"power lunch." melissa? >> see you in just a minute. i'm melissa lee. easter what here's what's new at 2:00. the powell plan. did he make the case and plus, special series investing for a lifetime do you need to be thrifty at 60? a check of the markets right now. stocks, they are struggling after the back of fed chair powell speech on the four day winning streak s&p down by 2 and "power lunch" starts right now welcome to "power lunch. i'm tyler mathisen we begin this hour with powell's plan for the american economy. the fed chair speaking just a short time ago saying the fed is in a place where it can be patient, but are his comments enough to calm the markets steve liesman is here with all the highlights hi, steve. >> fed chair jerome powell stirring the market with comments on the fed.

he said the fed is in no hurry to raise interest rates, they can be flexible and patient because of low inflation he expects momentum from 2018 to carry over to 2019 the biggest concern with global trade and extensions and extended government shutdown >> several factors were in play at the time including somewhat soft bond and the sweet from the president would not go going to the world economic forum saying the balance sheet would be substantially smaller than it is now >> we wanted to have the balance sheet returned to a more normal level, a level no larger than it needs to be to conduct monetary policy don't know the exact level that will depend on the public's appetite for our liabilities, specifically, currency to us, that's a liability and the public has a large appetite for currency and also, reserves and other liabilities.

so it will be substantially smaller than it is now >> the average market expectation is for the balance sheet to fall $3.5 trillion from the current level of $4 trillion peter says we now have to wait until the next press conference to ask chairman powell what substantially smaller means. >> there's also a lot of talk at the beginning of the commentary, steve, that the economy remained very, very strong. he sounded a little bit more hawkish than dovish compared with the balance sheet and you think he appeared more hawkish than even his last appearance last week. >> i think that is sort of ingrained. let me show you the circle aye drawn here here's what happened to fed policy this is what i talked about yesterday, but i didn't have a nice graphic to go with it everybody was in the neutral circle everybody is in the wait and see circle but they're on different sides of it. so you've got guys like evans and rosengren.

my forecast for a good economy will end uprig right and saying, the next move may be to cut and then i got powell and williams kind of in the middle there but i think your comments of what he said today may move him over towards that, i'm a rate riser here because i think the economy is going to be strong i don't know, you know the market better than i do, but if you got better economic growth than the market forecast and a rate hike to go along with that, i think the market should be okay with it. >> better economic forecast. >> better economic growth than the market seems to be forecasting right now. i would take better growth at another quarter point, lesser growth and no rate hikes. >> we'll see what earnings season brings. that's what i would say. all right. >> let's bring in vince rinehart cio of richard bernstein advisers and cnbc contributor. richard, let me begin with you i sassume you heard the powell

interview withubensteinrubenste. i heard a couple of things a couple of times. we're going to watch patiently and carefully. we'll be patient and flexible. the word patient, the word flexible kept occurring there, richard. that suggests to me that two rate hikes is not written in stone for next year, or this year >> right i think, tyler, even in the one you left out that steve liesman just mentioned, they're going to decrease the size of the balance sheet based on the appetite for their liabilities. that's the exact same thing. very measured, very careful. i just don't think this is quite as unusual as most people think. this is kind of a normal dilemma for the federal reserve. do they raise rates, do they not raise rates? what's the stance of monetary policy in the late cycle environment? we look back in history and it looks so obvious why didn't they do it?

i think the deliberations and terminology he's using is well with the late cycle environment. >> vince, there's a couple of things that occur to me. he said today that he wanted the balance sheet to move toward a more normal level, which i think he stipulated would be smaller than it is now but larger than it was at the beginning of quantitative easing. a more normal level and the fed seems to be on the quest for a, quote, neutral interest rate these are hard to define terms what's normal? what's neutral >> which basically means if they'll keep doing what they're doing until they stop and they'll hope they'll be right, with regard to the balance sheet, the important message was actually sent yesterday with the minutes. had a long discussion of policy renormalization and what they did say was that they were going to stop with the bigger balance sheet than their 2012 renormalization plan that was the real message,

rather than chair powell's nebulous ambiguous phrases of substantial. >> why wasn't that the message from the chairman today? i agree the minutes were kind of dovish and interesting when it came to the balance sheet. plus, i don't think the market and the fed are far off from where the end point is but potentially smaller, almost like he's not prepared to answer the question i guess critical as you can. >> well, i think what they have decided with regard to the balance sheet is they do not want to own mortgage backed securities they also don't want to do anything complicated in terms of changing the program or signaling that they are treating mbs in the runoff differently than treasury securities so what do you do? you keep with the cap. you wind up with a substantially smaller holdings of mbs but still a relatively big balance sheet. the interesting thing about the

minutes yesterday, they raised the possibility of actually buying securities in the secondary market as they were redeeming them in the primary market >> rich, did you hear anything in mr. powell's comments about either the u.s. economy or the chinese economy that stood out that alarmed you >> not really, tyler i think it was pretty much consensus point of view. i think it would be pretty hard to find somebody out there right now who says the chinese economy isn't slowing down i think it would be hard to find somebody right now that says the u.s. economy is healthy but uncertain. i think that's basically what he said but the important thing when people listen to the fed chairman and look at fed forecasts, it's not what's the forecast i think that's fruitless exercise what you have to do is compare what they're saying to what most economists are saying and i think right now, they're squarely in the scoconsensus. >> thank you, we appreciate it

>> thank you and new at 2:00, our elan moi is getting out of the meeting with mike pence. >> he's been meeting with republican lawmakers trying to bolster support for the president's shutdown strategy. he sat down with a small group of us and said the president still has not made any decision about whether to call a national emergency in order to build a border wall. still remains a possibility but said that the president wants to work through congress and ensure that congress does its job and tried to reframe the sort of character of the negotiations so far. he said that before christmas, there had been some progress in the talks with democrats the democrats had called a steel barrier a, quote, constructive pathway but could have been an option to avoiding a government shutdown but once again, the vice president saying that democrats have since refused to negotiate. there was no counteroffer to the

administration's request he also said that $5.7 billion for the wall is the quote, right apt, so previously, there had been talks about perhaps a lower number for the wall, a lower number for border security and the vice president saying now that president trump wants to do a comprehensive plan they want full reform in resources needed to ensure that there is security at the border. about that contentious meeting yesterday at the white house between president trump and democratic leadership, the vice president said he spoke to chuck schumer and nancy pelosi after the president left the meeting and he said, come back to us and make us an offer so once again, trying to frame this as democrats, being the one who walked away as opposed to the president. one thing, i asked about the warnings from ratings agencies, if the shutdown is prolonged, there could be damage to the debt ceiling negotiations and to

america's credit ratings the economy is still roaring and the president's first priority is to protect american security. back to you, kelly. >> day 20 and the shutdown goes on thank you very much. elon moi rick santelli is tracking at cnbc what was demand like >> roughly average if i was handicapping versus chairman powell so close, i would have given a c or c minus. positive actions though. i was impressed with the direct bitters but i see the volatility in the marketplace that necessarily, the three 30 year n but let's look at the charts as opposed to the closing points and you'll see two year deals have started to move higher but not at their ayest level up one currently, the highest yield of the day let's go to 30 year. what's interesting here is that

up four basis points so steepening going on and the highest interday level for all 30 year bonds and the reason for that is calmness in the equity markets but even more so, a lot of data and the data we get isn't so bad out of china and europe is weaker so just on a relative basis, one of the big things is comparing our growth to the global growth and finally, the dollar index. it did make the lowest print interday of the year but it's had a nice reversal and some of the stability in the dollar could be directly attributed to powell's comments. i thought he did a spectacular job today. sometimes you don't know the answer, you try to be honest as you can and i like the fact he pointed out from a currency perspective, the balance sheet of the fed needs to be bigger than it was before the crisis when it was $700 billion kelly, back to you >> rick, so you give him an a plus wow. >> i would give him an a i thought he did good as job as

a human could do in a no win situation. >> thank you dominic chu with a market flash on the retail wreck today. >> it's probably the biggest storyline of the day in markets. those retail stocks hammered on the back of some dismal holiday sales results, specifically coming from one macy's in particular the etf that tracks those nameles, the etf, down about 2%. far and away the worst performer. america's biggest department store chain macy's on pace for worst day ever 18% after posting weaker results for the holiday season than some analysts were looking for. target and kohl's under pressure from a halo effect on that number from macy's those stocks mow you can see between 3% and 6%. l. brands, kohl's, the biggest in the s&p >> thank you the markets are rebounding a little bit right now the dow is looking for the fifth straight up day but with earnings season on the horizon,

is the threat to the boxing day bounce out there what investors should be watching for and nothing goes better together in baseball than software, right? millions on naming rights. ceo mark hurd joining us with the san francisco giants ceo "power lunch" will be right back i'm ken jacobus and i switched to the spark cash card from capital one. i earn unlimited 2% cash back on everything i buy. and last year, i earned $36,000 in cash back. which i used to offer health insurance to my employees. what's in your wallet? it's not there's it's mine, mine, mine. and it always will be forever and ever. the rx 350l with 3 rows for up to 7 passengers. experience amazing at your lexus dealer. at&t provides edge-to-edge intelligence, covering virtually every part of your finance business. and so if someone tries to breach your firewall in london & you start to panic... don't.

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welcome back to "power lunch" everybody stocks are higher again trying for a fifth straight day of gains. dow is up 63 right now and the next big test for the rally is next week as earnings season kicks off. look at this calendar. the banks of the airlines starting us off on tuesday and netflix reporting on thursday. wall street, looking beyond results show for the guidance in particular, bob pisani with more >> a lot changed in the last three months october 1st, we were 3,000 on the s&p 500 and we were expecting 10% earnings growth. that's changed a lot in that time period. all the way down to 2350 earnings are more realistic. now down today it's been dropping the last several days 6.4% i anticipate that will get close to 5%. essentially cut in half. that's where a lot of estimates are now sitting around 5%. so if you're at 0%, think the

market is dead in the water this year, you think it's 5%, you're going to have probably 3,000 on the s&p 500. another thing that's more normal, investor sentiment 43% bullish and then 29% bearish. 50% were bearish the market is a lot calmer now and sentiment seems a lot calmer back to you. >> bob, thank you. following high profile earnings recently including apple consolation and investors without a doubt keeping an eye on this season in particular the sea of gal capital and leading with more than $225 billion in capital under management capital altmann with a high correlation with the s&p 500 as well as gdp. thank you so much for joining us. >> great to be here, melissa. >> in terms of what you have been seeing, when you read the lines with the tearnings pronouncements, it seems like a

light switch was flipped at the beginning of december where demand dramatically went down, whether it was fedex's pronouncement. >> we're seeing something completely different u.s. companies selling gods aodn services is booming. 13% profit growth based on actual results for october and november fourth quarter this year, over fourth quarter last year i think we see a bifurcation in international versus u.s. performance. fedex, apple both disappointing on international operations. i think we see a very strong u.s. economy and i think the u.s. operations are also going to report very, very strong. >> are you noticing the companies you do business with, are they extending capital spending plans, feeling confident enough about the economy where they are spending money themselves >> absolutely. capital expenditure plans are staying on track with where they've been and a strong trend

since the jobs act got past and we don't see change there. i think we see some reductions in the energy sector and not very active but in the non-commodity u.s. centered businesses, hiring is strong capital expenditures are strong. the shortages having trouble filling open positions. >> when you sit back and look at the indices and how they're performing, do you think the markets are just completely overreacting to a few high profile earnings warnings? >> it seems that way and i think if you tie that together with the comments about jake powell and interest rates, it's confusing because really the only circumstance that justifies no increases in rates is bad economic news. steve liesman hit it right on the head at the top of the hour. he'd rather see stronger u.s. economic results and a rate increase or two and i think that's what we're getting. that's what our datashows is likely coming down the road. >> companies are preparing for

the likelihood that rates will be rising. >> they're preparing someone everyone is lulled in ten years of complacency interest rates zero in an economy that's doing very, very well i think the general market concern about the fed raising rate and short-term rates going up is interesting in and of itself 2.2% core inflation and 2.5% fed funds rate, that's low, not high by historical standards. up next, the new information that has the potential to make jeff bezos' divorce an issue for amazon and shareholders. plus airline stocks tumbling today. does that make now a good time "power lunch" will be right back the lexus nx, experience the crossover in its most visionary form. experience amazing at your lexus dealer.

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it seemed to be unimportant to amazon shares but the stock down today under a little pressure after the national enquirer showed him on repeated occasions with another woman while married. amazon and bezos declining additional comment today under washington state law which is a community property state, mckenzie would be entitled to about half of bezos' 16% in amazon, $130 billion it's unclear if the couple has already worked out their divorce agreement or it still needs to be negotiated but any settlement, especially if it becomes contentious could likely involve a sale or transfer of shares and could affect bezos as the largest shareholder. until we know if they've settled an agreement, the fate of the 800 million shares of amazon stock remains unclear. >> will we ever know >> we may not. lawyers say this is likely done in private, but given that the

situation of their divorce appears to be a little bit more complex, there is always the threat by her of making things public unless she gets what she wantsso the degree of it becoming public will depend probably on whether she gets what she wants. >> thank you robert frank airline stocks getting whacked. mike santoli with that. >> american airlines after slashing the outlook adding to the pain, seen in the last few months. is there more turbulence ahead we're joined by matt and mark. strategic wealth partners to talk about that a bit. matt, it's an ugly picture when you look at the airlines in america. i note there's they're up significantly from the morning lows i don't know if that means anything technically to you. >> i think it does one thing we need to know is this is another example of one old rule on wall street that never really worked that airline stocks go in the exact opposite

direction of fuel prices or oil prices if you look at american air and crude oil, spent many months in the same direction and the opposite direction don't look at oil prices when it comes to airlines in general but anyway, for american airlines, the chart, it's funny, when the stock made a low in october along with the rest of the market, however, in december when the rest of the market was making a lower low, american airlines held the low at $30 making a nice double bottom and today's lowest level in the morning, it did not break below that level it's a little glimmer of hope. series of lower highs and lows for a full year now. so it's a very risky call right here but a glimmer of hope if the stock can rally strongly anytime in the near future, be able to see some light on this it's a risky play right now. >> mark, how about you see any value here assuming the economy does not really roll

over at this point s. >> this is about the top line low jet fuel prices really limit the airline's ability to raise their fares, so that's limiting top line revenue growth and the airlines need to focus on growth from two different areas the revenue per available seat mile but also additional aircraft and the problem is here all the airlines are handcuffed when it comes to increasing fares. people think low jet fuel helps the airlines but oddly enough, it hurts them because intense market competition forces them to give that money right back to the consumer essentially in realtime. so at the same point in time, it doesn't help margins at all and beyond that, labor expenses are going up and then more strain on margins. i'd be staying away from the airline industry in general. if i had to pick one, i'd pick american airlines because they probably do have the best fleet

>> the story was this is a more disciplined industry and lower capacity thank you for your time today. for more trading nation, head to our web site or follow us on twitter at tradingnation melissa, back to you ahead on "power lunch," retail getting wrecked macy's, target and kohl's. if you're in your 60s and about to retire, you need to watch the san francisco giants with a new stadium name, oracle park. we sit down with the ceos of oracle all this when "power lunch" returns. >> the latest from tradingnation.cnbc.com and a word from our sponsor.

hello, everyone. i'm sue herera here's your cnbc news update at this hour. senate majority leader mitch mcconnell calling democrats' unwillingness to fund a

quarterbaborder wall the height of hypocrisy and needs to take their responsibility more seriously. >> democrats say the same fences that were a-okay, a-okay when president obama was in the white house are now immoral. immoral. because president trump is the one making the request >> jaguar land rover said it will cut 4500 jobs as it addresses slowing demand in kmooin a china and growing uncertainty about brexit starbucks is planning to install needle disposal boxes in select locations after employees reported finding uncapped needles and discarded syringes in the bathrooms more than 3700 signed a petition asking for the disposal boxes. you're up to date. that's the news at this hour

back sue, thank you very much shares of macy's, tanking almost 19% and on pace for the worst day ever, ever, after reporting underwhelming holiday sales and slashing the 2019 forecast macy's not the only one. target, nordstrom, l brands, kohl's also sliding. courtney reagan is at a macy's in indianapolis looking into the retail wreck courtney >> reporter: macy's reported holiday sales growth of over 1% with double digit online growth, ceo jeff ganet said while it was strong through the black friday weekend, it weakened and did not pick up strength until right before christmas the retailer did have to lower the forecast for earnings, sales and its margins. so after four straight quarters

of seeing store sales growth, investors wonder if that trend might be over. look at kohl's also reporting holiday salesmac% unlike macy's. look at target, the strongest of the group so far sales up 5.7% on strong traffic. 29% growth online and believe it or not, the stores are part of the digital strategy because three quarters of everything online was somehow fulfilled by a store during the holiday season still shares of target taking a hit and macy's dragging down the whole group. >> stick around for what's ahead. liz dunn joins us. founder and ceo of pro form a. what are you thinking about the stock prices anyone overly getting creamed?

>> i think that macy's numbers certainly deserve to be punished in the market but i think many others are the overreaction. the expectations were lofty for names like target and kohl's and i think they performed i mean, investors are concerned that the earnings flow through isn't what they wanted to see but i think the sales numbers are actually quite strong. the consumer is in good shape and, you know, there are some real losers, macy's being one of them, but for the most part, the results look pretty decent. >> what is going on with the shopping malls i was reminded by that bizarre starbucks story, a couple of years ago, they flagged the issue of declining mall traffic, other avenues for growth if it's true that the, first of all, would you away from that the mall is in a state of decline but not enough malls have been refurbished for today's shopper or what's going on >> i think it's both the malls have not been refurbished or imagined for

today's shoppers with an exception. obviously, the a malls are quite good but many malls haven't been touched and haven't been reimagined and therefore, traffic is declining i did an analysis the other day looking at macy's stock price and other retailers. over the long-term, all of the mall based retailers are sort of correlated with macy's and off the mall have an opposite correlation with macy's. and macy's doing poorly and mall based retailers are doing poorly. >> the preannouncement is that macy's is losing and took down estimates dramatically and amazon on the fourth quarter it seems like nobody is winning this race to the bottom. macy's said gross margins were pressured by shipping costs. it's loike they conditioned a whole class of shoppers on free shipping >> we've been wondering for a long time, what is the appropriate balance between the

percentage of sales that come online and the percentage that come from the store and the second question is, at what level of profitability so i think now investors are finally saying, okay retailers, we gave you a chance to grab your market share and the sales and try to compete with amazon we have given you enough time. now you need to make money from doing so strong sales online are no longer enough. you've got to do that profitably >> is anyone able to make the kind of sustained investment necessary to pull off this move to online and include free shipping >> it's margin diluted for everyone it's not going to result in, you know, neutral margins but i think that what we will see as a shaking out, i think there's a land grab happening right now and very important for retailers to grow their business online to defend against amazon and then hopefully, we'll start to see some margin stabilization but i

think the scaleability of retail models fundamentally changed for the long-term because you just don't have as much scaleability in the pnl with digital fulfillment. >> retail is obviously a very segmented business overall i guess the short way to ask this question is how much of macy's problems are macy's and macy's alone and how much are transferable to other stores like macy's as opposed to stores that are unlike macy's that may be doing better? >> i think looking at macy's versus kohl's is a good example because kohl's has reimagined its offer. they brought in some new merchandise categories and, you know, changed around the stores and stores look great. they're accepting amazon returns and doing a lot of untraditional things and i think that's working for them although, comped strong from last year and raised guidance to the high end of the range. so i think it's a different

story there. i do think that the department store model is a little bit challenged and people are just, you know, shopping is distributed. we're shopping everywhere. looking at brands that are very broad and our influences are broad. we're no longer going to the department store as the arbiter of what's cool but there are things self-inflicted with macy's. >> thank you both. liz dunn and then the tough state of retail today. >> thanks for having me. up next, our special series. investing for a lifetime we focus on people in their 60s. the final moves you need to make or the mistakes you need to avoid before retirement. that's nec on "power lunch." i'm ken jacobus and i switched to the spark cash card from capital one. i earn unlimited 2% cash back on everything i buy. and last year, i earned $36,000 in cash back. which i used to offer health insurance to my employees. what's in your wallet?

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♪ ♪ (buzzing) gather new insights, leave your data protected on-site, and put it all to work with ai. the ibm cloud. the cloud for smarter business. time for our special series, investing for a lifetime today, we hit the swinging 60s i'm in my 60s. how about that tdd or tmi here with the best retirement tips is ivory johnson founder of

the lansing wealth management. for most people in their 60s as i am, part of it is working with a professional or on your own, doing a portfolio check to make sure you are where you want to be in terms of your asset allocation but let me cut to a question that seems important. i've become eligible for my social security, depending on your age, age 66 should i wait long as possible >> that's a function of where you are. some people can't afford not to take their social security, so obviously, that's a choice that's been made for them but to the extent that you can wait, you get an 8% increase every time you delay it. so if you can wait until you're 70 and you're in good health, probably to your advantage. >> post-age 50, you can contribute more, can't you, to a 401(k) program than you can before age 50. so for someone in their 50u6

sti 60s, you can go above the normal maximum contribution and you should >> i think you should. in your 401 k and that goes into your financial planning. reevaluate your priorities you've got the current lifestyle, your lifestyle, once you retire and then the age in which you retire you may have in the past wanted to retire at a certain age and the job has become stressful reevaluate that. take a part-time job that pays less and then work a little bit longer and make sure that's coordinated with the overall plan and review your debt. what's your health condition look like and then time to make changes while i still have the time >> let's talk about something nobody likes to talk about, that's the estate plan. >> estate planning is giving what you want to who you want the way you want when you want with the least amount of expense as possible. take me, for example

a 21-year-old son in college very responsible kid but if he were to inherit my estate right now, his porsche would be red and it would be shiny. i have to determine, how do i give him the money all up front what about my living will? my health care power of attorney in the event i become incapacitat incapacitated. it's also, what happens if i get sick when i'm still alive? >> let's talk a little bit about some of the retirement savings options that are available to people who have self-employment income they are different they are sometimes more generous than those who are working for a salary just a quick hit on those. let's say i leave my full-time job and start my own little sideline business? >> that's going to be determined by how many employees you have remember, if you're self-employed and you want to do a separate account, ira with the cape you can put up with over $56,000 or 20% of your income,

there's also the 401 k with the profit sharing as well as the defined contributions so you can put more in your 401(k) and you have options beyond just to qualify plans. that's a qualified plan and also not qualified plans which means you don't have to worry about the discrimination policy and life insurance policies and go above and beyond what the irs allows you to do with the 44c regulations. >> it depends on your pension situation, how much money you've got set away there is a rule of thumb that once you're in retirement, you could or should comfortably be able to withdraw 4% of your corpus per year. do you subscribe to that >> the secret of distributions if you take out 4% of a portfolio, you have a 20% chance of running out of money within 30 years if you take out 5%, a 35% chance of running out why? if you start taking money of

your portfolio in the beginning of 2007, you're withdrawing as the market is going down but you wonder, what's the fuss because you're just drawing from your earnings. when you start taking money out, a lot of money out when you first retire, you're reducing those odds it's the same thing as starting your retirement when the market is going down and a lot of times what happens is people retire and get excited, and they start taking money out of their accounts in large swaths and it mitigates their ability to maintain the same quality of life. >> great to see you. ivory johnson. shares of oracle are basically flat over the last year it doesn't sound great but better than the overall market an aggressive buyback program? share down slightly today. next, we'll talk to oracle's ceo mark hurd about new dealit the san francisco giants when "power lunch" comes right back are you guys good with brakes? we're ok.

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. oracle and the san francisco giants hoping for a home run it was just announced today that the stadium will be called oracle park. the warriors are moving to the brand new chase center next

season joining us from oracle park, mark hurd, the ceo of oracle and larry baer, the ceo and president of the san francisco giants thanks for joining plun"power lunch" i want to ask a couple questions of business first. it seems that the announcements we've been getting recently indicate that a switch was flipped in the middle of december people weren't spending, corporations weren't mailing packages, et cetera. what are you seeing? >> well, melissa, when we gave our results which we did in mid-december, we forecasted accelerating growth. we stand by that and so we see a robust u.s., as we mentioned in our call, pretty stable around the rest of the world. there's a good investment environment for projects that make sense and so we continue to be very optimistic about our business as you know, we're going through

a transition to the cloud. that's gone very well for us we're gaining market share and we continue to believe we'll see accelerating growth as we go forward. >> accelerating eps growth i'm presuming you're talking about, mark, is that correct? >> certainly accelerated eps you've seen double digit eps growth from oracle over the past six to eight quarters to our eps growth has been substantive and consistent what i was actually talking about was accelerated revenue growth in rq 3 and q4 in the next two quarters. >> some analysts are saying that on conference calls, mark, management is extremely upbeat and positive in tone but investigators are growing frustrated with the decelerating revenue growth trend at the same time when you're emphasizing accelerating eps growth, when you're buying back tremendous amounts of stock, shrinking the share count out there and

improving earnings so what do you say to them for instance, they're saying investigators are getting impatient with this. >> well, again, i can't comment to each individual analyst and what their point is. again, i'll stand by what i've said we've had accelerating double digit earnings growth but what i just said and what we said in our call was accelerated revenue growth so i stand by that and as you know, i think you know, in our company, we have things that are declining and things that are growing. our cloud business is growing substantively, much faster than the company's growth rate. so as those businesses that we have stop their decline as we exit them, it becomes really much easier for us to grow our revenue growth rate. these transitions take time but within it if you start to look at the market share, we're gaining within the context of our applications business and our data business. we feel great about the company and its future.

>> one last question on the business, mark, if i might you ably pointed out the transition to the cloud. that's one area of competition where you've got formidable competition. in the applications business, tell me about that as you compete against work day, as you compete against sales force and others how much share are you gaining there? >> pretty substantive. so if you look at the applications market it's about $125 billion as that market moves from the traditional to what we call software as a service, the cloud, that market grows substantively because the business does more, the service infrastructure, storage infrastructure, data centers et cetera so that market grows if you look at the back office of applications, it's about two-thirds of that overall market and when you look at what we're doing in a category called erp which is basically back office and hr, we're just growing faster than anybody else in the marketplace

so we are very excited about our position in applications like we are in database, but to your point in applications, this market is going to go through a complete renaissance over the next several years and oracle is going to be the leader of it. >> and spending a little cash on the stadium too. larry baer, let me bring you in. there is a big multiple dollar stadium coming do you feel the need to compete with that? how are you going to upyour game for fans? >> i mean, we're really excited. this is a 20-year partnership with oracle. the way we look at it is, look, we are in silicon valley within a 30, 40-minute drive from here there are companies changing the world. one of those companies is oracle and we're partnered with them for the foreseeable future we've had 20 years of this ballpark and world series championships and had a national league sellout streak so it's been a great history and we couldn't find a better partner to take us into the next two decades than mark and the

folks at oracle. they've been a long-time sponsor and we made a quick deal for 20 years. >> the fog there makes it look like candlestick today, larry. you know, i will just say this -- >> there's a little fog here tony bennett would like it here today. >> you bet he would. i would merely point out, mark and larry, that oracle arena has been the home of three of the last four nba championships. i am sure that that is going to transfer immediately to the san francisco giants, right? >> hold on a second. hold on a second giants have world series championships in 2010, 12 and 14 i have a one dollar bet handshake with joe, the owner of the warriors who's going to get number four first. we're at three, they're at threthre three. we'll get number four. >> by the way, this is an iconic franchise. larry and his team are great, as are the warriors it's such a great opportunity

for two local teams, organizations, to if you will partner together this is a great group to deal with we could never have put a deal together the way larry talked about it being fast but it was fast and thoughtful because the depth and the trust in our relationships have gone on for years. a great group for us towork with. >> as you know, oracle is not a newcomer to silicon valley they've been here a long time and we value the relationship. mark at the press event was sitting next to -- talk about tradition and icons -- willie ma mays >> thank you both. check please is next ics say is number one in the nation? sure, they probably know what they're talking about. or the one that j.d. power says is highest in network quality by people who use it every day? this is a tough one. well, not really, because verizon won both. so you don't even have to choose. why didn't you just lead with that? it's like a fun thing. (vo) chosen by experts. chosen by you. get six months apple music on us. it's the unlimited plan you need

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that does itfor us thanks for watching. >> "closing bell" starts right now. ♪ good afternoon and welcome to the "closing bell." i'm saraizen. >> i'm will frost. we'll talk with adviser ceo jerry storch. >> fed chair jay powell says he doesn't see any evidence of a slowdown we're going to talk to the former fed number two, vice chair don cohn and find out if he agrees. >> the dow today, you can see it pulled bac