questions -- >> not calling them boneheads. >> but she never loses her temper >> considering what she sat through saturday night is incredibly impressive. >> yes >> very gracious it was mean. >> they were awful to her. >> on that note, thank you for watching "power lunch," and "closing bell" starts right now. >> i'm wilfred frost, this is the "closing bell," equity markets with a turn around in the day today as stocks make a stunning reversal. >> we're at the white house where the stakes just got higher investigators have been wiretapping one of the president's personal attorneys i'm bob pisani on the floor of the new york stock exchange as stocks take investors on a wild ride and volatility is back in gear. i'm phil lebeau in chicago with a look at what musk said on last night's earnings call putting the brakes on tesla's stock. >> all that, plus, a big afternoon of earnings as cvs and

gopro set results. i'm kelly evans, and the "closing bell" starts right now. ♪ >> that shoulder is getting in my way, wilf, more on those stories in a moment, but we have the final hour of trade with a reversal on wall street. it was down 400 at the lows, but now we are positive by eight a big comeback here today. >> our reporters are following all the action for us, bert bertha coombs, and bob pisani on the floor with us, but in washington, eamon has details on a wiretap pressuring the white house. >> reporter: that's right. part of the new developments we've had over 24 hours. in terms of the president's personal attorney, michael cohen, we just finished the briefing here from sarah huckabee sanders, explaining the statements from the former mayor of new york, and, again, this

morning, he was on television, and he admitted that the president was aware, ultimately, of the payments that michael cohen made to stormy daniels, the porn star, on bhaehalf of te president. there was question about when exactly the president was aware of the payments that his lawyer made on his behalf sarah was asked about that and why the white house seems to have been given misleading answers on the subject this is what she said. >> when it comes to the other last instance that you mentioned as mayor guiliani stated, this was not something initially known, but later learned, and, again, we give the best information possible at the time >> reporter: now, nbc news is also reporting that michael cohen, president's attorney in question, was the subject of a wiretap by law enforcement at some point leading up to the raid on michael cohen's office and home address now, that is something that a lot of legal analysts expected might be in place after the raid

on micah cohen's office and home, but not before nbc news reported it was in place before, and also, that wiretap intercepted at least one phone call between micah cohen's phone number associated with him and a number associate with the white house. sarah huckabee sanders was asked about that and when exactly was the last time the president spoke to michael cohen >> i'm not sure when the last conversation took place. on the second part, i'm not aware of specific places where he's representing the president, and on the last one, i refer to the president's outside counsel about any concerns of wiretapping. >> reporter: saying she, herself, first became aware of the fact that the president did reimburse micah cohen for the sto daniels' payments during the interview last night that was something that indicates the white house proper was not really up to speed on this dramatic change of story that we've had now from the

president and his attorney, and now saying that the president did, in fact, make those payments to stormy dachniels, bt made them in 2017, through his attorney, did not know until sometime recently those payments had been made by himself through his attorney, so a very confusing set of circumstances here, but the white house seems to have handed on a story now in which the president made the payments through his attorney, reimbursed the attorney last year, but did not know what the reimbursements were for until recent days, guys. >> yeah. it's a fast changing story, eamon, thank you very much >> reporter: you bet >> if you said stocks staged a turn around on that, i would think downside, but, in fact, we erased a 400 point decline and turned positive. bob? >> we go through whole investment cycles in a single day that used to take a year to resolve. here's what's important. i see signs of some investors trying to pick a bottom in the most beaten up sectors what does that include one is semiconductors, awful

recently, but here, not many trading here, but teradyne now positive there's a sign investors are trying to at least pick a bottom i see the same thing in industrials. horrible since cat pillar's earnings call. it's not up much, but turned around notably and the industrial sector back in the green as well consumer staples, how many days did did we talk about new lows on consumer staples day in and day out? they, too, turned around today notably negative, at multiyear lows here, and procter & gamble at a two and a half year low this morning, and it's turned around now, this is a good sign, picking bottoms, but none matters until the bulls and the bears resolve two issues that the bears have been bringing up for weeks, and the bulls don't have an answer to it number one, how much is global growth slowing, if at all, the bulls say it's not the bears say, oh, yes, it is. in europe, seeing signs in the united states as well. resolve that one, and number two, how hot is inflation?

the bears have been very successful arguing slower global growth and pick up in inflation and the bulls so far do not have the answer back to you. >> bob, thank you. checking back in shortly nasdaq seeing a massive reversal looking to avoid the third down day in four up to bertha with more >> large cap chips are leading the way, in fact, look at the semiconductor index, you see that move into positive territory today, really lifting large cap tech among the chip names that have been strong all day, nvidia on an upgrate, and qorvo, overall, a positive mix the names that are apple components had really been hit hard over the last couple weeks over concerns about apple supply skyworks on tap this afternoon apple, itself, turning positive today, and helping to provide a bit of lift here at the nasdaq,

and, of course, within the dow, itself microsoft has been the strongest of the fang and large cap momentum names, if you will, today, and that's really what's holding things up here, making the nasdaq an outperformer health care is the one area that's sat out today's move to the upside the bioteches are under pressure there's disappointing numbers from life sciences, from hologic and health it firms as well. back to you guys >> thank you very much for that, discussing broader markets fully in a moment, but we have an earnings alert - >> the market's still open >> so, it's an earnings alert. >> earlier than expected >> it is, indeed >> kelly, that's right activision halted trading because dow jones had inadvertently broken the embargo

on numbers, saying, we issued a correction and reviewing the process and regret our error as well as breaking the embargo now, because of that broken embargo, they have released their numbers, earnings beating estimates coming in at 38 cents per share, and estimates were for .35 cents in earnings. revenues beating estimates at 1.8 billion versus estimates of 1.32 billion now, the company says that based on the strength of q1 and comp in the franchises, modestly raising full year outlook expecting revenues and operating income for 2018 to be more than the last six months of the operating results. to that end, we see q2 guidance weaker than analysts expectations, and eps, adjusted of 31 cents versus estimates of 47 cents and revenue lighter than estimates, but the full year guidance raised, still below estimates, and the company projecting adjusted eps of 2.51

versus 2.61 estimates, and revenues a hair lighter than wall street estimates, but interesting color from this shareholder, this letter to shareholders at the top of the report here, quarterly report saying that record first quarter digital mobile revenues and net bookings, "call of duty: world league" esports league completed stage one in april doubling year over year with strong viewership, so interesting notes there. we see the stock is still halted, but questions about the guidance and revenues and earnings shifting to the second half of the year, but a beat back to you. >> wow julia, thank you very much we'll see, of course, if it reopens before the bell, whether investors take it more positively, butembargo, shares n down 5%.

>> broader markets, on set, nick, and jeff, and so, good afternoon to you, gentlemen. nick, starting with you. an interesting market day, down 400 points almost on the dow at one point, back to flat. what's the main driver behind the selloff and recovery >> well, markets are worried about a bunch of factors, some of which are political, others are things like rates and energy prices, but the underlying tone of the market is one towards volatility fun fact, the vix only peaked in february once in the last 20-plus years, peaked this year in february, but seasonality predicts volatility in august. we have not seen peak volatility for the year by any means. >> jeff, what do you think of the headlines out of washington? is the market reacting to them at all, it took them in stride, even though, usually, anything that comes out that suggests turmoil for the president can spark a selloff. >> well, dick russell, my friend that passed a couple years ago, dow theory letters said when the

president's in trouble, the equity markets are in trouble. >> huh >> i talked to friends, friends in d.c., good contacts on the hill, and the thing affecting the markets today was mnuchin and larry kudlow got a stiff arm from china so there was worry about that >> this afternoon, we have not gotten a lot of headlines from the summit, which we know took place, and the fact that they did not get that is a positive for the market >> early today, they were getting the stiff arm from china. now, maybe things progressed and that turned the market around. i was on the show many times in january warning our models for the first time in 18 months were saying february represented the first window of downside vulnerability in a long time, and we raised cash and put most of the cash back to work the week of february 6th, the selling climax, the failed throwback rally, and the subsequent under kudlow of february 9th, still treating that as the low at 2533 until proven long. >> we mentioned factors there,

nick, trade concerns, talks going on, perhaps improvements from where we were and washington that's overlooked by u.s. investors or priced in >> it's tough. fundamentally, the stock market should not care that much until it affects consumer confidence, rates, or global growth, it should not affect it the twitches today are markets gauging how much risk there is until things happen, the stock market does not respond and should not respond in fundamental long term fashion. >> have we seen a pullback in growth particularly, europe, the cpi softer than expected is there an explanation or different from washington in. >> that's an important feed. recall 70% of revenues are in the u.s., and only tech has 50% outside revenues away from the u.s. u.s., and so it's a fundamental story for u.s. stocks. >> before we go, jeff, we did yesterday, dow closing down 10% from the late jan highs. you are comfortable where you bought into the market in early

feb with a soft patch here >> still in the bull market, running 14 years, we have years left to go those talking peak earnings are not looking and drilling down far enough that the economy, i said it to you before, is stronger than a garlic milk shake. everywhere i travel. >> have you had one of those i mean, that does not sound appetizing >> i made it up. >> well, if -- yeah, don't make one. make it up, but don't make one doesn't sound good thank you very much for joining us >> you bet let's drill down on today's biggest decliners, tesla, down near 6%, and the weird earnings call phil lebeau has more in chicago. >> if you thought tesla shares would rebound today because musk is being musk, but that's not the case it all has to do what happened halfway through the call last night when this exchange between tony from bernstein and mucsk

saying, oh, it's that kind of an earnings call. >> and so where specifically will you will in terms of -- >> excuse me >> in capital requirements >> next, boring bone head questions are not cool >> he considered it boring, but that sent stocks lower and when a follow-up question was asked by another analyst, this was the response from elon musk. >> we're going to go to youtube. sorry. these questions are so dry they are killing me. >> shares of tesla have been under pressure most of today because these questions all centered on the model 3. they expect to build 5,000 per week in about two months, but what's going to happen with the gross margins? will they hit 25% on target or is it going to be delayed a little bit we had a chance to talk with tony earlier today, about his thoughts on being cut off by

musk listen to what he says about ceos and when they are not completely clear with their answers. >> when ceos are evasive around number questions, that's worrisome because that suggests that they are either not focused on financial metrics, which, obviously, they want management teams to be, or they are worried that, perhaps, the numbers do not tell a good story, and that's why the ceo's being evasive. >> as you look at shares of tesla, two notes moody's saying it still expects tesla to need about $2 billion in additional capital and will likely raise that later this year, also, we have reached out to tesla today to see if we could find out what musk being evasive? have anything to say about his actions in the conference call we have not heard back from the company. guys, back to you. >> all right phil, thank you. phil lebeau, mad money weighed in on squawk on the street this morning on the issue listen

>> i think if people are concerned about volatility, they should definitely not buy our stock. i'm not here to convince you to buy our stock. do not buy if volatility is scary. amen it's that what we want i mean, if i were musk, i would have done the exact same thing >> interesting to see tesla was down more than 7% this morning, and it's come back a touch >> i did not expect that from jim because, you know, he's critical of snap's earnings calls, not taking enough pride in their earnings releases, so i was surprised. >> musk is different and people invest because of that, and he can command this - >> well, sure. he can't anymore >> my way or the highway >> judging by the analysts i think that, you know, clearly, he was being discerning towards what are legitimate questions, and -- >> you can see the reaction on the street, a little bit off the lows this morning, but shares down 6%. clearly, investors do not agree on that per se >> absolutely right. >> amnalysts were not kind in te reaction to the call as well, saying welcome to the circus,

calling the behavior unorthodox, and it did not go well, and bizarre theater. >> gordon, what do you have to say about the call is this just a brilliant entrepreneur with every right to be critical of questions that, perhaps, are not quite the right questions in his view? >> yeah, i mean, i think he has the right to do whatever he wants, but what's most important are the numbers. look, look what happened in the quarter, exiting q4, working capital was negative 1.1 billion. exiting this quarter, negative 2.3 billion. attributing to delays of deliveries, look at payables, those are up significantly, so essentially the way to think about that is their liabilities are 2.3 billion in excess of their assets, so any capital that comes into the company needs to correct that. i think that's a big deal. i think people are looking at the cash burn, looking at working capital, and that's a bigger concern than what a ceo says on the call >> your price target going forward is in the 80s? >> 109 right now

>> 109 right now >> yeah. >> trading at 285. >> right >> if he was more forthcoming on the call, even with bad news, is that reassuring somehow, do you think, or people just taking this hand waving saying, look, then we assume there's more bad news there >> when people say "forthcoming," i laugh he was going to sell model 3s for $35,000. my client with a reservation over a year ago is delayed selling now for $55,000, and yet they had a great margin in the auto business, 19.7%, yet they burned 700 million, losing $700 million on the net income line when you say "forthright," they cannot make cars profitably right now. i don't know how to be forth right. that's the issue and real problem. >> if they had a change of ceo, do you change the target >> to 0. i think that - >> oh, gosh. >> the problem is, the benefit they have right now is a lot of the people who follow tesla believe that whole heartedly in

musk listen, every single model 3 target they put out, they missed they'll miss this one. keep in mind, another big piece of news wednesday, the national highway safety board came out and said they never said that tesla's auto pilot feature actually reduces crashes by 40%. tesla has been out there saying that as recently as march 30th, it's a big part of the valuation. there's a lot of things that people are looking at with respect to the company incorrect that come to the forefront iminnocently >> thank you tesla shares down 5.33%. we are well off the lows, nearly down 400 points at 11:00, but now the dow is just above the flat line, a little bit of losses in the s&p and nasdaq we're just getting starts on the "closing bell. >> a lot more ahead on the big day for the markets. we'll see what the wild and crazy charts are telling one top technician next.

plus, what our data partners at kensho say about today's companies reporting at the bell. on the docket, activision, g gopro, and more. this is "closing bell" and we're back in a flash. le and while we make more e-commerce deliveries to homes than anyone else in the country, we never forget... that your business is our business the united states postal service. priority: you

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it's a new kind of network designed to save you money. click, call, or visit an xfinity store today. dow just below the flat line and s&p and nasdaq below it. a technical perspective now, and, rob, we start by looking at something going back as far as 2009 >> right >> if we look at long term chart of the s&p, it's really important as the market goes through volatility, they bite their nails, and where are we in the big cycle? what's interesting is we look at the long term trend channel, back to 2009, and we still think we're in a long term bull market so there's volatility. there's about a 10% gap down to the low end of the trading range. what i think is really important, if we look at the 200-week moving average, it's actually a four-year moving average, supporting the long-term trend of the market.

zooming in a limttle bit closer over the last year and a half, back to the 2016 lows, so that's the cycle low off the 200-week, and now we are sitting here around that 2600, 2550 level, and people are very concerned about it, broke the 200-day this morning, sold off, the market's come bag, but it's still really just holding in this support zone i think it's still in tact >> so the point here that even in the short term where it's a little bit closer to the support levels, long-term, we are comfortable? >> exactly the point in fact, look at the very short term data, and we look at all the nuances and volatility and 12% decline, look at the levels here, 25, 35, 25, we're still holding. think about how quickly the narrative turns as soon as the market actually improves you get to a 2740 level, and people are talking about a broad intermedia intermediate term recovery too early to panic there's a lot of concern, rotation, and sickcyclicals

unwinding. too early to be bearish from a long term standpoint >> great stuff, as we stand, kelly, 2631 on the s&p >> thank you, guys, both joining us now to talk about the state of the etf market is global head of etfs, dan draper. welcome to you >> thank you >> listen, we had a lot of volatility lately with more trading as we heard from people than we saw last year. do you think this environment's sustainable, though? >> i think as rob said on the technical side, we see a little bit change in sentiments since early february rise in volatility, of course, you know, exceeding and flirting down below the 3% 10-year yield, but we started to see changes from me mo momentum etfs into volatile etfs there's been outflows in domestics of u.s. equities and outflows of international markets. it's a mixed bag, but people are diversifying more. >> if you said that months ago

with the fang names and tech giants down for the year, they are into the safer stuff, but we went through earnings season and felt like the big cap tech companies were back in charge. >> exactly >> flows reflecting that now >> well, of course, the big apple news, turning in more capital shareholders, positive, seeing, for example, those who want to move from a growth to value. that's been a call that a lot of people wanted to make. we see firming in energy, for example, but, stim, there's oil services, you know, lagging, and financials is a wait-and-see with the dodd-frank regulation we see holdi ining wealth, and growth continues, trend continues to be strong, and inflows into the sectors >> good to check in, dan draper, loved you in "madmen," sure you get that all the time. >> i do. i do >> never gets old, i'm sure. thank you for being here >> great to be here. earnings after the bell and mike on the floor posting up today's big movers to the downside

micha michael.

welcome back low of the day on the dow down 393 points hitting at 11:00 a.m. it's plus 30 points at the moment, near the highs of the day at 37, and albeit, a slight gain mike santoli has an individual mover today. >> cardinal health up 20% on the day, reporting results this morning. this is a drug and medical supply distributor the wholesalers under scrutiny

because of the role and, perhaps, hiding the real cost of pharmaceuticals. they had a problem with declining generic drug costs, they take a cut of that, that's an issue, and inventory issues on a division they have overseas, and all of this came together, bringing the entire group down, and cardinal at a four and a half year low today, and also, they are down 5%, so it seems as if a lot of attention on this industry, and a lot of struggles >> how much was it that overseas business, they bought that from jj - >> exactly >> that does not have the implications for the core pharma business >> it does not, but they discovered unsold inventory, and the tax rate went up because they did not get certain adjustments overseas so that's a 45% tax rate it told investors there were things in the acquisition and books they were not aware of before so that spooked people. >> great stuff, thank you so much cardinal down sharply, back to you. >> down 20%, wow

shares of activision resumed trading after being halted this afternoon when it was down 5% and turns out dow jones inadd -- inadvertently broke the embargo. time for a cnbc news update now, sue? >> hello, everyone this is what's happening at this time the academy of motion picture arts and sciences board of governors has voted to expel bill cosby from the membership for sexual misconduct. the organization that puts on the oscars expelled harvey weinstein in october washington post reports sexual misconduct from charlie rose were more numerous than previously known and found three occasions over the period of 30 years in which cbs managers were

warned of rose's conduct towards women at the network an additional 27 women say rose sexually harassed them authorities say an argument over a break room light led to a deadly stabbing involving three workers at philadelphia international airport saying the three men worked for a company that cleans planes for frontier airlines the stabbing victim was pronounced dead at the hospital. and amazon is venturing into the pet market with its own brand of products called wag so far, it's only available to amazon prime subscribers first product is a line of dry dog food with several varieties, and they plan to expand the brand for additional pet products disrupting once again. that is the news update. >> i wonder what that means to mario's pet fund >> never know. >> just launched >> yep, exactly, all the mom and pop stores out there >> chewy.com is the leader in the online space >> absolutely.

>> there was a great column in the journal about it the other day, anyway, eah, low prices, delivered to your door, and if i were chewy, we would not be pleased. >> i just ordered from chewy >> there you go. >> i'm doing my part to equalize the pet food market. >> you're going to check out amazon now, right? >> i will. i like the name, wag >> due diligence >> we do thank you very much. see you next hour. 30 minutes to go, less than that into the close now, and dow up 71 at the highs, up 40, that's a far cry from the down 400 we saw this morning. coming up, breaking down today's wild market action >> shares of cat down 10% since the earnings report last week, and now bank of america is waving a red flag out atabth stock. we'll tell you what's behind the call ahead to buy or sell? with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today.

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welcome back to the "closing bell," i'm wilfred frost with kelly evans, 24 minutes left of trade. we are up five points on the dow, the low, of course, of the day, close to 400 points, and high was up 30 points. just off the highs, but the fact we are flat on the dow is encouraging from where we were at 11:00 >> nasdaq positive a moment ago

and looking at key moves here. >> well, it's about time someone was interest in buying the stock market because earnings season has been a bust that it's making all the bulls absolutely nuts, so we saw buying interest today, i have not seen that in a while, in the most beaten up sector this is what's turned around you know the story, right, every day new lows in consumer staples. well, right here, we see buying, volume picked up, and weakened a bit, but there's been jose overall. this is a group in semiconductors weak recently smh here, key one to see right now, and right here, again, volume pickup, again, not just no sellers, but volume picked up we moved into positive territory, and finally, industrials, it's been a bust since caterpillar's disastrous earnings call that we saw, same situation, right here, there's a volume pickup, and you can't see the charts here, but that's what happened and we moved up this is encouraging, but i'm not convinced anything is turning

around because we had this potent stew of issues. the bull -- bears have been very successful with it look what happened in the earnings season. could it get better than this? the bulls argue, earnings are not only better, but guidance is better than expected, and capital expenditures have been better than expected and buybacks are better than expected, dividends are better than expected. what else do you want, angels from on high saving the world? this is as good as it gets, and that's part of the argument, so this would be a great situation, except bears have a whole potent stew of things they throw into the mix. look, we have the fed tightening we know that the stew heats up with the china trade and mueller probe. not just sell in may, but presidential cycle is very, very weak, and all of this would be surmountable if not for two other issues the bears have been throwing in, and that is, global growth is slowing, they claim, we don't know, and number two, they claim inflation is hotter

than expected. what's the truth is global growth really slowing? if so, we're in trouble in the stock market i like goldman sachs today, big article from them saying stop worrying about this. they maintain their strong outlook for global growth, and they are concerned over the fed tightening said it's overdone, and, finally, technical head winds we talked about, midterm presidential cycle, that's likely to ease, and, guys, if you can solve this problem, how much is global growth slowing, i can tell you what's going to happen in the stock market i can see the future, but the bears have got a strong argument here, and, look, they just cannot -- it's a winner for them >> okay. >> bob, thank you. >> bob, thank you very much for that angels down from on high would be fantastic also, a goal from arsenal would be great in a crucial match. >> who are they playing now? >> currently 0-0, but back to the markets. we have kenny and our own rick

santelli how important is it to close above key levels today given the selloff? >> well, on the s&p it's very important it close above 26, 1315 so if we close above that, that will be a bode of confidence my sense is it feels like it wanted it weaker, but the dip today, we saw, rallied up here, just below the line, just kind of just negative on the day in the s&p, but there's a lot of earnings coming out, so i think the market's going to hold tight. one way or the other, don't be surprised. there's weakness ahead, and market tests lower, and i think tomorrow is another day where we test it again, and we're going to test lower. >> rick, this morning, just hours ago, i might have been asking you more about the weak european inflation and talking about the rally in treasuries and stock market, but it turned around what do they say there about what's going on? >> well, absolute sly correct, u a picture is worth a thousand

words. i have a intraday chart comparing 10-year note yields on top an overlay with dow jones industrial average scaling, sure, moved from 197 to 198 down to 194, but we did not pay much attention to stocks in the fixed income markets, and i think that's a really key issue no matter the volatility you get whether it's february or now, we had a long wedge, looking at the nasdaq, dow, s&p, and the nasdaq may be the best pattern, upward sloping, i'm sorry, even though there's a lot of sectors involved in the three indexes, likely, they come out of this together so whichever direct you want to pay attention to in that formation, and it does not seem to affect treasuries which, you know, at 294, there's 53 basis points higher on the year, and we have not settled yet. we have still -- ever since a week ago establishing the 303 high, which, of course, went right back to new year's eve 2013, we have been in between,

the old high of 2.95 and 3.03. tomorrow's employment data could break out one way or the other which would be significant, and dollar had a minor setback today, but now it's not the best levels since december, but back to the 9th of january because that level's, and, finally, second chart, two week low yield, and look at tens minus bunds, fresh highs at 241 pbasi points separate them, close to a three decade wide, and i think that's significant because either we're going to pressure their rates a bit higher or they pressure our rates lower either case, it underscores how all central banks on a level are connected. >> art, way are you watching in terms of external factors, this trade mission to china, is that a concern or progress from weeks back >> well, it feels like it's progress at least we are sitting down at the table and not just firing

off tariffs making bold statements what's more important at the same time in the parallel path there's renegotiation of nafta get something accomplished in nafta before in china, but that message will be this is an administration willing to negotiate. get nafta, good news there, that helps in the psychology around china. china is a long story. we don't learn much this week. hopefully a positive spin comes back over the next week, but i think kenny's right, too, there's more earnings and fridays are stuff. >> we have to go, but what are you watching into the close? >> 2615 on the s&p is what you have to keep your eyes on. >> 12 points above it now. thank you, art, kenny, rick joining us we got 17 minutes to go before the close as we said, we are slightly lower again on the dow, is all three indexes in the red, but still higher than they were at 1 11:00, the low of the day. we have two stocks to watch into the close. >> and after the bell, we have earnings results from shake

shack, gopro, and weight watchers and more. we have activision's already more when we return on "the closing bell."

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welcome back, 15 minutes left to go the dow just stays in the negative territory a couple stocks to watch to kick it off, though >> spotify shares down, pretty significantly today, 6% or so on track for the worst day for the music giant since listing a month or so ago. when they listed originally, it was 165.90 not that much lower than that and only a month of trade. it was a fractional miss, and it's a case of only being a month, and we know it was not a full ipo, and so investors do not know the company that well yet, and i guess, without it being a big beat, that's why we trade down off the back of it, and users, 170 million, up 30% year on year, and paid subscribers, 75 million, up 45%, so, yes, making up a lot of stuff, but the numbers are not bad as the 5% decline as expected >> yesterday, down 10%, and now

down less than 6%. >> recovering from that. up next, how do you say it >> i say adidas. >> adidas falling 6% despite better than expected results this morning telling cnbc the company will not drop kanye west despite controversial comments about slavery this week. west has the sneaker brand and told tmz said slavery was a choice putting that aside for a minute, this story is interesting. they stole massive share on nike and others, huge in the fashion footwear space, and i just wonder whether that growth can keep going it came in at a great time to initially oversee the captiexpa and could be more difficult now. >> kanye grabbing headlines, but they reported number again, and despite growth for the adidas brand, but it was reebok on a surge, disappointing shares

though, down 3%, and i think that's the reason for the move the west story is crucial to the headline brand, but before today, year to date, they were up 22%, and share price of nike up 9%. the 6% pullback, well ahead of the likes of nike and more today. >> see if there's a change there. breaking news on volkswagen. phil >> wilfred, this is out of detroit where u.s. prosecutors have filed charges against former volkswagen chairman and ceo martin winterkorn and five other executives charged with conspireing to mislead regulators having to do with the allegation that they violated the clean air act as part volkswagen rigging the emissions of diesel vehicles between 2009 and 2015 remember, it was just last year, a former volkswagen executive on trial for these charges, similar charges, was convicted, and is now serving seven years in

prison this was a grand jury indictment that was served up in march, unsealed today, and, again, martin winterkorn, former ceo of volkswagen has been charged by u.s. prosecutors as well as five other volkswagen executives with conspireing to mislead regulators, by the way, guys, martin winterkorn stepped down, was fired as ceo of volkswagen a year after, two years ago, and he is in germany, he's not in custody. i'll be interested to see if he ever comes here to the united states extraditing him would be very, very difficult guys, back to you. >> absolutely, phil, and i remember watching the story closely as it unfolded years back, it was the subsidiary ceo who took all the flak on the hearings he's back in germany out of five executives, do we expect them all to be charged in this light, or is this a big

surprise >> oliver smith was convicted and now in jail in miami he imp kated a number of other people during the court proceedings, and according to the prosecutors, heindicated that he had given direct briefings to martin and others, so prosecutors made this clear there would be more charges coming with regard to these diesel emissions and, you know, misleading regulators, so it's not a surprise that you have five other former executives we don't know if any of those executives are here in the united states or if they are like winterkorn over in europe >> phil, great stuff, thank you very much for that, phil lebeau in chicago we got nine minutes left >> dow down five points now, hit positives briefly, even for the nasdaq, but now everybody negative parade of earnings, look how much those scks ultocod move when they report that's coming up next. so that if your customer needs shoes, & he's got wide feet. & with edge-to-edge intelligence you've got

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shake shack moves 6.9% after reports, and gopro moves 9% on earnings results those, of course, all due after the bell, which is just five minute away, and we are down about 17 points on the dow as we approach the closeand en w, whe come back from the short break, we'll be back with the closing countdown. this farmer's morning starts in outer space. where satellites feed infrared images of his land into a system built with ai. he uses watson to analyze his data with millions of weather forecasts from the cloud, and iot sensors down here, for precise monitoring of irrigation. it's a smart way to help increase yields, all before the rest of us get out of bed.

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welcome back, two and a half minutes to go, well off the session lows, but we are selling into the close we got session lows at 11:00 for the dow, and that was down 393 points you'll see we had a steady rally throughout most of the afternoon, but in the last hour, hour and a half, we have been steadily plateauing and just selling off slightly approaching the close. we are down 37, 38 points on the dow right now. looking at the three individual indexes, you see that the likes of the s&p and the nasdaq are down just a fraction more, and the dow is now down .2%. a quick look at the sectors. there's no clear story to what happened today, and, yes, the likes of financials and health care are down, but the best part of 1%, but there's not been really any clear reason for that, no theme behind it, materials and technology higher, but nothing driving the selling

week to date, clear moves like telco, down 5%, and tech, but less clear what sector moves are. a fraction of reprieve explaining why we started to rally throughout the afternoon from those lows is the u.s. dollar, and there it is over a week you can see that today, it is fractionally lower, and it's not kponted rising as has been the theme of the last couple weeks, and maybe the dollar plateauing this afternoon allowed stocks to recover from the lows, but selling a little bit, bob. >> right the dollar is killing emerging market stocks, been a real problem. better than down 400, but not convinced we're at a new bottom, a disaster if they tried to rally in the middle of the day, saw beat up tech stocks, semiconductors, and industrials rallied, but the bulls have got to figure out an answer to the question, how much is global growth slowing, and if they don't have a response to the

bears, this comets it's a potent argument peak earnings and slowing global growth that's a hard one to argue >> arguing better than at 11:00, but not resounding dow just recovering to the flat line at the close. s&p and nasdaq slightly negative, and ringing the bell now, and that's it for the first hour of the "closing bell," so, kelly, back to you ♪ >> thank you, and welcome to the closing bell, everybody, i'm kelly evans, finishing up the session on wall street, dou was down 400 points today, only to close positive by five, eking out a gain on the bell watching that to ensure it does not change s&p 500 can't say the same, shedding six points, above the 2615 level kenny watched earlier, and 10% correction

territory for the s&p, and we'll be down to 2585. still above the levels, and quarter percent drop for the markets, and same for the nasdaq, 7088, and russ 2,000 gave back the rally recently, closing down 8 points to 1546. a bunch of earnings movers already today, and there's more big names reporting after the bell, and julia has cvs results, and eric with shake shack and weight watchers, and we have gopro. seeing you all in a couple minutes. we have results from activision blizzard, that in a minute, and joining me is michael and stephanie link, and mark harris, global head of research at rbc capital markets. mark, what's going on at your office today what's with the balloons >> look behind me here we have the treat for the kids

going on across 20 offices, all offices and traders are devoting revenuing to charity it's a global effort >> that's grate. >> magic is happening right here >> is that why you're in a sweater or always your look. >> it's a a t-shirt. >> oh, i see i see. all right. we're coming back to you in a moment leading the dow is boeing, and cardinal health was big after the earnings, and it closed down 21.5%. goodness >> a give up trade >> tenant was okay the other day. >> this is different, whom sale business, people are looking at the business model in the first place, and there was a series of issues with foreign sub sid si s subsidiaries, a lot going on >> a dog's breakfast caterpillar a big one and more later, but the overall -- they said it was a high water mark, have we moved past that for the

stock or not the downgrade today, not looking good, but okay now on the bell >> total con pitchlation, right? i said this before to you guys that it was overreaction in terms of commentary about the high water mark, and at the enof the day, earnings are still going up $2 this year for that company, and even if margins are probably not -- i don't want to say they are peaking, but just second quarter not as good as the first quarter, but this -- earnings are really good they really are. 70% are beating, but that's the bottom line, but more importantly, the top line revenue, 73% of the companies are beating on the top line. that is not a tax adjusting thing, right bottom line, help from tax, so, to me, the quality of earnings are actually quite good, and guidance has been quite good, and so this whole peaking of earnings notion, and that's why the market is going down, is so totally wrong in my opinion, but it's more the macro data has to at least stabilize

we can see major deceleration. >> yesterday, we talked dow down 10% from jan 26 highs, and today the s&p almost joined it in that territory. >> one of the issues coming into the year, the corporate sector we knew was humming, right what's different from what you might have expected versus months ago, and maybe it's the momentum and global nature of the expansion. those things are suspect and level of rates and the fact you adjusted to very stretched valuation and sentiment from january. that's all been ongoing. interesting is the longer this period proceeds over trading near the lows and kind of testing the floor of the trading range rationale changes and people doubt, wait a second, why are we still in this >> yeah. >> why still this sloppy trading and why this 400 point decline in the dow today, really on nothing. >> right, right. >> other than the fact we were near enough to technical levels. >> that was the curious thing. felt like we were down 400 for

no reason and felt like we came back for no reason either. what do you think is going on here >> well, look, i think there is a little bit of commentary going on in the companies in terms of forward guidance on margin and commodity pr commodity pressures. it's out there people are looking for a reason to sell. we were in a period before this, the vix at, volatility, at levels unsustainable now this is normalized, and good thing is for those stock pickers, now is the moment to be a stock picker to pick some of the names and to apply to the commentary, there's good results overall, but a shift towards value names, opportunities, which i think is a pretty good thing, not a bad thing >> market all adds up together, it's hard to pick. >> you like dow dupont, circling back to other picks later, white house news, president feeling pressure after his attorney, my coal -- michael cohen revealed more about the payments the president made to him and wiretapping that

might have been involved as well eamon javers with the latest >> reporter: that's right, sarah huckabee sanders wrapped up the briefing in the last couple hours this afternoon, and really, the central focus was the credibility of the president of the united states and credibility of sarah huckabee sanders herself, asked a number of times about the admission from rudy guiliani last night that the president did, in fact, repay his lawyer, michael cohen, $130,000 plus for payments made to stormy daniels. line from the white house is the president made those payments to michael cohen to daniels but did not realize what they were about until the last couple weeks after denying it on air force 1 talking to reporters saying he did not know what the payments were about orhave information on them. sarah huckabee sanders was asked how that makes sense in terms of the president of the united

states here's what she said as mayor guiliani stated and referring back to the comments, this was information the president did not know at the time but eventually learned. >> reporter: she was also asked about her denials on all of this and asked whether she was lying or whether she was just in the dark when she made the comments. here's how she responded to that >> the president has denied and continues to deny the underlying claim and, again, i've given the best information i had at the time and refer you back to the comments that you, yourself, just mentioned, and a few minutes ago about the timeline for mayor guiliani >> reporter: kelly, all that on a day in which nbc news reports there was a wiretap from federal authorities in place on micah cohen's telephone before the raid on his office and home address, so that is a brand new revelation that she did not want to respond to, sarah huckabee sanders, in the press briefing

saying she had no information on that that ups the legal ante for the president because one of the things nbc news is reporting is that one of the conversations that was intercepted there was between one of michael cohen's phone numbers and a number associated with a phone here at the white house. the question now is, did that wiretap capture a conversation between michael cohen and the president of the united states, and was that the right move for law enforcement or was that a breach of attorney-client privilege? waiting to see how all of that sorts out in the coming hours and days, kelly. >> thank you very much, market also taking it in stride, continuing the rally this afternoon as that word came out. speaking of, we have earnings coming out. let's get to cvs results now, julia? >> kelly, beating on the top and bottom line, adjusted earnings of $1.34 per share, and estimates for $1.19 per share. revenues also beating, revenues coming in at 3.76 billion, estimates for 3.64 billion some key comments here in the

earnings release, saying, we are more confident in the very strong full year growth outlook laid out three months ago, and also announcing that cvs all access and showtime direct consumer services are continuing to grow rapidly and now contributing meaningful dollars to the bottom line aattracting younger viewers, so key commentary there about growth in the direction of the business, and they say the average rate per subscriber increased strongly as well with cbs's inclusion in skinny bundles. guys, back to you. >> julia, thank you. shares up 2% i thought that interesting, guys, that he's emphasizing in his own future going to be a question mark, depending on what happens with the viacom merger, but average rate for subscribers increasing strongly that skinny bundles help cbs and people take him at his word here >> they made that case for a long time, of all the media companies, they are best positioned to be a bet

beneficiary of the new world because they don't have big exposure to basic cable networks that have a lot of attrition they are getting paid for their broadcasts assets, and showsometishowtime is a premium they are agnostic to how customers want to buy. >> mike's exactly right. they are positioned right. downside of viacom or upside, but they could be sucked in more to the cable side with that. gives and takes on both sides. either way, cbs is a win, and at this valuation, hard to argue differently. >> good point about viacom whether they get pulled in the direction they are trying not to go that's another story shares briefly up 4%, now 3% gopro earnings are out as well >> kelly, shares are soaring high on gopro right now, up just about under 6% they were up almost 10% -- past 10% earlier after a beat on the

top and bottom lines revenues are 202 million versus expectations of 184 million, and earnings per share is a loss of .34 cents versus analysts modelling out a loss of .37 cents there. wild revenue beat, revenues are down 7% year over year and unit growth was 3% higher reason for that, the company's been trying to go head to head over retailers like htc, garmin and as a result discounting some of the products in order to gain more market share and push products through the door. the company also reporting that operating expenses down 24% year over year, and the ceo of the company saying the release in the first quarter driven by strong sell through of hero 5 black and hero 6 black he's -- the launch of the entry level hero, initial demand is

promising and expected to improve as large retail partners like target and walmart sell it in the second quarter. they have strong conference for a successful 2018. back to you guys >> all right, thank you. shares up 8% right now by the way, this is still a company less than a billion dollars in market cap now. >> less than $700 million actually >> wow >> in the mid-single digit stock club with fitbit >> tough place to be >> first quarter for these companies, gadget companies, are not big. >> yeah, no, anything under $10, i don't look -- i don't look at, but, you know, stock's down, so when they spike up, it is all about the conference call and all about how they sell the second half of the year, and led by products. new product introductions, and if people buy in, that's great, but this is a total show-me story and a lot of competition there are stoo many other storis to own out there >> back to yesterday, tesla

results, a lot depends on what happens on the call. boy -- >> that's the theme this year. >> get your popcorn. >> never been more correct get the popcorn. >> absolutely the theme for this quarter, conference calls and what they say. heaven forbid you miss it, you miss the whole story >> shake shack, eric has the results. >> that's right. a beat on the top and bottom lines. stock is up 3.5% it was up 5% earlier 15 cents adjusted earnings, better than 8 cents expected, and revenues 99.1 billion, better than the 96.5 million expected same store sales watch, technical term, same shack sales, up in the quarter, and it was expected to be down, and raised guidance. rather than flat for the rest of the year, they are up between 0% and 1% all in all, a good earnings from shake shack here at first

glance back to you, kelly >> shares up 5%, eric, thank you. so their shack with a k, but shaq with a q. there could be synergies there >> i think shaq with a q might be a higher market value >> what is shake shack these days >> billion and and a half. >> oh, wow relatively small we had the bigger news from jim about his own bearishness on fast food space lately >> yes traffic issues >> yeah. still, managing a gain of 8% on this earnings report we've got a news alert on twitter. which is moving lower, and not because of earnings for this one, julia, what's going on in >> it's not earnings twitter disclosing a password storage glitch they just posted a company blog saying this is about keeping your account secure, that they have fixed this password glitch, but they explain that when you

set your twitter account, they use technology that masks pass words so no one in the company can see it they identified a bug storing pass words unmasked in an internal log they fixed the bug, no indication of misuse or breaches, but they ask everyone to consider changing their pass words, not just on twitter, but on all services where you use this password. blog is up, and you see twitter moving down 1.5% on this revelation back to you. >> all right, julia, thank you you guys going to -- >> i didn't see you taking notes. >> oh, yeah. yeah, no, but thinking about that, there's so many users, change your twitter password and every other service -- mine might be there from a couple years -- i don't know. >> it's a pain you know, it's a nuance, but it's not -- really shouldn't -- the stock should not be down on the news >> people are touchy about anything related to data >> yeah, handling of data. >> exactly >> also influential people with

twitter accounts that need to be careful what's out there >> maybe the next few days, mark, watching any fishy tweets from public officials. what would you say is the best place to be in tech right now? >> best place to be in tech? well, i mean, look, there's -- i think there's a lot of interesting names, you know, we've been on a lot, fan of facebook, names like that, and pretty well right on the recovery of some of those names, but a new one, world k is one we're a fan of now, certainly a tech play. we are taking a look at some of the big global merchant, merged last year, in the early innings of the integration global e-kmecommerce are in the center, global dominant shares reasonable valuation opportunities to squeeze out costs, and on top of that, center of a growth opportunity play other things, but this is one where you are -- we call it in the old days chicken tech a little bit, but it's chicken tech in the middle of a big

growth phase >> what's chicken tech >> ha-ha, you know, technology -- companies with a technology bin, certainly, are playing into a technology theme, and you have a consistent -- >> you're a chicken, too afraid to buy the aggressive stock. >> oh, okay. >> you can buy, like, a visa or mastercard, technically tech, but it's not like gross data >> you got it. you got it exactly. >> chicken tech, that's a new one. >> chicken tech, one of my favorites. >> you had visions of bird robots going on. >> i thought it was a acronym like fang or something, i totally missed mark, quickly, pnc, what's the case there an interest rates? macro thing? just you like the company how it's executing >> the whole combination of. right down the center. middle of interest rates heading up this is a classic commercial bank two-thirds commercial side, third on consumer side, and they are right in the center of everything in the right parts of

the country where gdp is growing. they benefit from that valuation tempered relative to the financials, just hanging back, inflection point opportunity, and just management executing beautifully. >> all right is this chicken bank, no >> not chicken back. >> no, no, not chicken bank, but i will use that, i like that >> oh, don't you know, chicken tech's better. guys, thank you both for joining us >> thanks a lot. there's more ahead on the "closing bell. next up, a voice investors love hearing from. see what jeremy siegel says about the state of stocks. plus, who is in control of the market the bulls? the bears? and two competing calls and key stocks in the industrial sector we'll debate who is right. are we going higher or lower this is the "closing bell"

w rk kelly evans live from the neyo stock exchange. we're back in two minutes. what is the power of pacific? it's life insurance and retirement solutions to 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. and when you're able to harness all of that, that's the power of pacific.

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julia? >> kelly, pandora beating top and bottom lines, reporting revenues of 319 million, estimates of 304 million, growth driven by strong advertising revenue. a smaller loss than expected adjusted earnings of a loss of 27 cents versus 38 cent loss expected listener hours beat expectations, 4.69 billion versus 4.8 billion, but premium subscribers lighter than expected, but not holding back the stock up 8%. back to you. >> thank you very much watching pandora as well as others reporting dow with a turn around in the sessiontoday, down nearly 400 points, but closed higher by 5, and jeremy siegel joining us now, professor, good to see you, welcome. >> happy to be here. >> so this has been an interesting time for the market. we basically, if you missed out, you know, jan 1, you can still get in where we were back then,

but there's a different feel to it is this the moment where main street does well, so to speak, and wall street struggles for a while, what do you think >> i think that it's a good time to step back and see what's happening this year. mainly, the great market performance from last year was due, especially in the second half of the year, was due to anticipation of the corporate tax cut, which is the major economic program that trump administration got through, and now analysts were slow on rai raising their estimates of earnings in conjunction with that, mainly because they did not know exactly how it affected all the companies, but the market, and you know that big rise in november, december, and even in january, was this is going to be great. and it turned out to be great. but the market had discounted. >> uh-huh. >> we have a lot of beating of analysts' estimates, but the market had anticipated it. on the other hand, look at the

fed, look at tightening. last december, the median expectation was for three fed hikes. i think it's pretty well baked in now unless something really bad happens, and that's not going to be good for stocks. there's going to be four rate hikes, so you have a rising rate environment, stocks have met those higher expectations, and it's trying to turn to to say, where do i go next 17, 18 times earnings is certainly not real expensive, but it's not dirt cheap either >> so then let's spin, you know, ahead forward another six months and now we're talking about the midterm elections. how important is that outcome to stocks right now when it looks like it could be a democratic sweep, when it looks like impeachment is an objective, and every day brings us a headline about trump feeding into expectations one way or the other. >> right you know, i put the midterm elections as one of the big uncertainties. first, interest rate, certainly, and then, secondly, midterm

elections coming up. you know, expectations are the democrats are going to take over the house. trump's popularity has come back >> yeah. >> and even though it is what, 10 points underwater, that's the best it's been for a year, so there is some hope on the part of republicans that, you know, with a good economy, people seeing the tax cuts, maybe it'll inch further in that direction one thing is important if the republicans take the senate, you know, there's not going to be a conviction there's not going to be a reversal of the tax cuts there's going to be no reversal of the republican positions. they knneed the president and te house. they can't happen for another two and a half years some of the dangers are delayed, but, yeah, certainly, that means there's going to be no more -- i mean, look, do we hear about infrastructure anymore i was a doubter that that would ever come through, and, you

know, little trickles here or there, but, really, main part of the trump platform was the corporate tax cuts, some extent personal ones, and that's done >> yep all right. we'll see what lies ahead. thank you for joining us, professor. appreciate it. >> thank you for having me we have an earnings alert on weight watchers, eric has that >> stock's up 8% now after earnings, closing in on an all-time high from seven years ago. beating top and bottom lines on ree revenues, raised guidance 20% for the year, and they cited a record number of subscribers, 4.6 million people in the end of the first quarter, up 29% from a year ago, and eps there, looking at 56 cents, but that includes 25 cents due to oprah winfrey and stock options she exercised that helped the company's

revenue there. hard to find a comparable to what it should have been, but all in, they definitely beat on every possible way you can measure this, and that's why the stock is up so far back to you, kelly >> 8% pop. surprised seven years ago was the high, but, they are making a comeback >> yes it's interesting diet companies are streaky >> just like the diets themselves >> yeah. hit on something, gets a lot of uptake, get a market share gain, and look at the chart of weight watchers, and nutrisystem goes like this. they trade market share back and forth. weight watchers has been on a roll >> yeah, it is after hours up 8.5% caterpillar, though, dragging down the dow after bank of america downgraded the stock to neutral, and recooped losses in the session. fast money traders say whether you should buy the weakness. first, though, starbucks' coo says the phillie fallout has not impacted the ability recruit, and kate rogers is in atlanta with more. >> reporter: that's right, more

from the exclusive sit down with the coo, hearing from her for the first time in the role and for thfit mee rsti since the incident in philadelphia last month next on "closing bell.

♪ some of the biggest companies in the u.s. are at a huge hiring fair in atlanta today, and kate rogers is there

to speak with the new chief operating officer of starbucks and how the issues in philadelphia impact the company's hiring plans, kate >> reporter: hi, kelly, that's right. starbucks was one of 20 companies from fedex to bank of america filling this center today with thousands of kids coming in hoping for an opportunity, part of the coalition committed to creating 1 million opportunities for young people ages 16-24 by the year 2021 who aren't working or receiving an education as you mentioned, we also did sit down with the coo of starbucks saying the incidents in philadelphia have not impacted their ability to hire and recruit new talent >> we want to give everyone that first chance, and they need these opportunities. this is the part of the country and our nation that usually gets forgotten about, and we don't want that to happen. when we hire these young individuals, they stay with us longer, they promote sooner than the rest of our hires.

>> reporter: we also got her reaction for the first time to seeing that arrest footage in philadelphia >> the footage was alarming, you know, no one ever wants to see that, and many in particular, i have a 23-year-old son, so it was deeply personal. >> reporter: so now the company's looking ahead to may 29th, of course, closing for an afternoon of racial bias training and hopeful they lead by example and also, kelly, move forward as a brand back over to you >> i wonder, kate, did she talk about the difficulty hiring people because every day brings a new story in the papers about companies handing out signing bonuses, and a lot of companies are in parts of the country that don't have a lot of workers or in difficult jobs like working on the rails is starbucks experiencing those issues with the labor shortage out there? >> reporter: we talked about the skims g skills gap, and that affects companies like starbucks, but they see the 16-24-year-olds as

an untapped resource because they are not in school or working, and as she mentioned, getting them while they are young and foster a career for them throughout the ranks. >> that would be great, and close that sort of underemployment we talk about. kate, thanks, great stuff, thank you very much. kate rogers in atlanta today >> reporter: thank you a look at how we finished on wall street today. it's not the finish, but what happened in the session that was most of interest dow down 400 points this morning, and it made a comeback closing up five, and nasdaq and s&p down 5 and russell down eight. time for our cnbc news update, sue? >> hello, everyone this is what's happening at this time police say one person has been shot after a decembispute in thl in nashville, tennessee. police say the shooter is in custody and no additional threat is known the mall is being swept bid police officers, however, as a precaution rapper meek mill is using freedom to call for criminal justice reform

the philadelphia native appeared with pennsylvania's governor in the shadow of independence hall. >> it was a traumatic experience, and happy to be back and a part of what i call history because i know it's a lot of voiceless men and people i personally know from being in prison sitting next to them every day, and who are depending on me. seattle mariners announced that 44-year-old ichiro is moving todd team's front office to the playing field he began his career back in 2001, and after a nine-year career in japan. that is the news update, kelly, back downtown to you >> where is otani playing? >> california. >> california. l.a. >> dodgers >> what do you think about this? >> incredible career >> he's 44 and still pitching? >> 44, he's ageless. >> i'll say. >> some say the all-time hits leader adding up the japanese

hits in that league and over here people are saying, i guess seattle maybe is going to start the season over in japan, maybe coming back for that agent not saying he's truly retired. >> 45 and still out there. >> could be. >> wow, awesome, sue, thank. >> you got it, guys. >> wild day on wall street, and coming up, what's it take to win the tug of war battle between the bulls and bears, and bank of america upgrading john deere and utl.grading caterpillar to fast money tray idders talk about the industrial trade after this feel that? that's the beat of global markets, the rhythm of the world. but to us, it's the pace of tomorrow. with ingenuity, technologies, and markets expertise we create the possible. and when you do that, you don't chase the pace of tomorrow. you set it. nasdaq. rewrite tomorrow.

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welcome back, more earnings movers, sharings of engineering of floor plunging after results came across, eric? >> that's right, kelly, stock down 11% from 59.50, it is light volume earnings not looking good, 56 cents adjusted compared to 70 there, ceo said they have continued challenges on a gas fired power project leading to a difference there, part of the reason why that stock is down. also, lowered guidance by a full

dollar from about 330 to 2.50, so that's a big jump there that's why you see the stock with such a move back to you, kelly >> yeah. eric, thank you. in fact, you might have thought the move would be bigger given the cut in the guidance, but it specific project versus general infrastructure >> the issue with the companies, huge multiyear complicated projects, you know what you're going to make going in, if you have cost overruns and difficulties going along >> throws it off >> pace off margin, yeah >> down 11%. the other big stories today now in the rapid recap market's having a challenging day. dow is down about 330 points >> news surrounding the president is not good, and i wonder if maybe this market was expecting trump to be successful with china and now sees him hindered a little bit. >> tesla shares take a nose dive as musk posts a bizarre earnings call >> bonehead questions are not

cool, next >> what struck investors was dismissiveness was heightened relative to what elon had done before >> michael cohen, personal lawyer for the president of the united states had his phone lines tapped by federal authorities. dow was down more than 390 points at its low, and we have seen it try to go positive >> dowdown nearly 400 points earlier today, only to close positive by five, just eking out that gain on the bell. it was a volatile day for industrials too. caterpillar staged a comeback in the session after opening lower on a downgrade from bank of america, finishing just unchanged, bank of america downgraded cummins, but upgrad d ed deere to a buy. so some cross currents in the industrials today. let's bring in the fast money traders to make sense of it. pete and tim, what -- now you've

got the baseball, tim. is this -- >> come on, kelly. >> for segment what is this >> i thought when we talked about caterpillar, metaphor is a pitcher with a high pitch count. >> i see >> pitched a great game, but they run out of gas. i feel like you look at the multiple and stock at 140% into, then, this pullback, a trailing multiple, which is not its long term multiple, and, in fact, should be trading at 13 times. we know about the multiple compression in a fed world where rates move higher, so doing a great job, dealer sales will peak at 25%, and that's the story. >> i think mike has to take over from here. >> you know, it's funny, you accuse me of being a met fan, but seymour actually is. >> oh, man this is kind of a last chance inspiring story, mike, thank you. >> any analogy for caterpillar

there, pete, what do you think >> tim brings up some great points most important thing about this downgrade today was may of '17, same analyst upgraded this stock had an unbelievable run. this is a discipline call on his part let's not forget, he still does have a target of 156, significantly lower than he was, but that still gives you plenty of upside, kelly, so are they decelerating in growth? yes. all the things tim brought up are correct, but 13 multiple, and if they are a $10 earner this next year, this is a stock that actually could see 156, and pain in from 173 to 143, talking about a 30 point correction. that's big >> all right tim, we have to go, but can the industrials and market leave cap behind if you are not keen on them >> deere has a better shot, again, based upon fundamentals cat has issues in asia the industrials have challenges here, frankly. people are looking at the reporting indicators, some head winds facing all industrials >> ism >> stronger dollar

>> yep >> it's far from a disaster. remember, the companies had no growth, no top line growth, and barely eps growth, and they have it now it's not time to run to the hills, but see what makes sense. >> all right mike, come up with a baseball analogy pitcher reference for that there, but, guys, thank you very much, pete, tim, thank you for joining us today more coming up in 17 minutes time on "fast money" at 5:00 p.m. eastern blueapron shares down 18%. the move company takes to spark growth after this. ♪ (daniel jacob) for every hour that you're idling in your car, you're sending about half a gallon of gasoline up in the air. that amounts to about 10 pounds of carbon dioxide every week

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welcome back, big comeback today, dowdown 400 points, closing higher, briefly the nasdaq was higher in the final hour, too, couldn't stay there, nasdaq down five, and russell down eight, and s&p is close to being in that 10% correction level, going back to those january 26 highs something to watch for the markets. time now for today's take away another chinese ipo comes to market, the consumer electronics giant filed yesterday, xiaomi, could raise $10 million, valuing the company at a huge $100 billion, and they have kicked hong kong, michael, a blow to the u.s. market? >> could be interpreted that way. they are taking advantage of some of the provisions in hong kong, list dual share -- >> now you can >> here you can as well in a lot of ways, so, yes, i think the u.s. could have been a candidate for the deal, but what jumps out

to me, though, once listed, you have a huge chunk of chinese tech and market value going in there, and presumably goes into the index, and right now, china stock market is about 30% the big three tech companies >> huh >> so with alibaba, and so it's interesting. you have all this market value in emerging markets tech, it's elsewhere. >> and xiaomi not just a hardware story yeah, also, keeping an eye on apple questions. next, a bond etf launched today, the pro-shares s&p 500 bond etf. there's a bond etf tracking the stock market, mike, what's the point of this, and what's it tell you about this product in. >> i think what it tells you is there are corporate bond etfs out there, plenty of them, all following some other bond index, and they are trying to use the s&p 500 so people know what it is >> must be a retail product.

anyone a sooeerious bond investr does not use the s&p >> a serious bond investor, bond indexing can less popular than stock index for institutions who want low cost, and inefficient s to stocks. >> it's not just, okay, take the one piece of equity, so is it just a marketing gimmick >> largely, but i think it's a shortcut because they are big established companies. not everybody has debt so, you know, they certainly don't have debt in proportion to the size, right? >> right >> it's a grab bag, but, again, etfs right now are about marketing because the basics are all out there. >> so many of them blue apron is moving out of delivery boxes into a big box store. the company started selling kits at costco in attempt to woo back customers and get the edge on competito competitors, down 80%, down 9.5% today.

is this enough >> hard to say not an original story, and this morning, we had on the guy from harries, and so nay are in target and walmart going in, and clearly, customer acquisition costs are onerous for the direct online retailers, but the fact this is a way of hat tricking people >> there's a lot to be said for the costco stamp of approval they don't take anybody. if they say, we'll feed blue apron to our loyal customer base who trusts us with this, that could be a big bode of confidence >> and costco known as a place where people try new things, right? you go in the door, not sure what you get when you walk out >> i know. i never know where to look, but then sometimes you find the biscotti - >> you are a bigger expert in this >> i love it another volatile day on the street who is controlling bulls or the bears that's next. ahead on "fast money," the man tholca on the market telling us what it is.

just minutes ago an earnings call for activision. how their quarterly report was released early today listen o >> before we start the car we want to share an extraordinary error made by the "wall street journal" which caused trading volatility in our stock today. the "wall street journal" made a mistake and released an inaccurate headline reporting our q-1 revenues at 1.7 billion dollars. instead of our actual q-12018 gap revenues of a record $1.97 billion. not only did they report

inaccurately, they did so in violation of our written embargo agreement. they have since issued an apology. >> all right egg on the face for dow jones after that one shares were down 5% before they were halted this afternoon they opened before the bell turned slightly positive in after hours. they are down a quarter of a percent. we'll give you more headlines from the call. the dow staged a turn around today. the s&p 500 is near the 10% correction mark. who's in control of the market bob pisani is here to answer >> you know what's amazing is how successful the bears have been in changing the conversation just in the last few weeks. we have gone from global expansion to now slowing global growth we have gone to inflation from inflation is tame to inflation is picking up. these are potent arguments to make if you can combine that with the idea of peak earnings i have said peak earnings is a

nonsense idea when you have global growth. you can do fine in the stock market when things are still growing, even just to the rate of growth slowing down. >> how much of a global slowdown has there been if this is what the bear case is resting on. >> europe slowed down noticeably you wouldn't say it is at a critical level where it will tip into contraction it changed the story line enough we are no longer talking about are we going to overheat that was the conversation four months ago now it's different >> bears are here, bulls are here bulls lose conviction a little bit. you say why is the market stuck here >> you need the fundamental strength story. >> it seems okay. >> i think one piece they have -- and this is a separate adjunct to what you were saying. the head of the global banks sound more dovish. you had carney in the bank of england. draghi especially sounding just

a little more dovish the bears jumped all over the commentary and said, you see >> which tells you about the environment. a couple of years ago if they sounded dovish the bulls would have said, wonderful >> that's true except what's the exception to what bob said the fed isn't sounding more dovish. >> right. >> it's like, okay it feels like the world we have been in for a long time. >> was the language sort of dovish if their idea is we are going to let it -- >> two different interpretations of that. >> it could have been considered dovish symmetric means we are not freaking out that it's not quite at 2%. we wouldn't freak out too much if it was a tad over 2%. the normal reaction of the market to the comment was they are not going to be aggressive in the rate hike there was nothing in the statement yesterday that said we are going to be more aggressive than people expected the fourth rate hike didn't change much. most people were still on three. but the bulls have got to be very aggressive here or you'll

have problems. >> we'll see led by the bulls around the corner here. bob pisani, thank you very much. a volatile day we'll check on after hours movers wh wco bofho tse ene meack. ♪ directv now gives you more for your thing. your letting go thing. your sorry not sorry thing. your out with the old in with the new, onto bigger and better thing. get the live tv you love. no bulky hardware.

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welcome back here are your after hours movers cbs up a little less than 2% it beat wall street profit forecasts. shake shack with an increased outlook thanks to jumps in sales. weight watchers higher beating estimates raised full year guidance on a record number of subscribers up less than 7%. you said get the popcorn for the tesla call who do you want it for today >> i want to save it for 8:30 tomorrow morning, the jobs. >> oh, the jobs report. >> today is three months to the day since a little bit of a freak out february 3 in the report about the speed up in wage growth. >> yeah. >> that's calmed down. i don't know how people are leaning. >> i don't think it will be that interesting. >> it hasn't been a market mover. >> it was a dud. >> it wasn't dictating how the market would do for the next few -- >> if it comes in hot -- well, you're right either way it set it is tone. >> today's ism services number, i think, was soft.

people weren't crazy about it. >> no. >> it's not clear to me if people want to wish for reacceleration or just -- >> do you think they should do a call for the 8:30 jobs report with the labor department. >> we should with the secretary of labor. >> should they take an elan musk approach to the questions? >> no dry boring questions. >> that does it for us today "fast money" starts now. "fast money" starts now live from the nasdaq market site over new york city's times square our traders are pete najarian, guy adame. gold man jumps on the bitcoin bandwagon. the first of the traditional big banks to join the craze. spencer bogart, a top crypto hedge fund says this is the first of wall street embracing the crypto universe. and elan musk going nuts on the earnings call last night and shareholders are paying the price. ji