as their business models have improved he is now a fan the other thing i would say is how little a fan he is of ipos most don't have to worry about it because they can't get in >> if it doesn't go well we are not going to get in. >> closing bell right now. >> welcome to the final hour of trade. warren buffet speaking out, we'll bring you those excellents lyft's ipo will list this

afternoon. green across the screen. only slight gains. it has been a tight range. the high was 120 points, low was down 50 points >> real strength in some consumer names, retail in particular after blowout earnings we'll see if they continue to trade today. balance for technology it did pause and it seemed to help things out. >> coming up jim cramer will talk about which high growth stocks could be impacted by lyft's ipo just wrapped up a wide ranging interview. here is what he had to say about the strength of the economy and apple's latest streaming offering >> it doesn't look like the pace

of increase in the economy has slowed down. you always have the weather factor >> it doesn't change anything we do if there was a blurring red light we would keep it dusting the same way we do >> people like oprah winfrey and jennifer aniston. >> they all have that everybody has two eyeballs and x hours of time they are sleep and work

i will think about over way i can to beat them to the punch. if i'm at a&t and comcast they are trying to make sure apple doesn't get part of their territory. >> he is skeptical about apple tv plus although the others and most importantly any news streaming service can make that much money going forward that he still likes apple. he does lots of things incredibly well. you don't need every thing they do >> yeah. sort of couching in case it is a mistake. interesting to hear the

skepticism towards services and the fact that it is highly competitive. as for the slowing economy it is a reminder you don't have to make the daily stock moves base add around where you think the economy is headed. you catch that also. the economy looks like it is slowing whether or not he sees it in the railroads he has all sorts of businesses. it doesn't impact what he is doing with the investments >> apple down about 1.4% this week speaking about his airline and investment in delta. >> they announced they bought in 26 or 27 million shares and borrowed a billion dollars to do

it the airline industry has been so safe it is unbelievable there is a problem with this 737 -- the boeing even they are staying 24 hours a day to getit worked out. >> let's bring in david. should investors follow buffet into the airlines right now? >> i think the airlines are actually in the worst situation they can be in right now it will get better from here you have fairly aand we remain bullish on the second. >> do you want to have exposure to domestic or foreign players i think across airlines we have

definitely seen more exposed towards domestically oriented companies. it is around trade concerns and lack of a china deal people have been more bias towards domestic i would expect some to actually look more interesting. there's much more pessimism right now. >> on buffet you covered the airlines very closely. how much do they enter into the conversation always take overabout whether he would own an airline >> yes the retail investors that i hear from, the ones that i hear from, they bring up things like well, will hebuy delta i saw it on social media everybody is talking about it. you hear it and grow okay. let's dial it back and have a little dose of reality here. i think they look at buffet

owning the four largest air shrines as an endorsement if you will, that he believes in the business model now stocks are trading at a huge discount relative to where people would expect them to be with profit blt they are seeing right now. i think within the industry they look at buffett as almost a stamp of approval. >> what do you think about the boeing 737 as it relates to the airlines will the cost be covered by boeing for those airlines that have big fleets? >> i actually don't think boeing will be in the business of reimbursing the airlines for lost use i think the airlines are much more interested in getting the disruption to their business and fleet and network plans. there has been a lot of talk and discussion as far as i understand and when the aircraft is delivered with an air worthiness there will be

issues around a specific incident and liabilities around that as far as losses for grounding because of regulatory concerns i think it's something that everyone is more interested in getting fixed as opposed to argues over two will be compensated for. >> speaking of airlines we have got to talk about iceland's wow airlines unexpectedly stopping all operations does its mean they are no longer going to be a trend? >> you know, if you look at the data in terms of how many seats were added out of iceland over the last two to three years it's ridiculous so it's not a huge surprise with what we saw. it is not good for people who are stranded but not a surprise

given the business plan that they put forth >> i guess it's not the only low cost european airline that has had trouble recently it is looking pretty strong. also easy jet they haven't had the best last couple of quarters is this a turning point to see it back again? >> i think it's more a case of whether or not there th is a wake up call to the low cost carriers who have added so many seats at ridiculously low fares. it makes you scratch your head and say how long can you do this how long can you add $99 fairs from london to boston or something like that? at some point you would think they would say uncle i can't win in this game

>> a lot of people think it will be a big hit to iceland's tourism. thank you. >> thank you >> be sure to tune in at 6:00 a.m. for more of the interview with warren buffett. en steve is joining us with a look at highlights >> yeah. two key fed speakers are the ones to focus on speaking of policy, neater supporting the growing idea of a fed rate cut but neater leaning too much against it either.

saying we can afford to be patient. in the future we can -- i'm sorry. in future meetings what might be necessary. moving on from that john williams he is watching it here is the way that the market of 59% probability of a rate cut in september going up all the way to 74% in december so far the fed seems content to let the market sort of find its own way. maybe future fedspeak pointing them back to where the fed may want them to be later on.

>> you came down to 2.2% if you're the fed and you pencilled in 1.8%, 2.2 is 0.4 above that they see that as strong. that's where they think the economy is going to do this year they have 2.1 as a congress census right now >> thank you >> pleasure. >> still ahead, lyft expected to price the ipo ahead of one of the most hotly anticipated offerik with an investor next the-year-old curve on wall straet jeffrey's strategist says they

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let's bring in for early lyft investors good afternoon to you. thanks for joiningus tell us about the rough evaluations at this point. the ceo has been following ride sharing since 2008 it was a little too early at that time. in 2012 uber started to pick up traction we felt like it was a triem where ride sharing would become something. there was competition in the

market we felt like lyft was the best to take on uber. it was more like competition is really good for shareholder values so we felt uber and lyft were pepsi and coke >> is it a duopoly >> yes right now uber is definitely ahead as far as they are a larg larger company when we invested it was 2015 it was 1.8 3w8 dollars at that time we felt like it was going to lyft >> is there anything we are doing? it is like food delivery you would like to see lyft do? >> it is a great question.

we absolutely want them to stick to their vision. uber has its idea of trying a bunch of different things. uber is doing well. we saw them raise the pricing range. the $20 billion evaluation, it's such a premium of where it was valued were you surprised to see that >> no. when they filed in december of last year weactually ran some

numbers. day have a harder time i think lyft is being conserve tifr >> even if they are being conservative >> it will be over 20 billion tomorrow how are you thinking about that and whether you want to take some profits >> well, that's a great question first of all like many we do have to wait sixmonths >> if it stays at 72 it would be enough to sell down half the -- >> yes

>> do you think it is profit blt for this company >> yeah. we do. 80% of the company went public and they weren't profitable. they hit their targets or higher and popped 16% a lot of net losses are noncash. of a lot of it comes from insurance. their number one initiative is to get that insurance down they pay for all of the insurance. so when market sharing becomes more mainstream and insurance companies can wrap their head around it they will start to ensure drivers directly. is that a bigger opportunity for other tech companies than it is for lyft when you consider t

tesla? >> yeah. it is a great idea i think we are pretty far out from that. i think we need to focus on getting market sharing in the u.s. one city at a time. they are trying to compete by having their own distribution center in vegas. they also are buying up stakes and trying to play with the big guys as well there could be some acquisitions there. car companies sit transportatio as a service >> thanks for joining us enjoy the ipo tomorrow i think it's 12 times your money you made

>> yes >> i'm sure a well deserved celebration tomorrow don't miss first on cnbc the lyft founders 8:20 a.m. on squawk box you don't want to miss that. it will be a fun day we have just under 40 minutes of trade the spread today on the dow plus 120 down 150 we are currently up about 17 points still ahead reported merger talks. details coming up. >> plus retail gets a boost after strong earnings from lulu lemon. we'll get another read when restoratn tethbe the future of technology investing lies beyond the tech sector.

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we'll talk about the flood of names still in the pipeline. >> we spoke with europe's anti trust kplicommissioner >> we take complaints serious, some from european companies and some from u.s. based companies it cannot go excluded but it remains to be seen >> when i asked her if it was her last no kplimt there more from that and the attorney general the actions the u.s. could keig aerhe eak. rhtft t from the start, the c-class was ahead of its time.

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in general it's a positive day. it is up about 0.3%. we are up as a whole despite a lot of of discussions. time for cnbc news update. >> thank you very much let's tell you what's happening right now. education secretary grilled on capitol hill in front of the senate aproappropriations committee. defending the special olympics >> my heart is with all students for their futures i want every student to have opportunity. >> holding a news conference regarding the power ball the ticket was sold in new berlin the winner has 180 days to step forward. >> we don't know who the winner is yet

we do congratulate them. we asked them to please sign your ticket. that's the most important thing they can do right now. >> wow that's the cnbc news update at this hour. book you >> so you only get 100 -- do you lose the winnings? >> i guess you forfeit it. >> can you imagine if you misplaced it >> no. >> it would be just -- >> it would be tragic. >> thank you >> thanks, guys. facebook shares dipped lower making a bit of a comeback after the department of housing and urban development charge with housing discrimination earlier this month facebook announced it would remove age gender and it comes one week after the eu fined google for violating anti-trust laws. earlier today i spoke to eu

commissioner about the impact. >> what is poornt is the change of behavior for the future we do see some change when it comes to google shopping and the android decision with android they have said they will make a choice screen available to be able to directly choose another browser or another search engine if that's their choice >> companies face growing pressure is more government involvement the answer joining me now is mike isaac mike, is this going to become a cost of doing business for these companies paying hefty fines and having to tweak some of the businesses around the edges? >> yeah. i think the days of moving fast

breaking things and creating any sort of products you want are starting to come to an end you know, probably for like 10 or 15 years there hasn't been a ton of ftc oversight into how these companies are operating, what their products do and even the big acquisitions they have made i do think there is going to be heightened aggression in steeping up some of those regulatory efforts >> attorney general is the eu ahead of the curve here and a leader in regulation that should be applauded the short answer would be a little built of both it is not only some of their anti competitive behaviors and how they hospital miezed search results. the other concern we need to

start talking more and more about is the dignity of all human beings and our information and personal information that's being collected, stored and used by these companies when you get these big tech giants like amazon and google that are collecting all of this data and buying and selling without our consent, without our permission i think it's something that's very troubling as well. what it resulted in is this mass accumulation of power. >> well, again, you know, europe has a privacy law. the u.s. does not. is that where we are heading can members agree on such a thing? >> yeah. it's interesting because i have been curious as to whether or not, you know, you and i have been following this far while. a lot of folks are more closely scrutinizing these companies but i wonder how much normal people can appreciate the tradeoff between the cost of their privacy versus the convenience of using these services.

i think for the past year or two people are starting to recognize how granular the detailing is and how much they being shifted into using these companies products maybe folks are not as comfortable with that and maybe offering better privacy or data portability might be a selling point for companies like with apple which even this week has gone to say how much they value user privacy >> to the sort of first question do you think the government and legislators need to act? there is a difference at backward looking fines and to be proactive moving forward >> i put a lot of faith in

myself and my colleagues in the attorney general to use our consumer protection laws to make sure we as consumers have the maximum amount of clohoice and that companies aren't out there scraping data that harms artists and the media and our ability to get information. that's one of the most important things when we start talking about manipulation about private data what is happening is we are being manipulated. we are beingnudged we are bein nudged in a certain direction. i think it's very problematic. we saw it happen in europe you don't need a weather man to know which way the wind blows.

so the big companies, i think the markets are responding to the fact that you republicans and democrats and conserve tifrs, everyone across the board for different reasons coming together saying something that has to be done this isn't right. >> that's kind of it it's all different reasons and different solutions. whether it is stifling other businesses here is what the competition commissioner said ability that listen >> for us breaking up a kbaen would be a pressure of a very very last resort it is of course quite a step to take a private company and say you have to divest part of this company for it to be established

independently. >> you know, one of the things, if you looked a few weeks ago and we reported on facebook and instagram and messenger and some are speculating it is actually in sort of preparation for whether the ftc wants to make an actual move if you integrate the back end structures that take tons of infrastructure it might prove facebook's case that you can't break facebook up because it's not just one app it's a family of apps i think they are thinking about it and trying to figure out how they can defend themselves against it

this is the united states. it isn't the eu. it isn't france. we don't want to socialize the internet we do know there are issues out there like this collection of information, our privacy rights. we know there is issuesover scraping data. we know they are provided safe harbor with some of the information being done one of the things we talked about is letting them know what information being collected, what's being bought and what's being sold and we can determine

what information can be shared your doctor can't call you and leave your blood test results and all of these deck companies are buying it and giving to people we have no idea who they are. >> thank you >> thanks. >> thanks. shares of lulu lemon, we'll break down why they are opt misic. >> we'll get earnings from rh. that is down 15% closing bell back in a couple. measure up? a cfa charterholder does. you've worked hard to grow your wealth.

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welcome back this is 15% surge following last night's. the company anonounced a 500 bu back national is a big factor

>> if those stats aren't enough 30% increase in new customers during the firstquarter. >> there is a wild debate on twitter between various cnbc anchors. planning to raise between 3,000,000,010 billion with a merger they say to be clear there's been in relation to commerce transaction. any speculation of this kind was wrong. further more we have not decided

to do a transaction at all >> i did not about it. >> yeah. >> saying that if this merger went ahead they would need to do between 2,000,015 million raise it has got up to about 8 euros this isn't going to help us. it is trading about 760 at the moment >> or that it wouldn't happen as

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we neehe here. it doesn't look good >> it has been another crazy done l of days theresa may will attempt to pass it for the third time. there are two big clangs she promised to resign if they back her deal and second she only attempting to pass the withdraw agreement aspect of it. her attempt to do this is to split to aim it is unclear whether it will improve her chances. sterling is down over the last two days

april 12th draws closer and they haven't legally taken no deal off the table. still above 130. >> today is a big day if they pass the withdraw agreement. late may is the and it goes ahead. most crucially they have said they won't vote with it. >>. >> you stay you're doing so well the focus would be next week set up emotion to say we will see it past. they couldn't seem to get any

majorities >> sum it up very very well indeed it's not really a laughing matter we have a on google and twitter. >> the department of housing tells me it has reached out to twitter and google to look into their ad targeting practices to help them understand if they are in anyway discriminatory it comes after hud charged in its targeted addpractices.

>> what would be the punishment? >> it tells us it is working to try to ve solresolve this issue facebook provides data to hud to allow them to understand exactly how this works the issue between facebook and hud is facebook says they don't want to give so much information about how their ads work it will reveal data. even though you talken away the ability for them to use discriminatory targeting terms we expect there to be some sort of settlement but it could proceed to trial >> joining our closing bell we have rick over at the cme group.

kate, looks like we are in rally mode it is not headed to recession. the last thing is that we have seen improvement on the trade negotiations not a deal yet but all moving in the right direction. it says to us the fundamentals are improving and stockings will continue to move higher. >> lots of fedspeak today. what is your interpretation?

>> you know, i'm not sure that -- >> rick, go ahead. >> i'm not sure that the fedspeak is what the markets are really concentrating on. we had an eight week bill go off of 239 we see it is because of the rollover due to the auction the big surprise as we finish up thequarter.

sit the nervous about what the signal really means. >> yeah. i mean it doesn't sound like it scares you that signal from the bond market if you think fundamentals have improved >> yes i think they are improved. while the three month and that is a pretty consistent signal of

recession. you get more as well as basically the inversion of the yield curve. i think there's a mixed message overall. we aren't seeing many signs of recession. we really need confirmation from over r other signs >> thank you both very much. >> still to come of course the close is just less tn hafive minutes away we'll be back for that from the start, the c-class was ahead of its time.

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e*trade has easy to use tools that help you get started. you like playing with tools don't you? 'course you do. ♪ don't get mad. start investing with e*trade. here are the major indexes for you. ton dow we are at 94 points. the high 120 and low is down 50. the lows a couple of hours into the trading. materials at the top consumer sectors also up there bottom utilities and communication services and real estate and banks higher today. going to show you two weeks of

the ten year yield that steady slide has sort of plateaued if you look at the bottom >> bond yields didn't go down. we were flat on the ten year and ton other ones the market stabilizes. still influencing. it was a bank-lead rally today all of the regionals are up and put up the usual. >> it has been a great quarter stocks are up.

all of the bond funds are up. nasdaq is up back to up you welcome to closing bell. mike joining me. take a look at how we finish up a strong day on wall streets stocks bounce back and yields stabilize. the s&p closed higher by about a third of 1%. the strekt was in materials. financials today had a good day.

industrials too. communication services having a great quarter up for the last three months here are the stories on radar. lyft set to price the ipo any minute now buffett weighing in and we are awaiting earnings from home company furnishings. we are set to finish up what has been a remarkably strong quarter for stocks looks like a high day. the first day of march closed at

2803 it is the first time it nosed above that level this year it doesn't necessarily look like much net progress. so here we are i think what it tells you is it sort of used up what we could, the fact that we got to a fair evaluation it is a matter of defensive sectors. the song market had to weather this buying frenzy on the second week of april we start to get earnings. until then we have been focusing

on all of this and wondering what are rates really telling us it is not really that new. obviously the slowdown is the key. i do not think we are in a recession. i think a lot of the rates and the direction of rates is all of the central bankers being very loose. i look at why i say we are in a recession i look and consumer is doing pretty well. the data mortgage rates which you guys have been talking about all day, that is is -- that is to follow.

>> if you look technology is on top of the s&p the second best is real estate it is sort of defensive. the third is energy. that is part of the story there. so what kind of pick clture doe this paint >> it is various forms of defense. it is mostly in the beginning of the quarter. if you look i look at this list every day cht it is defensive type stocks. it is not just conservative. a lot of it is very good growth stories like aulta >> today was interesting >> stable cash flows that's what the market

gravitates to when you're having a little bit of isgivings. >> nay get rewarded and both lulu were a bit controversial heading into the quarters. a couple of downgrades on both companies. they get rewarded for sure i do like the consumer a lot as i just mentioned with rates going in their favor there are other parts of the economy that are very attractive there are pockets that are doing verywell

were were talking about the rate hikes. ithink there's a little builtover unease in terms of how fast the story has clanged even though the reality hasn't clanged all that much. we'll be a little under 2 for this thwarter and we'll see about -- >> part of it could have been a reaction market telling him he made mistakes. stop it with your forecast >> yeah. and he said okay we are going to set you up for another one. you're not going to cut rates fast enough. >> let's talk about lyft.

sit an initial market cap of $20 million on a nondiluted basis. it is $15 billion as i know you have been talking about it now there has been a lot of demand this offering was over subscribed very early on remember, this is mostly constitutional investors so they may be willing to overlook big losses and very uncertain path we will see tomorrow how the broader markets and how retail investors react, guys. >> thank you very much for that. clearly the demand has been very strong and pricing range has gone towards the top of that what does it say about it generally? >> i think it says for one thing

this is a pure play and a huge piece of the economy they did not have direct access to it will have a built in demand for that i think they want freshideas. >> would you buy it? >>. >> oi -- there are pockets that would buy it growth funds would buy it. analysts would buy it. i think 10% would be -- i think the stock stakes off until they report earnings. we'll have to judge it on the fundamentals it is a duopoly.

marginsover mid-30s. i have a great reputation. everybody knows and everybody knows the story and you have this and you have uber they are not exactly the same. this is what you know. like mike said, evaluation is not going to matter in the near term eventually they will have to deliver. >> and it will be interesting because you are going to have them look and they want to model out a path of profitability. they were told by private backers to spend a lot fast to get huge then we'll worry about the rest later >> so they have to transition. zb and their guidance is to go from mid-30s to 20 so actually their guidance implies this is what they will

do thigh have to invest for their future >> you said the first couple will be when the lock-up ends. they are locked up for six month and did imply they would be taking a reasonable amount of profit it will be interesting >> my take up is it matters it is because of fundamental problems >> a lot of them are so big. >> they also got in super early. we sat down with warren buffett. listen >> entertainment is a game that's really -- the big players are in it. apple, you know, i would love to

see them succeed it is a company that could afford a mistake or two. you don't want to buy stock in a company that has to do everything right >> so a huge shareholder he is not so you sure about the latest move. it is very competitive still backing audiotape l they could afford to make a mistake or two it reenforces that it is a defensive and however they are using devices to be a part of it i don't think the stakes are particularly high for apple wells fargo tim savings and loan is to retire.

this is just hitting and crossing the tape. of course he took over in october 2016. >> this had gone away more recently a lot of people pushed back and said they weren't looking outside. no plans to hire anyone. it is being called as a retirement stock jumping 2.7% after hours let's bring up a chart of his share price versus the bank index. i say there's sort of three factors that have been influencing whether or not he would stay in place it was felt someone internalwould be best placed to sort out the problems. most of those problems have been

sorted so that protection was removed it continued to underer form than it had done initially also the time line when it might be removed has been pushed back a number of times. this subpoena a retirement, not anything else. a constant stream. i talked about how he doesn't deserve the job. he he was there during all of that i feel like they have some bogus report >> and you're absolutely right to bring that up jim cramer said even if you know

and you believe you're the right machb for the job, if this continues because the he said he was the right man for the job. the share price for all of the banks very have been. >> it's been a long time sing. you you can call it a retirement so maybe it was a crying uncle and like he was to be let the dpaen. >> the you you.

>> are you app if this there with many problem at p to grow this dpaen and credibility in terps of pi p but to have something luke that in the a good fp i think it's good m i think the stock is kaupg we think that's oneover reasons

what i i moi i it. gym your view if. >> in can envie are you'll see what why he resign oo look m. tolt not doing any job as oh to ez being sha that isn't us a an informed opinion, you know, i work for shareholders and on behalf of the board. i'm exceeding the expectations >> he said he told me today,

look, i'm the reason why i have become the reason. i have become the hot button to make it so that the bank does not get its due. it was pre2i clear once he found out he took action on it and passed him up for critics in washington but tim felt he became the flash point it is a guy tim brought in we were talking about that warren buff warren buffett that's not what mattered >> and by the way, there's a

quote here making it pretty clear they are looking to the outside here. we have many talented executives the board concluded seeking someone from the outside is the most effective side. pretty blatant knowledgement around look, warren is running for president. i mentioned that warren was never -- she was going to run on tim sloan. she was dping to run on this is a man that kept his job despite the report where it is not exonerated tim got a bad hand he turned it into a decent hand. people will say i got buy the

bank stock right now they getting it outside. it will make it so they do not the way they do if tim stayed. >> a good point as well to bring up sarah and going from an outsider next. mac is head of kplaunty bank and was in a different role at the time of the scandal. an outsider definitely placed that the former contender who lost out to daifrd has been -- >> he shot that down didn't he >> not recently. it is a big retail bank. the other question for them is who is the optimal candidate

it is hard to pluck someone from the big five or big six. we'll have to wait and see about that process coming forward. i would also add the company is definitely framing as this was tim tim's decision to retire i think it increased the pressure >> there's lots to collect from there. there's a lot of people i think would love this opportunity. >> i think plenty would love the opportunity. a lot of the difficult heavy lifting has been done already. the biggest thing is can they get that lifted and when that was thought to be a short process there was no reason to pro move it on >> it is kind of interesting you kind of want to own stocks that have potential catalyst it was one that you plementione you have c-car

you them doing anything right is a potential catalyst even thoughhe did a good job it's time for clang. >> when i spoke to i keep talking about all of the ler in the ends this download kr you can't will is nothing new there. the it's same old gang

no malter how great a job they did they were front and center when democrats took over i think i could argue that was the tend he did ask about that. >> i'm sore are does tim tim subpoenaslep have i kim in once, prk the whole worl was ma mad when i when i preponderance i'm

very eric measuring prk ark tb hrk -- >> okay. did she have to ask him about three times to get the answer. i don't know whether that was because -- >> he knew >> would you call your biggest shareholder before the amounsment comes out >> also said it was politicalty sensitive. >> it was about a 10 second delay. >> we spoke about it well, he said i want that great endorsement fund

he said later there will be news that's the way it is no i don't think anyone knew. it was embargoed wow. >> let's switch whether it is specifically wells fargo the evaluations you were fauking about last night >> 7.9 times earnings for goldman. it had ten men downloads you have morgan stanley

you can't give these stocks away >> i know. >> tell me what it's like to be in the houseov of pain >> house of pain >> the house hasn't been at bank i an and february were horrible. i like it 3we9er seasonally they soul do beer they are that i knowing, i think he has something to prover and i think he will. >> yeah. that is an acquisition to get all of these to be able to get them into stock programs and

handle it. he stole the company in the end it was like wow waters, they will be called down by the way when goldplan is called down they will not get the congressional medal. >> they are trading stocks until you get a yield curve. >> i rarely disagree with stephanie. i think it is as big as the costco card will be. remember how we talked about losing that business to visa city >> tim sloan will be retiring.

the stock is up 2.7% after hours. the you agree with that move >> a lot of people feel that i will be over i think we'll start doing a lotd more business some pm rkt mer on her last story. it. >> you know, tim tim did the job. as lodge as hoe was there sflart warren will never stop talking about him. it is easier the bang wik will do better if you're not being roughen into the ground by senator arren.

>> how did he put up with it >> he was a jengentleman, right >> yes >> as the statement makes clear and as the statement also makes clear they are looking for an external candidate stick around we have jeff sonnen dcfeld we were saying how long he has been under pressure. >> this is coming right under the warren buffett endorsement that this i think it was a shock to many. i actually have been in touch with tim through the weekend we are going to have him sit nextweekend it is incredible

any bad news it was not the office of the control of the currency he was the one turning rocks over his pred seser was as tim sloan was bringing it. he was a cfo that didn't know he would be with cfo. >> i think it was a cheap flow i don't know if he wanted to go kwielt that far. i'm not sure who else joined her

crusade. i don't know if they are done. thank goodness he doesn't pick on mistakes at gm. >> i have flown you sings you were six years old >> wow >> and the only difference >> he told me i was right. >> you know i hope he still goes to your panel. yeah he was the scout they decided. he did not do what the bank did wrong. every single thing and what he didn't fix they gave him a giant bonus. i'm disappointed with a very

good reporter i there are a enough bad guys to toe ks on be it is for the simplistic one we have general and prior general counsel. this guy i done believe -- >> you're right. what does it mean? >> this. >> final word, what it means for share to to we i done think

about the ks rei >> i have known you for a long time i was thinking maybe going another direction there. you know, he retired from morgan stanley a couple of minutes ago. >> yes >> i do wish tim well. he was not part of this. i thought he was doing a good job. >> thank you very much we appreciate it we look forward to mad money which i know will have 4r09s more only sis on this. before we go back to jeff i want to ask a different perspective because, yes, all that was said was correct. you needed to have an internal person fixing those problems

he knew where the issues were. seems to me a lot of issues have been fixed not every one of them but you can have somebody come in and think about growth again, right in hathere. >> wasn't download a reputational hit on this company? we have had the cfo. he says yes. >> that's why it has compressed almost 60% you could not have put somebody with somebody that had been done nobody knew what all of the problems were. you needed that.

now they are fixed now the company moves on >> whether it is more generally are there issues or earnings themselves slightly dus disappointed all of 2017 and that continued in 2018. come back to you in terms of what you think the board should be looking at. >> yeah. >> just a quick final four >> we still have you on tv >> you do? >> i have jimmy dunn here. i was going to get him onto join but i was calling you guys >> somebody who hits the ground running, i think there are terrific people out there that would bring a sense of presence

to it. it is sort of like where you have a really good understudy there that steps up to the job that is well franed and a great successor. he became a fantastic communicator some times people get caught i think it would help. there have been morgan stanley people the ideal person maybe they could still get them in all seriousness. they should probably try to buy greg flemming. he would have been the guy to take over bank of america were it not for the fact that he is the guy that sold them merrill lynch. he is one of the smartest in banking. he had been the president.

he had been the president of morgan stanley he run the investment banking and retail sides it might cost him to buy out rockefeller to get him >> he would be a good second choice he is extremely well regarded. all dressed up ready to go you know we have a large shelf of youngest ready to go talent in the financial industry.

they made important clangs there. thank goodness they did. it is the heros and a very sturdy management team this is being done fwi optics more than it has to do with any hard stub stance there is nothing wrong with the job tim sloan was doing. if they want somebody to throw it back that's fine. tim was out there solving problems rather than grandstanding. >> after hours trading how much of an underperformer has it been since the scandal started to unfold? >> it was always given the benefit of the doubt it had a premium evaluation. the best franchise in the huge part of the country that was

we'lly a wealthy and fast growing we knew it was not necessarily all it was supposed to be. i think you can make the case that the public outcry against wells fargo was disproportiona e disproportionate he had that few years to do it and you move on from there >> what took so long the political pressure has been building for a long time the bad news trickled out far long time. it has been years. >> exactly it might not be that there were a tonov of wonderful candidates >> it didn't help wells fargo.

general performance of wells fargo versus some of the other financials >> it went from a premium to the discount to the group almost overnight. there is still a lot that can be done in terms of improving the efficiency and we are nowhere near it. >> absolutely. >> there is a lot that a new ceo could do i think a lot of the ugly chichks i think most have been fixed, some of them have been fixed. in serms of returns, balance sheets, difr dend. the yield is quite nice here >> yes >> it is one of the highest in the gruch. that in itself is very

interesting. >> in the last three years they have underperformed by 30 percentage points. >> they have always said the facts of act sh not lending but they brought back. >> and this is a the preponderance which was an unpres it was we can't leave and not have done something more major. it was placed in october of '17 originally said late 2018 would be lifted.

is names that have been out there for some time. we mentioned the other ajengent that has been linked is gary cohen. the swing factor that may have increased is now that he knows the job is available maybe he would be little more open. he is certainly ruled it out in the past and said he is happy. rich dhard there at the ex-u.s. bank and the current pnc ceo all names that are out there

i don't flknow if there had been background conversations it meeans he was in favor. i think they want to have a full sit down and go through it as a serious process. they have time and the ability to do. >> it will be an outsider this time >> yes >> we will not do what we did last time. so are they putting it finally behind them after several yearsover skon dals and hearings >> i think the worst is behind them there is a lot of wood to chop the point that i was trying to make earlier is that's lot that can be done to fix this company and get it back to the top tooer bank that it once was. it will not happen overnight under sloan much more than any other bank a lot of that is not macro

it is company specific add it on and it has been a terrible stock the first was will they ever have that superior growth rate again. it was largely driven by illegal practices. the second part is this is taking much longer than we thought. so probably only half of that is recovererable. >> i took half of of it. it is perfectly fine by me i would rather it be quality growth rather than whatever you want to call it. if it's quality growth with better visibility and strong returns which i think they can get to but a higher level than where we are today i think it's very positive. >> we have the president making comments moments ago let's listen in.

i can say we are doing very well with trade talks with china. our country is doing great if you look at other countries, if you look at what's happening the economies of other countries we are leading the world economically and leading the world as far as our economy is concerned. things are going very well we are very happy.

>> reporter: [ inaudible question ] >> the special olympics will be funded i authorized a funding to the special olympics i think it's incredible. i just authorized a funding. i heard about it this morning. i have otherwritten my people. we are funding the special olympics >> reporter: [ inaudible question ]

>> i hope everything goes very well she is strong and tough and in there fighting >> reporter: [ inaudible question ] we have 29 billion to texas and 12 to and puerto rico has been taken care of better by donald trump than any other living human being. they have to spend the money

wisely they are not spending it wisely. i'm giving them more money than they have ever got i have a great relationship with them i think when it comes time they really do appreciate it. >> reporter: [ inaudible question ] >> so obamacare has been an absolute disaster. i have asked who is a terrific health care person, rick scott

and others to take a look, form a really great plan. we are winning a lawsuit to -- we are winning the texas lawsuit and right now we are on the winning side hopefully we'll win at the appellate division to terminate obamacare. it averages more than $7,000 obamacare has been a disaster. we will take care of preexisting conditions better than they are taken care of now. the individual mandate is the worst part of obamacare. so wait a minute we are working very hard on that we are great people.

we put together a group of four or five. it will be far better than obamacare. if we win in obamacare it will be terminated in the court and we'll see what happens >> reporter: [ inaudible question ] >> we are working on a plan now. there is no very great rush from the standpoint we are waiting for decisions in the court we have already won the case against the obamacare. we'll go and see what happens there. i think we'll win. it is in texas wait wait then it goes to the supreme court of the united states if the decisions are held up, if we win on termination of

obamacare we will have a plan that's far better than obamacare including very importantly preexisting conditions which i have always been in favor of >> reporter: [ inaudible question ] >> well, i think the -- i think the case in chicago is an absolute embarrassment to our country >> president trump just moments ago chatting with reporters, taking questions on a range of topics from obamacare to trade talks. let's get to eamon javers at the white house. >> reporter: yeah, that's right. the president there on obamacare suggesting that if his administration is successful in reversing obamacare in the courts, they will have a plan that's better than obamacare but conceding that they don't have a plan now saying he doesn't feel rushed to get anything together soon because it's working its way through the courts also on china trade, sara, the president was asked whether or

not the mueller report's conclusions help his case in the china trade negotiations he didn't dismiss that idea but also said i can't tell you what's in the minds of the other countries that we're negotiating with, sara. >> eamon, thank you very much for that. let's get back to the breaking news. wells fargo ceo, tim sloan, is out. elizabeth warren saying about time he got rich off of it and then helped cover it up now let's make sure all the people hurt by wells fargo's scams get the relief they're ow owed. >> let's bring in an analyst at kbw who has an outperform rating on wells fargo and $58 price target what is that going to mean for the stock which is popping

almost 3% after hours? >> yeah, thanks. certainly was a surprise for us given the board just commented they had full support for tim sloan a week ago i think the knee-jerk reaction is the stock goes up overnight but longer term it raises a lot of questions more than it does bring answers to the company. >> why, because they haven't announced the successor or because there's more bad news to come out. >> yeah, the potential for more bad news to come out given the suddenness of the ceo departure. it certainly things in the questions whether or not they'll be able to continue to execute on the plan that they laid out for investors. i think a new ceo will wanting to put his stamp on the company, so you have to wonder if they'll be able to continue to deliver on expense savings, especially if they are cutting expenses in an area a new ceo may be wanting to grow. one of the areas that does help is the regulatory side of the

business obviously there was conflicts with the regulators. the regulators were openly making comments about wells fargo, which is highly unusual, so there was certainly a fragmented regulatory relationship hopefully a new ceo will help repair that. it could help slow the revenue decline. certainly wells has been losing market share since the scandal has emerged so this probably helps change the rhetoric around the company. probably too early to see revenues pick up but with a new ceo they may lose less market share moving forward. >> brian, i'm interested in your point that you fear there may be more bad news to come out. what sort of ilk >> certainly they have the asset cap in place the ceo commented they're expected to get out of by year end. maybe that will move beyond year end. that could be a catalyst with regards to managing regulators

from that perspective. >> okay, brian, thank you for joining us price target of $58 from kbw on wells fargo. we are still expecting lyft to price its highly anticipated ipo at any moment. it's expected to price between $70 and $72. that was a boosted raininge from what we originally got chairman robert, how does this ipo period, this frenzy, this stampede of unicorns feel to you versus other periods in the past where the ipo pipeline has been robust >> one, it's great to be here today. i certainly think the ipo market has been really strong over the last two years i'm sure you remember all the predictions that the ipo market was doomed to really be delayed forever, because companies could stay private longer. we're finding out that what you get from an ipo is an essential

part of the company's life cycle. since this ipo is doing well, i think it's important and will encourage others to come forward. the ipo is the only way for investors and companies to enjoy a permanent relationship or permanent capital relationship >> robert, are you suggesting that the retail investors aren't going to get the best part of this company's life, that it stayed private too long and evaluation is more of a stretch? >> no, i didn't suggest it at all. i'm really suggesting that the predictions of companies not coming public are proving to be incorrect. and certainly when you look at a company like lyft or anybody who's innovating in the space, they could have tremendous growth in front of them. we've seen that with other companies that have come public somewhat later in their life span i don't have a particular opinion on lyft, but i know many companies really accelerate their growth post ipo as opposed

to pre-ipo. >> bob, there was a line that the private markets were so deep that indefinitely companies could stay that way and not worry about an ipo what do you make of the fact that even if that's still the case, you have this many large companies deciding that they want to open up to the public markets. can it get to a point where it has negative implications that they're doing it now >> i think it's fundamental to understand companies that are private are permanently funded by either venture capital funds or pe funds. these are funds that have a certain life span to them. at a certain point they have to return liquidity to their investors so there's always a ticking clock. that can go longer than it did certainly 20 or 30 years ago, but the clock is still there it's also important to recognize investors. once you make that investment decision, it's important to know how you can get out. to get out of that investment. you make that decision to buy,

you also want to be able to freely make the decision to sell the ipo allows that to happen. clearly you see these companies recognizing that fundamental terminal state ipos were invented pack in 1602 with a dutch east india company. they persisted for a long time it's a great innovation, you'll see it continue to persist and succeed. bob, when retail investors come to you and say should i buy into this ipo, is this a good one, what do you tell them how do you judge them and do you think lyft qualifies >> well, i would say this. that's not my walk of life, but clearly a retail investor, any investor has to do it in the context of their overall portfolio. any time you invest in a high growth, high risk asset, you have to make sure that fits in the right part of your portfolio. so there's no right answer for any one mythical retail investor so clearly we know that people

have done best by investing in equities over a long period of time, and clearly we also know at the end of the day companies are going to be worth some multiple of their discounted cash flow. so you have to do deep analysis to understand, one, the value of the company and most importantly the value to you in your particular phase in your life. >> bob greifeld, thank you for joining us. >> i appreciate it. >> the former chairman of the nasdaq don't miss an interview with john zimmer and logan green tomorrow 8:20 a.m. on "squawk box," the day lyft goes public on the aforementioned nasdaq we got a lot there. >> wells fargo jumping about 3% after hours on the news that tim sloan will be retiring as president and ceo. looking for an external candidate now. stephanie, the initial jump is one you understand because you think this is -- moves the company forward. >> it absolutely moves the

company forward. we have a lot of catalysts ahead of us and that's a good thing. now we just need the yield curve to help us which i'm not counting on. if i have special situations and a special story within the banks, that makes it attractive to me. you have to have specific stories. you can't just buy the broad-based banks. >> i do think perhaps it raises a little suspense for the earnings season for wells fargo coming up, just based on what we were just hearing. we're not quite sure about the timing, not that anyone thinks it's a huge smoldering issue, but you might wonder how they characterize things. >> the other point i'd say as well that kayla tausche rightly highlights on twitter is they have appointed their general counsel as interim ceo. >> when you retire but the general counsel is baby-sitting the company. >> another way to frame that is they do want to make clear that the next successor is an external candidate if they put mary mack as interim ceo -- >> you want someone who's not a candidate for the job. >> by the way, the politicians

continue to take victory lapse on this one. we saw senator elizabeth warren, now shaerrod brown, banking committee, also saying tim sloan needed to go by the way, he should not take a huge payout with him he says. >> stephanie, great to have you with us for the full hour. >> "fast money" begins right now. "fast money" starts right now. live from the nasdaq market site overlooking new york city's times square, i'm melissa lee. check out shares of wells fargo. that stock is up about 3%, 2.5% after hours. ceo tim sloan says he will step down from the company. we'll bring you all the latest details. plus we are waiting pricing for lyft which is expected any moment as the company gears up for its debut tomorrow we've got full team coverage as the action unfolds. first we start off with a rockin' retail the group of stocks. check out some of the biggest winn