but having to reinvent itself and evolve, legacy company, encumbent company. they seem to be doing it very well and same could be said of chipotle and all their troubles and how they, under they're ceo, has refashioned their business. >> mathisen basket. >> burrito and the times >> good afternoon. very warm well tomorrow to the closing bell i'm wilfred frost. >> and i'm sara eisen. two former fed chairs will be here for reaction to janet yellen's interview the state of the luxury housing market looking forward to that. another big afternoon of

earnings chipotle, match and more after the bell we'll break down those numbers as soon as they hit. >> taking a look at the marks this hour, rally has taken a pause here though, we're talking about modest declines after five straight days of gains for the s&p 500, s&p is off a quarter of one percentage point the dow is only down 15 points earlier in the session it was down a lot more, almost 100 points let's start with yellen, former fed chair in an exclusive interview with our very own steve liesman moments ago. listen. >> would you say that it's possible that the next move is a cut by the fed >> of course it's possible if global economy weakens and that spills over to the united states or we do see a weakening in the u.s. economy it's quite possible that the next move is a cut. both outcomes are possible.

>> fred michigan and sarah, thank you for joining us may have just lost sarah apologies. no doubt she'll be able to join us back in a moment. no, there she is my apologies, sarah. how likely do you think it is -- what is the balance of likelihood, excuse me, between a hike and a cut as the next move? >> so i think what you heard janet yellen say is pretty consistent with what jay powell has also been trying to position the fed for, essentially to put the fed and the economy on an even keel right now, a place where it can move either way you can imagine, i would say, a balance of probabilities being almost 50/50 in terms of either a rate hike or cut. >> i was listening to janet

yellen speak she also had a communication slip-up, powell has been criticized for miscommunicating and having to back up. how challenging is it to communicate to the markets your policy, forget having to make your policy? >> so, it actually is quite a challenge. it's something that can be really inordinately difficult. keep in mind, too, that the chair of the fed is the chair of the fmoc, and that committee contains a lot of different voices and perspectives. and so the chair is also attempting to communicate the views of everybody on that committee. >> rick, what do you think >> we're in a situation where the fed basically has to worry about where the data is going to evolve

it could very much go the other way. part of the problem for the fed is tremendous uncertainty, particularly in terms of government policies. the trade war issue is a very hot one. that can go very sour, this issue of the government shutdown it could happen again. if those things resolve in a positive direction the fed will have to think about going back to raising rates if unemploymen rate stays low, that will present issues for the fed it could also go in the other direction. one thing janet said that's extremely important to understand, the fed should operate quickly if something changes and the classic example occurred when we had the beginning of the global financial crisis, in august 2007 the economy was booming.

inflation was going up and there's a shock basically in august of 2007 the fed started cutting rates in september. the fed needs to be very nimble and depends on the datea just because the fed is a little more uncertain right now doesn't mean they shouldn't raise rates particularly if, in fact, inflationary pressures start to rise that could very well happen. the fed is saying it's data dependent and there has been a change of views in the last cycle that, in fact, the fed is more concerned about weakness in the global economy not just in the u.s. but the rest of the world. which way it's going to go is not clear but the fed should be nimble and very willing to move rapidly in a different direction if that's what's called for.

>> sarah, i thought the discussion about the balance sheets was fascinating and januariette yelen saying that it didn't see financial conditions tighten at all that could change. could that now change again by simply seeing the rhetoric change by the current fed chair or do you think that is on a definitive tightening path from here on out? >> so -- >> is that to me or sarah? >> sarah, go first. >> so, yeah, i think that there is a way in which the balance sheet can be thought about in a way that's not automatic pilot obviously, this takes a fair bit of planning. the work having to do with the balance sheet. rick points this out as well, the fed is prepared to be nimble

as well. what is auto -- does it have to be on autopilot? it is not meant here to be something that is negative or the fed can decide meet big meeting what that next balance sheet move will look like. i think the nimbleness is equal applicable to not just the fed funds rate but how the balance sheet gets adjusted. >> the word here, rick, is that the fed is moved, pushed by the market from autopilot balance sheet to more nimble on the balance sheet. i think the issue here is if, in fact, the fed can monitor policy with just the federal funds rate, there's a technical issue

here as long as we actually are able to use the interest rate as our basic policy tool then slivenging the balance sheet down to the level we think is best for managing monetary policy is the way to go. i don't think that's off the table yet. the issue here is that if we get some big, negative shocks and now there's a little more concern about this and janet mentioned some of the issues here, then you might actually need to be able to use more tools than just the federal funds rate in fact, this is why we went to the use of the balance sheet in the first place, this idea that, in fact, interest rates were getting so low that we couldn't get much lower we needed other tools and that should be in our tool kit. i think that's what's going on here if, in fact, things are dpg okay and we're in the getting big, negative shots, then the fed should stick to this autopilot the way to think of this is that you put on autopilot, everything is normal, going fine. all of a sudden the first thing you do is take the plane off the

autopilot. i think that's what the fed is saying. >> we heard from janet yellen there about the concerns out there across the globe, softening global growth and certain things like brexit and we heard from you that things changed all of a sudden leading to quite a change in fed policy. are the international risks that exist out there now something that could cause a similar reaction in the year ahead in the u.s. economy and the fed's policy, do you think >> so i think it's much less likely in that we had something where the actual overall world financial system took a huge hit immediately. and actually it was a remarkable turn of change in behavior on the part of the fed and actually one of the things that, you know, unfortunately, i'm biased. i'm a very good friend of ben bernanke, but he was a hero. he got t that helped a lot in preventing a depression, which really could have happened

so i think the issue here is that the likelihood is much less of having that kind of a shock i don't see it as something that we need to worry about but on the other hand, i think the fed has to be vigilant and i think the fed not only has to be vigilant against negative shocks in terms of the overall economy in the u.s. and elsewhere, but also the possibility that running it at this high-pressure economy could actually mean inflationary pressures may surprise us. that happens, the fed has to get cracking and raise interest rates and that's extremely important as part of what central banks need to do. >> it's a big either/or. final question, sarah, who has a tougher job, yellen or powell? >> well, at the moment, it's actually powell, because he's the one in the seat. he is the one in the driver's seat. >> i'll rephrase who had a tougher hand as the fed chairman >> when they took the role >> it's interesting. i think, you know, that this president, actually, is making

the role of the fed a little bit more challenging than perhaps the last one did this president is really what we call, you know, working the refs right? the idea being that the fed needs to stayindependent and there has been, you know, a haranging that i would say has threatened that independence chairman powell has done an amazing job to try to manage it, but i have to say that is not easy that is not a hand that any fed chair really likes to be dealt with. >> that said, chair powell got a free steak dinner. you have to weigh that. >> i have to say economists always said there's no such thing as a free lunch or free dinner and this is certainly one of those cases. >> exactly very good. some economist fed governor humor. fred mishkin, sarah raskin,

thank you. we'll take that humor any day. bank of america, merrill lynch highlighting higher cost of capital and rising volati volatility joining us from bank of america/merrill lynch to talk about this, savita subramanian. >> unless the fed starts aggressively easing and does another round of qe, it's hard to imagine short rates will go lower from here. and then if you look at other sources of upward pressure on the cost of capital, you've got credit relatively tight and tightening over the next couple of months, higher penalty on owning debt from a corporate standpoint given that tax reform now isn't as advantageous for corporate debt owners. and then you've got, you know, all sorts of other up ward

pressures on the cost of capital which conspire against companies that have high leverage ratios, that need to borrow to grow their businesses so i think where we are right now is an environment where probably the most important decision that we make as investors when we look at our portfolios is do i own companies that generate capital or do i own companies that need capital to survive and what you want to stick with are companies that are throwing off cash and you want to avoid companies that are burning cash. so i think it's interesting within the context of earnings where you've seen companies that have guided higher on capex have actually been penalized for that because that's seen as a sort of cash burn. if you look at companies that are spending more on either labor or, you know, building out excess capacity or costs coming back online, these are basically draws on capital that's the name of the game. you want to avoid companies that

are spending or being forced to spend either on interest payments, higher labor costs, capex, et cetera, and look for companies that are simple cash generators. >> savita before we get to -- >> it's not as easy as it sounds, though. >> before we get to your specifics based on that view, is it not fair, though, to say that the cost of capital on an historic basis is still pretty low and, more to the point, balance sheets are still pretty strong >> yeah. >> so maybe this isn't as clear for stock picking as it was in 2006-7 >> here is the thing, though i think what will catch investors by surprise is this is a big change from the normal environment that we have been in for, you know, multiple decades. i mean, think about it we are now at -- you're right. we're at super low levels on interest rates i think that the tenure is in like the 15th percentile of lowness. it's not like rates are high

already but i think if you think about what drives equities and what drives sector and style rotations, it's all about that marginal move. it's about the second derivative even though rates are low, they're likely to move higher. even though credit spreads are tight and companies can borrow pretty easily, the direction, i thi think, is more important than the actual level at this point. >> where does this take you? >> i think we've been in frictionless equity investment landscape where you haven't really needed to worry about credit sensitive companies because credit has been plentiful, available there's been no kind of risk assigned to credit sensitivity and a lot of investors aren't necessarily used to an environment where credit sensitivity risks are rising where leverage goes from being super cheap to actually being relatively costly. >> so which stocks look.

>> even sectors that you would think are the high dividend yielding, so-called safe sectors, like utilities, you've seen issues coming from the leverage burdens similar story for telecom, for real estate companies. i wouldn't necessarily conflate high dividend yield with free cash flow generation instead when we're looking for free cash flow, we're finding it in technology. we're finding it in areas like industrials. we're finding it in health care companies. i think it's much more stock specific we're even finding free cash flow yield in financials, not a sector we historically thought of as being a great place to be in a rising cost capital environment. things are a little bit different today in that levered, low beta areas of the market might not be as safe as we all think they are. >> savita, thank you very much for joining us.

>> thanks for having me. >> from merrill lynch. let's bring in rick santelli for today's bond report. rick, what are you looking at? >> you know, wilf, overseas, ten-year curves have been relatively soft. they can't get through the upper resistance one of the main reasons? look at a boom chart for one year we traded as low as 15 basis points with the monetary policy committee meeting with the bank of england tomorrow and lots of nervousness regarding brexit, european rates are keeping our rates low. dollar index, intra-day, one year it continues to keep resurging i like the pattern on the year to date. two spikes there you see around 95.25, it's trading now close to 96.40. i think ultimately the euro currency is going to slowly cave here a bit more along with the pound tomorrow back to you.

>> rick, we just heard from janet yellen that the next move from the fed could be up or it could be down. does the same uncertainty in terms of the next move also apply to the ecb, do you think >> i think to the ecb, it doesn't apply. it's pretty safe to say that the ecb is going to be in full, not change for a while if our economy slows. if anything, i think they go the other way. i don't know ta they're going to change their mind as 40 base deposit rate what they're doing with the balance sheet may be reversed. mario draghi has hinted as much. in terms of the bank of england, i'm not sure if mr. carney can do anything, in terms of the slowdown of brexit i can't see how any of those will be good for foreign exchange markets. >> might see some tros again from the ecb rick, thanks so much.

>> thank you. t. rowe prices gives us the fang earnings scorecard and why he's staying away from apple long since outside his portfolio, still is. and broker brothers $10 million purchase of the most expensive home ever sold in america. >> and the one in london as well this is loma linda,

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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. >> welcome back. to the closing bell, we have got 20 -- sorry. the dow is negative, s&p down .2%, nasdaq down .4%. negative session throughout. we are higher week today for all of those indices. new tax laws reshaping the real estate market in places like florida and new york. the most expensive home in miami chosing for $50 million and the brokers behind it all, tal and oren alexander also happen to be ken griffin's brokers. they join us with our very own robert frank who covers all of this robert, take it away.

>> sara, thank you tal, oren, thank you you're the miami half, tal, and just did the deal on this $50 million home what made this home worth $50 million? >> i'll take that question, robert. >> sorry, oren, yeah. >> go ahead, oren. >> the sale actually took place on indian creek island, by far the most exclusive secure and private neighborhood in the world. we recognized early on in 2012, my father -- our father actually developed a home that we sold for a record price of $47 million. fast forward seven years later, we just sold it today off market and broke our own record for $50 millio million. >> what are the wealthy looking for in miami what kind of product is in demand right now >> one thing that's consistent around the world, as you see with our recent trades in london and in new york, that the

wealthy, the high net worth individuals and their taste has gotten much more sophisticated and there's few and far in between product that caters to them and indian creek is one of those places, as well as fiana house when we marketed that product four, five years ago, that was another product that catered to the high net worth individual. >> tal, you do new york. orren does more miami. are you seeing a lot of people in new york listing their apartments with the intent to moving to florida because of the tax changes? >> that's correct. since trump's new tax reform we've received phone calls where clients are saying list their products in new york and they're coming to miami in the near future and want to buy something down there and looking to move their families down there essentially. >> you get the listings. your brother gets the deal you get it on both ends. >> it's a family fair with us. >> what is the man driving macro

factor, tal, international money, domestic money, tax rates? >> it depends on the market and the asset. a lot of our clients have a long-term view on these trophy properties essentially that they're buying more global demand for trophy properties than there's actually availability. >> what is ken griffey doing >> i'm not here to talk about my clients or their deals. >> he's getting some of the most expensive real estate in the world. >> again, not here to talk about my client's views in terms of where he likes to invest if you look at that particular project and 15 central park west and all the success they had, they copied a lot of similar ingredients in terms of stern.

higher ceilings were delivered and interior is very different than what 50 central park west delivered. >> i know you can't talk specific about mr. griffin we saw the coverage that he bought a big property in london at the same he bought a big property in new york we were just discussing the price per square foot was $6,000 in london, $10,000 in new york london, a lot cheaper there. do you put that down to factors like brexit? is it kcreating for super high end buyers to get in >> absolutely. there's a lot of opportunity in london if you look at the uncertainty with brexit and we'll see how the dust settles the end of march it's tough to compare a condo to a townhouse on price per square foot. >> we're seeing a tale of two markets, miami, florida, very strong new york, manhattan, very weak what do you see this year for both markets

>> regarding miami, it's evident that the city itself has grown up tremendously and that's the reason we're seeing this influx of new buyers into the market, specifically high net worth buyers gravitating toward these trophy property sbts actual product caught up. today with this house we sold, this is one of the most impressive pieces of architecture in the world. that's one of the reasons it fetched such a high price. in new york as well, we're seeing a lot of demand still in these top buildings, such as 220, such as the steinway. 111 west 57. we're seeing buyers at price points well above 50 million and new buyers coming toward these properties daily i think the top tier of the market is still very strong in all these world cities. >> super rich will always have

money. >> there we go robert, thank you very much. >> wow >> oren and tal alexander, thank you for the conversation. >> thank you for having us. 32 minutes here before the bell and the dow is down 9 points a mild sell-off here on wall street s&p 500 down about .2% bright spots in the session like health care, technology and consumer staples everyone else is down. former top economist for the obama administration discusses whether his party is really embracing socialism, following president trump's slam during the state of the union last night. >> plus shares of chipotle up 70% in the last year we'll see whether that trend continues when they get eithr earnings after the bell. we're back in a couple of minutes. your brain is an amazing thing.

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welcome back news on electric scooter line. hi, aditi. >> it has just announced it has raised nearly $3 billion and also notably it allows lime to leap frog its biggest competitor most recently valued at $2.1 billion. these investors, lead investors include bane capital investors and other investors include alphabet, fifth wall and ggb capital.

bird and lime are in a fierce competition for market share and investment dollars both of these businesses have sky rocketed over the past year. lime are in five continents. big news for this company. >> which has raised more money or gets a higher valuation is this. >> higher valuation is lime, valued at 2.4 billion versus bird, which is about $2 billion right now. they just seem to be leap frogging each other. obviously, as you know, so many cities, as they go into more and more cities, cities are raising red flags, there's regulations, people complaining of trips to the emergency room so in growing so fast, these companies have also experienced a lot of growing pains. >> we tried it we liked it. wilfred needed an extra large

bird, extra long any excuse to show the video. >> takes too much coordination for me. >> thank you so much coming from the reporter who covers it. time for cnbc update hi, sue. >> hi, everyone. happening at this hour house judiciary committee holding a hearing on gun violence for the first time in eight years, focusing on hr8 a bill that requires background checks for every firearm sale. >> for too long, congress has ignored the epidemic of gun violence that plagues this country. after a particularly heinous mass shooting we sometimes pause for a moment of silence to honor the victims but we do not need another moment of silence. we do not need more thoughts and prayers. we need a moment of action. >> the man accused of kidnapping 13-year-old jayme closs after

killing her parents was in a wisconsin court today. members of the closs family were in the courtroom. fox has renewed the simpsons for unprecedented 31st and 32nd seasons through the year 2021. that extends its record as television's longest-running scripted prime time show it will bring the simpsons to 713 episodes. >> i was going to ask how many episodes they have 700 episodes >> 713 can you believe it >> very impressive. >> seems like yesterday. >> sue, thank you very much for that let's check in on the markets as we head to break. we have got -- >> you're counting like me today. >> i know of the i've done it twice i haven't got it 25 minutes until the close we are lower but only slightly after the dow down 22 points high of the session was up 28, low was down 100

>> still ahead, have we reached peak video games shares of ea have taken a plunge. analysts will join us coming up. bombshell departure at apple as head of retail steps down we'll take a closer look at apple's full leadership structure and who could be a potential suesr t ck.ccsotoimoo imagine traveling hassle-free with your golf clubs.

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big tech earnings are behind us it was a pretty good quarter fang stocks are higher for 2019 after a rocky end to 2018. portfolio manager of the t. rowe price fund under performed its benchmark in the past year but is beating year to date. joining us is josh spencer is fang back, josh >> i think so. thanks for having me on and you mentioned 2018 was a really challenging year i think like a lot of folks, i was happy to put it behind us. i think we're due for a much better year in tech in 2019. it's been a good start in terms of earnings so far. >> talk us through that view that it's been a very good start for earnings what, in particular?

the advertising trends >> i think what we've seen is a broad-based strength around tech whereas in 2018, we seem to see periodic rotations and certain sectors were under pressure from time to time, either regulatory in the internet or from cyclical fears in semi conductors we look here in 2019 we'll see fairly broad-based extent in cloud software, internet and the worst is behind us for semi conductors so i think we've seen that in earnings season and the stocks have begun to respond more favorably. >> >> it's interesting because they were among the hardest hit last year, real bounce back, especially today skyworx. why are you so sure that the downturn is over >> you can never be sure look at a company like skyworx or microchip, that's one of the

biggest holdings i have in the global technology fund they've been through cycles like this before. they saw a peak to trough decline and they've begun to see bookings and revenues recover and talked about that on their conference call in the past. it would be one thing if they had never been through cycles before this is an experienced management team, well-positioned company. and i think it's worth putting merit behind what they say. >> josh, you don't like apple, though why is that? >> yeah. i think apple just has a bit of an issue where, with price points and market saturation, it's very challenging for them to grow the business and as i look ahead, i think there are companies of similar size that have a lot better growth prospects, if you think about a company like alphabet, for example. they just reported 23% revenue growth in the most recent quarter. alibaba, the chinese leader

actually grew over 40% last quarter despite all the challenges in the chinese economy and so while apple has a really durable franchise, i just don't think they'll be able to grow the company at the rates of these other opportunities. >> i mean, last year, one of the worries that was really hanging over the sector all year long was fear of regulation and just bad press. alphabet got dragged in there. a few other names as well. how do you think that plays out in 2019? do you think the backlash continues? >> i think it will be with us for a while but hopefully, we're seeing these companies take steps. i think we've seen that with facebook, with their aggressive hiring, the attempts they've made to combat abuse on their platform they'll never be perfect and there's still work to do, but the high expense growth and bringing in a lot of people working on the problem, i think, has helped them at facebook. same is true with google

the underlying businesses are still quite sound. and if they can take steps to proactively improve and respond to what are legitimate issues i think they'll have a much brighter future. >> what's your view on netflix we talked about disney and their earnings, about to take on netflix directly do you think they have a couple of rough years ahead of it >> no. i think it has a really bright future i think netflix has a wonderful cycle going of increasing subscribers, allowing them to drive more revenue, which allows them to invest in content. and it increasingly looks like they're rolling a snowball downhill and it's one of these companies that has grown up, developed a lot of scale they have great content. it travels internationally i think this could be a really big company. it's already $150 billion market cap but it has a lot more runway in the years to come. >> very quickly, your fund is up

18% so far this year what would happen to these names you have, very high beta tech names if the fed stops its pause and starts raising rates again >> i think that can cause some volatility one thing we try to do with a global tech fund is own companies that can drive their own growth that are not necessarily dependent on macro, fed policy netflix is a perfect example the fed changing rates may impact the stock for a short period of time, but that cycle of improving scale, improving content, that's not going to be derailed by a fed cycle. with the fullness of time, tech offer offers us a lot of opportunities to find companies that can make their own way. >> josh, we'll have to leave it there. thank you so much for joining us. >> thank you. >> josh spencer from t. rowe price.

>> 20 minutes to go before the closing bell major averages, sort of little change to lower right now. the dow down 17 points biggest drag is dupont nasdaq getting hit a little harder strength in technology, especially in those chip stocks we were just talking about. >> a strong week as well. >> still to come, we are awaiting a slue of earnings after the bill chipotle, match, fire eye and more we'll bring you the numbers as soon as they hit. >> spotify making a big hit. what they say about original content. coming up next don't go anywhere. ♪ ♪ what if we could turn trash into money? plastic bank is doing just that, by exchanging plastic for digital credits redeemable for everything from food to education...

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♪ >> welcome back to "closing bell." shares up, capri holdings. now it's michael kors, jimmy chu and versace. missed on revenue. raises 2019 sales outlook, having a nice reaction at more than 11% weakness in michael kors was

about accessories, bags and watches. ceo says they plan to and high expectations for versace they are working on their new campaign, it's all about the influencers. ten of them with very big influence. look what gigi did for tommy hilfige hilfiger. >> meantime i'm watching shares of spotify trading down 2.45% as we speak company reported its first quarterly operating profit, which did sort of prove its business model there have been questions about whether it would be profitable any time soon.

ceo appeared on "squawk on the street" earlier today and says the company plans to invest more in original content. >> we are investing in more original content to broaden the appeal of the platform and we're doing that engagement will go up, cost also go down, which increases our long-term opportunity. part of what you should look at in terms of our going forward forecast, both acquisitions but our own efforts in investing in creating these 14 exclusive shows in the fourth quarter of 2018. we're doubling down on that and we want to grow the number of shows that we have. >> really worth watching the full interview on cnbc.com being profitable has been a battle for them. that's been one of the question marks.

investing here, acquiring original content is lot less expensive than acquiring the music, quun one of the question marks about their business model. but also that people spend way more time listening than watching and look at the valuation that netflix gets. >> and that's how they're painting themselves netflix of audio, beefing up content in terms of podcasts and acquiring that i spoke with david faber and he said likely that's why he spoke out now. that he not been very public. >> up next, we'll take a deep ruuraseaofetl e's leadership stcte hd rai steps down n etf? don't just track an index, help me meet a client's need. is the fund built to sell or built to last? etfs are only part of a portfolio. so make it easy to explain. give me a quality fund that helps me get clients closer to their goals. flexshares etfs are designed and managed

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josh, wasn't she considered a possible successor >> she was, sara it's interesting angela ahrendts credited with certain changes at apple there is an entry wrinkle to the story, as you mentioned. she was viewed as a potential

successor to ceo tim cook. it's easy to understand why people think she would be a good fit. before coming to apple, of course, she was widely respected. others are skeptical that would have really happened tech analyst, long-time apple watcher says the next ceo is probably going to share a lot of the same skills as tim cook, a person with much more of a technical background with engineering and operations who can win the support and confidence of apple's army of engineers. cook does have powerful lieutenants that fit that mold, but that deep bench does come with a price tag jeff williams made the same. tim cook, 15.7 million there's a cavea there. also has long-term equity

awards 415 million in stock as far as ahrendts, apple says she's departing for personal and professional pursuit. >> fascinating insight into the potential successor. five minutes left of trade. >> after thebell, chipotle has been one of the hottest stocks on the s&p 500 find out if the latest earnings will help the stk epts meumocke i 've done it! hah! great work old chap. we'll be rich and famous. well i'll be rich, you'll be famous... at least amongst your digging friends. here's a thought, ever consider investing? e*trade has easy to use tools that help you get started. you like playing with tools don't you? 'course you do. ♪ don't get mad. start investing with e*trade.

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welcome back to the closing bell we're well off the lows. all fourmajor industries in negative territory an hour or so, we were much lower, which gives you perspective. we're currently down 27 points, 0.1% week to date all four of those indices up 1 to 1.5. today's declines a little bit in perspective. sectors for you, nothing too drastic. communication services is down more than 1% otherwise nothing down too much. energy suffering a little bit. health care is top performer technology comes in sec. more red obviously there than

green. dollar for you, intraday, seeing a little more strength because of the aussie dollar, dovish terms coming out there dollar is up 0.3%. dow, 30. again, showing that makes more red than green but nothing too drastic in terms of the decliners. >> we flattened out here in the last two days. 13-point trading day, we haven't seen that in a long time with very good reason i noticed it this morning. almost up every single day in the last five or six weeks you have to have a little bit of pause. industrials are up 15% so far this year. we're hitting some resistance. stocks are very pricey if you have 0% earnings growth for 2018, i don't think that's going to happen. if you do, stocks are almost 17 times earnings that's a lot to spend. at 5% you're at over 16 times. it's not surprising we're trying

to pause here. 2741, moving average another new high, though. >> there goes the bell the dow down about 0.1%. s&p and a quarter of a percent naz attack a little bit more declines not as bad as they were at the start of today's trade. still higher week to date. that does it for the first hour of "closing bell." sara, back to you. welcome to the closing bell. i'm sara ei sechltsen. wilfred frost will rejoin me shortly. 19 points, the dow, s&p do down .2% communication services, real estate, energy, consumer

discretionary and other groups, nasdaq closing lower. russell 2000 closing lower a tenth of a percent or more really just a digestion as we look ahead to next week where trade talks will resume in beijing. radar for investors this hour, federal former reserve chairman janet yellen speaking to cnbc's steve liesman on whether sthhe thinks the fed could wave raising rates. and chipotle earnings and the company's expansion. welcome back, carcarrie. nice to see you. >> thanks for having me, sara. >> quiet day in terms of earnings pretty strong rally off the christmas eve bottom what do you do from here

>> it's interesting. we're up 16% from that bottom. two-thirds of the gap we've made up already from that drop on december 24th. we're back at 16 times earnings. we're 7% away from that peak we hit in september so it's really a question of can earnings push forward? can we move through expectations and be confident and investors feel good about buying stocks here even though we've moved up quite a bit? >> a more dovish fed allow 16 times to go to 17 times? >> i think that's possible i think if we solve the tariff problems with china, we seem to have a feds that accommodative looks as though the government shutdown will somehow be resolved as we hit in september and november and december, there's a point at which investors or machines wanted to sell, we

could hit that point again and it's hard to know when it's going to happen. >> is it good to see big tech bounce back quite strongly start of january even when some of the broader market bounced back, apple dropped back with its earning. big tech is leading the way again. >> exactly. >> you can't really see a market move much higher without the technology stocks participating since if you look at who are the market leaders, where are the largest market capitalize that's really in the tech or the communication service company? amazon, microsoft, apple, netflix. they've all had to participate and they have. of course, they were oversold. those were the stocks that get hit the hardest, including the chip stocks. it's not surprising to us that they have moved back they are not back where they were they've got to push through that 2 hyundai moving average they've all crossed -- most of them have crossed the 50-day moving average

in order to be sort of free and clear to move higher you've got to get above that 2 hyundai. we're not there yet. we're close. >> talking about this upswing in valuation for the overall market where are you get iting at in earnings season? how much do you think earnings growth is going to slow this year >> it's interesting. at the end of the year, i think there's a disbelief in earnings that could be anything close to 8 to 10% for 2019 growth we were talking about -- some people were talking about two or three percent, maybe flat earnings the fourth quarter so far -- i think about 55% of companies have reported, are up about 12%. and now the guidance has been reasonably good. not terrible not great. but i think better than expected if we can hold there and have earnings grow in the 8% range, we can, i would say, feel comfortable with this level of valuation. if we slip back into the low

single digits, of course, i think it makes it very hard to keep the market going higher but i think that if we're in the 8% growth range we can get a multiple 16 1/2 to 17 times this year and i would say 15 1/2 times next year's earnings. >> speaking of the fed, former federal reserve chairman janet yellen, sitting down with our own steve liesman. here what she said about the global market. >> i still expect the most likely outcome is solid growth in 2019. but there are downside risks. >> what risks do you see and how do you assess them >> we are seeing slowing global growth the data from china has been reasonably weak and the european data has also come in weaker than, i think, had been expected so, there are those risks. there are risks stemming from trade policy, from brexit and uncertainties around various political decision making.

>> we're talking, kari, so much more about the international outlook. it's not like anybody here investing in u.s. equities is unaware that things are slowing down german auto manufacturing down is that a bigger risk than you think is priced into u.s. equities at the moment >> it's possible that the u.s. market is overlooking some of the risks overseas the biggest risk, of course, is china. that's what the market is worried about the most not to downplay europe germany is important england with brexit and its problems, the rest of europe, japan. china is really the whale and china seems to be showing more consumer demand than people had expected you saw starbucks with good numbers, nike with good numbers from ooh china and that is helping this market post a little bit concern about international growth.

>> it reflects itself in earnings in the dollar, sort of back on the rise a little bit. >> you have that sort of dichotomy where at times the rest of the world is less investable, meaning people are worried about growth elsewhere, they put money overseas into the u.s. if the rest of the world affects 50% of our sales, of course, you have to worry about all that global demand. >> you're right to bring it up as well, sara. state of the union snapshot on president trump's ten-year, equity is up dollar down 5% since he took off, down 2% since election day. doubt you would have seen as good equity terms if we had seen

the dollar lower do you think that correlation will compare if we see a stronger dollar? >> definitely. you hear from companies about currency and the affect it's going to have. the headwinds. they play that people are forgiving at a certain point, you can't be so forgiving because if it drags on through the year and into next year, you know, you have to reduce your outlook. that will affect the stock prices. >> yeah. part of the reason is president trump really wants the weaker dollar. >> sure. >> and he has made that clear many times. >> let's move on shares of microchip technology finishing higher today after the ceo said as long as there aren't any negative developments between the u.s. and china in terms of trade other semi stocks rallied with nvidia, texas instruments and micron finishing higher. big moves across the board as

you can see. softbank has sold out of nvidia. stock goes up 2% important -- turning point potentially ahead, good sentiment? >> chip stocks have been decimated. look at nvidia it's down 44% after day. so anything that starts a basing process for the chips, nvidia in particular they were down in the, i don't know, 10 to 15% range. for nvidia to go up in that type of environment, they sell a lot to the gaming companies, i thought that was a very nice sign of support. >> you've been really hot on biotech, right >> i used to run a biotech fund for a lot of years we always own -- >> are you still bullish >> yeah. we own a company called bio haven and billion market cap companies and i think if you

could find the kind of company that will have the therapy that doesn't cost 100 to $500,000, that's the way to go the one we own has a migraine drug and it's not going to be very expensive for consumers. >> in terms of the earnings we've got to come, smaller consumer stocks like chipotle, do you think now is a good time to increase your exposure to domestic u.s. consumption? >> i think it has been a good time i think you start right now, you have to be selective about what you're buying because many of these stocks had moved up 25 to 30% over the last, you know, two months, month and a half chipotle is an example of that it's been a very strong stock. and we've been focusing a lot of our portfolio on domestic names that did not have a big effect from weakness overseas to jump on that right now, i think, is a little late. >> earnings. >> sorry.

>> on irobot. >> shares up about 15% not bad back to you. >> thank you, seema. >> we have overweight in health care we are overweight finance but not money central banks.

we have names cme, first republic, schwab as an example tech names, amazon, alphabet, apple. it's a mix, i would say, of large companies that participate in digital platforms and the niche companies that are much less well known, even industrials we like here. >> another name for you here for earnings josh lipton with go pro. josh >> sara, gopro, expectations of .26 cents and $377 million. street had been looking for 374. beats there on the bottom and the top. interesting stat also. gopro saying that gopro.com represented more than 10% of

revenue in q4, growing more than 50% year over year gopro saying in a statement that with this momentum and a continued focus on expense management, we're planning for growth and profitability in 2019 that stock heading into this print was up about 20% year to date we're moving higher here in the after hours. guys, back to you. >> josh, thank you very much meantime, chipotle kate rogers has those. kate >> very strong fourth quarter for chipotle eps adjusted that's compared to estimates of $1.37. revenue at $1.23 billion for the fourth quarter estimates from wall street, 1.19 same store sales, 6.1% street looking for an increase of 4.5%. the company noted 2% transaction growth in the quarter. digital here up 65.6% in the quarter. now accounting for 12.9% of

sales. for the full year, the company said digital group by more than 42% and they also said they achieved 4% full year and opened up 137 new stores and closed or relocated 54 the stock, as you can see, is higher by nearly 6%. >> i'll throw in another big beat restaurant level operating margin, kate, 17%, increase from 15%. what do they do this quarter >> sara, this is all part of brian nichols reimagining and turnaround plan for chipotle they're testing, introducing new menu items second make lines in many of their stores, hoping to have them in all of their stores by the end of 2019. clearly, he's doing things right here and the stock is reacting very well. >> kate rogers, thanks very much let's discuss this further, joining us from stephens inc.

pretty impressive beat across the numbers. >> a strong quarter, thanks for having me. 6.1%, street around 4% strong number there. you mentioned how this has been a strong start of the year that's been wise, anticipation of a stronger top line and higher expenditures and pointing to what you mentioned a minute ago as far as margins being better year over year. a positive surprise in both. >> yeah. i mean, the operating margins was impressive, especially if this is a business that's been investing to try to turn around and get sales up wasn't that something that you were initially concerned about, going into the report? >> yeah, that's true and it's one thing we're continuing to monitor. as we look out to next year and think about sort of what the earnings power of the business is, i think there is reason to be optimistic around the top line they just showed that they are accelerating and 2% transaction growth within the 6% comp was a positive as far as the margins go, getting back to 17% is a good

number remember, this company was at 27% three or four years ago. how far can we take this, i think, is a question and at 46 times earnings, anticipation of that in the stock. so my biggest question is, can we keep growing those margins? the stock is anticipating that happening. we need margins and sales to keep going. >> kari? >> from the restaurant companies we've heard from already, yellen, starbucks or mcdonald's, they've all reported strong earnings the consumer is spending money here and consumers overseas on restaurants, eating out. disposable income. in addition, they've obviously made a lot of progress if you remember a couple of years back, the trouble that this company was in. it's really impressive. >> in terms of the numbers, it all sounded very good until you said 46 times, which does sound expensive. what will you be looking out for on the earnings score?

>> i think there's a lot of optimism around what they'll actually accelerate from here or not. the sales, how we should think about the margins for next year, guidance to earnings, same-store sales for next year. i love for them to talk more about the margins. as i mentioned with that big valuation, we need earnings to keep growing rapidly here to keep up with that. margin talk, i think, will be crucial. >> part of the relief there on the margins is lower food and beverage packaging costs including better avocado prices. >> always important. >> will, thank you very much for joining us. >> thank you. >> will slabaugh there kari, thank you for joining us. video games stock getting crushed after disappointing earnings we'll discuss whether we reached peak video games. tammy baldwin introduce aid bill to reign in stock buyback lot more hopping on atth band

wagon. she will discuss a plan to limit share repurchases.

fire eye earnings are out. aditi roy has those for us.

>> hi, wilf. fireeye down 4.5%. let's start with the top line, revenues for @$218 million, beating estimates of $216 million. eps was 6 cents versus five cents. guidance seems to be drooiving these shares below estimates of $2.112 million driving to be $2.8 million adjusted lots between two to four cents versus a profit of one cent for the q1 guidance that's what seems to be driving shares another important metric that investors are looking for is billings, talking about customers. that came in at 265 million. that's an increase of 10% for the fourth quarter, ending in --

for the forget quarter shares are down right now 5.5% back to you. >> adeti, thank you soch for that point out as well that fireeye was up 20% or so year to date coming into this. >> very strong year overall. video games stocks getting hit hard today electronic arts and take two interactive taking big hits in earnings take two ceo addressing all of this on "squawk on the street" this morning. >> fortnight was huge last year. that's great we admire the work done by others we don't always get all the hits grand theft ougauto on line had another profitable year and as long as we deliver quality, people show up that's what we've seen in this quarter. that's what we're projecting in the year. >> by the way, his whole point there was that they did not miss on earnings, that they actually

saw a big beat on the new release and raised guidance he was a little con founded by the reaction. >> let's discuss, in fact, that reaction brandon ross joins us. very good afternoon. >> great to be here on the day the sky is falling for the enjoyed game publishers. >> what did you do >> after a decent kind of period of growth. let's talk about fortnite first. >> sure. it certainly has expanded the universe of players and expanded the tam for all the video game publishers that create great content. but in the meantime, it has also been competitive to all the publishers that we follow, which you might be seeing a little bit in the earnings reports. >> zelnick was saying it's a success but our big hit actually had a huge success

he was like really puzzled by the reaction. >> look, we completely agree with strauss we thought take two had a great year, that investor reaction was way too much today and the bottom line is, if you make great content in this connected world, you're going to be able to monetize that and fortnite is proving that so, too, did take two with redemption, which we expect to be monetizing at a high level for years to come. >> this, you say, say buying opportunity for take two what's your price target >> our price target on take two is $142. so quite a bit of upside from here after today's sell-off. but, really, nothing in our core thesis about take two has changed today. >> 23 million units is going to continue to monetize in game for

several years to come. >> ea lowered its guidance and did not see success with its release. >> ea is a different story the bar for execution has gotten a lot higher in the video game industry, especially as you need to continue to keep players engaged and monetize, and there's competitors like fortnite and ea is simply not executed well over the last several months, over a year. >> how do sports games rate these days i only ever played sports games when i was kid if i played anything at all. today it seem everything is about killing. >> nintendo? >> unit sales for nba 2k, the main basketball game and fifa and madden, they've been steady to up over the last several years. >> okay. that's good. kids aren't just wanting to shoot each other on the games anyway. >> it's not just the shooters. >> brandon, thanks. >> i played a lot of --

>> did you >> nintendo, zelda, duck hunt. >> duck hunt >> they've gotten more complicated. >> as you can all guess mine were soccer, rugby, cricket. >> rugby video game? >> fantastic. >> brandon, thank you so much for joining us. during last night's state of the union address, president trump blasted democrats for adopting socialist policies. listen. >> here in the united states, we are alarmed by the new calls to adopt socialism in our country. >> up next, we'll debate whether trump is correct that democrats are moving too far to the left. >> and later we'll discuss the state of the media industry when we're joined by eworti"n yk mes" executive editor jil abrahamson in a couple of minutes it's about technology transforming every sector. ♪ at pgim, our bottom-up approach uses a technology lens

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stay free. >> joining us to discuss, austin goolsby, and fiscal and economic policy analyst from the heritage foundation thank you both for joining us. austin, feels like your party is split between some of these socialist economic ideas and the more mainstream. which one is going to win? >> i would characterize what president trump said a little differently much if you lk at who is out of touch and doing something radical, the president's own policies fall under that category, passing a $2 trillion for high-income people and corporations, the most unpopular tax cut in the

history of american polling and now they're trying to portray giving people the option to take part in medicare as a socialist takeover of america. 70% of the country agrees with that, including 52% of republicans. >> senator bernie sanders considers himself a socialist. >> does that matter is this. >> a lot of them say they're socialists it's a populist idea right now would you disagree, austan >> bernie sanders, two people who call themselves socialists the medicare choice for all, as i say, is not a radical proposal it's supported by 70% of the country, including the majority of republicans as i say, the more radical, out of step policy making is coming from the white house, not coming from some wing of the democratic party. >> ramina, woo east of ge've got

that bernie sanders put out saying we've got to think big, not small. canada guarantees free health care for all, finland provides free tuition why can't we do the same >> offerings of free goodies that the government is going to provide. in some ways i thought it was sad that the president felt the need to address that the united states was not going to be a socialist country but i'm so glad that he did, because we clearly seeing those tensions and the people that are calling for socialism, i wish they would read some history because if they don't, we are bound to repeat those mistakes from the past socialism, everywhere it has been tried, has failed and all it has delivered is death and destruction. just look at venezuela look at cuba look at eastern germany.

>> yeah, but there's a big difference, r. mina, between a dictatorship and hard-core communism and a political balance that is conservi conservatism on one side and both sides argue for a balance pold that is essentially what all of europe is. anyway, today rather than back after the second world war either way, you commended what the president said last night. he linked, though, socialism and if it arrived with then the removal of liberty in the united states that is a false link, no america would always be a democracy. >> no, no. >> even if it's elected leaders leaned further left than they did right sh. >> i don't think it's a false statement at all we heard austan talking about medicare for all what he is really talking about is nationalizing health care, mon op lie

monopolizing the health care in the united states. >> are the people in the united kingdom free >> to be clear that wasn't what i advocated. >> so in part, they are but not when it comes to health care. >> are they free >> yes, and the people of great br britain are free in many ways but not when it comes to health care in fact, what we're seeing in nationalized health care system is that the government rations care, and that is controlled management of the economy. and health care makes up 16% of the economy. that's a huge chunk. >> if you oppose medicare, you can opposemedicare. >> moves in other areas. >> austan, go ahead. >> if you oppose medicare, that's your right. it's supported by the massive majority of the american people. and when he was running for president, was supported by president trump, who promised never to cut medicare or medicaid that he said he was the only republican candidate who would protect those programs i think the thing here is the

spin -- look, i'm an economics professor. i'm not a socialist. i don't advocate socialism i think socialism doesn't work but rebutting and returning to levels of taxation that are completely conventional by historic standards in the united states, repealing something like a $2 trillion giveaway to high-income people and big corporations which, as i pointed out, is the most unpopular tax cut in the history of american polling, that doesn't make you a socialist. it's crazy the reason the president is saying that and trying to lump in anybody who wants to return the dividend tax to what it was before, if it wants to lump them in the same category as venezuela is because he's afraid he knows perfectly well that if you put to the american people what he has actually done, it's deeply unpopular it's why he lost overwhelmingly in the midterm elections and

it's why they're scrambling, trying to figure out something more popular now. >> it's a good debate, guys. we're out of time. thank you both for joining us. political season is just heating up. >> thank you, sara. >> austan goolsbee and romina boccia. sue herera has our news update. >> anti-abortion legislation that would require mandatory medical care for late-term abortions where the fetus is alive outside the mother's womb. >> we've seen now in states across the country the introduction of legislation that would enable the killing of babies this is not about abortion this is about killing babies after they are born. and it is the face of pure evil. >> the past five years have been the hottest in modern records according to government scientists it is the latest in a string of warning warnings over the planet of

climate change the record was set in 2016 the culprit? you guessed it, greenhouse gas emissions from human activities, according to that study. >> the super bowl champion new england patriots hiring greg schiano as their defensive coordinator, row placing flores who left to become the dolphins' head coach he made his mark as the head coach of rutgers from 2001 all the way up to 2011 you are up-to-date that's the news update, guys back downtown to you. >> sue, thank you very much for that and now senators chuck schumer and bernie sanders are imposing stock buyback limits but our next guest introduced that a year ago, senator tammy baldwin says why that would be good for the economy straight ahead ♪ ♪ let's go from plans...

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and accessoriesphones for your mobile phone. like this device to increase volume on your cell phone. - ( phone ringing ) - get details on this state program call or visit >> corporate stock buybacks peaked op-ed chuck schumer and bernie sanders called for curbing stock

buybacks calling thef them self indulgents tommy baldwin introduced a bill back in march 2018, co-sponsored by senator sanders and others, intended to curb corporate buybacks good to see you, senator just bring us up to speed on how your bill differs from what senator schumer and sanders were proposing, to raise wages and make investments in their businesses to do buybacks. what does yours do >> frankly, my bill would end buybacks by getting rid of the rule in the s.e.c. that allows them back in '81, there were very few buybacks 2% of corporate profits were used on buybacks 1982 that rule changed to give

safe harbor from insider trading accusations, and we have seen stock buybacks, combined with dividends, payouts now take about 91% of corporate profits. that's what the figure was in the s&p last year. that is an outrageous change in behavior that has all sorts of impacts, impacts on workers, on communities, when all the profits are going into stock buybacks or dividends, we see massive change in behavior that hurts workers. now, you combine it -- go ahead. >> so, senator baldwin, the driving force here is because workers are being hurt why not go straight to the source of that issue and legislate for better workers' rights or higher wages or whatever it is that you think should happen? >> well, i'm for that, too, but if you don't stop the stock

buybacks, you're going to continue to see this trend that we've seen ever since the rule changed back in 1982 you know, i think the other provision of the bill that you need to note is that it empowers workers by allowing them to elect 30% of the corporate board members, and then you will have corporate board discussions that don't just talk about focus on shareholders and increasing the price of the stock you'll talk about all the responsibilities that that corporation has to workers, to communities, to investing in the long run we have seen such a change from a few decades ago where corporate profits, at least in part, were used to make sure that the business had a plan to invest in r & d and keep up-to-date and retrain workers with new skills and give them better wages and invest in the community. >> senator, shouldn't companies pay their workers more and

invest in capital expenditures because they think that is a good investment and not because the government is telling them to do so and where to spend their money? otherwise, aren't we just going to get corporate waste >> i think what you see in board decision making is too much self interest, board of directors members, ceos, top executives are compensated, in part, through the value of their stock and with stock and so you see their fiduciary duty only focused on the stock and not on the enterprise to begin with and i think that's gotten very, very lopsided, especially since the green light went on in the early 1980s for these stock buybacks to go on, unchecked. >> so, presumably, senator, you are just as much against dividends as you are against buybacks >> well, i don't think there's -- this does not deal

with dividend payouts. and i think that their impact is different. and we didn't see a runaway change in corporate behavior on dividend payouts but what you have seen these incredible shifts from 2% of profits to 91% when combined with dividends. >> okay. senator, afraid we're out of time thank you so much for joining us. >> thank you. >> we'll continue this one senator tammy baldwin, thank you. >> coming up why being a better citizen could pay dividends to facebook employees, next

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first up on brexit, continues to get ugly. euro european president blasted those who voted for brexit without having a plan in place first. >> i've been wondering what the special place in hell looks like for those who promoted brexit without even a sketch of a plan how to carry it safely. >> the tone there took a further turn south when the eu parliament's brexit coordinator responded saying i doubt lucifer

would welcome them as after what they did to britain, they would even manage to divide hell one more glimmer of hope on the tone a little bit of humor in his response, he said i believe in heaven and i've never seen hell, apart from the time i did my job here, which is currently hell. nonetheless, whatever your view of any of these topics and whatever side you're on, it's not very good diplomacy. >> governing by twitter fight. as they get ready to negotiate one of the most consequential things for the uk. >> i don't think this is the proper way -- >> the brexiteers did not offer a plan as to how it was going to look. >> truth behind that but i don't think fair summation in terms of this. >> special place in hell. >> special place in hell. >> that phrase was used, if you remember, by peter navarro after

listening to justin trudoe, the canadian prime minister, pushing back against president trump's trade talk not going the right direction there. my story facebook changing its performance review system. the company announcing it has revamped the criteria for evaluating employees and will base bonuses in part on how well they make, quote, progress on the major social issues facing the internet and the company good luck on figuring out what that means. >> and how you'd monitor it, exactly. but listen, i don't know if this is just an announcement that they're making to offset some of the other bad news that they have had, but it seems like an odd thing to force on your employees and a very difficult thing to monitor as well. >> but clearly indicative of the direction facebook banwants to k itself in. it's not growth at all costs anymore, it's we're trying to make a change and influence the social behaviors.

>> it's back to that old messaging mark zuckerberg used to claim, oh, i want to connect the world, nothing about making money. sure. up next we'll talk about the future of the newspaper business with jill abrams, e rmonthfoer editor of "the new york times. e but which ones target your goals? it's not about quantity. it's about quality. no trendy stuff. i want etfs backed by research. is it built for the long-term? my reputation depends on it. flexshares etfs are designed and managed around investor objectives. so you can advise with confidence. before investing, consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully. you should be mad they gave this guy a promotion. you should be mad at forced camaraderie. and you should be mad at tech that makes things worse. but you're not mad, because you have e*trade,

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shares of "the new york times" company surging today on earnings wspeindiscuss the state of the nepar dustry next on "closing bell.

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let's get a check on the movers and headlines after hours. chipotle getting a big boost after earnings and revenue came in above estimates comp store sales were up 16% that meet expectations. >> match group going higher. >> and sonos sinking after warning about q2 revenue we'll speak to the ceo tomorrow on "squawk on the street." shares of "the new york times" are soaring today after

beating earnings expectations but the paper's revenue growth is the exception not the rule for most newspaper companies while "the times" has added staff, employment in newsrooms across the country has declined dramatically as advertising has taken a hit and google and facebook are on the top of the advertising market. >> joining us is jill abramson, form "new york times" executive editor welcome, jill. nice to see you. >> thank you so much. >> iguess we should start with the good quarter that "the new york times" is having. how much of this is a trump boost, the surge in business >> it is a huge factor i don't think it's the only one. but the trump bump is famous now and has, you know, fattened the circulation of "the times" by huge amounts i think they went from like 1.5 million to 4 million plus

digital subscriptions since the election so he's been ratings gold for cable tv and, you know, great for business at certain newspapers, but not all. >> to what extent is it also, jill, that the papers like "the new york times" have also now got their digital strategy right, not in any way downplaying the quality of the journalism that's always existed there and still does. >> right. >> because this has come at the same point as the likes of buzzfeed and huffington post have had to make cuts. >> right. >> so is it now that the old guys have played catchup and established a good digital offering >> to some degree, yes when i was still at "the times" buzzfeed and vice were these digital upstarts and we thought they had figured it all out. they were getting fat on digital ads and hiring left and right.

now, you know, the parts are reversed >> bottom line, how would you say overall, given all of your investigative work in this book, google and facebook and their rise have changed the business of news? >> well, they have change ed d t both in helping to change vice and buzzfeed buzzfeed was built on facebook and social sharing and information going viral, and vice on youtube. so they helped birth these companies. but now they're eating up like almost all of the digital advertising, so they're kind of killing off their babies in some sense. >> do you welcome seeing things like jeff bezos buying a newspaper, or is that a step too far? >> no, i think he's been a really good steward of "the washington post. i think it's great that he p bought it personally, it isn't part of amazon although the president insists

on calling it the amazon washington post. but that is not to say that every billionaire is going to be a good owner of a news organization. >> we need to have you back. we need a lot more time on this one, jill. >> thank you. >> the show is over but the book is "merchants of truth." jill abramson, thank you very much. >> i'm afraid that does it for "closing bell" today thanks for watching. >> "fast money" begins right now. live from the nasdaq market site overlooking new york city's times square, i'm melissa lee. tonight on "fast" check out shares of chipotle heating up after hours as the stock has been on a tear, but do the traders believe in this turn-around? plus, is it game over for the video stocks two of the biggest names getting absolutely crushed but one trader says they're setting up for a perfect reset. but we start with the semi sizzle, the group looking hot today. they have been the hottest area of techs this year check out some of these double-digit moves