at some point we got to show growth -- sorry. got to show profits and growth so i think the call's going to be interesting to see how they're going to marry those two thogt. >> i also heard people be positive on the name because it's in sort of the voice space. saying the whole attraction of using voice which i thibrings f into this, does that keep a bit under spotify and make it more attractive >> i think it's a general keep it simple, you need exposure to this, it's the present and the future it looks vaguely like netflix of moo you can. i think that's it. >> spotify down about 6.5% right now trading just under $160 a share. circling back to the market today, we had, sarat, apple up

after results. that was bucking the number one narrative here also helped the supply chain is tech then going to be the leadership group it's one area that people have been telg us they think could carry water for this market. >> tech is going to lead again tech has the secular growth. investors have seen that before. the other thing tech doesn't have is the, quote, wage inflation that others have so you can be safer over there oil being where it is, you got geopolitical tensions. you also have higher demand and supply coming on the question is, if oil comes back down to 50, are the prices of these oil companies sustainable? i think that's going to be a test and if it is, then i'll see -- you'll see a lot more money coming in. looks like there's a lot of fast

money right now, but i think that could be the test >> well, we're kind of focused on what we call the productivity trade. if the fed is raising interest rates because they're worried about inflation, the only way to combat at the corporate level is through productivity what finances productivity obviously the banks. it's not just our view, it's what's happened the last two cycles do you think that makes them more productive? >> it distracts me >> me too. i'm with you >> i'm a total nerd. >> let's get to aditi roy now for numbers. >> let's start from the top line $2.48 million is what they reported on revenue versus

$2.37. the real story is on the q2 guidance that is very light the next is between 275 and 295 versus expectations of $310 million. also on eps, that guidance is very light a loss of 27 cents to loss of 23 cents. that's the margin versus what analysts are modeling out to be a loss of 11 cents so there's a big gap there the company is saying that they expect results on the second quarter to be impacted by the reduced demand by the channel for trackers partially offset to watch revenue driven primarily by sales basically the smart watch industry, the tracker industry is waning. focusing more on smart watches where there's fierce competition. that's really impacting the company. for the full year guidance, the company also saying we expect gross margins to trend lower through 2018 as smart watches become a greater percentage. a lot going on here but the stock at the moment, kelly, up

about 2% >> thank you this kind of the flip side spotify has been battle tested tesla earnings are out let's get out to phil lebeau how'd they do? >> a little better than some people expected. the loss was $3.35 per share the estimate they were all over the place the estimate was for a loss of $3.58. so better than expected. revenue coming in stronger than expected in the first quarter. $3.41 billion. the estimate was for revenue at $3.22 billion. we're still looking for the cash flee in terms of how much cash they go through. but it's better than some expected because they ended with liquidity of $2.7 billion at the end of the quarter basically you're looking at $700 million, $800 million in terms of cash burn in the first quarter. much better than many people were expecting in terms of model 3 production and this will get a lot of

attention. 2,270 per week that's what they averaged for three weeks in april remember they're ramping up to either 5,000 or 6,000 by the end of june. in april, 2,270 model 3s were produced each week for three weeks straight and that's according to the company. also capex spending coming in at $3 billion a little below the $3.1 billion that many people were expecting. again, one reason you're seeing tesla shares move higher, better than expected numbers on the top and bottom line. and that cash burn number coming in lower than many people were expecting. kelly, back to you >> phil, i see in the release they're saying at this stage model 3 is becoming the best selling mid-size in the u.s. >> that's not really saying much, kelly. who's selling sedans and it is a dying market so sure you got to hang your hat wherever you can hang your hat >> yes

and they are looking to do that. phil, thank you very much for now. tesla shares up 2.5% mike, what do you think? >> little bit of a relief. they're also reducing 2018 capital spending from $3.4 billion to $3 billion. and they're talking about 5,000 production rate of 5,000 a week for the model 3 down the road. they think they can get cash flow positive in i guess the third and fourth quarters. >> how are they able to pull back on the capex number when they're spending a ton of money to get these cars to market and they're not changing as you said the production >> a lot of it they talked about is process right? are we going to rely less on the machines and more on people? who knows. >> which is such a great -- i know you can -- this is the productivity train more on humans and less on machines >> well, more on machines and less on humans >> but they're doing the opposite >> i stand corrected >> this is my favorite theme that it turns out the people are more productive.

>> you think >> exactly >> we don't know the stock it will be very interesting to see. i mean, the cash burn is less. i think that is a key, key metric for this stock. there are a lot of people in the bond world wondering how long this company can go without getting more cash either raising equity or bonds. if that is the question -- because all the other stuff can get worked out if you're not burning cash as fast, it'll be out >> the thing to look at is how the various bond markets trade on these more speculative names. that'll be a guide of when people are really giving up. >> yeah. when they start to price default. a lot of focus on solar city and how much of a drag that may be concerns -- >> keep in mind they're putting it in the bag they're going to get to 5,000 a week. that's a doubling of what they just achieved. >> for three weeks it's still an uphill climb let's see how square did deidra bosa has those numbers. >> hey, kelly. square shares volatile in the

after-hours those earnings was in line with expectations. revenue beating on those forecasts. eps adjusted 6 cents that's what the street was expecting. in terms of revenue, $293 million was expected coming in at $307 million. that's up 51% year over year gross payment volume or gpv coming in line expectations at $7.8 billion that is down up 30% year over year raising its revenue guidance, also eps guidance. however, keeping ebitda guidance in line. also perhaps notable that last quarter square updated under the circumstances cash user numbers. it was 7 million as of the end of december. it is not updating this number this quarter also larger sellers, they now account for 47% of gross payment volume that is unchanged from the various quarter. while square is moving up market, perhaps this suggests the momentum is at least if not slowing staying in line. we're going to jump on the phone

shortly with the ceo and ask her about the latest news out of amazon it could be pushing deeper into the payment space and what that means for square >> exactly thank you very much. also, bitcoin has been a weird kind of -- i can't tell if they intentionally want it to be an overhang or not. i guess it depends on -- >> they were sort of participating in a potential way. and the stock got the benefit of it that fever broke. >> and cy tron zit ron -- >> as it starts to get big we are b does it look like another. it's an expensive stock. >> but again, those are quite different. square shares down about 5.5%. we also have earnings on aig here eric chemi with those results. >> aig just reported earnings $1.04 a share. that's a big miss compared to the $1.27 that analysts were expecting. right now looks like the stock is down a quarter percent on the chart i'm seeing you can see a little move there.

already down a couple percent today. but it had been up about 5% in the past month so it'd been one of the good stocks over the past month we'll have to see how the market reacts to this news as people dig through the earnings here over the next few minutes. back to you. >> thank you very much some pressure on aig as we mentioned, unum was putting pressure on. >> also metlife. every time you get this focus on the books seeming they're exceeding expectations, it sort of happens i don't know what's going on with aig, but still a $50 billion company. sometimes i feel like it's a little stub that was floating around >> aig seems to be one of these restructuring companies. we're going to see what's going on in there. there's a lot of value investors there with a lot more patience i think you're going to see execution there. >> tone last word to you

what are you watching? >> people have been nervous of which they're in again, i have the same call not necessarily on the insurance companies but on the financials. you wanted to sell them or take some profits in january when everybody loved them everybody's starting to dislike them again, that's what we want to take advantage again. >> leaning against the wind. thank you very much. appreciate it. we'll have more on all of these results. there's a lot more still to come on "the closing bell." straight ahead, the big debate on tesla. do you want to own this stock? plus, much more on spotify, square, fitbit, express scripts, aig, and much more as the earnings parade rolls on "the closing bell" with kelly ste w rkve from thneyo ock exchange is back in two minutes. ifrom the market when it might be time to buy or sell? with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time.

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the revenue numbers and gross margin numbers were slightly better than we expected. but i think with the cash burn we're seeing here, i think the concern on them selling more cars and burning more cash is a apperpose. >> even though they were able to go to 3,000, reaffirm some hope of hitting 5,000 before too long here >> right if you're burning more cash, the more cars you produce, that's not the right business to be in. that's the real issue. end of the day, in this market a lot of people lost sight of what's important cash if me and you started a business, we can't be out of cash the fact they're burning more cash has to be concerning. >> so they have at this point $2.7 billion they say of cash. at the rate you're now projecting for sales and production, when do they need to raise more >> we think it's this quarter. i know that mr. musk has said they don't need -- >> meaning out of this month or next >> correct

we think they're waiting until after this earnings print. one thing that we want to get claurty on on the call, yesterday came out with sells for tesla cars a little over 3800 cars. that's less than a thousand cars produced per month is inventory building? we need to get answers on that on the call. >> galileo russell used his youtube channel. he's here with us here on set to talk a bit between that and the twitter page, he started a campaign to ask a question during the earnings call it apparently worked after he tweeted at elon musk, he replied ok. and tesla confirmed galileo will get one question on the earnings call today which starts at 5:30 p.m. eastern thank you for joining us here. this is cool, right? >> yeah. it's unbelievable. >> what's your question? or do you feel okay share with us >> i have a backlog of questions. so i could cover something that

hasn't been asked already. i'm going to ask about over-automation. if that's an issue any news on a chinese factory. whether there's a breakthrough in battery technology with the tesla semi with the specs they unveiled there also the tesla network >> do you own tesla shares >> yes, i own tesla stock. >> when did you start buying it? >> 2016. the position that i have now >> wow >> so are you coming at it from the perspective that you really think the long-term story is intact and you want to see progress or you're worried about whether they can execute >> i think tesla is crushing it. the long-term story is more intact than it's ever been although you did mention they burned a billion this quarter. by my estimates, it was closer to $700 million. about $600 million of that was capex. if you take that out, the core business is actually not that unprofitable at all. that's what the model 3, showing no scale >> wait a minute we got gordon still sitting right here

i'm not saying he's got a beat on you, but are you rethinking this at all? >> not at all. it's about cash. if you look at tesla's financial statements and some of the things they've done with respect to moving items out of gross margin to things like r&d and operating expenses, you look at some of these items you have to look at cash if you look at the cash balance, again, it's concerning we haven't had a chance to fully go through the numbers but what we focus on most with this company is cash burn. and, you know, there's also what we've calculated as roughly $1.35 billion in deferred capex they'll have to address imminently that's one of the reasons why we think they're going to have to raise capital imminently >> i'd like to point out the r&d point. jim chanos references that as well there's a major flaw there others include r&d in their gross margin because that's to upkeep the current vehicle lineup the r&d budget for model 3, model y, the semi or the

majority of it is. that's why it shouldn't be added. >> what other company dos you own? >> only tesla and crypto assets. >> you're like the perfect embodiment of your age no cannabis stocks >> unfortunately not >> do you mind talking about how big your position? >> yeah. i have 54 shares that's my entire net worth >> any concerns -- >>you haven't used them yet? >> i haven't got them yet. they're late like the model 3. >> are you faifzed at all by th solar city issues? >> no. they've done a great job of shifting away from leasing into direct sales and i think long-term taking a step back, tesla's mission to transition the world off of fossil fuels means that we're going to need a huge energy business to be creative if everybody's driving electric so i think long-term it's a strategic -- >> you are a true believer

>> definitely. >> and it's a pleasure to have you here we look forward to your question on the call. galileo russell and gordon, appreciate it very much. great stuff, guys. sprint's out with its earnings also announcing management changes. let's bring in jackie de anless with more. >> furst, claure has been appointed as executive chairman. they're going to collaborate on the execution of strategy as well as the combination with t-moblie interesting with claure, he will assume the role of chief operating officer at softbank as well in that role he's going to oversee softbank's investment in sprint and the combined sprint/t-moblie company. moving to earnings we had a slight beat on the revenues $8.08 billion. 2 cent earnings. that was a surprise beat and gain for the company but a little bit of a disappointing net adds

the expectation there was 242,000. shares trading a lult bit higher now. >> jackie, thank you the whole focus is going on on whether this t-moblie deal gets done >> that's the entire story for awhile it's a political story it's a regulatory story. and legal when it comes to at&t and time warner if that has any bearing on this. >> we'll find out about that one next month meantime, checking in on sha sha shares of spotify after hours. joining us is managing director at riley >> i think this is the time we get to know a new company in the public markets and how they want to communicate with us. and this is a company that put out guidance to everyone they executed with what they

said they would do and so we found that this is a company that doesn't sandbag a lot of times ipos sandbag and blow away the numbers first quarter out. this is not what spotify is about. they tell you what they wanted to do. and they're doing it i think some of the early enthusiasm is maybe pull back on that you know, we watch coverage on spotify in late april with a neutral rating our concern was more fundamental. this was this is a company that's a great company but a lot of their growth is driven by reduced prices we saw that come to end in a quarter. down about 14% year over year. you know, that's night and day from netflix which is growing while raising prices these guys have competition from apple and amazon and the products not as differentiated you know, that fundamental where it may be part of the reaction of shares as well. >> barton, it's a great point. does spotify -- can it claim

we're early enough in this we want to build our base even at discounted prices before we then can kind of leverage that to raise prices higher? is that -- i mean, even look back at netflix. there was more of that going on in the past. >> well, look. certainly i think these guys are playing a long-term game and i think that that's the right game for them to play. you know, i think the question is whether, you know, it's worth $28 billion to $30 billion of market cap with a low gross margin, high fixed cost, declining business you know, our argument is that it's not really something that we want to chase from a valuation perspective. but i do think this is a different story than netflix netflix has very differentiated content and they've got more differentiated over time spotify is similar to apple and amazon and apple and amazon are putting out news releases that suggest they're catching up to spotify at least in the u.s. so it's a different story. >> all right barton, thank you very much.

barton crockett joining us there for analysis on spotify's quarter. the shares still down a little more than 9% coming up when the "fast money" traders take us bargain shopping, hitting 52 week lows, we'll find out what's on their shopping list after this once there was an organism so small

no one thought 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. consumer staples, the worst performing sector today. some of the big names are hitting 52-week lows some hitting multi-year lows

the traders tell us which they are checking out plus jim grant reacting to the decision of the fed and the cod ven oculha ostks when "the closing bell" continues. every fire department every police department

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welcome back how about shares of kraft hines seeing a nice pop after earnings >> we are keeping an eye on those shares of kraft hines. the food giant jumping more than 5% handily beat wall street's expectations this despite report lower sales which was weighed down by weakening demands for processing foods in the united states the stock has retreated a bit off the aftersession high. but up more than 4% at this point. >> and that takes us right into our next discussion, thank you it was a very different story for a lot of other consumer brands which are trading at one-year lows and some years multi-year lows today. names like molson coors, general mills, p&g, kol gate among those. but general mills shedding 2.5%. down 17% as a sector since the late january highs >> by the way, kraft heinz no more than this stock

it was up $96 stock a year ago it's in the $50s now seen as a victim of inflation. also dividend yields red zone n -- are not as interesting >> let's bring in the "fast money" guys to talk a little bit about all of this weakness across that sector if there's anything you think is attractive >> what does it mean what does this mean? procter & gamble at a 52-week low. pete might disagree, but look when peltz was announcing he was taking stake it was a $93 stock his announcement ticked it stock is now low $70s. do yourself a favor, folks playing the home game. go back to 2008. procter & gamble went to -- stock went from $75 to $50 here we have from $93 to $70 does procter & gamble have

something? i don't know but history tends to repeat itself >> pete, we wanted to talk about cost pressures and the secular challenge facing these companies. i don't know what do you think is going on here >> and it's interesting here i agree with guy there's a lot of read throughs when you look at these brands and how poorly they've performed. i'll give you one of the names out there as well. pepsi. this is a name i own i'm frustrated with it this is company they beat on earnings but when you really look at what this company does and you look at the pe levels presently, it still might even be a little bit high quite frankly but what i'd like to see in any of these names and we aren't seeing it. but what happened when jamie dimon stepped in and said you know what? -- >> 2016, jpmorgan $53. >> what about steve wynn >> $58 stock >> you want buying this thing hand over fist >> i'll tell you this. how about even a buy insiders within pepsi has been

years since we've seen an insider buy. why is that? >> all right. >> if they're not willing to put their money out there, why should we? >> stem the tide this is pete najarian. he's talking to every ceo out there. >> i had a pepsi at lunch today. >> you shouldn't be drinking those. i'm just say pg. >> it was a diet pepsi >> just water. >> i know. pete najarian, guy adami, thank you. we'll see you coming up at 5:00 p.m. eastern time on "fast money. jim grant of grant's ing ciners e observ i joinusomg up

welcome back shares of square down after-hours after its first earnings report. that's spotify square is down 6% after-hours after reporting its latest reports. deidra bosa has more >> down about 6% but remember these shares are up about 40% year to date just got off the phone with the company cfo sara frier i asked her to respond to a recent claim that wall street is drunk on bitcoin nonsense and square's bitcoin trading has been insignificant frier saying instead of monetizing bitcoin they're trying to further monetize their cash app saying it's one thing we're building in that app we wanted to provide that

access i also asked her what the long-term plan was with bitcoin and crypto in general. she said we will continue to do what we were doing any interest in buying and selling. but has alluded to bigger plans down the line. kelly? >> all right thank you very much. let's bring in moshe katri what stands out to you >> you know, the quarterly results were pretty consistent to what we've seen in the the past quarter or two. a slight beat, a slight raise. i would say that the company has a very sound strategy that focuses on monetization and what we call the network effect the end game is really about monetizing your existing merchant base. cross selling other services and products the company's still going through an investment mode that's kind of depressing margins. the biggest issue here is the

multiple from a long-term perspective, this could be the next tencent or alibaba in terms of where it's going to go i think it's going to take time for them to get there. >> all right thank you. appreciate your quick reaction there. a lot more coming up, of course, once we hear from the company on the call up next, noted market watcher jim grant, see what he's saying about the fed, about their likely next moves when "the closing bell" comes right back

welcome back the federal reserve deciding to leave interest rates unchanged today. joining us exclusively with his thoughts on this is jim grant, founder of grant's interest rate observer of all things fed. jim, welcome to you.

>> thank you >> how is it going so far under powell's tenure? >> well, he has inherit kind of a tough hand for example, here is the scene in 2018. just yesterday on the front page, the head of m&a at rothschild is quoted as saying as long as the music plays, you have to get up and keep dancing. >> no, he wasn't but was he aware of the precedent in that? he must be. >> the ft this morning, a correspondent to the letters page remarked on this kind of chilling said his piece in july of 2007 and here we are 2018 and they're using the same quote. without attribution. >> at the time -- >> for those who have forgotten. >> but the substantive point, which seemed to be that there is a lot of money around looking for a home from which you will finally be evicted >> so where does that leaf you on what the fed should be doing here

>> well, i think the fed will be making the wrong move. in which direction remains to be seen but the fed, it's asked to see into the future and improve the future before it comes to pass it is meant to discharge the functions that the soviet central planners never managed to do capably. that is only a slight exaggeration. >> mike, what do you this? >> i wonder what you think, how it bears on how the bond market itself is absorbing a lot of what is going on. >> the bond market itself is of two minds. credit spreads in junk and investment grade securities, credit spreads with respect to treasuries are very tight. emerging markets, you know so that would suggest a certain complacency with respect to the economic picture then there is the yield curve, which with regard to say the two-year versus the 30-year is flattening as if to say that there will be no inflation, that there will be no growth, and there will be trouble. >> what is interesting about

that, if you take it as there will be no inflation, couldn't you argue the fed doesn't need to tighten a whole lot more here is there a way that they can be on autopilot, so to speak? we talked about this with ken fisher a couple of weeks ago he said i want the fed to do the milton friedman thing where they are growing the money supply, a cowl of percentage points each year and that's it what do you think? >> the trouble with the utterly predictable stair step change in things like the fed change rate or money supply is it gives the leverage players a chance to tee off on certainty and one of the great if not household contributions to economic history was a piece by charles goodhart who examined the period before the fed's founding, the 13 years from 1900 to 19 threaten -- or i guess 14 years inclusive and found the volatility of today's fund rate stood in the way of banks making a big bet on leverage.

they couldn't count on a steady cost of financing. therefore they couldn't borrow short and lend long. >> do you think they should have come out food and said surprise, we raise bade quarter point? >> you asked me about the use of predictability. >> right. >> and i would say that is a paradoxical negative for the situation. what is wanted is constructive -- is constructive uncertainty. >> but powell seems to be moving in that direction. >> for one thing, he is an english speaker, which helps he will say what he thinks and not obfuscate. >> i'm waiting to see how quickly that comes back to bite him. he did kind of move away we're sure it's going to be one way or the other. >> i think he appreciates as a former practitioner. that low interest rates can be very harmful to the structure of things for example, according to bianco research, no less than 14% of

the companies in the s&p 1500, that's the very broadest measure of the stock market, cover their interest expense from earnings before earnings and taxes. >> 14% cover but that's the highest non -- he calls it the zombie quotient shen that is at a high. business debt as a percentage of gdp and multiples paid by private equity firms are at a post 2007 high so all these things are symptoms of the consequences of ten years of suppressed interest rates >> and we've heard investors like stan destruct ken miruckenr >> what do you think is a good way for investors to position themselves >> that's a wonderfully concise question requiring a very lengthy answer but i would say that value does

not beckon one into taking big positions in almost anything there are very few things that strike me today as really, really competitive for example, corporate debt. the interest rates nominally are very low that son the face they're very low. they're very low with respect to treasuries the quality of corporate debt covenance, the promises the issuers make to the borrowers, not to do them dirty, those promises are at very, very low levels low quality. so covenant protection is bad. the rates are bad. the spreads are bad and the central banks announce that they want to burglarize you of 2% a year inflation >> well, just tell us when you go short on the whole thing, jim. it sounds like maybe on the sidelines for now. but when it gets really ugly jim, thanks for joining us. >> that will be the time to go long. >> jim grant from grant's

interest rate observer good to talk to you. thank you so much. lots of stocks moving after hours. we're going to hit the movers and then some when we come right back on "closing bell. let's begin. yes or no? do you want the same tools and seamless experience across web and tablet? do you want $4.95 commissions for stocks, $0.50 options contracts? $1.50 futures contracts? what about a dedicated service team of trading specialists? did you say yes? good, then it's time for power e*trade. the platform, price and service that gives you the edge you need. looks like we have a couple seconds left. let's do some card twirling

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nothey're not investing iney commoditiesies. or fixed income. what people are really putting their money into is what they hope to get out of life. but helping them get there requires a real refusal to settle for average. because when you approach investing with a tireless desire to beat the status quo, something wonderful can happen. those people might just get what they wanted out of life. or maybe even more. here isyour after hours headlines. tesla slightly higher after a smaller than expected quarterly

loss and strong revenue growth square slumping on weak earnings guidance, and aig under pressure after missing its bottom line. >> i didn't get the popcorn for the tesla call and see the stock action as it evolves from here. >> that's true we'll hand it over to "fast money" for all of that that does it for "closing bell," everybody. "fast money" starts right now. "fast money" starts right now live from the nasdaq market site overlooking new york city's times square i'm melissa lee. on the desk pete najarian, karen finerman and guy adami tonight tesla volatile after reporting earnings moments ago the conference call with ceo elon musk kicks off in 30 minutes. we'll bring you all the latest details. plus, square getting slammed after its report that stock is down by about 5% we'll be monitoring what ceo jack dorsey has to say and this just days after short seller andrew left says the stock has been soaring only because of what he calls a bitcoin nons