>> exactly but back to that oil price if you can pull it up it is a decline in the afternoon we have seen the worst of it in the past 20 minutes. it will be a key thing to watch into the final hour of trade thank you for watching power lunch. all right. closing bell starts right now. >> it is time for the closing bell the feds december rate decision less than 24 hours away. we will break down all of the possibilities and what it means for your money coming up is am sazon a friend or foe will micron earnings turn things around? we'll have analysis for you straight ahead

>> a social media company faced new fallout over russian meddling we'll discuss what it all means. the closing bell starts right now. welcome to the closing bell. we'll get to stories in just a moment another rally fades in time for our show here. >> let's check in. dow is in negative territory it was down 35 as we speak it had been up 334 points at the high the s and p is down more than 0 0.6% a massive slide in the course of the two. it was power lunch >> throw it off every day. headlines around the shutdown. the dow is on pace for the

biggest monthly percentage point. >> we are looking at declines for all three of the major indexes. extraordinary ends to the year >> we are heading to our worst quarter in years as well >> bob has a look at the market. we will hear them again. steve has a preview of what the fed might do tomorrow. let's start with you >> we were 40 points higher today. 2573 let's take a look at where we are right now. some confusion about what's going on with the spending bill. he has said that they are sure they are not going to shut down. you can see it down. not confusing is what's going on with oil and the second collapse

just about an hour ago knocking oil down tomore than 15 month lows and of course that's dramatically dramatically effecting what's going on dow movers doing better than the s&p. apple as well an the upside. exxon is down. the health care stocks also turned south they had a tough day yesterday the bank stocks which have never been doing anything for the last several weeks also to the downside it is very simple. it wants some kind of bottom they have unvail aed attempts to rally. no help to anybody the problem is no one can agree on whether the market can go up

or down. it is really a coin toss back to you. >> thank you very much for that. investo investors are closely watching for my hard data pointings it is all right showing serious cracks in confidence we have a look into this >> traders are working their way through this confidence crunch it is being driven by trends in economic survey related data that have been trending lower for quite some time. you the cnbc numbers or chief executive groups it hit the lowest level since right before the 2016 election a big question is when will the hard looking data, talking about gdp, consumer spending, all of that other information, when will it start to reflect the

more forward looking sentiment indicators and confidence readings this may be a blueprint. it has been hints at for months at this point. for now the economic data points to at least a thesis that they are doing okay unemployment, remember, gdp not booming. it is still growing for manufacturing activity still signaling some kind of economic expansion. sara, i know it's something you'll be watching closely >> absolutely. did you say it has dropped to levels before the election >> yes >> so that whole confidence boost got as the result of the

trump trade? >> they topped out this is according to the monthly survey of hundreds across america. it hit a peak in january it is down about 16% since then. the key to this month's december reading is the fact that from a november to december basis it was the biggest decline in ceo confidence so far this year. yes. it does represent the lowest level of ceo confidence since 2016 to balance it out we are at relatively high levels but still, that trend has been in place downward for quite some time now >>. >> thank you >> new comments out of washington not helping this market lawmakers talking about the shut down >> there has been a lot of confusion over where exactly we are. we appear to be heading away

from a government shutdown he said she sure lawmakers will meet that friday deadline to fund government. it will likely happen through a short-term spending bill nbc news reporting that that continuing resolution could take us through february and chuck schumer saying it is a bill they would seriously consider he planned to speak to the white house about the path forward later on this afternoon. he will meet with democrats and see if they can reach a compromise the white house appears to be backing away from the hand line demand that it received 5 pistol dollars -- $5 billion in the border wall they would be looking for that money in alternative avenues, that they could get that border security funding in other ways they would not need to see it in

the spending bill. that oecpens the door to compromise it looks like we appear to be heading away from a government shutdown back over to you >> thank you very much for the update from washington speakingover washington less than 24 hours a way from the interest rate decision as they face pressure from the white house and a lot of others. kpliks reporter joins us more on what to expect >> anticipation and unterncerta. we surveyed 43 of them, economists, strategists and 98% say despite all of the worries on the market they say the fed will hike in december. it is up from the november survey we did. 2019, that forecast for rate hikes did come down. 1.8 is now the new number. 2.5, the way to read this they

were debalting no you they are debating one and maybe two for 2019 and urnds one for 2020 what is behind the market se selloff? 71% say tariffs had a lot to do with selloffs. 37% say it's possibility of more rate hikes you to come all the way other here 24% say it's weaker growth all of the action is softer sentiment data, not necessarily in the hard data this next shows you about the concern for this year. probably going to end. it will end above 3% for gdp here is the slowdown by our panelists. down to 2.3% or call it a little bit above that it is slowing down to 1.8 plkt in 2020. i think market thinks it will be below this they give a lot for that number.

look at unemployment rates seen steady at 3.7 and inflation at 2.2% the other thing that's happened while the growth forecasts come down the probability of recession comes up take a look at this spike. remember he was saying how he had the biggest decline? it was one of the bigger ichb creases we have seen are at a 23% recession it is the highest level for trump presidency just a bit above the long run average of 19% we have been here before 29% up in january of 2016. it did not result in a recession. we have had these before i think what we are picking up here is a sense of the anxiety out there for the economy next year if we can slow we'll be in good shape. anything below that i think will cause more concern >> stooefr, just quickly, a question i always think about every fed meeting but especially this one do you think they need

two days to reach their decision >> it is an excellent question we have not had much opportunity to talk about that i think one of the things is does he have the votes to hike i think he does. i think he has not had five members of the board of governors since i believe 2017 when dan t fed governor left it is the way the internal politics work. you buy off the opposition with plans to take statements for the future >> which all points to that december hike. a dovish hike. >> exactly >> thank you nar >> here to debate it is jim and

kefren miller from evaluator funds. guys, very good afternoon to you both i'll start with you. would you be bullish if the fed decided not to hike? >> yeah. it is really around the global economy. it is slowing down a lot europe is slowing down almost to the point where we were in 2012 when he said whatever it takes there is a big problem outside of this country. the question is does it come to the u.s. and i think the answer is yes i'm afraid that the feds boxed themselves in. they will do what w58 street likes to call it which is code word for they will raise rates and immediately apologize for for it if you're going do that you shouldn't raise rates. >> the direction of travel for europe is not what you would like to see but it's nowhere near the lows of 2010 to 2012

needs to say whatever it takes i think the french pmi was below 50 the rest still remain above 50 >> yeah. but -- >> there are other statistics showing that the dramatic slowdown in the u.s. pmi is one that would lag a little bit some of the harder data measures are really slowing down. >> so kevin, take the bull case. >> okay. we look at it a little bit differently. we look at there are two things that will drive the market one is funds mentals emotion and uncertainty are trumps funds mentals we look at where we think gdp will go. it will go down by the end of next year. we look at unemployment being where it is at by the end of next year being in the low 3s

we don't see a recession coming. we don't see two negative gdp quarters back to back next year. we could see something like that ensuing some time in late 2020 or early 2021. we are looking very strong at a robust market. we feel that at the end of next year the s&p could easily be in the 3000 to 3,100 range >> the low oil helps keep inflation down it isn't good for oil producers. at this level they need a higher

dollar per barrel to justify that i think you'll see a natural burnoff and lowdown from output. by next year you'll see oil back into normal trading ranges >> so just because we made a big point of pointing out the softer data, the confidence numbers, he brought us a report on that. how long does it take before it softens the heart data >> a lot of that is on politics. you had a change in the house. it drives a lot of sentiment numbers. it seems to drive it a lot if it stays down it would be a problem for us right now so far i'm not having to look at that data to justify some kind

of slowdown. i think the rest of the shore will come ashore and really slow us >> thank you both very much for joining us still ahead here, a number of mega caps, we'll break down the hardest hit names and discuss whether now is the time to jump in chip stocks have been slammed. we'll take a look at the damage that's been done and take a look ahead after the bell the dow is up 4 points we'll be right back. [leaf blower] you should be mad at leaf blowers. [beep] you should be mad your neighbor always wants to hang out. and you should be mad your smart fridge is unnecessarily complicated.

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chip stocks getting a bit of a lift today it has been hit hard josh has a look at the damage that's been done, josh >> chips higher today. it's ban brutal ride if you take a look that tracks the chips now we are on the worst quarter since 2011 hi traveled and met with

manufacturers. he expects more near term pressure the man he says gets worse across markets including smart phones and cloud infrastruck clur he sees 10% downside risk before it is priced in here they say there are ports where chip investors can ride out the storm though the kpaechb has already reported and gotten the bad news out of the way. he is a fan of micro chip. more news after the bell when micron reports that is down more than 20% it will be looking for eps of 296 and revenue of 8.02 billion. back to you. >> josh, thank you we'll pick up right there. here to talk more about the o outlook is shaw.

josh just went over the numbers. what exactly will you be listening for with this company and how much does the rest of the sector depend on it? >> it is very focused on the guide for the february quarter which i think that a lotov of people are expecting to be pretty weak. we think the news will be bad but are we at the point where bad news treated as good news. >> so one question is how bad might the february quarter be guided to? the other question is that going to be the worst quarter in the next four or five? do you expect it to be the bottoming out quarter? >> it could be you know, this will poe ten rlgly be the second estimate cut. you some companies in the space

people are concerned about global growth but a lot of companies have been signaling weakness since april so in essence they have taken a lot of pain already. i think it will be a down quarter for a lot of names we might be getting to the point here in the next coupleover months where numbers are actually washed out and as we look forward to the june quarter we could see growth resume so i'm cautiously optimistic that we may go getting close to a bottom here in a lot of these stocks >> we watch for any sign of a turned around. they are not all trading as a group. >> if you look at the six month performance it's a different

picture. micron is down where within the chips do investors want to be and which one is the better buy. >> you're so right i really like broadcom what i like about it is that they are in the prostesz of a merger integration that will drive very good everyonings growth next year which i think will be a rarity in the space overedness all on top of that you have an $11 dividend i think that will probably go up in 12 months you a low multiple stock that's underperformed you have earnings growth you a very nice difr denvidend

>> and wall street initially hated that deal. >> is that right >> the deal came out of left field. you know, this management team has been impeccable track record when it comes to merger integration. we have had the opportunity to hear them talk about this deal now on a couple of occasions i think the market is slowly warming up to it it will drive decent refr knew and earnings growth. it is strategic. it is boosting cash flows. they are turning around and taking 50% of that and giving it back to shareholders i think people are warming up to the deal >> thank you for joining us. >> thank you

>> the president just asked at the prospect of a government shutdown he said we'll see what happens and he also said we need border funding. mcconnell says he does not expect to see a government shutdown over christmas. he expects there will be a deal here at some point three have signaling they are waiting to give an indication of what he would sign the expectation is that there won't be a government shutdown, that the president will cave in on his demand in funding for the border wall. it appears that the haggling now is over exactly what form that is going to take we'll have all

of that this afternoon >> thank you for that. we are off of the session lows the tone around that has improved >> and looked at first like some of the headlines came out and then they said it looks like they are moving. >> right the low of the day was down 69 points we are now flat on the dow >> not a super impressive comeback it was the first up day. we'll see where we settle out over the next 30 minutes oil falling below $46 a barrel we'll break down what's behind that plunge and energy stocks taking a hit as a result details immerging, what the firm's invtmesent banking said about the fallout next

welcome back some individual movers that are moving today, olive garden saw an increase and raised the full year outlook for 2019. stock is up 4.5% it seemed pretty good with olive garden and capital grill did note that competitors are

issuing more promotions but they have been able to pass on higher prices and get consumers to opt for more premium options they raised the price of the pasta package. >> all you can eat >> all you can eat pasta >> we'll focus on same store sales. >> it was good >> i'm watching goldman sachs. up today 2% and earlier the investment bank joined david favor on squawk isn't the street and said they are not seeing an impact to the top line of the business because of this >> wanted to engage with our teams on their issues. we continued to win mandates for those doing business with us we feel strong about the resilience bu

resilience but recognize until the situation is resolved. >> and the president and coo was with me a few weeks ago. they want to hear him address it yes. they are facing legal issues they can't make that many statements but he is saying yes that diamond came out and gave a ten minute call to investors yes the stock is up and i don't think it is because of greg's excellen excellen comments earlier >> they are also asking is it effecting moral? >> it has been a year to date move as woe look at things now again, he should have dodged that question. he is not impoufred. >> right >> it is the attorney to address the issues

that's why i think people want to hear from him on this particular issue >> you're always welcomed. >> yes i'm for cnbc news update >> hi. sheer what's happening at this hour the trump administration moving to officially ban bump stocks which allow semi automatic weapons to fire rapidly. it prohibits machine guns. it gained attention after a gunman in las vegas used them to kill 58 concert goers. mcconnell proposing 1.6 billion and ad additional. democratic lawyers rejected the proposal characterizing the additional billion as a slush fund >> what is happening at the border is shameful it goes against everything we stand for as a country our values are not reflected in what's happening on the border

what the slush fund could do is more of the same than what is thanning a it the border head koefrp failed to restore the status as an elite team it was marked by clashes be w players. it was not a good fit. >> you're only going to see a broad smile on my face >> i know. i can just imagine i think you a lot of -- you a lot of company with that >> yeah. >> i try to stay impartial when it comes to news i don't when it comes to soccer. >> thanks a lot. >> we should point out that the stock market listed on the new york stock exchange is up about 5 or 6%. >> exactly >> but today it is going to cost some 20 million pounlds. >> it is >> as soon as they name the new

coach i'll have that for you >> you may have it before me >> well, i will save it. thank you very much. wl get back to markets now is to bes are moving higher a little bit under 30 minutes to go let's take a look at some of the biggest movers of the day. bob, let's start with you. >> we did have a low we dropped below the lows of yesterday. it is a low for the year we are bouncing back a little bit. a lot of confusion on the spending bill. democrats did reject a spending bill he is sure the government will not do that. it caused confusion. the zdow is doing better than i s&p. boeing and apple are doing better it is truly epic banks doing nothing with jp

morgan the bottom line here is total confusion about what the fed might say and how the market might react. that's really the main problem right now. back to you. >> just to be clear, if the outcome in that the fed raises interest rates and then paints a picture what are we talking to >> they would say that's what we want the market will really we are looking for good news we are going to rally. the other half says you don't understand that. that's already priced into the market we anticipate that already the market should not move on that kind of news. there's the crowd that said the fed shouldn't do anything. if that happens does the market go up? maybe. some say that's the bad news we are not going to go up. you see the confusion level? >> they said the fed is listening to the president and compromising independence here

>> irrelevant of what the factors are at the moment we have given it up despite being down >> this is what i said no one is being rewarded for buying stupidly oversold stocks. they are down in the last couple of weeks noble i am not buying anything for anybody. >> thank you for that. we have more on what is moving >> the there seems to be a gravitational pull still holding onto gains chip related gains but i also want to draw your attention.

it is lower for the seconds straight day it doesn'tsome to be moving nn any specific news. the two hot button views swuchb if the fed is too dovish. it is a concern for tech companies. the seconds is fed ex. a good economic indicator as we look to ongoing competition with amazon back to you. >> thanks for that some of wall street's biggest companies. we'll look at the hardest hit mega caps and whether now is time to jump in and buy them don't go any where duncan just protected his family

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let's get a look at the big stocks >> it is something known as bare market others don't refer to it as

much let's take a look. of those stocks that are worth at least $100 billion let's take a look at some of the notables wells fargo. somebody wilfred knows can they get the public image if your honored around facebook 33% down customer data issues 35% drop from revent lies. three of the 14 that might be due for a turn around if they do on investor shopping lists some time in 2019 back over to you >> thanks for that

we have rick here. good afternoon to you. i'll start with you. is this all about the fed yesterday and today losing the attempts at rallies we have seen or is it other factors >> at this moment it is all about the fed. on i ha obviously people are figuring they will get the raise and they are going to have dovish language in there. that will be the first thing we see. we will probably get a knee jerk reaction and we'll start to see more of what we have been seeing >> what are the factors that caused this? >> global growth is winding down it seems to be that is the impression this street is

giving people are starting to get into more defense iive stocks some of the more stable plays it is far large growth next year. it's not the kind that's been used to. >> is the market forecasting a worst picture and the u.s. economy and fundamentals are actually suggesting. >> i think it's absolutely right. i think it's a perfect explanation of what's right. if you look at the volatility it has been about what the market fears could happen frm not actually what's happening. if you look at it it is bad add properly predicting the events and how they could turn out

if you don't think it will happen it will tell you it will turn out to be astrong period. the falls are followed by strong returns if the market can go back >> how can you sum it all up is it really a case of softening of data than domestic? >> i think it is a faster deterioration than inside the u.s. i don't see recession. i don't see two negative quarters any time soon i is getting taken away doesn't

mean it will give us a glufrms of a kwarer or two down the road in my opinion. i think it is important that it is turning the corner. many believe they shouldn't do it the problem is theyare more into following a static plan than following good policy i think would it be shocking to the market absolutely they want to avoid that at all cost i don't understand why i think we are at the point where central bankers need to do a job and not necessarily be

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fed exis down. morgan stanley put out a note saying it could pose major risks. they say amazon air is not a threat to fed ex he joins us to discuss all of the earnings wants to explore that. why is that not a big threat >> look, put simply i think it has been putting in the air are flying at different times to different places if they doing that inside of their network they are not going to get the same they would have gotten if they would have put it

through fed ex network it comes down to a matter of time when you're thinking about it it is really about time >> yeah. i think when you think about the real barrier to entry it is not an individual plane or individual warehouse [ no audio ] it is to keep it up and running. it will be really difficult and bearing it for a number ofyear to come. >> samson represents 2% of revenue loss for ups and fed ex.

that goes up to 10%. it looks at it as a market share for shipping products. >> yeah. i think if you look at the size of the planes amazon has and the fact there are planes you look and you could come up with numbers. it is an ability to cut down the lead time, not to do it on an overnight basis. i think when they are set up they really are very different than what you would see it is difficult to see how the volume is being diverted.

>> we'll continue to see if there is any commontary. >> thank you we are back in the green, dipped into the red. the dow is up 334 we'll break that down when we comeac bk. let's get started. bk. 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.

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a brutal day down more than 7% finishing just above $46 a barrel it's dropping even more. down 6% 59 just over $56 a barrel still front and center as the u.s. and russia continue to pump oil. add to that concerns over slowing demand later on we are going get private sector oil inventory we'll see if it shakes up prices

even more. >> yeah. thank you. we'll be right back with wilfred's closing countdown. the future of technology investing

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there is the s & p 500 you can see the lows hit about an hour ago. we are sort of pausing as we approach it but wul off the highs as well. you can see all three were higher moments ago going to bring there bob here and have a look at the sectors as we do that. >> down 20% this month >> yeah. another big attempted rally today despite december being incredibly soft. >> we bounced at that old february low oil is down 7% it is lower global growth. you know it is primarily a

supply market. >> we will be focused on that. here at the close we are higher by 84 points the low is down 80 the high was up 334. we are starting with the low it is up 85 points back to you. let's take a look at how we are finishing the day on wall street it was an update after all closing off the highs. it is still higher

boeing contributing 77 points. a big winner a big slide in oil prices worst was energy best performing real estate check out the russell 2000 it closed a day lower. as mentioned, the roller costar day ahead of tomorrow's big federal reservesdecision you had a lot of confusion about headlines we we are trying to resolve take a look. we were up 30 points

we hit the february low again. retailer and home builders were doing well they were better nothing from banks no support it is down 20% this quarter. boeing is up goldman sachs a little bit of recovery everything else was negative what happens to the federal reserve tomorrow i can tell you what the market is going to do big fights about what's going to happen they signal fewer heights in 2019

if the fed doesn't hike do we get a rally that they see slower growth there is no general consensus. >> thank you for that. >> we started the day higher the headlines out of washington related to the shutdown giving back much of the gains in terms of what worked for the market delivering better than expected earnings it ended the session higher as did american airlines the hope is that today would be a start of a big turn around the rally fizzled. it throws cold water on that for now. a handsful of stocks workday, netflix, guys, up 40% or more on

the year still a hand full of winners >> all right thank you. ginning us to talk about what to do next. >> it was always a tent tifr rally attempt. if you look at the internals it was basically even it pulled down so people are using that as a key. we are not in the market where they can ignore that it is very skiddish. >> i'm surprised i'm being a

little more negative you were saying the bounce was expected. >> how much is riding on that tomorrow >> it is a great question. i think the problem is that any news is being construed as bad news i think we are in that sort of environment about what feels like negative sentiment. i think that it is dominating

macro. i think what is the most unusual is if you look at what they are saying, if you look at earnings will is a clapgs or recession. there's a lot to stocks at these levels >> i think that the feds tomorrow >> it is of how distant the market is looking into the future versus where the data is. >> right we are looking at this i think the worry is that it's not just slowing but going negative it is from rising inflation and slowing demand corp. rags, shutting down all activities in the face of all of

this uncertainty there are reasons to worry about it going negative i see it going from very good growth say 5% next year massive slow down but pretaxes it is 10% to 5% i think there's this sort of wall of worry. if we get the sense that they are cutting jobs and we started to see a little bit of that if it continues or worsens one could argue that the downside was actually warranted. >> yes >> michael, what are you doing in this environment?

>> i think i would be cautious it's not surprising to us. i am of the expectation you'll see it likely raised tomorrow and use all sorts of vocabulary to expectations they will going forward ton positive side i think you'll see some sort of progress on the trade talks with china. i was watching the leader of kli china's speech last night. he said the economy is doing fine the economy is not doing fine. i think you'll see progress on the strad front. i think you have the underpinnings of a bounce back but expected sort of correction

in this market >> finding that for if first time since january long faang is no longer the most crowded trade. it has been traded by long u.s. dollar >> yeah. >> if you want to think about it it is what most of my competitors own too much of. >> they are saying that the u.s. dollar is that crowded trade perhaps itis

>> i'm saying that's the consensus. >> yes >> this is your shot putting this out how often do the crowded trade sz fall apart? >> i think it's a great gaugeover, ygauge of what to think. faang was a crowded trade. the problem is it has been the crowded trade for multiple years. it worked and worked and then it didn't i we want to keep in mind that it could have that i think there are good stocks and bad stocks capital was free so these are high growth companies that rely on investments and credit, those stoc stocks will not do well.

i think it could continue to retain leadership in 2019. i think what's interesting is there hasn't been capitulation on faang even though it was outpaced investors are still long faang stocks >> good point. josh is here with the micron results. >> micron results $2.97. that is $2.96. revenue comes in at $7.91 billion. that is expectations for 8.02 billion talking about supply and demand

dynamics he argues this company is still in his words well positioned to deliver healthy profit blt throughout the year. stock edging lower here. it was heading down into this print, down more than 20%. back to you. >> yeah. i guess the question is how much bad news has been priced into this >> and saying earlier as to whether there's one more quarter of this weakness frm it doesn't sound like they are shaken off yet. >> when it is trading nominally. how much downside is there >> that's your only question right now. $2.97 was better than that it was $3.15 it shows you how estimates have been chopped lower to a degree >> we'll keep an eye on that >> it has been weighing on

those. >> we have to talk oil despite the plunge in crude prices you're finding that the s and p has shot up to the number one spot are you saying that it is attractive >> so evaluations are beaten down we found it is sort of the best time to buy a sector earnings revisions are plal p t plateauing the downside risk is limited and upside is much more significant. again, i think there are a lotover buys out there

>> you agree with that >> yeah. i think it is more reasonably valued i think we have to be very very careful. so it's important to recognize it is happening. if we have such a huge supply problem on top of alternative energy starting to make at least some market penetration in the united states i think if you buy the big oil names they are paying high dividends. >> yeah. >> hold on >> we have some fed exearnings out. >> stock is down about 4% after hours. here is the real news. they are lowering the fiscal year 2019 earnings guidance it

is down from the $7 range. they will be implementing some because of that weakness in their international business this is down 32% from the highs this year. the worst performing transportation stock back to you. >> thanks very much for that we should mention this is off the back of this guidance. >> you thought you had already built it in. we'll see how the stock settles out right here it is a pretty significant one it is baring the costs >> 23ed ex is so much a barameter. is it the earnings

>> yeah. >> fed exis earning. it >> is not good if you look at all of the s and p companies the guidance right now is .9 keep noo mind it is generally below one. companies toend guide down and beat those lowered earnings. i don't know how much i would read into this one instance. >> i still think it is an overall basis. >> thank you very much for joining us >> up next, president trump going on a tirade against facebook, twitter and google calling them bias towards democrats. we'll discuss whether he could be eyeing up regulation and what impact it could have on the tech stocks housing stocks posting a

nd ole digit drop. fiut how much more pain could be ahead -- ahead for housing. ♪ there's no place like home ♪

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we are details president trump tweeting this morning facebook, twitter and google are so biassed that it is ridiculous they have grately slowed the level and speed they have knowledged/done nothing. two reports that the senate intelligence economy said both before and after the election sought to benefit the republican party and are the trump. it is likely the result to remove over the course of the year twitter responding to the ptd our focus is on the health of the service and that includes work to prevent malicious behavior the result is higher confidence

that they real engaged people. this is not the first time president trump has taken aim at twitter often on twitter back in july he tweeted that they banned prominent republicans. back to you. >> thank you for that. that's calling it a significant front with meddling between 2015 and 2018 >> joining us to discuss more on what it could mean for twitter and facebook is paul meeks who i think sold your social media stocks is this the sort of reason why or is it just noise? >> one we do think social media use has peaked secondly, these

were by the russians it's clear there's liability here they clearly were blind and i think as they get deerp and deeper we'll see pretty ugly think things come out of facebook and instagram as well as twitter it will only get worse and worse. it will keep getting worse >> you think some of this is overblown and take opportunities to see where it goes >> you see it is particularly good buys now. it is twitter, facebook and google i think google with a tight of a thousand per share it is a combination of relative value and growth and

particularly long-term if they do score like vehicles in the meantime twitter i haven't been a fan of. it is talking about a peaking permanently in usage >> i'm worried about the added expenses facebook and others will have to spend to essentially be more on top of these prooifr si issues. >> this did not exist as a communications medium. when i hear these accusations i take a quick look and i say okay is it something devious? is it something intentional? i think in most of these situations it is not

it is just a very rapid ramp in a relatively new and when they said willfully blind, maybe blind. i don't agree with willfully >> you don't make the kind of money they are making doing it >> you think it is in these prices >> i'm not sure how far it will go here. i think by blaming him for being biassed for the liberals is almost laughable

these are not good people. they have acted to the country it is time to pay. it is time for them to pay they have made billions. i think it is disgusting >> i guess what i'm wondering is everybody is complaining about them for different reasons it's unclear to see what could come out of all of this. >> it is very hard is it that you to be to kind of scrub your user base or do advertisers say we are not trusting your targeting tools? >>. >> they say we are still on facebook >> right it seems to be where all of the rest of it is. it is very tough to see what happens except for psychological. you could make the case that stocks were overvalued because

people thought it would be very high profit margins. >> it is plausible but hard to see how it happens >>. >> out of the stocks you mentioned the only one i would buy is google because of the combination of reasonable evaluation i stay away from facebook right now. if i go into google i have a tight one of a thousand dollars a share. i don't rush into anything and let's see what happens still to come, we'll break down the chance to see if stocks are finally starting to look fairly valued after the recent selloff.

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mike has made his way there. what are you here we'll look at the total earnings estimate. this is a ten-year chart it shows you a long-term trend since the depths of the last recession until now.

a couple of things to note, as you can see the very beginning part of this market, the orange line was going at an above level. let's say it is down to that level. the issue is this is starting to roll a little bit too. prices might be chasing earnings estimates downgoing into next year when you get here a coupleover times making a mess here, i know they basically, that earnings level seemed to provide sporlt for the index

is who are is that the whole first half of the chart showed that this came in the opposite way as well. it's not like they are always immediately change of direction signals. >> i think if we getfully reainsurance that it isn't an ultimate peak i think the market can kind of come to terms with that that's big determining factor to me that's your big question not did stocks have to get much cheaper here thanks for that. we have an earnings alert. we have the numbers. >> that's right. shares surging more than 10%

after the company reported better than expected earnings. it is worth noting faced hurdles between the u.s. and china considering they make most of their equipment in china and sell to clients here in the united states. still the bullish guidance pushing shares higher after hours. back to you guys >> okay. thank you very much for that let's take a look. it is closer to the lows than the highs. the dow finishing up 82 points the high was 334 higher

it tracks the s and p they have taken a turn lower here. help me out. there is a little pillover >> yes and you had micron and fed ex. if that's going to be per severed as a trend having to downgrade. >> i asked that and she said this is what companies do. they lower expectations. we'll figure out if it was wrong later. time for to check in with sue

is judge warden him he might be sentenced for selling iz country out. the white house had this reaction the delay is something between general flynn and courts that's something to and we'll continue to focus on what we do here every day the victims were working outside taking down the platform when the collapse happened. anchts japanese company developed a robot. it will come when called and ask for a hug. wlechb you rub it on the head it closes its eyes and goes to sleep. if only it was that easy with children they plan to sell them for

$3,100 starting next fall. >> it's kieptd of freaky >> yes >> you put its head and it goes to sleep if someone gives you one pet its head a lot >> you bet are buy the last minute online holiday gifts now. details on the deadline for ground shipping. >> and tilray with a medical marijuana partnership. details coming up. [leaf blower]

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fnchts you haven't finished your online shopping. >> pay attention to the calendar it is pretty much your chance for grand shipping at many of the nation's retailers this is one of 20 fulfillment centers like this.

they expect 315,000 orders will be shipped throughout the net work today 1.7 million orders and then 7 million for thor into month of september to give us a look at how things might be going so far they stand 3 million for cnbc for some of the brands that they help fulfill bath and body works up 49% zales up 41%

dick's up 28%. levy's are down 8%. back to you guys >> didn't most of us waste mone on express shipping? >> a lot of people do that retailers don't necessarily make a lot of money off of express shipping in all cases because it is really expensive.

we know sha see sales spike. that is important. super saturday so you flow the mall will be busy. we have more headlines out of fed ex. >> that's right. we talked about how they were lowering it going forward. it is the mitigate belowed planned performance. it is because of the fact that they are reducing guidance some include a voluntary buy out program. they are going to reduce discretionary spending finally this is the interesting one. the company is taking a charge for the voluntary buyout program

for u.s. based employees it should happen mostly in the fourth quarter of 2019 remember, they said the u.s. economy is strong and the weakness was in the international. back to you. >> thank you >> mike with the shares down >> yeah. obviously they are not thinking it is a temporary think. it's not just a kind of a fleeting impact. >> they try to preserve margins by doing these big cuts. >> it's interesting as well. this has helped weigh on the pullback we have seen in some of the broader indexes. there was also commentary that it was more of than a u.s. factor if it is weighing on all domestic stocks.

>> coming up we'll discuss how democrats could impact the housing market details coming up.

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they will work to supply medical cannabis products as well on certain existing products shares of tilray are up 240% this year. that was an error. this is interesting. >> it is interesting it is being treated like any other bio tech, any other kind of compound. the market loves it. >> adds legitimacy >> i think the companies are try to go convey that this is a compounds like any other. >> all of the above. >> right next up shares finishing low after the u.s. attorney generals

office reached a settlement with the company it will be set aside as direct restitution for charters more than 700,000 down only 1% ultimately but a big settlement some of them take a hard line. it threaten today block this at some point people thought there was actually a chance that new york state regulators could do and shares of blue a pron falling below a dollar more than 90% below $10.

that was in june of 2017 well played to those that got away that were successfully priced. >> they could capitalize on the product category it is less than $200 million market value >> he said it was a company that would get bought out he picked it in the power lunch. >> yeah. >> i think people had it right a lot of customer churn and very expensive to get new customers

>> that is down 90%. >> democrats planning to possibly eliminate state and local tax deductions, how it could impact the housing market ahead. wall street's biggest bull just changed his tune on the market he'll explain what got him so worried. the home builder etf

climbing higher on november housing starts. >> but that could be hidden risks in the data.

diana olick breaks down the number and ylan muy could have a factor that kwo jump start it. >> they moved higher on hopes of interest rates coming down but housing starts took a dive in november. falling for the lowest pace in a year according to the u.s. screens us with the sentiment that home builders felt to the lowest level in three years the mousing starts jumped to 20% annually as home sales weaken further. now new home sales for november aren't out yet but one top analystist surveying 200 builders says the writing on the wall. >> i definitely think we are in correction sales according to us -- our survey were down 19% year over year, that's off a tough comp. i call that a correction. >> now sales were high last year because mortgage rates were low,

a full percentage points lower than today home prices still high, although gains are shrinking while builders are cutting prices any can't cut much especially because they lebron jamesly build in the move up market and not entry level. back to you guys. >> diana, stay with us because we wanted to get your take on ylan's story one boost to the housing market could be coming next year. ylan joins us with the democrats details. >> the salt cap has been extremely unpopular in blue states, a provision that limits income deductions to $10,000 for property taxes some states are clammed slammed. california, new york, new jersey you know that very well. high-tax states but places where democrats picked up a lot of seats during the mid-terms in part driven by the discontent over the caps. democrats want to make sure to address that in the new congress the lawmaker leading the charge,

is bill pascrell of new jersey he told us he is working on legislation now he plans to introduce in the new year. in a statement he told us this law targets middle class citizens in my state, stealing state and local tax deductions to pay off corporate executives. we must make the tax code work for all americans and stop targeting blue states. now, the big problem is that capping the deduction is a huge money maker for the government estimated to raise $829 billion over the next decade guys, democrats have blamed republicans for blowing a hole in the deficit with their tax plan not sure how they are justifying finding a way to pay for their proposal. >> that could be a tough sell blowing a bill hole in the dechz as a result of the tax cuts. diana, how much impact does salt have on housing markets particularly in new york, new jersey, california anecdotally we hear a lot about it around here. >> you hear it from anyone you

talk to in new york and california look, we have seen sales in both the bay area and in southern california fall for the lowest pace in more than seven years. if you look at new york city, manhattan specifically where salt really has impact you see sales slow and prices come down dramatically, especially on the luxury end where they are hit hardest down over 10% i was just talking to somebody last week mo said they have a gorgeous apartment on the upper east side and don't want to sell because they are afford it's getting worse when people file taxes and realize how much the change hurts them. >> okay, guys we leave it there. thank you both very much i'm sure there will be people content in new york city if that change happened. but it doesn't look like. >> all of us. >> we will see a market rallying ahead of the fed interest rate decision so big we have a countdown clock up already

21, 4 minutes 22 seconds to go 21, 4 minutes 22 seconds to go we'll chec ♪ at pgim, our bottom-up approach uses a technology lens to identify long-term winners. from energy... to real estate... to retail. next and around the world, you have a partner in that pursuit. pgim: the global investment management businesses of prudential. the global investment management ignition sequence starts. 10... 9... guidance is internal. 6... 5... 4... 3... 2... 1... ♪

and everyone i've ever opioloved away from me.thing everything. i blew my ankle out and i got prescribed pain pills by my doctor. if making my detox public is gonna help somebody i'm all for it. i just wish i would've had a warning.

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. fidelity. open an account today. >> announcer: fed chair powell faces the biggest test yet will he follow through on the forecast to hike powell's first reaction on tomorrow on power lunch. welcome back let's check in on the headlines making moves after hours fedex shares under pressure after the shipping giant cut its

2019 earnings outlook because of weakness, particularly in europe down 6%. dragged the market lower dragged ups lower. shares of jabil up after strong guidance up 11% and microen warning of weaker demand for memory chips through the first half of next year. down 7.8%. fedex and microen showing how the bad news pounced on the stocks. >> both stoikle companies with both with the stocks down huge 30 to 50% going into the numbers. and both revising lower the expectations if the question now is has the market gone down enough to account for a likely softening of earnings growth, you can't generalize from these two. but right now the market isn't loving the trend. >> the tape is so bad. >> it is very ugly tape very treacherous why it's going into fed day

tomorrow such a depressed day so far down that if it can't rally off of what comes out of the fed you have to pay is by passed another decent excuse as cattle zblieft what is the market seeing >> that's the very question. >> with five seconds left. >> i leave everyone to ponder it all night. >> and the "fast money" guys answer it for us. >> that does it for "closing bell." >> "fast money" begins right now. >> "fast money" starts right now. live from the nasdaq market site over looking times square. melissa lee. traders are tim seymour. brian kelly absteve grasso and guy adami. two big names reporting earnings microen and fedex both getting crushed after hours. the conference calls getting under way. we bring you the details and the biggest bull on wall street just backed down slashing the 2009 price target. what changed to make this bull run scared he joins us. we start with another wild day for markets. dow initially rallying 300 but snapping back from the