draft and this beautiful trophy? >> beautiful trophy here right here. >> we'll crown a champion on monday. >> can't touch it. you need gloves. >> like the stanley cup, right >> exactly all right. good show on monday. thanks for watching "power." have a great weekend. >> enjoy the super bowl. "closing bell" starts right now. ♪ happy friday, everyone welcome to the "closing bell." i'm sara eisen. >> i'm wilfred frost the january jobs report beating expectations despite the government shutdown. coming up, we'll talk to former treasury undersecretary john taylor about that report. plus, cypress semiconductor soaring on the heels of an earnings beat. the ceo joining us live with the outlook for the company and the sector first, though, look at the markets. modest gains and losses all day long and reaction to what was overall a much better jobs report in terms of the headline number than expected

and we were headed for an up week of almost 1% for the s&p 500. >> also strong exxon earnings and a decent oil prices meant that the energy sector is up 1.5% only real sector of gains. flattering perhaps oetherwise negative day. >> amazon's drag on tech not helping. >> absolutely. let's begin with the jobs report steve liesman has the story for us hi, steve. >> hi, wilf. the market digested a massive job growth number, a day or two after the fed pivoted towards a more dovish stance on rate hikes. here's the affect. the bond market gave back some of the strong gains from yesterday. you can't see all that yesterday and you will see that's up and then down about ten bases, 12 basis points after falling yesterday following the fed statement. nonfarm payrolls, 304. the estimate 170 so, you know, on or about

double revisions did take off a lot but it still left december north of 200,000. average hourly wages, one disappointment in there. unemployment rate, it's okay that it went up. people came in the work force and you can see that in the best participation since 2013 jim bullard telling cnbc the fed should wait an see before hiking rates and robert kaplan says it's very important that the fed get out of the way here and take no action in terms of the fed funds rate for the time being. and he suggested maybe through june despite the comments, some think the fed will forced to double rates. at pantheon, we see no support here for fed's shift and it will turn to dust recession the markets seems to price for last month not on the december data and so far it is not in the janda that either

we'll see if it shows up in the months ahead. >> so, that word came back today, steve goldilocks this idea that the economy's doing okay it's not a recession but we don't have really inflationary worries and the fed can stay pat is that kind of regime we're in. >> i think so. i might be in the minority thinking the fed will opportunistically will find places to raise if it can and not create major market volatility but i think the way to think about the fed right now, sara, three-month buckets. i don't think the fed shifts month to month to month even though there are press conferences and look at the first quarter did and then maybe take a look how the second quarter did. i tell you what. i know you have john taylor coming up. i want to hear what he thinks about the pivot and whether the fed went too far and if he would have done what the fed did this

week. >> we'll ask him. >> i bet you will. >> thank you very much steve lies maman. more on the shutdown me gloe negotiation let's bring in ylan mui. >> reporter: we have heard president trump touting the numbers saying he wasn't shocked by the data. we know shat shutdown did not prevent businesses from hiring and the bls said there was no impact on employment, wages or hours worked all of that is data that comes from the establishment survey. however, the household survey generating the unemployment rate tells a slightly different story. there are 175,000 furloughed federal worker that is showed up on temporary leave that helped nudge the unemployment rate to 4.0% there were also 500,000 more people who have reported working part time for economic reasons and the bls said that was likely

the impact of the shutdown on private contractors and other business that is rely on the federal government so there really is risk here for both sides of this. nancy pelosi was already out saying even though the headline numbers were strong that belies the financial damage done to federal workers during think shutdown of course, the white house had its own press release saying that president trump's policies keeping the economic boom going and i think the bottom line is the numbers are not likely to move the needle on shutdown negotiations the real number to watch is how many dollars democrats are able to give and willing to give on border security and whether or not that's enough for president trump. >> what about the president's own tone, though, today, ylan, on what to expect on the days ahead relating to the negotiations of china data and shutdown >> reporter: i think it doesn't weak b his haen his hand and i w

that it strengthens it the discussion here on capitol hill is really all about the dollars, the appropriations. president trump today and some sense undermining the work that this bipartisan committee is doing saying that it's a waste of time, this is all about a wall so we're going back to the rhetoric that we heard back at the start of the original shutdown negotiations. and i think that that is where you're going to see folks start to take positions rather than around the economy the fact that the numbers were strong is sort of an indication gnat economy is off the table. maybe a second or a third tier argument but it's not the crux of the debate and the discussion here on capitol hill. >> okay. ylan, thank you very much for that let's discuss further with david and rick santelli. very good afternoon to you both. we have a pretty typical

snapshot last six months or so in terms of data strong from the u.s. weak from the rest of the world. >> even within the ism the domestic side was better the export number fell to the lowest level since 2016 and the question is, can the weakness overseas impact the u.s. economy to a greater extent? it is the u.s. consumer holding the u.s. economy on its shoulders as other aspects of the economy are certainly slowing. >> rick, wanted to get your take on the jobs report because to me i think it vindicated the fed's new position strong economy which is what they have been talking about but muted inflation expectations. >> i completely agree, sara. i completely agree with steve that a pause doesn't mean we're on the precipice of a whole easing cycle i think it's highly likely that the pause will demonstrate the economy's doing pretty well and i think investors and the fed

alike won't necessarily have a problem grabbing a few more insurance quarter point rate hikes. that's the way i see it and the data more important in so many other ways of course, we haven't had a lot of data with the partial shutdown we discussed this yesterday. i think that was a variable in the market today the strong data, the two months averaged together for jobs even with the big revision is 263,000, six months in a row, 3% or higher on average hourly earnings year over year. but maybe the most important aspect to this is that even though peter is right that we will feel the effects of overseas i don't look at the consumers holding things up. i look at us that we're lucky that the consumer is strong, tax reform is helping them no matter what people say and i think that will continue and i think investors will be more prone to invest in the u.s. and i think that indeed will give the equity

markets a boost, as well >> peter, despite that, if the data overseas does continue to soften, what do you expect to happen to the dollar even though we have a fairly dovish tone from the fed expected to last for at least half of this year >> i'm amazed how well the euro and yen trades against the dollar i think a lot of that certainly has to do with the easier fed and the dovish approach they're taking to monetary policy. but i also wonder whether the rising debt and deficits is impacting the dollar looking at europe, germany grows 1% estimated this year for the euro zone you have a on handle on growth 40% of the ecb sheet i think that says a lot about the challenging situation that the dollar is in

and that the fed dovishness is adding to that. >> so, rick, what about the other data that we got today how much is meaningful given the shutdown and the delays and the fact it's sort of back ward looking and what sort of economic signals to look for for a clean read on what's going on? >> i love market forensics, sara if you take a two or five-minute chart of any instrument on the curve and you look at it, the 8:30 eastern data definitely helped but it was the 10:00 eastern data that really propelled rates higher, the strong ism it was a better read on the final january university of michigan than the mid-month read construction spending rebounded strong the only fly in the ointment is those data points that quickly gave investors some optimism that during that blackout period where they couldn't see some of

the data points what's showing up shows that we really didn't miss a step, granted not as good as a year ago and much better than many were thinking just several sessions ago >> so, peter, add it all up. are you a buyer of stocks in this environment the economy fundamentals look better than expected given the government shutdown, the trade war, the fed angst and everything else. >> the consumer confidence number even the final read was the lowest since october 2016. the month before the election. the ism manufacturing number was a rebound and the second worst read in 18 months. so i am not going to ignore what's going on overseas and think it won't impact the u.s. the jobs number was good i am very confident that wages will continue to improve but i still expect growth to slow and i listened to a lot of earnings conference calls and definitely a level of hesitance out there with what's going overseas and companies wondering how it will affect the u.s.

growth so even with this bounce back in equities - >> you are not there >> i'm still not there. >> all right. >> okay, guys. thank you both very much have lovely weekends still ahead here on the "closing bell," we'll speak with john taylor about the big january jobs report and the impact the trade negotiations could have on the u.s. economy. look atcypress semiconductor. the company ceo join us on those results and the outlook for the industry ♪ ♪ let's go from plans... to full-blown production. ♪ ♪ let's go from being on-call... ♪ ♪ to being on-line. american express can help move your business forward with loans, vendor payments and buying power.

chat with one of our 4000 specialists and let's make it happen. the powerful backing of american express. don't do business without it.

♪ welcome back to the "closing bell." 45 minutes to go in trade. dow is flat. there are pockets of strength in the overall market energy, oil prices higher. financials are also doing well today. higher yields. consumer discretionary is the laggard thanks in part to amazon also weighing on the nasdaq. >> financials weak today, still negative had a bad couple of days coming into this. shares of amazon falling

today after yesterday's close. d. bosa joins us with more on what's weighing on the stock. >> shares in a bear market today reflecting the slower growing bigger spending amazon as a company says, to expect more investments in year, we can take a look at its last big bet that is its whole foods acquisition and push into brick and mortar the results are disappointing by amazon standards mostly whole foods and the bookstores and amazon go stores and contracted 3%. management said it was affected by the calendar and doesn't include online and apples to apples basis cfo said it was more like 6% growth but even so, guys, the grocery and brick and mortar push is one of the worst performing business units. third party sellers services

sales accelerating 28% so amazon keep in mind has been pushing into the grocery space for more than a decade whole foods was the big bet and so far it's unclear that it and the physical retail stores will help grow its top line >> so, deirdre or d. as wilfred would say, are the analysts saying to hang in on the stock you outlined some complaints ultimately, is this still a stock that almost 100% of them say buy? >> sara, the analysts' reaction is missed. you had a few price targets upped or lowered and asking the bigger picture and i think that's intact. according to analysts, no huge moves or downgrades in terms of sells. so the idea with amazon, of course, commands a huge premium especially even to other big tech companies and investing for the future and make longer to get there and may not see this

blockbuster growth we have seen over the last decade of amazon's existence, few decades. >> got it. big decline today down 5.4%. deirdre bosa, thank you. i wanted you to thank her. you're the only one that calls her d. >> at her request. we just had a little bit of a move down and back up in the last hour. all four were negative momentarily. >> things are lifting with materials and industrials and health care turning green. coming up, a top auto expert joining us to break down whether the temperatures and the shutdown impacted january sales. and after the break, we'll head to the site of the super bowl for an interview with ceo jason robins as more states than ever allow bigetng bti on sunday's big game. don't go anywhere.

it's about technology transforming every sector. ♪ at pgim, our bottom-up approach uses a technology lens to identify long-term winners. from energy... to real estate... to retail. finding such opportunities for alpha is the true value of active investing. and around the world, you have a partner in that pursuit. pgim: the global investment management businesses of prudential. the global investment management your mornings were made for than psoriatic arthritis. as you and your rheumatologist consider treatments, ask if xeljanz xr is right for you. xeljanz xr is a once daily pill for psoriatic arthritis. taken with methotrexate or similar medicines, it can reduce joint pain... ...swelling and significantly improve physical function.

xeljanz xr can lower your ability to fight infections, including tuberculosis. serious, sometimes fatal infections and cancers, including lymphoma, have happened. as have tears in the stomach or intestines, serious allergic reactions, low blood cell counts, higher liver tests and cholesterol levels. don't start xeljanz xr if you have an infection. your doctor should perform blood tests before and while taking xeljanz xr, and monitor certain liver tests. tell your doctor if you've been somewhere fungal infections are common and if you have had tb, hepatitis b or c, or are prone to infections. xeljanz xr can reduce the symptoms of psoriatic arthritis. don't let another morning go by without talking to your rheumatologist about xeljanz xr. so, servicenow put your workflows immhm. cloud, huh? your employees must love you. [ chuckles ] thank you. you could say that. i love you. servicenow works for you.

welcome back to the "closing bell." we have got just under 40 minutes left of trade. there's the dow higher you can see briefly dipped lower in the last 30 minutes or so but back into positive territory it is the outperformer at the moment of the major indices. declines for the s&p and nasdaq. all eyes on super bowl liii this weekend with more states legalizing sports betting we could see record numbers of betting on this year's game.

joining us, draftkings ceo jason robins welcome back. >> hi. >> tell us about volume. is this the biggest day of the year what is it like versus normal days >> super bowl sunday is the biggest day of the year, for sure you know it's the biggest sporting event of the year and not surprising the biggest day of the year for us the numbers are actually still, you know, tdb because we are a few days away but closer to game time it ramps and we're seeing every single hour accelerated activity i have heard people estimate there could be over $100 million bet in new jersey on the super bowl this year which would be amazing. >> coming to the sports book, clearly so many different individual things you can place bets on. how hard has it been to price these things up given that it's a relatively new industry here in the u.s.? are you just copying the odds that you see overseas or is this a much more complicated and

entry ka intricate process? >> you are right there's an established overseas market. there's also a black market, unfortunately, which we are trying to disrupt and lots of places to go look and so much access with online and mobile and majority of people bet online and mobile including the black market and everybody gravitates to the same place the odds aren't that different sometimes you run promotions to say you have the best odds on this particular bet here, try to get customers but the true odds are kind of similar company to company because everyone has such access to information realtime >> so, jason, on a bag game where there's a large game and you hope that the math and averages play out in your favor, what kind of margin do you open to make? >> we are in the 5% to 7% margin range and don't get too hung up on any individual event. like anything with one time,

anything can happen just like in the game no matter who's a better team or worse on any given sunday and can't get worried of the margin on the super bowl. we look at more monthly and annual and quarterly margins. >> how do you make draftkings the preferred platform >> it is all about customer experience if you have the best customer experience, that's where people want to be and where we're investing. we do marketing to attract customers but in the end you can bring as many people as you want to the platform and won't stay and find other places if you don't give them the best experience and where we are doubling and tripling down and making it the biggest area of investment for the remaining years we are running the company. >> jason, as this is more legalized and mainstream, do you fear irresponsible betting addiction? i guess, the uk is already some decades ahead of the u.s. market

in this regard and currently going through a soul searching in the industry as to whether things should be banned and legalization should be withdrawn in certain areas because of the problems it creates. >> well, this is another reason i think having a legal regulated system is better for society so, you know, what people forget is no matter what black market or legal and regulated people are going to do this there's already upwards of hundreds of billions of dollars bet illegally in the black market in the u.s. this year we unlike those places have self exclusion, opt-out lists so if people are known to have a gambling issue we don't let them play and regulations and rules around this stuff. so you know, we also pride ourselves in really trying to be responsible here this is an issue we believe is really important to get out ahead of and not good business and not good for anybody to have those types of things. and it's a very low percentage

so, you know, it is not like it's something that's rampant but we obviously want to have it be as close to zero as possible and having real rules and regulations of people going on shady black market offshore markets is the best way to do this. >> jason, to that point, this time next year how much advancement do you anticipate will make on sports gambling by state? >> i think you're going to see another half dozen to ten states pass legislation in this -- 2019 you know, how long it takes each of them to get it up and running is a guess i've seen new jersey in two to three months and other states going on almost a year now since they passed a bill and haven't gotten going and varies depending on the infrastructure but the momentum is real and i think you're going do see a lot of movement again this year. already eight states have legalized this in some form or another. >> jason, do you offer odds yet? i know in new jersey on the english premier league or not?

>> of course >> selfishly asks. >> yeah. we have 60 different sports available. not all of them approved yet by the new jersey department of gaming enforcement but a lot of good betting it's a popular sport for us, actually. >> patriots are 2 1/2-point favorites. who do you have? >> from a fan stand point, the company is in boston i'm from boston. you can guess where i'm leaning. it is a nfl game between two great teams and, you know, last time the patriots played the rams in the super bowl i think it was a 14 or 14 1/2-point favorite for the rams and the patriots won you never know what will happen. >> patriots always win jason, thank you. >> thank you very much. >> thank you also go to the rugby this weekend. >> oh. >> it is on nbc sports before you say something -- she already started. anyway -- after the break, john taylor

will weigh in on with us on the big macro informion otatwe g over the last couple of days for decades banks have been getting away with it. charging you excess fees. making you wait in line. keeping billions of dollars of your interest. they've been treating you like you're lucky to have them. that's not right. show them who's the boss of your money. you. better is out there.

ally. do it right. ♪ ♪ put your data to work on the cloud that drives business. the ibm cloud. the cloud for smarter business.

♪ welcome back to the "closing bell." we have just under 30 minutes

left of trade. the dow in positive territory. the s&p just negative. the nasdaq down a third of 1%. consumer discretionary at the bottom down almost 2%. energy at the top. exxon in particular doing well after the numbers earlier. we should say week to date up over 1%, nearly 1.5% for each of the three major indices. we have a news alert on delta phil >> reuters saying the company is talking about selling its oil refinery, the one that it owns in trainer, pennsylvania for several months delta made it clear it's looking for a partner to run and operate the facility and according to reuters delta is redoubling the efforts and looking for somebody to buy it outright and delta has no comment regarding this report. guys, did dynamics of the refinery business, they have shifted dramatically over the past ten years

so it's not surprising given the fact they were looking for a partner they might be expanding that saying, you know what better off for somebody else to run it. >> see what happens there. phil, thank you. time now for a cnbc news update with sue herera. >> here's what's happening at this hour, everyone, a powerful 6.5 magnitude earthquake rattled mexico reports say that the squak caused minor damage, caused the buildings to sway but so so far no word of injuries. keep your drones on the ground that is the message from fbi officials tasked with keeping the sky over this weekend's super bowl safe. pilots who don't heed those warnings will be arrested and could face charges officials confiscated several devices. a historic building on clemson university is now gone after an early morning blaze

no one was inside the fitness and wellness center when the fire broke out. a new warning for parents about the dangers of vaping. a new study looked at the responses of 6,000 teens and found that those who used e-cigarettes were four times more likely to become smokers than those who had never tried vaping you're up to date. that's the news update, guys i'll see you again in about an hour >> great stuff see you then sue herera. despite the longest government shutdown in u.s. history, u.s. job growth in j january beat expectations. joining us now to discuss john taylor from the hoover institution and former undersecretary for international affairs. thank you for joining us, john with that data, my first question is, did the fed change its tone too much over the last couple of months >> i think the fed has struggled

to get on the right message and you saw a little bit of that in the last few months, partly because they're debating where they're going, what the rate will be eventually, what the balance sheet will be eventually so maybe they have been too flexible and adjusting this -- the remainder of this year, the next few meetings. >> how do you think that they're reading inflation right now, john i mean, the wage gains were pretty moderate and overall we saw the moderation in commodity prices and still in a hot economy. >> it's a good economy the employment numbers are great. i think 2018 will be the strongest year in the recovery i think some of the actions on the tax reform and the regulatory reform are paying off and for that matter some of the fed normalization is paid off. but the inflation rate is good right now. it's not picking up. that's a good sign so -- but the fed has to think

about normalizing its rate and that's what they had planned to do i think they'll continue to do it this year but taking into account the markets more than they had before this time. >> john, when you consider that relative economic strength, also the fact that the stock market stabilize, do you think the president should only settle his trade dispute with china for a full and frank deal rather than something in the middle ground >> i think it's important to get a deal i think there's some things that the chinese ought to be doing. we have mentioned those things, whether it's tariffs, whether it's investment restrictions so i think there's a chance there's going to be something good obviously can't be superficial people will see through that right away and a good sign and builds on the things like the revision of nafta, stuff with europe so we got the stuff with china settled i think it's good for the economy. we are not quite there yet obviously. >> what's the prognosis for

2019 some people think we slow a little bit in the u.s. and some people are looking at consumer confidence and some other forward looking indicators and the market turbulence last year and wondering if we slow pretty substantially. >> yeah. i'm of the view we would n't get that much of a slowdown. i think the changes in policy put in place more longer lasting, not forever, of course. i think 2018 was good. 2019 might not be as good. but i think a lot of the things in place, people, of course, worry when the expansion gets to be so long and as they always say as economists say expansions don't die of old age and there are still good things in the works and getting the trade stuff settled out, i'm worried of the debt and deficit and hopefully address that and the biggest uncertainty is the trade and how the fed is going to adjust the rest of this year >> do you feel particularly, john, given where some of the

other central banks are, still negative territory is my point, that the mutual rates or the essential rate where they should just stand in the meantime is much lower than it was a decade or so ago? >> i think the fed has done a lot of work on this. john williams, president of new york fed did a lot and reduced the estimate of the so-called real neutral rate. from two to maybe about one and means that the nominal rate would be three rather than four. that's where they were aiming. i think they're continuing to aim in that direction and the best consensus down a little bit but the negative rates around the world are still negative and i think there needs to be global normalization global normalization the fed is part of that, ecb and bank of japan is part of that and have a more stability economic system in globally and in the u.s. with the normalized position before too long.

>> john, there's still vacancies on the fed your name comes up have you had any conversations with the administration? do you think someone like h herrmaherman kane would be a good addition? >> people talking to the white house, interviews, i think it's important to fill out the fed. they're a little short just go ahead. there's been people nominated. but i don't know the particular individuals at this point. but some experience with monetary policy is important theknow how the markets work know how economists work at the fed. models i think and rules is very important so people who have that experience is really the ones to be looking at. >> says the father of the taylor rule. >> yes. >> thank you, john. >> thank you. >> thank you very much for

joining us. shares of exxonmobil jumping after reporting earnings this morning and comments from the ceo on oil prices next. later, breaking down the winners and losers of the january auto sales report. "closing bell" back after a quick break wiheowp th t d u54 points

welcome back to the "closing bell." let's check in on some individual movers at this hour yum china, it is rising after mixed earnings after the bell last night missed on revenue and beat same store sales expectations increasing by 2% compared to estimates of being down. the story was strength at kfc, weakness at pizza hutd and of course this is yum over in china so it's kind of gotten dragged in with the worries of the chinese slowdown and the trade war and actually it was an upbeat earnings call and went through the conference call and no mention of trade tensions on there. maybe a little bit of preparing for softness but overall a lot of talk of innovation and delivery when it comes to kfc and gotten into breakfast and desserts and apparently been a hit in china. >> i think in general, not

american brands are getting hit in the consumers' eyes but price points and general slowdown hurting higher end goods in china. same store sales growth expected to be flat to negative. >> up 2%. i'm watching exxonmobil today which, of course, is powering the s&p energy sector higher up 3%. reported earnings before the bell today revenue in line. the company missed -- well, revenue slightly eps growth and saw total production of oil and gas rise this is the ceo addressing oil prices as opposed to the earnings, in particular what he thought made oil prices drop late last year >> now, i think if you look at demand, demand's been pretty robust through last year and may come off a little bit this year and continue to see a reasonably healthy demand i think that was more of a supply play and obviously

difficult to always strike the balance in realtime. i think the market had anticipated the iranian sanctions and what came off, what production to come off there with the wavers less than anticipated. opec may have produced more than they -- wanted to in terms of keeping that market balanced and took a little while for the market to recorrect. >> interesting to see that the jump today on this earnings beat also from shell yesterday. these -- you know, these stocks are decent dividend yields and now that they show the decent cash flow coming through and catch a bid from him. >> interesting to see energy shares in the s&p, best performing sector of the day, the week, the year so far after the worst performing sector of 2018 potentially playing the catch up. we have a market flash here on anheuser busch. seema mody with the details on that. >> watching shares of anheuser busch rise on a report that the

beer company is working with bankers to take the asia unit public and working with jpmorgan and morgan stanley and the ipo reportedly raise as much as $5 billion and a way for the conglomerate to unlock value and pay down some of the debt after a number of acquisitions it made in the beer and spirits sector you can see the stock is up about .8%. sara, back to you. >> seema, thank you. >> interesting thing is they started to carve off certain brands so that they could potentially do something with their asia business that they in terms of sold one or two - >> coming. after the big -- >> we don't know what exactly was coming and some kind of ability to reshape the portfolio i think was on the cards and a little bit of a pop as seema said 15 minutes here to go before the closing bell let's show you where we stand right now. more than 1% gains for all the three major averages for the week though the action is more muted today, the dow's up about 47 points

the s&p 500 is flat. nasdaq actually negative thanks in part to amazon. russell 2000 flat. up next, a read on the auto sector with january sales out. later, the ceo of cypress semiconductor to talk about e n earnings and the chip space. [leaf blower] you should be mad at leaf blowers. [beep] you should be mad your neighbor always wants to hang out. and you should be mad your smart fridge is unnecessarily complicated.

but you're not mad, because you have e*trade which isn't complicated. their tools make trading quicker and simpler. so you can take on the markets with confidence. don't get mad. get e*trade and start trading today. has been excellent. they really appreciate the military family and it really shows. with all that usaa offers why go with anybody else? we know their rates are good, we know that they're always going to take care of us. it was an instant savings and i should have changed a long time ago. it was funny because when we would call another insurance company, hey would say "oh we can't beat usaa" we're the webber family. we're the tenney's we're the hayles, and we're usaa members for life. ♪ get your usaa auto insurance quote today.

and the army taught me a lot about commitment. which i apply to my life and my work. at comcast we're commited to delivering the best experience possible, by being on time everytime. and if we are ever late, we'll give you a automatic twenty dollar credit. my name is antonio and i'm a technician at comcast. we're working to make things simple, easy and awesome.

americans keep heading to auto dealers to buy new cars despite the freezing temperatures let's go to phil lebeau for an update on the numbers. >> there was a hit in terms of volume talking with dealers. they'll tell you that the cold weather probably kept the crowds down a little bit and not sales that are going away completely simply means most of the people likely back in february. overall, we don't hear from gm and ford on a monthly basis anymore. here's what we are seeing from the automakers and most of these sales by the way for the month of january compared with last year were in line with expectations, maybe a smidge under what people expected overall the sales rate for the industry in january is believed to be coming in somewhere between 16.7 and 16.9 million vehicles for a point of reference, last year we were actually up

slightly compared to 2017 and total sales rate 17.3 million vehicles a. couple of stocks to keep in mind fiat chrysler reporting on a monthly bases reporting ram pickup sales up 19.3%. by the way, fiat chrysler reporting fourth quarter earnings on thursday and shares of general motors, it reports its earnings next wednesday. guys, gm is also in the process of finalizing the job cut that is they announced back in the fourth quarter some of those are now going through in the next couple of days over the next couple of weeks. these are the white collar job cuts the ones who have already taken the voluntary separation, those have already basically been meted through and know those get attention over the next few days. >> phil, stay with us. we'll continue this discussion and bring in jamie valentine from mile one auto group

thank you for joining us i guess firstly on the month lisa that year over year we are looking at a slight decline certainly for new car sales and was that to be expected? >> yeah. first of all, thank you for having me and good to be here with you and as i'm immersing myself in the dealerships we see the retail trend sales as you said flat to slightly down and lots of opportunities to take share and chevrolet in the mid-atlantic region where we operate did quite well this month. phil talked about weather trends a negative impact broadly and less so on the east coast and the federal government we expect it to maybe come back in february. so not all lost at this point. >> so, phil, i'm looking at the share price performance and they have come roaring back to life a little bit this year after underperforming this year. >> right. >> i think up 14.5% so far what are the prospects like for the rest of the year we will continue to get numbers like this to keep boosting the

share prices >> it's a little bit muddied in part the reason why is because you have some companies like general motors which have already laid out their guidance for 2019 and they said, look, we plan to be growing our revenue and our profits "x" percent in 2019 and then ford coming out and not giving guidance at this point so while we have seen the shares rebound a bit, keep in mind there was a lot of pressure built on the auto stocks, particularly in the third quarter of last year so even though january was better, i'm not sure you can extrapolate that for the rest of the year. >> jamie, does a pausing and dovish fed increase the likely demand for the broader sector or rates ands if not a question >> we have seen rates widely or credit widely available across all credit classes and whether you calm that with inventory being relatively lean,

you know, these aren't the concerns considering how late we are in the new vehicle sales cycle and at a plateauing phase and good to see credit is still holding up and don't see that as a concern and should allow consumers to get in the more expensive trucks and yuletity vehicles shifting away from cars. >> so what's your expectation, jamie, from your post of what 2019 holds >> sure. i think, you know, for dealers that have capital to put to work like ourselves, it's going to be a consolidation year seeing the m and a pipeline really build and good to be in a position of a balance sheet perspective and taking share in the core markets definitely more of a grind in the new vehicle side and looking to used retail, the finance and insurance business, always opportunities to do better there. and look we are in a position where technicians and sales people, a shortage in the industry and more of a race for talent, as well if you're in a good position with capital and talent, you can do better in a slightly

declining retail environment >> and just to confirm, jamie, the new post is vice president of mile one, not at the white house. >> as far as i know that's exactly right. >> deceptive shot. >> deceptive background for you. phil, what are we looking at for the week ahead >> well, you have ge on wednesday. fiat chrysler on thursday and for both of those companies the big focus is going to be the rest of 2019 we already have the guidance from general motors. they gave it to us a couple of weeks ago and why the stock moved higher on thursday let's hear what mike manly of fiat chrysler has to say about adding more assembly lines and capacity continuing to expand that jeep line. >> okay, guys. thank you both very much phil below, jamie aveltine. >> thank you. >> we'll be back before the

closing bell 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. ♪ his family. his steinway, which met a burst pipe. so grant met his insurance: you are caller number 12. which didn't quite cover the steinway. but what if he'd met pure insurance? owned by members. he'd have met: lisa, your member advocate. who'd introduce him to gustav: leave it to me. a temporary address, temporary ivory, and help him get tickets to the mozart festival.

excuse me, grant likes beethoven! uh, the beethoven festival. pure. love your insurance. each day our planet awakens but with opportunity comes risk. and to manage this risk, the world turns to cme group. we help farmers lock in future prices, banks manage interest rate changes and airlines hedge fuel costs. all so they can manage their risks and move forward. it's simply a matter of following the signs. they all lead here. cme group - how the world advances. so, servicenow put your workflows immhm. cloud, huh? your employees must love you. [ chuckles ] thank you. you could say that. i love you. servicenow works for you.

don't get mad. get e*trade, dawg. welcome back to the "closing bell." just a couple of minutes left of trade. we have had a nice little run in this last 20 minutes of trade such that the dow and the s&p both positive as we approach the close. the nasdaq still negative.

1.3% to 1.5% of returns. sectors consumer discretionary bottom amazon weighing that down. oil prices today, having a nice little pop up. good numbers from exxon this morning. looking at the ten-year treasury week to date you can see it decline this week with the dovish tone out of the fed and a jump today off the back of that stronger than expected jobs number helping the financials today but if we look at the sectors week to date, it is top today and financials decent today and suffered over the week as a whole financials towards the bottom. flat for the week. energy very much top, consumer staples also doing well and real estate fairly defensive rally for the week as a whole other than oil prices which have propped up

energy bob? >> exxon, chevron better than expected that helped today. little disappointing on the bank action the banks fell apart goldman was strong went negative. jpmorgan just barely positive as you can see here interesting with merck we are getting the companies of guidance of 2019 is rolling out, it is just good enough it is either at expectations or a little bit better and they're not selling off on that. that's a sign -- i think a positive sign. if you're negative or disappoint you go down and close enough to 2019 expectations is fine. people kept asking me today, wait a minute. the ism really strong. jobs was really strong isn't there a chance the fed will hike rates? yes, there is. the market believes -- >> not soon, bob. >> just saying that is a rational question to ask and a lot of people did and the market's acting like it is not a problem now. i think it may be. down the road. overall. i am just saying that.

i still think it's an issue to deal with. but did bottom line is we have six consecutive weeks of gains that's the bottom line. >> very nice, indeed bob pisa no, thank you very much bud light and pepsico. both will be in the advertising on sunday's super bowl no doubt. just about seven basis points on the s&p. that does it for first hour of "closing bell. sara, back to you. ♪ wrapping up a strong week here on wall street. welcome to the "closing bell." i'm sara eisen wilfred frost will rejoin me in a moment along with mike santoli. let's take a look at how we finished up the day on wall street modest action. the dow managed to close higher with a quarter percentage point gain there s&p 500 was flat masking some

pockets of strength in the overall market like energy thanks in part to earnings and renewed comeback in the price of oil and consumer discretionary and the nasdaq weak all day thanks in part to amazon's more than 5.5% plunge on the day. we'll get to that. russell 2000 index up .2% almost for the week, we have a gain of at least 1% for all the major averages 1.5% for the s&p 500 on the week so, here are the stories on the radar for investors. amazon, worst performing stock in the s&p after worse than expected revenue guidance and then exxon and chevron surging and we'll discuss when's behind this week's gains in emerging markets. plus get to the outlook for the surging semiconductor industry and speaking to the ceo of cypress semi all this hour. first up, though, the market, joining us is michael zin at ubs

financial services mike, lackluster reaction to what was overall a strong jobs report. >> yes. >> strong performance on the week. >> the jobs number didn't have as much of an affect of getting priced into the market obviously after the fed with the three-month average very strong and basically confirming what the market's message has been which is that december was an overdone panic on the growth situation but i think we are at a what now moment. it's another logical moment to pause and today's action very steady, contained, a lot of back and forth. volatility index down in the normal range around 16 i think the market's built up an accusation for itself and nothing about today's action i don't think is alarming or surprising. >> does the downward revision fur last month's job number justify the change in tone than maybe we realized in the week? >> i don't think the fed was

keying off of jobs at all. look, 3.2%, in theory, could have kept the fed in the game and if we had not had a downward revision and had the net new jobs you would have even more questioning about whether the fed panicked. >> i don't know. inflation expectations are fairly muted global growth which is slowing michael, tighter financial conditions and been a strong run in january and now closing at levels that take us back to december 3rd for the dow and the s&p. >> i think you can feel the market trying to understand how to regard the fed. in december we'll let you cry it out and then powell got much more dovish, policy dricven and sensitive and now maybe they'll cut to the jobs report was pretty strong. the ism pretty strong. pretty big bounce actually in inflation expectations now pretty big bounce in oil so is

the fed going to start hiking rates? are they going to hike once or twice? i don't think the market knows and i think that's why the strong macro numbers today gave the market a little congestion. >> can they change their mind, michael, as quickly as next meeting or would they have to no matter how strong the data is wait a little bit longer given the about-face turn we have seen >> i don't think change their minds in terms of hiking in march. i think that's highly unlikely and i think that folks are thinking about june or september rather if it's going to happen but you certainly could see messaging begin to change. i think that's what the market is trying to figure here are we going to get higher rates in 2019? i think we don't know yet. >> nothing substantive changed words have changed messages have changed. but they hiked when they were supposed to in december. nobody expected them to do anything in january. you mentioned financial conditions, sara nothing from the fed hike in december until now is tighter in

terms of financial conditions. it's all looser. dollar's down. vix is down. credit - >> they were spooked. >> tighter from august to october and november but between then and now, yes, they were spooked. they didn't want to reinforce the idea we won't try to get ahead of this. >> if you are long u.s. stocks, certainly thank the fed for the week and my chart of the week is eem, the etf tracking emerging markets and had a very strong week everybody loves emerging markets right now. i can't tell you the strategists saying the fed is taking a breather the dollar is weak is that a crowded bet? >> i wouldn't say it's crowded you have had the valuation argument there for a long time i think what you probably need to see is dollar weakness. you did see the dollar begin to flirt with the 200 day on the downside but i think it does go back to

the fed because if you don't get weak dollar you don't normally see emerging markets really outperforming in a way that's super helpful. >> a weak dollar, also weak dollar if that allows china to fully, you know, go guns blazing with stimulus, right? without risk of the worst currency affects i think that makes sense. >> the fed pause is felt all over the world. >> it is certainly but equally interesting to look at january where we saw markets, of course, take off significantly the u.s. absolutely led the charge there. yes, you saw decent returns globally and in europe it was more like mid single digits and in asia less than that apart from china that was good and to that point, yes, a soft dollar for the course of year to date but it's only down 0.6% and again china was the best performing of the ems for the month of january and we did see a big move in the chinese yuan

and the dollar is clearly important and for the year to date performance it's not moved that 34umuch. >> and in the bottom, latter part of december when the u.s. had the final spike lower emerging markets and chinese stocks outperformed and like they led the way down and global markets and bottomed earlier. >> which do you want to have, michael? domestic mind-set on concerns of slowdown of places like europe, or you want to go abroad where the valuations look better and with the fed on hold there's breathing room >> i would stay mostly u.s. because i think that we have seen the fed say we will help you if you get in a rough patch. i think that's now clear but i think we are close to the end of the cycle that not being too cyclical in positioning i think makes sense and since the u.s. is a predominantly consumer driven less cyclical driven market than almost any market

you can find i place the bets on the safer bet in the u.s. >> let's talk about amazon falling today despite a beat on the top and bottom line yesterday after the close after issuing lighter full-year guidance than expected and after the cfo warned amazon will see an increase in investment compared to 2018 and, mike, i guess all comes back to what it does to the margin, dthe bottom line and th valuation there for a relatively -- very mature company, growing fast and mature. >> yes to some degree the premise of investors that rushed back into amazon from the lows, a story line said amazon is harvesting mode they have shown rising and outperforming profits a couple of quarters in a row and changes the story. nothing really new from the long term perspective with amazon they go through the heavy investment cycles. the company probably thinks it's doing nothing dirfferent.

growing fast and not as fast i think it's -- to me, a 5% move down is a big deal. >> and i know you don't talk individual stocks but it gets into whether you want to be in growth or want to be in value. if you want to be in this market right now. >> yeah. i'll just say generally one thing i think did stand out and a question for reporters next week was the advertise sector of that that's something that people are going to want to look at and whether that's a read-through or something that other online advertisers are still being able to - >> we have alphabet. >> up 100% or nearly year over year and not - >> that was a moderation i guess in growth. >> yeah. but it's more of a structural threat i guess to the other name ice that's the question to be answered. >> do you want to be in the stock that is led the market for the last few years like an amazon or more shift to value? >> i personally think i would stay with the growth because i think we're sort of late cycle.

having said that, i think in the industrial prints of this week i think you saw some really nice stuff. you saw some real good return on investment in the big integrated industrials with great products. the cycle lasted long enough to get the really good return on those investments because we have gotten a couple of extra years more so than people thought. >> let's talk about oil where we saw various stocks jump today after both chevron and exxon surprised investors with larger than expected fourth quarter profits. the results on back of u.s. crude oil's best one-month performance on record in january. wti therefore -- up 2.8% and one month up 22% mike, this is fascinating because good to see the stocks come through and deliver as they have but the oil prices been so crucial to the correlation of the equity market and that again links into the january performance. >> it has. in a much more exaggerated way obviously. the decline much more severe than stocks. you don't get many 20% up months

in crude oil and continue on like that even though the price is well below the high and might be one of the things that gets in the way of the equity rally kind of marching on in a straight line from here is seom point you think oil has to take a break even if it's seen the lows and the price on an absolute base. so i don't know that it necessarily is step for step with stocks from here on out. >> michael, back to sara's question of growth versus value. strong cash flows and strong dividend yields. >> yeah. dividends are there and makes them relatively attractive qula you haven't seen on oil is a meaningful change in the outward strip and really stayed around this mid-50 level and for them to really work you need to see the prints higher.

the other thing i would just -- to sara's point of inflation expectations at the top is seeing oil really move higher and see inflation expectations which are very core lated to oil price move a lot higher you will see the fed get more active. >> this fed seems to be focused on inflation as a reason to pause than the other side. >> that has to be the trigger. right? >> michael - >> thanks. >> we're both so happy to have you. >> very gradeful. >> one, two, three, thank you. i meant it sara didn't. >> i did. state of the union pushing u.s. concrete higher what's the story here? >> early briefings of president trump's state of the union address next tuesday is set to call on congress to send him an infrastructure bill. the president reportedly will offer a specific figure on how large that infrastructure package should be. construction, material stocks

including summit and eagle materials all moved to session highs as well on the prospect of increased spending on infrastructure also worth noting that the president is also likely to call on congress to pass the nafta replacement bill and update house on the progress made in trade talks with china sara, back to you. >> all right seema, thank you do you think it matters for the stocks calling for an infrastructure - >> i think it matters in the reflex way, yes. i don't know i guess you will have to see if it's couched in such a way it is really going to -- >> it is something both parties agree on where's the money going to come from >> the money comes from treasury sales and where it came from for the tax cuts and everything. >> we are already in trillion dollar deficit. >> the scale of it, right? republicans wanting to do this kind of public/private thing not a lot of government investment look we did this in early 2017. the stocks went nuts and the

engineering company stocks went nuts united rentals i guess you have to see. >> regulate facebook or build a highway, which is more likely? >> regulate facebook is cheaper. >> right. >> i don't know that either one of them is top of the list. >> could be a good trade. >> both are popular i would say. >> that's true. >> cypress semi shares rallying. you will hear from the chipmaker ceo. we'll discuss whether the strong economic data released today could force the fed to abandon the new patient stance on intesra hesert teik u traded . i'm not really a wall street guy. what's the hesitation? eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable. i could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy. what's the hesitation? it's just complicated.

step-by-step options trading support from td ameritrade you mighyour joints...ng for your heart... or your digestion... so why wouldn't you take something for the most important part of you... your brain. with an ingredient originally discovered in jellyfish, prevagen has been shown in clinical trials to improve short-term memory. prevagen. healthier brain. better life.

this is it guys. you ready? to have epix? absolutely. woooo! you'd laugh. oh, ow. [ chuckles ] you'd cry. look, look, look, look, look, look, look,. maybe even laugh while crying. what the fertilizer? sounds pretty great, right? riiiiiiiiiiiiiiiight! just say, "add epix" and it can all be yours. it's easy to upgrade. and you don't want to miss out on everything epix.

welcome back shares of cypress semiconductor soared today for more on what's behind the numbers, we are joined by the ceo hassane el khoury. very good afternoon to you thank you for joining us. >> absolutely. thank you for having me. >> so, a lot of people are saying that your broader sector you're part of is fairly crazy over the last couple of months and quarters and i guess that's played out through earnings. some jumped significantly after reporting, some have fallen. do you think that's a fair summation of the sector and what allowed you to be an outperformer >> yeah, so if you look at it,

it depends on did expectation for the specific companies are if the expect were too negative, even a slightly less negative outlook or result caused some of the stocks to go up. for us specifically, we've outperformed the sectors we are in, specifically automotive under scrutiny lately given the news on the unit growth. so we have outgrown that industry by 10x comparing to the cypress growth we are exposed to iot and grown in that market, broad iot market by about 20% second half of '18 from second half of '17. and with all of the pressure that you have on the top line, given, you know, all the macro and the environment that the semis are in or worldwide really, we've delivered the earnings that we've committed to regardless of the top line by really executing on to our financial model. so that is what you see the result today.

>> let's talk about that autos number i think it is about 30%, 35% of your earnings. we were talking about the slight slowdown in autos. why have you been able to grow at 10x that pace >> so our focus over the last two years we have been really moving the company to focus on the content, so think about it the more content you have per car it doesn't really matter slows down by one or two vehicles you are going to outdo the single unit cars we moved away from playing under the hood there's one engine per car doesn't matter what engine it is you have one piece per car we moved to the body electronics of more and more content per board and boxes within the car so you take that multiplication factor and add to it and the

elect trok -- and that's a third of our business so the top line really followed. >> how would you characterize your customer behavior and appetite to spend and how do you see in it different geographies? >> sure. you know, i look at it as two phases a short term and think of the short term maybe in few quarters or so and long term and differently measured and the short term there's definitely cautiousness you know we see our backlog our backlog starting to come in. i think that's also reported by some of our peers so the short term confidence looks like it is starting to come back. i'm more cautious for the short term i'd like to see -- think about another quarter and only been through 2019 in a month. and another quarter would give me more confidence in the backlog and the backlog is stabilizing in the second half so that is what i characterize

the short term the long term has not changed. you know if i measured the long term by design ends which is the r&d spend customers do for future generation this is's actually the momentum has not slowed down which tells me that even our customers are looking at this as a short term, you know, three quarters and that's the phase we need to really weather through while we maintain the focus on the future years with the design with momentum. >> when you described increasing the amount of your chip content let's say within vehicles or other internet of things areas, is this a one time or just a phase where we're basically the products become that much more dense with computing and then we're done and thinking of cars in particular and adding more electronics interior and wonder how long that secular trend myself last. >> sure. for the automotive specifically,

we are talking about a multi-decade conversion because if you think about it there's more content in the body which is the comfort and convenience side of it what you and i go to the dealership and pick from and that customer demand and customer demand is only increasing so there's more content electronics going in there. there's another trend maybe not as clear today to the average consumer which is the aon the mouse driving. we see it on tv and levels of autonomy all the way to five think about it, at only the level two of aon the my and going three, four and five and going to be an exponential increase in content per car. we haven't started to see that yet. we see the development and not really production. so the outlook for automotive content we are still in the first, early innings same with iot. as you get more and more of that technology, there are still more things that are still getting connected to the internet through compute and connect.

wi-fi or bluetooth that didn't have electronics in them before. you know as simple as a water bottle. now you have a bottle that tracks your intake and sends it to a phone content that's content that will keep evolving take that example to a lot of consumer products that are call it dumb products today and adding smarts to it. we're still in the first -- early innings of that, as well. >> coca-cola is working on that. are you supplying apple phones how would you characterize demand for the iphone? >> we do we do supply apple in general. not just in the phone. i can't really comment beyond what we have read as far as what their outlook is we're obviously monitoring and work closely with the customers making sure they get what they need when they need it and i'll leave that to them and made it very public of where they are

and where their expectations are. >> hassane, thank you very much. hassane el khoury. >> thank you. coming up, we'll look at whether the fed chair jay powell could have a rate hike surprise up his sleeve jix a. she's been a huge critic of the banks but chair maxine waters said she can be fair. you'll hear her explain that coming up. ♪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'

operator, i'd like to make first name "bob,"lease. last name is "wehadababyit'saboy." hello? collect call for, mr. bob wehadababyitsaboy. sorry, wrong number. who was that, dear? bob. they had a baby... it's a boy. (smiling) ahhh. if you like saving money, call geico. a fifteen minute call could save you 15% or more on car insurance. ...last name is "wehadababyit'saboy 8lbs3ozmother'sdoingfine."

the results on jobs, consumer sentiment and manufacturing all coming in stronger than expected dozen this mean the federal reserve might soon have to reverse its patient stance and increase rates mike with more how do you answer that question through a chart? >> maybe not soon but this chart shows the making of this trend this is the u.s. economic surprise index, comparing how economic data comes in relative to forecast. above zero, the numbers coming in stronger than forecast. below, below estimates first of all, look at the first part of last year. how consistently this was at very high levels it is not the common way it goes you believely oscillates around zero because as numbers come in strongly, they raise forecasts and meet or fall short of those estimates so this shows why we're concerned about overheating last year. this was obviously the trough there. november and december.

this is interesting. this is the first time it shot above zero in two months so this is the makings of maybe the economy in this oscillating back to a stronger than expected zone so if the fed is becoming a big problem for the stock market here and this strong for this long this is not enough and shows you that december looks like it was an overshoot in terms of panic of recession and that number today strictly what we know. the jobs number, ism number and michigan consumer sentiment. all three better than expected. >> not including the downgrade for last month >> that's right. the revision -- probably did not filter into this upon release. >> you keep talking about the revision still above 200,000. >> downgrading from -- >> today's number 150,000 better than expected and we've revised down the prior month 90,000 on a net basis you still got more. >> higher. >> interesting thing on this, mike, january and february last year clearly started well and then a big selloff and the

positive economic surprises continued well past the selloff. >> they did, yes in fact that's why i think you had the anxiety about treasury yields, interest rates, it's a totally different set of concerns i think that was driving thing last year. right? concerned about rates going up and pinching off growth. here we are concerned of whether growth itself is essentially waning and therefore more on a deflationary zone. >> pessimistic. >> not have shot and citi does have a global one. >> didn't have it in time. annoyingly great stuff. thank you very much. time for a knews update. >> the family of penn state student who died after a hazing event in 2016 is now suing 28 of his former fraternity brothers several of whom faced criminal charges. the suit includes 14 counts including charges of negligence,

battery and conspiracy. cnbc learned layoffs at general motors begin monday when up to 4,000 workers lose their jobs part of a massive restructuring plan announced by the plan in november. if you want to be happier, leave facebook for a month researchers at stanford and new york university measured the happiness of 2,500 adults who did just that and turns out they reported feeling more satisfied and less depressed and take a look at this. nope that's not a movie or the real statue of liberty. following a tradition back 28 years, a replica of lady liberty erected on a frozen wisconsin lake ahead of that area's winter carnival it is a little creepy but there you go. >> the replica of the top of it? >> yes just the torch. >> pretty cool. >> made out of styrofoam and floats. >> very nice doesn't need to float on ice

though i guess. >> like last scene of "planet of apes." >> sue knows what i'm talking about. >> i do. have a great weekend. >> thank you you, too. nba hall of famer shaquille o'neal knows how to make a big play and doing that just this week in the run-up to the super bowl eric is in atlanta where shaq apparently lined up big sponsors for his party. tell us about it. >> that's right. shaq is here not a nfl player that is nfl matchup but he is here with an entertainment business now and really super bowl week almost like a convention week like ces i talked to him about the new business here's what he had to say. this is shaq's fun house you're shaq. i don't see a fun house yet. is that coming >> because we are building it. we are building it. >> running out of time >> never on time we like working when people are asleep so shaq's fun house is -- shaq, of course, everything fun inside the house

you got carnival, cirque du soleil hot food waffle house great music and great performance. you put that together and that's shaq's fun house. >> why is a nba legend involved at a nfl event >> this is not -- well, yes, it is a nfl event but a sports and main event and i have been a main event type of guy welcome to shaq's fun house. my business model has always been, change people's lives to make people happy. that's what it's about i have enough money. i made enough money doing what i'm known for and now making people smile and making the right business investments so this super bowl weekend you want people to have a great time. and me being a male sports figure bragging rights who had the greatest party ever at super bowl? shaq's fun house is cracking. >> shaq, if you want do go to the fun house, it is going to cost $400 and up

thousands of dollars if you want vip access and making money from sponsors and challenged me to a ski ban e ball game. he was definitely dominating on the skee ball machine. one of the big events this week in atlanta ahead of the super bowl back to you in the studio. >> eric, just to confirm, he is not partnered with ja rule or billy mcfarland. on his own >> no. we asked him about the fire festival thing and he said this is the real thing. lives in atlanta he is there. he says he feels sorry for those customers they got scammed and this is a real business and he is going to be there tonight. >> opening part of your segment there did sound like that and good to hear him with credibility and know him well but make sure that wasn't the case with that one. >> setting up as soon as we walked and brought in all the stuff. you got it, wilf. >> well, go and enjoy it if it's

all set up then. eric for us at the super bowl site. companies shelling out big, of course, to cbs for an add vert in sunday's game. a 30-second spot is selling $5.25 million, a slight increase of last year's $5.2 million. >> one ad has two chains and adam scott take a look. >> hi. record label finance listen i'm going to need receipts for everything in this video if you want to get reimbursed. >> i have expense-ify for that. >> what? >> i got it. joining us now to discuss more on ad spending is ceo david barrett and matt briton. gentlemen, thank you both for joining us. >> great to be here. >> david, tell us a little bit about the ad

$5.25 million for 30 seconds ain't cheap. >> it's not cheap and the world's a big place. we are a mobile app for business expenses take a picture and read it we submit it to your company there's like 25 million businesses in the united states alone and we want all of them and you need to make big moves and there's no bigger move than the super bowl. >> david, the interesting place to put this because i guess you need the corporates to sign up to start using your software opposed to individual employees saying, that looks like the best app because that won't help us in the short term and i wouldn't think that a super bowl with lots of consumers watching is the right place to place that ad. >> that's an easy mistake to make and makes it quite different. we are the only silicon valley unicorn growing 100% year on year and not doing advertising

whatsoever the business model depends on individual employees downloading the app and promote us internally and as a result we can make every single viewer of the super bowl into a customer, whether using receipts for personal budgeting, health savings account, you can promote us inside of your company without waiting to be asked and enables us to take advantage of a company or an opportunity like the super bowl for most companies it would be crazy. >> matt, it sounds like we get celebrities. i talked to pepsi and all on the celebrity train and i thought we would get more social conscious advertisements. >> that can be in the realm of controversy and i think companies in the political climate are backing off of anything not focused on entertaining consumers this year you're going to see

more female celebrities. i think a lot of companies are starting to see in the me too era that they have to have more of a balanced approach to not just male celebrities. last year three quarters of the celebrities in tv spots were males so this year they want a more balanced approach which i think is a great thing. >> where do the surprise advertisers come from? >> expenseify is one bumble is another one. a dating app as a start-up it is a big chunk of change for a start-up it's a huge bet. doritos and budweiser advertising in super bowl for 15 years an expected to be there and start-ups going, you know, they're anticipating that the impact on the business isn't just going to be marketing two people but through people. that people will take the spot and share it, get a lot of buzz on youtube prior to the super bowl starting to get the buzz beyond the super bowl and interesting the model and essentially the consumerization

of the enterprise. we get a cio to adopt it the individual employee has the ability to start using it which could spread up an how a company like that can justify the investment. >> it is fascinating as an opposite equation to digit altar getted ads where we know who you are and what you want and the fire hose approach. >> well, i mean, the super bowl besides that there's the grammys and the oscars and all there is in mass reach, mass eyeballs in the world of people time shifting content and hulu and netflix and not that many games in town for eyeballs and if i was a cfo i would invest in the super bowl and one place to pour dollars into because it's a sure thing and mass reach all at once. >> guys, we'll leave it there. thank you very much. >> thank you so much. coming up, we'll look at why the health care industry is hanging out the help wanted sign comingo temts and paramedics. the story for jobs day coming up

at&t provides edge-to-edge intelligence, covering virtually every part of your finance business. and so if someone tries to breach your firewall in london & you start to panic... don't. because your cto says we've got allies on the outside... ...& security algorithms on the inside... ...& that way you can focus on expanding into eastern europe... ...& that makes the branch managers happy & yes, that's the branch managers happy. at&t provides edge-to-edge intelligence. it can do so much for your business, the list goes on and on. that's the power of &. & when this happens you'll know how to quickly react... onmillionth order.r. ♪ there goes our first big order. ♪ 44, 45, 46... how many of these did they order? ooh, that's hot. ♪ you know, we could sell these. nah. ♪ we don't bake. ♪ opportunity. what we deliver by delivering.

fairness, that is what the new chairwoman of the house

financial services committee maxine waters said will govern any investigation into beleaguered banks. that interview is coming up next another blockbuster jobs report today and a sector health care coming up, a look at the area there in need of workers

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

so, servicenow put your workflows immhm. cloud, huh? your employees must love you. [ chuckles ] thank you. you could say that. i love you. servicenow works for you. welcome back last fall maxine waters had

fiery rhetoric for wall street but as the committee chair and a democratic house she told our john harwood she will be fair and isn't looking to put banks out of business. >> i think none of us should be irresponsible in the way that we deal with financial services issues and i do know that the president does not understand this he doesn't know the relationship of his remarks to the stock market but i also know that when you have a financial institution that comes before you and they have been involved in activity that they have received a lot of fines for, that they continue in the activity of -- activities such as one bank that continued to create accounts in the clients' names - >> walking about wells fargo >> i really am having foreclosed on homes you should not have fore closed on and now, you know, you're being asked what are you going to do about it and how are you going

to make the people whole, yes, it is legitimate for you to ask those questions. even if it's embarrassing. >> now, i have seen a comment or statement from you that suggested you might want to put wells fargo out of business. is that true >> no. anybody that understands the importance of the banking community to the economics of our country would know that you don't just wish to put somebody out of business. >> we'll get -- we'll get a look, wilf, at the tone that maxine waters sets with a first hearing later this month which is with credit ratings agencies. she has another one with big banks including goldman sachs and jpmorgan and met with david solomon and jamie dimon and see how the governing maxine

comparing to the campaign maxine that's gotten attention for feistiness. >> yeah, john, i was interested, of course, making the announcement of the hearings to come it's all six big banks and not just wells fargo and goldman sachs. it was a broader selection which i guess is relatively encouraging for those banks or individuals that perhaps have a few more issues on the plate than others. but it's interesting as you say to when hearings come out and, also clearly, i wouldn't expect any lawmaker to say i want the bank dos go out of business. the question is whether they want individuals to go out of their role. >> right and in terms of that hearing that you mentioned, i talked to an executive with one of the banks who's going to be participating who said that their conversation with maxine waters about that hearing was pretty positive. it was about let's talk about ways that you can improve our

economy and improve american prosperity more broadly, not just people doing well but for people in middle and working class down the income scale not doing well. >> john, great stuff thank you very much for us in d.c. last year the health care industry added 350,000 jobs. but filling the roles of health care's first rpoeresnds has not been easy. we have that story next. sometimes, they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group - how the world advances. ♪

according to the department of labor, employment of paramedics and emts is projected to grow 15% in the next seven years. in certain portions of the country, the jobs aren't so easy to fill. kate rogers is in bangor, maine, with the story kate. >> reporter: hey there, sara that's right here in bangor, maine, highly

trained paramedics like eric who run ambulance fleets just like this one can be difficult to find now, he can answer as many as a dozen or more calls a day, sometimes traveling up to two hours away from this station, but he says helping the public is well worth it >> the positive is, is you get to step into the chaos of the worst day of somebody's life and bring calm, bring peace and have the ability to step in and help somebody on their worst day. and that to me is priceless. >> reporter: the system that he works in is called northern light health they have about 170 people who work in their ems staff, but they need about 20 or more workers to be at full capacity demand for ems workers comes at a time when the health care sector is booming. some 42,000 jobs were added in january. as the aging population strains the industry in two ways, they're needing more care than

ever but at the same time workers are aging out of their roles in the industry and a strong job and labor market of course is having another impact >> the more people with health benefits, more people with insurance increases demand for health care and, therefore, health jobs. >> so to combat the light latig market, then offering comprehensive benefits packages, things like a 401(k) plan with a match, tuition, and if you are a paramedic, you can make $27 an hour, which is well above minimum wage back to you. >> good example of the tight job market, especially in health care kate rogers, thank you after the break, a judge ntveiang in on san francisco's cororsl soda health warning. we've got the details right after a break. junior achievement reaches young people all over the world

to prepare them for the future of work. we go into classrooms and we teach entrepreneurial skills and leadership skills. when you actually create a business when you're in your teens, it raises your self-confidence. junior achievement is really unique because they inspire young people to think creatively. the citi foundation's pathways to progress initiative helped us reach kids in over 50 countries. citi has also loaned us their executives and their employees to help us deliver our programs. our youth are three times more likely to become entrepreneurs and they're more likely to create jobs for others. they are going to bring an entrepreneurial spirit to making our world a better place. ♪

is it because so many go after it the same way, chasing after short-term returns? instead if getting caught up with the crowd, the investment managers at pgim take a long term view.

uncovering opportunities for alpha across public and private markets, while anticipating unforeseen risk, has powered our rise to a top ten global asset manager. partner with pgim. the global investment management businesses of prudential financial, inc. we've got a news alert on goldman sachs. leslie picker with the details >> hi, sara, this coming from a filing today from goldman sachs. the firm disclosing it may withhold compensation from top executives, including former ceo lloyd blankfein and current chief david solomon related to ongoing investigations

surrounding the firm's 1 mdb scandal. they announced this forfeiture provision to their 2018 compensation in a new filing today. the firm also said solomon received $23 million in 2018 compensation, up slightly from the year prior when he was president and coo. blankfein received $20.5 million in 2018, about $3.5 million less than 2017. back over to you guys. >> leslie, thank you very much for that guys, i have just spoken to a background source at the company about a little more detail on this i think the three individuals in question are the former ceo, lloyd blankfein, and two others, mike evans and woody sherwood who had senior positions back at the time mainly this relates for mr. blankfein to last year's pay which necessity just granted in granting that, the board has kept powers to say they can recoup that. also for those three individuals i just mentioned, it involves some of the those back in 2011

that hadn't been earned out out. so this is a significant development and in particular those names mentioned, they're still just going to check that nothing comes out of this. >> it would be more if they go through with it and withhold pay. >> they haven't done that yet tt point but the board has given themselves extra powers to do that for the money they just granted for 2018 pay. we are launching a new segment, which is why we're here today, called under the radar where wilfred, mike and i will take a look at some stories that didn't get a lot of attention during the market day. i'm covering a story out of san francisco. a judge in san fran ruling that the city's soda health warning is unconstitutional, saying the request for required wording on sugary drink ads violates the first amendment and the court dealt a further blow to the city of san francisco that wanted to go through with that law saying the fact that they wanted the warnings to say that sugar consumption can lead to obesity and other diseases is actually not based on established fact,

because the food and drug administration doesn't say that. sugar is safe to eat this isn't like cigarettes. >> so the city itself can't make that determination. >> and now they cannot require that billboard ads and other ads have warnings come on the soda ads that it could affect your health bin win for soda. >> the warnings you get on tobacco is so severe and enclosure, which is why this has been differentiated from. >> san francisco drew a line on that. next up, would you go vegan for jay z and bonds. the power couple offering lifetime concert tickets for fans who adopt a vegan diet for a month. >> really? you wouldn't go vegan for beyonce? >> also it's not lifetime tickets, it's for 30 years but that's basically lifetime. like a lifetime jail sentence never goes the full time but this is not actually to say people should be vegan the whole time, they should just cut down

on meat sbin taintake they say they do two meals a day that does that i went on the website -- >> you have to order plant-based meals from this program. >> you can't just say you've done it. >> this is in support of her trainer's new book but still, jay z and beyonce tickets, not easy to get i would think about it. netflix releasing a new logo animation that will roll out before its original video. a tweet sent by a netflix affiliate said the rainbow represents a spectrum, so it is the netflix and bursts into this multi-colored spectrum everything netflix does, hbo kind of did at some point. it's been 25 years they have been using that and it really signifies that this is an hbo moment. >> but so did the n i thought. it's a bit kind of like give you a migraine type of thing. >> you have to get used to it

for sure. >> i think they're anticipating a ton of competition on original content from disney and everyone else so they really have to mark theirs, which they're getting a lot of credibility right now. >> just so much of it, though. >> they just turned the lights off on us. i think that marks the end of the show and end of the week. >> have a good weekend, everyone "fast money" begins right now. "fast money" starts right now. live from the nasdaq market site overlooking times square, i'm melissa lee. here's what's on deck. as the rally rages on, there is one chart that signals even bigger gains for stocks this year if history is any indication we will explain. plus gold is surging but that shouldn't surprise you if you listen to the chart master he is bhack to tell you how long the rally will last. all three of the major indices hitting the highest level since the beginning of december the dow locking in