first few months. >> you like lowe's thank you so much. >> thank you. we have an in-house renovation expert here but - >> oh man was it cold the night before last in our house. >> no heat, i'm sure thank you for watching. >> "closing bell" starts right now. ♪ good afternoon welcome to the "closing bell." i'm wilfred frost. >> i'm morgan brennan in for sara eisen. >> coming up, niall ferguson, why he says china is the next global crisis. >> plus, big earnings coming your way after the bell from intel, starbucks andnorfolk southern just to name a few. instant analysis let's get right to breaking news on the government shutdown. ylan has more from washington, d.c. >> reporter: the senate is voting on president trump's

proposal it appears that the democrats do have the votes to block that measure from moving forward and after that vote finally concludes the senate will then take up the democrats' plan to fund the government through february 8th without any additional funding for the border wall. now, one democrat did cross party lines to support president trump's plan that was joe manchin of west virginia but there are also several republicans who are expected to support the democrats' plan to reopen the government for a limited amount of time and you are seeing some bipartisanship, very little bit of it here on capitol hill and not expected to be enough for either of the measures to continue to advance. now, just a little bit ago we did house democrats march across the hill to stand in support saying they need the shutdown to end and they want president trump to agree to that before

they start any negotiations on border security. but where we're at right now is senators sort of staking out their positions, taking these very tough public votes. but not making any progress toward a compromise deal here, guys, as federal workers set to miss a second paycheck tomorrow. >> ylan, i get that neither of these are expected to move forward in the senate right now. but just to put a fine point on this, in terms of what the republicans are proposing this is to fund the agencies that currently don't have that money through the rest of fiscal 2019. the democratic proposal is talking about another continuing resolution correct? >> reporter: that's exactly right. so the republican proposal would be considered full funding through the end of the fiscal year and including that $5.7 billion for border security and a physical barrier at the border that president trump has wanted that is, you know, caused all of this division here on capitol hill and the democratic proposal

would just be a short-term stop gap measure to allow for more negotiations to continue. >> ylan, thank you very much keep us posted as those votes take place this afternoon. we should mention what markets are doing. less than an hour left to trade. the bulls canceling out the bears. the chip stocks in particular leading some of those tech heavy nasdaq higher in general, though, as you can see with the s&p flat. commerce secretary ross on "squawk box" this morning discussed the ongoing trade tensions between the u.s. and china saying the deal may take longer than expected. >> there's been a lot of anticipatory work done but we're miles and miles from getting a resolution and frankly, that shouldn't be too surprising trade is very complicated. there are lots and lots of issues, not just how many

soybeans and how much lng but more importantly structural reforms that we really think are needed >> let's bring in cnbc senior economics reporter steve liesman. we know the difficulties with getting to a point of a deal but i guess this was a very different tone to what we heard larry kudlow the day before, the tweets of president trump, and again raises the doubt that is a serious deal can be done any time soon. >> yeah. i mean, look there's a bit of refreshing honesty in wilbur ross' comments and what people have been saying for a long time and a reason why there's no resolution to the issues for a very long time which is other administrations came across the issue of how complicated trade is a refreshing honesty, wilf, but a troublely inconsistency which is this. if these issues are going to take a long time to figure out, miles an miles apart, why are the triggers so short term

we'reup against a march 1 deadline will there be addition altar i haves placed on chinese goods that i think the market may already have priced out, believe it or not. may have to price it back in i'm amazed how well the market has taken this bit of refreshing honesty from the administration. they seem to be untroubled maybe as bob pisani suggested it's the people that think there's not a trade deal already out of the market. >> steve, i get the debate is brewing right now in terms of how the market has been pricing for an outcome here. how have economists been modeling for one >> well, you know, they were much more i guess less pessimistic about the outcome from these trade talks than the market was in i could go through the tale of the tape here, the initial estimates from economists were very modest in terms of the impacts through the first couple of rounds and more nervous with this next round.

that might be coming in march. but the market got really concerned about it i think, morgan, because of the potential uncertainty and the idea that began to snowball that the tariffs and trade tensions to reduce the incentives to invest and have ceos hold off. >> steve, just quickly, want to ask you about the latest out of europe we got i think the last reading in the pmi 66 months. >> yeah. >> dovish tone from mario draghi do you think the possibility of a recession in the euro zone is rising for the year ahead? >> i think it's definitely there. i don't know what exactly probability i'd put on it. the lower you grow did easier it is to slip to negative that's just a mathematical reality. but the issue is this. draghi stepped forward and all but affirmed market expectations there wouldn't be a rate hike this year and then policy

measures in march and i wonder, wilf, you know better than i would if that's buoying the other side of the market to go down because of trade and now more dovish ecb could be offsetting to an extent. >> i don't think that's the case for u.s. markets, steve, because, of course, the dollar is stronger and as you look at both the comments of the bank of japan this week, ecb today, hard to see dollar weakness in the immediate future. >> fair enough. >> we have to see. as you said, the s&p flat with 53 minutes left of trade steve, thank you. >> pleasure. well, joining the "closing bell" exchange to talk about today's market, we have ryan dietrich and rick santelli at the cme in chicago good afternoon to you both ryan, a same question to you we were discussing with steve given the comments from secretary ross earlier today, are you surprised to see the market not reacting more to that >> well, right here not really

honestly, the looking at the market it had resolve the last we'll call it four weeks or so and taken the negatives in strive and we are seeing that today. talk about what do we know mention today. claims at 199,000. 50-year lows go back in history before recession and you tnd to see a spike of about 75,000 in initial claims right there to us tells us we're a long way from a recession. is there a recession in 2019 we don't think so. don't ever feerorget here since world war ii, no two down years on stocks without a recession. maybe the 5% bounce in january is great after the worst december in 87 years and maybe consolidation and could be a good year for stocks to outperform bonds in 2019. >> rick, i want do ask you about the other topic we spoke to steve about. what is your take on ecb and european data? >> there's no better entity to

speak to the central bank of a given country sometimes than the knee-jerk reactions and trends of the currency. look at the euro the dollar, worst level since november if you look at the euro versus the yen, we are not quiet there but close. we are in the same zip code as the close -- right around mid 2017 for the euro verse the yen. listen i don't doubt that mario draghi's in a pickle here but this is of their own making. i don't think they timed it out right. i don't think they -- let's rephrase i think mario draghi and the ecb are waiting for the absolute perfect picture perfect opportunity to normalize rates there's no such thing and not many tools left in the tool box to make a bigger balance sheet or go even more negative than the deposit rate minus 40 basis

points and considering how weak their economy has been with that medicine applied i don't think the latter will they go to recession? i think out of the major economies on the globe right now putting china aside because i don't trust their numbers, i think europe could >> although, rick, i'm not sure it was really the opportunity for him to hike rates here but a question of the economy -- >> no, not recently, yes yeah not recently i think there were opportunities. yeah, no you know what? you make a good point. let's go with that let's say after they made their balance sheet large, after they dropped rates the my noinus 40, there was no opportunity to normalize then it's a bad mistake in the future to learn don't apply a medicine that once it's in your body doesn't come out whether it works or not. >> ryan, how are you

positioning? you believe the markets can continue to go up. is that a growth stocks, value stocks which sector in particular. >> great question. we think value you look valuations on value are really low relative to growth and later in the economic cycle you tend to see value do better and as we said we don't see a recession but a lot of -- fiscal stimulus and percent of gdp this year than last year and we are of the opinion the yield curve to steepen here and help financials, a big part of value. value and emerging markets overall we don't like europe that much. we think emerging markets, a billion smartphones sold this year and 70% in emerging markets and another place to find alpha o outperformance in 2019. >> thank you we'll leave it there. >> thank you. john harmon just wrapped up

an interview with maxine waters. john, what were the highlights >> reporter: well, wilfred, the colleagues of cnbc.com reported earlier today that waters met with dimond and as she takes over the gavel of the financial services committee chair wall street source told me earlier today those are courtesy call meetings, not a lot of news out of them and maxine waters told me that's exactly what they were >> i met with jamie dimon and others who are ceos of banks and we talk. they make the rounds and they stop in and tay talk with those legislators that they think will be involved in their issues, have some influence, impact on what they're all about and doing. and i welcomed them. as a matter of fact, i have an open door. i welcome everybody.

i believe that even if you know you disagree with a particular industry, you let them in. and you let them talk to you it's always a learning experience. >> reporter: now, maxine waters told me some of her supposed anti-business views had been exaggerated. we'll see how she conduct it is committee. she's going to the senate to try to pressure senators to reopen the government she has leaned on financial institutions to make loans available to federal workers who are not getting paid right now but that did not make her impressed with those comments from wilbur ross, the commerce secretary today. she said ross' statement that he doesn't understand why people have to go to food banks defines this as an administration of rich, powerful people who don't understand how working people live, guys. >> john, what about any insights you could get from her about her more medium to long-term

perspective as chair of the committee? does she want to undo the deregulation that we have seen in the first couple of years of the trump administration toward banks? >> reporter: well, i think the underlying reality which she acknowledged is there isn't going to be legislating in the next two years and not only a republican senate, a republican president who is very fiercely at odds with maxine waters and she with him so i don't think it's likely that they're -- many things to pass to put on his desk and sign and i think a lot of this is about messaging, putting democratic themes out there and trying to put political pressure on the administration. >> okay. john, great stuff. thank you very much. we have a news alert on the faa. sue herera has the details. >> hi, morgan. this is in response to worries perhaps that given the fact that the government shutdown continues and air traffic controllers are working without pay and tsa agents are working

without pay, people have questioned how safe the air space is and the faa just put out this statement quote, the traveling public can be assured that our nation's air space system is safe the faa continually reviews and analyzes its performance to assess its safety and efficiency we are grateful for the dedication so they're trying to reassure the public as the government shutdown continues, guys back to you. >> okay, sue thank you very much. still ahead here on the "closing bell," historian niall energy son joining us with his impact on thetrade war with china. plus sara eisen at the world economic forum with a big exclusive interview. sara, what's on deck >> coming up on the "closing bell" from davos, a conversation with pg&

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our own sara eisen is out in davos, switzerland, sitting down with the ceo of procter & gamble for an exclusive interview sara, over to you. >> thank you fresh off of reporting another strong quarter of growth, procter & gamble ceo david taylor is optimistic about the state of the global consumer. >> what we have seen that underpins the growth is shared growth and says you're winning the products are winning we have share growth on the past 1 in 3 months globally and the biggest country the u.s. growing share last month, last 3 months, last 6 and 12 months and seeing other important markets like china actually accelerate which is very important and the top 15 markets all grew sales over the last quarter so with that, we thought it was appropriate to go ahead and raise the upper end of our guidance range because we believe that consumers are coming into our brands because they see them providing great value. >> want do get to the china story. >> yes. >> a lot to unpack there but

first on the business, it wasn't broad based fully. grooming was still declining what did you see in that business >> grooming is still a challenging category for us. one of the biggest innovations hitting the market right now and we believe with innovation and improved communication and there's been some communication recently we think is very much connecting with consumers we will be able to grow - >> be the best man. >> oh yes. be the best. >> so controversial. >> started a conversation. what we want to do is we want to connect with consumers and there are some things we do need to talk about there is an issue with toxic masculinity and show there's things whether it's bullying or sexist behavior to be better and men are stepping up and stepped in the commercial very clear examples of that happening and while there was a very well organized but small number that did not like that initially what we have seen is each day more and more people coming in and saying they connect with that

and they understand it's a relevant message conversation will lead to understanding. and improved behavior by all of us. >> you see a sales impact positive or negative as a result of the commercial? >> too early and only broke a week and a half ago and had 90 million views of the spot and connected with people and started an important conversation and to me i think men want to be better on this and i think men are stepping up. >> so you passed along some of those higher prices to the consumer will we expect more, expect to pay morefor the every day products from procter & gamble this year? >> we want outstanding value there are some cases and some categories and certainly some paper categories and others impacted by input cost when input costs go up so much we need to pass along price we try to do that in a very responsible way. we want to provide great value to consumers it is in a few categories in a few countries to do that and to me consumers so far have shown

they have accepted that as long as the product delivers great value and typically with innovation when we can to give a better experience. >> and a reason to pay a higher prices. >> absolutely. >> any impact on the consumer psyche and behavior from the government shutdown which is now record territory >> certainly if it were to sustain itself it would be a high concern and it is a concern for all of us. we want the government operating. i haven't seen yet a big impact on the business. the category sizes but do i think it will over time certainly. >> when you hear talk of recession, what do you think >> it's certainly not in the consumer categories right now. am i concerned if the things don't get resolved yes. but if you look at, again, the growth rate of categories in the major countries, we're not seeing significant drops an aggregate it is up half a point. >> how are you planning if the trade war does not get resolved by the march 1st deadline between the u.s. and china

>> for most of our products in the u.s. we make in the u.s. for the vast majority of products we sell in china we make in china. so certainly, first thing we want do do is where we can localize the supply chains and serve the consumer and make the product in the country where they can consume it where it's economically possible. so that does minimize the impact we have. but to me there's a broader impact on the economy if this thing goes in a way that disadvantages both countries and so i think it's in the best interest of the u.s. and china to find an ammicible solution. >> taylor overall sounding more upbeat than the ceos we have been speaking with here at davos and overall the theme is one of optimism it is not the doom and gloom necessarily we thought coming in after a turbulent market period at the end of the 2018 but an idea that the economy globally can grow pretty strongly as soon as we get over the big policy humps like brexit, the u.s. shutdown and, of course, the

trade fight with china back to you guys >> sara, great stuff thank you. we'll see you latter in the show i have to pick up on the comments on the gillette ad because what i want to see is when a company does this and six months later it has a big negative impact on the sales then to see how they react clearly with the nike advertisement it was a short-term pickup in sales and there we heard it's too early to tell with the gillette ad and see if companies take the stances if it hurts the sales. we don't know if that's the case for the gillette ad yet. >> the whole purpose of advertising to bring recognition to the brand and they have done that i also think it's interesting. p&g is a turn around story up 5%, almost 6%. >> yeah. certainly benefiting i guess when people shift into a defensive positioning but as sara rightly pointed out

relatively upbeat for the u.s. consumer overall there. let's get to a news alert on p&g. adidi? >> hi. big news of pg&e morgan, cal fire has determined that pg&e was not responsible for that deadly 2017 tubbs fire, that was a wildfire in 2017 claiming 22 lives and burned through 170 homes that was at the time the most deadliest and one of the most destructive wildfires in california history at the time and pg&e if it were to be heldliable for that particular fire would have faced about $10 billion in liabilities. upon that news, the shares of pg&e were halted for volatility but they have since reopened and you can see up about 25% right now upon that news interestingly enough, pg&e just made some filings to that affect the tubbs fire contending that it was actually an unlicensed

electrician doing work not belonging to pg&e that caused that fire at a home in calistoga but again the big news is cal fire determining that pg&e was not held liable for that tubbs fire of course, pg&e the investigations around the utility and its potential liabilities in other fires such as the campfire, the big one last year. those investigations are still open pg&e has said in recent regulatory filings that it could face liabilities of up to or actually exceeding $30 billion if held liable for the wildfires between 2017 and 2018 but you can subtract the $10 billion from it for the potential liabilities of the tubbs fire. big news here. back to you guys. >> thank you we're showing video here on the floor of new york stock exchange this is the post where pg&e is traded and you can see traders lining up around there because the shares have been halted looking to i guess put trades in. >> yeah. should open any second as we

understand it. clearly the traders as you can see hovering around that bob pisani is around that post we saw him briefly and i think plugged in and can give us insight directly from the floor. >> you are seeing a way it used to be in the old-fashioned days so what has happened here is pg&e was halted for news pending. it reopened once the news came out and because it moves so quickly so fast it was halted again. this is actually the second halt they're going to reopen. a five-minute halt and reopen very shortly see last trade was $9.99, indications are $13 to $14 and hearing the traders screaming out buy and sell orders at various price levels that 13 to 14 is a price that designated market maker there, the specialist, set based on what he is hearing here in the crowd and looking at orders coming in electronically there

and also listening to the crowd yell out orders. this is that strange combination so successful in the nyse's history of high-tech people putting in orders electronically and then large orders on the floor to buy and sell. so this should reopen in -- between $13 and $14. should be ready to open in just about a minute or two. the halt should be five minutes and it's about time up right now. so this is something you don't see as much because the orders come in here and it's very rare when you have to open a stock and then close it again because it hits the limits so there are what are calledtrading bands that operate and limit how fast stocks move up and down and instituted after the 2010 flash crash. it sort of controls the speed at which some stocks tend to move here it is just opened. take a look. opened here at $14

now trading at $14.18. there you go we'll see if it gets halted again and excitement down heeren on the floor. >> the first delay was for volatility and then news pending. either way, the result as you see, if we look at the live price, up some 75%, almost 80% from incredibly depressed levels in recent weeks and months but pg&e back open trading again up some 80%. now been halted again because of volatility as we understand it volatility to the upside very much so on this news we'll continue to keep an eye on that one when it does reopen. halted up 77% on did day, down sharply in recent weeks and months. still ahead, much more from davos including an interview with sp global ceo doug peter sorn.

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servicenow works for you. welcome back to the "closing bell." time now for a cnbc news update with sue herera. >> hello, everyone here's what's happening at this hour police in florida say they don't have a motive for the deadly bank shooting of yesterday xaver is charged with five counts of first-degree murder at

a suntrust bank branch. >> the incident yesterday at approximately 12:30 when he entered the bank with a gun. he immediately contacted bank employees and a bank customer and overtook the bank by force he then shot everyone in the bank. venezuelan president maduro visiting the venezuelan supreme court one day after a rival politician declared himself interim president of the country. he was greeted with music and hand shakes, did justices supporting maduro and his government. pope francis blasting corruption in venezuela and said he's following the developments in venezuela and supports all efforts to help save the population from further suffering. you're up to date. i'll send it back to you and see you next hour. >> sue, great stuff.

thank you very much. the u.s./china trade war and in davos concerns of the impact on the global economy. >> the whole trade discussion has to take into account if you have a dislocation in relationships between 42% of global growth in two countries, you will have a global slowdown for sure. >> you look at the bigger macro issues that are out there. you know, any one of these individually probably doesn't slow us down but a combination of things not going the right way will have an impact on markets and sentiment. >> trade war right? that's having an impact on company's perspective of should they invest or postpone investments? i haven't yet seen it manifest itself but it's definitely part of the conversation. >> there would be more money going back into cap x and sup pl

ply chain. they have slowed down. >> our next guest said the decline of china and u.s. financial relations may prove the tipping point for larger global crisis. we're joined by niall ferguson from stamford university and author of "the square and the tower. which is out in paperback this week >> good to be here on the show. >> want to link together the book and the topic of the u.s./china relations and this is very much about networks, hierarchies. who would you say is more powerful in their own nation, president trump or president xi and when power is not backed by democracy like in china does it always last forever? >> there's no question that xi jinping is more powerful in china than donald trump is in the united states because in the united states we have the separation of powers, the rule of law, federalism. the things they don't have in china.

in some ways xi jinping is the latest emperor back to before the 1949 revolution. china long had a system of government of hiand the united e been from the inception not just a democracy but a democracy limited by federalism and no question in terms of centralization xi jinping wins. >> does that mean he's in a better position for the trade war? >> i don't think because you have to recognize there's a certain weakness to his position the communist party's legitimacy depends principally on being able to generate economic growth and when gio to beijing an i'm go there often i'm struck by how worried the political elite is if it slows down significantly they find themselves facing a great upheaval that characterized chinese history.

they worry about how long they dynasty will last and in the united states i'm struck by how much popular support there is and it's bipartisan for standing up to china. on many issues president trump is not a popular president. that's clear but interestingly, on china i think he struck a cord and it's a cord that resonates with both democrats and republicans and what started out as a rather e sen trick position, early 2016 and going after china and at odds with the american political and economic establishment and over time i think more and more people have got on board with this and president trump found a weak spot. this is one of his super powers, the ability to detect weakness in the opposition and i think he found that xi jinping's weak spot was this. >> begs the question -- can china deliver enough for an actual trade deal that will be appropriate and be agreed upon by president trump and this

administration >> morgan, i doubt it. consensus is there's going to be a trade deal this year and quite soon i'm doubtful i think the most that the chinese will get from robert lighthizer, the u.s. trade representative, is an extension of the cease-fire that means that the tariffs don't go up higher on chinese imports to the united states. if you look at the negotiations what's happened has been that the chinese kept making offers, particularly to reduce the bilateral trade deficit that have not been good enough for bob lighthizer and he is an extremely tough negotiator as long as he is calling the shots and isn't steve mnuchin, i don't think there's going to be a trade deal because i don't think the chinese prepared to give him the things they wants, major changes to the made in china 2025 strategy, for example. >> that's the key point. this is what secretary wilbur ross came on our air, made news today talking about the fact that right now the two countries

he believes are miles an miles apart. china would have to actually even admit that they engage in things like forced technology transfer, ip theft and then agree to a mechanism to enforce those changes. >> right. >> they haven't done this. >> they're not going to do that. lei he, someone i have known for many years, impressive individual his job was supposed to be to clean up china's financial system and he was as it were redeployed to the trade war when this all began last year. it is not a good fit for him and i think it's difficult for him to really get a handle on the issues with bob lighthizer, a man with decades of experience back to the 1980s on trade coming at him and knowing exactly where china's weak spots are so i would be surprised if this were called off and only thing to happen and can't rule it out president trump is not predictable. lean over lighthizer's shoulder saying i'm taking the deal

good enough for me this is not out of charact we are the president. he made deals quasi deals with north korea most experts didn't like and the risk is that lighthizer would resign and not sure that the president wants to do this unless the stock market is in really serious trouble and he feels he needs to throw it a bone. >> stability no doubt in the stock market and important thing to keep in mind. >> very much strengthens trump's point. >> now brexit. is the single most likely outcome that article 50 gets delayed and a second vote? >> it's certainly more likely of a delay than that there's no deal i think the probability of a complete crashing no deal has gone down significantly. i don't think the second vote is by any means a certainty the number of members of parliament who have said they favor another referendum is not really that large. the labor leadership is against it we know. and more and more conservatives,

i was just in london recently, they're asking themselves what would happen with a referendum and remain won the conservative party would never be frifb by proponents of brexit and the next election to vote for a uk independence party and a disaster for the tories and i suspect them pulling back from the idea and i think that's right and a terrible idea. i think you have to either do mrs. may's unpopular, ugly withdrawal agreement or call the whole thing off and another referendum would be politically disastrous. >> to bring it back to your book, seems like another day, another headline around facebook, the one today is focused on some groups coming out and urging the ftc to look into breaking up the company is that unrealistic? >> i think it's difficult to revive the old definition of anti-trust and go after facebook when going back to the '60s and '70s the definition is are consumers being hurt by a monopoly or a concentrated

sector i think that would be hard to pull off but i think there is a shift in the climate in washington compared with when i brought this book out last year in hard book last year republicans didn't want to talk about regulation or these issues this year it's different because they work up to the fact they're powerful companies and lean left ward and something new is coming and i don't think it's anti-trust. >> wanted to ask you about the shutdown and did border wall issue, of course, so closely linked of the two sides of that debate, which side are you more critical of >> well, i tell you what i thought it was a terrible mistake that president trump started off to take full responsibility for the shutdown. a minute he said that, i said this is a hiding to nothing. that was a rookie error. always make sure the shutdown's blamed on the other side so i was definitely not on his side for that border security, i lean right rather than left the more democrats find themselves making arguments for

lax border security then i think the weaker their position becomes and elements in the position, i'm not going to mention -- damn, i just mentioned her but there are people in the party who lean so left on this issue and the direction of sanctuary cities and get rid of i.c.e. that i think they're in danger of a major mistake and looking at the polling while people may not like the way that president trump brought the issue of the wall to the fore during the shutdown there's a lot of support for the idea that border security needs to be tighter and on that issue the democrats have to be careful. i think this could backfire on them. >> great to have you with us here at post nine. >> my pleasure to be here. and speaking of the shutdown, we have got breaking news on the second senate bill to reopen the government yla has the details for us. >> reporter: the democratic plan to end the government shutdown has failed on the senate floor now, that plan would have reopened the government through february 8th funding levels would have remained unchanged and there was

no money for any border wall final vote tally 52-44 six republicans crossed party lines to support this democratic plan only one democrat had earlier broken ranks in order to support the republican plan so we do see that there is a very narrow middle here but the bottom line is that two votes were taken today in the senate and we remain at an impasse where there's no clear way out of the shutdown and no one is sure what the next step is, guys. >> ylan, just missed the numbers there. sorry. six bipartisan vote there is >> reporter: six republicans voted to support the democratic proposal only one democrat supported the republican proposal. >> okay. great stuff. thank you very much. so the final outcome's as expected a fraction, a smidgen of bipartisanship to hold on to moving forward. >> exactly 15 minutes to go until the closing bell right now, the dow is negative down 56 points

the s&p is hovering around the flat line. the nasdaq and russell outperformers. another look at pg&e which has reopened again after three halts. currently up 52% after california probe cleared the company for the deadly 2017 tubbs fire. coming up, shares of freddie mac and fannie mae soaring we'll explain those moves. renewable energy goal. if we don't make this move we're going to have changes in our environment, and have a negative impact to hawaii's economy. ♪ verizon provided us a solution that lets us collect near real time data on our power grid. ♪ if we can create our own energy, we can take care of this beautiful place that i grew up in. ♪

welcome back to the "closing bell." we have a news alert on freddie mac and fannie mae. >> want to draw attention to shares because of a soar of a report of overhauling the housing finance system the plan according to this report is expected to be announced by next month and it would involve the white house ultimately planning by next month to end government control of fannie mae and freddie mac. the question is what type of passage it requires from house and congress you are seeing shares of freddie mac up 14% fannie mae higher by double digits back to you. >> seema, thank you. with 11 minutes before the

bell -- the dow is currently down 41 points right now s&p is up a single point the nasdaq is outperformer up half a percent on the heels of higher tech and semiconductor stocks. we'll have a preview of earnings when we retn.ur so, servicenow put your workflows in the cloud, huh? mmhm. your employees must love you. [ chuckles ] thank you. you could say that. i love you. servicenow works for you. this round is on me. hey, can you spot me?

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welcome back we have just under ten minutes to trade we have the dow lower but the s&p and nasdaq in positive territory. >> we have big earnings coming your way after the bell. josh lipton with a preview of intel and kate rodgers with starbucks. josh >> the street thinks intel reporting eps of $1.22 in focus for investors, one the next ceo been seven months now since brian resigned and going to hear more about the replacement business units, ccg revenue. pc and modem business. last year, remember, intel said it was surprised by pc strength and that put pressure on the factory network and ramsey asked how quickly to build out

capacity for the current shortage of processors and keeping up research and there's chips for servers. mkm reuben roy is looking for 3.6 billion there and double digits growth in the year ahead and slower pace than last year due in part to slower cloud spending back to you. >> josh, is china an issue to watch where intel is concerned >> you know, i asked some analysts on the street who, of course, follow the name and didn't think it was a major issue this time around or think the government shutdown should be a big issue and see what they have to say on the call, morgan. >> okay. great stuff. thank you for that china will be an issue for starbucks. kate has a preview of their earnings for us. >> they expect adjusted eps 66 cents. same store sales expected to increase by 2.8 prgs overall globally 3.2% in the americas and 1.6% in

the important markets in the china asia pacific region and coming off of a very strong fourth quarter in which same store sales blew forecasts increasing 4% in the americas, best growth in 5 quarters boosted by customers spending more on the coffees, teas and foods and this quarter analysts looking to see if starbucks maintains momentum in the u.s. and how the holiday beverages fared and color out of china and starbucks called the second home market and consumer trends and how the partnership with alibaba is faring so far back over to you. >> great stuff thank you very much. we look forward to numbers from both after the close the close is 5:30 away after the break, we'll be back with the closing countdown. and after the bell, is it time for a break-up of facebook? we'll tell you why several advocacy gupros pushing for a change we'll be right back. duncan just protected his family

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welcome back to the "closing bell." before u.s. equities, want to show you the euro because it's very much weak dollar strong today. disappointing outlook of mario draghi and the flash pmis at 66-month low for the euro zone something to keep on with the impact of the u.s. dollar. here's the s&p 500 intraday. a yo-yo session but with a positive finish into the close

of the day going to show you oil dintraday a yo-yo session with oil a positive finish up 1% and helped sentiment those two corelated and tech towards the top and communication services which, of course, tech in it negative. you have got consumer staples right at the bottom down 1.4%. consumer discretionary doing fairly well. utilities, industrials next to each other again, not something you always see and confused sector performance today. bringing in bob to show the four indices. the nasdaq is the outperformer an good do see the dow almost positive approaching the close. >> we have a problem running out of steam here. remember the last five or six trading sessions essentially sideways except for a pop on one day. volume is very light, as well. we are having trouble bringing in more bulls and you can't blame them you've been covering what's going on

poor economic numbers. china numbers. trade difficulty niall ferguson was brilliant really entractable, long-term problem and the market is acting like we'll make a deal next week it's complicated watch the interview with wilf. it was absolutely brilliant. >> well, i agree it was a great comment from him to morgan's questions, as well, on china in particular bring us back to the sector performance today an it's not that bullish today we have tech doing well. >> that's right. remember, there's a strategy on wall street. buy the winners. buy the losers of last year for the first few weeks of january and worked well and two biggest decliners last year, baches and energy stocks. two biggest gainers of sectors, banks and energy stocks. that strategy has worked so far. technology is sort of in line with the rest of the market overall. i don't think there's anything wrong going on but the market is very, very patient with what i

consider look at davos somewhat down beat commentary in davos, as well the market is patient of the news. >> p&g jumping significantly today, as well boosted the utility sector there goes the bell. at the close, s&p up 16 basis points dow almost toz nasdaq outperformed. that's it for first half of "closing bell. morgan, back to you. thank you, wilfred welcome back to the "closing bell." i'm morgan brennan wilfred will rejoin me and with mike santoli here's a look at how we are finishing the day on wall street as stocks settle mixed picture though well off the lows of the day. the dow finishing the day down 21 points or right near the flat

line 24,554 the s&p 500 up 2642. the nasdaq composite finishing the day up about .7% 7073 powered higher by semi sfoks russell 2000 up .7%, as well outperformer is transports that soared on the heels of airline stocks here are the stories on the radar for investors. trade worries being reignited after commerce secretary ross said the u.s. is still miles and miles from reaching a deal with china. chip stocks having one of their best days in a decade after strong earnings of a big maker and the earnings parade gets set to march on. we have a pair of big results due out any minute now josh lipton is covering intel. kate rogers is waiting for starbucks. joining us to talk about the market day, cnbc contributor stephanie link and cnbc contributor ed lee from

"the new york times. but first, mike, it was a day in which indexes moved in and out of the green. >> they did. really, the big cap indexes sort of understated a little bit of strength underneath the market i think the market for three days basically regrouping and kind of gathering itself after this huge sprint 13% up and 17 trading days i keep saying that on a net basis, seems relatively healthy. doesn't inoculate the market against a downturn and a scare to make it seemlike we have to retest but right now two stocks up for every tdown today i think it's fine and the market remains on edge because you have the possibility of these headline tape bombs out there, whether from washington or the chinese/u.s. trade situation. >> stephanie, do you think we only get a deal with china on trade if the economy is strong

as in a decent deal with china or if they'll just soften their position with weakness in the market. >> sounds like both sides want something to be done and, you know, there are puts and takes in our economy, the u.s. economy. good things are happening. just listen to what a lot of the industrial companies said today. not just the airlines. >> that's right. >> rails did very well defense stocks are starting to perk up a little bit and then if you layer on in the semiconductor world, i thought it very interesting to see the reactions to earnings, that's the tell right? and i was encouraged with the banks. rallied on okay news and then today you had the semis and there were some really great ones but there's okay ones that also rallied and i think that's very telling that the risk appetite is back and that people may be looking at the positives versus negatives of the u.s. economy. >> let's dive in to the topic of china trade little more detail

earlier on "squawk box" u.s. commerce secretary ross asked where we were in the process of getting a deal with china. >> miles and miles from getting a resolution and frankly, that shouldn't be too surprising trade is very complicated. there are lots and lots of issues, not just how many soybeans and how much lng but even more importantly structural reforms that we really think are needed and the chinese economy. >> mike, last couple of days we have seen a sort of story repeat itself negative headlines about the china likelihood of a china trade deal and then larry kudlow says don't worry about it. all optimistic but i guess the fact that the market isn't selling off more is encouraging. >> i do think there's a standard baseline assumption that some kind of an agreement is likely but i think one of the reasons that the market is hesitant is no way to handicap the process

but read the minds of two or three people in the world to know what is going to be a satisfactory deal and why i think you have the back and forth and the markets reacting less both to the positive and negative headlines on china not knowing what it means for an ultimate agreement. >> yeah. ed, longer term, a key thing to focus on is what happens in terms of structural changes where tech is concerned? right? >> right i this that's a huge, huge issue for them to work out if they're sinned about trade both -- we know both china and the u.s. will slow down this year they all see the same numbers. i think you work out trade on autos, tariffs, steel, soybeans, that's easier than the structural issues of technology and spying and all that kind of stuff and i think that's the thing you probably push off a little later do the easier thing first. we are talking about government shutdowns. open the government and then talk about the wall kind of a thing. there's a similar dynamic that

could play out with china trade, as well. >> we have intel earnings out now. josh >> morgan, intel reporting eps here of 1.22 verse expectations of 1.22. revenue 18.66 billion. the street at 19 billion and just looking at guidance here for q1, calling for 87 cents. the street at $1.01. revenue 16 billion again, that is light the street at 17.35 billion. and for the year looking for 460. the street was at $4.54. but the revenue for the full year light 75.1 billion the street at 73.2 billion just looking quickly here for the segments ccg revenue $9.8 billion in the quarter. dcg revenue $6.1 billion conference call at 5:00 p.m. and of course we'll be on that back to you. >> stephanie, you're an owner. what do you make of it >> i am and happy today and not

happy this afternoon, obviously. >> still up over the last three months nicely. >> yeah. i like the story i really have lower expectations for the stock, the company, because we knew data center, the comparisons are very difficult, challenging. i have to dig into that more but last quarter they actually blew away the data center numbers and i think there's disconnection. pcs were going to be weak and that -- the stock held up but i still am waiting for the ceo and like the valuation an the balance sheet so plenty of things i like about it. >> ed? >> they missed on the top line and with netflix a few weeks ago. i think on the top and i think it's -- we're seeing the story around the larger economy. there isn't enough trade happening. there isn't enough buying and selling happening and i think that's the weakness.

i would like to see more an the innovation part. when will they get to 10 nanometers i think that's a good sign if they're on schedule but i want to hear more about that on the call. >> mike, sum up where we are for tech stocks and chip stocks doing better today ibm beat. >> it's interesting. the semiconductor group up all day. but, you know, i think you saw gains in stocks like micron that people said maybe it's an up trend and been correcting or really in a bear phase since ten months ago nine or ten months ago this might complicate the picture and intel was always a quality defensive, cheap value play the kind of big legacy incumbent opposed to whip end of the cycle. >> is that why -- showing a board right now realtime and the other semi names trading lower on this, as well

they don't have a new perm nentd ceo yet and how much of this is a read through to the broader sector >> well, no. i think it's intel specific because the expectations weren't as dire. right? i mean, the stock held up nicely relative in the semiconductor space. the names that took off today are names down 30%, 40%, 50% from the highs i would argue it's more of an expectations reset at this point. we are going to hear more about 10 nanometer i think with the new ceo. that person has to come in and put the mark on things i am - >> set the direction. >> if gross margins on the weak side because the cfo who's acting ceo is a decent cost cutter he was at e bay abay and did a , great job. >> will be on adequate squawk alley" tomorrow morning.

>> revenue miss. could that spread across to the richly valued tech stocks? >> i'm expecting more top line misses going forward seeing alphabet and apple coming in the next few weeks, the broader slowdown i think in terms of the chips and in terms of that broader sector, there's upside of 5g and then every little device, anything you hold in your hand can be connected. >> that's definitely happening. >> well, i mean, you do the channel -- channel check is basically talking to verizon, at&t a little bit. they're spending big to build the infrastructure in terms of how ultimately workable it is, the amount of towers you need to put up and the idea is that these waves are really, really small things get in the way and need more towers and more spend and takes longer to get there. that's the question mark >> if you look at sienna, that stock, what that's done. held up on 5g.

xylinx and blew it away. people are playing the stocks. >> that'sgoing to have an affect on cloud computing and everything else. >> we have another earnings alert. starbucks. kate rogers has the numbers for us. >> looking like a strong first quarter for starbucks. reporting 75 cents adjusted eps with 57-cent benefit of discrete income tax items revenues $6.63 billion comps surpassing estimates up 4% for starbucks versus estimates of 2.8% and 4% growth in the americas for the second quarter. in a row now china, asia pacific grew by 3% that compares to estimates of 1.6% and china specifically comps up 1% in the quarter. the company also says it has 16.3 million active starbucks

rewards members up 14% year on year they opened up 541 net new stores in the quarter and also updated their comp guidance for 2019 in a range of 3% to 4% and previously been on the lower end of 3% to 5% and the stock is up by more than 3% right now. over to you. >> kate, thank you very much for that interesting particularly on that china sales number up 1% as you said a lot of focus you don't want to miss interview tomorrow kevin johnson 9:30 a.m. "squawk on the street. all of the big earnings, reaction here on cnbc tomorrow morning. mike, decent numbers pretty much every line china comps, up alone 1% in general, not something -- >> overall it did show good momentum and a stock already performed very well. right? i think the market gotten to this place of a handful of brands that have such a strong

long-term growth record and a solid fix on the consumer like nike, like disney when they have a rough patch if people think they figure it out, they run the stock's up 30% because i think people started to get that sense they have their arms around that issue in terms of china not being under threat and doesn't kind of banish the questions of the competition in china and consumer preference and looks like it's -- by the way, the sell side is taken by surprise by this move. fewer than half of all analysts recommending starbucks right now. >> and the buy side. i can tell you that right now. absolutely. >> somebody's buying it. i don't know who it is. >> the company is buying it. >> that's true. >> i think that's interesting on the earnings call saying that's done quickly and by march and a lot of people wandering whether it's complete. >> 4% comp in the u.s., second quarter in a row, people didn't

think that was sustainable and people thought they would have to lower the long-term growth guidance because of the u.s. china is a big part of the story and u.s. still matters and to see a very good number in the u.s., pretty good sign. >> does that put to rest the brewing debate of starbucks is still a growth company versus mature company. >> 24 times earnings and help from buy backs and not a super aggressive growth point but it's a brand and to wilf's point, it's a global brand and executing a little bit better getting the game back on. >> if you want to think about it as a really kind of consumer staples growing at high single digit percentage which traditionally defines consumer staples aren't for the most part across the board that's where it gets the valuation premium i heard the brewing pun. >> it's actually very interesting on this one. it might be -- starbucks could be a few u.s. company to crack china because it's got a kind of simple, straightforward product.

not a tech thing or a media thing. one of the few ways that a u.s. company can find purchase. i think the 1% comp is significant. >> doesn't have to import its product. >> no. >> it's not a high-end consumer product. >> and associated in china as an america product. >> i don't like american products at the moment. >> still drinking starbucks. >> ap ple is a different ketdit of fish. >> it is a new sort of weapon and nationalist ties versus coffee and thing that is you might eat. >> but like apple, starbucks is facing competition in china and at least right now based on these numbers they seem to be holding up. >> that's the question. >> mike, to bring up apple on this, there's guidance when they guided lower and notseeing it in starbucks is there truth to the argument of people say it's

a high priced product in a saturated market and didn't deliver a good enough upgrade? >> there's not a comprehensive soft boycott of american brands. but i don't think people thought that about apple necessarily i think you could say affordable luxuries not hit as hard day-to-day in a slowing economy as big one time purchases. which is apple phones. >> stephanie, you mentioned the buy side missed. >> i did i missed it. >> is it too late? recent run-up. >> look. i mean i own nike and mcdonald's and i own some of these really big blue chip companies. i can only take so much of them because they're expensive relative to the growth you get and i think there's better value elsewhere and kind of keeping a shorter list and he's clearly delivering and it's a plus to him. people didn't believe kevin johnson could pull this off and

he is in a good, big way. >> great stuff thank you for joining us don't forget, of course, to tune in "squawk on the street. you've got bob swan. >> looking forward to that one. coming up, advocacy groups urge the federal trade commission to break up facebook over the privacy violations. we'll look at whether a break-up of the social media giant could happen. we'll break down the charts, too, as well why recently it's more profitable to buy stocks when trading opens rather than waiting until the close but you have to keep watching cnbc regardless in either slot. we're back in a couple minutes your employees must love you. [ chuckles ] thank you. you could say that. i love you. servicenow works for you.

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welcome back new data shows investors are switching up the daily approach to trading with many buying at the market open rather than a close. mike >> it's working much better this year when investors have traded during the market day, buying early and then perhaps riding it through the day. this is from bespoke investment group. we're talking about how the market was weak through the day. basically from the open to the close on a net basis this is so far this month. through yesterday, although it worked again today if you just bought the open and sold the close each day,

cumulateively up 7.3%. still positive last year looking at the prior chart, it was completely the opposite story you had this red line is if you -- during the regular trading day, down close to 20% or 17% if all you did was own stocks during the trading day. all the net gains overnight happened from the close to the open so basically what does it mean probably is a little built more kind of real money interest in getting exposure to stocks in the trading day. also, probably less overseas and macro influence on what's happening in terms of the day and considered a bearish sign last year because smart money is considered to be essentially whatever happens toward the end of the regular season is a genuine rendering of what the real supply/demand picture is and people say it's smart money backing out. we have the reverse. seems like there's a bid for stocks through the day.

>> that's what i was going to ask about and not suggest that the market's able to shrug off the risks in the day because risk sentiment builds in the day and even if you have an asia implied europe and weak open. >> that is exactly the takeaway or at least that's going on this month and i don't know how much it's been influenced by the fact of a very unusual aggressive liquidation of stocks at the end of the year and people lightly exposed to stocks and if the market doesn't fall apart there's a kind of interest of owning more and more because you have less reason to fear the downside. >> you know what i would love to see? this chart but showing just the month of january last year, as well. >> last year, yeah. >> a strong start to the year, as well. and then things tipped over. >> probably looking right here exactly, morgan. essentially, that was -- this was -- you're right. people were chasing the market higher in the regular season and then as you see, especially here

probably in the spring is when it fell apart. >> you said but back to this month it was up 7% in january. >> up 7%. >> if you have done -- >> just in the trading day and today it was up, you know, a fifth of a percent. >> mike, great stuff thank you for that moving on. starbucks stock jumping after the bell after beating on quarterly revenues joining us now is nick satian from wedbush securities. nick, we are looking for more details, guidance from the call and your takeaway on this print? >> well, we are looking for three metrics. america's comp at the high end of expectations. 3% to 4% came in at 4%. china, even though they were below consensus at 1%, buy side fears as low as negative 1% and the big beat on china. lastly looking at the share buyback number, about a

four-cent benefit in the quarter on top of the seven cents in terms of discrete tax items and in line quarter with the china beat and see that reflected in the after hours performance. >> pure china same store sales growth 1% is that not right? >> yeah. but the buy side fears were as low as negative 1% and a couple of trips through headquarters recently a lot of investors had come back feeling very nervous about that china number including thinking that it could be a negative number and the fact it was positive one was better than the buy side fears. >> nick, how important to the share price rally in the last couple of months has been that accelerated buyback of the company announced and where do you feel like we are in that process? is there room for another one? >> well, we basically bought back greater than 5% of the market cap 2 quarters in a row

here we should end that in february and so i think we're going to be back down to something in billion to billion and a half run rate sequentially. february will likely end as late as march and going forward that's a removal of one big support. >> nick, how important is the competition piece of the story i mean, we are hearing about more and more in china and seeing more of it here in the u.s. point to mcdonald's. you can also point to dunkin getting more aggressive with the cappuccinos, et cetera. >> competition is a very big deal that's what we're seeing in transactions flat. most of the u.s. comp, for example, is, you know, higher tax rates on food likely and the loyalty growth and are we seeing, you know, more not loyalty members come in. they have a couple of initiatives to bring in more non

loyalty members and the story is much the same. food is driving comp loyalty is driving comp. and the comp isn't coming from anywhere else. despite some of these other initiatives and the focus reverts back to how do we change the comp story a little bit? because the food, you know, even though it's benefiting the comp, it is hurting margins as it shifts to food and we have to figure out how to get the beverages to contribute more, as well. >> okay. thank you for joining us covering starbucks for us pared back the earlier gains and still up over a percent in the half and tomorrow the president and ceo kevin johnson on "squawk on the street." meantime, we have a news alert out of washington. ylan has the details hey. >> reporter: two sources say the ceos of the nation's biggest banks slated to testify before the house financial services committee in march including the ceos of jpmorgan,

goldman sachs, wells fargo, bank of america and one saying that citigroup would attend, as well. the topic for the hearing apparently evolving. generally about the health of the banks but we know that financial services wants to use its committee's hearings and its authority in order to conduct sort of more oversight style hearings for some of these ceos and also told it's likely confrontational and the ceos of the largest banks expected to testify in march, guys. >> ylan, i'm interested in the list of banks here that's five of the six biggest morgan stanley left off the list. >> reporter: i did mention morgan. >> oh, okay. sorry. all six of the biggest banks then either way, i think from the analyst community coming into this there's expectation whether the democrats taking control of the committee that we would see hearings for the likes of wells

fargo and goldman sachs and stock specific reasons for it. i don't know whether to take from this that all six are going to be included whether the tension will be reduced or whether all of the banks will be, you know, grilled as it were or the tone therefore more positive in general. >> reporter: you know, i think that maxine waters, the chairwoman of the committee, has said since at least last fall that she believes it is within her authority to call all of these ceos before the committee. we know that democrats are trying to sort of expand the powers of the committees in order to look at a broader array of both businesses and sort of public policy issues and as i said one source telling me that there could even be an attack feeling to this hearing, as well. so i would expect that the purpose is to grill the ceos and i would expect there to be fireworks, as well. >> okay. ylan, we look forward to that. as you say, no doubt heated

exchanges in the house. time now for a cnbc news update with sue herera >> hello again here's what's happening that the hour two senate bills to end the partial government shutdown failing the pass the first was a republican proposal to fund the wall. the second a democratic proposal to reopen the government without money for the wall both fell short of the 60 votes needed to advance the legislation. three farmer from upstate new york giving what they can do to help unpaid workers a did the albany international airport with potatoes, bread, eggs and steaks to tsa and faa workers. california officials investigating the cause of the october 2017 tubbs fire including the possible culpability of the pacific gas & electric determined it was caused by a private system and pg&e surging on the news and the

company said it faces what it calls quote potential significant liabilities. and high winds toppling a rocket in south texas. the winds knocking the nose cone off the starship in brownsville. spacex ceo elon musk tweeting it will take weeks to repair the damage i would think so that's the news update. >> lots of dollars, as well. >> yeah. sue, i believe this is a prototype of starship and called a hopper rocket. as they look to test this next generation heavy lift vehicle expected to take people to mars eventually. >> still >> a launch vehicle. >> is it >> i would have thought that's -- >> fantastic. >> there we go sue, thank you. >> you got it. see you tomorrow. let's get more earnings which have hit the tape in the last couple of minutes e-trade and western digital. >> wilfred, following dismal results of intel, western digital seeing a 27% decline in

revenue which also came in below street consensus earnings missed estimate by six cents. this is a company with significant exposure to chin the stock down significantly over the past three months and down about 3%. management said it's taking better actions to align the cost and expense structure. etrade, enings in line and revenue missing expectations at $735 million versus estimates. shares are down 3% back to you. >> seema, great stuff. thank you. we'll keep an eye on the decliners. facebook facing break-up calls and how realistic is it e ci the government breaks up thsoal media giant we'll discuss that next here don't go anywhere. ♪ hawaii is the first state in the u.s. to have a hundred percent renewable energy goal. if we don't make this move we're going to have changes in our environment,

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violations and the failure to protect user data. >> less than a week after a report said the ftc is considering a record fine. joining us now to discuss what it could take to break up the giant an s a former ftc commissioner. >> good afternoon. happy to be here. >> there's a couple of different themes at play here. what do you think is the most likely reason for firm action if it did take place on facebook? is it competition or competence? >> look. the extraordinary remedy of a divestiture doesn't take place very often or a break-up think about the last time we heard about that at&t and what do we have now? at&t so, it's such an unusual remedy. and it takes place on the anti-trust or competition side i don't think i'd ever heard it being used on a consumer

protection side which is where the data and privacy regulation lies so, the idea that you would ask for a company to be broken up for something on the consumer protection side is very unusual. >> but you could also argue highlights the fact maybe there aren't enough regulations or rules in place where things like privacy are concerned for some of these tech companies. >> there's a larger question i think we have always tried -- there's been a government void in which is this no one's had a good conversation with the american public about what's their reasonable privacy expectation. so that we have an expectation with regard to national security information. we have an expectation with regard to some forms of advertising. but no one is actually talked about this in a rational way to the american public. instead, people argued from the extremes yet these are all or nothing most of us relying on data to run the things we love every day, it's a more complicated

question than that so that's why it's going to be hard for them even -- somebody to seek regulation and no one's focused on what it is they want to regulate. >> is there a public consensus on the proper use of financial or health information before there were laws dictating how that data was utilized >> i think there was an internal consensus, for example, in financial services about data but i think that there's an understanding, a common understanding that financial and health data are the most sensitive pieces of information so people expect the highest levels of privacy. when i don't go anything beyond that people have various different expectations i think we have to have a talk about that and no one in government even the ftc has had really a robust discussion about, well, what are people expecting? and what is really happening out there? how are people really using their data

>> so for the data privacy to one side and come back do competition. >> sure. >> they have a huge amount of market share should that be addressed in its own right as an issue? >> anti-trust laws are interesting. they don't prevent the monopoly. they prevent monopoly power. so the mere fact you're big and successful is not in and of itself a violation of the law. >> so because facebook and instagram are free to use as services is that argument against them therefore put aside? >> no. it's not put aside but it's also a factor the fact that you have a free service and that people are using it and don't forget while there are -- there have been very visible stumbles, most people are using it successfully an i think people would be hard pressed to say that there's any technology in the past ten years that have done more to democratize data it's probably

facebook. >> i don't think there is a conversation going anywhere any time soon. we look forward to speaking with you more about it. thank you for joining us today. >> would be happy to. we have a news alert on the shutdown ylan mui has the latest in washington. >> we just saw chuck schumer leaving mitch mcconnell's office reporters tried to ask questions about what the meeting was about and chuck schumer said we're talking, we're talking as you know talking could be a sign of progress the white house has out this statement. they said that the meeting was to see whether or not the two leaders could work out of the deadlock the white house saying that a three-week stop gap funding measure to reopen the government would only work if there is a large down payment on the wall so we are now seeing perhaps some of the pieces of the puzzle come together as both republicans and democrats and now potentially the white house are looking for a way out of this shutdown, guys. >> ylan, thank you as always thank you very much.

shares of intel meantime sinking after poesisting a revenue missd declining guidance jon? >> yeah. investors gotten optimistic it seems. semiconductor stocks were higher in the session intel's now a bit below where it was at the lows of the week but overall in the client computing group, that tended to outperform over the last couple of quarters but it was actually a little bit weaker than the street was looking for. same goes for the data center group and then when intel kind of revisited 2019 guidance versus what they said in october a couple of points things looked shakier. notably with trade intel said back in october that the revenue headwinds and tailwinds were balanced. now they're saying that trade and macro concerns intensified especially with china and that the pricing on nan flash is

deteriorating and also said that operating margins slightly weaker than they had guided in october. so all of that combined with the optimism that investors had going into these earnings seems to have started to take the toll after hours. >> yeah. certainly, jon, the stock's down 6.5% right now on all of this. how important is it for the company to now find and announce a permanent ceo? >> quite apart from all of this. certain. >> important bob swan has been running the company for seven months while also continuing to be in charge of the cfo function and really we're going do see from the new ceo whoever that is really what the definition is around the pc business and the challenge that intel's facing from amd and then the internet of things business and this broader data economy that intel's been trying to address. they have really redefined the

way they talk about the business segments around data they want somebody leading the charge and explaining that, especially as we head into the era of 5g all about the internet of things. so certainly there have been a number of analyst ♪s in the past couple of days, couple of weeks saying that they hoped to hear about a new ceo, perhaps on today's call and some reaction could be because they haven't gotten definitive information on intel's next leader, as well. >> yeah. jon, all stuff for us to tackle come tomorrow. thank you for joining us today tomorrow we'll hear from bob swan, a first on cnbc interview at 11:15 a.m. ieastern. right, the government shutdown impacting air travel. the tsa issuing a major safety warning and a carrier said it lost it anstated15 eim $ million. the details next the engine management systems coordinate

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no worries boss, i'm one of the tattoo artists in the city. uh, aren't you supposed to draw it first? stay in your lane, bro. just ok is not ok. especially when it comes to your network. at&t is america's best wireless network, according to america's biggest test. now with 5g e. plus...buy a samsung galaxy s9 and get one free. only at at&t. welcome back as day 34 of the government shutdown continues, the tsa says an increasing number of its officers are facing financial difficulties commerce secretary ross was asked today on "squawk box" if he was aware unpaid government employees are struggling. >> i know they are and i don't really understand why because as i mentioned before the obligations that they would undertake, say a borrowing from a bank or a credit union, are in

effect federally guaranteed. so the 30 days of pay that some people will be out is no real reason why they shouldn't be able to get a loan against it. and we've seen a number of ads from financial institutions doing that >> well, airlines, too, are now starting to feel an impact from the shutdown amidst rising safety concerns. phil lebeau is live in chicago with the latest. phil >> reporter: it's not often we hear from the faa reassuring the public it's safe to fly and because people wonder about people in the faa or the tsa or air traffic controllers not reporting to work there's a concern that perhaps safety could be impacted and the faa issued a statement this afternoon and it's straightforward saying the traveling public can be assured that our nation's airspace system is safe the faa reviews and analyzes the poirps to assess the safety and

i fir efficiency and being clear there's stress being put on the system whether it's tsa agents not reporting to work because they can't make their ends meet or air traffic air traffic controllers who are not there so others have to cover their shifts the bottom line is this, it is stress and at this point the airlines are getting very worried. >> i don't think that is truly a safety issue because our business is so, so careful about being safe, but it certainly means longer lines at airports it meansless efficient travel through the airspace and it's going to have a huge impact on air travel before too long if indeed we can't figure it out. >> we talked with doug parker here at american's headquarters after the company reported better-than-expected for the fourth quarter the four that reported today, jetblue, southwest, american,

alaska after the bell, they all beat i travel a lot and i hear people saying to the tsa agents, i'm sorry about the situation. generally speaking, they're in pretty good spirits. yesterday one agent said to everybody, november 5th of 2020 next year, we're going to remember that's election day. somebody said does that mean you're going to vote against trump? he said i'm not going to say who i'm going to vote against, but i'm going to remember this. >> i want to come back to the earnings picture because it's been a theme for all sectors this earnings season, that expectations were low and, therefore, beats came through. is that certainly the theme coming through from these airlines perhaps in a more exaggerate sense that this is very low expectations being beaten as opposed to something that's going to continue throughout the rest of the year? >> you had a couple of things. you had a couple of airlines that was a little too aggressive in terms of their guidance going into the third and fourth quarter, as they brought down

their expectations, everyone said, oh, boy, what's wrong with the airlines, are they not going to make their expectations so they reported today and they beat those lowered expectations, generally speaking, and people are saying okay, does this mean all is well? when you look at 2019 wealth, generally speaking all of the airlines that reported earnings today along with delta and united last week, they're all expecting a pretty strong year so this concern that's out there that there's a slowdown in the economy, the airlines are not seeing that. they're definitely not seeing it in terms of bookings or in terms of revenue. >> okay, fphil, great stuff. thanks very much mike, in terms of the share prices, decent bounces today, but there's quite a lot of valuation gap between a delta and american, for example. >> as a group they look very cheap, if you set aside something like even southwest. the question has been, well, they always look cheap when the cycle is rolling over. so it looks like a lot of groups trying to fight their way back to say, look, we overdiscounted

a very weak economic picture in december, we're much of the way back from there but what could get us toward the highs? when can we get any confidence that the earnings trajectory is favorable? i think we're in limbo on that. >> i think this is a read on the state of the consumer which is a big reason why u.s. economic growth continues to be so much stronger than the rest of the world. >> those stocks up very nicely today. it's been bu aerona syftno of earnings. we'll recap the biggest movers coming up. don't go anywhere. without the constraints of a full time job? you can grow your retirement savings with pacific life and create the future that's most meaningful to you. which means you can retire, without retiring from life. having the flexibility to retire on your terms. that's the power of pacific. ask your financial professional about pacific life today.

up next, intel shares plunging on a revenue miss and light guidance those are down 6% right now. we'll look at alofho bl tseig after-hours movers, next ♪

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reporting earnings and revenue that topped revenue estimates. global sales also above expectations it's up 2%. intel plunging on earnings after missing on revenues an issuing light guidance for the first quarter. other chip stocks including amd and nvidia also falling in sympathy right now also shares of etrade falling after the company missed on fourth quarter revenues. those shares are down 4.5% right now. >> mike, again, what we come to is a lot of differentiation in earnings reports it's a stock pickers' market. >> interesting today because the intel disappointment and the stock reaction is going to be a slight gut check on one of the stronger groups from today. >> and it has weight on some of its peers as well. >> and the overall indexes may back off a little bit, so we're still in this churn mode trying to figure out if the market needs to reset lower or go sideways and idle for a little

while. some people think you don't get one of these sharp v bottoms, we may need a scare to give us a retest i think that's not where we are at this week. >> morgan, you'll have a take tomorrow on "squawk alley. >> you don't want to miss that. >> you also don't want to miss "fast money" which begins right now. "fast money starts right now. live from the nasdaq market site overlooking new york city's times square, i'm melissa lee. tonight on "fast," two big earnings movers. intel sinking, starbucks jumping after their reports. we're all over the conference calls and bring you the headlines as they break. intel's move comes after a massive rally for the chip stocks the group having its best day since march of '09 one technician says this is just the beginning of a bigger breakout. first, we start out with what lies beneath. it's been a relatively calm market and reboued