questions about the long-term health here. >> and years to go in this debate like robert frost. >> we'll be talking about it for a lopg time. before we go, a quick programming note leslie picker will sit down with saved solomon at 3:15 for an exclusive interview on closing bell stay tuned for that and "power lunch" with tyler and melissa. i'll join them in a minute it begins right now. >> see you shortly, kelly. new at 2:00, confusion in washington but optimism on wall street. lt are the bulls getting ahead of themselves investing in the next tesla why amazon may shifting gears and this one stock is up 300% in 20 is the. how much higher it may go. "power lunch" starts right now >> welcome to "power lunch." stocks are up.

but they are well off their highs. the dow was up 2020 points, now about 90 transports are on the move, but a group out of correction territory. now a number of factors are fuelling the trading action today. bullish head loins on talks, one of them, kayla is all over that one, but this d.c. with another chaotic scram to believe prea government shutdown and tail end of earnings. dominic chu with the hit, runs and errors >> second day in a row, it's opt michigan on trade talks with china. while we don't know how the talks are going or why the president is so optimistic, none the less today in public remarks again, he says he feels the talks are going well >> we have a big team of peel, very talented people over in china right now. negotiating on the china deal. it's going along very well

we'll see what happen, but i think it's going along very well they're showing us tremendous respect and something which a lot of countries didn't used to show the united states, they're showing us respect now >> that was the president in the oval office with the president of colombia. well it is going to fall to that negotiating team and the president says the very talented, to secure concessions from china in a matter of weeks that have alluded u.s. administrations for decades and while the president has said that march 1st deadline may slip a bit if talks are going well, there's still the expectation that something will break through in the next month or so. as one sign of respect from china, it is expected that chinese president xi will meet with the u.s. gauche yiting team in beijing while u.s. officials haven't confirmed that that will happen or exactly the date or time sources who are briefed on these talks say that's customary because president trump received china's number two just a few weeks ago. we await some sort of news out of these talks from the team in

beijing at the end of the week, but for now, it's that optimism we're going off of back to you. >> with the dow up 92. thank you. president trump has not yet committed to sign that spending deal that would avoid the government shutdown. >> the president said he doesn't want to see another shutdown but he also said that he hasn't seen the bill yet and when he does bet it sh, he's going to look for land mines. now i'm told this legislation could run 700 pages or more. we are expecting it to drop after 4:00 p.m. today, but house is not going to vote on this until tomorrow at 6:30 p.m. at the earliest and that's because lawmakers are looking to attend the funerals of two long serving congressmen. leadership wants to give them plenty of time to get to those events and get back to d.c. for those votes. after that, the senate would go. possible y in the wee hours of thursday night or into friday, but in either case, it looks like congress is on track to get

this to the president's desk before the midnight deadline on friday then guys, the president will have to make his final decision >> thank you very much and earnings season is entering the home stretch but still some big names left to report dominic has been looking at the results so far >> what we have now is the final turn has been made, we've got about 71% of companies in the s&p 500 that have already reported their results 357 reports. earnings beats have been good although lower than some of the recent trends. 71% have beaten analysts investments on the revenue side, 62%. that's according to data from refintive. if your looking at the growth rates we're referring to, out of those report, we are seeing a number of them show some earning growth in every single report comes in as expected for the rest of the subpoeneason, we'lle growth around 17% with revenues

growing about 6% so there you go with one quarter left. here's how things stand. back to you. >> thank you, dom. pemeantime, jim cramer weighingn on this market making his case for staying with stocks. he has five big reasons why. first of all, the fed. cramer saying they are backing down from the hawkish stance on rate hikes which has paved the way for stocks second, president trump. saying the president trump quote fundamentally wants to stock market to go higher. also pointing to low ip flags, strong corporate balance sheets, attractive valuations to round things out >> despite that case, our next guest has been bearish for month, but not all his calls have been playing out. he said the post christmas bounce ended on january 22nd, but dow s&p and nasdaq have all posted gains since then. up about 3%. sticking with his call, he says investors should expect negative returns in 2019. so let's bring him in. he's there the founder, ceo and chief

investment officer of morgan creek capital management great to have you with us. the short-term call didn't pan out, but you're sticking to your guns and saying that cramer is wrong. so we sort of got a debate going on why is he wrong in your view why should we be under pressure through 2020 >> where should i start? he say stocks are cheap. on no measure of valuation are stocks cheap there's nothing close. we're 84% on average overvalue he's saying inflation going down is good. that's a sign of economic weakness, not strength he said the feds on the sidelines, when we were together three months ago, i was sitting in this same dhar and your jaw dropped a little bit when i said over the next three years, markets would go down b about 30 to 40% nothing has changed for the better expect maybe just maybe the fed's not going to raise rates as quickly so everything else has fallen off a cliff.

earnings estimates collapseded particularly in the tech sector. housing. the only thing people cling to is this idea that job growth was high job growth was high because of the birth death ratio. 75% of those numbers are kind of fudged because of where we are in the economic cycle. so i'd love to do that, maybe on tv sometime. zpl we'll see if jim is up for that in terms of the argument that you don't want to fight the fed. the l central banks around the world that we've seen are number of central banks really nflippig their stance to easing monetary policy australia is one, india is another. when you look at the global flood of liquidity, they're doing that in face of weaker economic data. you can say a powerful force when it comes to equities. you don't want to fight central banks in general isn't that the rule of thumb >> it's a really important point. your analysis is spot on, as

always it's really interesting. if you go back to 2016, you remember the first six weeks of 2016 markets were thin free fal everybody was panicking then magically on february 10th,ped there was this massive we found out later, injection by the pboc of about a trillion dollars of liquidity over coming quarters that really saved the world from that recession pmis were sub 50 growth was really moderating around the world this time, ten surprises, i think they're going to try to do the same thing we saw it in december. the pboc injected 84 billion not a trillion but it's a big number and a lot of other central banks have announced they're starting to get easier money supply did tick up you're correct in the first three weeks of january, but the cup board is bear there are no bones left. so i think that's about it they tried and we're going to

see how the rest of the year plays out. my guess is money supply will roll over. liquidity will ebb and when it ebbs, stocks go down >> is the rally we've seen nothing more than a bear market rally? and what will cause it to peter out? >> yeah, so absolutely we were together on christmas eve and we talked about this it's like a rubber ball bouncing down a set of stairs and melissa asked the question, do you think that it's going to stop going down here i said yeah, i think they'll engineer a bounce, clearly, they did. we got a lot of buying on the 26th and so this bounce, but rubber ball bouncing down a set of stairs, each bounce is higher. just kinetic energy. go back to 2001. we had a similar bounce. returned to normal everything was supposed to be fine in tech and by the end of the year, we were down double digits we'll see how it plays out i see lots of negative surprises. economic, earnings, revenue.

corporate layoff surprises i think there's a lot of negative that's going to come out. >> so what should i do with my money? go to cash or raise cash >> cash is king. always king. cash beat 95% of assets last year and it's a good place to be we like some other places better ml prks. they've rallied nicely actually rallied more. i like the cars. china, argentina, russia, brazil l and south korea. those five countries have way outpace d the u.s. since decembe 24th and this year year to date. so there are lots of cheap places to put your capital don't have to put anytime the u. u.s. >> thank you for your time morgan creek capital news a i lert on apple josh lipton has the details. >> tyler, cnbc's alan scherr man is giving us new details about apple's tv service he says apple is targets an april or early may rollout for this new video service

interesting who sherman says is going to be participating. lion's gate, star, cbs and viacom but don't expect netflix to be part and hbo's participation is also in doubt of course investors paying close attention to the fast er growing higher margin services business. that was not the only headline on apple today we also want to bring you up to speed on another dramatic headline here. the u.s. government has now charged a former apple executive with insider trading he was corporate secretary, director of corporate law. allegedly traded on material, nonpublic information on apple's earnings between 2011 and 2016 according to the government when he realized profits of $227,000 avoided losses of 377. the potential penalty here, 20 years in prison and a $5 million fine apple did not respond to requests for r comments, guys.

>> thank you very much we also want to ask you about this big investment from google. what are they planning >> so tyler, that's true google does intend to keep growing the company. it's going to spend $13 billion this year opening new data centers. that's going to be in nevada, ohio, texas and nebraska doubling in virginia it's been spending a lot it's spending doubled to 25 billion as it built on these data centers as well as its core search business the ceo did say she expects that cap ex growth rate to moderate in 2019. >> thank you josh lipton. coming up, gm and amazon are invest ng an electric car start up will it make a real threat to tesla? plus, is b mrmw benefitting fro the boom in suv ds let's go to phil lebeau. >> phil. >> luxury suvs are red hot now and that is force iing bmw to sy

let's boost production at our seoul u.s. plant how much we'll talk about that when "power lunch" returns. so with xfinity mobile i can customize each line

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explain. hi, phil >> hi, melissa the x7 goes on sale next month and they're expecting strong demand for this vehicle. and that's prompting bmw to increase production at the plant where this suv is built. that's in spartanburg, south carolina now last year, they built about 365,000 vehicles down there. this year, they expect near record production. north of 400,000 vehicles. the majority are going to be suvs sold here in the united states or in canada. but there are also a good number of those vehicles well over 50,000, that will be exported to china. which is is primary, the number one destination for suvs built by bmw in south carolina then exported but in the u.s., the luxury suv market remains red hot you look at mercedes, the lexus models, really all of the luxury name plays realize people want

space and they're willing to pay for it and that's why you see luxury suvs sales in the u.s. continuing to climb higher expect it to top more than 1.5 million by 2020. take a look at shares of bmw keep in mind this is a company that while it's important that they ramp up this production of suvs, they're also focused ond what's going op with the talk of potential tariffs and increasing of costs for vehicles imported from europe. the trump administration looking at that. those are the two things that are driving investor sentiment if you will in shares of bmw >> phil, every time it looks like that bmw behind you is going to nail you. >> we're worried about you >> i'm fine. i'm fine no no need to worry >> watch it. here it comes. here it comes. >> phil, let me just ask you >> just skirts around. >> these vehicle, because they are american assembled, they do not have to pay tariffs on them?

>> correct >> doesn't the u.s. content and components have a lot to do with that i assume? >> well, any vehicle built in the united states. final assembly here, you're not going to have a tariff on those vehicles now there's questions in terms of content that is imported, whether it's from asia, whether it's from europe that is at the heart of some of the trade negotiations, but the bulk of the content within u.s.-made vehicles comes from suppliers in the united states not only for domestic automaker, but foreign as well. >> phil k thank you so much. great stuff. sticking with autos, gm and amazon are reportedly in separate talks to invest in a rival to tesla the deal could value the company somewhere between 1 and $2 billion. for me, let's bring in michelle krebs and jessica khalcaldwell, executive director at industry analysis at edmunds. michelle, how important a company is rivian with its founder, who has been called the

version of elon musk you'd want your daughter to marry >> that's a good description it's really gotten a lot of attention. they showed some concept vehicles, a truck at the l.a. auto show and has just made a lot of noise lately. and this really amplifies that there's rumors that gm and amazon are investing that's great for rivian and really intriguing. >> jessica, the importance seems to be on the pick up truck they want to be first to market with an electric pick up truck tesla has had a lot of excitement around its product as well why is there such an interest in that space >> well, ipg you look at pick up trucks and they've come so much in terms of price. they started off as a basic mode of transportation and last month, they trans acted less than $50 thourk. so i think companies are think there could be margins

we've seen electric vehicles not take off on the small vehicle side, so maybe the solution is something bigger, something people will pay more for. >> this shows that gmm is concerned. it wants to get out ahead of any cor competition that might come from tesla. this is them saying hey, we're going to be out there. we're going to have a product of our own. rivian is aiming to launch this pick up in 2020. so how should we think about that >> no i think gm angle is a little less certain. i think the amazon angle is really interesting because you know, electric vehicles just have not taken off they're still a tiny part of the market there haven't been any trucks or sport utility vehicles and those are the most important vehicles as phil mentioned. and we know that amazon wants to reinvent its sldelivery system. to commercialize electric vehicles and use them for amazon

i find the more interesting part of it. >> amazon doesn't use pick up trucks why wouldn't they be more interested in electrifying or investing in an electric van or small truck as opposed to a pick um truck which has an exposed bed? >> if you think about the way they're doing this, it's created this skate board kind of platform they could put any kind of body type on it so it could be a van a sport utility vehicle. they've talk ed about that. so it's, it has a lot more flexibility in terms of body style. >> what makes us believe they're going to be really ready and able to produce these cars on the timeline they have projegt >> well i think a big question because it's something that's obviously plagued tesla. a question in terms of ford hybrids, eds, when are those coming out so far, their products have shown a lot of promise it seems like they're coming

closer to market we don't know if these companies are really going to f make their targets. that is not really certain but we know the more times these larger companies like amazon, like general motors that are showing interest in these companies indicates they are probably further along in the process. zpl >> apparently, amazon separately in talks, will the future of rivian look different depending on who owns it >> i think when you have general motors and amazon interested in becoming stake holders looks different in terms of where they can go and access to consumers they'll have access to so many more things they do right now as an independent xhaen >> sure and these are just investments. the company growing fast thank you both for joining us today. michelle and jessica >> and coming up, two hot stocks

for you. the first one is cbre, one of the biggest commercial real estate firms in the world. that stock up 23% this year. about six weeks of time. we'll talk to the company's ceo and the second one is our mystery chart. that stock has quadrupled in one year n e llin those shares continue find out next on "power lunch.

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welcome back i'm mike santoli time for trading nation. twilio tumbling. its shares are up 21% just this yee and wait for it. up whopping 309% over the past 12 months. is this the pique? so bill, what is this? a 6% pullback after a 300% gain. is that a dip worth buying >> well, don't simply chase a stock because of fomo. i'd rather miss a move than chase something not in my wheel house. twilio is strong and that breakout level is going to be supported above the trend line still though, i wouldn't chase this

you want to look at the broader market as well and the tech heavy nasdaq at the 200 day moving average it's above, but i'd wait for a little bit of a pullback coming in you'll bet a retracement, 50%. find something back into there 85 or 90 that's where you're going to find value in the stock rather than just chasing it it could stay good for a while >> yeah. obviously, a lot of room between the stock and those tread lines you mentioned. stacy, how is the positioning around this stock right now in terms of either people chasing it or looking to take over a profit >> ipg base e think today's mov is a knee jerk reaction, maybe showing a slower integration of this sudden acquisition. when we step back and look at the option, which their the best guess of where the stock is going in the future. that remains bullish so while the stock may be pulling back today as knee jerk reaction and some profit taking,

i'd make an argument that the sentiment remains bullish. >> all right $14 billion market cap company kind of out of nowhere stacey, bill, thank you very much for your time today for more trading nation, head the our website or follow us on twitter. melissa, back over to you. >> next, the pulse of the economy from the ceo of one of the biggest commercial real estate firms plus, a closer look at cvss grand plan for growth and we'll get you ready. all that and more coming up on "power lunch."

welcome back here's your cnbc news update at this hour. the u.s. indicting former u.s. air force officer monica whit for spying for iran. she's been charged with conspireing to provide u.s.

defense information to tehran. she defected the iran in 2013. she is believed to be b there now. patrick shanahan arrive ng brussels for a tw-day nato meeting. he participating in a group photo. later, nato's chief said ta alliance the studying a range of options to counter russia's alleged missile treaty vigs violations >> nato is assessing the consequences praech breach of the treaty i will not preempt the outcome of this process, but any steps we take will be defensive, measured and coordinated and we do not intend to deploy new land based nuclear missiles in europe >> later this year, some new additions to the famous barbie line mattel plans to debut u a ba barbiie with a wheelchair and they're adding dolls with

braided hair texture and tall to petite to curvy. barbie was a best-selling this christmas. melissa, back to you >> all right, thank you. 90 minutes until the closing bell rings on wall street. let's get a check of the markets. well off the session highs we have gains, the dow is up 110 points s&p up by almost ten b about a third of a percent and the nasdaq is up u by a third of percent as well or 23 points let's get to sima for more >> hey, melissa, that's right. with today's gains, the dow is now up 14% from the december 24th lows. s&p and nasdaq up about 14 to 17%. all major indices out of correction territory and take a look at the outperformance in fang related stocks led by netflix now up 45% from its low. facebook up 32%. so the comeback has been significant. three things the market wants to

see, meaningful progress out of the u high level trade meetings taking place in beijing tomorrow and friday a number of retailers getting set to report next week and the s&p 500 to stay above its 200-day moving average a level it broke yesterday now not all stocks are participating in today's rally ralph lauren, tyson foods and trip adviser moving to the downsidow downside of 6% back the you >> thank you crude is also rallying today oil market is closing up dom has more >> so oil prices higher for the second straight day. wti $53.87, brent $63.66 now the gains come despite a tug of war with regard to both data and headlines on the one hand, you've got private sector data out yesterday showing an unexpected draw down then you've got official u.s. government weekly oil inventory today this showed a bigger than expected build in supplies

then there's the international energy agency's report indica indicatesing that for the rest of the year, oil production is expected to outpace demand growth and now baker hughes report that's out friday afternoon. back to you. >> thank you very much our next guest has a good pulse on not only the commercial real estate market, but the overall economy around the world shares of cvre group rngs rising today on a strong earnings and revenue bait the stock is also up more than 20%. just this year so far. here now for an exclusive is bob, the president and ceo of cbre group good to have you with us >> good to be here, tyler. thank you. >> i know on a couple of things i'd like to start first with, the growth in revenue and it was significant in the fourth quarter. 14% overall. fee revenue up 16% and the

revenue grew in every single region you do business in. is it pricing power, staunch demand, what >> the economy around the world performed in a solid way last year in the fourth quarter it was particularly good in certain ways for commercial real estate and our company took share in all three regions of the world and in all of our product lines, so all those things together contributed to those results. >> so the global economy was good in the fourth quarter of last year. what do you see right now happening around the world in the markets where you do business and what do you forecast for the rest of 2019 as good a year, a better year a little bit down? what >> slightly less positive year, but still a healthy year in the global economy and we expegt, we said this on our earnings call this morning, we expect to see growth across our business lines around the world this year. certainly significant, but also in our asset training business

and our leasing business, we expect growth in all of them this year and growth around the world. >> how are you viewing brexit and what have you seen so far in terms of traffic out of britain? maybe to what markets? >> we've been dealing with brexit now for two and a half years and the first few month, it was pretty tough on our sector in the fourth quarter of last year, there was a little downward pressure on real estate asset trade, but leasing was up nicely, we continue to watch it. continue to think it's a bit of an issue particularly on the trading side of the business but if companies decide that they have to move some of their people to continental europe from the u.k. or london, that will be good for business because we'll help those companies move we believe that london's going to on an enduring basis going to be a very good and important commercial real estate market. >> for four or five, maybe six

years now, people have been saying that the commercial real estate segment has to slow down and it hasn't. it just keeps going and some of the valuations continue to rise. even with how the interest rate cycle has played out are you surprised at how durable the cycle has been >> you know k it's been a very good cycle and a lopg cycle. we just completed our ninth consecutive year of double digit earnings per share growth. but there are some very different dynamics at play in this cycle than we've seen historically the outsourcing of commercial real estate by companies and other occupiers to providers like ourselves is a very big secular trend. this use of office space to attract retain, motivate people has caused leasing to be very k active there's lot of capital that wants to move into commercial real estate. debt capital eck quity capital. so we really haven't been surprised. we've been saying this for some time that even though the sale of

commercial real estate assets piqued in 2015, we've had double digit growth every year since then and that's what we expect >> you talk about occupiers and one thing that's different over the past half decade is there's a new category of occupy and that would be the companies like we work or the ones involved in flexible space arrangements. how has that changed your business is it a net president obaositiva net negative what >> there's two dynamics that are driving this coworking flexible space circumstance we're seeing. one is the occupiers, users of space corporation, really want flex flexibility, in the way the space is used and in their lease term the other is they want a greater experience better experience for their people that's a very important driver

of our business. we manage office space around the world with 9 million people in it. we do a huge amount of work for them around office space experience and we do a an awful lot of leasing work with them in traditional space, but increasing increasingly, we're helping them lease space in these coworking facilities we've got our own entry calls hanu, which we're very, very enthused about >> thank you always good to see you >> thanks so much. >> coming up, a big day for social media stocks. why twitter and snap are rising and what could be the drugstore of the future. bertha coombs is live in spring, texas. bertha >> that's right. cvs is putting its strategy behind the aetna merger to the test they want to be literally your health hub where you come and you can find projects to help you manage your weight, get

better sleep then at the back of the store, a lot more real estate where you get a lot more services to try to manage chronic conditions we'll give you a look and tour coming up on "power lunch. imagine traveling hassle-free with your golf clubs. now you can, with shipsticks.com! no more lugging your clubs through the airport or risk having your clubs lost or damaged by the airlines. sending your own clubs ahead with shipsticks.com makes it fast & easy to get to your golf destination. with just a few clicks or a phone call we'll pick up and deliver your clubs on-time, guaranteed, for as low as $39.99. shipsticks.com saves you time and money.

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get e*trade and start trading today. shares of twitter rallied today. and jack dorsey making a number of headlines hi, julia. >> hi, tyler twitter shares are up about 3% they were up more than 44-% today bolstered by btig raising its price target yesterday and on jack dorsey's nterview with cara swisher on twitter yesterday. though that conversation and tweets drew criticism for how

hard it was to follow the conversation he said submitting -- he said in that interview he's committed to improving twitter's security now a headline about morgan stanley's 5.6% stake in twitter seemed to bump the stock higher, but that isn't new it was first reported in september. now snap is up today that stock is up about 3%. googenheim raised its target, now up about 4%. raised on monday snap also launched a partnership with lego this week. in app shopping with a reality store. this points to potential for more retail revenue for snap >> thank you now cvs is showing off its new health hub store a one stop shop for your health care needs and bertha coombs is live in spring, texas, to show us around.

>> they've been going for about a month and they're giving up more real estate for health services back here, they have a bigger minute clinic. if you come in and pick up a prescription for hyper tension, they might ask you what are you doing about your diet? they have a dietitian on staff to help you figure out how to eat better also a respiratory therapist on staff to help people who might have sleep apnea they can get you diagnosed, get you a prescription and they have a lot more of these goods in store. replacing some of the choch skis youthings you'd come to get they've got a lot more medical equipment as well. for seniors in particular. if you come out of the hospital after a fall, the pharmacist will help reconcile your new medications that you might have

gotten and also, bring you here with the health concierge the to look at some of the things to help prevent a fall in the future to get you a safe chair, to get you grips to put yo in your shower and make hook yo up with a walker if you need one now so you don't have to go to a medical supply area to do it they'ven have for folks who may not have had something yet, yoga classes and nutrition classes twice a week to get people into the store and really consider this as their umbrella, the location where they can come to maintain and improve their health >> i think it's genius a lot they could do on their own. what does aetna's partnership allow? >> what it allows them at this point, they are in fact doing a trial here with and reefing out

to them proactively. talk with the di tishs or we've noticed maybe you seem to not be able to keep your diabetes in check. let's come in here, maybe come and take a -- owe ga class learn about better nutrition or after you been in a hospital, they see those claims as they're coming through so they can reach out and give those patients and their care givers a place to come and get the advice they need because oftentimes, we need these pieces, but hard to put them all together in one place. >> if you could pick up a card, box of russell stover, sandy needs something for the wife tomorrow >> you know they still have candy, but they have a lot more protein shakes, a lot, they have like keto diet books and things like that. >> she might go for that

>> nothing says valentine's like a protein shake. >> you can use those extra care coupons and really get a discount >> there you go. always a silver lining thank you. coming up on "power lunch," everything you need to know before cisco reports plus a big interview on cnbc david solomon on the closing bell, 3:15 eastern time. stay with us d a coach in high s. really helped me up my game. i had a coach. math. ooh. so, why don't traders have coaches? who says they don't? coach mcadoo! you know, at td ameritrade, we offer free access to coaches and a full education curriculum- just to help you improve your skills. boom! mad skills. education to take your trading to the next level. only with td ameritrade.

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- ( phone ringing ) - get details on this state program call or visit >> analysts argue that the shutdown and the trade dispute between u.s. and china may have a negative impact on the bottom line cisco reports on a fiscal year we will see evidence of the shutdown, won't we, in its results? will we see it hit >> what we're likely to see are a quarter and a gooin guide that are only in line and a stock that is trading like it expects more than that the january quarter was shutdown -- the government was

shutdown most of the quarter, just reopened at the very, very end. i think we will see an impact. i will take it to a beat to only in line. that issue is gone for the guide but other issues make me cautious. >> softening in the at a tima center is one. and you point out juniper and its competitors have pointed to the weakness we heard about the weakness from the chip supplier. is this going to be a lasting impact or is it going to be a short-term hit >> well, i think the data center pause is a short-term hit. if we look at the cisco stock in a bigger picture over the last six months, the stocks have way outperformed the indexes in the next six months i think it will underperform a little bit. the issues we were talking about -- last quarter they reported was almost a perfect quarter with year over year, 15% enterprise growth. things have gotten worse since

then we'll see that in the quarter and the guide. >> how much impact have we seen from the trade war, a shift to other gear makers, for instance, that may not have raised prices because of the tariffs >> right well, i think the more worrisome part of the tariffs is what could happen in front of us. chuck robins, ceo of cisco is out, grifsly talking, hoping these tariffs won't go into effect he said it will affect everybody if it happens. we haven't seen much of a demand impact but it is the uncertainty. it is the uncertainty that's created by this issue being out there, i think, which will lead this quarter rate which last year was very strong and accelerated for six straight quarters we'll start to see that decelerate here and that's what leaves me concerned. >> huawei equipment for telecoms, is that already priced

in the stock >> my general take, and that's a great question, is good for the companies that make systems like cisco and negative for the companies that sell components like the semi conductor companies. for a company like cisco, you know, as 5g decisions are made, this is actually woshing in their favor. it's working in the favor of cisco, nokia, the box makers but it has me extremely worried about the component, guys. >> if you are to believe that there are certain short-term guidance that could hit guidance, current quarter such as the shutdown. all that goes away tomorrow, mike, what would your outlook be on the stock >> fundamentally we have a really good macro. i am a little worried it was a peak macro last quarter. so, you know, the issue here is that we have to find the right growth rate. it was above -- 8% last quarter

was too high if we settle down to a nice four, five percent growth rate i would be positive on cisco i do expect some of the more fast money funds will. >> whole grading on cisco. thanks for joining us. >> my pleasure. >> check, please, is next.

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just over an hour till the closing bell we are headed up higher, 150 or so right now s&p up 12.5 and nasdaq is higher by 30 points consumer discretionary, best-performing sector, 3m leading the dow. activision is leading the nasdaq. >> check, please. >> we talked about eventually tesla and gm building a pickup truck. getting a toe hold in what could be an eventual eb pickup market. mary barra said the future of gm is all electric. this is putting up a moat around what has been a profitable franchise for the pickup trucks. let's say they lost half a

percent, quarter of a percent to eb pickup trucks. >> i wonder why tesla has not gone into that market. >> they're trying. >> they're trying but they've got big trks they're working on. >> and a few other things at tesla these days. >> did we eat the story? >> valentine's day welcome to "closing bell." i'm sara eisen. >> and i'm wilfred frost david solomon will be here to talk about the market, taxes and much more. in the homestretch of earnings season. morgan stanley will be the latest to report after the bell along with