and i find also from my own experience that one's own power of attorney may not be sufficient at certain financial service companies that require their very own specifically written ones. >> is that true? >> yes check with your bank and brokerage house to make sure yours complies with their rules. >> thanks for watching "power lunch. it is the final hour of trade. president trump about to hold a key trade meeting with house republicans in just a few moments. we will bring you all the details. carnival shares getting crushed after earnings the ceo joins us. and we're about to get a key reading on housing kb homes reporting after the bell "closing bell" starts right now. good afternoon and welcome to "the closing bell." i'm wilfred frost alongside sara eisen. let's check in on the markets.

we have lost steam into the final hour of trade but it's still a positive session, up 0.4% for the major indices. s russell is 0.8%. every sector is positive, led higher by energy, communication services at the bottom >> all the focus lately has been on the bond market coming up, fed funds futures, key market, saying we may see a rate cut from the fed as early as september former fed governor sarah bloom raskin will be with us. bond markets appear to have stabilized following a big drop for the 10-year and mike santoli is here with more. >> yes, wilf looking at what the bond market is doing, especially in the past week or so, you look at about a one-month chart of the s&p 500 against the 10-year treasury yield, and starting just a few days ago when the 10-year yield

broke decisively below, it got stocks' attention. before that low yields, good credit markets of been supporting stock valuations and been behind this rally it got down to a level that people said do we have to be concerned about growth last thursday, treasury yields stopped falling and we got a rally. friday yields kept going down. so this seems to be the seesaw that we're on right now. today as we mentioned, wilf, we did have stabilization in yields but not a decisive lift. therefore, we have a little tentative rally going on right now. what's working in this environment is long growth stocks the big consumer multi-decade growth names like nike and starbucks hitting new highs as well as safety dividend plays. the big question now is are we overshooting a little bit? is it ripe for reversal? there are people saying the yield move looks a little

extended you see banks rallying today, perhaps anticipating a little bit of the fact that maybe things should unwind. >> and obviously good to see the bank rebound today that's not been a trend of late. the other trend of late as we discussed yesterday is that odd balance between the likes of utilities and the likes of the big tech stocks that continues again today. >> it does continue today. so it's not the banks bouncing at the expense of the other sectors that had been working maybe it's a quarter ending issue. of course today is the last day to buy before funds close the books on the quarter so it could be people just riding the momentum and some of those good groups and bracing to see what the bond market does next to give some kind of signal >> is your upshot here that when it comes to stocks and acting as a pressure point for stocks, it's really all about the sweet spot the bonds have to be in

>> yes it's the level and the speed with which you get there if it seems like there's a buying panic in treasuries, that seems like a risk off move or people positioning aggressively. >> very accommodative central bank economy stimulates. >> and a lot of the technical analysis when the yield curve inverts even those say down the line this is a bad omen. >> it's a long lead time before you typically have a recession in the interim it gives a lift to consumer discretionary areas like housing and autos. >> we'll see with kb homes reporting after the bell what does this all mean as fed fund futures show a rate cut as early as september joining us is sarah raskin thanks for joining us. >> happy to be here. >> a lot of people coming out

saying a cut would be the next move rather than a hike. where do you standing at the moment >> it's a really tough call at this point, but as you saw, there is really weakening data coming in, primarily from the ecb. you saw the ecb actually just recently do something that indicated that it was -- that it was foreseeing a slowdown. took some pretty dramatic action the fed so far has stayed put after really doing a u-turn and a major pause, but weary now as to whether the fed is going to begin doing some cuts. >> how closely does the fed itself pay attention to what the market is factoring in in terms of a cut >> well, the fed has to take that into account, frankly it's important that the fed really keep its pulse on how markets are indicating, you know, what they are foreseeing

in terms of where the economy is going. there's other data too, of course, not just what is coming in through markets, but what's coming in through real economic data, slowing demand, what export/import numbers are looking like all of those data points are going to be important as well. >> the yield stabilization of the last couple of days, did you think that marks the low of the yields for the near future >> hard to say, wilf it is certainly one indicator that is pointing in a direction of things slowing down those, as you know, have been indicators that have pointed in very many cases to the onset of slowdowns and recessions. >> so the fed expects growth to be 2.1%, which is lower than it was, but it's not terrible, it's not recessionary do you think odds are it's going to come in better or worse that

that >> i happen to think that's the high mark. you can imagine people in the white house maybe trying to think of some more sugar highs here that could actually boost it i think that could be kind of dangerous, if you want to know the truth. these kind of short-term kinds of stimulus measures can be great in the short term but not be very good at all for the long term we have seen there's a drag coming out it was great for a while but it was only going to be something short term and now you see that it's pretty much over. >> do we know that for certain already? could this be a factor of q1 slowdown or all sorts of factors, like the shutdown, et cetera, et cetera. >> clearly q1 numbers were low in part because of the shutdown, but there is nothing to suggest that there's much left coming in terms of the tax stuff in fact if you look at refunds,

refunds coming in have been at all-time lows. so that is a signal that this tax bill has pretty much run its course. >> what about the latest nominee to the fed board from president trump, stephen moore there's been intense backlash from the right and left in the economics world to this nomination. >> yes, indeed this has got to be watched because if the fed loses credibility by seating people that in essence are more political than objective, i think you run some big risks it's one thing to be putting your political friends and cronies within the agencies, but to put them on the board of the central bank is something that is -- that has to be done very, very cautiously because the moment the fed loses credibility, it's almost game over. >> having a broad range of views across a committee or a board is always important in any walk of

life what makes you so confident that mr. moore would take his role as a political one and not once in position assess the data with his way of approaching it? >> you are exactly right, wilf it is important that the fed not succumb to group think, that in essence you have a robust discussion of different viewpoints but the viewpoints have to be based on data. they have to be based on an ability to analyze as objectively as possible the data coming forth and by many accounts, that is not mr. moore's strong point the analysis of data is something that is critical for the fed to be both independent and to be -- to be making moves and communicating moves that are credible. >> so we're just actually getting news on the wires on this from senator chuck schumer saying here on capitol hill, fed nominee stephen moore is one of the reasons for the large deficit. all he wants to do is cut taxes,

cut taxes, cut taxes that's not what the fed really does, as you know, so how much power would he ultimately have if he gets through on the senate confirmation just how big of a deal if it's one sort of trump loyalist on the fed board? >> yeah, i know the argument i know it's tempting to say, oh, what is just one voice, let one voice through that might be just a wasted seat. these are important times. the work that the fomc does has to be credible every voice matters. i would not start down the path of saying, you know, it's okay to get sort of one sort of political pundit in there. i think this is -- this is dangerous. this needs to be looked at quite carefully. >> dangerous is a strong word, sarah. >> yeah. >> just look at some of the economic appointments he's made, the president has made there was a lot of criticism coming in for the likes of secretary mnuchin, for the likes of gary cohn and larry kudlow.

are all of those people who you think have fared poorly in their job? did you criticize any of those coming into it >> you know, i think what we've got to do is distinguish the fed. that is something. >> the fed is sacred >> the fed is in essence independent. for that reason it has to do whatever can be done to maintain its independence i think it's incumbent upon the senators when they do oversight to do this very, very carefully. this is why oversight matters. and we -- you know, i think it's important that the oversight be done well. these fed seats do matter. >> sarah bloom raskin, thank you. good to see you as always. >> we want mr. moore to come back and join us he was here, what, a month ago >> yeah, he was going to come on you know, he's going go through a tough nomination process we would like to hear from him. still to come, shares of

carnival sinking today after the company cut its full-year outlook. we will speak with ceo arnold donald about the headwinds facing his industry. and up next, rick welts joins us to talk about the state of the nba, his new team's privately funded billion dollar arena. we're back in colef nus.a up o

welcome back as china trade talks dominate the headlines, president trump is meeting with house republicans in a few minutes to discuss another trade deal let's get to kayla tausche with the latest. >> reporter: the four months since the three countries signed this deal, the white house has been strategizing behind closed doors with republicans to figure out what is going to be a delicate path to passage in the coming months. the white house hosted senate republicans a couple of weeks ago and today in just a couple of minutes the president will be meeting with house republicans to talk about some of the concerns that the party has about elements of the deal that were inserted to win over democrats but are giving some

republicans heartburn and vice versa. you have steve scalise, the may noert whip to talk about how votes will be counted. you have kevin brady, formerly chairman, now ranking member and then you have representatives from states like washington and texas, some of the most trade dependent states where the new nafta deal is concerned. the outreach has been far and wide even though the white house has been talking a lot with republicans, trump's top trade official has also been fraternizing with democrats to see where they are and to make sure they know about certain labor and environmentally friendly portions of this deal ambassador lighthizer has met with the entirety of the house democratic conference. he's met with the ways and means committee. he's met with the blue dog democrats and the hispanic caucus so you can see that the outreach on this deal has been vast, it's been bipartisan, it's been on both sides of the aisle, and it's going to ramp up in coming months, guys the unofficial deadline for the administration to get this passed is the beginning of august when congress is going to

go out for a multi-week break. on the other side of that, it's full-fledged campaign season. >> kayla, if they don't successfully sell it, does that mean we'll hear the president threaten to pull out of nafta again? >> it's something that senate republicans specifically have asked the president not to do. it's unclear where that specific strategy stands. the expectation is that they can get the votes or they believe they can get the votes for this deal and that won't be an option remember, there are two other cup trees who have to ratify this deal too so the u.s. can't necessarily make wholesale changes to it in order to get members of congress onboard. so the deal that's on the table is the deal that's pretty much going to be voted on. >> how much focus is this taking off china talks, kayla >> reporter: well, i think the idea here, wilf, in terms of timeline and bandwidth at the office of the u.s. trade representative is that there's a desire to get china wrapped up in the next month or so because the expectation is that it's

going to be a full force effort after that, full-court press on usmca. even though there are different teams at ustr negotiating usmca versus china, a lot of the white house staff is overlapped there on the trade team. so certainly it is taking time away -- china is taking time away from usmca and vice versa if you get one of those situations settled, it does allow you to pivot and talk about the other. >> kayla, thank you. >> reporter: sure. switching gears, starting this fall the golden state warriors will have a new home. moving across the bay from oakland to the brand new chase center in san francisco. chase center and the surrounding district covers about 11 acres, has 500,000 square feet of office space joining us now to talk about the development and its economic impact on the golden state warriors is the warriors president, rick welts. welcome. >> thank you thanks for having me. >> so first fully privately

funded stadium how did that come together what's the significance of it? >> we made the decision that we wanted to build an arena in san francisco. part of the deal when you want to do that is there would be no public money so it's a heavy lift it hasn't been done in decades i wouldn't recommend it as a formula. a few hundred million dollars would be really nice to build one of these but we knew it at the outset and we're close to the finish line. >> and the partnership with chase as well leads to another initiative, which is you want this to be a cashless stadium ultimately. >> obviously payment systems are an important part of chase's business their experience really here with madison square garden in new york and their experience in treating customers in arenas is second to none, so we've been able to leverage off of that expertise. we think we have exciting things to come. >> how are the fans dealing with it big move from oakland. you've had diehard fands during the warriors tremendous ride. >> we spent this year

celebrating our 47 years in oakland. 70% of our season ticket holders have decided to come with us as season ticket holders in san francisco. we love that building, it's older than madison square garden we needed a different facility to jn rate the kind of revenues we needed to be a competitive championship team. >> what have you guys in the nba more broadly got right last year it was the record fourth year in a row that attendances rose the streaming service, 63% growth total revenue increased 25%. what's the nba got right that perhaps some of the other sports haven't consistently done in the last four or five years in a row? >> i think we have extraordinary leadership adam silver has done an amazing job as commissioner. i think we're touching something socially with our audience i think if you really look at the social media stats and look at where our audience is, we're looking at that really coveted younger demographic who's really resonating with the personalities of the players and

the teams of the nba that and the fact that i think our international play over time is going to really be what separates us from the other american sports leagues. we really do have an opportunity to take this sport international low in ways that i think football and baseball won't have that opportunity. >> i've seen that firsthand with the sneakers business. on a more local level, though, how much is this the team of silicon valley how important is it to the dna >> incredibly important. i think long term it's a big part of our personality, and a big point of why players at some point in their careers have an opportunity to play wherever they want, see silicon valley and the warriors as an exciting place. because of who they are, they can interact with executives in silicon valley and some start to be investors. >> on that point, being investors from the players clearly steph curry is a pioneer getting involved in the vr

world. but does that rub off because of him and his leadership but also where you are based? >> i would say even moron dray iguodala, kevin durant, have taken it upon themselves to learn about these businesses and learn how to invest. i think you'll see more and more nba players doing the same thing. >> in terms -- in terms of the social media aspect, how has that changed the nature of the fans' interaction but also for the players. are there areas where you regret the level with which the players get involved >> there's no turning back this is how players across the legal interact with each other 50 years ago players on one team never knew players on another team, and now they're friends. it does change the dynamic it changes how teams are formed, how they think about where they want to play so i think it's been a really, really big factor. >> this has nothing to do with you but there's been an odd story about basketball in the news this week with michael avenatti being charged with extorting nike, all centering

around the amateur league and coaches being paid for bribery how big a part of the sport do you think this is that basketball has to overcome >> i think we still have things to clean up. the nba,the players association, the ncaa, are having substantive conversations about how to change the systems so it serves the student athlete better right now the things we're doing don't really work. the one-and-done isn't working great for the colleges or the nba. there's got to be a better way to do it that treats the students like student athletes and gives them better preparation for their careers. >> does that raise the bar now of expectation what is necessary? what is a bare minimum for the next three or four seasons >> who wouldn't want that kind of pressure? would we rather not have been to the finals four years in a row i don't think so or won three championships we like where we are right now.

>> thank you very much, rick. >> thank you still to come on the show, despite increased chatter about a rate cut, one strategist still says the fed could actually raise rates in the second half of the year. she will explain why, coming up. plus new data out today hoinstts to a big slowdown in usg ar kb homes releases earnings after the bell we're back in a couple

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reaching a settlement over its opioid drug but it's facing fit1500 lawsuits what it means for the company and the billionaire family behind it. after the break, carnival stock is down more than 20% in the past year falling again today hard after cutting its outlook. arno daljos tldond inuso talk about the headwinds facing that industry ♪ ♪hold on, i'm comin' ♪hold on, i'm comin' ♪hold on don't you worry,♪ ♪i'm comin' ♪here we come, hold on♪ ♪we're about to save you i'm comin', yeah♪ ♪hold on don't you worry,♪ ♪i'm comin'

welcome back to closing bell we're certainly off the highs of the day. s&p at one point was up 31 points, but still mostly higher in terms of sectors within the overall market actually everybody is up right now. energy is in the lead. consumer staples, financials, utilities all going strong that communication services sector is the one that keeps popping back in and out of positive and negative territory. overall it's a pretty broad rally, even though it's off the highs. continuing with a cnbc news update with sue herera. >> hello, everyone here's what's happening at this hour israeli prime minister benjamin

netanyahu after israeli jets pounded hamas-related sites overnight. he cut short his visit to the u.s. after a rocket fired from gaza struck a house in central israel >> now, i'm just coming from a meeting with our chief of staff and our senior command i can tell you we are prepared to do a lot more we will do what is necessary to defend our people and to defend our state. >> russian president putin meeting with the lebanese president in moscow who expressed concern over the u.s. announcement that it recognized the golan heights as part of israel he said that recognition undermined the rules of international law. and the european parliament overwhelmingly approving a measure to abolish the twice yearly time change by the year

2021 but lawmakers haven't decided whether summer or wintertime should be adopted as the standard time. more negotiations to follow, i'm sure and lots of discussion that's the news update this hour sara, wilf, back down to you. >> i'm jealous of that. >> the only thing i've thought they should do, though, is when you lose an hour of sleep, do it at the weekend when you've gained one, do it in the middle of the week. >> it's like the whole concept is stupid. >> why it's so great when it stays light longer and it's not so depressing. >> you have a baby and everything is scheduled an rid e ridgemented around babies sleeping and eating, get back to me. >> i love the debate starting now to have a change in 2021. >> european parliament tackling all the key issues. rough day for carnival stock. down almost 9% despite reporting it beat on revenue and earnings earlier today. the stock plunged after the

cruise ship company did cut full-year forecasts. also warned a little bit on europe. >> we should ask arnold, they must go through a lot of time changes. maybe he's got a view on this. >> maybe he does first, arnold, welcome i'd like to hear more about the move in your stock price today and what was so surprisingly disappointing. what happened here >> well, you know, it was disappointing. we had a beat for the quarter, as you mentioned we've got revenue growth despite the change in guidance, the midpoint of the guidance is still above the prior year so we're going to grow. but we did adjust to reflect the necessary change in fuel and currency i think there's consternation as there has been for some time because we have consistently beat for the quarter and then had drops on the calls, sometimes overall market drops i think part of it is just a fear amongst some people that

this is a cyclical industry. they see additional capacity coming on and they're anticipating that cycle to turn because we have such a good run. but we feel that -- in fact we know and we plan for continuing earnings growth, sustained earnings growth in the years to come, double digit, and elevated return on investment capital which is already double digit. >> but have bookings been a bit softer than you'd hoped so far this quarter was that another factor? >> no, we see no weakness. we have capacity increase, bookings have been strong. in fact we have less volume to book now than we did last year and that's with capacity increa increase so we're ahead on bookings we're doing very well, it's just this consternation around looking for a particular yield number and this fear, i believe, that the business is cyclical

and not seeing a yield number in the face of the capacity increase reinforces some of the perceptions that some people have but the reality is we're going to deliver and we believe when we deliver, the value will actually be shown to the shareholders >> some of the analysts are warning about your ability to price on prices in europe specifically and citing that for the underperformance of your stock versus some of your competitors. what's actually happening in europe >> again, we've got double-digit capacity increase in europe. europe is uneven as an environment, right now, as you know but overall we're going to grow earnings in our european franchise across our brands in europe we're going to grow earnings this year despite the unevenness and what have you. and we have a significant capacity increase. so the yield, while ultimately we expect it to be flattish year to year, we're going to be growing earnings in the end, it's earnings and return on investmentcapital that create the value for the

business and we're excited. we've got costa, esmerelda coming in. carnival, panorama is coming later and sky princess carnival mardi gras, which isn't going to be introduced until 2020 has 65,000 guests already preregistered. it's the new ship that will have the roller coaster on it it's a lot of fun, we're doing well. >> arnold, viking cruises had some trouble this past week, including an evacuation. when you see issues like that, does it drive customers to carnival or in general away from cruise ships altogether? >> first of all, i'm not familiar with the situation there. obviously i don't have any affiliation with viking. i'm just glad everybody -- there

was no serious injuries or anything and everybody seems to be safe and that's the most important thing. but things like that for people who haven't cruised, if it stays in the news for a while, it can be a detriment for someone who hadn't cruised yet for people who cruise a lot, i think they realize what a safe vacation experience it is and what a safe and secure prospect it is to be on a cruise ship. >> arnold, state of the consumer 2019 versus 2018 is it outlook slower >> you know, we're a global business and it changes every year around the world. but the bottom line is i would say things are positive for us with consumers our onboard revenues, which would be one indicator of that, our onboard revenues are up nicely in the first quarter. we're expecting to see continued strength in that through the rest of the year across the board, whether it's in europe or

in china or here in the u.s. so right now we still see things positive we're a little recession resistant, so even if recession hits, we're such a much better value than the land-based vacation that we're still a good place to go for people who are looking for a great time, a great experience and wonderful memories. >> arnold, i don't get it. i'm having a little deja vu because you joined us at the end of december. the stock took a big dip and you came on saying the business is great, everything is fine, wall street is overreacting it looks like the stock has fallen on the day you reported the last five quarters where's the disconnect coming from between what you're saying and how wall street is reacting? >> i believe -- i wish i knew for certain, but i believe the big disconnect is there is a latent fear that the cycle will turn that we've been on a nice, long run and the cycle will turn.

they believe the business is cyclical each quarter it's a different thing that they point to to cause them consternation as we continue to grow our earnings and continue to beat the guidance and i think it's just this latent concern this particular time we did lower guidance because of fuel and currency, although the guidance is still for an improved earnings picture versus the prior year and we have a low yield forecast, which again we've got nine brands. that's a long story i won't bother going into it but this weighted average yield thing. so they point to those and it makes them nervous, obviously. but i think as long as we perform ultimately for those shareholders that are long-term investors, they're going to be handsomely rewarded and the others will come in as they're convinced that what we're saying is true, which is we will have sustained earnings growth and return on investment capital. >> arnold, thank you very much

arnold donald, ceo of carnival. >> you're not asking about the time change? >> you really shut it down earlier. i thought it was time to move on it's also different. they're crossing time zones than having daylight savings, so it wouldn't have quite been the right question. we have 20 minutes left of trade. we are higher by 0.3% or so but we have lost steam throughout the session. most of the sectors are positive i think one just dipped into the red of late. shares of bed, bath and beyond soaring today. why activist investors are calling for its entire board to be replaced. that's coming up. plus housing starts stumbling today. after the bell we'll get another read on housing. earnings from kb home coming your way "closing bell" will be right back okay, paint a picture for me.

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movers for you bed, bath and beyond soaring on the report that activist investors want to replace the company's entire 12-person board. the investors who have a 5% stake in the company cited the retailer's failure to adapting to consumers shopping online bed, bath and beyond issued a statement saying it reached out to the activist investors, including legion partners asset management for ideas and suggestions on improving its business but didn't receive any feedback from them writing, unfortunately, while our directors and management were seeking to engage in good faith, it appears that the legion and macellum representatives were merely seeking information to support their own attack shares trading sharply higher on this news, some 20%. it was a little bit more than that earlier on. the general take is they think there's a lot of low-hanging fruit, whether it's cutting costs or management. but the market likes it. >> we were talking earlier with mike santoli about retail this

year facing sort of a moment of reckoning. if you haven't fixed it in this very healthy consumer environment that we've had in the last year, something has got to give, whether it's gap splitting up its businesses or an activist coming over and putting a lot of pressure to revamp a board and a ceo these are some of the underperformers. >> right but big, big move in the share price because people feel it's low-hanging fruit. there's only a 5% stake here but people think there's easy work to be done. i'm watching on a consumer note, mccormick beating on earnings, meeting on revenue strong performance helped offset the lighter consumer business sales. shares trading up a little less than 1% today. frank's hot sauce has been a big part of the story here it has been outgrowing the rest of the food peers. the valuation has reflected that it's trading about 26 times

fiscal year '20 earnings median food company is just under 20 so a lot of the strength in mccormick and the outperformance like we saw today has been in the stock. it's been an amazing high flier. a jim cramer favorite as well. >> frank's hot sauce, i haven't tried it yet. >> chilula and frank's are like staples. try frank's, you'll like it. under 15 minutes here before the closing bell we've got a 58-point rally here in the dow, so things have cooled off from the triple-digit gain we saw earlier. it was as high as 279 points earlier. but within the s&p, most of the groups are still higher at this hour, led my energy. when we come back, a top strategist tells us the two hours of the market that could see big slowdowns in the quarter ahead. we're back in a couple of. we've done it! hah!

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welcome back 11 minutes left of trade we are higher by a third of 1% joining our "closing bell" exchange, liz young and cnbc's rick santelli.

rick, the yields have been in such focus of late talk us through the moves today and the auctions we've had >> you know, i was very impressed with the short-end auction 2-year note yields but it shouldn't be shocking investors, why would they take all the curve risk there's a good chance the shortest maturity of this $113 billion in supply may be the best tomorrow we have 5s followed by 7s to answer your question specifically, there's something different today about treasuries the equity markets and investors should get a little nervous when you have that freefall in rates and i understand it coordinated very much with the fed, especially the 19th when they had no action. we were at 2.61 that morning after the fed's two-day meeting, obviously we're in the 2.40s i think it's whether it's gun's hot, whether it has kinetic energy, whether it's constantly moving down. today we grabbed we were up in yields early and stocks and the fixed income markets today have shadow boxed

all session, wilf. i think that's a good thing. i'm not saying this is the bottom, but it is the bottoming process and we'll have to monitor, but i think the equity markets can build if treasuries at the very least can maintain and move a bit sideways. >> liz, which also brings us to the other hot discussion point as of now in the bond market, they're pricing in a more than 50% chance that the federal reserve cuts interest rates in september, a more than 75% chance that they do it by next january. what are the implications for stocks of that >> well, first, i think the market is a little ahead of itself and we see a possibility for a rate hike still later this year i mean the fed really pivoted since last year up until this year they can pivot again if data stays strong and the u.s. consumer stays strong, we still see a chance for them to come back to the table the implications to stocks if they cut later this year, if the market is not expecting that,

they'll think the fed knows something we don't and that's a negative sign. >> how does that mean that you're positioned relative to the market if you think we could still get a hike and people are moving the other direction >> if you look at it from a bond perspective, with yields as low as they are, we think the market may have gotten a little ahead of itself. so it's not necessarily time to chase the curve. you don't want to take a ton more duration risk which sounds like the consensus today but in the stock side of it, not that you want to be overweight risk assets but the fact we could see them come back to the table in this pause table, it's going to be supportive of risk assets >> do you think the fed will continue to be a primary driver for risk sentiment and stocks for the rest of the year as it has been from the beginning part of the year? >> they have been a primary driver to positive risk sentiment in the beginning part of the year. the second quarter will be really tough for everybody we're going to have earnings come in and right now earnings are expected to be negative 3.6% we're going to have gdp growth

that comes in a lot lower than the fourth quarter so i think the market will have to digest that i don't know that the fed can drive that much more positivity through q2. >> rick, back to the yield curves this week can we reduce our focus that has been so high of late on international yield? the curve has been moving a little bit more on its own this week, has it not >> a little bit. i think we'll pay a whole lot more attention to overseas investors' behavior in lieu of the fact that their central banks missed a couple of opportunities. even if you don't agree with that, nobody is going to disagree that now is not the time for mario draghi to be stepping out or mr. carney so i think the answer is there's going to be ongoing pressures. one thing liz said i absolutely agree on, listen, if you're looking down the road in fed fund futures, i harken back four, five, six months ago when all the tightening's were built in the problem with fed fund futures as a barometer is that it really only works as a good

percentage, a good call for the next meeting when you're three or four weeks from the next meeting and only the contract that covers the meeting. just think, it's not much different than the stock market. it looked a lot better in august than it did in october and november i would think the same could be said for fed fund futures. in the end it's a one month sort of bill krcontract and what it says way down the road doesn't foretell the future like the nearest contract month. >> the other thing i would point out is that oil prices are jumping 2% wti just crossing back above $60 a barrel does that influence your sector? >> it's a positive signal. if you see demand come back into commodities, it's another signal that demand is healthy in the economy, which is going to maybe surprise us on the upside throughout the second half. >> liz, thanks for joining us. >> thank you. >> ick, as always, thank you very much. up next, we'll be back with the closing countdown. just five minutes left to trade. and on the heels of weaker

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shares of apple near session lows following a patent ruling involving qualcomm, helping the dow lose some steam today. josh lipton with more in san francisco. what's the story here, josh. >> sara, we want to call your attention to apple which is near the lows of the session. qualcomm in the green here a trade judge, a judge with the itc, has made an initial ruling saying apple did infringe one qualcomm patent. it sounds like this judge will recommend a limited import ban on some iphone models. that's not the end of the story. the full itc commission has to review this decision remember, this is just one of two cases qualcomm brought to the itc. the commission is expected to release its final decision on the other case later today in that one late last year, the itc judge also said apple had infringed a qualcomm patent but that judge did not recommend a injunction so we're waiting to see what the full itc commission

has to say about that. bigger picture, these two have been battling for two years. qualcomm going after apple for patent infringement. sara, back to you. >> all right, josh, thank you. wilfred, over to you on the floor. >> let's start with the s&p 500. it was a picture losing impetus throughout the session but a nice tick-up for the final hour of trades leaves us with the four indices up a little more than half a percent. the russell is up nearly a full percent. the s&p up 0.7%. i'm going to get to bob pisani and the sectors chart. even though we're off the highs of the day, all the sectors in positive territory. >> at least the yields were not down again banks were up today. that's positive. energy, look, $60 oil here, that's essentially the highs for the year so energy stocks did well. we got that lousy housing number early on today for february and all the home building stocks,

you see nice moves up 2% and 3%. this is other than utilities the best-performing out there. >> there goes the bell that nice little run-up leaves us exactly a percent higher on the russell, which is the outperformer today dow and s&p up more than half of 1%, so a decent session. that does it for the first half of "closing bell." sara, back to you. welcome to "closing bell." i'm sara eisen wilfred frost rejoining me in just a moment as well as mike santoli as always. take a look at how we're finishing up the day on wall street the dow closing up about half a percent, sort of in the middle of the range of where it's been all day. got as high as 279, as low as up 35 it gained 140 points didn't help that apple turned lower on that qualcomm news josh just reported.

the s&p 500 gaining three-quarters of a percent. energy and financials in the lead more than 1% gains apiece. technology had a comeback day, up 0.7 of 1% and the russell up a full percent. here are the stories on our radar. tech stocks did outperform the dow but companies bracing investors for what could be the worst quarter for tech in more than six years. and we'll get a read on housing when kb homes reports in just a few minutes. first joining us to talk about the market today, tony dwyer. mike, a pretty strong session. it wasn't as strong as it looked earlier this morning, but it felt like it was key that yields stabilized. >> it was. in the morning that sort of released the market higher and i think really we peaked on the day in terms of the stock indexes when those yields also hit their highs of the day so we're kind of tethered for the moment we'll see if this continues for a while.

more broadly, i think the s&p 500 is trying to fight the battle of this 2800, this trench that's been drawn in the market. we first hit it march 1st. here it is march 26th and we're within 1% of it. i think we spent most of the month here so i don't think you can conclude anything particularly decisive about today, although the banks bouncing hard was probably welcome we'll see if there's any follow-through at all. >> tony, do you think the equity markets want to see the yields stabilize a bit, just some stability so they can find footing again? >> going back to the lead-in story on tech and how you're going to have the worst earnings in six years, it's been a good six years during that time so let's put that in perspective. the market wants to see there's not going to be part of a recession, given that part of the yield curve inverted last friday it's looking for any kind of signs of green chutes for growth. >> mike, green chutes for growth, are we seeing enough of them to have seen the market run up so far so fast this year?

>> you know, i think most of the rally you could probably chalk up to the fed pivot, the fact that the market was so overdone on the downside. i don't think it's been rising on this economy is accelerating or about to accelerate. >> there's so little in the way of data. >> very little in the way of data if you look at the stocks working the best, they're not necessarily, at least in the last few weeks, tethered to how strong the economy is. today you had this backsliding in the consumer confidence index, which i don't think it says things are falling apart but it doesn't do anything to dissuade people who feel like we're in a prolonged soft patch. >> everybody is looking at the yield curve and saying part of it inverted. a lot of things happen before you go into a recession. credit delinquencies pick up that's not happening credit stress indicators that measure 105 credit stresses and shadow banking and the financial

markets start to tick up significantly. they're at a cycle low household debt service ratios pick up. that's at a cycle low. all those things that typically show up when a recession is imminent and a lot of times we choose to ignore are simply not showing up as long as the credit markets are open and they're open, you're going to have positive economic activity. >> are there any orange flags out there, though? >> well, there really isn't. there's this idea -- the yield curve is an orange flag if it stwert inverts. you're starting to see a rate of change on some of the pmis in 2018 you had this global synchronized recovery that everybody on the planet was quoting and you were beating those expectations today it's the opposite. but the key metric that we watch is credit. do companies and individuals have access to credit, and the answer is absolutely yes right now.

now, it can change quickly, but there's no signs. >> so you say you are permeable. are you still outfront in thames -- terms of your outlook? >> we're at 2950 sara, it's very interesting. if the fed is easing because economic data is so week and we're in this political drama and everybody is jumping on this 1995 bandwagon, but when the fed went from tightening february 1st of 1995 to easing in july of 1995, the market was up 14%. it went up with much weaker economic data and fear corporate profits would be negative. >> tech outperforming the broader market and remains the top performing sector for the year, the qqq etf up 14% for the year mike, it's sort of dancing to its own tune the yield picture doesn't have to influence it in a way you

might of thought it would in the past. >> it seems to me the market is showing a preference for where it can rely on strong cash flows. so maybe it's just the muscle memory, but they're grabbing for big cap tech but other growth stocks as well. you want to talk about visa. a lot of other kind of secular growth type names. so that is, i think, what's happening right now. tech is getting big again. remember, they split the sectors last year. if you were to go back and put facebook and alphabet back in the tech sector from communication servgices, you hae a tremendous commitment by the market right now because right now that's where the earnings confidence lies. >> but this was a group, tony, that was supposed to be safe and insulated from some of the macro headwinds, recession calls, strong dollar. what does it tell you now the outlook is being clouded even for these companies. >> you're coming off a peak for semis. don't forget how big crypto will

be for the semis and you're hearing of double ordering we're coming off of that the question is can the market continue to rally if tech goes into a consolidation or weakness mode again, i hate to do it, but 1995, semis underperformed significantly in the second half of that year, significantly. and that was the growth arena. so i think it's important to remember what's happening is that growth is slowing and offsetting that mostly we have had 75 basis point reduction and market driven rates. so there's a lot of people that -- i actually heard somebody talk about refinancing today. when's the last time we've talked about refinancing it goes to credit availability if the people on this desk and people watching the show can call up their mortgage company and say i'd like to refinance my debt and they can do it, we're still in a growth trajectory that's going to change >> what's your point on semis, we need to keep an eye on those as a leading factor? >> they're the reason for decline in earnings for tech

hardware and semis are the two main culprits. again, you're coming off of peak earnings i don't know what to make of apple because they're going back and forth in their earnings estimates over the last three months at the endi of the year and int the first month it was down on the apple preannouncement and now it's back up on the services i think it's just a very mixed picture. >> so when people ask you information technology is the best performing sector so far this year, up 19%, should we stick with it, what do you say >> absolutely. you have to make -- to be out of an economically sensitive sector, you want to be able to say that credit is showing you're getting toward an imminent recession you'll have periods -- how many periods have we had this cycle where utilities and consumer staples have outperformed. people have screamed this is a character change in the market when these defensive sectors outperform only to reverse when? when interest rates come down.

that's what we've had over the course of the last six months, market-driven interest rates come down to the point you're almost at an inverted yield curve. tech companies are lowering their earnings guidance at a record rate. 26 s&p tech companies issuing negative guidance ahead of first quarter results. full story on cnbc.com a lot having to do with the cloudy outlook. >> well, it's funny you say that because it's some of the cloud companies that have been reducing the numbers along with semis. i think it's in the market once the guidance is out there so that's one of those things you're not sure what to make of it is it the beginning of a downslope or an adjustment the market has made to a slightly less interesting earnings growth for at least a quarter or two. right now i look at the software group, which has nothing to do with apple it is up more than 20% year to date software and semis both up 20%

year to date apple having this nice run i don't think the market is sitting there saying, okay, we have to huddle down because tech is no longer an earnings story. >> tony? >> i could see a pullback. you're getting close to the quarter with expectation and earnings but what i'd urge everybody to do, you know how the second derivative is only talking about when things are turning over look wh when they're starting to bounce off the low. that's your tell that you're coming out of this growth slowdown. >> is that happening which countries. >> it's happening in china, it's happening in the eurozone, it's happening nearly everywhere. i track it as the asian five and these indices are negative i'm not saying they're good. >> i think people thought that and then we got that german manufacturing number last friday. >> the zew index of business

confidence that surprised to the upside. >> it's an optimistic -- >> i am not making the optimistic case. i am making the less pessimistic case remember, everybody wants to sell when things are great and it's getting less great. let's look to do the same when the signs come out and it's less horrifically bad in some of these pmis the percentage of purchasing managers index globally that are positive is below the level of 2016 it's trending to 2011. that's typically not when you want to get negative on global economic activity. >> is it the time to start getting aggressive when it's less bad news when the market is only 4% off its all-time high? it's not like we're at depressed levels. >> were we as bad as the great depression in the fourth quarter? there was an excessive drop in the fourth quarter i think the data that came out and said people are less exposed to stocks since 2016, i don't

think they're really bullish you're not a 60% of news writers bullish, you're up off the low but clearly they're not chasing. people are fearful of chasing. >> we want to get to this news alert on patriots owner robert kraft. sue herera with the details. sue. the patriots owner robert kraft has decided that he is going to waive arraignment he is entering a plea of not guilty to charges of soliciting prostitution he is also requesting a jury trial. so he is formally entering a plea of not guilty, waiving arraignment and requesting a jury trial now, you may recall just a week or so ago federal -- florida prosecutors had offered to drop the charges against not only mr. kraft but other high-profile people if -- there was a catch to that. if the men agreed to admit that they would have been found guilty at trial, then they were also going to have to do

community service. they rejected that particular offer from prosecutors and now he has entered a plea of not guilty to charges of soliciting prostitution guys, back to you. >> all right, sue herera, thank you for the update on that one. guys, i want to get a final thought on the markets, tony we were talking about the tech outlook. let's broaden it out other sectors that look attractive going into earnings season based on preannouncements >> i think the interest rate sensitive sectors are continuing to act well. i can see the home builders doing better on lower rates as you get a little more optimism toward second half but i want to go back to that question wilf brought up things are not good internationally. my point is just like the zew index, if they're just ticking up a little bit, that's a lot less bad. >> but there's a big difference as well. valuations in europe are unbelievably cheap that doesn't apply here. so a small tick-up or small bit of data that's less bad in

germany, does that change the outlook for u.s. equities? >> i've not yet found anybody that trades the valuation sdr discrepancy between the u.s. for a long time. it comes down to growth expectations when you've got lower interest rate and favorable monetary policy, emerging and higher beta does better than developed and lower beta. >> thanks very much, tony dwyer. digital ad company trade desk just struck a new deal to target ads in china. the ceo will give us details, next. the state of oklahoma and purdue pharma, the maker of oxycodone, reaching a $270 million settlement the company has more costly legal fights ahead we'll have the full story coming up. you can reach out to the show on twir, facebotter, faceb send us an e-mail.

"closing bell" will be right back want more from your entertainment experience?

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to discover all sorts of tips and tricks in x1. can i find my wifi password? just ask. [ ding ] show me my wifi password. hey now! [ ding ] you can even troubleshoot, learn new voice commands and much more. clean my daughter's room. [ ding ] oh, it won't do that. welp, someone should. just say "teach me more" into your voice remote and see how you can have an even better x1 experience. simple. easy. awesome. welcome back we've got an earnings alert on kb home. >> kind of a mixed bag reporting first quarter earnings per share of 31 cents. that on revenue of $811 million

versus estimates of $831.8 million. average selling of a kb home down 5% to $370,900. the big number is the new orders that's what everyone was watching because of the slowdown at the end of the year kb homes' first quarter is december, january, february, so it was when we saw mortgage rates really peak in november and that dropoff the rates began coming down in december but the end of the year was rough for the builders new orders down 4% ceo jeff metzger said although the decline in net new orders impacted our first quarter housing revenues, we are encouraged by improving market conditions which should enable us to generate stronger revenues in the second half that may be possible given much lower rates but seeing the price of a home come down a little, affordability has been the big story in housing we did see housing starts drop off in the report today for february with builders seeing

weaker demand. so again it's kind of a big question markup in the air for the spring season for the builders we did see kb homes stock really surge but that's part of the hope trade for the builders. that people buy into them on the expectation that the stock will increase if they have a good season but so far we haven't really seen the new home sales pop up the way we might expect. back to you guys. >> diana, thank you very much for that mike, the shares clearly reacting the margin was pretty good the outlook for the year ahead will be whether falling rates leads to net orders picking back up again. >> if you're a home builder and the issue that has to be addressed is bridging this affordability gap, that's not necessarily ideal for your business it means either cutting prices or something or of course rates going down helps that a little bit. so it's a mix. i mean this stock made such a peak in january of last year, it's been fighting its way back from the lows off of that.

it's a constructive but very inconclusionive. a winning stock to tell you about, the trade desk announcing a new deal to target ads in china. that stock down 5%, but up almost 240% over the last 12 months joining us now is jeff green, ceo and founder of the trade desk welcome. >> thank you. >> we do want to talk about the new deal in china, but we don't talk about ad tech every single day so what's leading to that growth over the last year? >> it's been almost 1,000% since we launched. advertisers are saying they want to put their data to work and realized that the internet is way bigger than just google and facebook they're interested in monetizing the rest of it, not the least of which is connected tv and the rest of the world, which is more than two-thirds of the

advertising pie. >> so what exactly do you do for them >> basically if you want to buy google, you go to google if you want to buy facebook, you go to facebook if you want to buy the rest of the entrant, they hand us their data and insight and say should we buy spotify, "the new york times," msn or this app? we use insights on reporting to help them which of those things to buy and we measure the impact of each of them on each other. >> and these various concerns, most of it focused on google and facebook about their use of user data and how much advertisers have access to, where do you sit in that process with these other venues >> so we're very different from those two companies in the sense that we don't tract in personally identifiable information and you don't tell me every time you have a medical problem or share with me your entire social network. all we do is help people figure out what products they're likely to be interested in so it's very benign

that makes us both consumer safe as well as the brands trust us that's the most important thing for our business of course we have to be consumer friendly, but we also have to do the right thing for brands both consumers and brands are interested in each others' interest, if you will. >> how much does acquiring a big client like procter & gamble in any given quarter buoy the overall business >> because of the fact that we power the majority of the s&p 500's programatic transactions, there's no one company that moves the needle in any big or small way. of course p & g is much bigger in their advertising spend than really anybody else. but when you add that to the whole, it's a very big head. >> you mentioned connected tv. it's an area that's growing very fast what did you make of apple's announcement yesterday and the balance between the streaming services of who has ads and who has just subscriptions >> yeah. so apple's announcement doesn't

surprise me at all it's the byproduct of basically our entire industry marching toward a trillion dollars. advertising will be a trillion dollar industry in less than ten years. whether you're amazon or apple, you have to be looking at trillion dollar industries and getting in ads is easier than drilling for oil but there's a huge opportunity in connected tv because the average consumer was on netflix, they were on amazon, and now the subscription models are less appealing than the ad-funded models so, for instance, in our q2 over last year we saw 21x growth in inventory and that's just a byproduct of more and more viewers going to things where there are ads instead of paying the expensive price of cable, which is ad funded, and netflix, and a bunch of other subscriptions that don't have ads. >> is that why you've been predicting that netflix will go to an ad model >> i do think they will go to an

ad model they have so much ambition in the rest of the world where it's too expensive to pay $15 a month. they envy the reach of youtube in markets where it's just really expensive to have a subscription i think eventually they'll offer both the majority of consumers would rather see ads and pay less. >> we've been so interested in the business we haven't gone on to the deal today. tell us about that so far there's been quite a lot of protectionism in china with the big tech companies it's just not letting anyone else in. >> yeah, so why to alibaba and tencent have more market share than their equivalents here? the thing that is interesting about the position we're in, because we're not a media company, we think we're one of the few companies in the world that can partner with all of them at the same time and apple as well. we partnered with them in the past it's possible we can do that

again. but the thing that's really interesting about alibaba and te tencent, they have had a go it alone strategy they need to get more of their fair share of spend relative to where consumers are spending money than they have in the past and that means mostly getting advertising spend from companies that are not based in china. so because we partner with all these companies already and they're looking to put their data to work, they need to take it into china with a partner that they trust. it's much harder for tencent to say give us your data and we'll help you buy ads than it is for us, who they already work with, to say, hey, we can protect it and help you make decisions between tencent, alibaba or ichie or any of the others. >> has there been a big slowdown there along with what we've seen economically in china? >> i think more and more it's

going to be driven by marketing. if you're good at it, you will win market share and if you're not, you're not. i do think there's some cyclicality to it. but if your not advertising well, you're not going to be doing well you have to advertise in good markets and in bad markets. >> jeff green, thank you. >> thank you so much. mike santoli has a mystery chart for us today we don't even know what it is or what it means. >> do you know what i fear >> that neither of us will figure it out. >> no, i don't mind about that my fear is that you will figure it out and i won't. >> well, that's probably likely, or else i'll be very mad at mike santoli. >> we will yes, i'm going to start thinking now. >> by the way, last time that's what happened. >> no. i don't accept that. i do not accept that anyway, this time is what matters. that's coming after the break. so is the fact that purdue pharma has decided to pay the largest settlement yesterday the company faces more claims that it underpaid the drug

addictives as we're back in a couple of minutes.

time for a cnbc news update with sue herera. >> hello, everyone here's what's happening at this hour on capitol hill senator minority leader chuck schumer bashing president trump's latest fed pick, stephen moore, saying the conservative economist doesn't have the right stuff to join the federal reserve's board of governors. >> mr. moore doesn't have the background, he's a politician. he's political he's always wanted cut taxes,

cut taxes, cut taxes he's one of the reasons we have such a big deficit right now because of his advocacy. chicago officials calling the decision to drop all charges against actor jussie smollett an outrage. the mayor and chief of police holding a brief news conference after the decision. >> he did this all in the name of self-promotion and he used the laws of the hate crime legislation that all of us collectively over years have put on the books to stand up to the values that embody what we believe in this is a whitewash of justice you are up to date that's the news update this hour, wilf, sara, i'll send it back downtown to you. >> sue, thanks very much for that. mike is over at the telestrator with today's mystery chart. we teased the aspect of it you'll have to give us a clue. >> i will give you a clue. this is the price -- just disregard the m over here.

that's a stock price of an etf, very large, that's done very well over the last five years. it is not a sector of the market, but it is a style of investing, a category the stocks of a certain flavor. >> qqq. >> it is not the qqq. >> growth? >> bond proxies. >> sara is correct minimum volatility etf stocks that have -- as a portfolio, lower volatility than the overall market it is similar to the spov but this is a portfolio of stocks put together strictly to achieve lower volatility you see how much demand this has been in theory this should not have as good of returns as the overall market over a long period of time because you're taking less risk it's at an all-time high right here here's what's interesting to me. this is another period where it accelerated higher this is 2016 we are back in that 2016 type of

market low interest rates, but buying these bond proxy stocks. this was a pretty important peak, it was up over the course of the prior two years 25% in a flattish market. same thing right here over these two years. so it raises the same question are people just hiding in this area and it's going to get unwound somehow if we get better growth. >> or people have been calling the death of the multi-decade bull market in bonds forever and ever and ever. every time we get a fake-out like last fall -- >> you do get earnings growth along with it but that's what we got. >> i think i won. >> no, nobody won. >> i think the score is 2-0, sara >> what was the last time? >> it was an under armour chart. >> mike just gave you the win and you've passed it on. >> not only did i win but i remembered. >> that's fine i'll fight back. we've got many, many hundreds of shores to come 2-0 means nothing. purdue pharma facing more than 1500 lawsuits linked to its

pain killers the company made a major settlement with the state of oklahoma today but the family that owns purdue is facing fallout in unexpected areas. amazon is getting more brick and mortar competition as another internet retailer is planning to open a physical retail store we'll size up the prospects for this player coming up. my experience with usaa has been excellent.

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opioid maker purdue pharma reaching a $270 million settlement over its oxycontin drug but still faces hundreds of of other lawsuits aditi roy has the story. >> today's settlement could be just the tip of the iceberg for purdue pharma which faces over a thousand other cases the majority of the money will go towards a national addiction center at oklahoma state university. >> it is going to save countless lives and it's going to keep families together. and it's going to be the tip of the spear in terms of leading the nation out of the addiction

epidemic that has claimed just this past year 70,000 lives. >> the agreement also means two members of the sackler family which founded the company will not have to testify in court members of the family said while the agreement announced today is not a financial model for future settlement discussions, the establishment of the national center is a unique and important step that we hope will save lives. purdue reportedly faces up to 1600 cases in the opioid crisis, including 37 states which have sued the company since 2017. the company has denied wrongdoing saying labels for its pain killer carried warnings about the risk of abuse and misuse earlier this month the purdue ceo said the company is looking at possible bankruptcy saas a result of these claims today's settlement leaves claims pending johnson & johnson and

israel-based teva pharmaceuticals. >> robert frank is here with a look at the fate of the family's massive fortune. >> yes, they are worth than estimated $13 billion. they have given hundreds of millions to museums and charities around the world but now the famed sackler family is under siege for its role the $270 million settlement in oklahoma today involved $75 million personally from the sackler family itself. that's a small price given that court documents show they earned $4 billion from purdue pharma between 2008 and 2016, but the costs could escalate as aditi mentioned, there are 1600 other lawsuits waiting for trial. for years the family has argued that they were merely passive investors in purdue. but the documents in the massachusetts case filed revealed the family was actively involved in decisions relating to oxycontin museums and charity groups refusing further gifts from the family, even looking at possibly

returning funds. the tate museums in london and guggenheim in new york said they would not accept furthergifts from the family. the louvre and metropolitan museum of science have also received donations but their fortune will likely remain intact because their net worth is spread out over a much larger group of companies they have other corporate investments and there is still a perception that even if they file for bankruptcy for the company, that will create a firewall between these suits and their personal fortune. >> but this $75 million they have given so far was of their own will, it wasn't part of the settlement itself. they decided to give that, the family >> well, it's unclear whether that was a voluntary decision, but it now sets precedent that they are participating in the settlements. they paid as part of the settlement and that could set

precedent for the other cases. that's sort of an admission that they were in some way involved in this. >> it's interesting, i was going to say these museums refusing these donations. if you go back far enough, a lot of these fortunes were built on, who knows, questionable activities. >> sure. and there were many churches that refused to accept john d. rockefeller's money because they said he was engaging in monopolistic behavior. but it's been a long time since we've seen anybody -- amidst all these crisis and scandal of any institution saying we're not going to take your money, this is the first we've seen in decades. >> i was looking at the smithsonian who has a sackler gallery. they are contractually bound to keep that name. >> and the sackler family trust saying today they are putting a temporary pause on any gifts to anyone until this is resolved. >> robert, thanks very much. wework is working hard in

the sharing economy but despite rapid expansion and increase in revenues, it looks like they have to work harder to become profitable as an ipo that story is ahead. but first, podcasts are on our radar as spotify continues to be aggressive in that scepa we'll tell you what the streaming giant is up to now, next erything. no not everything, i mean you're still blatantly sucking up to me gary. brilliantly observed, sir. always three steps ahead. six steps ahead. sixteen. so many steps. you done? a million steps ahead. servicenow. works for you.

i'm not really a, i thought wall street guy.ns. what's the hesitation? eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable. i could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy. what's the hesitation? it's just complicated. step-by-step options trading support from td ameritrade welcome back here are some of the other stories on the "closing bell"

today. i went with mcdonald's acquisition of dynamic yield it's part of their plan to incorporate more technology in their locations. they will assist in updating the digital drive-through menus to change depending on different factors, like the weather. the company's largest acquisition in 20 years, reportedly valued at more than $300 million i always find it interesting how fast food restaurants are getting more and more into technology, whether using more robotics and automating their menus. it seems like a pretty obvious thing to give you choices based on preferences or weather. >> and to make it more efficient because they have to get more volume through each door. >> electronic ordering is not that efficient i find. >> you have to go to all the menus. >> it goes in, takes a bit of time and it's not that instantaneous when you go to collect it usually a morning coffee when i go to mcdonald's. >> not a mcmuffin?

no hash browns, really wayfair is going from online to offline they plan to open their first full-service store in massachusetts later this year. shoppers can purchase products in store to take home or place orders for home delivery wayfair plans to open four pop-up locations this summer this makes more sense because you can really go and view and experience the furniture you probably won't take it home under your arm depending on what the item is. but of all those online stores, it seems more -- >> we've had the wayfair ceo on so many times. we ask him why are people going to buy furniture online without trying it out in store he said because the prices are better and we put such a good job putting it out. >> and they have a reputation for being decent products so people will take the leap. >> it's good quality. >> even if you go to a tradit n

traditional furniture store, you're just seeing a floor model. >> i do think it's good news for those who say retail is not dying. the e-commerce folks have to get into retail as well. >> if it's more efficient to do it that way, they'll try it. spotify announcing plans to buy a podcast company, par cast. it's the streaming giant's 30 acquisition of a podcast company within the last two months terms of the deal were not disclosed but spotify expects to spend $500 million on total acquisitions this year spotify at some point was talking about original programming. they'll get knees sclthese excl it seems like podcasts is an area you could do that also i imagine somebody's podcast listening habits are going to tell you a good deal about their interests and, therefore, ad targeting and things like that. >> and podcasts in general going forward are probably cheaper for them not to acquire the

companies per se, but buying the rights to the songs, which we know is great for them. >> also another piece of evidence that content is king right now. look at apple yesterday. look at how many scripted shows are in the works and how top dollar that they're getting. >> and they're trying to go where people are spending their digital time if you listen to a 40-minute podcast, that's ten songs that you didn't listen to on spotify during that period. we have some news on boeing. phil lebeau is joining us on the phone with more on that. hi, phil. >> hey, wilf, any time you have something going on right now with the boeing 737 max it's going to get a lot of attention and that's what's happened this afternoon. within the last hour, there was an emergency landing of a southwest airlines boeing 737 max plane in orlando, florida. this was a plane that was in orlando and it was on a flight to be stored in victorville, california, that's where southwest is parking these planes while they are officially

grounded by the faa. there was an engine issue shortly after they took off, so they radioed the tower they came around, did an emergency landing. relative to what people think of when they think of emergency landing, this was not a huge deal i talked with some people at the faa and they said look, relatively speaking, this was a -- they came around, saw an issue, they landed more importantly and something people need to keep in mind as they look at shares of boeing, it was unrelated to the reasons why the 737 max is currently grounded by the faa. again, this was an engine issue on a ferry flight that had nothing to do with the issues that caused the grounding of the 737 max by the faa >> no passengers onboard, phil >> no passengers onboard four people, flight crew they're moving it out there where they're parking all of their 737 maxes while they're grounded. >> okay, fill, thanks very much for that the stock down 1% as we speak.

weworks' rapid expansion last year came with a hefty price. why the company's losses doubled to near low $2 billion that's up next

the senate holding a procedural vote on the green new deal. >> reporter: well, the resolution on the green new deal does not have enough support to pass the senate. currently the vote stands at 57 voting no and none voting yes. democrats were largely expected to vote present to avoid having to go on the record either for or against this controversial proposal, but there were a few notable exceptions senators kristen cinema, doug jones and joe manchin, three democrats that voted no.

also independent senator angus king also a no dem been calling this a sham vote even representative alexandria ocasio-cortez who originally sponsored this idea said that this is just republicans playing politics of course republicans say that democrats should be willing to take a stand on a proposal that they at least paid lip service to as of now, it looks like the resolution on the green new deal has now officially failed to advance in the senate. back over to you >> so does that mean, ylan, that it's done or are we going to continue to hear about this and is it going to continue to be a campaign topic >> reporter: you'll ten to hear about it even though this vote in the senate is over and this is not going to go anywhere. but certainly this is still something that is going to play a large role in the 2020 presidential campaign. as you heard some reports that president trump said today he hopes that the green new deal stays alive so that he can campaign against it. >> okay, ylan, thank you very

much for that. te> up next, what weworks' last revenue and loss numbers could mean for its ipo we'll be back in a couple of minutes. to unlock opportunities other advisers might not see. learn what a cfa charterholder can do for you, at therightquestion.org ♪ ♪ move to the enterprise-grade cloud that's built to handle all your apps. ♪ ♪ the ibm cloud. the cloud for smarter business. the ibm cloud. whai tell clients, etfs can follow an index, but which ones target your goals? it's not about quantity. it's about quality. no trendy stuff.

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while revenue jumped last year, it wasn't all good news. deidre bosa has the breakdown isn't san francisco. >> hey, wilf, that's exactly right. revenue may have doubled to $1.8 billion so so did its losses they were even higher at $2 billion. while that is a huge number, it's not actually very unusual when you look at the other big startups getting ready to tap public markets burning through cash in favor of growth is par for the course these days lyft's losses were north of $900 million last year. uber's loss, $1.8 billion. pinterest's losses were only in the tens of millions of dollars. zoom's s-1 was remarkable because the company is actually profitable weworks' vice chairman, michael gross, telling me there are a number of levers that could be less unprofitable but doing so would come at the expense of growth and they don't want to do that they're watching the upcoming graup of ipos closely and the

next week will be critical and the lifts ahead. lyft is expected to debut this friday, uber as early as april private markets that are flush with capital have led these companies' valuations higher and higher we'll see if public market investors value growth over profits as well or if these ride-sharing companies and others end up more like snap and groupon, other tech darlings that went public with no profits and have struggled in the aftermath. guys. >> deed remarks i guess lyft is an example where despite a widening loss, the market still happy to get onboard and the indications are that's even going to go above the earlier indicated range. >> that's right. we did have a source tell us that it's going to be pricing above its expected range remember, that its less private market valuation was $16 billion. it's already raised billions of dollars. it is expected to go public later this week at a valuation north of $23 billion that's a huge jump

uber, the jump is expected to be even higher. we know in the lead-up to its ipo, uber is shoring up businesses and potentially even taking more investment. >> deidre, stay with us. mike as a conversation on the ipo pipeline and the fact that many of these companies have very quickly growing revenues and also giant losses. >> yeah, we've seen very hot ipo markets before, but mostly it was an awful lot of smaller deals of companies in the early stages pretty much unprecedented to have all of these multi billion dollar private market valuations kind of heading for the public market exit at once. deidre is right, in terms of testing the public market's tolerance for trusting that these companies are going to get to a certain scale or find the way to their next act that's going to be profitable, to be honest, these are not companies if you talk about lyft, wework, uber, door dash, and other delivery companies are paying people to drive things around.

these are old businesses trying it in a new way. that's why i wonder if the public will give a big premium to the private market valuations. >> deidre, just quickly, the other factor we wondered, would there be a pushback on the structures or even a concern when the s-1s say we may never, ever be profitable an it seems people don't mind. >> that's right. you had pinterest say it was going to do a dual structure lyft's founders are expected to remain almost majority control some argue if you don't want the dual structure don't go with a lyft, go with an uber that will have a one vote structure. it will be interesting to see how they perform inspect terms of who has that structure and who doesn't because this has important indications. >>deidre, thank you.

tomorrow we have the ceo of barney's which just opened a high-ending pot shop in beverly hills. 10:00 a.m. eastern first time we'll hear from that ceo on why they're doing that. it's a pretty interesting move other department stores are not. >> we look forward to that but we are out of time for today's show that does it for "closing bell." >> "fast money" begins right now. "fast money" does start right now. as always live from the nasdaq market site in times square, i am brian sullivan in for melissa lee. it is what steve grasso is calling the most important chart in the market right now. how's that for a tease grasso will reveal what that is. plus, the ipo frenzy beginning to heat up lyft set to make its trading debut on friday. former home depot ceo bob nardelli says now is the