that was fun already looking ahead to next year what stocks should we include in the draft? >> we can solicit ideas. >> cannabis i say. >> probably some commodities. >> how about berkshire >> sure. all right. >> we'll get the suggestions in. thank you for watching. >> "closing bell" starts right now. ♪ good afternoon welcome to the "closing bell." i'm wilfred frost. >> i'm sara eisen. we are an hour away from another round of big earnings. we'll, of course, break down the numbers as soon as they cross. big question on alphabet, can it keep the tech earnings going >> economist david rosenberg will join us we'll ask him if he is bearish after the big january rally. starting with an s&p 500 intraday chart

a nice recovery during today's session but never a bigelow and not now big highs up close to the highs of the session bringing in the other indices. tech leads the charge and nasdaq is best performer. the dow up about 100 points. the high was 111. let's get straight to the market and the "closing bell" exchange for the day joining us, jeffrey kleintop and rick santelli in chicago jeffrey, we've just come off a strong win streak. best for the dow and nasdaq since 2016 does it continue >> i think there's probably more to this oversold bounce here in the market i think it's going to run into -- not just slowing global economic growth -- but slowing earnings growth and we'll hear after the bell a number of reports and not just the top line slowing down. it is cost pressures on the rise wages in the u.s. running at the fastest pace in ten years. in germany, fastest pace since

1992 they see an overheating environment. that means that we could see an earnings recession in the coming quarters that could be just as bad for equities as an economic recession. >> rick, what are the key things to watch in the week ahead we have a couple of big auctions coming up? >> yes 3s, 10s and 30s this week and i think a very important litmus test for the treasury market in general and investors specifically you know, rates moving up and we really did make up important ground in a few sessions we settled the year right in the 268 area the low close for the year around 255 we were testing, getting close to 260 midweek last week and, boom, here we are back very close and once again in the 270s you look at europe,france. you even look at the uk fixed income markets you look at italy.

you look at germany. you look at the euro curve and in essence is the german curve and what you will find is rates are really melting friday in many of the bigger economies in europe their sovereign debt markets traded at the lowest levels on a yield basis back to the fall of 2017 and i think that this is very important. i'm sorry. 2016 this is very important to continue to focus on because i continue to say rising rates too quickly is a negative but the u.s., whether it's the stock market, the economy or rates, slow and steady and firm and i don't expect it will change the reason i think a good litmus test with the auctions, investors more than willing to gobble up the bigger auctions with the rising debt levels when those investments ones purchased and the returns compared with the alternatives. >> so rising bond prices,

jeffrey, is that bullish or bearish for stocks at this point? >> well, i think they have -- some of this dates back to is the yield curve to invert and when and that sort of very timely symbol of a peak in the stock market looks like the yield curve steepened up and may continue to do so before it ultimately heads to an inversion, maybe sometime who knows? a year from now or so. look beyond the rates and the monetary policy where the fed's on pause and look to the fiscal environment. we are seeing tax cuts outside the u.s. the u.s. did it last year and tax cuts, germany, proposed and in the uk and japan, australia, the netherlands. a number of places could provide upside stimulus. i don't know if it's enough to offset the factors but potential to earnings in terms of revisions. >> year on year will we see the same type of earnings growth we

saw last year and what level of that is priced into equity markets at today's valuations? >> no, i don't think we see that kind of earnings growth. even from q1, 12% expectations 6 months ago and down to just 2% for global earnings and most important thing to do is say we are seeing a lackluster environment for earnings growth. what's not priced? the international index. 12.6 times below average. well below that of the u.s. and i think priced in overseas markets not as priced into u.s. markets but seeing roughly is same type of earnings outlook. >> you said before you expect an earnings recession you want to be in defensive places, which have been pretty crowded and outperformed over the last year? >> yeah. i still that makes some sense. look to defensive areas, health care stands out and more

defensive from an earnings perspective with a down turn and may still have some legs and more defensive orientation still is going to make some sense in 2019. >> rick, is the dollar going to act as a defensive currency in 2019 is it a safe haven or led by other fundmentals? >> the dollar is a safe haven and the pause by the federal reserve to make any significant upside probably further away but i don't see any major drifting one thing to comment jeffrey said, i thought after we did the big tax reform last year that we would see other countries move more quickly, of course, to keep their companies more competitive. and to see europe thinking about this now as their economies have slowed just points to the irony of our political aspects as the

democrats, of course, would like to win back the white house and the main platform is just because you have the best economy doesn't mean we don't want to raise taxes again. what do you think, jeff? seems counter intuitive. >> we saw the u.s. steel global growth share last year and investment from the rest of the world, many of the countries are looking to do the same now in 2019. >> rick, i have to say one of the reasons you haven't seen other economies respond more quickly as you suggested might have been possible is because the u.s. was so high above others in corporate tax rates oven with the cut it was still above the average across europe, for example. i think that's the difference and i think there's a big difference in income tax rates versus corporate tax rates in terms of the affect on the economy and business. >> right but just the general notion that you lower them to create more no matter how dissimilar they are it is like saying, you know, you should all be jealous that china has a 6% economy

well, yes. spread against ours it looks that way but there are unique circumstances that also make that metric not exactly as it's advertised >> there were times to do this germany is running a budget surplus right now and the economy is slowing down. this is the time to enact fiscal stimulus. >> okay, guys. great conversation thank you for joining us. new dethat of td ameritrade show investors move to less volatile stocks in january j.j. kinahan joins us now to discuss. before the individual stocks, i like gauging what overall risk sentiment was particularly from retail investors. >> it would be cautiously optimistic people see the potential and especially with the earnings season starting in january and it's been i think better than many of us expected that it would be and more importantly, a lot of the ceos have made nice forward

looking statements so i think that that kind of weighed into it but i guess people not fully trusting of with the tariff situation still hanging out there in the balance i think a lot of people are still nervous about that. >> just looking through some of the top picks in terms of what your clients bought in january, ge, ford, amazon, apple. i mean, a lot of these were strong earnings stories. was that the driver? >> i think that and i think if you look at what happened to them in december, those are some of the stocks that were most beaten up. apple off a 52-week low. although i was on here with you guys and apple was a net sell most months last year. it's still number one held stock at our firm. so apple i think people sometimes underrate psychologically what apple means to the market. when it was down on a 52-week low, the clients come in ge, you know, getting pounded

down to the $7 level ford so a lot of stocks people know and with lower betas and net buyers of equities and mutual funds and index related etfs and really the message right now is that people want to be involved in the market and much more cautious way than we have seen in certainly 2017 and through most of 2018. >> i notice you say that millennials on your sy vay were selling out of the likes of underarmour and nike. >> they were one thing, this is more than a survey and measures what people are truly doing and so as we look at the millennial activity, underarmour, they have been on the stock for a while this terms of selling nike is newer to the list that the age group was selling overall. you also see chipotle. a buyer of that stock and now turned to sellers. so as hopefully taking profits as the stock has gone up and the interesting thing to me is millennials interested in the marijuana stocks

you know and then also tesla continues to be a favorite of the millennials and not necessarily seeing that in the overall population but the millennial population and we have talked about this, very strong believer in what tesla has to offer. >> who's usually right millennials, overall clients what's the best gauge? >> that's a tough question the millennials are involved in the overall client base but if you look at this month millennials measuring january, the cannabis stocks almost all doubled in price so up about 40% so they have done well i do think that just as apple perhaps has sort of a magical thing for many people who are baby boomers, i think tesla's getting that for my millennials believing in what the ceo is doing, what the company is offering overall so it will be interesting if

that continues going forward as tesla, you know, has had obviously some issues over the last few months. >> what about the assets under management for millennials is that part of money growing fast >> it is growing and starting to grow every single year which is great and people i think as they get a little bit older start to take this a little bit more seriously which obviously we're doing a lot of work on to how people realize and i think there's some things that millennials don't trust the markets. i don't know if i agree with that they are very involved the bigger thing is as they put off the decisions that maybe the parents made of younger ages those are the things that suddenly get you more invested in investing. >> how much has overall sentiment improved >> it's interesting that this month is the fourth month in a row it's gone down a little bit.

the clients, net buyers of the first time in three months of equities very small but what they're buying is much more cautious they're not buying stocks that have any type of higher beta and i think that's the interesting thing about this people want to be involved in the market but they want to be involved in -- i don't want to say as riskless as possible but fixed income and index based etfs and the stocks that tend to trade very highly corelated to the s&p 500. >> thank you for being here. still to come, alphabet, the final fang stock to report this earnings season. we have an all-star lineup to analyze the earnings after think hit. the super bowl, streaming companies were front and center in commercial breaks we'll discuss why so many streamers paid up for those ads. you can reach out to the show on twitter, facebook or send us an

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welcome back to the "closing bell." dow up 110 building momentum throughout the day. did biggest winners in the dow, apple, microsoft, boeing, coca-cola. strong tech and strong industrials. we are halfway through earnings season with big names still yet to report. seema mody has a look at what the numbers are telling us so far. >> despite the global growth concerns earnings season has showed up to be pretty good. 71% beat estimates and 61% have beat sales estimates, decent beat rates and below the 1-year average. still 6 of 11 s&p sectors have delivered double-digit profit growth china continues to get a lot of attention. in fact, 56% of companies mentioned china on their conference calls companies like starbucks and

nike have been a bit more positive on china. while others like fed-ex and mastercard have been cautious. ceo of mastercard saying we're monitoring headwinds in asia as we don't participate in china but given the size of the chinese economy it does impact the global economic picture. after the bell, investors will be paying close attention to results of alphabet, seagate and reports of disney this week and general motors, expedia among others back to you. >> so is the general take, seema, that it just did he understand -- depends of the company? >> so far we have learned that the consumer driven companies like procter & gamble and citing growth in china and perhaps certain markets are spending a

good amount on goods and others that are industrial focused have shown signs of weakness when it comes to china so maybe that kind of gives us the story so far. >> yeah. seema, thank you toning now from the earnings scorecard to the super bowl scorecards the game had the lowest point total in super bowl history and the lowest ratings in a decade julia boorstin has the details in los angeles julia? >> reporter: sara, last night at the super bowl, the streams services were out in force amazon, netflix, hulu promoting new shows. hulu for this morning in america spot for season three of "the handmaid's tale. amazon with "hannah" with a preview to amazon prime video members. this is part of an estimated $25

mlt million in ad spend making amazon the second biggest spender on super bowl ad times and with amazon streaming ten thursday night football games, this fueling speculation that bezos to make a play for more nfl rights or the seattle seahawks youtube used the biggest live tv event of the year to give people reason to cut the cord in favor of yubtd's skinny streaming bundle sponsoring the kickoff show on cbs and revealing how much the super bowl eats into streaming. u.s. viewing in the super bowl declined 32% from an average sunday guys, back to you. >> julia, i guess netflix also previewed the trailer for the new wildlife show which david attenborough narrating but how

rare is it to see the streaming, over the top companies advertise so clearly in such a focused way at the biggest single traditional broadcast event of the year is this a big step up? >> reporter: this is definitely an increase and we have definitely seen an increase of amazon amazon is a big player in advertising, spending an estimated billions of dollars on advertising every year as well as becoming an advertising resource themselves. we're hearing increasingly from brands that amazon could become the third big player after facebook and google coming to advertising but i think, wilf, seeing the companies going to the super bowl to advertise, what we have to remember is the super bowl is number one biggest event for live television viewing and all of these players, whether netflix or hulu or amazon know if they convince people that the shows are exciting, then they'll get more people to go their services and tune in and pay that monthly

fee. so it's interesting especially now that we have more skinny tv bundles, see how the likes of youtube tv benefit of reminding people they have live sports. >> julia, what about that quip that jeff bezos with roger goodell and might be planning a bid for the rights in the future people made it literally as a quip and failed to focus on the fact they're testing the waters with live sports in particular with the english premier league starting next season. >> reporter: yes they have invested in those english premier league sports rights and thursday nfl rights and not inexpensive and the fact they made that equipment, i believe two years in a row, we'll see what happens when more sports rights come up. they tend to be locked up for many years at a time and with ancillary rights like thursday night nfl games, it seems that

bezos is interested. number one, he wants to make sure that if you see a today for "hannah" you think maybe i should pay to subscribe and wants to make sure perhaps more importantly if you're subscribing to prime you get so much more value out of the video offering through prime video you say i won't cancel this service with the benefits not just the free shipping. >> yeah. also paid for "the washington post" advertisement. >> and tim cook retweeted. >> a lot of people did. because it was good democracy dies in darkness. >> that was bezos that paid for "the washington post." he owns it and not amazon. bezos owns "the post." >> also fun to see netflix u.s they put out the hate for the ratings and trolling the nfl saying i'm bored send news and promoting the wildlife show. >> the netflix show with attenborough i can't wait for

and "hannah. have you seen the movie? looking forward to that. under 40 minutes to go before the closing bell. dow's up nice 111 points building on the gains we have seen over the past few weeks now. nasdaq led by technology, this market up a percent and the russell 2000 index of small caps outperforming up coming up, shares of papa johns surging as starboard takes a stake. calling for a limit on corporate buybacks we'll debate whether the government should restrict how companies spend their cash and looking forward to that debate and lots more coming here on the "closing bell.

still to come on the show, google parent alphabet reports results after the bell we'll break down the numbers ahead. after the break, david rosenberg predicted a recession this year. we'll see if his thoughts changed.

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♪ ♪ makes me work a little bit harder ♪ welcome back to the "closing bell." technology up 1.5% industrials going strong, as well

communication services consumer discretionary the cyclical groups you want to see rally if you're a bull energy, industrials, materials all losers. >> and the music added to the bullish sentiment there i felt. >> the music is rocking. killing it. >> not the health care sector. anyway, time for a news update. >> thank you, wilf hello, everyone. the european union announcing it is recognizing opposition leader juan guaido as the legitimate leader of venezuela over current president maduro the eu's foreign policy chief saying a meeting of top european and latin american diplomats will meet on thursday to discuss the crisis. general motors with a round of layoffs terminating roughly 4,000 workers in its north american operations. the latest round is part of the restructuring plan gm announced last year. sheriffs in florida are investigating after firefighters

discovered a deceased person after exteng wishing a house fire the cause of the fire and the person's death have not been determined. the rosa parks museum in alabama celebrating what would have been the icons's 106th birthday the museum is at the site of parks' historic arrest on the campus of troy university. you are up to date that's the news update this hour back downtown to you. >> all right sue, thank you little under a half an hour to go here in today's session. take a look at the biggest movers on the day. bob pisani, bertha coombs. bob? >> sara, good afternoon. we are in a slow melt-up once again. this is going on for a couple of weeks now. the market internals, the breadth, how many times advancing versus declining up every day. near the new highs buying power, how much interest in buying the market

every day here that's increasing. how much selling pressure. decreasing these are metrics used by lowries. and the volatility, the vix is collapsing not a lot of breakouts new highs, you expect it to be happening. boeing's at a new high today procter & gamble new lie and lilly an good market leaders with ibm, goldman and nike not new highs but all above 10% for the year back to you. >> thanks very much for that let's send it up to bertha coombs at the nasdaq. >> hey, wilf nasdaq and nasdaq 100 today exiting the gains hold the correction territory they're less than 10% from their october highs. and one of the things that's really been doing is large caps despite the fact it's the small cap that is have been moving this market today. the large cap nasdaq 100 is the

real leader. intuit with an upgrade given that it's tax season a price increase from $172 to $225 that's one of the few stocks that's actually within 5% of its recent highs and then you also have the big market cap players today for a time apple was up more than microsoft and it's valuation had gone up above microsoft and one and two in that order and finally, ultimate software getting bought out, taken private by a group led by hellmand and freeman that's the biggest gainer seeing here today on the nasdaq back over to you guys. >> bertha, thank you. so, zooming out, the s&p 500 significantly up in 2019 closing in positive territory every week but one so far this year the next guest says we are still in the midst of a manic market joining us now is david

rosenberg. david, i said we can't just have you on on down days on the market because you are one of the few predicting a recession in 2019. has anything about the new year, the u-turn in the fed, the better markets and better data changed your mind? >> well, firstly, i want to thank you, sara, for proving i'm not my own best contrarian indicator. but look we have to take a look at the stock market this year and the context of what happened in december because if we don't have a 22% plunge in the median stock and the s&p 500 we're not talking about, you know, this quote, slow melt-up right now it is interesting to me december is the worst december since 1931 and actually, in the opening months of 1932 if you look at the history, the stock market bounced back 20% before rolling over 50% so the risk is living in the moment right now you know, the best january since

1987 is curious to me because that's when i started in the business but i know when i canvas people in 1987 they don't remember january. that i remember october. we have to look at what's happening right now really in the context of the huge dive in the marketplace, the dramatic oversold conditions where some of the money center banks trading in context i have no reason to change because of market gyrations. the view is based on the myriad of leading indicators. by the way, one of them is the guidance coming out of the corporate america. i noticed that we are seeing banners talking about how over 70% of s&p companies are beating estimates and that's immaterial and what matters is that the number of s&p companies issuing guidance that's negative is outpacing companies issuing positive guidance by more than a

3 to 1 ratio 80% of the companies issue negative guidance. but when's really guiding my views for the coming year are leading indicators capital spending numbers, they're clearly trending lower that's a problem spot. we know from the pending home sales that continued to roll over that housing is remaining in the downturn for this year. exports are challenged and the question's going to be will consumers still be the glue that holds it together? and what concerns me and i realize that the employment numbers on friday seem to be stellar but they're really coincidental lagging i don't think you want a number for last month and super impose it on the future auto sales down 5% last month and all of the consumer buying intention surveys are pointing south and i just say this much there's no such thing as a sure thing. my call is for a recession not baked in the cake but i

think it's a very weak year for the economy not fully priced in. >> david, there's definitely a lot of risks out there which are always important to make sure people take note of. the international slowdown spiked up more in the last couple of months that said, i guess you have articulated a bearish point of view for quite a number of years, certainly all the times since i've been at cnbc in the u.s. what factors would you say surprised you in the last two or three years that meant your bearish call hasn't come right yet? >> well, you know, let's -- i'll say that in 2002 to 2007 when i was at mother merrill i didn't catch any of that rally at all but i think i did a better job this time around i intend to do a better job on the next bull market but, wilf, from 2012 to 2017, i was more bullish than i was bearish and i started stepping up the rhetoric

probably 12 to 18 months ago but these things take time to build. the point i've been making from a big picture before i was just talking spoesk cli abo talking specifically about the leading indicators, how many fed tightening cycles did not land the economy in a recession only three out of the 13. in the mid-1960s, mid-1970s and mid-1990s. fed tightening cycles tend to lead to recessions so the mid-'60s, mid-'80s and '90s and the fed actually cut the funds rate on average 175 basis points the fed hasn't done anything they jawbone the market. switch the bias. the last time if fed tightened

they haven't taken it back yet so i think we are putting too much credence on the fed with the rhetoric they haven't started easing yet and everything this cycle over 300 basis points of tightening with rates and the balance sheet the lagged impacts hit home this year and other cycles. >> the problem -- david, the problem -- i mean, someone argues with the fact -- no one saying it doesn't produce recession eventually and we also have a multi-trillion dollar fed balance sheet and acts as a cushion and the rest of the world and yes that trend is reversing and perhaps creating volatility and helped to elongate the expansion and you have a shot in the arm of fiscal stimulus we got toward the end of the recovery. all of this is why some say we still have longer to go when it comes to the expansion. >> well, the fiscal stimulus most of that is behind us, not ahead of us. and as far as the fed's balance sheet is concerned, i mean, it is not levels that matter.

talking about growth it's not about levels. the change in the fed's balance sheet is down not up the change in interest rates is up not down so it's really the rates of change because in the markets what matters most is at the margin i was having the same debates internally and probably i was on the same show back in lat 2007 having a similar conversation. or, for example, back in late 2000 the lags between what the fed does in time, a, and the impact on times stuv, those are 12 to 18 months. those lags hit home this year in the most leveraged economy in modern history and in terms of falling where the bubble is this time it is not about the banks and households or mortgages but clearly on the corporate balance sheet. so when i look at what defines this year, by the way, you see it in the data the core capital goods order unmistakably in a downturn

you can talk about the fiscal stimulus and aimed at stimulating a spending cycle we had two quarters of it and it's over. this is the year of the corporate sector debt diet yet it's corporate deleveraging. and i know it might not be apparent to the naked eye right now getting caught in this bear market rally which is rather breath taking but i think when we talk about something totally different three to six months from now because ultimately the economy does matter and the reality is people i speak to give me pushback on this view but the question i would pose back at them is why is it that core capital goods orders down three of the past four months? why are companies telling you they're cutting back on the spending plans this year >> trade war maybe. >> is because there's strengthening the balance sheets and good but going to come at the expense of capital spending

and demand and the story for this year. >> david, thank you for joining us. >> thank you. now merger monday and tesla is buying an energy company. we have the details of that next. later, earnings of alphabet, gilead and seatega technologies. the "closing bell" back after a break.

♪ welcome back to "closing bell." let's check in on individual market movers. tesla to buy mechanics calle technologies and all-stack deal. the company makes ultra capacitors and store and deliver energy quickly analysts say it could be a way to reduce making electric vehicles the shares fractionally higher i talked to people about this how the innovation that tesla, one of them, far ahead of the ev rivals, battery technology and not need to charge so often, i was wondering whether it was a worrying sign as if their own innovation now lagging i think that this is a - >> speeds it up. >> small acquisition to keep them ahead of the curve and even

though some people caught up and competition is higher than it was, the general level of innovation and technology for tesla apparently - >> really did your homework. >> you will that capacitors. you knew that already. >> i don't know the word. chlorox jumping. the company also reiterated the full 2019 joutd look and did warn it expects tariffs to hurt profits per share this year. i think the big story here is actually the margin improvement for clorox and investors were pleased to see them pass along higher prices to the consumers sales were kind of a mixed bag cleaning products were good. household products not so much a lackluster sales environment but much better on the margins later tonight on "mad money" jim

will sit down with the ceo, an exclusive with benno dorer 6:00 p.m. eastern that is one of the best reactions for a company like clorox for earnings in year. >> we have 12 minutes to go before the closing bell. take a look at the major averages dow up s&p up little less than half a percent and what did bob say slowly melting up throughout the session. meantime, shares of -- help me out there. >> seriously >> go for it. >> papa? >> there we go jumping today on starboard with a stake in the company we have details on that coming up [leaf blower] you should be mad at leaf blowers. [beep] you should be mad your neighbor always wants to hang out.

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♪ welcome back to the "closing bell." here are the leaders in the dow. as you can see, it's a tech inspired rally microsoft up 2.6 as is apple boeing doing well and coca-cola. the dow up 107 right near the high of the session with just 8 minutes left

to trade. >> another stock doing well today, papa john's jumping on news that starboard values taking a $200 million stake in this company what do they want, leslie? >> starboard has the option of buying another $50 million during the remainder of the first quarter to a grand total of $250 million. and as part of the deal jeff smith joined as chairman the move announced this morning effectively the end of the company's monthly review decided this partnership with starboard was the best course forward. upon learning about the investment, the embattled founder offered to make his own proposal at terms he believed were similar or superior to the starboard deal but the special committee of the board rejected the proposal he has since withdrawn his offer. he, of course, had been embroiled in controversy over

the xheptds he admitted racial epitaphs in july, he resigned as chairman starboard has been on an activist frenzy lately, however. they have announced stakes in dollar tree and ebay and reportedly also involved in mgm resorts. last year, the firm won a whopping 29 board seats, more than any other activist in record year for activists winning board seats, guys. >> does he still own shares in the company? >> he does. >> wasn't that a problem coming to attracting investors an suitors? >> he owns about 30% this new investment dilutes the stake and the company in an effort to try to prevent s shnatter's able to bring back

control enlisted a poison pill to dilute the ability to acquire more shares and the benefits therein. quite an interesting saga here but yes he is still a shareholder and has one seat on the board. but wasn't able to get that increase of investment this time >> got it. leslie, thank you. coming up next, we'll have the closing countdown. we have got about five minutes left to trade. after the bell, earnings results from alphabet, gilead epd seagate technologies ke it right here you're watching cnbc, first in business worldwide

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welcome back to the "closing bell." we have just under three minutes left of trade. start with the s&p 500 right near the highs of the session. not much news today. encouraging to see the way markets rallied. the low of the day was about half an hour into the morning's trade. you can see that it very much is the tech stocks that lead the charge the dow and s&p both up about 0.6% sector performance view, confirms that. tech at the top in terms of performance. we have got communication services of course, got the social media stocks in that

near the top real estate there rounding off the top four sectors materials also suffering let's have a look at oil prices, as well. very quickly they're having a great day and had a great start to the year. and with that the likes of exxon suffering today and again they have had a decent run. exxon down today but is up 5% in the last week. bringing in bob pisani for alphabet stock it's up today not les aahead of earnings having a good session today. >> a problem we have had is the market is pricey we have a slow melt up you mentioned the very - >> pricey? >> i think so, yes if you think -- where are you on earnings in 2019 6% or 7% earnings growth, that's high end of expectations 16, 16.5 multiple, that's a lot.

at zero, though, the market is very pricey. it's closer to 17 times. that's a lot there for you to deal with those kind of numbers so i think there's a risk for the market right now even look at a google, for example. talking about earnings tonight for them 41, 45 times earnings? they have been getting that for years. i don't think it's going to come down dramatically in the next few months. >> forward earnings 40 times. >> no. google alphabet's numbers amazon is 60 times 70 rare exceptions but this is a lot to ask for those kinds of growth companies the market pays for any kind of growth >> google tonight. what's coming the rest of the week >> i think important thing is we are hearing from the state of the union. there are a lot of people hoping that the president will drop some hints of the trade negotiations and hinted over the

weekend to several participants, chinese participants that perhaps the earnings -- they'll make a deal sooner rather than later. >> bob, great stuff. thank you. there's the bell microsoft and idt corporation. at the bell, we got a nice little jump up on the dow and the nasdaq up over 1%. sara, back to you. ♪ welcome, earn, to the "closing bell. i'm sara eisen look at how we finished on wall street the dow closing up 175 points on the dak. s&p 500 closing higher almost .7 of a percent nearly all groups in the s&p went up. just around the end, seeing the groups turning green

nasdaq winner all day long up 1%. strength in names of microsoft and apple. a lot of tech names doing well today. invidia and chips, as well russell 2000 with a 1% gain building on the win streak we have seen in the new year. investors awaiting a trio of big earnings reports and we'll have results when they're released. some of the stocks headed higher today. alphabet up 2% ahead of the numbers. joining us is cathy wood of arc invest launching a new atf today. we'll get to that in a moment. but first, mike, it was a very quiet day in terms of the news flow. >> yes. >> seems like we are digesting the news added up into a decent rally. >> it is a new rally and upward drift seems like a default mode

and a phase of self reinforcing and coming into the year and looking for this signal of volatility to drop and being something that's an input in the process and kind of can carry larger positions and have more exposure if volatility goes down i think maybe we saw that on the close today but we're still kind of getting used to this idea of no sharp deceleration of the economy apparent and the reaction to earnings good and bad earnings or not so great and even better has been positive which just shows you we beat down expectations. i don't know how long it lasts but that's the moment. >> cathy, how do you feel about the broad value cases seeing in the marketplace in the moment and the risk sentiment >> so our ark's focus on the long term and solely on disruptive innovation an we think if you give us a long

enough time horizon are managing a deep value portfolio if you're looking at pes today, what's happening is the pes are very high because the companies, the really good ones, investing aggressively to capitalize on massive growth opportunities we want them to do that. we don't mind if the pe ratios are high because the fub opportunities are enormous. >> were you buying into the market weakness? >> absolutely. i remember being on "squawk box" and joe called me nuts because, because you could turn and that's what's happened to this market. you turned around the fed. we knew that was going to happen china is going to end i think well they're cutting the tax rates incredibly in china and we don't hear talk about that i have a feeling that's going to be one of the biggest surprises. chinese economy pulling the rest of asia. and yield curve, we're not

worried about the yield curve either as you know, mike, no one will listen to this but i'm saying that this yield curve could invert an enif you go back to other periods where innovation was thriving the yield curve inverted half of the time with the inspector general best inversions during the strongest growth periods. >> mike, in terms of the yield picture at the moment and credit outlook, is that something that investors should be worried about as it relates to equities or pointing bullish? >> if you looked in the last six weeks, the credit situation supported the move in stocks improved spreads are down i think treasury yields and want to see two-year yields not go down very much from year because i think you want to have the economy strong enough that we keep the option or the likelihood of some perhaps fed rate hike down the road in the market as opposed to the marktd pricing in slowdown and deflation. >> the headliner on earnings is out. alphabet with results.

josh >> alphabet reporting $12.77 not immediately clear whether that compares to the $10.82 the street was looking for on a top line, though, 39.28 billion. looking at the segments, properties revenue 27 billion in the quarter. ad revenues 32.6 billion other revenue at 6.5 billion other betsrevenue 154 million. it looks like other bets operating loss, total tack in the quarter 7.4% and total tack test taj of ad revenues and then paid clicks up 66% year over year guys, back to you. >> shares lower by about 2% after hours, mike. what stands out? the revenue was pretty much on target. >> yeah. seemed like in a broad sweep it

was roughly on target. so i'm not seeing anything that would really cause the market alarm. obviously, a marginal move here. the stock is, you know, still like 12% below the all-time high and rallied up into this number. >> the revenue that people look at, slightly ahead of expectations and doesn't talk to this pullback in the shares after the result the eps on the surface is just said looking ahead and continuing to dig into that. cathy, in terms of the valuation of this particular company, is this one of those that will grow into its premium valuation >> if they're successful and going through growth, if they're successful with way mo it should be $2 trillion today i know some analysts have it valued at $170 billion but for the entire market, so if

they're successful there, this is a huge call option for that and another thing google has, the number one ai company we were just talking last week about alpha star, the latest chip, was able to beat one of the top gamers in starcraft 2. this is occurring 18 months after the alpha go victory most people thought it wouldn't happen for ten years that's how far ahead they of ai and we think autonomous cars are closer. >> i think of you as did greatest tesla bull. >> yeah. >> tesla in the stratosphere these are competitors, right >> oh no they're probably the two leaders in this space. the losers are almost everyone else we think. cruise automation may have a bit of a play and part of gm no, no, no we think tesla's way ahead of way mo and the game.

there's no comparison from our point of view. >> mike, in terms of other areas, i guess it's cash used at the moment and something they note they need to hear more about. there's a cash cow of the advertising business and how much longer to hit margins >> we are at a point i think it's obvious for the company to get the questions but they have never really signaled they were going to enter this sort of capital return mode or anything like that. they're giving more clarity on that part of the business so maybe they'll be under pressure and i don't think it's punished for it right now so maybe that's what has to happen for that story to change right now. >> it's so interesting on alphabet how loved it is 98% of analysts say buy. the most in a while. always up there. >> sure. >> but if you look over 12 months it's gone nowhere. >> relatively range bound. what is amazing is for a company this size and already that much dominance to have the growth rates, you could say it's built

into the valuation when's interesting to me is the google facebook valuation, trading up at a premium and rallying and google has come in and above the longer term average. >> i think what google just did is validate what happened to facebook the advertising dollars moving off of tv into digital are benefitting all these guys and there aren't that many places to did. >> yeah. we're down about 2.8%. hard to dive in where that line title is that misses that people react to and more on that in a bit. gilead earnings are out. >> earnings for the fourth quarter $1.44 adjusted which is lower than the estimate of $1.70 per share. revenue at 5.28 billion and beat expectations of 5.5 billion. hiv drug category brought in higher sales in the same quarter last year.

the broader quarter lighter than the same period in 2017. the company increasing its dividend by nearly 11% we are looking at shares down just about 1% in the extended trade. wilf, back to you. >> seema, thank you. mike, what is your take on this stock? >> bigger picture it's stuck for a while. it looked cheap for a long time. market doesn't know what to do with a company of this market capsize and seems like the main products are post growth so capital return raising the dividend seems to be a big part of this story. >> underperformed. down 15% over 12 months. jpmorgan with a new note today suggesting apple to acquire netflix to boost its place in the space saying it would be the best buy for apple because it fits with apple's preference of content. netflix subscription model fits

with apple's service revenue model. jpmorgan suggested activision blizzard and sonos as other acquisitions for the company they're all the finishing the day higher today cathy, do you think they should be making an acquisition >> i think they should be building definitely need to up their content in terms of video. i don't agree netflix is a good way to do it it's horizontal in terms of platforms. on android and samsung what will they do with that? lose those customers doesn't make any sense to me. >> could they buy another content producer at the moment or they have to do it organically? >> you know, i'm sure they could. they could but if we look at how much netflix is paying, we think that if apple spent $50 billion on building its own library that it could do it. it would have to bring in more

expertise. >> appears to be what it's trying to do this has been such a long debate on wall street what should apple do with the boatloads of cash? apple ignores. >> what i find interesting is it does tell you that the analyst who put this out is probably getting the questions of investors. i don't think it's about what should they buy necessarily but the next stage of apple as a company and do with the capital now that iphone is maybe reaching a maturity level. they have relationship with 150 millionusers apple has 1.6 billion devices in people's hands so apple could do that part of it so to the point, i don't know why you pay a huge premium to an intrinsic value to that. >> you are not, to play devil's advocate, you are an expert at creating handsets and i guess that - >> netflix was an expert until a

few years ago. >> maybe easier to do than suggested but can they make that transition of valued as a hardware company as a services company when the percentage of revenue is still tilted towards the former, not latter >> i mean, they have held their gross margin pretty well because the services as a percentage are higher margin and yet keeping the margin flat so they're already doing a lot of that one of the things i find interesting ur interesting, two of the former employees prosecuted in china for stealing their autonomous driving secrets i suppose. i don't know what it was but obviously they wanted something. i have a feeling more is going on in that realm the ultimate mobile device right? autos. than necessarily content. >> you mean what apple's working on >> yeah. i think it's intriguing. >> whilst we have you here, also about tesla, what did you make

of that acquisition? >> well, we think that it's ultra capacitors solid state batteries. we think elon and team probably see a big opportunity here sooner than other people do. what we have learned is most battery companies if they want to scale they're going to present themselves to tesla. you know if they're ready to sell and present why they might be worthy of being bought and i have a feeling that happened here. >> am i right that you have been cutting your size of your stake in tesla >> no, no. well, what we did is bought it through august and it got to 10% of our portfolio we can't buy above 10% so it would have been 15% of our portfolio so we have been cutting for that reason but still the largest position in the portfolio at about 8. >> the cfo departure, something you're concerned about or not? >> no. i'm not concerned about that i mean, i think that job -

>> the fact they buried that in the call. >> i just stayed on until the end of the call. i don't know why but i expected something. things were awfully quiet on that call. very well behaved. >> but the fact that it was at the end of the call doesn't raise red flags for you, concerns like that >> no. >> no? >> she's sticking to her guns. >> good to hear why the stake was cut. management reasons good stuff thank you for joining us. >> thank you. we have another earnings result on seagate technologies seema? >> big beat on the bottom line reporting $1.41 adjusted revenue is in line with expectations at 2.7 billion just looking through the earnings report. manageth citing a more challenging demand environment which is consistent with some of theother semiconductor companies and their earnings reports and also a mention of the geo political uncertainties impacting the storage industry shares up 1.6%

wilfred? >> seema, thank you very much for that mike, up about 1.6%. take on that >> very tough area if you look at seagate and western digital. western digital is a big underperformer challenges and maybe enough pain is felt here. still to come here on the "closing bell," shares of alphabet volatile. costs per click fell year over year we'll discuss how to play the stock in the wake of the results. some lawmakers in washington are taking aim atwal wall but proposing limits on corporate buybacks we'll debate thempt t iaconhe economy and your investments the latest innovation from xfinity

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the xfinity store is here. and it's simple, easy, awesome. welcome back shares of alphabet trading lower. for the reaction, to the numbers, down 3% as i said, we have david garati, tom simantati and very good afternoon to you all, excuse me thank you for joining us tom, if i start with you, what's your key reason you think the shares are moving lower?

>> i think people are expecting good numbers and they delivered good numbers and beat in areas but perhaps hoping for a really big beat we got a big performance that shows google is still powering ahead and that its business model remains very sound. >> ali, your view? >> i agree, actually i think the numbers came in ahead of expectations, of course, and that just show that is these guys continue to dominate the online advertising market i think everyone was probably expecting a slowdown in search revenue which basically makes upmost of their advertising revenue currently but again, dmoi demonstrates they continue to dominate a good thing in the numbers is operating margin i think the operating margin between i think 20% or 21% that was a little bit better than we had expected which,

again, shows even with more hardware products, lower margin hard products, contributing the revenues they continued to generate demand and, of course, bottom line from the higher margin online advertising so overall i think it was pretty positive. >> operating margin at 20.9% going through the other line items, ali, paid clicks up 66% cost per click down 29%. was that expecting >> yeah. i think that's pretty much expected you have seen that consistently forthese guys. pay per clicks is basically another way of saying the inventory, the advertising inventory sold by google and cost per click is the price they get so the higher the supply possibly based on volume discount or any other thing the lower the price they sell it at but at the end ofrt day selling more inventory, more volume of online advertising and that

drives the growth of your overall online advertising revenue so i think that's overall not really surprising. i think that's pretty positive. >> tom, obviously, the core business model as has been mentioned here, a chugs along and similar story for 15 years at google but i guess the question now is exactly whether the company is at a different spot strategically of having to make more investments and what might we be able to hear from management on any of those fronts >> yes google as an incredible business model and they have spent more and more time talking about the futuristic projects, some of which they call other bets they like to call the company an ai first company and the promise is that, you know, some fantastical technologies will come along bringing in new sources of

revenue. we are not seeing that so far. but hopefully we'll get updates from management on where those things are going. >> david, do you think the advertising space particularly online is getting increasingly competitive or the fact that google compete in eps and even though amazon and the likes are growing very fast that one or two or three players can dominate this space? >> i would agree that the duopoly is coming and and clearly indicated when amazon reported for 2018 they had more than $10 billion in other income mostly coming from online advertising and we would argue here is looking at am don? terms of platform around e-commerce their natural ability to gather consumer data is perhaps certainly stronger than facebook that has to gather it from other platforms google to their benefit has

search and duopoly is broken and what stuck out as the fly in the ointment is that traffic acquisition costs came in at 23% of revenues and an expectation on the street that this would be a lower number 22%. but still. there is an issue here structurally where costs for google arguably because of competition are going to be going higher and obviously we will have to see how that plays itself out over the course of 2019. >> so, ali, talk about the share price. it's done incredibly well and stagnated over the past year or. so i think speaks to this reaction here after hours on the bottom and the top line. what's the hesitation with google versus the other fang names. >> at one point the overall growth, top line growth of google to decelerate faster than the market expects

and that's mainly from one of your other guests mentioned is that amazon is the third major player in the overall online advertising market but, however, that brief is while i agree with it i think it's exaggerated in the reaction in the price of the stock so currently i mean, going down a little bit more i think it actually creates a buying opportunity for a company that continues to grow top line, especially advertising, strong double digit rate. the other revenue which includes actually cloud which is an ever expanding pretty much growing market i think that's positive for these guys and it continues to just generate a lot of cash remains profitable an on the side, of course, keeps investing in additional futuristic businesses, although we are getting closer to that level five autonomous vehicles so overall i would see this as becoming more and more attractive as the price is going

down. >> guys, we'll leave it there. thank you all very much. buybacks have been under assault by some lawmakers but we'll break down the charts to show you why buybacks don't always help. disney is the big name on tomorrow's earnings calendar find out what to expect later.

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with sue herera. >> hello, everyone here's what's happening that the hour virginia governor northrum refusing to resign he told staff today he needs more time to decide. he has denied being in the racist photo that appeared on his yearbook page. president trump this afternoon nominating david bernhardt as interior secretary. he was the acting secretary since december he's a former oil lobbyist yet to be confirmed by the senate. 12 players on the university of houston soccer team diagnosed with a serious medical condition called rabdo caused by muscle injury, sometime it is result of too much exercise. the condition's developed after a workout last week. at least one player has been hospitalized. and actor c kristoff st. john died at 52. he returned to the show last

march after a four-month leave of absence for psychiatric treatment. a police report has his death as a possible alcohol overdose. you are up to date that's the news update this hour i'll send it back downtown to you. >> thank you. let's take a look at how we finished up the day on wall street a strong one led by technology the dow closing higher by 175 points got buying there into the close. s&p 500 ended up almost .7%. the nasdaq led all day long thanks to the strength in technology up more than 1% and the russell 2000 small caps popped 1%. the background here coming off the strongest win streak for the dow and the nasdaq since back in 2017 here's an overview of the big earnings so far after the bell google beating on the top and bottom lines declining after hours. gilead missing on earnings and seagate technology beating on earnings and matching revenue

estimates. now you are up to date on the scorecard. some say companies repurchasing the stock is a way to lift share price using company cash mike santoli looking at this issue. at the telestrator today. >> yeah, sara. part of the controversy, the criticism that somehow it's a rigged game and companies will lift the share prices by doing this and therefore executive compensation higher. this is the past four years of a few buyback oriented etfs compared to the s&p 500. since the s&p buyback etf was listed, in early 2015, this is the buyback achiever's etf and companies selected for the active large ongoing buyback program and see that the s&p 500 beaten both of the strategies over the last four years why is that? well, maybe some of the sectors of the heavy buyback companies

are the ones that have not performed that well and not automatic. many reasons and sources of selling and buying in the market and not necessarily been a form. these stocks could have gone down more. or not performed even this well with no buybacks and it's not so automatic but if you look over the past ten years and especially into about 2013, there was a very pronounced pattern where that pkw etp outperformed by more than 50 percentage points over the course of the last 10 years but the outperformance peaked around here in 2013, maybe qe era, ending around there. it goes in phases i guess is the answer. >> i guess, mike, the criticism tends -- for people to have a criticism it tends to be a company specific issue ie, should the ceo be using the cash in a better way

give it to us directly in the form of dividends and not a buyback to influence the compensation and not usually a debate of buyback companies outperform an etf. >> but there seems to be this assumption that management has very strong incentives to use the cash for buybacks. and so that's where it's just not clear that it can rig the stock price higher as many people have assumed. >> speaking of that, senators schumer and sanders called for a limit on corporate stock buybacks saying self indulgence is a problem for workers and the lon-term strength of the economy. >> joining us to discuss diane swann and brian brandenberg. thank you both very much for joining us here.

i guess this, diane, if i start with you, there's a lot of arguments in here about whether or not ceos are taking advantage of the broader economy and the broader worker is this a debate about capital allocation or a broader debate about socialism versus capitalism >> i think it's even beyond that although this is -- does have a socialist side to it i think what's very important about this is this is a symptom. the stock buybacks, the punt of not investing, why are not the companies investing more in both, you know, their infrastructure, private investment why isn't that picking you were and seeing more investment in human capital? that's a much larger debate and much more complex. the income inequalities are certainly very concerned about that i have testified to congress on this issue not that anyone heard me or cared. but i think there are important issues and treetdiating a sympt

instead of a cause and this is just one of many things of sort of a problem in the broader economy and we need to have that broader debate. >> so is your basic take, diane, that something the senators are proposing like this, assigning sort of preconditions with buybacks to make investments in workers and hiring and investing in the business a good thing or not? >> i don't think it's a good thing. it's treating the wrong problem. and i think the reality is that once you start doing this, you start closing down companies in the u.s. and having them go elsewhere and it's the unintended consequence and bothering me is sound bite solution to real problems and no one's having hearings or debate about the unintended consequences of the policies and how will you arbitrarily what a company should do for a company? i think there's a much more fundamental issue and why are

companies not investing? because of political dysfunction of washington and uncertainty out there. walking on eggshells this is what we need to have a real discussion and debate about. >> brian, have senators schumer and sanders got a point here or missing something? >> totally missing something this is ridiculous if companies don't have good ideas of where to spend their money, give it back the investors i investors and channelled to companies. there's an assumption to the base of the proposal and when companies buy back shares that money gets buried in the backyard of a millionaire. this money gets channelled to companies that can use it in productive ways. these senators should be cheering when you have buybacks. it is getting money out of s&p company that is don't have ideas and getting it to people to hire workers, expand the businesses and it just shows the extent to which the left in this country wants to go to centralize

decision making in washington and that is going to push business, growth out of this company. it's a destructive idea. no way to be thinking about this. >> mike, it seems like better politics than economics? >> it is not great economics i do think that there's a fundamental issue, if you believe that there has to be some policy fix for wealth inequality or companies under investing or hiring, this is a clumsy way to do it. i do say it's extremely popular, this idea really strikes a note with the public out there because it seems -- if you just intuitively it seems like it shouldn't be allowed. >> yeah but -- >> before 1982 it was not allowed. >> they shouldn't be selling half-baked economic truths to the public and when buybacks happen capital is reallocated to other businesses and not okay to be good politics and bad economics. >> they're responding to an

environment of promised a cap x boom and both sides can use clumsy economies to sell a political position it that's true. >> i think, as well, mike, the point that's very fair and kind of the thought process behind what they're proposing is 80% o stocks belong to 10% most wealthy households so there is an argument therefore to try to reallocate that and maybe the better approach is a better capital gains tax when selling that stock and not - >> heavy handed. so you have to pay your people $15 a hand or can't buy back stock. >> i think if -- >> sorry one second, brian. diane? >> i just want to add. this idea that they're just reallocating money is that we have seen less innovation, less investment and these are

fundamental probables. we have seen companys that have unusual power in the market and that is hurt workers, as well. large issues we need to get our arms around and not done in sound bite responses and important not to just gloss over the fact that we have some real problems here but let's have some really thoughtful debate. let's have some hearings about what the intended and unintended consequences of policy are and get it right with some debate and some actual information. of course, people ask me what does washington ask you. the fed asks a lot of questions but everybody else in washington doesn't ask economists many questions at all. >> i'm biassed. >>if they want a 15 -- look. that is back door way to achieve other objectives f. they want a $15 minimum wage, then try to pass that. the politics there are worse than with the buyback and going this route that's ultimately hurting capital markets, businesses and american workers and consumers.

>> thank you both very much. diane, brian. >> i think we will have it again as the political season heats up. shares of google parent alphabet lower josh lipton just spoke with the cfo about the results. josh >> i had a chance to catch up briefly with the cfo about the report obviously, that is company that continues to spend money cap-x higher than the street looking for so i did ruth porat about that we invest in tech infrastructure to support growth. she told me her view is that machine learning opens new products or advertisers and users and announced sizable investments in real e state and saw those headlines of expanding the office footprint and i caught up with suntrust who covers the name before this print and he had noted already this company had seen the highest increase in cap-x of any

fang name that he covers also about competition you know, guys, obviously amazon reported we saw that their ad business continues to grow strongly i asked ruth whether that was coming at the expense of her company. she said site review grew 22%. she said advertisers will be interested the advertising market is continuing to grow so seeming to suggest there that the overall market is growing with the contribution of amazon moving in. finally, i did ask her about google cloud thomas curian from oracle and a lot of experience and i asked her does that signal a shift in strategy for google cloud? she said that she's excited about him joining, his track record she said speaks for itself and will continue to drive the success of the cloud last year they did start tosho some data points in the cloud.

gave us some metrics interesting to see whether they do so again on the call going on right now. guys, back to you. >> quick question, josh, on cost per click. i know it's a trend and always falls but fell 29% i mean, is that something of concern to investors that they just don't -- won't have the pricing power on the ads >> i think we'll see what they say on the call. checking in quickly with analysts, few guys on the street, not metric they called out as a worry they did call out cap-x and i talked to some folks saying gross margins lower than expected that r&d expenses up 800 million, higher than expected. on the flip side, you did see the core properties that they own and operate, search and youtube and $27 billion, up 25.1%, higher than analysts expected and see how it plays out on the call. >> all right, josh thank you. good perspective on apple --

excuse me. alphabet parent company of google lower been a lot of tech earnings lately. we'll preview disney earnings for tomorrow. the key things to watch for in that one coming up this is loma linda, a place with one of the highest life expectancies in the country. you see so many people walking around here in their hundreds. so how do you stay financially well for all those extra years? well, you have to start planning as early as possible. we all need to plan, for 18 years or more, of retirement. i don't have a whole lot saved up, but i'm working on it now. i will do whatever i need to do. plan your financial life with prudential. bring your challenges.

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coming up, disney stock up slightly today in advance of tomorr tomorrow's earnings. what to expect from that report, next it's time for the ultimate sleep number event on the

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introducing the all new lexus es. every curve, every innovation every feeling. a product of mastery. lease the 2019 es 350 for $399/mo. for 36 months. experience amazing at your lexus dealer. welcome back disney releasing earnings tomorrow afternoon julia boorstin again with a preview from l.a.

hi, yulia. >> wilf, disney is facing tough comparisons as the company will report its first quarter with a new division for direct to consumer and international revenue. total revenue is projected to decline by 1%, about $15 billion. on tough comparisons with the studio which last year released the "star wars: the last jedi. the investment in streaming weighs on results but the big thing investors want to hear is learning more about the direct to consumer business and the streaming disney plus service to launch later this year >> julia, thank you. we'll look to you for that tomorrow mike, your take on disney and how it performed >> i think that idea -- julia mentioned we need to her about the items because financially this is a company in multiple transitions. right? absorbing the fox assets going to direct to consumer.

so you have that new revenue stream and expectations. >> espn decline, the worries about that quieted a little bit. >> >> moved to the back burner because it is more of a slow erosion story and disney with a strategy and an answer along those those fronts. it's more about what are they going to do to make up the difference >> last quarter we had the big tease about what the new over-the-top strategy was, disney plus, which i thought it was going to be something more inventive. there's not a big ticket item we're not sure about now it's more guided on those key themes. >> i think so. how they're thinking about pricing, about what content goes in each of these platforms and when they can re move it from others. >> up about 2% over last year. >> maybe they'll announce seven new marvel movies. >> and lots more sequels. >> tesla short sellers are banding together to gather research on the company in an unusual way. we've got the details coming up.

the super bowl may have been a dud, but it did have the dude, jeff bridges, reprising his iconic character we're going to size up the winners and losers for you next. tomorrow david sits down with jeff smith and papa john's ceo to discuss the $200 million investment. >> nice pronunciation. >> thank you

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we're back more headlines crossing on alphabet josh lipton has them for pus hi, josh. >> well, some capital return news on the call to talk to as well cf oseiing after taking the company's needs into account, the board has authorized the repurchase of $12.5 billion capital stock. cash and market securities equal $9 billion we'll bring you more headlines

as they come. >> thanks very much for that. >> by the way, to your point -- >> not very big to the size of alphabet this is almost a token buy back. >> it's a little jab at senator sanders. >> it was a shame it didn't come moments before our last segment. anyway, time now for or under the radar segment where sarah, mike and i take a look ata few stories that didn't get a lot of attention during the business day. the patriots versus the rams wasn't the only rivalry over super bowl weekend there was also a beer battle b bud light taking aim at miller saying they have fouewer calori, carbs and taste. also both opting for a stellar

instead of their ushual cosmo an a white russian. on the bud light, i didn't get it i guess the angle was because they're saying theirs is more healthier and purer. >> it's an artificial sort of flavoring. >> fine, but miller's push babak is theirs is -- it stood out for sure. >> it was pretty clever. >> i was surprised there was corn syrup in beer next up, goop signing a deal with net flflix for a new docuseries this is her lifestyle brand where they write newsletters and have products. it was last valued i think at $250 million clearly her star power just bringing a huge boost i would think. >> an early influencer before they had the term in a way. >> but they had controversy as

well remember those vaginal eggs? there was a lawsuit. a lot of bad press as well. >> exactly a group of anonymous tesla short sellers launching a website calling it crowd source tesla research group compiles and shares data. of course tslaq is a joke because when a company is in bankruptcy a ticker has a q at the end. that's a bit of aggressive position the fact that they're sharing it and they want to spread the word is aggressive. >> but it also allows them to stay anonymous which is also a bit sneaky. >> also not unique, but -- they can't be tested on the views. >> i think it tests elon musk's patience already at war with the short seller. >> no doubt about it the shorts tend to overplay their hand with tesla because the stock does whip around a lot. this won't change a lot

probably. >> they still maintain a big position. >> $4,000. >> that's the target >> that does it today for "closing bell" thank you very much for watching. >> have a good evening "fast money" begins right now. "fast money" starts right now. overlooking new york city i'm melissa lee. tonight the last of the fang stocks, alphabet out with earnings moments ago that stock down about 2.5% josh lipton spoke to cfo he's been monitoring the conference call and will bring us the headlines the chart master says there is one group of stocks that have come too far too fast. they'll tell us what to buy instead. we start with the rally, the nasdaq officially exiting the correction as tech stocks are on the run. the nasdaq now up 18% from the depths of the december lows and you'd think it was off to the races, but with alphabet coming up lame in the