on, shoe pet. >> shoe pet the cat? >> the cat of karl lagerfeld loved and stands to inherit millions. >> the trustee to take care of the cat. thank you for watching. >> "closing bell" starts right now. >> see you tomorrow. ♪ welcome to "closing bell." i'm sara eisen. >> i'm wilfred frost a very good afternoon to you shares of hormel under pressure. we'll talk to the company ceo about the numbers coming up. drop box reporting after the bell today the ceo drew houston gives us the reaction to the numbers. first up, session lows for stocks took a spill in the last few moments or so. you've got big losers like hormel on earnings and really all the groups in the s&p lower right now except for utilities energy, health care,

communication services, worst performers. >> taking us into the red in the last hour for the week as a whole and reflects poorly against the rest of the world. germany up a percent but first, stocks falling on weak economic data let's get to senior economics reporter steve liesman steve? >> wilf, soft economic data has economists looking for softer growth in both the prior and current quarter. several responding to the worse than expected durable goods lowering the tracking forecast for the fourth quarter down to 2% for the fourth quarter and now the q1 forecast, we don't have the data but the forecast 1.8% durable good orders, remember, this is december data that was delayed by the shutdown coming in below expectations, philly fed. they were up 1.2% and propelled by aircraft orders the business spending category, though, falling for the fourth in the past five months. and a key fed barometer, the

philly fed manufacturing index going negative first time since 2016 now, st. louis fed president jim bullard in an exclusive cnbc interview saying the data within line of expected economic slowing but not worse than anticipated. >> we are expecting growth to slow down in 2019 relative to 2018 we are going do get 3% plus growth for 2018. 2019 probably suspect going to hit that 2.25% i think is a good number not a terrible outcome it just means that the economy's returning to trend growth. >> bullard was an early advocate of the fed stopping the rate hikes and a policy the rest of the economy tee has come around to belatedly he sees a risk of recession but thinks the u.s. can avoid one now that fed policy on hold, guys. >> sounds like he's of the view it's a slowdown and not worse. i feel like wall street has a heightened sensitivity of recession risk

is it there or not >> i think it isdefinitely there and you have to worry if the gdp numbers go below 2%. you start getting toward 1% and the concern of the possibility of it being negative but look, slowing is never good but slowing to, you know, to trend is what you would expect and i think maybe some people thought the 3% number could be the new trend but that's not the expectation right now. and hopefully the economy might surprise to the upside here. >> got it. steve liesmans, thank you. >> pleasure. >> let's bring in anthony khan and for more on how to interpret the data anthony, how slow is the u.s. economy slowing down >> well, i think we are going to move to a 1% handle, real gdp growth both in the fourth quarter for last year and certainly this year. yes, the economy is slowing but one of the thing that is no one is talking about is that the federal reserve is pivoting and

starting to react to the slower economic growth. not only in the u.s. but also abroad and that should cushion the slowdown in growth yes, the philly fed was weaker but if you dig down into the details the employment component almost jumped by 50% from the prior month. employers would not be hiring more people if they were terrified about the future and guess what yes the housing numbers were weaker but that is exactly what happens when the federal reserve raises interest rates nine times. the interest sensitive sectors of the economy like housing and auto tend to get weaker. but a 1% handle is still considerably far away from a negative number that would indicate risk of recession in my judgment >> anthony, i'm not sure where you've been if you don't think anyone's talking about the fed pivot but to his point the fact that the fed has pivoted and i guess has a lot more room to ease if necessary than other developed world central banks does that mean that a recession

is unlikely even if it needs a stimulus to prevent it >> no, it doesn't. we have a cycle slowdown it is going on for a while as anthony was intimating q3 we were at a -- excuse me, q2, 4 handle q3, 3 handle q4 is probably a 1 handle. i think the atlanta fed came out adjusting it down their guesstimate to 1.4 so the direction didn't just start slowing. it's been slowing. and, you know, let's not forget retail sales fell quite a bit. growth, ip is falling. the jobs numbers when we look at the big picture not any one statistic but a group of statistics are softening so, you know, i think in december that 300k we had printed was revised down by 90,000 and see how that holds up going forward

all in all looking at the big macro cycle numbers on growth, you have a slowdown. it's not the end of the world but when you're slowing by definition you're starting to come closer towards recession risk the really key thing is if the forward looking leading indicators are bottoming and turning up and haven't done that yet so that's the elephant in the room the other thing is inflation you know let's not forget that it peaked in july so it took a half a year for the fed to kind of acknowledge that which they have done and, look, better lat than never but i wouldn't call them terribly fast here from where we're sitting this is kind of obvious that they were going to have to change and pivot. the question is, of course, we can't predict the predictors but do they bottom in time or not? >> right we'll watch it anthony, i wanted to dig into durable goods in particular because this is kind of weakish for the last few months. what's happening with business

investment if you dive into the internals in this report, electronic demand, new orders for communications equipment dropping 5%. where's corporate america? >> i have. well, i think that right now there's still a lot of uncertainty. the government shutdown, the trade situation and by the way if you really look at that durable goods order report what you find is that business spending is okay in the current month, up .5%. looking at shipments it's the future orders that worries me we are slowing and not -- i'm surprised by the fed pivot my argument is strong and it says that because the fed pivoting that's going to offset some of this future slowdown that we are in progress. there's no question that with an economic expansion that in july will be the longest running economic expansion since 1900. that we should already be expecting a little bit of a slowdown if anything, the fed pivot is going to probably elongate the

business cycle and not prevent the next recession we are going to get it the issue is when and right now i'm saying it will take a little bit longer >> outside of the u.s., which international region are you most concerned about >> i mean, i think it's people accepted the slowdown in europe. i think what's interesting is this idea that the slowdown we have this china, pulling the levers, stimulating as much as they can so therefore the one shock that everybody's kind of worried about with china is, therefore, we're somehow inoculated against that with the fed pivot and good times the cycle hasn't -- those forward looking leading indicators both on the u.s. which is a home grown cycle downturn and in china, those are still not -- they haven't clearly turned up and no clear upturn there so i think there's a lot of hope that the potential shocks, a trade war, weakness in china are being mitigated by the

latest headlines or whatever but when we look at those forward looking indicators, they haven't given us an all clear yet so we're still cycling down as far as i can tell and - >> which ones should we look at? >> well, these are leading indexes of chinese industrial production, long leading index of china, cycling to the downside the good news is that the chinese future inflation gauge rolled over quite a bit and plenty of room to ease they don't have an inflation tiger out of its cage but are the transmission channels really working? that's an ohm question we don't really know and we look at the leading indicators to see any signs of it getting traction and it is not there yet. >> okay. thank you both very much >> as we're talking the atlanta fed did just trim its fourth quarter gdp estimate down to

1.4. >> very nice. let's see what all this means for the market joining us, randy frederick, vp of trading and derivatives at charles schwab and cnbc's rick santelli randy, we have been resilient as of late. today a little bit of a selloff coming into that and worse relative to the rest of the world week to date is that the turn of the sentiment? >> it is not surprising if you think about the recovery of the market to pause a little bit and maybe a sideways mode and was my expectation for this week. i don't think there's anything to be surprised or the data was that bad in general. we're not necessarily forecasting a recession but certainly a growth slowdown. the atlanta fed downgraded and notoriously underestimating gdp. they have been downgrading this quarter and below the consensus right now.

i don't think it's unusual given how quickly we have for a pause here. >> that might explain, rick, why the bond market and foreign exchange market aren't taking it too bad. yields and the dollar are up today. >> absolutely. it makes no sense but it does make sense watching stocks so, you know, we get existing home sales, lose the 5 million handle actually again they revised the slightly under from last month to slightly over 5 million and that's the weakest since the fall of '1 there was lots of weak data. but randy's right. the reason we look at it as weak is because for the last couple of years it's been so lofty but nonetheless the rate of change matters. and today's data really hit home with stocks. i think they're pricing right to the data but if you look at sovereign rates around the world, they were mostly higher like the u.s as a matter of fact, i'm pretty sure the u.s. led the way and i

think the reason for that is more of the psychology of our fed minutes, what we are looking at in the future from the fed, maybe partially what's going on with china and that should also impact stocks and it makes sense to me that there's a separation there sometimes. remember, we all know that the fed is very responsive to some of the newest signals in the market it saw last year. however, there's been many economies slowing that have had strong stock markets and last year whether the data was spectacular we certainly didn't end the year in a spectacular way so i think there's a calibration issue going on there. >> randy, with the vix much calmer at the moment than it had been earlier, part of -- last year and late last year, at least, is that a good way to get exposure back. derivatives cheaper, perhaps volatility coming down, they get cheaper so yeah. what's fascinating to me right

now is an interesting dichotomy of institutional investors and retail investors especially in the options markets and find largely the institutional money coming back into the market. they're back into the cyclical names and retail investors are cautious right now they're spooked by the correction of q4 and we see high put call rates and generally a very large retail component so they're not convinced the recovery will continue. >> you have questions of recession risk >> yes, we do, to some extent. what we have been talking about is typically an earnings recession. maybe a couple of quarters of that it's not at all surprising especially thinking about how much -- how big the earnings boost was last year because of the tax cuts that same type of boost can't happen this year and the comparisons are higher than they were and we probably maybe looking at maybe a two quarter earnings recession or at least flat earnings of q2 or q3 and as far as the generalized recession

-- >> -- already. >> to some extent it is and i also think there's optimism with regard to the resolution of the negotiation of tariffs with china. if the brexit is worst possible outcome, no deal, that could send us a recession and both things would probably have to happen for that to occur and we don't see that as a base case. >> you think brexit hurts the u.s. economic outlook as much as market sentiment >> it could. that's retail investors in the u.s. especially are underestimating the importance thinking about the financial jobs that have left and at risk. a lot of manufacturing especially in the auto sector that in the uk either already leaving or at risk i don't think u.s. investors see that or taking that into account as much as they see the situation in china. >> rick, quick final word just because we have seen these session lows or the pullback in equity markets come at the same time that 10-year yield hit the session high close to 2.7 again

what's driving that? >> you know, i continue to think it's market logistics and surprises. i think that you will see the markets get back on track as we kind of get over this little hump period that we have now but i would like everybody to pay very close attention next couple of weeks for italian 1 10-year yields other sovereigns are down year to date, the italian 10-year up almost 30 basis points month to date and one of the few markets in europe that's really -- its sovereign debt market is trading in sync with the data and worth paying attention to making the draghi mission that much more difficult. >> okay. randy and rick, thank you both very much. still to come here on "closing bell," a shipping giant and a european automaker warning about the impact of tariffs amid high level china trade talks.

look at shares of hormel foods today down but up 30% in the past year. we'll talk exclusively with the ceo about the quarter. reporting earnings this morning. that's next. reach out to the show on twitter, facebook or send us an e-mail "closing bell" will be right back we see breakthrough medicines getting to patients in record time. at emerson, when issues become inspiration, creating a better world isn't just a result, it's a responsibility. emerson. consider it solved.

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[ ding ] show me fish on youtube. say it and see it with the x1voice remote. from netflix, prime video,youtube and even movie tickets. just say get "dragon tickets". welcome back to the "closing bell." we have 41 minutes left to trade. down 0.6% on the dow s&p down the same amount all four indices down bang on 0.6%. >> bang on that's just for flat >> well no bang on 0.6 except it's not. anyway, moving on. >> not a bang on. shares of hormel foods trading lower after the company reported mixed earnings. hormel also disclosing that pepsico paid $465 million for the sport division, the parent of muscle milk joining us to discuss this, from the spam museum in minnesota,

hormel foods chairman and ceo jim snee welcome to see you. >> spam museum. >> thank you. >> wilfred didn't know there was a spam museum. >> of course there is. >> we have to visit. >> we would love to have you come visit us. we're right here at the epicenter of all things spam in austin, minnesota. >> yeah. we'll teach wilfred about that one day. talk to us about earnings and the reaction looks like the bottom number came in light. sales were light what are you hearing from investors they didn't like >> well, our first quarter earnings released this morning in line with expectations. we hit the bottom line number and as you said it might have been a little light but a really small miss our business for the quarter met our expectations we had three of the four segments deliver growth and the other thing that we did was reaffirmed the full-year guidance for the top and bottom line we feel really good about the year and it's the first quarter

we expect 2019 to shape up the way we have planned. >> some disappointment around what your comments were on the call about jenny-o turkey. are you seeing weak nns thness t segment? >> we have had weakness and impacted earlier in the year with some cold weather we also did have some -- a couple of product recalls. but we're very optimistic about the business segment we have got some great products in that portfolio that really resonate with consumers and seen great growth and optimistic for the long-term growth. >> jim, in refrigerator foods, seeing strength and are you seeing pricing power and opportunity to increase the margins in the year ahead there? >> well, wilfred, we have got so many great brands. that's really important when you start thinking about pricing power.

we have got 40 brands that are number one or number two in the categories in which they compete. we like to refer to them as our dream team of brands and of course, the captain of that team is spam. but we do have pricing power when it's appropriate and necessary, we know that we have the ability to take pricing. >> what about jiffy -- sorry, skip pi. >> i know a lot about this. >> seems like there's price competition where a lot of the big retailers promote private label peanut butter. how are you responding and how's it impacting that business >> again, it is about the brand strength and skip pi is an incredibly strong brand. we have actually seen really strong performance over the last 52 weeks we have seen our share grow. and more importantly, we have also done a lot of innovating so beyond just peanut butter in the jar we have enno investigated in peanut butter snacking, most

recently just launched skip pi pb&j minis so not only is the core business very sound we're really pleased with the work we are doing on the innovation side, as well. >> on cito sports you revealed the price you sold it to pepsi i guess recouping what you paid for it even though the sales were low was that a good exit for you >> it was. you know the business is a great business it is a great brand. we did everything that we said that we were going to do since we acquired the business but over time, you know, as we thought about our ability to control our destiny, you know, pepsi just has such strong distribution and they have been a great distribution partner for that business. it just really made sense that they're the best long-term owner of the business. and so, we were able to reach a transaction or a deal that was

good for both parties. and we're really excited to see where they take it you know, but for us it's just one of many strong brands as i said earlier you know 40 brands that are number one or two so we certainly have plenty of brands to be able to deliver growth over the long term. >> jim, wanted to ask about the impact of the trade fight between the u.s. and china, the u.s. and other countries is it still having an impact on pork exports or beef exports and pricing? what are you seeing? >> yeah. it's had a little bit of an impact on our pork exports which impacts our international division it's also had an impact on the steel and aluminum prices which is an input cost for our grocery products business. on any given year you have headwinds or tailwinds and something that you have to overcome and we still feel very confident that we're going to be able to overcome the impact of those tariffs.

you know in china, our business is doing very, very well. we talked about that on the call this morning how it's exceeding our expectations and we expect that to continue for the balance of the year >> and finally, since you are at the spam museum there, and your historical home in minnesota, there's an article that spam is making a comeback and trendy in washington, d.c. restaurants is that true what's driving that? >> well, we don't like to think it's making a comeback we don't think it ever went away but i would tell you we're just completed our fourth record -- fourth consecutive record year of spam sales and so we're seeing that domestically in the united states, around the globe. it is what you mentioned spam is showing up on some of the trendiest restaurants from coast to coast and, you know, like i said, we don't think it ever went out of style but we know that consumers are connecting with it in ways

they never have before and that's a great thing because an 81-year-old brand that's had 4 consecutive years of record growth, that speaks volume to the ability to drive our brands and business over the long term. >> jim, thanks for coming on "closing bell" to talk about it with us. >> well, great thank you. we'd love to have you visit in the spring, summer or fall. >> it seems fun, wilfred 14,000 square feet and seven galleries inside that museum. >> of spam. >> yes. >> seriously, like do you go to visit to look at tins of spam? >> it is sort of a historical thing. early 1900s. still ahead, shares of nike lower today after one of its sneakers fell apart in a college basketball game last night we'll discuss how that incident could impact nike's brand and sales. earnings season winds down, we'll look at what we have learned about the underlying fundamentals of market so far and where we could be headed next

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it's you andwow!bud, always. it's a hidden dragon world. ♪ show them what you got. ♪ because i knew you were trouble when you walked in ♪ welcome back to "closing bell." dow down walgreens boots, dow dupont and united health. more than 80% of s&p 500 companies reported earnings. the results offer clues for the fundamentals hey, bb. >> the good news is 2018

earnings up 23% thanks partly to the tax cuts, the best since 2010 here's the bad news. there's a deceleration going on that many are worried about, many are worried about an earnings recession and probably a down day for stocks. q4 earnings coming to a close. retailers left to report gains of 16% and the big issue is that earnings negative for the first quarter as you see here and heading in that direction for the second quarter. bear in mind estimates and they could change however, why are earnings decelerating first we have slower economic growth here in the u.s. but particularly abroad in europe and in china. remember, 40% of s&p earnings are abroad second, higher costs higher raw material costs to higher labor costs are hurting many companies and impacting profit margins and also sector specific issues. dedlin in oil at the end of the last year and profits plunge for

2019 and semiconductors, for example, facing intense competition and oversupply bottom line here, sara, a lot of issues for the market to deal with this year back to you. >> bob, thank you. time now for a news update with tyler matheson. >> thank you very much venezuelan president maduro ordered the vast border with brazil closed. just days before opposition leaders plan to bring in foreign humanitarian aid and made the announcement on state television surrounded by military commanders maduro said he's considering to shut down the border with colombia. a video said to show the aftermath of a blast in eastern syria was released by the syrian observatory for human rights a commander said back to back suicide car bombings in a market killed at least 14 people. and a deadly accident involving two tractor trailers and two vehicles shutting down a

portion of the massachusetts turnpike this morning. total of five people were taken to a local hospital. one of them died. and peter tork the guitarist for the monk ees died. his sister confirmed the death tork was diagnosed with a rare form of cancer about a decade ago. he was 77. and that is the news update at this hour. back to you all. >> never has power lunch been more aptly named. >> i'm eating buffalo chicken wings. very good. >> hmm and the pizza. >> we had it all. >> there we go tyler, thank you very much. >> thank you. still cotom here on "closing bell," the ipo race is on. lyft going public ahead of uber. the first mover advantage next. earnings season might be winding down but we have reports after the bell today including dropbox and speaking exclusively with the company's ceo after the

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welcome back to the "closing bell." there's the sector heat map. one positive sector. utilities. tells you all you need to know defensive tone today energy is the bottom performer with health care down more than 1% we are right close to the session lows with just 24 minutes left to trade. lyft looking to go public and reportedly launching the road show march 18th deirdre bosa has more. >> it's all happening. and it looks like we'll see lyft tap public markets first both uber and lyft filed on the same day in december according to reports, here's what the rest of the time line could look like for lyft first, we could see it make the

filing public as early as next week and we could see a road show in mid-march. and that would be for the company to pitch itself to investors and we could see shares trading on the nasdaq by the end of the month or in early april. now, of course, guys, there's no guarantee that any of this timing will hold a lot of that depends on what markets do between now and then and the process with the s.e.c. and lyft might want to get out in front of the uber and investors saying uber needs more time to prepare and some analysts argue it might not matter that much each company is pitching a different story to investors lyft is the more pure play in ride sharing and focused on north america. uber, much bigger, much more international play that is also building up its massive food delivery business and a bunch of moon shots including flying

vehicles and valuations reflect those differents they could go public at much higher numbers lyft rumored to be going public around between 20 and 25 billion and uber, of course, as high as $120 billion guys, back to you. >> d, thank you very much for that we'll continue the discussion now. joining us to discuss whether these two ipos will be successful kathleen smith and mike isac of "the new york times. good afternoon to you both kathleen, if i start with you, does whatever the first one of these two lists at decide the earnings multiple, the price multiple for the second? >> certainly the valuation that will be placed on lyft will factor in how investors look at uber when it goes public so, it is helpful i think to have lyft come first but i would also say it's not just the battle between -- in

timing between lyft and uber, but also, from an ipo market stand point it is i think lyft may actually be hitting the sweet spot of the ipo market as we look at it and i can describe that further if you would like. >> go for it why now? >> sure. okay the ipo market because 2018 finished up on such a very weak note the ipo's market pretty much shut down in november and december and had a low volume of issuance to date in 2019 so investors have been risk averse coming to ipos now our ipo index, for example, if you look at how it is trading, you'll see that the basket of already public companies has improved dramatically, the trading has been very strong and that is setting the stage for these new ipo has are about to come out, the large ones, ice breakers we'll call them and lyft looks like it will be

one of the icebreakers that should give investors our studies show ipo us out of weak periods are some of the best performering for investors lyft is one. >> mike, i want your thoughts here, mike, start doing reporting on what the road show is like, what sort of metrics will you be looking for and what information do you want to see >> yeah, sure. well, i think the most important point for both liftd ayft and u where the losses will be and shoring them up. uber can spread out between food delivery they have uber freight that's really working very well for them and a bunch of different businesses unlike lift which is basically entirely a ride hailing business that the point so i think both have to just set expectations around losses and my curiosity and really has one

main value proposition at this point and if they can sell investors on that pure ride hailing play versus uber's multiple lines of business going on >> mike, is there still a lot of appetite out there for what will be roughly, you know, 100 billion's worth of market capital or so or not far from that of loss making companies? they're five or six years old, still making huge losses is there still that demand from long-time tech investors or the pullbacks of stocks like that, does it scare people off >> it was funny because back when travis kalanick was ceo he had no real intentions of taking the company public and now at a point where lyft is spending a lot of money to still acquire drivers and sort of has to go public at some point uber has a lot of cash in the

bank still so they're still -- they want to get into a market with appetite before things go south, before those potential recession. so now i think it's a lot dependent on the story itself and i think uber in particular if they can say, look, we are not just a pure ride hailing play but more like an amazon and amazon has famously trained the street to expect the losses and have thin margins, in anticipation for longer term bigger bets so it's a lot of pressure to convince people that that's the same sort of move, the same sort of company, but i don't know if anyone can do it uber probably can. >> kathleen, you have a good read on the ipo pipeline in general. who else is going to be watching the reception to lyft and open the floodgates for next? >> we think lyft will be one of the first ones

levi's strauss is on the schedule, as well. lite makes human resource software that one is going to be going public at the same time. we expect slack, too and there's a very long list i think that's a very important thing to consider as lyft comes early. it's a benefit to lyft because all of a sudden the floodgates are going to open for so many. we count about 150 private companys that are valued at over 700 billion and all trying to target ipos in 2019. if these companies get done, the ipo market will be unprecedented and the dollars it's raised, much more than in the internet bubble just a huge amount and all of a sudden maybe there's just too much supply there. the ipo market is not filled with retail investors of '99, 2000 it is mostly institutional these investors are a lot more valuation sensitive.

>> kathleen, mike, thank you both very much. >> thanks for having me. still to come here on "closing bell," we'll dive into the latest trade talks of china and how tariffs could impact global business. later, shares of ceasars up nearly 40% and will report with hpe, roku and dropbox all after the bell stay with us 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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trade talks between the u.s. and china continue today cnbc's kayla tausche has the latest from washington. >> reporter: talks expected to go into the evening and go through tomorrow the treasury secretary, the vice premier of china shuffling back and forth across 17th street here in washington between the eisenhower building and the office of the u.s. trade representative what they're discussing we have learned from sources are six memorandums of understanding on the structural issues that the u.s. has been trying to get at throughout the course of the year the u.s. proposed a separate ten-item to-do list for china, short-term deliverables that the u.s. wants to see china deliver on in the next month or so before the two presidents meet to make sure that china is

committed to doing the deal and unclear which of those if any china will agree to and bloomberg reporting that china tabled an offer for additional $30 billion of u.s. agricultural products just a few minutes ago, sean hannity when's in the president's inner circle sent out a tweet essentially touting that story and new reported offer from china signaling that that was -- that would suffice for the united states and i asked the white house if that was true and signal the president's support, they said no we'll see where it lands tomorrow and whether president trump will receive the vice premier in the oval office tomorrow >> kayla, it sounds like such momentum and progress. the regular meetings in china or washington all positive steps but to actually get over the line, i mean, how far away or realistic is that? >> reporter: it depends on where the line moves to, wilf.

if you say that this deal would need to be exactly what the administration set out to do over a year ago when this began, then that that would take a significantly longer amount of time if the line is now china will make a massive pledge to buy u.s. goods which is what president trump discussed with president xi on the sidelines of the g20 several months ago, plus some commitments to make structural reforms going forward, with some sort of enforcement mechanism down the road that would hold china to account that is something that might be more realistic and seems to be the outline of what we are expecting at this point. >> so next friday is march 1st is that no longer a hard deadline is that how wall street should view that? >> reporter: it depends on who you ask. ambassador lighthizer said it is a hard deadline for him. the president has there's three times in the last week said it's not a magical date and willing to be flexible if talks are going well i talked to attorneys in town

saying if they move that deadline they to do it by tuesday so that importers can make decisions about where to send goods and how many goods to buy if they're going to make any changes to their ordering behavior because of whatever will happen on march 1st so we'll need to get a decision soon on what the administration plan to do so there's not a ton of disruption in the market. >> kayla, thank you very much. now, barclays said it set aside millions of dollars to deal with brexit we'll explain when "closing bell" returns. ♪ ♪

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higher pricing, traffic lower and there's, you know, generally fast casual or restaurant sales have been better but there are cost pressures that these companies deal with. >> up 4.7% for cheesecake factory. barclays with numbers this morning. full year revenue 2.1 billion back into the black for 2018 as a whole. the win here for the q4 numbers is twofold the trading numbers were pretty good, essentially flat year over year not just a lot better than most of the european peers with trading but right up there with the top u.s. investment banks and roe with one offs up above 8% again, the target 9% and 10% next year. those two ears are a bug bear putting pressure on them this quarter at least a victory for pushing back but needs to do

this another couple of quarters to keep the critics at bay. >> i wonder how much of brexit is. >> yeah. as most of the uk banks did, 100% looking at the uk and bank environment rate's been down because of that and domestic retail banks a big issue share prices up 4% before the open and did lose the steam in the day and ended flat and again that's i think thoughts on whether he can continue that performance in trading which was great last quarter up next, we will have the closing countdown. five minutes left of trade. rngsafter the bell, dropbox losing bell" will be right back

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because you have e*trade, who's tech makes life easier by automatically adding technical patterns on charts and helping you understand what they mean. don't get mad. get e*trade's simplified technical analysis. welcome back to the "closing bell." two minutes left of trade. you can see an hour ago the lows of the session down about 0.7% nice little bit of buying in 20 minutes of the day down only 0.4% 10-year for you because those lows of the session recently did come at the high of the session for yields up to about 2.7% and pulled back a little bit an enthat's sort of negative correlation has held quite nicely today remarkable returns all down 0.4% and the sectors

today shows that defensive trade, only really utilities that is positive the likes of energy, health care, materials, financials all lower. a few other sectors coming into positive territory and utilities up meaningfully. ing in down 1.5% bring in bob pisani. the week to date performance, the markets lower now week to date here in the u.s germany up 1%. >> i think the concern here is the u.s. economic numbers. philly fed lousy. awful. we know about the retail sales we talked about that industrial production last week. this is a string of u.s. economic numbers that are disappointing. europe is flat to negative china's slower if the u.s. slows down notingly in a real bear case scenario you could throw the global economy into a recession that could be the bear case scenario potentially a real one down the

road that is not my base case and people are concerned about that and i think that's why we were lower today and note the energy stocks lower. >> bob, great stuff. thank you very much for that at the close, lower by 0.4% pretty much for all four indices and little bit off the lows about half an hour ago that does it for the first hour of "closing bell." sara, back to you. ♪ seeing improvement there in the close. welcome to "closing bell." i'm sara eisen mike santoli is off this week. let's look at how we finished the day on wall street lower across the board and certainly off session lows nothing too dramatic .4% decline. the dow lower by 101

s&p 500 down about a third of 1% you saw groups like staples real estate and technology turning green in the last few minutes of trading. microsoft was strong all day and some of those tech names did hold up. salesforce another strong one and stocks lower for the week. let's see what happens fortomorw today, weaker than expected economic data. existing home sales was one of them falling to the lowest level in three years and we are about to get earnings of hewlett-packard, roku and other names we'll share with you and we have an exclusive interview with dropbox drew houston. a lot to look forward to first joining us is stephanie link back, global research director and portfolio manager are you concerned about some of the economic data points that we are getting today?

philly fed, existing home sales, really weak. >> it was miserable today. the data was very disapointing but not surprising given what we just went through in the month of december, given that we are expecting to go from 3.5% gdp growth last year to something like 2%, 2.5% growth this year and what happens when you have trade and a government shutdown i kind of view the data that we are getting from december/january very disappointing and i'll say the one highlight is initial claims and a little bit more leading economic indicator-like and very solid and the nahb housing index yesterday, two days ago, i was actually very encouraged because that's february data and the forward looking data from that was very positive. >> the services pmi was good. >> yes. >> manufacturing pmi is 17-month low, still above 50. 53.7 and sets it aside from the rest of the developed world but

suggest it's really following that macro global slowdown of elsewhere. >> no doubt about i. i'm glad it's still above 50 last month when we got the ism report, we had a very large drop not only in the overall number but the new orders number fell 11 points and that was like the first kind of shock that the u.s. wasn't going to be immune to what's going on with the global macro picture you know, we have been talking about this for 12 to 16 months about the global growth slowing. china has been slowing well before the trade issues happened so i kind of feel like the one thing that might bail us out here is our fed pulling back, the global central bankers pulling back which appears to be the kiss and if we can start to see green chutes in china from the stimulus efforts and that might bail us out to kind of soft land. >> what do you make of the market action today? a pause off a really strong run? >> yeah. i mean, up 19% from the december

lows it was pretty much even in december didn't feel like it but it was led by the cyclical stocks, stocks hit hardest and perhaps maybe that is anticipation of the china data helping out the rest of the global markets eventually at some point but i think today was an excuse to sell, sell the winners. and oh by the way, i mean, we know that there's the big cagney conference you would agree you're following it closely. >> good news. >> good news, actually right. >> a lot of companies ableto pass on higher prices. >> absolutely. >> all right we have a news alert on pinterest. leslie picker with the story. >> hey, sara pinterest reportedly filed confidentially for an ipo with the s.e.c. according to headlines by "the wall street journal. they're citing people familiar with the matter but this would put pinterest in line with uber, lyft, slack, a multitude of

unicorning filing for ipos according to the journal, it's led by goldman sachs and jpmorgan and eyeing a june -- late june listing at a valuation of about $12 billion and in line with where they were valued at privately. cnbc is reaching out to sources as well as the company for comment on this news but, again, just the news of these confidential filings for ipos keeps on trickling in, guys. >> thank you forthat stephanie, clearly, we were talking before the break about how the lyft versus uber rush to be the first pinterest is a relatively new tech company that's rushing to list do you think there is enough appetite for all of the guys and rushing to be the first one and jump on this january bounce back of markets >> no doubt that the confidence has gotten better. people feel better investors willing to take on more risk and no doubt to

rushing to get out and be the first. i think there's room for plenty of them but it all depends on the valuations all is going to depend on the balance sheets, depends on execution over the long run. but i think that these are very exciting companies, technologies and i think that there is an interest for the next wave of technology companies and so that's kind of the way i view it. >> if you ever planned a wedding or decorated a baby nursery, you have been on pinterest. >> i have not done either. we have an earnings report on dropbox with deirdre bosa. >> a beat on the top and bottom lines. revenue at 375.9 million up 23% year over year. adjusted eps coming in at 10 cents and that is 2 cents above what the street was expecting. i do want to note on a sequential basis revenue growth is lowing but other metrics that

investors care a lot about climbing, paying users reached 12.7 million and average revenue per user increased to $119.61 and better than $118.48 that was forecast guidance comes out on the call so we'll be listening to that and as you know talking to drew houston very shortly back over to you. >> thank you for that. drew houston the ceo coming up live and exclusive here on "closing bell. you don't want to miss that in a few minute's time. back to the macro discussion u.s. home sales hitting the lowest level in three years in january. i guess we sort of summarized the factors already. stephanie, does that make you want to look to the structural

growth companies and still companies out there that can offer you that >> if you see 2%, 2.5% gdp growth in the economy then certainly the secular growth stocks will do well, kind of a garpi names do well and same time the sick lackal stocks are well below where their peaks, prior peaks were and pick and choose and have a barbell strategy and talked about before the nhab index was so much more impressive to me when future sales growth and expectations rose 5 points and the economy -- >> buyer of homebuilders >> not homebuilders but i think places to own like lowe's and home depot, stanley black & decker and buy and trade around the home builders because that's what they tend to be and structural other longer term stories make sense, as well. i mean, the economist at the nahb basically said that it was because of lower interest rates and more confidence is the

reason why they saw a better than expected number so i think that that's a february data point we're excited about. and only one month worth of data and i think it's encouraging. >> notably, even with that existing number, home furnishings went up today. >> exactly they're still down so much from their highs. >> battered. >> yeah. >> we have another earnings alert. hue let packard enterprise hi, josh. >> sara, hpe reporting eps of 42 cents versus expectations of 35 cents. revenue of 7.55 billion. street at 7.6 billion. for q2 eps hpe saying the look between 34 and 38 cents. street at 36 cents they raised the full-year outlooking looking for $1.56 hybrid i.t. including servers and storage, $6 billion.

intelligent edge revenue, 686 million. financial services at 919 million. conference call at 5:00 p.m. eastern. back to you. >> josh, thanks very much for that nice jump from the stock up 4% the beat there coming in the financial services line on the revenue aspect but it's an eps beat more than a revenue beat and strong delivery of a company that's stepped up already 20% or so this year. >> up 22% this year. i think most people were thinking the forward guidance would not be raised because of currency, because of competition. tough comparisons. del is becoming more of a formidable competitor. to raise guidance is actually pretty impressive. like to see the free cash flow number and what i think the stock trades at and not paying a lot for a company consistently delivered since the block. >> it is up a lot and gone nowhere in the last year. >> yeah, no. 22% jump is a lot of the technology companies or

companies in general it is hard to keep up with. you're up 20%. it is encouraging to see the reaction positive and does speak to - >> guidance range of 1.4 to 1.6 billion. >> that's better than expected. >> how are the tech holdings at the moment what's the top tech pick for you at the moment? >> welsh i have been buying -- i have been buying the semi cap equipment companies. they're still down quite a bit down 20% to 30% and still trade at attractive valuations and enough skepticism that we haven't seen and not sure if the cycle turned or not or the last of the drops in earnings i think, though, this research buying back a lot of stock one of a few to deliver and numbers went up following their report i also like zilink and up so much and on a pullback i'd more likely be inclined to add to that one. >> fang has not had a good run

here another down day for facebook, amazon, netflix. even in some of the up days, big up days we have seen fang lagged behind. >> a big rotation into kind of more value tech or secular growth tech like saels salesforce.com. >> microsoft, too. >> service now with a nice recovery the semiconductors, as well. maybe taking a pause that said, on the margin, i've been a buyer of alphabet i was neutral all year last year and i think that it has lagged an the valuation does make a lot of sense but you have to be patient. head loons every day come at you and hard to outperform when that's the case. >> the macro point, are you putting money to work overseas data is worse and the valuation is more -- >> em is definitely attractive, right? on valuation alone trading at 11 times forward historical average is 12, 13 times and i do think that

earnings have come down enough and looking for the street 7% earnings growth but that earnings growth seems to be a trough earnings coming down for 12 months by 14% in em so now you look at a trough and believe the multiple at 11 times is doable, real and believe in it and you have to believe that china and the stimulus to start to see some green chutes. i think we are seeing some green chutes but we have to wait and see to get really aggressive. >> currency is going up, a sign things are looking better. >> absolutely. >> tomorrow a lot of fed news. we have number of fed speakers including new york fed president williams the fed is clearly the market's friend right now how much of this news sort of rose-colored glasses view of the markets is due to the fed pivot? >> i think a lot of it is and i think due to maybe progress on trade. kind of evened out in my opinion. here's the thing the fed wasn't as dovish as people thought yesterday and a

little bit about today digesting that and the ecb seemed less dovish than we would have. >> agreed. >> i have to tell you guys i don't think they have any choice right? look at europe and the growth deceleration. >> manufacturing overnight again. >> but they were a little bit more hawkish than people expected and comes down to the fact that october we get a change in leader and they don't want to hamstring anyone coming in before and say he has to ease regardless. >> exactly right however, the numbers are the numbers and germany posted a .6 fourth quarter gdp number and the reality is what it is and keeps the ecb on hold and i think the same thing with the fed. the numbers are going to come in kind of crummy back ward looking and tainted by the government shutdown and the market volatility, i get that. the data's not materially better from here. i will get better eventually in the second half of the year and digest that and the fed is on hold. we have a leadership change

at zillow. hey, leslie. >> that's right. a return of ceo rich barton to the post at zillow and founded the company in 2005 and led them as ceo until about 2010 when he was succeeded by spencer rascoff remaining on the board as ceo. this announcement coincided with the company's earnings no clear explanation as to why they're making the management change but you can see there shares down 5.8% back over to you >> okay. leslie, thank you for that thank you, also, to stephanie link for joining us today. up next on the show, nike shares under pressure today after one of its basketball shoes worn by college basketball's biggest stars ripped open during a national televised game we'll discuss whether it's a nightmare for investors and impacts future deals for nike. former indiana governor mitch daniels weighs in on calls

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nike selling out of its new

colin kaepernick jersey less than 12 hours after it was released nike saying we believe colin kaepernick is one of the most inspirational athletes of this generation who has leveraged the power of sport to help move the world forward. he is not actually playing and the release of the jersey after the settlement with the nfl paying out big bucks on that collusion case. >> do we know how many sold snout. >> no, not exactly it is interesting that they are continuing the deal. >> hugely interesting. we have seen, of course, in general it help sales and store sale down who hadn't included nike. >> in colorado i think. >> meantime nike making headlines with an epic fail of a signature product. duke zion williamson suffered an injury after the game tore in half nike calling this an isolated occurrence but says they're working to identify the issue.

sara, he's 6'7". >> yes. >> 280 pounds. >> could have a big reason why it broke don't think it matters too much in terms of sales and biggest question, covering this company, know how important basketball stars are to the sneaker business is who does he sign with when he goes pro this year? he is wearing nike because duke is a nike team and that's a big shoe deal and if it gives adidas or under armour a leg up that could be a material game changer for the companies. >> companies probably want to pay double for him than you would have done to make more of this. >> true. although i would say nike has a great relationship with the athletes and sure it's working behind the scenes to fix this. >> we should say, as well, jiri but nothing too serious. the shoe torn apart there. jan niffin joins us and drew

rosenhouse to discuss what it means drew, i'll start with you. is this the kind of thing you expect would see a sport star or many want to leave the brand >> no. i don't think anyone's going the leave the brand. this really looks like a fluke incident i've been a sports agent for 31 years and i have never seen anything like this so i don't think this is going to impact athletes in terms of leaving nike at all. they're getting a lot of bad publicity nike is. but they can rebound quickly designing zion to a huge contract. >> that's sort of what i wanted to ask you, drew it seems to me he is the biggest star right now is this like a lebron james type contract who for whichever sneaker company gets him >> well, number one, even though i'm a graduate of duke law school, i would recommend to zion that he stop playing. this is a scare. don't chance it anymore.

he's a superstar obviously, he'll be the first overall pick in the nba draft. and i think nike's the favorite. they just have more resources than anybody else and they have nevin more incentive now to get something done so i think zion should breathe a sigh of relief this isn't a serious injury and maybe miss the rest of the season it is painful for me to say that and impact other guys, other top picks that might be afraid to continue to play for free and miss out on two would be millions and millions of dollars. >> jan, what's consumers thinking about this? because it's seemingly a one off, will they give nike a pass? >> well, i think temporarily it will be a lot of jokes about it, just like puma's tweet and i don't think it means much to nike going forward the consumer won't walk away because of this strange incident they got a ltd. of press over

there. long term it's probably just solidifies nike's brand in the minds of the consumer. i don't think anybody says, gee, i won't wear nike because this guy blew out of a sneaker. it is just not something i think most consumers are worried about and i think they watch this saying, okay, thank god he didn't get hurt and a consumer might have been more concerned after that but now it's just going to be kind of exciting to see what happens and does he come back and there will be a lot of press around it. i don't think this is a negative for nike for any length of time. maybe today. but, you know, as far as buying the stock, i think nike's a great company. it's a great brand i don't think this changes it one bit and probably improves the chances of signing him >> talk about how important, jan -- i mean, i saw this firsthand traveling with steph curry and how important the basketball stars are in particular to the sneaker business they have been global appeal and where nike is in terms of its

competitors within basketball shoes. >> well, there's never been anyone like michael jordan or lebron james as far as selling basketball shoes but this guy could be very much like those two and that is what sells basketball shoes so yes, they need to sign him up as soon as he's available to be signed up and he'll probably be fabulous but even if he turns out not to be as fabulous as we think he will be he's a guy to sign up the first day they can because it builds the business and gets so much press. >> drew, there's questions on social media, is there any way that zion would be entitled to compensation from nike for the injury >> it's -- if he decided to sue them, i guess that's a potential issue but you bring up a good point right now. college athletes don't get paid. i guess the cheapest ticket was

over $2,000 to attend the duke/north carolina game last night and none of the players see any revenue from it. maybe this will open up everyone's eyes in the ncaa that revenue producing athletes like basketball and football, these guys should be paid. why shouldn't zion sign a contract with nike now i don't think it's fair at all i don't think guys should have to play college sports if they want to go directly into the nba or nfl they should be allowed to do that. this is america. guys should be able to go earn a living if they want to and not be forced to go to college >> drew and jan, we'll leave it there. thank you both very much. >>thank you. >> i was pleased that the cutoff is 6'7" and 280 pounds and, of course, running with true power and purpose. 6'5" so -- and when i go running it is a little bit softer and slower without that kind of powerful change in direction anyway, there we go.

>> you have the height. private interest for attention for under armour "the wall street journal report"ing of an investment of a msnbc anchor and the possible influence in the company a person familiar with the situation telling cnbc that the relationship had no impact on under armour business, no company funds involved the company would not comment on the status of the inquiry. shares have since rebounded. so it was just another sort of question out there today around under armour, kevin plank. remember after that report from the journal came out about the policy toward charging strip clubs which they later reversed. that's why he brought in patrick frisk, right to sort of bring under armour to the next leg of maturity with this business and they have been really talking about how he is in power to do that and investors happy to do that

a story like this probably doesn't help as they're starting to make progress. >> only briefly hurt the stock prices up by the end of the day. up next, find out which automotorcyclers took home the top ratings in the auto scorecard. dropbox ceo drew houston breaks down the company's earnings exclusively here on cnbc before speaking to the analysts on the conference call. ? you can grow your retirement savings with pacific life and create the future that's most meaningful to you. which means you can retire, without retiring from life. having the flexibility to retire on your terms. that's the power of pacific. ask your financial professional about pacific life today. itin 30,000 precision parts. or it isn't. it's inspected by mercedes-benz factory-trained technicians.

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first solar and roku leslie >> really the tale of two earnings reports here. first solar. missing on both the top and bottom line and cutting its guidance on the eps side, they reported 49 cents compared to 64 that the street was expecting revenue side they reported $691 million compared to with $804 million that analysts expected of course, cut that 2019 guidance for gross margins lowering them by about 50 basis points due to what they say are going to be increases in ramp costs there. you can see shares down more than 4% in after hours trading roku kind of an opposite picture here with those shares soaring in after hours trading up about 5.4% for them it was a beat on top and bottom line. on bottom line, they reported 5 cents compared with 3 that analysts expected. and on the top line, $276 million versus $272 million that

analysts expected. they said that their ability to monetize video impressions doubled and said about 1 of every 4 smart tvs sold in the u.s. last year were roku tvs. >> thank you the other thing to look for in the release i can't see on the face of it is whether to announce a partner with comcast our parent they did with sky in the uk late last year and always in the works before the comcast takeover of sky and successful so you can have those sky services throw roku box -- >> think it will expand? >> wondering whether they would and doesn't seem like in the headline release maybe on the call. interesting to keep an eye on. comcast parent company of cnbc. consumer reports out with the list of top auto picks phil lebeau with the big winners and losers. >> hey, wilf most interesting part of this report coming out every year from "consumer reports" is what

the organization has to say about the tesla model 3. the importance here is that consumer reports recommended the tesla model 3 last year. they have pulled that recommendation in part due to concerns about reliability with certain things such as the trim not staying attached or breaking off on the vehicle oar fractures in the windows on some of the vehicles the ranking for the brand overall falling 11 spots to number 19 out of 33 auto brands. here's jake fisher explaining what they have heard back from tesla owners >> when we look at tesla, a lot of the issues are electronics so there's some issues in terms of replacing the screens, for instance, on the navigation screen but we see other issues in terms of the trim breaking, with the tesla model 3 we have heard some issues with the glass actually >> we reached out to tesla for a comment on this report

it says this new data from consumer reports comes from their annual owner satisfaction su vay which runs from july through september, so the vast majority of these issues have already been corrected through design and manufacturing improvements and we are already seeing a significant improvement in our field data. still take a look at shares of tesla after the report today, the stock lower and continued to move lower as my colleague reported that there are headaches for people trying to get refunds for tesla vehicles and not a good day for tesla overall from "consumer reports," top three brands, subaru, first time number one in this report number three is porsche and take a look at fiat chrysler. fiat dead last we reached out for a comment saying fiat brand sales are limited. it is a small sample size.

they stand behind the brand but they believe the report is skewed because of the small sample size in this country. back to you. >> phil lebeau, thank you. >> subaru, genesis and porsche interesting. time now for a news update with leslie picker again. >> hey everybody, empire actor jussie smollett leaving court after a judge set his bond at $100,000 smollett said little at the hearing except to state his name chicago's police superintendent said he staged a racist anti-gay attack on himself because he was unhappy with the salary and wanted to promote his career. federal judge overseeing the criminal case of roger stone tightened a gag order and threatened him with jail if he revoked it the pennsylvania supreme court denied ex-penn state president

spanier's appeal challenging the conviction the decision could result in an eventual jail time for spanier. one of the biggest stars of ufc stepping away from the sport. george st. pierre saying he is retiring he put the sport on the map in canada and helped fuel the ufc's worldwide expansion. at the news conference he said he was proud of the positive impact he had on the sport that's the news update at this hour back over to you guys. >> leslie, thank you. up next, an exclusive interview with dropbox c eo drew houston and take on the growth strategy and the cloud company battling the competitors of microsoft and amazon a company just out with results, the stock is up. every curve, every innovation, levery feeling, a product of mastery. lease the 2019 es 350 for $399 a month

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shares of dropbox trading lower despite an earnings beat moments ago. >> deirdre bosa with drew houston for more take it away >> hey, thank you very much, guys drew, thank you for being with us today congratulations, a good quarter. let's talk about the enterprise traction you have updated the number of business teams, business customers, since the s-1 nearly a year ago going public. 300,000. now 400,000. i know you don't break out by

skew but can you give us color on the business you're capturing and targeting a year ahead >> businesses of all shapes and sizes and proud of the scale where we are operating 400,000 is a big number by any standard and reaching businesses is people use dropbox at home, bring it into work and we have a self serve model driving adoption and revenue so -- and then as those customers become bigger then they're more traditional enterprise deploy. s. >> who are you tar getting i saw an analyst said you were taking big customers away from box. >> well, so we get, again, customers of all shapes and sizes and a strength of the model because we have over half a billion registered dropbox users and take it into millions of different businesses and now 400,000 which are paying customers and so it's a really efficient model because we are

able to reach a lot of those business customers without having to have as large of a sales team. >> is there a segment you go after or gravitating towards dropbox? >> well, we often find it's both small businesses and team deployments and larger companies and buying a 10-seat team in a large company and then 10 is 100, 1,000 people. so that bottom up adoption and viral expansion is a powerful lever of growth for us. >> are you taking business from other companies like box >> we are, absolutely. >> okay. let's also talk about the acquisition. hello sign are you looking for more deals is that a theme to expect in the year ahead >> yes so m a& an is a lever to grow th company, that's true of the early days and especially now as a public company in the scale with the balance sheet to grow the business that way and

hellosign is a great company. >> tell me how hellosign helps you guys grow your business and differentiate you across the crowded and competitive landscape. >> increasing the opportunity because it's a use case that many of the customers have and we wanted to take hellosign's product and existing business, which is really already successful and combine it with the platform and the scale to accelerate the growth and a great example of accelerate our entry into a new market and leverage the power of our platform distribution. >> last question for you you're now one year in as a public company we have a whole other crop of ipos this year any advice to give to some of the up and coming public ceos? >> we had a strong first year, ended with a strong quarter. operating a big scale. about $1.4 billion in revenue.

healthy growth in revenue. my advice to the next crop of founders and ceos going public is that you win or lose your ipo years before you go on the road. and so, we -- our thinking is that we know the report card as a public company is going to be about the fundamentals and we have spent last couple of years laying the tracks to make sure that we have a strong foundation, sustainable business and we have built a really great team to help get -- help us operate really effectively as a public company. >> thank you very much, drew back over to you guys. >> d., great stuff our thanks to drew houston of dropbox. still to come, we will be talking about plastic which is on our radar because of a big decision, potential decision between goldman sachs and apple. and former starbucks ceo howard schultz on the presidential fact finding.

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onmillionth order.r. ♪ there goes our first big order. ♪ 44, 45, 46... how many of these did they order? ooh, that's hot. ♪ you know, we could sell these. nah. ♪ we don't bake. ♪ opportunity. what we deliver by delivering. welcome back to the "closing bell." here are stories on the radar today. apple and goldman sachs teaming up the pilot a new phone sync'd credit card to test with their own employees in the coming weeks according to a source at the bank the move also marks new territory of both companies, particularly apple looking to

boost the service revenue. sara, i'm more interested in this from the goldman side of things this is a much bigger step, a credit card and therefore processing payments. which they haven't of course done yet and seeing the different steps, people say why didn't they just buy a bank and a running theme through all of the forays is they don't want legacy costs and brick and mortar costs. >> do stuff like this? >> like this. >> on their own. >> which is slow and growing fast. >> how is this different than apple pay? only goldman >> based on existing credit cards and something to team up to develop with someone that didn't have one yet and who knows how they split the margin from it but i imagine both share it more. goldman is an interesting sweet spot with a banking license and you could point to square or paypal but goldman with the

license and doing this slowly but surely opposed to jumping ahead and for goldman sachs, they're very well-known for main street but they're -- sorry. wall street. not main street. this is a partnership of a brand that's very well-known for the consumer and a premium level and what goldman sachs wants to maintain. >> a lot of access to users through iphones. >> a final point rolling it out with employees which is a source confirmed because they haven't done this before and still a lot of areas to feel out as to exactly where it falls. i'm watching this story, speaking of reaching a younger consumer demographic more college students might be able to do a load of laundry pressing a button on the phones. tide brand hoping to expand the cleaning stores for more than 2,000 locations by the end of the 2020 according to the company, tide already has several hundred stores, mostly aimed at college campuses with 24-hour laundry

dropoff and pick up through the tide phone app i think it's brilliant because first of all it brings a whole younger group of consumers to a brand like tide and we know that they have different relationships with our parent's brands but also, a lot of people still rely on going to the laundromat, shared laundry this is a really convenient way to have it picked up and brought home true story one time during college i went to pick up my laundry from a laundromat, 32 pounds left in the back of the cab. never seen again. >> you left it in the back >> sad story convenient. >> the whole done laundry done and delivered is not so common back home. i like it. >> a convenience. >> yes moving on -- >> is there laundry in the uk? >> up next, we'll ask former governor of indiana mitch daniels of propols f wltsaoreah tax. back in a couple

the latest data shows u.s. national debt reaching $22 trillion and counting. >> joining us now is an outspoken critic of unchecked government spending and the rising debt, mitch daniels, former governor of indiana thanks very much for joining us, governor. >> p gogood to be here. >> what's the best way to solve this, drastically cutting spending on increasing taxes >> well, we've let the thing, the problem run so long now, wilfred, that ultimately there will be some of both it's not the best way, the only way to approach this problem is,

i think, all honest observers have known for a long time is to reform the auto pilot programs, the so-called entitlement programs which along with debt will soon amounti to well over two-thirds of the entire budget. if there was ever a time when it could be approached without changing those programs in a material way, that's long gone so no formula that omits fundamental change in social security, medicare, medicaid and government pensions will suffice. >> i get it, and this is a big part of your pal, howard schultz's whole pitch when he talks about whether he's going to run, it's one of his big concerns i'm wondering if the public will be on board with it, if they're going to vote because of the high debt. what we just saw this past year is that we got more than a trillion dollars in tax cuts, drove up deficits back to a trillion dollars it's pretty much okay.

the market doesn't seem worried about it there's no crisis in america >> there was no crisis in 1928 either, but then there was no your point is a good one, though, sara clearly there's no political upside for either party, and both parties by now are culpable of having let this problem get bigger the reason that one could hope that the american public might come to a different point of view is if they could come to understand, if someone will help them to understand, on a subject on which they have been misled now for generations, that we have to save the safety net. if you care about the vulnerability of many older people, if you care about low income people, people who need the protection of medicare, then we simply have to change these programs or they're going to implode and no one is going to get hurt worse than those who rely on them most.

you can start by means testing these programs there's just no reason to send social security checks to the wealthiest people in america that alone won't fix the problem, but it might begin to open eyes about the common sense ways, and there are several, in which we could put these on a sustainable track and not penalize the young i guess the last thing i'll say is i don't know anyone who knowingly wants to plunder their children, grandchildren or someone else's, no politician has correctly informed them that that's exactly what we're doing. >> governor, you said it was two-sided, though, that it would involve some kind of increase in taxes. clearly a lot of people talking about increasing tax on the wealthy. what do you think of that and what would be the best way to do it >> i'll leave the battle about some of these at least most recent proposals to the ideologues of left and right i'll just say that the ones i'm

reading about don't have anything to do with fixing the problem we just talked about, the fundamental threat to this nation's future, at least of domestic origin. i'll just simply say that the proposals on offer are mathematically observed, there's not enough money there to pay for the spending that is coupled with them. for that reason i don't think they have much to recommend. you know, there's a big irony here, wilfred, that the proponents of these massive new spending programs allegedly to be financed through taxation on the wealthy, first of all, the math doesn't work. there's just not enough money there. but on top of that, if they haven't noticed, those folks are the ones who need rich people to get a whole lot richer in california where 1% are paying half or more of the income taxes, new york city where former mayor bloomberg

calculates that 5,000 people pay half of all the taxes, these folks love to criticize wealthy people, but they really need them to make lots of money, because that's where in the most progressive tax system in the oecd, that's where the money is coming from. >> governor, sadly we're out of time, we'll have to leave it there, but thank you for joining us. >> thank you. >> former indiana governor, mitch daniels. up next, we will get another check on the stocks making big news in trading after hours. ♪ tear up ticket. find the cat. [ meowing ] mittens! make it rain. [ cheering ] [ singing opera ] change the music. ♪ when i move, you move beep. beep. use the rocket. [ sputtering ] if only everything in life listened to you like your new a-class. hey mercedes. [mercedes-benz voice assistant] how can i help you? change color. make it cooler. play my music. the a-class... ♪

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servicenow works for you. here's a rapid recap of the headlines making news after hours. z zillow announcing a c suite change a co-founder will be replaced by a fellow co-founder. shares have come back. they were down sharply on the news. hbe trading higher on the earnings they saw no material impact from the government shutdown. it was up 22% and is up another 3% in the after-hours. shares of roku climbing.

it has 27.1 million active accounts that is up 4% after hours. >> tomorrow the focus will be fed speak. we've got a ton of fed speakers at this monetary policy conference as well as a monetary policy report as the fed pivot continues to drive overall a much better tone in the markets even though we are down for the week. >> that does it for "closing bell." >> "fast money" begins right now. "fast money" starts right now. live from the nasdaq marketed site overlooking new york city's times square, i'm melissa lee. tonight on "fast" the biotech beatdown that group of stocks on track for its worst week in two months there's one name wall street is turning its back on. plus an epic nike fail shares slipping as a duke superstar breaks a pair of the brand's sneakers during a game. faang biting the dust, having a rough february with the exception of