technology >> i noticed they said, look, the public foot traffic is still good and so there is still interest in these cars, phil and maybe they'll have to go out to vegas for better weather too thank you so much. phil joining us, moving. that's it for "the exchange. i'll join tyler and melissa on "power lunch" which begins right now. >> welcome to "power lunch." i'm melissa lee. new at 2:00. is this market running out of steam? we have the $2 trillion call much of retail in a downward facing dog position but not lululem lululemon, in the meantime that's on fair why the divorce filing could be bad for amazon and investors "power lunch" starts right now >> good day, i'm tyler mathisen. welcome to "power lunch. stocks well, they're under pressure as you see right there but we are well off the session lows earlier this morning the dow was down 230 points

early on if stocks do end in the red today, this would be the first time this year so far that the dow, the s&p and nasdaq will have had back-to-back losses financials, the best performing sector this hour we have more on that one ahead but four fear factors are driving the market right now earnings is a big one. bob pisani is all over that and the longest ever government shutdown the trade war is beginning to bite china's economy the latest numbers there and who else but steve liesman on the fed and new global growth forecast let's begin with bob at the nyse hi, bob. >> important thing, tyler, reporting fourth quarter earnings but that's not what the street is concentrating on so look here, october 1st, we were expecting 10% earnings for

all of 2019 for the s&p 500. today, that's down to 6.3% down steadily in the last three months and people at 5 and a small group of people at zero and that's the question. is it going to be zero or is it going to be 5% that determines your outlook for the year it's going to come down more than i think than the 6% and had 20 companies reporting fourth quarter earnings so far and 75% of them have seen their estimates for the first quarter cut. not the fourth quarter but the first quarter cut 6% average reduction. that's a lot more than normal and guys, that tells me there's more cuts to come, certainly for the first quarter. back to you. >> thank you, bob. bob o'bri bob pisani at the nyse the longest government shutdown in u.s. history seems no end in sight. ylan mui. >> the president discarded two potential and unpopular

solutions. a national emergency to build it without congressional approval but republicans couldn't agree on where to take the money from. second was an idea from lindsay graham to reopen for about three weeks, try to make a deal on immigration and border security, and then if they couldn't, then call the national emergency. but earlier today, trump said he wasn't a fan of the plan >> that was a suggestion that lindsey made, but i did reject it, yes. i'm not interested i want to get it solved. not just delay it. i want to get it solved. >> nbc news reporting the administration is preparing for the shutdown to potentially last into february. back over to you >> thank you very much ee ylan mui in washington. china's economy, the trade war is beginning to hit hard >> analysts expected a slowdown in the pace of growth, but that was a shot for the market.

chinese exports and imports falling sharply in the month of december holding up relatively well with chinese goods to beat that tariff increase. that's largely died down scaling back on purchases of u.s. goods ranging from soybeans, electronic goods and commodities. two drivers there, the ongoing trade war and other is china's economic slowdown. a growing if you remember of experts says a string of disappointing data will push u.s. measures but capital said the policy easing is unlikely to put a floor under the economy until the second of this year and said the government will need to be more aggressive than it has in the past to stabilize gdp growth beijing is set to unveil the economic growth figures next monday in the meantime, the trade data comes at a critical time in these negotiations the vice premier is set to come

to washington and then march 1st. >> maybe these declining numbers puts pressure on china to come to the table in a more forthright way. >> it certainly could. >> that would be the president's thought, i would guess, right? >> the growing consensus that beijing will have to be more aggressive, more conciliatory at the same time to get something done to save their economy. >> seema, thanks seema mody a new outlook on global growth could we have seen the last hike >> is the fed done janet yellen suggests that could be the case. the national retail federation annual conference quote, we may have seen the last interest rate hike of this cycle pause for applause, anybody? >> pause for dramatic effect >> dramatic effect quickly counters that statement saying it's possible they does another rate hike or two from here and nothing baked in but doubts the fed would go much above the 3% estimate of

neutral. yellen expects to remain low for quite a long time. upbeat about consumer but more cautious about the economy global growth is less synchronized with china slowing down and data mixed from europe. trade has increased uncertainty for business and meanwhile, the economic cooperation and development. the oecd, slow growth and momentum on average from 38 countries it monitors globally including china and u.s. and ninth group in a row the positive leading indicators have declined while the sixth month in a row for the u.s. but the level at a pretty high level, just below 100 99.6. >> what's the basis for her saying this is the last of the cycle? >> she thinks just about done. >> slowing economic growth >> slow economic growth and nearing that neutral mark. i think that's something the market missed. getting all hung up here two or three if they did two or three, that would have been the end.

to the point where they would have ended at a rate which is where they normally cut to in other cycles so however excited you might have gotten, they're going to 3 from 2.25. it's the charts at the bottom. >> 2.25, 2.5 >> 2.75. >> that's where we are now >> so one more rate hike up to 3. thank you, steve put it all together and find out where we go from here. liz young joins us senior investment strategist at biy mellon and then you're expecting stocks to carve out gains for this year and next so pretty constructive on where the stock market should be why has it been worried over the last month >> ending 2018, i think what was happening is the market was expecting a fed led recession. so everybody priced that in.

they got scared about the market going too far too fast and weakening fundamentals, whether it could stand on its own two feet we're seeing a benign environment from the economy and growth does slow but stays positive and reasonably healthy and the market is going to have to come to its senses about the fact we're not headed to armageddon territory >> the u.s. economy continues to grow from the 2 or 2.5% range. how about china or europe where there may be other internals >> it feels weird to say they're going to lead the pack but china is probably going to be 6%, maybe a little bit below 6% and i think for china, what's happening is the incentive for them to come to the table on trade talks is increasing as we go here. and what we would expect out of china is more stimulus from a monetary perspective we would expect them to let the currency depreciate slightly,

nothing drastic on the currency side but there's a lot of question marks out there brexit being the biggest one >> you favor financial staples as well as health care does that mean in the second half, you anticipate a different way in terms of sectors? >> check the crystal ball again. for the first half >> the first half, what we're going to see, the reason financials is on there number one, financials are still better capitalized than they were pre-crisis. so the balance sheets are healthy and if we're expecting a slowly steepening yield curve, that should help financials out. >> the big banks this week, more of a litmus test but the carve steepens and financials remember they lend on the long end and borrow on the short end, they'll help their margins a little bit. health care goes, good things there and still see some m&a activity coming and then health care with other sectors. >> about the financials, you could have said one year ago and it would have been a bad trade.

>> sure. >> so what makes you believe it's going to happen this time >> what makes me believe that is when you look at what's happening in the economy and the fact that when we started this segment about thinking that the economy still has a pretty good momentum with it, the markets will come to their senses and hopefully sell a little bit of that 10 year treasury, so the longest end of the curve the short end kept coming up because the long end didn't go anywhere and that put a lot of pressure on financials that was unexpected so if everybody calms down, some of the fear comes off the table in the first half, we should see selling on the longer end. the short end probably won't go anywhere because we're seeing a fed pause coming in march and probably one hike, two max this year if the short end stays where the it is and long end goes up, we finally get the margin spread. >> what sectors would be your phase and the ones you would leave behind >> in earnings season, staples is still a good place to be. we talk about risks as

economists and market strategists and one of the things we like to highlight is that there is a catalyst in the 2019 for positive growth aspect which is the u.s. consumer julia? >> that's right, melissa nbcuniversal announced a new direct to consumer streaming service launch in early 2020 the company said the service unlike netflix will be as supported and available at no cost to the pay tv and major international and come cast will provide the service to their 52 million subscribers. ad-free version of the new streaming service will be available for a fee and that if you're a cord cutter or don't pay for tv, you can also buy

this service for a fee this will include original programming as well as content from other partners. they also say nbcuniversal will continue to license content to other prlatforms while retaining rights to new titles for service and this of course as disney and at&t plan to launch their streaming services later this year back over to ou. >> does that mean we're going to be in it cnbc julia, come on >> you know what, i'm just wrapping my head around this now but presumably, it will be a really interesting assortment of content. it seems like it will be more entertainment focused. but since it's available to anyone who pays for tv, i wouldn't be surprised if cnbc was part of this as well and i want to know there, it will be run by bonnie hammer, so she has experience with more of the entertainment side of things. >> it's going to get more crowded as we said in the streaming field. julie, thank you citigroup feeling the financials today, the best

performing in the s&p and despite the revenue miss j.p. and goldman on the banks this earnings season and a tale of two stocks. shares of delta getting clipped ahead of earnings and lululemon isoang tay sriod what's next for these two stocks ♪ ♪hold on, i'm comin' ♪hold on, i'm comin' ♪hold on don't you worry,♪ ♪i'm comin' ♪here we come, hold on♪ ♪we're about to save you i'm comin', yeah♪ ♪hold on don't you worry,♪ ♪i'm comin'

i am a techie dad.n. i believe the best technology should feel effortless. like magic. at comcast, it's my job to develop, apps and tools that simplify your experience. my name is mike, i'm in product development at comcast. we're working to make things simple, easy and awesome. citigroup leaving financials higher today and rallying despite the revenue miss fixed income trading which hits

a 7 year low and the big banks gearing up to report this week and feeling that halo effect with their stocks higher today j.p. morgan, wells fargo, bank of america all included. the cnbc news line, stephan biggar great to have you with us. do you think that the result warranted a 3% to 4% surge in today's session? i mean, i ask that partly because the bes side, driven by a lower than expected tax rate and then the revenue miss. >> right i think it's a bit of relief rally. the performance wasn't worse but the revenues were weak we had kind of a terrible quarter for fixed income not too surprising, given the volatility and one of which we could characterize as a bad volatility, not a good volatility quarter for banks and the direction was largely one directional in the fourth quarter, straight down that was difficult for banks to make money and mostly, a risk off trade as well so when investors move into cash, the banks are not making money on

the other side of the transactions, so yeah, i think a bit of a relief rally wasn't worse. earnings did come out better than expected thanks to cost cutting. better on the credit quality side and of course, that tax rate, much lower and that's not going to be sustainable, obviously, into 2019 >> the tax rate according to some analysts accounted for 10 cents of that eps on the upside, stephan. when you see the rally in the other banks session, i'm wondering how transferable much of this citi effect has banks report their own earnings throughout the week. >> citi is unique. this quarter, obviously, they tend not to report first in the, among the large banks and i don't find them to be a particularly good bell weather either for the rest of the banks. they have a much larger exposure to emerging markets.

they can sometimes zig when the other banks zag and high on the tables and fourth in global m&a and fifth overall in investment banking. so not a particularly great lead, i would say, but having said that, they are second in global and capital markets you want to set up and take notice particularly on the debt capital issues >> whyis the stock moving up s powerfully today if what you say is the case and if they had, what was it, a 21% drop in fixed income revenue >> right i think it's just that earnings number that came out you would expect because of the leverage it came up weak on revenues, they had a much worse sort of position here on earnings this quarter and that just wasn't the case they were able to make it up essentially and that bodes well. i will say that some commentary on the call also may have

helped citi is definitely not seeing the type of slowdown that you hear a lot of in terms of market commentary today they're not seeing a slowdown in loan growth and not seeing still continued good credit quality and the market seems to be talking itself into this much broader and weaker slowdown than is actually being seen by bank managements right now. >> going back to what happened on the income side of the fourth quarter, i don't understand how they finally get volatility and it's bad for citigroup and bad for the other banks. do they lose market share? how can it be they finally get all of this volatility and their profits from that fall so much as a result? >> right well, again, it's this notion of good volatility versus bad so yeah, in this, it is just the way it transpired in the fourth quarter. they can make money when markets go up and down, but it's just difficult to make more money when it's solely almost in one direction.

that's number one and then you get liquidity that dries up as well during the quarter. you don't have easy partners on both sides of the transaction and so it's largely that effect and the risk off of folks moving into cash and you can get one sale but they're not moving it to some other asset cost >> all right, sten, thaphan, ths "power lunch." in the longest government shutdown in u.s. history and how it's impacting america's land, air and sea. lululemon on a bullish outlook the stock having the best year since 2012 the divorce's impact on amazon's shares, all this when "power lunch" returns in a minute with the chase ink business unlimited card, i get unlimited 1.5% cash back. it's so simple, i don't even have to think about it.

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welcome back the profit returns tomorrow. takes on ben's guard, a struggling retailer. in this clip, marcus is asking to rank by popularity, lending ben's inventory in high water.

>> the first think is the decoupage. these have exploded. paperweigh paperweights, for people who can't afford a tray. magnets. pillows and art work >> all three of these really don't do that well >> are these three poor selling categories the reason all of your cash is tied up in inventory >> yeah. >> six of them are great three of them are terrible >> i would have trouble placing these. >> don't make these again. >> check out back-to-back episodes of the profit beginning tomorrow at 9:00 p.m. eastern. delta airlines getting whacked. let's get to mike santoli. >> thank you delta, yes, in a tailspin after bank of america downgrades the stock to neutral part of a rough ride for the rest. delta as well as american airlines, jetblue, off of sharp highs and is there a soft landing?

boris slausberg. is there time to call a bottom here >> i'd say for delta, no identifiable trend to point to when that's the case and as it's been for delta, it has paid to buy the stock when it's ugly as it is now. however, if that's all i have to work with, i really don't have much to work with at all speaking in terms of levels for delta, big support is $45. this is the multiyear low and positive up there. >> the stock looks cheap a value opportunity or trap? >> it may be a trap because as far as the market is concerned, the only thing they care about is revenue per available mile and fares down 2.6% in december. and of course, the shutdown is really not helping the the airline indust

airline industry today 2 hour waits, just the delays themselves are going to have a massive ricochet effect with the whole industry i think the story is still out there. watch guidance but it could be a situation where both you have customers just sort of not really going up and then this big event of the shutdown that's going to have a big negative impact that's going to have an effect on the industry as a whole. >> quick programming note. don't miss exclusive interview edward bastian on 'squawk box" tomorrow morning melissa, back to you >> mike, thank you pg&e shares. the ceo steppi ping down. pg&e's contessa brewer is live in a

port in new haven. >> reporter: coast guard involved in port operations in many intricate ways. wait to hear how the government shutdown is affecting the job they have to do. >> the numbers of shares sold, often used to gauge market sentiment. a rising short interest means investors are becoming more bearish on a company, however, when they reach extreme levels, it can be a contrary indicator because traders are often forced to buy back eithr short stock and that can drive the stock much higher. (baby crying)

♪ ♪hold on, i'm comin' ♪hold on, i'm comin' ♪hold on don't you worry,♪ ♪i'm comin' ♪here we come, hold on♪ ♪we're about to save you i'm comin', yeah♪ ♪hold on don't you worry,♪ ♪i'm comin'

welcome back to "power lunch" everyone. i'm sue herera here's your cnbc news update at this hour. tens of thousands of los angeles teachers taking to the streets, strooiki stroo striking over a number of issues the school is open with substitute teachers. second largest school district in the country >> we are on strike about class

size, nurses, counselors charter location, special education, low wages and more a car bomb killing four people in kabul. it occurred in a highly secure compound home to international companies and charitable groups. the casualties are taken to a nearby hospital. the american red cross is pleading for americans to donate blood. it's collected 27,000 fewer blood and pla platelet donations over the period. the blood type in the highest demand is type o up to date back to you. >> i think i might be blood type o. >> i think donating at any time is a good thing to do. >> that's true i'm scared, maybe i should >> it's easy, it's easy. >> am i going to pass out? >> no, you lie down. then they give you orange juice and a donut. >> and cookies >> now you're talking. >> right >> thank you, sue.

the oil market is closing for the day. dominic chu has more at the commodity desk dom? >> the oil market might need a shot of sugar or adrenaline because we've seen it fall out of bed more so in the last few minutes or so here some technical levels that traders are watching here. they're attributing that to the sell-off we've seen in just the last five or ten minutes or so watch crude at $50.50 and $59, a little bit lower but the real trade today, the 15.5% surge in natural gas. this as forecasters are predicting a colder january going into the end of the month and previously thought that sending natural gas futures surging on the day is a trade tyler will be watching after all the volatility we saw over the last months. thank you, ty. thank you, dominic shares of pg&e plunging again. the embattled utility said the ceo will step down as it plans to file bankruptcy

dede r dede, aditi roy. >> reporter: it plans to file for brums ankruptcy by the end h month. if it were held liable for the total cost related to the 2017 and 2018 northern california wildfires, those liability costs could exceed $30 billion and that doesn't even include punitive damages the campfire killed at least 86 people pg&e expect the losses will exceed the available insurance and assets plans to file for bankruptcy on or about january 29th. this morning's filing follows the news last night that the company's ceo geisha williams is stepping down. 16 million served in california. rates are expected to increase

as a result of the bankruptcy but not disrupt service. this will be the first big challenge for california governor gavin newsom who just took office last week and he says he's been in touch with pg&e over the weekend. >> thank you, aditi roy in california for us. the shutdown hits shippers day 24 of the government shutdown and having a big impact on cargo shipping. unable to dock at ports. contessa brewer is at a port in new haven, connecticut with the story. >> reporter: it's because of a technicality these big ships have to have what's called a certificate of financial responsibility it's kind of like an insurance policy that proves that they can be financially responsible if something goes wrong when they're in port but right on the coast guard's web site, it says we're not reviewing these applications that's been the case since december 21st. you have these ships that are stuck out at sea it's not the only problem. i talked with the head of the port of long beach

the second busiest port and all kinds of phone calls from worried clients and shippers about what's to come he said right now, you have customs and border protection showing up on the job, but not getting paid, so there's not much of a backlog. maybe some slowdowns but nothing significant but what's to come it's showing up in other ways. you need to have a security inspector overseeing refueling that happens at the harbor and when that doesn't happen, it costs these ships between 12 and 48 hours of delay. in the shipping industry, time is money they can't afford that and then let's go to the airlines you've seen those pictures of the long tsa lines the tsa over the weekend said the call rate was double what it normally is and suing president trump over the shutdown and the faa safety inspectors are furloughed as well and let's face it, even if the government were to open tomorrow, you've

got this walk and agencies need time to catch up and no end in sight right now. >> thank you, we'll talk more about this the shutdown is impacting air travel the tsa web site said nearly 8% of tsa agents didn't report to work yesterday nationwide. houston's terminal b was closed this morning because there weren't enough screeners and a terminal had to close early over the weekend. at what point is this a security threat let's ask gordon, the former chairman of continental airlines and cnbc contributor what do you think, you're down there in houston, right? is this just a difficult, you know, couple of weeks to get through or just a real problem >> reporter: as it continues, it will get more difficult every day. right now, i just went to terminal b things are very smooth that's the express operation terminal for united. the main united terminal c and e are open and things are floeiwig normally but you can bet things

continue to degrade as long as these guys don't get paid. it's an issue. and will continue to be one. i don't believe the atc system is shut down i don't believe that's true. >> air traffic control, right. i saw the canadian atc guy there, the american counterparts over the weekend in long island too. but do you think that, it was just a nice gesture but at the same time, we just need to make sure they stay fully staffed and up and running and suing the president. do you think people who are watching this highly publicized shortage of tsa workers play out exploit what they perceive as a security vulnerabilities should there be any with those >> i think the reason they're consolidating the stations is they're not changing the standards at all and there are enough like three too but more than adequate i'm not sure ultimately where the bottom stops obviously, this shutdown of government has got to stop and there will be more and more pressure and these guys know how

to pressure because american economy doesn't work without air transportation it just doesn't. >> contessa brewer just said faa air safety inspectors had been furloughed and presumably are not on the job what does that mean? >> well, you know, like i'm getting in your airplane and somebody said, let me see your license. that's a safety check. those kind of procedures which are not vital but, you know, worthwhile, that they are cut back but the atc system which is you're getting ready to take off and all of the safety issues combined, that's 100% manned >> how should investors think about business travelers, travelers who may be looking at the possible long lines and cancelling some of their trips at what point do you get concern in the shutdown this is actually impacting the lines because people are not going to travel because presumably, that's revenue the airline might not

necessarily get back for a business traveler. if you can't make that business trip to toronto, you may not be going. >> that's not encouraging people to want to go. they'll come up with more excuses not to go because it's a hassle waiting in a line for an hour is probably not acceptable for people going on a vacation, so they do something else but i don't believe the standards are going to change, but certainly, the reaction to the american public is going to increase and put more pressure on this issue. >> do you think people are cancelling their flights or that airline investors should be worried people are cancelling flights because of the potentially long lines >> there's the revenue side. the flights will go but maybe two-thirds full. >> won't be as profitable. for the airline. >> but that's the economy. so that guy was going to a business meeting and now he's not going. that's going to have a secondary effect as well >> gordon, what other areas do you think we should watch? right now, combining lines and

shutting down terminals. mostly a formality and lose a little bit on the margin but in terms of the actual functioning of our airways, what's at risk here? >> i think with the same air waves and those things, i think you can rely on with no compromise with safety and what you can rely on is hassles will increase as they have been over the last couple of days because people need to make a living, get paid and buy groceries and they're not going to come to work >> gordon, thank you for your time >> thank you. shares of lululemon popping after the company brings outlook stock with a monster run up 15% in 2019 up nearly 78% in the last year. will the run continue or is the stock stretched? that story is next

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biggest retail conference under way. courtney reagan with the big themes that are emerging hi, courtney >> reporter: hi, tyler at the national retail federation's annual big show, you've got 40,000 people, that's retailers, software companies, start-ups and more, coming together to discuss two things one, the latest retail trends and also the latest cool tech gadgets that are helping retailers move into the future things like virtual store assistance, milly, smart and cashierless technology and inventory drones and robots, analytics that identify shopper demographics but as this is, the ceo's biggest retailers say traditional stores remain their biggest asset.

target ceo brian cornel said the biggest advantage are the stores that serve as inspiration hubs and fulfillment and also saying the hit stores are assets to vendors, to shoppers and really for the entire supply chain. as cool as drones and robots and ai is, really, for retail, it's about focusing on maximizing the utility of those physical stores back over to you. >> court, thank you, courtney reagan one specific retail name we watch today, lululemon soars 6% after stronger than expected holiday sales stock up 78% over the last year and next guest expects more upside ahead roxanne meyer. thank you for phoning in is lulu's results a read on the consumer or on the athleisure space because you've got lulu and nike posting good earnings and then you have macy's what's a true tell

>> hi, thanks for having me. i think this is a read not only on the strength of the athleisure, one of the niches doing exceptionally well but a testament to lulu's focus on innovation and management execution. it's the culmination of many initiatives that have come to fruition over the last few years and it's just an inflection point. >> are they focused on men more and has that been delivering for them >> yeah, men have been in the driver's seat in terms of delivering the growth. that's been the case probably for at least the last eight quarters and i would expect when we get the full results, we'll find that men continue to be driving the growth i can certainly say from our survey work which we put out last week, men are supporting lulu at a rate of 2:1 on a rate of many metrics.

>> sit liis it like the pants t even guys wear to the office i'm not convinced it's proper office attire but most males in america think it is. >> i think it is a combination on the men's side of both the technical pants for working out as well as some of their pants, the avc pant, very popular for both business casual as well as travel and that has been disproportionately driving growth i don't think you can forget on the women's side, also quite the resurgence men and women's been up in the last few quarters in the 20s and 30s. when you think about that for a company almost 4 billion this size, pretty remarkable. >> how could they be affected if tariffs go up or tariffs get expanded to a broader range of goods? >> they have exceptionally low exposure to china for their production they've already publicly

disclosed that, so even if there are, i view them virtually better positioned than anybody. >> if between lulu and nike, which would you rather >> i don't cover nike, so i can't comment. i can only say within my coverage, it's my top pick >> roxanne, thank you for joining us we appreciate it >> thank you >> mkm the divorce dip. shares of amazon are lower since jeff bezos announced breaking up d wsorheomnynd shareholders that's next.

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welcome back to "power lunch. the bezos breakup has shares of amazon falling after founder announced his divorce last week. president trump has weighed in on the drama tweeting so sorry to hear about the news about jeff bezos being taken down by a competitor whose reporting is more accurate than the reporting in the amazon "washington post." hopefully the paper will soon be placed in better and responsible hands. what does the divorce drama mean robert frank has taken a look at why there could be pain the longer this plays out. >> it is the $130 billion

question what will happen to jeff bezos' 79 million shares of amazon stock. when jeff and mackenzie bezos announced their divorce last week divorce attorneys in washington said they expected the couple to officially file that divorce in the next day or so it would be fairly quick that would be followed by a judge's decree confirming the terms of that. as of this morning, the cook county superior court in washington tells me there has been no divorce filing that means negotiations may not have even started yet, which means this could go any number of directions. under washington state law bezos' shares are subject to, quote, just and equitable division which in this case probably means half. how could it go? well, she and her four kids could get shares but allow bezos, jeff bezos, to vote so he doesn't lose the 16% voting power but loses some economics or she could become a large shareholder herself. that would be filled with a lot of unknowns when your ex-wife is your biggest shareholder or she could demand cash that

would require him to borrow against those shares or sell them and that would be the worst for shareholders because it would put pressure on the stock. we know from divorces, it's often the company shareholders that get caught in the middle. >> there's a short term and long term it would be worse for shareholders if he loses creative control over the company, even if he's forced to sell them in the near term that doesn't change the story for amazon if he's less able to control the company in the future, i can't believe this isn't negotiated yet. i thought everyone said when this was tweeted they must have come to terms on this. >> that's exactly the point i'm making, it all seemed wrapped up in a nice bow, we're friends probably have a deal if they haven't even filed the divorce yet, which means the starting gunhasn't gone off fo negotiations, then there's so many uncertainties here for shareholders think it's going to be downward pressure on the stock until we get clarity they've at least

filed for divorce. >> they don't have the dual share classes. >> absolutely not. what i'm guessing is they are both matrimonial attorneys and security experts in a room to figure out how do we give her what she deserves, whether half or less, allow jeff to keep the voting control even if she gets the economics she could get the dividends and the cash proceeds if the company is sold, unlikely, but she gets the economics he keeps the voting but that's a really tricky thing to structure, especially with a company as big as amazon. >> imagine if they had multiple share classes like the facebooks and snaps, this would be a much bigger deal. >> something like continental energy, it was a short-term bumpy ride for the stock as there were unknowns and oil prices went up and it was fine. >> thank you. >> check please, is next have such a great trip.oh, wowo thanks to you, we will. this is why voya helps reach today's goals... all while helping you to and through retirement. can you help with these? we're more of the plan, invest and protect kind of help...

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hotel and gaming stocks are on the move. seema moody has more for us. >> compounding these fears around a china slow down is a note from jpmorgan which says that china's economy is deteriorating fast and could lead to slower gaming consumption in the chinese territory of macau a number of those gaming stocks that rely on macau and the chinese consumer are trading to the downside 2 to 5% other sectors like the luxury retailers that depend on the chinese consumer are down today, lvmh, caring the parent of

gucci, montclair, among others the china trade index which cnbc has compiled that houses a number of companies that rely on sales in china or generate sales in the country and you can see it is trading down but relatively flat. back to you. >> thank you seema moody. >> check please. >> time for check please. >> the government shutdown the longest in history, 23 days and counting and so here's a stat that came out last week but it is worth pondering as we enter the longest shutdown s&p estimates that if the shutdown lasts two more weeks including this week, it would cost the u.s. economy 6 be there. $6 billion which is more than what trump, president trump, is asking to build a wall that's really something that everybody should be thinking about as we go thu therough the negotiations, what is the cost of the american economy, the wall and federal workers without paychecks. >> i asked one of our guests whether there hasn't been an idea of setting up a commission,

like simpson-bowles to look at border security and if you did that and both sides agreed they would abide by what the recommendations were -- >> night be the crux of it. >> i'm sorry >> that might be the crux of it. >> getting them to agree that whatever comes out of the commission will do, is -- >> have they done anything on erskins-bowles. >> no. it died. >> with all the trillion dollar market caps floating around you might think the markets are more top heavy. amazon is less than 3% of total u.s. stock market value today. it was 70% when ibm was on top, 13% when at&t was on top and about 6% on average up till 2000 the point which i like is counterintuitive, the biggest companies relatively speaking are smaller in these markets than they used to be in. >> in terms of their impacts on the market. >> there have only been ten

companies in the past 100 years that have had the largest market cap. only ten we've seen three of them in the past couple years. >> creativedestruction is picking up more, not less. >> a great stat. >> thank you for watching "power lunch.." >> "closing bell" starts right now. ♪ >> welcome to the "closing bell." i'm sara eisen. >> i'm wilfred frost city group posting high profit we'll dive into the numbers with the former wells fargo ceo >> this is the longest government shutdown in u.s. history. columbia sportswear taking out a full page ad in "the washington post" urging the government to make america's parks open again. we're going to talk to the company's ceo tim boyle about why they made that move coming up. >> let's have a look in on what the markets are doing as the dow intraday chart, th