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 aig and mgm.

>> we're not too far off the highs. 0.6%, in percentage terms, about .4% for the other in dichlt ces utilities only the negative sector for the week as a whole. >> extending yesterday's very strong rally for stocks. let's begin this final hour of trade with kayla tausche, ylan mui. kayla, let's start with you on trade. >> reporter: underpinning a market rally with optimism on talks in china to produce some sort of trade deal the president speaking in the oval office with the president of colombia earlier said talks in beijing are going well. >> we have a big team of people, very talented people over in china right now, negotiating on the china deal it's going along very well we'll see what happens 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. >> it is on that negotiating team on which the hard work here falls. the president has asked his negotiators, led by u.s. trade representative ambassador robert lightheizer, that have alluded for decades. we have learned from sources briefed on the talks that president xi jinping is expected to meet with u.s. negotiators on the ground in china to reciprocate trump's meeting with vice premier leo hub the administration has other prongs in the trade fight with china, notably a potential

executive order banning huawei from participating in federally funded 5g internet projects. so far, that could be on hold until we wait the outcome of these trade talks which, according to the president, are going well guys >> president xi sticking his head in would certainly be read as significant in an effort to avoid another government shutdown, ylan mui has the details. >> reporter: haggling over the final details of this legislation and the latest snag is backpay for federal contractors. democrats have wanted to add that provision to the final bill roy blunt told nbc that president trump threatened not to sign the deal if that provision were included. now, we will find out soon, hopefully, whether or not that made it in there we're expecting this bill to drop some time later on today. president trump said he will withhold his final judgment until he sees what's in it.

>> we haven't gotten it yet. we'll be getting it. we'll be looking for land mines, because you could have that. it's been known to happen before to people. we have not gotten it yet. >> meanwhile, federal workers have descended on capitol hill to protest the possibility of yet another government shutdown. they chanted "never again, never again. guys, i think that pretty much supple sums up the feelings of a lot of people here on capitol hill. >> if they do sign this, what's next how does that set up the next issue or next big fight in congress >> reporter: the next fiscal fight will be looking at the debt ceiling the deadline for that is march 1st. it looks like the treasury department will vom wiggle room through the summer in order to keep paying its bills but eventually congress will have to take another hard choice and decide whether or not to raise it that's been a contentious issue in the past. we'll see if that comes up again

after this. >> ylan mui, thank you we are in the stretch of earnings season with a quarter of the companies yet to report dom chu has a look at what we can expect dom? >> earnings beats have been pretty good, although below some of the near-term historical averages, 62% have beaten revenue estimates. that's good but not as good as it has been. if you take a look at some of the big ones left to report yet this season, i mentioned 143 documents still left on the docket big names to talk about in terms of walmart, february 19th. kraft heinz, february 21st home depot, lowe's, all coming up in the next couple of weeks as you take a look at how things pan out, the first quarter --

fourth quarter is almost done. what do things look like october 1st, analysts polled showed earnings growth in the first quarter of this year to be around 8.1%, pretty good fast forward to today, wilfred and sara, now a minus .3% earnings growth rate those expectations have come down quite a bit over the course of the past few months back over to you guys. >> the other point that, 71% of eps beats was on significantly lowered estimates as well. >> that's right. we do have analysts rationing down their expectations as you get close to the start, kind of what's happening here with q1. we knew it would be solid earnings growth. we thought it would be that way in october you've seen those analysts take down those estimates right now we're looking at actually some slight earnings declines year over year for the first quarter of 2019.

>> dom chu at hq for us. david trainer, and jack peruvian david, i'll start with you. >> closer to the end of a bull market than the beginning. i don't think there's a lot of earnings power left in the tank. i think a lot of cap allocation, buybacks and dividends most of what will drive markets will be macro issues, like trade deals. it will be harder to pick stocks and i don't think we'll be going straight up and straight down. >> buybacks, there's some chatter that senator marco rubio started tweeting about his bill that's forthcoming do you think that's having a market impact? >> i don't know. it's hard to tell, separate the bluster from what's actually going to happen. we would be going back in time we got away from that. i don't know what really good that does us. >> jack, what's your view in

terms of the overall market outlook at the moment? how would you frame it >> i think the market is giving us a bit of a warning signal to the upside here, wilf. i want you to think about it this way take a giant step back we're talking about an environment where corporate balance sheets are strong. employment is strong earnings didn't really fall off the edge of a cliff like people were expecting and a lot of that is because of what's happening in china. over the portion of the last couple of sessions we've seen what i've called detaunte. there is a lot of cash sitting there in the fixed income market right now and that natural rotation will take it up i completely disagree about earnings look, we saw an entire year of repatriation of capital. it will take years for that capital to work. if we get this big headwind of china out of the way, at least

increase the detaunte, watch out. coupled with a move, velocity of the move in the 30 and ten-year. it will be that type of move that leaves people breathless. they will be underinvested and out of the market because of the signals that they're getting out of the china trade problem >> well,that's quite a prediction, jack wanted to ask you about the fact that the equity market has rallied so much. there's so much enthusiasm around these developments this year the bond market has barely budged ten-year treasury started out at 268. right now it's 270, 271. if we really do have such an improved outlook on some of these fundamental drivers like trade, shouldn't you see more enthusiasm in the bond market? >> not necessarily what we're looking at right now is a bond market that is looking at a parking spot for uncertain capital on one side and try to

factor in what is a lack of inflation on the other we saw a cpi number that was flat there is no inflation. that means the fed is pretty much out of the picture. if there is no inflation and we have growth, that's a scenario that people are very, very uncertain of how do you get growth with no inflation? that seems to be what's happening. if that continues, we'll see a situation where people are going to stay on the sidelines, under invested, and watching the equity market continue to go higher it's one of those recipes for a meltup, unfortunately. it's going to leave people on the sidelines. it's going to leave people wondering why they're not in. >> you're a little less bullish of the overall market, david what about individual stocks top pick of the month? >> disney. we think that's under appreciated competitive advantage, super cash flow and valuation that is not as nose bleed as the stocks in the market what jack says is true but you have to take into account how

expensive things are and how far we've run. you have a little bit of both. >> what about the netflix threat, do you think they can take that on >> i think so. unlicensed content, they're burning $10 billion over the last five years to generate new content. disney made $25 bhl million. one company makes money, one doesn't. one has a huge pipeline in content coming out in the form of disney, five or six huge movies and disney has another huge advantage over netflix. they can monetize the content. netflix can't do that. disney is holding all the cards. they'll eventually crush netflix and i think netflix ends up the aol of ott. >> generally market valuations right now, where do you see them >> we like to call them microbubbles and micropockets where there's good cheap stocks, a lot that are undervalued overall the market is fairly

valued accounting earnings are going up and to the right, right? economic earnings are falling and declining over the last few years. so, companies are sort of running out of cookies in the accounting cookie jar and i think that's part of why the markets had a little bit of a belly ache recently. it's not able to find firm footing on cash flows and so you have to be careful you're not going to be able to have the tail winds of strong gdp growth, declining interest rates and things we've had in the past it will be more about due diligence and understanding what you're buying. >> david trainer, jack peruvian, thank you for joining us after the break, a big, exclusive interview with goldman sachs chairman and ceo david solomon. his thoughts on everything from the ipo market to the tax proposals. that's coming up after this

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it's a now there's one store that connects your life like never before store. the xfinity store is here. and it's simple, easy, awesome. >> welcome back. goldman sachs tech conference is under way in san francisco our own leslie picker is there sitting down with ceo david solomon. over to you, leslie. >> thank you so much, wilf thank you for being with us. >> thank you for having me. >> you're elevating people who have a tech focus. how does tech fit into the bank's overall strategy and why are you here today >> i'm here at this conference because it's a fabulous event. fabulous event with a large number of our clients here, over 1200 institutional investors here we're hearing from a range of

companies. we heard from alphabet, google chuck robbins is speaking from cisco. i spent some time with sarah fryer, running nextdoor now and i believe spoke yesterday. silver lake was here there's a big collection of clients, but i've come to this conference for years even in past roles, because tech is extremely important in change, disruption it's a good place to come, listen, spend time with clients and get a sense of what's going on i get to san francisco multiple times a year, just generally, given how important the community is out here to our business overall i'll glad to be back this year. >> one of the big topics in san francisco is the ipo pipeline. a big part of which goldman is reportedly taking a role in. is there enough demand from investors to buy into all of the

ideas expected to come down the pike this year >> when good companies come to market there's always investor demand for good companies. when i look at the pipeline right now i think we're at a moment of time where, for a variety of reasons, that's a pretty significant pipeline of really terrific companies that are finally making the transition from having operated for a long period of time to the public market. i think we would have seen more of that happening in the early part of this year if not for the government shutdown. i think the government shutdown pushed that out a little bit and we'll start to see more moment up with respect to that. when good companies come to market, if you have a good company to bring to market there will always be investor interest and demand and this pipeline will get a strong reception from the market. >> you're saying the pipeline is good then? >> i think we've had a real evolution in the market with respect to private capital and public capital where companies can, for a much longer period of time, fund themselves through

private capital as opposed to the public market. and that's delayed the process of bringing companies to the market for a longer period of time there are benefits and detriments to that but one of the results of that is when you do get these companies coming to market at this point they're more developed, they're further along and i think it creates opportunities for investors to buy into different companies we're excited about the pipeline it should be, if the market continues the way it is today, it should be relatively good for ipos, particularly here in the united states. we saw quite a bit out of china, 7 of the 11 ip ochl significant last year we saw out of china. i think that will continue this year with more focus in the u.s. >> you mentioned washington. one of the big policy moves that's getting a lot of attention these days, especially on the democratic side, is this idea of redistribution of

wealth what are your thoughts on that do you believe that the wealthy are being unfairly targeted these days >> i think distribution of wealth is an important issue and for sure, particularly coming up to a presidential electi election, there will be a lot of discussion on that topic and many others. there are a number of other topics that will continue to get debated. as we're focused on our clients, we don't really, on a day-to-day basis listen -- we listen to the discussion but we're concerned more about the current policy parameters and how they evolve there's reason to think about distribution of wealth and how we bring more people along in our society in a variety of ways and it's important that corporations think about those issues i think we are coming into an election cycle there will be a lot of discussion obviously we'll listen to that we're more focused on operating and giving advice on the current policy and environment, not trying to imagine where things

will be. >> one of the big areas people look at here is closing that income gap and looking at raising taxes on the wealthy as the best way to do that. do you agree that that is something that could improve the economy? >> again, important issues that i think it's important, there's discussion and debate on over time, taking that discussion and the debate and particularly the discussion and debate that's driven by political process and attaching policy that makes sense and really does the right thing. i've got a lot of confidence in our system that when it comes to making policy will drive policy that serves us best in the long run. >> do you think this ultimately becomes policy >> i'm not going to speculate on how the tax law changes and evolves. over many decades i've noticed we've had avery few significant changes in tax policy. we've just had one so, like everyone else, i'll listen to the discussion but we'll operate in the current policy environment and see what future policy changes come.

>> you said you believe that bankers will be increasingly targeted in this election season why do you believe that? and is this redistribution of wealth part of that? >> i think what i said was not that bankers would be targeted i think that in the environment that we're in politically, banks still fresh out of the financial crisis, ten years is still a relatively short period of time. the narrative around the world that banks play in our society, which is a very important role around capital allocation, lending to support businesses, create jobs, et cetera i think the banking community can do a better job in talking about that, explaining that. i think in the electoral process there will be certain components of those competing for office that can use that on their platform whether that converts to policy i don't know our job is to serve our clients and operate around that. it's not something on a day-to-day basis we spend time thinking about. >> wilfred has something for

you. >> thank you so much for joining us great to speak as always. >> absolutely. thanks, wilf. >> don't want to lean on the tax issue too much, but i want to talk bayslightly different one than leslie has been talking about, and that's buybacks lloyd blankenfein talked about it yesterday senator sanders say buybacks increase the wealth of billionaires like mr. blankfein. what's your view >> lloyd always has had informed and interesting views on lots of topics he's in an uninhirt hibted position where he can talk about things as he sees fit. on the topic of buybacks more generally, one thing we spend time talking to clients about is capital allocation, how they think about investment,

returning capital shareholders, through dividends or buybacks and there's a balance that always has to be struck there. companies are stewards of capital for their shareholders they need to invest in their businesses they need to invest in their people those are very important things that companies need to do. and that had an to be balanced with if they don't see -- getting that capital back to shareholders in the most sufficient way possible. so this is different for every company. when we think about it at goldman sachs, we think a lot about how we invest in our people, our business, but also how we share that capital for stockholders. >> hey, david, it's sara i have an economic question for you. so the market -- >> sure, sara. how are you? >> i'm good, thank you we are seeing some signs of slowdown in the u.s. economy

auto delinquencies. >> there's no doubt that the momentum has definitely slowed, the trajectory is not as strong as it was a year ago we're through the benefit of tax policy and tax change. there's no question that that trajectory is different than it was. that said economic activity in the united states is still chugging along pretty well we're in a position at the moment where we should see reasonable growth during the course of the year let's say 2 to 2.25% growth, which is not bad we're in a place where the chance of a recession in 2019 is actually quite small and the economic expansion should probably continue. >> what about globally how much has the picture deteriorated there >> there's no question that certain places around the world where that trajectory has slowed more and obviously that contributes to the overall picture with respect to global

growth there's no question that growth in china has slowed but i would say growth in china is still reasonable by any standard even though it has slowed and certainly pockets of europe where we've seen a little bit of slowdown the comments i made broadly about the u.s., when you look at the overall global picture, things are still chugging along okay at this point in time and i don't see a lot of data to say that slowdown is accelerating or in any way, shape or form leading to global recession. >> it sounds like president trump wants to make a deal if we did get that, what do you think that would mean to the markets and the economy? >> well, you know, i think if you look at the start to the market year, coming off what was a difficult december, it's been a relatively good start to the year part that have is over time. and you guys have reported this quite a bit in the last 24 hours.

the market is coming to a point of view that there will be progress on the trade talks. i think that's an important kind of next step for investors they want to see that progress to the degree that progresses, it's a good sign for the market. >> i want to ask you about the scandal. have you already provisioned for the worst case scenario? >> yeah. as we said before, wilf, we have a responsibility in filing our financials to reserve what we feel is appropriate based on the facts we have, based on the facts we have today, we feel we're very appropriately reserved. >> and is that a single digit billion dollars number or is it double digit >> as you heard on the earnings call, we disclosed what we added to our reserve we disclosed our possible loss

scenario and all that have is what we feel comfortable with at the present time, given information we have today. >> mosque along on the same topic recently you decided to withhold a portion of the 2011 incentive packages from three former senior executive employees. the board decided to do that what was the reason behind it? was there some feeling they were complicit on the scandal itself or they didn't do their oversight jobs back when this wrongdoing was committed >> no, no implication of that whatsoever the board took an action to defer, as they were permitted to, to defer compensation that was owed to certain executives based on the fact that they wanted to see this all played out. no any shape or form of

implication. the three were the only three -- the three were the only three that had that particular award everybody else that had that award was retire d or cashed ou of that award. they were the only three that had that particular award. they were the only three executive officers that had that the board decided to defer decision into paying that award until this is all resolved and that was a board decision. >> finally, david, on the topic, i know you can't go deep into the details but given that you personally did build the debt capital market and have been head of the investment bank in the past, what level of personal guilt do you feel and personal atid unfold in 2013?hole thing

>> i think i've been very, very clear that i was outraged that we had somebody at the firm that acted in a way that any way, shape or form doesn't meet the standards of behavior that we expect, the level of integrity we expect, broke the law, became a criminal i'm outraged by that, as are all partners of goldman sachs. this process will play out, as we've said we're working to bring a resolution to it hopefully we can get that done in an appropriate way, in short orde order. >> i have a question, david. we saw the sun trust merger last week wisdom tree reportedly held talks with jp morgan there's news out today that goldman was in talks with the boutique bank and those talks fell apart over m & a. do you expect to see more mergers in 2019 and can we expect goldman to play a role in that

>> obviously the dbt sun trust deal was a big deal. we played a role as adviser in that transaction i think one of the things that was interesting about it is the stocks of both companies reacted wel well, kind of ipd kating the market would see consolidation morgan stanley did an interesting add-on acquisition in the course of recent weeks. as for goldman sachs, we'll continue to look for opportunities to broaden our franchise with add-on transactions in the wealth management business, but we're focused on continuing to grow our business with respect to the initiatives we have. m & a will broadly continue at pace in this environment and financial services will have a reasonable contribution to the over sbls all m & a mix. with respect to our looking at awe boutique investment bank i'm

not aware of those discussions occurring. we're very focused on expanding our footprint which is something we do organically by adding bankers and building out our ability to cover a wide array. >> it was reported that you all were scaling back on your commodities business are there any other areas that we can expect to see a shift under your leadership? >> sure. we have been on record talking about a review of all of our businesses we're very committed to serving our clients in the commodities space. we thought it was an appropriate time to refocus certain areas where our clients really have needs from us in the commodities business and others where there wasn't good client demand to refocus some of those on other parts of the business. we're always looking at our businesses through the eyes of what do our clients need and how can we best refine those businesses to serve our clients

well that's an ongoing process we'll continue. >> david solomon, ceo of goldman sachs, thank you. >> thanks for having me. appreciate it. >> leslie picker, thank you. thanks to goldman ceo david solomon. goldman up .6% financials having a pretty good week. >> for sure. poor last week, of course. >> higher yields helps the picture. earning season may be winding down still big names set to report. cisco, aig, mgm and more after the bell today outspoken t-mobile ceo testifying on capitol hill about his company's proposed merger with sprint. we'll bring you some of the highlights will it feel like the wheend of a journey?p working,

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julia joins us now with the highlights. >> t-mobile ceo defending the merger. >> the outcome will be a significant increase in supply in the form of eight times the capacity our network will make available. it will bring in 87% decline price per gig of data and job also grow up this is dramatically different. >> we'll see how much consumers actually end up saving on data but legere saying that their 5g

offering will offer another opportunity for cable. >> i will not be able to and the united states will not be able to continue with its promise it will be interior to what's being created in china, south korea. that will lead to loss of jobs, economic impact in the country. >> legere, pledging to create 5g without using commitment from chinese giants huawei. back to you. >> thank you, julia. hello, everyone. here is what's happening at this hour, president trump welcoming the colombian president to the white house. during remarks in the oval office he said venezuela would be their main topic of

conversation. >> we're working on many things together, eradication of drugs inside and outside of colombia, and obviously venezuela and the military so many different elements, including trade. i think today a lot of it will be devoted to discussing venezuela, what's happening in venezuela. >> rei chairman steve hooper announcing that the ceo strizke has resigned, following an investigation into the circumstances surrounding a consensual relationship between stritzke and the leader of another organization in the outdoor industry mars rover called opportunity is dead it was the longest living. for more than 14 years it crawled up and down the craters of that planet, snapped pictures of the martian lant landscape.

it lasted a full 15 years. i'll send it back down to you. >> thank you, sue. does america have a debt problem? we'll discuss the impact of the ballooning national debt rahthead

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up next, we'll dive into america's debt problem and the growing risk it's posing to the u.s. economy. rngsft t bl.o will report eain aerheel

welcome back the national debt costing $22 trillion, adding more than $1 trillion in the last 11 months alone, this as new data from the fed shows a $540 billion increase in auto debt and 7 million americans behind on their car payments julia, thanks so much for joining us i guess headline grabbing increase crossing 22 trillion, pace increase at the moment, though, when it comes to the political debate much slower than it was under the obama administration >> look, when we're talking about debt, it's always going to be growing in a growing economy. that, per se, isn't a problem. look at it relative to income or delinquency rates.

oug auto loans are a problem spot in an otherwise healthy consumer borrowing. that was the new york fed report borrowing is rising but debt to income for consumers is still declining. they're still not borrowing as fast as their income is growing and that's a sign of health for the consumer balance sheet. >> so maybe let's worry about the national debt a little more. >> federal, yes. >> $22 trillion. >> that's a bigger problem. >> at a time when the economy is expanding. why is that a problem? >> it's quite a hot debate right now. is debt a problem? the fact that we look to be in a world of persistently low interest rates have led a lot of economists and policymakers to question whether debt is the problem we thought it was. it's not leading to that loss of confidence that it can in emerging markets they have the advantage of being reserve currency. >> like greece >> greece, venezuela

many examples of that. the u.s. has a different advantage for being a reserve currency. >> on that point, debt to gdp around 100%. >> yes. >> there's no risk of anyone starting to lose faith in the dollar you look at china around 300%. japan, high 200s. >> yes. >> the u.s., in that perspective, is not that high by developed currency standards. >> right and there's no eminent signs of loss of confidence in the dollar there's really no alternative. >> so we're fine >> for now for now. now, the worry is that it won't matter until it does. >> i was going to say, isn't the problem if we go into a recession and need fiscal stimulus to dig us out, it's going to be problematic? >> look, i believe there would be fiscal space because interest rates are low and people want to buy u.s. debt. we'll be able to inject stimulus

in the next recession. no one is arguing for discipline anymore. we have an aging population. japan has been certainly, as you noted, exploring this frontier with 200% debt to gdp. so far, it's okay. but we'll see. >> quickly corporate debt levels, how do they look >> corporate debt levels is a completely different animal. that is high it's high relative to corporate profitability and corporate output so i think if we are going to see a debt problem in the next recession, it's going to be on the business side, not household side and not the federal side. we've extended credit that probably shouldn't have been extended this time around. >> of the three that's the one to worry about >> that's what i think, yes. >> julia coronado, thank you

we just lost a decent amount of the gains today but we're still higher by about .3%. nasdaq basically flat now. healthy travel demand boosting shares of hilton. we'll discuss its earnings beat next. entrepreneur and homemade founder ayesha curry will join us at post nine. we'll talk about her new business and basketball star husband steph curry. dow u11potsisp 7 in f blowers. [beep] you should be mad your neighbor always wants to hang out. and you should be mad your smart fridge is unnecessarily complicated. but you're not mad, because you have e*trade which isn't complicated. their tools make trading quicker and simpler. so you can take on the markets with confidence. don't get mad. get e*trade and start trading today.

>> welcome back to the closing bell let's check in on some individual market movers shares of hilton tlrading highe. the company cited higher prices, healthy travel demand is driving the gains, healthy travel demand overall has not just boosted their stock up 7%. a lot of the broader industry, whether we're talking about cruise lines, some of the airlines as well off the back of this, higher reporting. >> not trip adviser. they missed. >> not trip adviser.

morgan stanley revealed 5.6% in the giant, roughly in line ofity holding in the management division separa separately twitter ceo jack dorsey discussed plans to make improvements, services, lot of good stuff in there. who did jack think was the most influential person on twitter. dorsey revealing it's elon musk. he's focused on solving existential problems and sharing his thinking openly. i respect that a lot and all the ups and downs that come with it. odd choice, given that elon musk used twitter to say he was

taking hiscompany public and being accused of a pedophile. >> focused attention on jack's platform i guess he could have picked the president as well. >> or any celebrity or anybody really it was an interesting thing to follow, the interview. what it made me feel is very confident in our job, as tv interviewers because it's a lot easier to follow a tv interview than a twitter feed. everybody comments and it's very hard to see what the next question is. >> that question, in particular, stood out. twitter is up 2.4% five minutes left to trade. after the bell, shares of mgm have jumped 20% this year. we'll get those earnings results along with aig, cisco and more coming up on "closing bell." what do you see? we see a billion more people breathing free.

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we didn't just slip right there toward the close about ten minutes or so ago. sectors for you today as you can see, utilities is the only one that's meaningfully negative we look at the weaker data, as well, energy the big leader today up over 1% industrials, consumer discretionary doing well strong week-to-date performance we've seen stronger still internationally shanghai has had a fantastic week germany is up 2.5% week to date. not leading the pack in a way last week the u.s. was on the right-hand side of this chart it's up half a percent that probably also weighed on the pull back we saw on stocks at the end of the day. >> trade optimism, the big catalyst not just for stocks but

overseas as well as you pointed out a strong session in china china trade index, .6% europe closed higher despite industrial production falling for the second straight month. within the s&p 500 here in the u.s., the consumer discretionary sector, mentioning the travel names, hilton, brt than expected results. it continues to outperform hilton today and marriott is up 4% we're going to keep an eye on hyatt. if they can continue this momentum we are seeing in the hotel stocks, going into this year, the concern was that softness in the economy would lead to travelers pulling back on hotel spend but that's clearly not the case yet we'll see what happens. >> higher reporting after the close as well. you mentioned that eurozone was down more than expected in december but improving since

november, which was the worst month of all back to the main indices at the moment 113 points high of the session was 200 points couple of pharmaceutical companies. s&p up 0.3%. that does it for the "closing bell." sara, back to you. >> welcome to the "closing bell." i'm sara eisen wilfred frost joining me in a second second strong day in a row for the dow, fourth day of gains for the nasdaq and the s&p there's the tech comeback and the major average picture, the dow going out with a gain of just over 100 points off the highs of the day but

also off that midday fade as well s&p 500 up .25%. consumer discretionary had a good day utilities and communication services closing lower nasdaq underperforming, still ending in positive territory russell 2000 index and small caps up .3%. big earnings from cisco, aig, mgm. we'll have those results as soon as they are released joining us, aerial investments mike, fang didn't do so hot but other sectors did. >> it wasn't all inclusive and not necessarily high momentum. another modest day of follow through to the upside. it feels like in the absence of very strong sharp, edgy headlines anywhere, the market remains in recovery mode there's a bid throughout the day. i do wonder how many times the market is going to celebrate

virtually the same news, right which is, hey, guess what, there will probably be a u.s./china deal if, in fact, that's what's going on today another quarter percent to the upside the rally is getting extended. obviously people will be able to point to how components of the market are overbought. it hasn't shown many signals. >> on the u.s./china deal, again pointing out shenzhen up 6% it was closed last week. that was a week where we were negative and positive trade deals. clearly in china, people are welcoming what's happening. >> it's a catch-up move. if we're looking at how the government shutdown went, like whatever deal is available, we're going to take the deal, call it a win. if that template somehow works on china as well, that's a fopah to having something done. >> i think what people are asking about china at this point is how much is being baked in

and how much of a catalyst that can mean for stocks beyond just this week. >> that's the big question. >> if it somehow happens, when earnings estimates bottom. maybe that's a positive. my personal thought is we're going to check off the box and find something else to worry about or look forward to. >> charlie, do you think expectations on china trade sort of price into the market at the moment >> yeah. it depends on what day you ask me that. i think the good news is that it's really going to be good news we're staring at 25% tariffs if we get any deal at all, those tariffs are going to come down we're going to have more free trade than we would have had in a fight. and so, sure, we may not get everything we want out of this deal we are going to get a lot better situation than people had feared as recently as a week and a half ago. mike and i tend to see the world differently. he tends to see it half empty and i tend to see it half full and any agreement is better than

no agreement it's going to be positive for industrials. >> is that fair? >> i don't know. i've been accused all day of being a i don't know that it's the single most influential thing we'll be talking about at the end of the year. it's not hey, we got a trade deal in the first quarter. that changed everything. >> will it be earnings, mike >> that will be in the backdrop. is it a stutter step in earningings growth or -- >> that could go a long way to restoring economic growth in places like germany, china. >> sure. >> major trading. >> exactly, those are the markets you want to own. >> charlie, in terms of the earnings outlook the rest of the year, what's your take there >> people have been talking about an earnings recession. it's a lot less likely to happen if way get a trade deal. there are a lot of u.s. companies that did a lot of

business in china as well. u.s. companies import parts from china and they were seeing significant supply inflation because of the risk of a 25% tariff so this, any deal, is going to be good news it is the one overhang that could have done real damage. if it goes away, we'll be in good shape. >> we pressed him on goldman's involvement and asked about what level of personal annoyance he felt about the scandal as former head of the bank's investment banking division. >> i've been very, very clear that i'm outraged that we had somebody at the firm that acted in such a criminally difficult -- criminally and inappropriate way, that acted in a way that in any way, shape or form doesn't meet the standards of behavior that we expect the level of integrity we expect, broke the law, became a criminal so i'm outraged by that.

>> i mean, i thought that was a pretty brutally honest, it sounds like, emotive answer from solomon. is this still hanging over him and the snok. >> stock >> it is definitely hanging over the stock. trade something declining, for example, new management getting hold of the company. there's no doubt that the valuation, relative to its own history and relative to his is impacted by this a couple of thoughts before that, they feel they've financially provisioned for this, then there's going to be a jump in the stock as we find out what the fines are, provided they're right. you know, there's a question that -- people like certainty with this even if it's a big fine. >> and then move on. whether u.s. growth is really slowing. >> economic activity in the united states is still chugging along pretty well. i think we're in a position at the moment where we should see

reasonable growth during the course of the year, let's say 2, 2.25% growth, which not bad. we're in a place where the chance of recession in 2019 is actually quite small and the economic expansion should probably continue. >> that's sort of what the market is telling us right now. >> pretty much the market has come around to that view. obviously things have changed in six weeks. i think market was braced for something worse. you can kind of say no clear indications of imminent recession in 2019 then it does insulate the markets to some degree from any kind of a quick downside. >> we've been talking about the final hour of trade and how important it is and how much volume is passing. some people are noting we didn't see the rush to buy that we had seen -- >> you mean on the day when the wall street journal ran a story saying it's all about the final hour bullishness >> it didn't happen today. interesting. >> what does that mean, mike

>> people probably got in front of it. i'm not saying it's a new trend but it's been very pronounced the last several weeks. >> charlie, what's your take in that tone from david solomon do you think he struck an accurate tone on broader market and sentiment? >> yeah but 2 to 2.25 is not a particularly bullish call. look at wage growth we got, 1.7% real earnings increases. we've had very good increases in the number of people working at better wages, the u.s. economy is still 67% consumer. i'm a little more bullish than that we'll see better economic activity than that there's pessimism out there, which is always good for the stock market. >> cisco numbers are out josh lipton has the numbers for us josh >> earnings per share, the street at 72 cents revenue 12.45 billion. analysts have been looking for

12.41 billion. cisco expecting eps and for revenue growth of between 4 and 6% analysts were looking at 3%. cisco saying they'll add $15 billion increase a year to their buyback program, increasing the dividend by 6% looking quickly through the segments here, infrastructure platforms, 7.13 billion, up 6% that's the core network offerings from the company about 1.5 billion, security 658 million, up 18%. this conference call starts at 4:30 eastern and we'll be on it. guys, back to you. >> josh, thank you so much for that don't want to miss this as well. cisco ceo chuck robbins tomorrow at 9:00 a.m. on "squawk on the street." set to dig in to the numbers

what's your take on this clearly stocks jumping, quarter numbers pretty much in line but guidance better than expected. >> i think it shows they've doubled down on m & a, specifically in security and cloud and i think you're starting to see those benefits hit numbers. it's not just good for cisco but broader tech space this could be fuel in the engine for the bulls. >> any sign of tariffs don't they have an issue when it comes to navigating tariffs between the u.s. and china >> well, they do, but i think cisco is in a unique position. they could benefit in terms of the backlash, huawei or others would have gotten. relative to other tech players they're a bit more insulated than we've seen from intel,

apple and the others. >> where does this rank in terms of your recommendations and valuation compared to some of the other peers in the space >> obviously they're continuing to trend in the right direction. part that have is robbins what he and the board have done from a tech perspective, our pecking order, names like microsoft. that plays the cloud trend more of a near-term benefit as well as apple. if you look at cisco names like palo alto and checkpoint, that's a way for investors to play the fire wall network sort of renaissance of growth trend that i think you're seeing here. >> mike, there's also quite a big boost to the buyback here as well 1.6% increased. >> companies aren't feeling the political pressure there yet. >> cc'ing marco rubio on that. >> it's been part of the cisco

story for a number of years. capital return both in the form of dividends and buybacks and also the type -- profile of company where you would expect that, right? it's not fast growth it had a type of growth period 20 years ago and it's just harvested cash flows staples stock as compared to something that's cyclical. >> what would you say? >> there are some tech names you can own and put away this is not one of them. it sometimes gets very expensive and sometimes get very cheap got unbelievably expensive in 2000 and it got very, very cheap in 2011. multiple got around 11 or 12 this is -- mike is right on this this is a capital return story they've done a nice job of returning cash to shareholders at the right multiple. it's a good investment it's a little above that today. >> that $15 billion increase in

the buyback, was that bigger than you expected? >> yeah. bigger than the street expected. and i think that's going to be a focal point. i would also say, to your earlier point, if you look at names not like cisco, but ibm. through m & a, tech names start to see more growth on cloud, the next gen trends. this is something that's a positive for tech as we expect a surge in more m & a in the networking sector. >> thank you very much for joining us up next, we'll break down aig's earnings, due out any minute now plus lawmakers increasingly calling for new legislation to tax wealth we'll debate how that could impact the economy and your investments when we come back. see that's funny, i thought you traded options. i'm not really a wall street guy. what's the hesitation? eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that.

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we've got an earnings alert on mgm resorts hi there, contessa 13 cents with those one-time exclusions also on revenues, the estimation

here was 2.98 billion and beat that at 3.05 billion i want to talk about china china has come on roughly in line with estimates here, and in las vegas revenues are up 6% when you compare the quarter of 2018 to 2017 but let's talk about that a bit. in 2017, mgm had a rough quarter, especially after that mandalay bay massacre. it was a somewhat easy comp coming in. a quarterly increase on dividends by 8% and they've backed away from offering guidance full year by the quarter. instead he's saying lookin toward the future, they do expect to see some improvement because of cost efficiencies, guys. >> saw that dividend raise as well, paying extra close attention to this use of cash. contessa, thank you. senator marco rubio tweeting

today, in part, i support free market over socialism. the market is better than but tax code discourages best aspect of free market by giving buybacks deferral advantage over dividends or investment. >> howard schultz weighed in on the wealth tax debate. >> i should be paying more taxes. and people who are in the bracket of making millions of dollars, whatever the number might be, should be paying more taxes. i think what's being proposed at 70% is a punitive number and there's better ways to do this. >> what's not punitive >> i don't know but i'm suggesting i should be paying higher taxes. >> let's bring in gene sperling, former director of the economic council and cnbc contributor from american enterprise

institute. separate issues on buybacks and taxes but it's a common thread where do you see this debate going? >> it's been striking how well received by the public, including republicans and independents polled how popular the elizabeth warren wealth tax is it's for three reasons one, you really do have extreme wealth inequality in our country right now. it's back to having 42% of the wealth that's more than we saw in 1915, 1917 in the period of the most excessive wealth concentration secondly, this only hits 75,000 people who have net worth over 50 million that still allows a lot of people not to be impacted and third, typical homeowners know, hey, i get hit with a wealth tax, property tax every year i do okay. why is it unfair that those who

have vast more resources and assets are able to have untaxed wealth that they often pass on to their heirs while here middle-income, working families are paying income taxes, payroll taxes, and wealth tax in the form of a property tax on their home >> wealth tax we debated before with you can be very hard to implement, but could it be mksed in with other factors be the way forward? >> if there's anything we learned the past month is democrats have boundless imagination when it comes to figuring out taxes i'm sure we could come up with some sort of tax the point is, what is the purpose of the tax is it punitive, to reduce wealth inequality gene well knows that peak in 1917 was followed by tremendous productivity boone in the 1920s. people often forget about that

if that is to use it to pay for stuff, to pay for a job guarantee, to pay for medicare for all, i agree with jason and larry somers if that's what you're going to do, everyone is going to have to pay more and that would be through some sort of value-added tax, which democrats aren't talking about. you could get all those paid for through raising the tax rate to, i think, a harmful 70% rate. >> gene, what do you make of the way that this debate has settled? you dleniated a lot of vectors where this is built up, deferring them in perpetuity why stop buybacks, in particular, geing all this attention? >> for a lot of us, we are in pretty big i told you so views i've heard people say oh, my gosh, if we could just bring back money if we just had a lower rate, we

would invest we would create jobs and we would always say to people, hold it you have huge amounts of cash on the sidelines. you have the lowest financing costs. if have profitable investments, you could afford to do it. when people see that money coming back and everything they heard not being the case and just going to stop buybacks which benefit -- have an excessively disproportionate impact on the most well off, if corporate america had responded with a flurry of job hiring and investment, that would have been the show that they wanted. they've actually proved the opposition's case to this recent tax reform. >> which brings me, jimmy, to senator marco rubio. >> right. >> a republican. is there any sign there's any momentum within his own caucus to go after buybacks and tax them differently >> well, given that thsis was a free trade party not so long ago

and now it isn't, i hesitate i think republicans have a problem. they promised this tax cut was going to boost investment and it isn isn't. they need a scapegoat. rubio was choosing stock buybacks to other obvious scapegoats would be the president's trade war and tax cut financed by deficits those are also possible stories. that goes to the very structure of the tax cut and very nature of the trump administration. we need another person to blame, something else to blame and rubio is blaming stock buybacks. i think his plan doesn't make a whole lot of sense i don't know why he wants more in dividends rather than stock buy backs, whether he wants to raise the cost of capital. if you're looking for something else to blame, you grab what you can. >> let's remember what our goal is when we do economic policy.

it's not about any particular metric it's about are you creating growth and wealth and prosperity that benefits the opportunity and happiness and dignity of typical american people? so when somebody said this is not working for everybody, they're not taking some wild, or radical position they're asking what every american should ask. are these economic policies benefiting the public as a whole? it's a very hard case to am make that this excessive buy back, after this tax cut to 21% not even asked for by the corporate community is really benefiting the typical -- >> buyback aren't hurting investment come on. >> what a better way to tackle this issue, which has seen share prices rise a lot more in the last decade, following qe than, say economic growth has, to

increase capital gains tax. >> well, you know, i think you can look across the board. but it's interesting that there would be such a negative reaction to a wealth tax that hits .1% i do believe capital gains should and could be higher not to go overly wonky, it doesn't end up getting scored as having the type of revenue impact it would. i do believe that -- >> do you think jeff bezos is taking from the american people? do you think amazon did not generate more consumer surplus and spillover growth than what's going to be gained by your tax come on. >> the come on is back to you. nobody is saying that we shouldn't have a free enterprise system, that we shouldn't have capitali capitalism to say you could give a little bit back when people are going out with decent retirements, having despairs of debt, giving

up on their lives after being dislocated. >> that's being caused by google >> did i say that? >> and amazon? come on. >> you're putting words in my mouth. >> you're trying to make a connection between two things. we have this tremendous entrepreneurial system that's made some people fabulously wealthy to like the opioid epidem epidemic that's the connection you're making. >> no. we need to organize policy so we take care of all of our people. >> we need more billionaire entrepreneurs. >> hold it yes, we should have more billionaire entrepreneurs. >> thank you tell elizabeth warren that. >> if you get to be a billionaire, you can pay a couple percent more to make sure that the rest of the american people -- >> warren adviser wants more billionaires got it. >> but i do believe you can have a progressive taxation that

allows more people to have health care, paid family leave, to have training when they lose a job, to be able to send children to school. >> you want a value-added tax. >> that makes our free enterprise system fulfill its duty and destiny to embetter all the american people. that's a belief in our system. >> just to clarify, are you advising senator elizabeth warren >> i am not working for any particular -- >> on the wealth tax, right? >> -- candidate. her team did call me and i did advise them. and i did favor her doing that, and i'm proud of that. >> it's good having you on. >> gene sperling and jimmy pothoukas. heated will crude crush the recently rally in oil prices

back in a couple of minutes. why would you need to learn every detail about a company? firmness... nine. it's how ibm services helps retailers around the world drive growth and save millions. he's very into this. yeah. is that the standard amount? yes. feels good. when your partners are obsessed with business and technology, you can put smart to work.

welcome back eps came in as a 63 cent loss versus 42 estimate here ceo said fourth quarter results were net losses on alternative

investments and equity securities resulting from elevated volatility in the credit markets and unfavorable for performances, rather, in equity markets sounds like it's related to investments instead of operational at this point. aig has added $2 billion to its stock buyback program, alotted 1.8 billion, had 500 million left in that plan and tacked on another $2 billion on top of that they mentioned catastrophe losses related to hurricane michael and california wildfires in this release. >> tallying up those buybacks. contessa, thank you. trending above historical averages but could the current rally be getting ahead of itself michael santoli, looking back at history. >> goldman sachs constructing this chart, actually it does show or at least suggests that this rally is ahead of similar rallies from

similar declines this orange line say composite of 10 previous times when the stock market went down 20% in a three-month period and rebounded. so those charts are lined up at the market lower or just about there. the blue line is the current experience, right, up off this low right here it's above this shaded area, which, of course, shows the range of the previous highs and lows by the way, this current rally is not even included in yesterday and today's upside it goes through february 11th. it was a more violent decline than the average was the snapback has been more dramatic it would at least suggest that the market cannot continue at this pace for all that long and i was saying earlier, guys, there have been many nonrecession 20% or thereabouts pullbacks where the closing high to low it was this one. we had one in 1998, 2011 somewhere out there in the universe is somebody who is sitting there with a limit order that says when the market goes

down 20%, we're not going to let it we're going to buy it before that happens that's where we are. i don't know if we have an answer as to whether the overshoot to the downside was also so dramatic that we're making some of that up. >> i guess the decline is more pronounced but only in the final weeks. >> the last piece of it, right s&p 500 bottomed on the closing base of 2351 on christmas eve. do you know how long we spent under 2500 four trading days. one concentrated bout of selling. >> i let you deliver the answer. >> thank you very much >> time for cnbc news update with sue herera. hello, sue. >> hello, wilf. hello, everyone. brock long announcing his resignation after overseeing the government's response to hundreds of hurricanes,

wildfires and other natural disasters. investigation found he misused government vehicles. long took over the agency in 2017 vice president mike pence and secretary of state mike pompeo posing for a photo in the middle east conference in poland organizers broadened its scope to include the entire middle east region. >> here at home, bill cosby says he will never have remorse for the sexual encounter that sent him to prison because he considers his conviction the work of a, quote, low-life district attorney and a corrupt judge, end quote his stance could leave him to serve the high end of his three to ten-year prison term. according to multiple reports, the baltimore ravens are trading their long-time quarterback joe flacco to the denver broncos for a fourth round pick that. means they're committing to lamar jackson and the broncos

are moving on from case keenum, she tried to say back down to you. >> sue herera, thank you very much. we'll discuss whether oil's big rally year to date. plus cooking and homegoods when we're joined by author and enepne ashcuy.trreuryea rr val, vern... i'm off to college and i'm not gonna be around... i'm worried about my parents' retirement. oh, don't worry. voya helps them to and through retirement... ...dealing with today's expenses... ...like college... ...while helping plan, invest and protect for the future. so they'll be okay... without me? um... and when we knock out this wall... imagine the closet space. yes! oh hey, son. yeah, i think they'll be fine. voya. helping you to and through retirement.

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10 million barrels per day inventories are on the rise. >> let's bring in cnbc contribu contributor. >> i think the saudis are very serious about trying to push oil prices higher. they have a 7% increase in spending clear revenue needs. i think this is reflective in their oil policy they're back in whatever it takes mode. >> are they going to change tact

if russia doesn't play along as fair as they are >> saudis have said the russians have been a little too slow. still they are bearing the burden of adjustment to be fair, they were the ones who oversupplied the market over the summer, so they are rolling that back now. they've had some help from kuwait, uae. this is a saudi-led policy. >> so saudi and the u.s. has sanctions on venezuela and iran. what's the supply picture look like >> it is tightening. we do see dproeth in the united states, obviously. iran has now lost 1.7 million in exports from their peak last year venezuela, elliott abrams, special envoy for venezuela, was out saying production will likely drop by 500,000 barrels this year. saudi can see this policy through. this market will tighten, especially as we get out of refinery maintenance season in the u.s. >> given the bullish jaw boning and this chain supply picture,

what do we make of the fact that crude has been side ways for a few weeks? is that something to note? >> demand fears hangover this market it's a real concern about what's happening in china, fwloebl growth it's a headwind for oil right now. if people believe that the trade talks will break down or we have slowing growth in china, that's an obvious headwind. >> what about that global growth outlo outlook, has that come down to more than you expected >> one of the things we're concerned about really is the sentiment on growth. one thing we're seeing right now, in china, for example, really good jet fuel demand. we're concerned about slowing auto sales we don't see demand going off a cliff yet. certainly fears of a slowdown can drive prices much lower. we are conditionered about the macro picture for oil. >> we just heard from some of the oil majors during earning season did anything change the outlook

for u.s. production? >> i mean, u.s. production just continues to go. that was one of the things, again, that was a problem in the market last year we talked so much about these bottlenecks and then we have really strong u.s. growth. one of the dilemmas that will emerge later this year is how much more willing are they to do how much more market share will they cede to the united states that's certainly something that the saudis said they wouldn't do a couple of years ago and are back to essentially saying we're going to bear this buriden and the u.s. continues to fill the gap. >> more companies moving after hours on earnings. >> beat on the bottom, in line with revenues. it is slashing its dividend by more than 50% down to $1 the stock is down more than 10%. that's an improvement from what happened right off the bat when

they first announced earnings. net app is a cloud data and storage services company it shows a small beat on the bottom line, nickel beat greater than 20 revenues revenues here a little light next quarter guidance really came in below expectations here. that stock is down more than 7% now in extended trading. yelp, the company that a lot of us use when we're checking out restaurants, huge beat, 37 cents versus a 10 cent estimate. revenues slightly above. significant progress the company cites in usage in restaurants and added three seasoned executives to its board of directors, also announcing its increasing stock buyback by $250 million. that stock is up 6% in extended trading. at close today it was up 10% on the year but still down half a percent over the last 12 months.

wilf >> contessa, a lot of big moves there. thank you for suming that up for us her husband may dominate the baskba crtutetllou b ayesha curry is trying to dominate the home goods market. she'll join us in a couple of minutes.

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articles, recipes and place to purchase her merchandise ayesha curry joins us now. >> thank you for having me i'm so excited to be here. >> so you're going outside culinary >> actually, no. it's all things home it's shop homemade.com it has everything from cookware, bedding, my meal kits, which are going to be available at whole foods. so i'm just very excited to have everything i'm doing housed under one domain. >> you're doing that in partnership with go daddy? >> absolutely. >> you built the website with? >> yes i'm a go daddy partner i'm not a tech girl. i don't know much about that world. so they have been able to help me just build the world that i want and create a beautiful website that's easily navigated and makes so much sense. they've helped every step of the way. it's been incredible. >> is part that have partnership because you want to encourage others to start their own business >> absolutely.

especially as a mom-preneur, as we call it, i want to encourage everybody to get out there if they have a passion, a vision, to know they can execute it with a few simple tools it's crazybecause 60% of entrepreneurs actually don't have a website for their business and i feel like that stat is kind of crazy when it's such an easy thing to have at your fingertips to market yourself. my goal is to get everybody out there, having their own platform it's great to be able to have a website, to spread the word and create your own narrative. >> it's interesting. i would imagine some people don't have a website because there's an impression out there that just a social media presence is enough, right? what does a website do in addition to that when you already have those huge audiences out there? >> i think it's a professional tool to have fa it's a way to tell the whole story, not just in a couple of

pictures or small quote. it really allows you to share the vision of the product it is that you're selling or the brand that you have, or the business that you've created. it's a great way to have kind of a hub for everything that you do. >> how did you get into all of this >> i fell in love with food at 12 years old i didn't fall into it as a career until after i had my first child. and i started to care more about where food came from and then i noticed that a lot of my peers were eating out so much and stopped, you know, thinking that they can cook a meal at home and getting to the table and enjoying a meal together and what that does, it lessens that family bond my goal is to keep people together, gathering around the family table, building those foundations for kids to throw up and thrive and know how to have a strong relationship. >> what's the revenue model with things like the recipes, the tips obviously that's given out for free. >> absolutely. >> do you make money if people

are on the website and buy the equipment as well? >> yeah. for me it's not all about that i want to be able to have it come full circle and for there to be things for people that they can find on there for free. and if they feel so incline d as to get a cookware set they can do that. i more so wanted to have a place for people to enjoy, find a sense of home, a recipe if they need it. >> meal kits are a sub sector of that has that been quite fiercely competitive? >> absolutely. and the reason i wanted to get into it is because there are a lot of meal kit services out there. i noticed that people were still complaining about the steps involved in the process of making the meal and a lot of them lacked flavor and so i wanted to figure out a way to lessen the steps, simplify it even more and make sure i kept that flavor there, that it was still good enough for a child to want to eat a lot of them are too impressive

for a child to want to eat these are all tried, tested and true on my kids. they love them nobody has any excuses. >> is your husband involved at all in the business? >> not at all, actually. he's support standpoint. >> and eating the food standpoint. >> and eating the food, yes. there he is. >> thank you for coming by ayesha curry, good to see you. >> thank you. up next on the show, an iconic american brand is heading back to wall street. details on levi's upcoming ipo straight ahead minimums and fees. they seem to be the very foundation of your typical bank. capital one is anything but typical. that's why we designed capital one cafes. you can get savings and checking accounts with no fees or minimums. and one of america's best savings rates. to top it off, you can open one from anywhere in 5 minutes. this isn't a typical bank.

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welcome back here are some stories on the

closing bell radar today i've gone for italian soccer giants y venn tis who priced at 3.5%, they of course signed cristiano ronaldo for 90 million euros. i was a little skeptical of how much they paid him >> i told you that you were wrong. >> you said it would deliver in terms of merchandise, which it has so let's have a look at some of the numbers. >> i need to school you in soccer. >> in q3 they sold more jerseys thanes prior year combined their following on instagram has gone from 65 million to 70 million. ron n-- the share price doubled in ten weeks after he signed, 72% over 12 months a bigger point, you were right on the ronaldo thing the stock price is up 800% over the last four years.

hoping it continues because they will -- >> 3.5%, five-year debt, not bad. >> yeah, not bad. my story, barbie adding new members to its fashionista lineup the new barbies include one in a wheelchair and one with a prosthetic leg those will be available in the fall the line features dolls with different skin tones, hair textures and body types. bravo. as someone who grew up worshipping barbie and her perfect body, and you know, sort of dream of that, i think it's good to make a more accurate representation >> gotten the message for sure. >> barbie. >> they're all barbie. >> barbie comes in different shapes and sizes very good. levis, the company credited with creating the first pair of blue jeans planning an ipo again, san francisco-based company is looking to raise 600 to $800 million to debut with a valuation near $5 billion. levis had gone public in 1971

taken private in 1984 after a downturn not too many 1980s era lbos remain in private hands. it's the founding family, descendents that own it. it's about a third of the revenues of the f corp for the size of the brand, not an enormous company. very concentrated on denim. >> it's been appealing because it has that vintage 1980s comeback. >> there's a classic to it and 1880s for that matter. 55% u.s., the rest of it global in terms of sales. >> i think so. >> that's a long time ago. >>. up next we'll tell you why shares of fossil are plunging after hours, we're back in a couple of minutes. don't go anywhere.

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welcome back, let's get a check on the headlines making news cisco trading higher after beating on the top and bottom lines and upping its buy back program by $15 billion it's up 3.7% >> mgm also beating on earnings and revenues, china revenues were roughly in line shares of fossil on the move are plunging after missing on the top and bottom lines giving weak

first quarter and full-year guidance global retail comp for fossils were down 7% the stock getting hammered almost 17% after hours. >> mike, final thoughts market moving today again positive. we lost a bit of momentum at the end. >> getting tired or not? >> i wondered if it was a little bit of fatigue bangs d banks did well mentioning the volatility it has been very steadily but almost grud grudgingly going down. now it's in the 15 year which is a line between calm normal markets and agitated markets we've come a long way. i don't know what the next catalyst, macro data tomorrow for retail sales, i think it's for december it's not clear that the market is keying too much on the macro numbers. >> coca-cola is out before the bell, covered that oun squawk box. we'll ask about the economy. we'll also ask about the state of corporate america.

>> and of course, you know, vaivai valentine's day. >> is that a catalyst? is there some seasonality there? what happens >> there actually is. >> it means we're halfway through february that's what it means to me. >> certainly given positive impetus. that does it for "closing bell," thanks for watching. "fast money" starts right now. live from new york city times square, tim seymour, brian kelly, dan nathan, tesla hitting the skids as competition ramps up and adam jonas says it's about to get worse and tulip mania 2.0. one wall street firm is calling the cannabis craze a bubble of epic proportions that is about to explode we'll have all the details. goldman sachs ceo david