changing jobs. how do you see the current job market you employ 1.2 million people around the world the largest private employer will walmart always need that many associates with all the technology of -- >> that's a good question. i don't know for sure thatwhat this will look like over a longer time period but so far what's happening is new jobs are being created like the fernls shopers we're using for grocery pick as other jobs are being changed or in some cases eliminated so i wouldn't rule out still needing a really large number of people but i do stress that for us retention and training are part of our strategy if we can handle the rest of this through attrition because we're just not hiring these new people -- as many new people, we'd rather do that than to lose the people that have been with us for a longer period of time >> as we wrap up we talked about it earlier it was wrabd into several questions. but now we're going through the end of the year. how do you see it? >> i don't know that i can call the whole year i think as i mentioned before the consumer is in pretty good shape and net of all the pluses

and minuses that happen traditionally in q1 including weather i think the customers are about the same shape they were in q1 >> sounds wonderful. doug mcmillon, ceo of walmart. we appreciate your time with us here today i'm going to send it back to kelly evans. >> courtney, thanks so much. and our thanks to walmart ceo doug mcmillon as well. >> that does it for us thanks for watching "power lunch. >> "closing bell" starts right now. it is the final hour of trade. elon musk making a rare appearance at a manhattan federal court as a key hearing gets under way we'll have all the latest details for you. guggenheim's scott miner made a pretty bold call about cutting interest rates last year he'll tell us why he's changing his fed outlook in a cnbc exclusive. and it is a done deal. amazon's jeff bezos keeping control of the company as his divorce gets finalized we'll discuss what it all means for investors. "closing bell" starts right now.

good afternoon welcome to "the closing bell." i'm wilford frost alongside sara eisen. let's check in on the markets, which were at the lows about two hours ago but a steady improvement throughout the afternoon takes us back close to the eyes there's the intraday chart on the s&p. as you can see, up about 0.15% if we broaden out to all of the ipd sooez, the dow currently higher by 154 points the higher the dow was in fact 170 points the dow much lois closer toyotas highs and as prout performer of the major indices. materials the best performing erect. real estate and technology toward the bottom. >> coming up on the show morgan stanley manager ruchir sharma will explain why he's bullish on emerging markets and what specific countries he thinks are a buy right now. >> but first let's dive into the markets. bob pisani on the floor of the stock exchange with today's big movers >> a lot of trade talk optimism. the question is how much more juice is left in this trade talk

story? semiconductors big beneficiaries of trade talk. broadcom, micron and nvidia. the majority of their revenues come from china. flat to down today trade-related industrial names united technology, 3m, caterpillar. look at boeing this is a big mover today. in addition to trade hopes it rocketed up right out of the gate one analyst told me the ceo flying in 737 max last night was a help and the hopes for a software fix, additional hope there 60% of the dow's gains today are just from boeing ford gm. ford's sales fell 1.6% from a year earlier ford's suvs a new record there finally ipo market still holding up trade web markets. this is an electronic trading platform backed by blackstone went public this morning on the nasdaq

$34.26 that is a significant premium toyotas price of $27 you see trading right near the highs of the day 35.65 shares of tesla falling as a key hearing gets under way in manhattan federal court. let's get right to sue herera for the latest >> thank you very much, sara here's the basic story, everybody. the hearing is under way in new york right now in front of judge allison jane nathan. the s.e.c., which had an agreement with mr. musk, wants him held in contempt for violating they say that agreement by disclosing material information about tesla's delivery numbers musk is countering saying that's not material information that those numbers had been out there roughly in the past. the hearing has started and the lawyers for the s.e.c. have asked that he be held in contempt and the s.e.c. lawyer just said if mr. musk is held in contempt the s.e.c. will seek

additional sanctions to ensure his future compliance with that agreement. that could include additional fines for any future violations and required reports about his compliance from tesla's lawyers. mr. musk according to the s.e.c. did not get a lawyer's permission to put out these tweets, and he wiwe know he lik tweet. that's why the s.e.c. is going after him and holding him for contempt of court. he entered the courtroom building a while ago and here's what he had to say it was brief but take a listen >> i have great respect for the judges -- the justice system and i think the judges of the american system are outstanding. >> what about the s.e.c. >> yeah, your thoughts on that >> so you heard phil lebeau's voice back there he is in the courtroom, which is why i'm bringing you the update because he can't come out of the courtroom until the hearing has ended. it is expected to take probably about 2 to 2 1/2 hours but we'll bring you the headlines as they

get released guys, back downtown to you >> sue, great stuff. thanks very much for nap for more on the impact this could have on the company, joe osha from j & p securities joins us he's got an wrout perform on the stock. and gabe hoffman he is -- in his fund tesla is the biggest short position very good afternoon to you both. this court case is it a big swing factor depending how it goes >> i believe it's the least of their problems the s and the x combined were 12,000 unit. 40% miss they were down 50% the model 3 if you back out some information from the press release that was down 50% quarter over quarter i believe demand has peaked in the u.s. and tesla still has a big inventory problem. >> so joe, the stock has underperformed so far this year. it's down 15% in the last three months, getting hit hard today

how much of it is those fundamentals like the orders that gabe was just laying out and how much is just this overhang of what the court's going to decide and some of musk's legal problems. >> i'll tell you, i think the day that elon is put in a chief technical role and a better more steady operating executive is brought in the stock goes up i'm not a fan of the elon tweet show and i think it's a negative look, you know, two years ago if you told us that this company was going to be shipping 300,000 or 400,000 units this year people would have said you're crazy. i hope to be back on the show when they're shipping 800,000 units having this conversation again. q4 was abnormally strong p q1 was abnormally weak. but those things are going to normalize. model 3 shipped 50,000 units i think we're kind of losing the forest for the trees here. this company is growing. the segment of its business that it needs to grow

>> but joe, nonetheless was the number yesterday less impressive than you expected and if you saw that repeat for another quarter or so would you be more meaningfully worried >> to be clear i had revised my model 3 estimate to 50,000 units. i was off by 1,000 units so i was surprised by the s and x numbers and i do think the company's going to transition more quickly to model 3 and model y than we expected the driving force of this company is reasonably priced mass market electric vehicles and that's where they're executing well honestly the s and x decline is a bit of a sideshow. >> gabe, from your bearish perspective what's going on with the numbers. do you think they've got a real demand problem >> well, i totally disagree that the s and the x are just a sideshow it was about an $800,000 revenue miss two months ago joe and i were here on cnbc i said that on twitter and other places you could find pictures of lots that were real of thousands and thousands of tesla

cars, excess inventory, all over the country. and as we went through the quarter you could check state registration data, foreign country registration data. there's a lot of hedge fund managers and heck, even retail investors that do that on twitter. joe's got his s and x numbers pumping back up from 12,000 this quarter to 17 next quarter, 23 in the next quarter, holding an average price of $100,000. and i jordan what does he see changing and what is he going to change about his research process sew doesn't miss by 40% next quarter >> joe do i get to respond? yeah i'm flattered. but if you look at my whole year number for 2019, it's down from 12018, it's part of being an analyst, we saw this decline coming before they announced that's why i adjusted my numbers. it's a rap'dally growing business the u.s. weakened a lot. they shifted to overseas markets

and that was reflected in our numbers. i think we're trying to focus on a quarter to quarter disruption here and missing the fact that this company is growing very, very rapidly it would not be reasonable for me to say that s and x demand is going to grow in the u.s. this year i didn't have that before i revised my numbers, and i sure don't have it now. >> quick last word, gabe >> your s and x numbers have to go a lot lower overall numbers you still have 370,000-something units for this year which means that total you're projecting about 100,000 units per quarter for the next three quarters a 50% increase over what you saw in q1. you've got 2020 earnings went from 10 and change to 9 and change and the same lofty multiple i don't think that's realistic at all >> do i get to respond okay >> very quickly if you have one. i'm trying to get there. >> look, thank you i appreciate that. remember that what's happening here is the switch to export

markets. i think gabe's process is thosho and i actually agree with the idea that if it just the u.s. we'd have a problem. port markets have taken off and i leave with you one-1 one observation. 60% of the vehicles registered last month in norway were electric 60%. think about that that's what i have to say. >> a lost them were audis. >> thank you, joe and gabe >> three final words he gave >> it was a good debate. >> it was. it always is on tesla. >> jpmorgan ceo jamie dimon releasing his lengthy annual letter to shareholders today covering a broad range of topics including some hot-button political issues wilfred, what were the highlights >> thank you very much as you said, jamie dimon's 50-page this year analyst shareholder letter was as much about politics as it was macro or the bank's own fundamentals they included a wholehearted defense of capitalism. he said, "there is no question that capitalism has been the most successful economic system

that the world has ever seen." while he was also unequivocal on his views on socialism saying "socialism inevitably produces stagnation, corruption and often worse," adding that it would be a "disaster for our country as it has been in the other places it has been tried. that said, he spoke highly of social democracies which "successfully combine market economies with strong social safety nets. and he added that republicans need to acknowledge that america should and can afford to provide a proper safety net for our elderly, our sick and our poor the letter included a ten-point manifesto to restore america's fortunes and said that he and jpmorgan would take policy advocacy to the next level >> you know, there's so much policy and ideas there it's a political manifesto as we often get from jamie dimon we always run the question so is he running for president he's shot it down a lot. >> but a little more reporting on this particular topic, sara, from conversations particularly

in the last 24 hours but over the last couple of weeks and months as well. and i'd say that he is not running in 2020. this of course all according to various sources close to diamond. but that he did spend a lot of 2018 weighing up whether he should or not. the chief motivation for him is that he wants to serve his country. he explored whether it was viable and possible for him to run and win and ultimately decided around late summer, early fall last year that it wasn't possible for him to win because he couldn't get a nomination one of the nominations is locked up the other he thinks is not viable >> he actually did -- >> he did according to sources and that he felt he couldn't win the democratic nomination as a billionaire person from wall street those manifesto points we just went through he wants to be a centrist but clearly knows he has to operate in the two-party system and he fully rejected the idea of possibly running mid to late last year and he's focused now on what he can do on the policy front from his position as head of the business round table, being the ceo of the biggest

bank of america, ceo to 250,000 people and all of those points on policy in the shareholder letter are because of that. he's now trying to do the most he can to influence policy as opposed to being a precursor to going into politics himself. that is behind him now, that decision >> it's pretty interesting that he even looks at running >> absolutely. given that he clearly always denied, which you'd expect, of course i'm not going to, because that's the decision he came toumtly anyway still to come, guggenheim's scott minored, one of the first to bring up possibility of a fed rate cut last year, but now he's changing his tune. he'll give us his new outlook. plus begging big on emerging markets. morgan stanlist emerging markets analyst ruchir sharma tells us where in the world he sees value and why he's cautious on china sk d in ontinue to monitor elo mu'sayn court as a judge deliberates whether he should be held in contempt we'll bring you the headlines as soon as we get them. i'm working to keep the fire going

for another 150 years. ♪ to inspire confidence through style. ♪ i'm working to make connections of a different kind. ♪ i'm working for beauty that begins with nature. ♪ to treat every car like i treat mine. ♪ at adp we're designing a better way to work, so you can achieve what you're working for. ♪

woi felt completely helpless. trashed online, my entire career and business were in jeopardy. i called reputation defender. they were able to restore my good name. if you're under attack, i recommend calling reputation defender. and consider joining their groundbreaking campaign to give every american the right to remove old, inaccurate search results by going to righttobeforgotten.org.

vo: if you have search results that are wrong or unfair, call reputation defender at 1-877-492-6705. the latest inisn't just a store.ty it's a save more with a new kind of wireless network store. it's a look what your wifi can do now store. a get your questions answered by awesome experts store. it's a now there's one store that connects your life like never before store. the xfinity store is here. and it's simple, easy, awesome. ♪ emerging markets rallying this year. the index is up around 13% so far.

joining us now to discuss where the buying opportunities are, ruchir sharma, chief global strategist and head of emerging markets at morgan stanley investment management. he's also the author of a new book, "democracy on the road: a 25-year journey through india. ruchir, nice to see you. welcome. >> thanks. good to be back. >> so emerging markets in general as an asset class, are they still a buy after such a strong run so far? >> well, listen, it's been a completely lost decade for emerging markets emerging markets are still well off their all-time highs which were set back in 2007 in dollar terms. so yeah, we had a nice practical runout here, but i -- that's again happening because the fed has gone on hold and global markets in general rupp. the iger picture is this the u.s. stock market that's tripled in value over the last decade emerging markets have given you exactly zero return. and that's very disappointing but looking ahead that could be

the opportunity. >> in terms of the 12-month view, is this a china call or other smaller emerging markets your preference? >> i think the emerging market index today is extremely distorted. there are three countries there, china, korea, and taiwan, which account for 60% of the entire index. i think that's a big distortion. there are a lot of smaller and mid-size emerging markets which have got neglected in this washout we've had for emerging markets over the last decade so i would personally favor putting much more capital in those neglected countries, what i call the anti-bubbles in the emerging market tree >> we always used to talk about some of those emerging markets that suffer from issues like twin deficits. turkey was one of them indonesia was another. and that could lead to hollowing out of the currency and government finances. is that still a fear for certain individual calls of yours? do you avoid those aspects or is that kind of less relevant now >> i think that's where the

progression has taken place because what you're referencing to is the reason why many emerging markets have spoken about like ind yeeshz why they have done so poorly in recent times. many countries are well advanced in their adjustment process. indonesia has got a lot of these imbalances under control out now. even turkey despite all the political noise from there we're seeing that improvement take place in their external balances that's where these emerging markets have come. i used to be bearish on many of these emerging markets and countries for much of the last decade pu i'm seeing now that they made these adjustments and they're sort of progressing now toward what could be a revival in the years ago >> brazil really stands out lately it's been one of the brightest spots in the world it's gone on much more than this year least year too is that still the place to be? is it insulated from some of these other problems like tighter monetary policy or trade

issues >> instead -- what is still very much a globalized world, no country is insulated but the keys for brazil is the fact it is just about recovering after having had a terrible decade so i think this is the history of brazil. did brazil do anything absolutely not brazil goes up one decade and goes down in a decade. it's had its down decade it's setting itself up now for a bit of an up decade because the only way some of these emerging markets carry out reforms is when they have their back to the wall so brazil has had its back to the wall given all the problems at home and we have now a new leader out there who's trying to carry out economic reforms no matter how much the media sort of hates him and his right-wing kind of policies but at least on an economic side he's trying to do the right thing. >> ruchir, i want to switch focus from your role as head of e.m. to your role as chief global strategist.

the data oust germany this morning significantly disappointed is the euro zone still getting worse or is germany an outhigher and we turned a corner >> europe's been a case of serial disappointment over the last decade as far as data is concerned. but i just want to put something in perspective here about we compare europe, u.s. and japan and the u.s. economy has done really well and we think that both europe and japan have done quite poorly over the last decade in economic terms this one statistic which i really want to put this in perspective here in per capita income terms europe, jrngs and the u.s. have grown at an identical pace for the last decade. and that is a huge statement what it really tells you is the central problem in europe and japan is one of demographics, that their demographics are much worse than that of the united states but in per capita income terms over the last 10, even 20 years,

there is hardly any difference in the performance of these major regi snley investment institute. coming up, adidas signing on a new creative partner and here's a hint. could be destiny details on the new tie-up. mckenzie bezos giving new details on how she and jeff bezos are dividing their assets following their split. details on the new amazon ahead. you've had quite the career.

yeah, i've had some pretty prestigious jobs over the years. news producer, executive transport manager, and a beverage distribution supervisor. now i'm a director at a security software firm. wow, you've been at it a long time. thing is, i like working. what if my retirement plan is i don't want to retire? then let's not create a retirement plan. let's create a plan for what's next. i like that. get a plan that's right for you. td ameritrade. ♪

with 35 minutes before the close the dow is higher by just over half of 1%. 146 points nasdaq just lower. s&p up 0.1%. after the break, shares of snapchat's parent company have more than doubled so far this year and now the company's taking new steps to drive growth. we'll tell you about the changes ceo evan spiegel just outlined next and later guggenheim's scott minerd was the first to raise the possibility of the fed actually cutting interest rates last year. >> had this kind of a pullback in stocks. the federal reserve reacts they at least pause. about half of the time they go on and do a rate cut >> ahead, he'll tell us why he's changing his tune and now predicting a rate hike in 2019

welcome back to "closing bell." s&p 500's going for its sixth day in a row if we can finish higher as far as what's helping the market, the materials the best performing group thanks to the dow which is also driving the dow jones industrial average communication services stronger all day long seeing some strength in particular in facebook and some of the media names

alphabet's doing well. fang kind of day energy and consumer discretionary also up. real estate and technology, which is a lot of the chip stocks, are lower today. >> time now for a cnbc news update with sue herera hi, sue. >> hello, wilf hello, everyone. here's what's happening at this hour pope francis naming atlanta archbishop colton gregory to replace donald wuehrl as the new a archbishop of washington, d.c. and inso doing choosing the first african-american to be the leader of the diocese that has become the center of the sexual abuse crisis in the u.s. >> this is fraught with challenges throughout our entire catholic church certainly but o nowhere more so than in this local faith community. a high school in coral springs, florida was placed on lockdown as police investigated what they called a suspicious incident officials telling nbc news that someone reported a suspicious person near the campus but no

weapon was seen. police searched the grounds before giving the all clear. and cbs health is expanding same-day prescription deliveries nationwide it says it can now deliver medication within a few hours from 6,000 locations the delivery charge is $7.99 but consumers can also choose a one to two-day delivery for $4.99. you're up to date. that's the news update, guys i'll see you next hour >> all right, sue, thanks. shares of snap are soaring the stock is up more than 100% so far this year and moving higher today after ceo evan spiegel this afternoon laid out his plan for the future. julia boorstin with the details. julia? >> reporter: sara, that's right. evan spiegel here in los angeles talking to over 400 partners explaining how he's expanding snap to be an even bigger part of its users' lives with both additions and new partnerships, all designed to make the service more usable, more accessible, and to also go ad revenue.

now, perhaps the most important moef to go to the time spent on snap is a new game service it will be free with six-second ads. this opens up a whole new revenue stream and it goes up against the game services on facebook, apple and google second, snap is making a big move to integrate with other apps so users can share their snap stories to other apps like tinder and you'll be able to share different clips of shows that you're watching, say, on netflix back into snapchat snap also announcing it's working on an ad network to bring its ads into other apps that could dramatically expand snap's potential market. snap also stepped up its augmented reality lenses the goal here is to really stay ahead of facebook and instagram, which has pretty successfully copied its popular filters now snap is introducing the ability to track hands and bodies, even pets. also launching lenses for landmarks like the eiffel tower. now, throughout these announcements spiegel and the

other executives here have made a big point of how different snapchat is from facebook, with privacy protections and also very curated content not the kind of user generated content that has proven dangerous on facebook. wilf and sara, i do just want to give a disclosure here snap is one of the investments of our parent company, nbc universal. back over to you >> julia, does this suggest that they are being more innovative than their rivals at the moment? >> well, look, i think we have to say a lot of the things that are in focus here like the lenses are things that snap did before facebook did them they introduced these lenses the idea that you could layer things on top of the photos you that take of the world around you. and then instagram and facebook successfully copied them so the bar is always raised for snap to stay one step ahead of facebook another thing they announced by the end of the year is more premium content. facebook has its watch tab snap has discover. so snap wants to make sure that

its content is only exclusive content produced by professionals. they're not going to be mixing in any user-generated content like the type of content that's also available on facebook >> okay, julia, thanks very much let's continue the discussion, bring in nickabili bilton, specl correspondent at "vanity fair" and also author of "hatching twitt twitter. thanks for joining us. >> thanks for having me. >> what's your take on the latest innovations and the changes they've made in the last year or so share price certainly has kicked off 2019 with a bang >> i think that evan spiegel has a lot of things he's good at and a lot of things he's bad at and one of the things he's very, very good at is product and ideas and that is -- an example of that was today. he has been at the forefront as julia said of a.r., of lens, all these things, stories that have been copied by other platforms and he's clearly kind of staying ahead of facebook and instagram as they continue to copy him by

doing that th. 9 other thing that's really fascinate seg talked about i think it was 90% of 13 to 24-year-olds engage with snapchat in some form or another. that is a huge number, and that is a number that facebook is losing facebook is losing very, very quickly of course they're still on instagram. but snap far outdoes facebook, twitter, other platforms in that regard which i think is really fascinating. >> what do you think their strategy is here is it to add users with new features like gaming or to just wring more money out of existing users? >> well, one thing that evan said today was that -- or he said this week was that they are no longer going to use the metric of new users but more engagement and i think this is something that every platform, social platform has gone through. twitter yent went through tay few years ago where they said i'm not going to look at new sign yupz, we're going to look at monthly active users and daily active users and it continues to switch. and facebook is doing it also a little bit

i think once you hit a plateau you can't be judged on that. i've always said that wall street doesn't know how to judge these companies and so the metric is always changing. one thing that i will say is that you know, in the last few years twitter has barely added a single real user when you look at the numbers of users that have left. and there's still a market cap of almost double what snap is. i think he's right to say we don't need to worry about adding new users right now, what they want to do is really up engagement >> for twitter is that a problem? >> oh, huge problem. i think it's the most undertalked about problem with twitter. it's a company that has not innovated, has not changed its product in -- i can't remember the last time there was an app update where the thing looked different or acted differently, and i think that the company is terrified that if it does make changes that it will alienate the users it does have and therefore it doesn't do anything and i think it's just a matter of time before that chicken

comes to roost i think it's -- or the hen or whatever you call it i think that the fact that nothing has changed is an example of what snap is doing differently. they saw user growth is slowing, so they're doing things to try to grow it and grow user engagement twitter has done absolutely nothing. i think it's a big problem for them >> speaking of judging these companies by how much invasion is going on, what about facebook right now? how much of their time is being occupied by scandal after scandal and regulation fighting? mark zuckerberg today making his first tv appearance after his post open edd. what's going on in the regulation machine that was facebook >> who knows what's going on in the innovation machine one thing they are doing is kind of realizing that they're losing people on facebook it's kind of one day they're like oh, it's not a big deal and the next day it is in the last quarterly earnings they admitted that a couple million people no longer use the

platform who knows how that's going to play out in the future people are still obviously engaging with it and the scandals haven't been a big deal for that however, on the flip side that's all you hear about when you hear about facebook and i think when you look at whap company is doing, trying to integrate the messaging platforms of whatsapp and instagram and facebook it's clear people are leaving it and they are going to other platforms and they want to keep them on theirs as far as their reaction to all the negative publicity, they're very, very beginning we're now seeing that they are doing things that are proactive although they're not doing them on their own, they're being pushed to. we saw this recently where they said they're no longer going to allow people to search for nazi, white nationalist stuff, they would be redirected to a non-profit for hate groups they are doing things but they're doing not even remotely enough and i think that, again, there will be repercussions for that >> nick, thanks for joining us >> thanks for having me. >> nick bilton still to come, amazon ceo jeff

bezos keeping control of his company as his divorce gets finalized. we've got details and what it means for the stock price coming up plus adidas teaming up with one of the biggest superstars in the world. that's adidas in this country. we established that. >> agree to disagree no, we didn't. >> a new ptnsh wh yonce.ipit that's next. ' retirement. don't worry. voya helps them to and through retirement... dealing with today's expenses ...while helping plan, invest and protect for the future. so they'll be okay? i think they'll be fine. voya. helping you to and through retirement.

♪ all the single ladies welcome back to "closing bell." let's check in on some individual market movers today shares of adidas getting a pop after it announces it will team up with one of the world's biggest superstars to market its sneakers and sweatshirts, none other than beyonce beyonce will be serving as a creative partner with the brand. relaunch her brand with adidas the brand was eventually launched with top shop interesting how far adidas has gone into entertainment, pop stars, celebrities, and not as much the big athletes. nike has a lot of the biggest athletes and adidas has always just picked off who they can get as well. they have a number of big ones as well and they do today.

but kanye west, beyonce, pharrell they've got one the jenners. they are really going deep on working with these creative mega celebrity instagram and facebook stars. it's worked really well with kanye. >> and given the success as you say with kanye and given the unprecedented and unrivaled caliber of beyonce i'm surprised the stock's not up more than 1%. >> it's up 24% so far this year. the german dax has not been that strong and adidas -- >> sure. she could -- >> they're bullish on beyonce. >> i'm bullish on beyonce. and adidas >> adidas. >> roku plunging guggenheim downgrading it to neutral. citing apple's recently announced video services despite the fact it will include the roku channel it gave three reinses. apple's new services one i sort of did i' disagree with that because roku channel will be on apple's product and apple

will be on roku's platform and also netflix remains on it so it's one of the sort of few places where you can get everything in one. i disagree with that reason. other reasons viacom and amazon pushing more into advertising video on demand that clearly increases competition. they also pointed out the cfo sold 100,000 shares last week which was another factor that made them a little less excited about it but they haven't downgraded the target price much yes, down to hold but they've gone to 77 to 72 which is still above where they are now it wasn't a bearish downgrade is my point sort of tweaking a price target. >> well, the stock performance had been incredible. >> phenomenal. >> maybe a chance to take some chips off that table down 6%. up next a top strategist tells us why he's becoming more cautious on the market >> plus guggenheim's scott minerd is here to weigh in on the fed and if he thinks a rate cut should happen this year. we're back after this.

what do advisors look for in an etf? don't just track an index, help me meet a client's need. is the fund built to sell or built to last? etfs are only part of a portfolio. so make it easy to explain. give me a quality fund that helps me get clients closer to their goals. flexshares etfs are designed and managed around investor objectives. so you can advise with confidence. before investing, consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully.

you should be mad at airports. excuse me, where is gate 87? you should be mad at non-seasoned travelers. and they took my toothpaste away. and you should be mad at people who take unnecessary risks. how dare you, he's my emotional support snake. but you're not mad, because you have e*trade, whose tech helps you understand the risk and reward potential on an options trade it's a paste. it's not liquid or a gel. and even explore what-if scenarios. where's gate 87? don't get mad. get e*trade and start trading today.

13 minutes to go in today's session. dow's up more than 150 points.

joining our "closing bell" exchange joe tannias from bessemer trust and our own rick santelli we were just talking about how you were very bullish on the market two years ago or so and have become incrementally more cautious where are you right now? >> i think you summarized it quite well we're now toward the end of this business cycle we've seen markets that are giving us this spectacular run in this bull market and just so far this year you take a look at the returns you've seen across risk assets you have to sort of wonder how much fuel is left in the tank is now the right time to become a little more cautious and incrementally take a little more risk off the table >> but still overweight the u.s. relative to the rest of the world? >> if i look purely at equities we continue to find opportunities in the united states and i think that serves two purposes one, the u.s. relative to the rest of the world looks fundamentally sound. but two, the u.s. also tends to exhibit a lot more stability in times of market stress so it's also part of the way we're becoming a little more defensive. >> rick, in terms of that u.s.

versus rest of the world what do you make of that german data this morning >> you know, it's a bit frightening. and i do think we underestimate how relationships between china and the u.s. and all the fragmentation that occurs with trade can have very quick positive effects on auto exports and germany in general. but it is something to contemplate. and with joe's point -- see, to me if you really want to figure out how to trade u.s. markets -- >> rick, hold on one second. we're going to go to phil lebeau coming out of the tesla hearing. >> guys. >> elon, what do you think just tell us real quick. >> very impressed with judge nathan judge nathan's just an outstanding representative of the judiciary. excellent. >> do you think you can work this out with the s.e.c. over the next two weeks >> looks like it

>> how did you not violate the agreement? >> elon, do you feel -- >> don't push. >> elon, how did you not violate your the agreement? elon, how did you not violate the agreement? do you consider this a win >> don't push, don't push. >> elon, how did you not violate the agreement? >> can we get your automatic gl autograph on a tesla >> okay, guys, i'm ready.matic autograph on a tesla >> okay, guys, i'm ready hope you can still hear me guys, do you hear me you heard elon said can you work out in the next two weeks, he said we'll see it was very clear, judge nathan is in no mood to rule on somebody being in contempt of court. and she told both the s.e.c. as

well as elon musk's attorneys work it out. you've got two weeks for the two sides to sit together, clarify the policy, because the argument from elon musk's attorneys has been that this policy in the agreement between the s.e.c. and elon musk was vague, ambiguous and as a result instead of coming to them and saying was he in violation of the policy, put down the hammer and went straight to contempt of court which the judge said that is a serious move and you guys should be able to work this out before that so they have two bikes to sit and talk for at least an hour and then come to a joint letter to the court if they can't come to an agreement, the judge says then i'll act and you don't want me to act so to speak guys, back to you. >> understand still uncertain what could be agreed with between the two sides. but is it fair to say that today relative to expectations in terms of what could have happened to musk today, this was

a small win for im >> yes, i would say so and i had a chance -- i was in the jury box within the courtroom, there was about 12 journalists, we were allowed to sit up there so we could see the reactions of elon musk and it was clears as the judge was asking questions, he was clearly sensing that the judge was going to say to him work it out, guys. i'm not going to hold somebody in contempt of court and in terms of potential remedies when she asked, they said maybe we'll come up with escalating fines if he does this again in the future. it wasn't like the s.e.c. was saying throw him out of the ceo office and you just got a sense that the judge continued to come back to that same point over and over, which is this policy should be clear, the agreement and there is too much ambiguity. so they have two weeks to work

it out >> and what else can you tell us about what it was like inside the courtroom? i know you were surprised probably -- we didn't know that he was actually going to show up he was there, he spoke to you going in, spoke you to coming out. what happened inside >> he didn't talk in the court in the court it was simply lead counsel for the s.e.c. and the counsel for elon musk. they each took 45 minutes to lay out their cases and it really does focus on the question of whether or not a tweet from elon musk contains material information, material information to the market. and whether or not he could move the market or influence the market and time and again the judge came back and said look, i'm trying to get clarity hire aere whether or not this policy should be clear, eliminate any ambiguity. so i think that is why she ultimately said you two need to sit down, i'm ordering you to sit down, meet for at least an

hour within the next two weeks and report back to me and issue a joint letter in terms of where things stand >> phil, i guess we also got a glimpse into the various views of people have on elon musk. i don't know if you heard, but as you were shouting the serious questions, another fan said please, can i have your signature on my tesla. >> autograph >> signature, same thing >> he is a rock star people were asking what do you think about the tesla i'm driving. nothing about why he was in court. but that is to be expected >> phil, clearly share prices up along assigned you down 8%, this decision hasn't really moved the share price even though as we said slight good news, slight win for mr. musk people still in terms of the investors focusing on that miss yesterday. >> i think that is the main thing that investors are focused on he will remain ceo he will continue tweeting as he

has been his attorney said time and again that he is complying with the order, he is not sending out wild are market moving tweets. the s.e.c. will disagree with that i don't think that you will see any difference from elon musk in terms of how he uses social media. i think the focus right now for investors and the reason the stock is under pressure is about production and delivery and where this company goes this year in terms of the model 3, model s and model x. >> phil, thank you very much and our thanks and apologiesto joe and rick for joining us. apologize for that breaking news up next, the closing countdown >> after the bell, president trump holding a key meeting on trade with china's vice premiere wel keou'lta y to the white house when that begins oh, wow. you two are going to have such a great trip. thanks to you, we will. this is why voya helps reach today's goals... ...all while helping you to and through retirement.

can you help with these? we're more of the plan, invest and protect kind of help... voya. helping you to and through retirement.

we've done it! hah! great work old chap. we'll be rich and famous.

well i'll be rich, you'll be famous... at least amongst your digging friends. here's a thought, ever consider investing? 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. welcome back just under two minutes left in trade. you can see started well, sold off during the morning bottomed around lunchtime and a nice rally up to the close the dow up very nicely, over half a percent dow, boeing, disney, exxon and jpmorgan all up over 1%.

gives that index a bigger boost than the others. russell doing well communications services at the top there. tech towards the bottom. going to bring in bob pisani british pound a bad day there. and also tesla down throughout the session, down about 8% as we approach the close >> and was that fun watching elon musk coming out of the courthouse more fun watching phil i think it was a modest win for him, but not a win for the stock. you'll notice didn't move at all. still todown 8%. so maybe a win for him, but not a win for the stock. >> because of the sales numbers which is more important. >> obviously and s&p 500 a new high for the year, a very choppy day, of course the dow was weird because beg w boeing was up $11.

ipos, trade web over at the nasdaq, what a move up, priced at 27. closing at 36. >> thank you very much there goes the bell. nasdaq just in the red, dow and russell lead the charge dow up 0.6% that does it for the "closing bell." back to you. welcome to "closing bell." i'm sarah eisen. mike santoli is joining me take a look at how we finished up the day, another day of gains mostly s&p 500 six days in a row now up 0.2% so far for the week, going into a friday, we're up about 1.6%, 2% for the nasdaq. nasdaq did underperform closed just about flat. the dow was boosted 160 points or so thanks to big components

like boeing having a better day. dow, disney, exxon also winners on the day as the focus turns to tomorrow's jobs report. coming up, guggenheim's cio scott minerd will join us with his changing fed outlook but first here are the stories on the radar jamie dimon releasing his annual letter ewill not musk leaving court saying he hopes to work out an agreement with the s.e.c. within two week and jeff bezos' divorce is finalized. officially his ex-wife tweeting that he will keep 75% of amazon stock. we'll talk about all of that but first joining us is stephanie link, portfolio manager. and mike, another strong day of gains puts us not too far away from record highs. what is driving the momentum >> there is a steady kind of quiet underlying bid i wouldn't say it is outright strength buying frenzy literally this is the is second day in the row the s&p is up

exactly 2.1%, day before that, almost perfect 34ri flat so you ha so almost a three day win streak and when the market has been a little overbought and getting a little stretched and it doesn't really pull back, on a net basis you'd have to give the benefit of the doubt and say is that positive within the market, today you had a lot of the really super hot software stocks driving the nasdaq, they backed off and older economy stocks picked up so it seemed like internal rotation that neithered out to a very slightly positive index day. >> dow was flattened by a couple individual movers. a little more value over growth? >> a lot more value over growth. and the last couple weeks we've seen that. march was much more defensive and much more growth over value. we started to get better economic data globally, still mixed, but a little bit better on the margin globally and then this week i would say in the u.s. it is mixed, but i thought the jobs number of the

initial claims really outstanding. best since 1969. that is a forward looking indicator. the jobs number tomorrow is a backwards looking one, but it will be important to see what the number is tomorrow especially if we get revisions higher from march -- excuse me, february >> february was so bad >> but if we do get revisions and then a decent number tomorrow, that will keep the momentum going i think with bond yields actually on the rise because we really have been starting to see that and that is propelling the value trade that is propelling the banks, some of the commodity names and even some of the energy names. >> mike, to the levels though for so long 2800 had been a sort of false positive and we haven't been able to stay above it for long we have done this time and now 2880 >> it is pretty hard to assail the actual market action people look sideways and say it hasn't proven anything yet

it certainly has it would be weird at this point if the market didn't before too long make a run at the old highs just because when you get this close, the problem is if we went straight there to the old highs a couple percent up from here, then you will probably be overbought and then entering earnings season and then talking about to we gdo we get a trade not and is that sell the news type event so it makes sense to have another lunge to the highs, but i don't know if you have to go side ways for a while. >> and the battle between elon musk and s.e.c. was in front of a federal judge this afternoon phil lebeau joining us with the latest >> reporter: this took about an hour and a half. and during that hour and a half the s.e.c. laid out its argument why elon musk should be held in contempt of court for some of the tweets that he has laid out, including language that his communications regarding tesla would be monitored by the company in some fashion.

however this argument in court all resolved around one question, what is reasonably contained within a message that is material information. in other words, is what he is sending out truly market moving or material. and at the end of the arguments in which elon musk's attorneys said look, this is a vague policy and elon musk has not been sending out information that is material to the market, not information that is not already out there, the judge at the end issued three words from the bench before telling the two sides to get together. work this out. here is elon musk coming out of court today. we had a chance to catch up with him. >> tell us real quick -- >> very impressed with the judge nathan judge nathan is an outstanding representative of the judiciary. her arguments were excellent >> do you think you can work this out with the s.e.c. over the next two weeks >> hopefully >> do you feel the s.e.c. -- >> how did you not violate the

agreement? >> reporter: and then he was through the throng of reporters here and he left shortly after that so here is what happens over the next two weeks, attorneys for the s.e.c., along with attorneys for tesla and elon musk will get together under the judge's order, spend at least an hour in discussion about how they can claire my the agreement that elon musk entered into at the s.e.c. a couple months ago or actually late last year where his communications in some fashion will be approved and monitored in some fashion by tesla and then they will report back to the judge, issue a joint letter within the next two weeks and right before she said court is adjourned, she said let's hope you can work this out otherwise i'll be weighing in. and i'm not sure you want her to weigh in she made it clear contempt of court is a serious issue and she is hoping they can work it out before she has to issue any

further judgment >> elon hasn't tweeted in 18 hours and he is in court today if he weren't, he might be tweeting about the numbers announced last night which is sending the stock down 8%, barely moved on what you just announced because the focus is all around demand. what's the story >> reporter: well, it is all about the demand really that is the story if you are a tesla shareholder. it is what they reported for the first quarter in terms of deliveries and those numbers were well below expectations and it raises the question of whether or not tesla can hit its projection for full year deliveries of between 360 and 400,000 vehicles in order to do that, tesla will have to deliver on average 99,000 vehicles per quarter and just as a point of reference, best quarter for deliveries was in the fourth quarter of last year, and they only delivered 91,000 so they will have to exceed that and continually exceed that for the remainder of this year

>> phil lebeau, thank you. stephanie, what do you do with the stock? >> well, it is entertaining. i'm not a shareholder and i would not be a share hold didder just on the valuation promise position it is really a cult stock. i understand why people own it but i feel like the ceo is not in the right position. he does need to move to the strategic officer kind of role get an adult in the room to run the company and you don't have to worry about these distractions because today is really a distraction. he should be focusing on the fundamentals which are actually very poor relative to expectations and not only does the delivery number have implications to the top line, but big implications for the margins as well. so making the stock that much more expensive on a pe basis >> to the numbers yesterday, i mean part of the reason that it is a cult stock is because that the demand was thought to be insatiable and it was a case of can they

get their production numbers up to meet that after the first time last night or the last couple months, we're questioning that never ending demand >> for sure. questioning the demand at the price points that re able to deliver or not deliver the cars. and so i think that is all in play and without much of a subsidy. so all that is the case. also we're getting closer in time to the moment when this company was really supposed to be operating at scale. very long term bullish case was half a million cars by 2020. and they were saying that in 2014 so you're pretty much up against that and they are not necessarily on pace >> what i don't get is that because of elon musk and because of the execution problems and because he is distracted or something else >> i don't think just specifically because of that, but i don't think it was never in the about aing that they were going to be able to do that. i don't think it was known if you could sell that many cars in

a mature auto cycle at those prices without the tipple cal kinds of finances and everything else >> and how would you know because a lot of his team has left so how would you really know if it is necessarily him, the team he has in place. it is a team approach. no question about it but these distractions from a leader, from the leading person at the company, is just a negative in my opinion certainly not a multiple enhancing event, that is for sure so i just feel like if you do have a change in management at this company, i think then you have to reevaluate the whole story. i know i would >> let's move on jpmorgan chair in an released his annual shareholder letter and we talked about the political conten political content and now focus on the economic point. his tone was less optimistic than a year ago. he says while we remain optimistic about the long term growth of the united states and the world, the near term economic and political backdrop

is increasingly complex and flaut with risks but he is not predicting a recession. he says if a downturn leads to darker scenarios, we'll be prepared and we believe that e u.s. government will respond adequately and that the fed is still retaining numerous tools to deal with many of these potential issues as for jpmorgan itself, a couple interesting nuggets. they see return on equity at or above 17%. they still think it makes sense to buy back stock. and that the stock buybacks are an essential properaallocation and they expect 93% of the u.s. population to be in the chase footprint by 2022. and q1 expected to be down only single digits in percentage terms. and finally credit trends remain

favorable. and a couple of those things on the earnings last two make me pivot around to thinking that this could be a better quarter than perhaps people were expecting. consumer side i think that they will strike an optimistic tone and if that trading isn't as bad as some of the fears, maybe expectations are low enough. >> it would lean in that direction if they think 17% of return is a sustainable number that is pretty much best in class of the big banks so, yes. although it is funny because if you read the whole letter, clearly december had an impact on the tone. because a panic. >> he said that volatility could be a fharbinger of things to come and don't expect a recession, but then other caveats by 2020 or 2021, the economy will have other things to deal with. and as i said, a different tone to least year >> and i think it makes sense

because the economy has been slowing down since the second quarter of last year we saw 4.2% gdp number in the second quarter of 2018 and it is now we're looking at 1.5% 1 q, i think 2% for the full year so i think that he has every right to be more conservative. what i think is interesting and very consistent with some of the other ceos that up interviewed most recently, especially brian moynihan at bank of america -- >> who enjoyed your compliments. >> thanks for teeing me up on that one but both said that january and february were very challenging, but then march really can pick up for capital markets so i think that you are seeing morgan stanley and goldman and some of the other ones doing better because maybe they will have a good quarter against low expectations but i'm glad that they will buy back stock and increase the dividends. >> and don't forget the juicy tidbit that he is not running for president in 2020, but he seriously looked into it >> exactly and decided for all sorts of

reasons that it wasn't the way to go. by about late summer or early october. and if you do check out our write up of that on cnbc.com, go back to accepseptember. there was a mini outburst where he said that i could beat trump, as it trump personally but he needed to get the nomination first and that was a key aspects and the motivation is the desire to serve and you can only get to that if you get to the top and he said that today in the letter, that we'll take it to the fore, try to influence policy and helps the manifesto comments by some in terms of the weight of policy in today's shareholder letter >> from one billionaire to another. jeff bezos will remain the company's largest shareholder after finalizing his divorce with mckenzie bezos.

robert frank has the details >> jeff bezos will keep 75% of his stocamazon shares and mckene gets 25% he will own 12% of the total company, mckenzie will have 4% making her the largest -- fourth largest shareholder. more importantly, he will retain voting rights over all the shares including those owned by mckenzie and she will not be seeking a board seat or any other role in the company. jeff bezos also keeping blue origin and "washington post," so no big changes there in her first communication about the divorce, mckenzie tweeted today grateful to have finished the process of of dissolving my marriage with jeff and jeff tweeting i'm grateful for her support and her kindness legally she could have fought for up to half of his shares once approved, she will be wortt

around $36 billion jeff bezos still remains the rich he is man in the world. he has about 1$114 billion unclear what happens to custody of their kids and their five homes. but i don't think that they will be fighting over the flatware. >> all right thank you. ism implications for shareholders >> of the whole saga, this is the tidiest piece of this. i don't really think that sonl shares had any kind of a discounts or overhang related to this it didn't seem as if the market was on pins and needles about the ownership. so i guess it is good to have it sorted out but i don't think that it is in itself a big lift. a little bit of a relief in terms of the long term other than ownership strusther than sh

ship structure show. >> so is it a fed factor >> what i'm looking for is if the china data point that we got if we see that to in-it. because it is just one china data point in terms of pmi i think people are looking through the first quarter in terms of data. they believe once china kicks in, it should lead to better growth globally. but we have to feel good about china. i think you look at retail sales and credit numbers from china, they are improving absolutely. but we have to see if that has momentum so that to me is like the big driver that will also drive whether or not value versus growth works or whether we go back to a very defensive kind of a market like we saw in march. >> stephanie, thanks for joining us still to come, stocks rallying ahead of president trump's meeting with china's vice premiere at the white house. we'll bring you that meeting as

soon as it begins. and scott minerd was one of the first to predict that the fed could cut rate and now he's saying they might raise rates. he'll explain his change of heart. measure up? a cfa charterholder does. you've worked hard to grow your wealth. make sure you're working with a wealth manager who can grow with you. cfa charterholders have the investment expertise to unlock opportunities other advisors might not see. learn what a cfa charterholdr can do for you at therightquestion.org

woi felt completely helpless. trashed online, my entire career and business were in jeopardy. i called reputation defender. they were able to restore my good name. if you're under attack, i recommend calling reputation defender. and consider joining their groundbreaking campaign

to give every american the right to remove old, inaccurate search results by going to righttobeforgotten.org. vo: if you have search results that are wrong or unfair, call reputation defender at 1-877-492-6705. the latest inisn't just a store.ty it's a save more with a new kind of wireless network store. it's a look what your wifi can do now store. a get your questions answered by awesome experts store. it's a now there's one store that connects your life like never before store. the xfinity store is here. and it's simple, easy, awesome.

so back in december when the market was selling off like crazy, scott minerd said that there was actually a 50% chance that the fed would cut rates but now he is saying there is potential for rate hikes later this year. and he is joining us to explain. people pay attention to your fed call what exactly is it >> well, it is interesting investing money is about looking at expectations. and based on what went on in test, it w december, it was pretty clear that the market was going to discounts the possibility of a rate cut and there is a good reason we're still not out of the woods. if we go back to like 1998 when the federal reserve went on pause because of global economic pressures affecting the u.s. economy, ultimately they were forced to cut rates because of a financial accident so i don't think that we're out of the woods yet that we could

have a financial accident that would you cause the fed to have to reduce rates. because if we don't, the economy is going to start gaininging momentum again and by the time we get to the second half of the year, i think that we'll see enough strength and pressure on prices that the federal reserve will start to reverse course and continue to raise rates. >> what gives you confidence that will happen if we're not out of the woods yet it seems like a sort of odd prediction that we'll be hiking later in the year. >> i think first off the volatility we've just lived through, a lot of investors were caught off side just like long term capital was back in 1998. that is not a sustainable position and so ultimately that is going to come to light somewhere in the near term if we have somebody out there in the shadow banking system who has a lot of exposure that they are off side on but if not, the u.s. economy is still moving forward with interest rates down, we're

seeing housing pick up the seasonal factors in january, the weather, the shutdown of the government will all be drags on first quarter output and by the time we get into the second quarter, i think we'll have a rebound from the first quarter and a lot of the benefits of the reduced rates that we've had as a result of the pivot are going to play into the u.s. domestic growth equation. >> scott, the one scenario that you set out there about the potential for some kind of financial accident, a financial stress event that could lead to a rate cut, do you actually see the makings of that? that is also a disclaimer. you say something could completely break loose in the markets. but given levels of leverage and risk taking and conditions of the credit markets, do you see the setting as ripe for something like that now? >> that is a tough question to answer because where this sort of stuff comes from is typically

opaque and one thing that policymakers did do in the wake of the financial crisis was that they pushed a lot of risk off into the shadow banking system. for instance not that i think clos will be a problem, but a lot of the bank loans today reside in securitizations. again, i don't think that that is the near term problem but we don't know what is hidden away from the eyes of regulators that could possibly come back to haunt us >> ultimately when do you see a recession arriving to he said this cycle >> well, our models showed that we thought the recession first half of next year. that model tells us first half of next year personally i think the longer the fed stays on hold, that that time frame is going to get pushed out but whether the recession is

coming in a year or whether the recession is coming in a year and a half, i think that we're still in the late portion of a financial expansion and that the risks are growing and in for instance corporate credit, you are not being compensated for the risk and as we've seen in the stock market, we're going to be prone to bouts of volatility when we get bad news from time to time >> do you think we've seen the bottom on treasury yields? >> i think for this cycle it is very likely. i did some work today that showed that we should probably expect a rise of about 2.9% to 3% >> how far ahead is the u.s. equity market looking if we do get the recession within 12 months, would now be the time to dump stocks?

>> well, the question i always have to ask myself, am i an investor or a speculator coming from a trading background, i would say you should be long stocks today. and history tells us that up until about a few months before the beginning of a recession, stocks typically tend to do good but if you are an investor, holding on to a risk asset for another 10 or 15% of appreciationoff let's say the next 12 months may not be the wisest choice because we do know that when events come out of the dark perhaps like the events that could potentially happen here in the shadow banking system, that they tend to crowd the exits quickly and it is very hard to get out and the volatility rises very fast >> so there is word now that the white house is going to nominate herman cain to the federal reserve board, this comes at the same time that they are planning

to nominate stephen moore to the fed board. maybe controversy on their experience, but the real issue is that they are political people and federal reserve officials aren't supposed to be political allies of the president. is this a concern or not >> well, i think for the time being that it is not a concern because the reality is that, you know, these people if they do turn out to be political in nature, they are going to be isolated the board of governors in washington and then the various fed presidents i think are going to push back on any kind of political pressure even if it comes from internally. personally if i were sitting in the president's share, i'd nominate larry kudlow. he is a real guy with a real understand of the economy and monetary policy. and i think that he is somebody that the president has a close relationship and has credibility.

>> but the fed is independent. it shouldn't have a close relationship with the president. he has that in his role as chairman of the economic council of economic advisors >> well, you know, history at the fed shows that from time to time various administrations have put political a point s appointments in the fed. sometimes they didn't work out so well like arthur burns. lyndon johnson did it, richard nixon did it so politics and the fed go back a long way and again, 00 i'm not overly concerned about it because the open market committee consists of nine or ten people. and the reality is that if one or two are political in nature, it is probably not going to have much of an impact on policy. >> scott minerd, thank you >> great to be here. still to come, the s&p 500 up nearly 15% this year.

up next, we will break down the charts to see why there may be some concern the rally is running out of steam. and president trump set to meet with china's vice premiere. we'll bring you their comments let's talk. you've built a lot of cool stuff. and you're good at innovation, but are you applying it the right way? dear tech, how do we bake security into everything we do? i want all my data to be protected. tech has to step up. so, let's rebuild trust and transparency. let's build ai that works with employees, not against them. let's champion data rights as human rights. let's expect more from technology. let's put smart to work. ♪ ♪

with a $500,000 life insurance policy. how much do you think it cost him? $100 a month? $75? $50? actually, duncan got his $500,000 for under $28 a month. less than a dollar a day. his secret? selectquote. in just minutes, a selectquote agent will comparison shop nearly a dozen highly-rated life insurance companies, and give you a choice of your five best rates. duncan's wife cassie got a $750,000 policy for under $23 a month. give your family the security it needs at a price you can afford.

markets had a strong run so far this year, but could the rally be due for a breather? mike santoli is checking out the charts >> slightly looking like it needs a breather

they tracked the number of s&p 500 stocks overbought and oversold on a statistical basis. basically it just means they are particularly far above their 50 day average, they are overbought so you see about 55% of all stocks entering today were above this threshold so they read as overbought and that is ten times as many as were oversold. so clearly the markets had great run. obviously more overboard here but that is because we were reversing one of the steepest oversold conditions in a long time it doesn't necessarily mean the market goes down from here last year around these similar levels, it kind of chopped around for a while and over this period the market went sideways and then went up to new highs. so time can also help in relieving aen overbought condition. but it definitely shows you there is not a whole lot of dry tinder for immediate acceleration of this rally >> a little overbought

all right. thanks time now for a cnbc news update. >> here is what is happening at this hour. the house voting to reauthorize a 25-year-old lawsuit that helps victims of domestic and sexual violence making it easier to take guns away from violence offenders even if they are not a spouse or domestic partner >> we know that there is -- if there is a gun in a hostile situation in a domestic violence situation, someone is 500% more likely to be killed if there is a gun present. we're not trying to take away people's due process yosecurity forces are looki for a kid napped citizen and a local driver police say the kidnappers used the victim's phone to demand half a million dollars in ran m

ransom and national institutes of health reporting that some infectious diseases are on the rise as a result of the opoid epidemic many have rts taked started to i saids which has led to dangerous practices such as needle sharing resulting in an increase in hiv and also in entight tien tight t help tight its you are up-to-date back to you. >> sue, thank you very much.youe back to you. >> sue, thank you very much. the massachusetts gaming commission is not playing around as the casino giant answers charges it covered accusations of sexual misconduct against steve wynn a live report coming up. this is my headquarters. this is where i trade and manage my portfolio. since i added futures, i have access to the oil markets and gold markets. okay.

i'm plugged into equities - trade confirmed - and i have global access 24/7. meaning i can do what i need to do, then i can focus on what i want to do. visit learnfuturestoday.com to see what adding futures can do for you.

welcome back wynn resorts executives taking the stand for the third day at a suitability hearing in boston. contessa brewer is there and joining us with more >> reporter: they just finished talking to elaine wynn, the company's largest share holder she owns nearly a 10% stake in the company. and she was asked it describe her husband's managerial style

when he was ceo. and she said that he was a bullying boss subject to mood swings she said that she was definite advice stated to learn that there were serious allegations of sexual misconduct against him and that once she started litigation against steve wynn, that she was treated like a bitter ex-wife instead of the board member that she was. when commissioners pressed her to explain why she didn't reveal the existence of that $7.5 million settlement with a former employee to gaming regulators here in massachusetts, she says she relied on the counsel of general counsel kim sinatra. she is fighting to meet suit ability requirements in connection with this gaming license in massachusetts here's what she said >> i am here by choice that at the moment that my shares were free and clear to sell i would have had an opportunity to do so and leave this company but i chose not to

and i am here because i am team wynn >> reporter: she and matt maddox are only two of the original qualifiers still with wynn and they are under fire after departure of steve wynn. again the gaming license in the balance. the property due to open in june >> where is wall street on this issue? how closely are they following this and what have you read in terms of the notes about what the consequences could be? >> reporter: well, i talked to twoen analysts who are not following it very charlie what you it is not being live streamed by the massachusetts gaming commission. they moved to the convention center to accommodate the crowd. but they both told me they feel like the overhang has already been baked into the stock and even problems for matt maddox, the expectations that there would be stellar performance

just weren't there and they point out this is a small point of wynn's overall revenues they are talking about an estimated $250 million in ebitda >> all right thank you. breaking news on trade talks between president trump and china's vice premiere. john harwood has the details >> reporter: the vice premiere is in the oval office now with president trump. the president is voicing optimism about projects of a deal within the next four weeks or so. the trade representative robert lighthizer was a little bit more cautious saying we have a good partner in the vice premiere who is the special trade envoy for xi jinping but we do not have any specifics yet. we are expecting the possibility that the president would announce a summit later this month with xi jinping. don't know exactly when that summit will take place or where. there has been talk of mar-a-lago or washington on a

state visit or in a neutral site and there is no prospect of a completed deal today this is a work in progress where they are going to agree to continue talking the question is when do they finally sign on the dotted line. but it does appear inevitable that they will come to a deal because the economies of both countries need a little calm, need a little reduction of uncertainty and certainly wall street and the business community is expecting a cessation of this trade conflict >> john harwood, thank you apparently trump is being asked about the sticking points, mike says tariffs and intellectual property theft i don't know what you make of these headlines. he says the deal has a good chance of happening but is four weeks away, close to a deal with china, they are making very rapid progress i mean do we put it all together and does it mean anything different than the market is expecting? >> i don't think if you net it all out it is that much different than we're expecting or that we've heard for a while now. the president always seems to

want to preserve some level of optionality and kind of keep the suspense in there just because i don't think that he wants to say this is a done deal, just a rubber stachl, and therefore you kind of is surrender a bit of perceived leverage so the market interestingly has really stopped reacting in a wide swinging way to you will a these headlines. up next, back behind bars. form er nissan chairman rearrested overnight dramatic details straight ahead. ? that's the beat of global markets, the rhythm of the world. but to us, it's the pace of tomorrow. with ingenuity, technologies, and markets expertise we create the possible. and when you do that, you don't chase the pace of tomorrow. you set it. nasdaq. rewrite tomorrow.

[horn honks] man this is what i feel like when i wear regular shoes, cramped and uncomfortable. we can arrange a little upgrade. which is why i wear skechers... wide fit shoes. they have extra room throughout. they're like a luxury ride for my feet. try skechers wide fit shoes.

here are some other stories on the "closing bell" radar. carlos ghosn rearrested. the ghosn family saying that about 20 prosecutors and their assistants were outside their apartment this morning and they weren't allowed to call their lawyer her passport, cellphone seized carlos had wanted to take a book and piece of chocolate but prosecutors wouldn't let him painting a pretty scary picture of what it was like. remember, this comes after a little less than a month after he was released on bail, rearrested, very little in the way of explanation this is something that investors around the world are watching and certainly if you are a ceo, an american ceo being offered a

job in japan, you might want to think twice. >> if you are thinking about committing a crime but i agree, due process clearly is limited >> and if you are -- also it comes after reports of ulterior motives from japanese authorities. the merger >> and suggests slightly different practice but i agree either way carlos ghosn has had a tough time of it brexit headlines are confusing trading algorithms it is making it difficult for the machines to pass and decipher key points before executing trades reuters says it has published 400 news headlines on brexit per day in recent weeks. and today is a great example of how difficult this is because the debate moved from the house of commons to the house of lords and that just adds another level

of does this help, does this hinder, which direction are we heading. and i totally get it but machines can't do it, you need somebody to explain to you. >> machines are built to try to he had radio the meanings of the headlines, but also see how the market reacts and learn from that.radio the meanings of the headlines, but also see how the market reacts and learn from that it is chopped up >> and it is not clear because they are making it up as they go along. >> and even when they try to make it up, still uncertain as to which direction it means. so many moving parts crazy. >> welcome to our life, your life, trying to make sense of it all. >> that's what i mean. >> so nobody knows sears may be back from the brink in some ways after a bankruptcy filing and slew of store closures, of course the retailer will now open three small format stores calling the concept sears home and life. if the entire company were able to just reinvents itself as a

smaller format stores concentrating on appliances and tools and the categories that sears always had an advantage in, the company itself might have survived. but too much floor space devoted to stuff that nobody went to sears information. >> and that this is just three stores >> not a major rebuilding. >> under the sears brand >> now calling it sears home and life >> we'll see if they are successful up next, investing in you. today we're talking about growing good cdi key steps to build your credit score. that is coming up. key steps to build your credit

>> welcome back. our eamon javers asked the president if he would recommend

herman kaine kaine is going through checks and imagines that he will be in good shape following those checks and this first raises a bit of a rumor and went away and became a more meaningful rumor today and a question from our eamon javers in the oval office. >> it's definitely breaking script here. the previous fed nominees have all fit the mold of very accomplished, monetary policy experts that you would expect to get put on the federal reserve now whether this is good or bad and it's good to shake it up and bring people from different backgrounds and he ran a pizza chain. he was on the fed board of directors with kansas city and he's had experience and he ran for president, you remember. he's advocated going back to the gold standard. so, i don't know >> in terms of a philosophy of monetary policy i don't think it's a great fit with mainstream economists, but as you say, he did follow the script by

reports, followed treasury secretary mnuchin's recommendations on things like jerome powell as the chair he's obviously not been happy with that choice and he's going off on his own >> so that and tbd on stephen moore who also sort of fits into the category interestingly, cain advocated for higher interest rates. cnbc continues its financial wellness and education initiative called invest in you. ready, set, grow it's part of our partnership with a corn, the microinvesting app and joining us is mantsamana berry and she wrote an op ed for cnbc.com on the importance of building credit. samantha, welcome. >> thank you for having me. >> it's a personal issue for you. >> it's a personal issue and a feminist issue it's the ultimate feminist issue. women are paid less and get less

funding for investment and for what money they do have they need to make sure it stretches further and that's why credit ratings and credit scores are very important, but one in ten americans like me when i came into the country are credit invisible and that's stifling and four in ten americans don't understand what goes into their credit rating. so i came here in 2014 to work at cnn, and i had a really rude awakening when i realized that none of my european credit came with me and i was at zero in the credit app score in america and i had to learn very quickly how to build that up >> honestly, there's so much more information out there and one of the first things i said in this op ed is you need to know your score. every day, every week, you need to know your score and you need to know when it changes and we are living in a world where you get a lot of this for free i'm a fan of credit karma. in there are changes in my score i get notified

first of all, knowing your score is really, really important and what goes into it. also, understanding the math i think when i came to the u.s., understanding that credit utilization was something they needed to understand, and that's not the same in every country. here in america, a lot of your credit rating is based on your line of credit so let's say if you have a credit line of $1,000 somebody with a good credit rating is probably only spending $300 of that at any one time those excellent people are going toward the 850 are probably spending $100 on that line of credit and understanding that math is really important i think the biggest thing for people that really damages their credit scores is the paying on time again, making sure that you're paying on time in the 30-day period >> and this issue of credit and visibility, as you called it on arrival is the worst factor for women, as well >> just in terms for women

coming into this country at the moment already on the back foot financially. so the credit rating is something they can have control over and change over time and for us, we wanted to make sure that every woman was informed and it's, you know, we talk at glamour about every woman having a fallback fund at glamour and making sure to have six months and leave a bad job or a bad lease and for us owning the credit rating is we want every woman in america to understand and try to hack a little bit. >> we just got to the surface and you'll have to come back and talk about these issues. samantha berry for more invest in you, visit cnbc.com/invest in you we should note that nbc universal and comcast ventures are instveors in acorns. more headlines from the trade summit in washington when we come right back. as investment management professionals, let's measure up. cfa institute.

lies beyond the tech sector. it's about technology transforming every sector. ♪ at pgim, our bottom-up approach uses a technology lens to identify long-term winners. from energy... to real estate... to retail. finding such opportunities for alpha is the true value of active investing. and around the world, you have a partner in that pursuit. pgim: the global investment management businesses of prudential. the global investment management oh, wow. you two are going to have such a great trip. yeah, have fun! thanks to you, we will. aw, stop. this is why voya helps reach today's goals... ...all while helping you to and through retirement. um, you guys are just going for a week, right? yeah! that's right. can you help with these? oh... um, we're more of the plan, invest and protect kind of help... sorry, little paws, so. but have fun! send a postcard! voya. helping you to and through retirement.

transparency. expertise. these are the building blocks enduring relationships are built on. as investment management professionals, let's measure up. cfa institute. more headlines crossing from president trump's trade meeting. let's get to eamon javers. actually, let's get to the president.>> they'll speak to ms and the attorney general

[ inaudible question ] >> they'll speak to my lawyers and they'll speak to the attorney general [ inaudible question ] >> one that lowers the u.s. trade deficit with china and how soon will it be before you can judge this particular trade deal >> well, i think a trade deal with china is good for the world. it's good for us and china, but it's good also for the world i think it is very important and we'll see if it happens and we've never done a deal like this with china and it's a unique set of circumstances, but it's a massive deal, and i guess it is if you think about it and no matter where you look, there can't be a deal like this. this is the granddaddy of them all and we'll see if it happens. it's got a very, very good chance of happening. i think it will be great for both countries, but it will be -- it would be a much fairer deal for us because over the years we've lost a lot of money to china china's done very well and i

don't plame china. i say it all of the time i blame the people that sat right at this desk they should have never allowed that to happen, so it will bring a lot of things back i think it will be great for the united states. i think it will be hopefully really good for china, too it will be good for everybody. yeah [ inaudible question ] >> we have things. we have things we're talking intellectual property protection and theft. talking about certain tariffs and it's very important that certain elements of the tariff is in discussion right now we have a number of things and we've also agreed to far more than we have left to agree to, and in fact, i would say, i think i can say that some of the toughest things have been agreed to we have some things that are actually easier right now that we're doing, but it's a very, very using a word that i don't like