we're going to see it at the pump >> prices are already high because of the ethanol shortage. thanks for watch "power lunch. >> "closing bell" starts right now. it is the final hour of trade. happy monday i'm sara eisen >> tesla showcasing its autonomous driver technology we'll bring you the latest updates. >> oil prices surging as the trump administration looks to stop other countries from buying iranian oil. we'll look at how long that spike could last >> and samsung is delaying the release of its galaxy fold phone. will this black eye for samsung be an opportunity for other smartphone makers? that story of course unfolded on the show last week "closing bell" starts right now.

i didn't even mean to say folded just natural wit and talent. >> made for tv moment. by the way, not just you breaking samsung phones. >> i didn't break it it was not me. it was cnbc.com. it doesn't go on our -- but either way as you say -- how does samsung have that -- did they not test it themselves thousands of times >> we're going to talk about that welcome to "closing bell." i want to show you what's going on with the markets. we are seeing a decline. it's softer today. nothing extreme. we're sort of marching in place when it comes to the s&p 500 importantly, though, holding near the highs up 16% so far this year. we've seen a lot of this sideways action in the last week or so. nasdaq composite's actually up a tenth of a percent looking better than where we were the dow is lower thanks in part to boeing and some new controversies to talk about. down 57 points right now >> coming up, nobel prize-winning economist joseph stieglitz joins us first on cnbc to talk about what he calls

quote progressive capitalism he'll join us in the next hour but let's get right to tesla the ceo elon musk and pekts currently unveiling the latest developments in the company's autonomous vehicle push. phil lebeau joins us now with the highlights hi, phil >> wilf, we're wait forget some of the news people are expecting to hear from elon muss nic terms whf we might see aught okaymouse-driven teslas going door to door as he has promised in the past. is that going to happen later this year as he has int mailted and suggested and outright promised many times or are we looking at further down the line as you take a live peek at the event that's being held out in northern california for analysts who are just now getting their explanation of the technology, it's a little hard to see here down in the corner there, that executive is peter bannon. he is the head of the chip design team at tesla came over from apple about two or three years ago and he's running down all the technical parameters of the self-driving computer and chips

that are going intoiinto tesla vehicles right now we're not going to go deep into the weeds on what he's talk about. we're focused on when elon musk starts taking questions from analysts we'll bring those to you as soon as we hear from elon we expect that to be likely in the next half hour or so but gierkz, they started late on this presentation. so we'll see when we finally do hear from elon musk. >> i mean, the whole thing from a just choreographing perspective seems a little odd, phil, right? they were originally supposed to do this event last week. they pushed it back. it's delayed it comes a few days before earnings correct? >> right >> where there are some serious concerns about demand. >> sure. >> and it comes right in the middle of a time when elon musk is supposed to be negotiating with the s.e.c. to make sure that he can fulfill the promise. there's so much else going on. is this a distraction? >> that's the argument of the skeptics who look at tesla and they say, look, walk before you run. you're trying to do too many things at one time and as a result you're not doing

any one thing as well as you should be doing it and by the way, the most important thing right now for tesla in the eyes of investors, meeting expectations when it comes to sales, particularly for the model 3 after the first quarter. and that's why everybody's focused on wednesday now, having said that, sara, if they come out in this event here today and they set a very ambitious goal in terms of fully self-driving vehicles or an u autonomous raid-share network and they say we're going to have it by x date in the future that's going to turn the conversation and ultimately as we've seen with tesla over the last several years if they can steer that conversation with an event like this they will do that >> phil, clearly their battery technology has been market leading for a number of years. is there autonomous vehicle technology thought to be market leading? because there's a lot of competition out there in this space. companies throwing a fortune at it and one further point on that, is it going to be winner takes all in this technology that could then be a technology

that's applied to all sorts of carmakers? >> probably not, no. they're going with a different strategy than, say, waymo or gm cruze. waymo is widely regarded to be the industry leader in terms of not only number of hours and miles where autonomous vehicles have been out on the road so, they're gathering data, refining that data, refining the technology but tesla's technology, it depends on you who talk with i've talked with some in the industry who say look, they're getting a lot of miles because they have so many vehicles out on the road and they're learning from those miles having said, that they done have lidar radar in their cars. they are relying on radar as well as their cameras to feed the data into the computers. this there are more than a few in the auto industry who believe you have to have lichlt dar which essentially allows to you see around corners, gives you more of a 3-d look at the world around the vehicle there are many who believe you need to be lid rachlt to be successful, truly successful when it comes to self-driving cars >> we see elon musk taking the

stage there. phil, keep us posted >> we will >> on the webcast. for more on what this means for investors let's bring in dan ives from wedbush securities he has a buy rating on the stock. also carl bauer from kelly blue r bluebook good afternoon to both gentlemen. dan, what's the key for investors this afternoon on the tesla presentation >> this is a sideshow and fundamentally i think it's a debacle that they put it right here ahead of earnings where -- >> you're the bull >> in terms of rose-colored glasses, this was something where the focus should be earnings and i think the bears have something here in terms of -- you look at autonomous, we're still talking three, four years down the road. i think they'll show technologies that will be front and center in terms of them catching waymo but ultimately right now for everyone front and center should be earnings on wednesday and that's why the stock continues to be an overhang. >> if they're frount-running earnings do you think this could be a bad quarter for earnings and could than a one quarter blip or does that push back when they're likely to be profitable

for the long term? >> we think it's a trainwreck quarter and we think it's reflected in the stock why we stay bullish and what that comes down to is what will the profitability look like in thin quarters and how are they going to detail that if tar not profitable going into the second half of the year we believe a $3 billion capital raise could be on the horizon. >> so carl, what's your sense right now of demand for teslas as we look ahead to the quarterly earnings before we even get to the self-driving technology which is well down into the future? >> well, we know it dropped off dramatically there were lots of reasons whether it was the end of the year, the change in the tax benefit you got once the year ended. or maybe something more ominous like a saturation point for how many people are still willing to try a pure ev. they are a very small sliver of the market in the u.s.

there's a lot more potential in some of the global markets, certainly china where the government is helping let's just say incentivize their population to use evs tesla's constructing a plant over there, and i think if they can get past all the tariffs and the other things that crank up the price of their products by having a plant in that location and offering model 3s as well as ss and xs they could end up having a good profitability and a high volume of deliveries in that country that's going to take a little while. but right now today it seems like it's going to be tough for them to maintain the sales rates that elon was bragging about when he thought they could do half a million a year and acted like there would be plenty of people to buy them >> so karl, all the factors you're talking about there are kind of what we know already, nothing to do with the announcement today do you agree that's also a best a sideshow even if what they announced sounded phenomenal >> i do. you're hearing a lot of technical terms and it's sounding very impressive that

there's all this processing power going on that's great the world is very complex. the variables are all over the place when it comes to self-driving cars. just having processing power doesn't solve all that you have to get out there and test you have to see how it interacts with the environment phil was completely right about the lack of lidar. that's one of the restrictions i think that's going to make it harder for a tesla vehicle to see everything that's going on around it. there's a lot going on they're trying very hard but to answer all the questions they have around self-driving cars in a year or two years like elon's claiming it just doesn't sound realistic to me. >> is it too early for you to put it into your model >> it's put into the model in terms of when you look at it over the next six, seven years where this can go. and fundamentally it's a reason why they continue to have a inautonomous relative to other car makers but in the mean-time it comes down to earnings what demand looks like in terms of u.s. and specific can the

european logistics start to get turned around. that's really the key going into wednesday. autonomous say feather in the cap but ultimately it's not moving the needle for near term. >> you just said they do have a lead in autonomous you disagree with that phil said that waymo is a leader in the space? >> waymo continues to be a leader in autonomous when you look at traditional versus specific car manufacturers of this a lead waymo is miles ahead of everyone else >> in that sense, though, if waymo delivers surely they can roll that technology out to various automakers and this is something therefore that tesla shouldn't be bothering wasting money on >> that's why right now they need to prove it today that it's worth them investing because right now it's about where their capex, where that cash flow is going and if you look at what uber's doing, what waymo's doing, musk needs to come out here and present significantly why tesla's in a good position when it comes to autonomous. >> i think they also have to prove it's safe. there have been questions about

tesla's auto pilot which i don't even know if it's right to call a semi-autonomous vehicle and how much you can take yuf hands off the wheel during 245 whole process. where do consumers stand with all of this? >> i think there's real concern with some of this. they've seen the headlines there have been some accidents and it's ironic because we know how many people are killed every year in human-controlled cars but there's this consistent feeling that computers have to perform not just better but far better or people are not going to go with this idea of putting their lives in a computer's hands. so there's a lot to overcome still. and i don't think the time frame is realistic and i agree that waymo is way ahead. gm's got a lot going on with cruze and they're also an automaker so they can plus the cars as well as the technology like tesla but they're doing extremely well in rolling out the technology too. so it's still a horse race and nobody's going to easily win

this yet >> thank you both very much. dan ives, karl braugher. the busiest earnings week gets under way. bob pisani has a look at the biggest earners. >> it's a mix for the sectors. oil, exxon, chevron they're the market leaders because crude's at the highest levels since october. on those iran headlines. elsewhere, though, health care just a mess this month on that medicare for all plans but the story is it played out at this point? because united health is up two days in a row after dropping nearly 10% in the prior two weeks. but pfizer and merck you see here they're still to the down side on concerns about drug pricing. kind of a separate story there the s&p is only 1% from a historic high. the new high list is surprisingly sparse. there's not a lot of clear leadership parents kimberly clark, you? high, good earnings, good guidance smul group of consumer names new highs, procter & gamble, hershey and is smuckers. elsewhere in industrials the

railroads are doing well, union pacific and norfolk southern they're at new highs but the market leader for the year, technology is still waiting for the breakouts. only microsoft is at a new high but that is a historic high and i wilf, i think it's probably 10% of the s&p that's 1% or so from breaking out a lot of the biggest stocks. the s&p 500 are just below that level. as we get up another 15 points in the s&p, you'll see 60, 70, 80 new highs coming very, very quickly. >> okay, bob, great stuff. thanks very much we'll see you at the close in just under 50 minutes' time. just after the break, oil prices surge after president trump signaled a major shift involving iranian sanctions. we'll discuss how high crude could climb. >> and later, nobel prize-winning economist joseph stieglitz says america's trade policies have helped corporations at the expense of workers. he'll tell us what needs to change and we want hato hear from you you can reach out to the show always on twitter, on facebook or send us an e-mail

"closing bell" will be right back the dow's down 52 points

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the high of the day was down six, the low down 100. we're smith at the moment. to the bottom of the pack is nike down 1.7% travelers, ibm and american express make up the difference the markets have been oscillating. gains to declines for nine straight sessions in the dow if we end up lower that will be ten straight sessions of alternating between gains and losses >> a little indecision holding the highs for the s&p. oil prices doing especially well some of the stocks today after the trump administration said it was ending sanctions exemptions for the countries still buying crude from iran ylan mui has the details >> those countries have until may 2nd to stop purchases or face sanctions of their own. the list includes china, india and japan and today secretary of state mike pompeo said talks are already under way to minimize the disruption to global markets. >> we've been working with major

oil producing countries to make sure the market has sufficient volume to minimize the impact on pricing. both the kingdom of saudi arabia and the united arab emirates have assured us they will ensure an appropriate supply for the markets. >> in a statement the saudis said that they will coordinate with other producers to ensure that adequate supply but there were no specifics on timing or on production levels the white house says the sanctions are part of its campaign of maximum pressure on iran but the news was not well received in beijing. officials said the u.s. was acting unilaterally and overreaching the looming may 2nd deadline could also cast a cloud on an expected visit by japanese prime minister shins o. abe to the white house. the sanctions could end up being another thorn in those trade talks as well, guys. back over to you >> what do we think about the timing of this, in particular whether or not certain allies are starting to come round to the u.s. decision to pull out and therefore a bit of head room to increase the toughness on iran even if it's not something china perhaps welcomes

>> well, the six-month time frame was set back in november so that may 2nd deadline has been out there and the administration has been under pressure from the republicans on capitol hill to increase the pressure on iran. they do not feel that the administration has gone far enou enough we know the administration has had a lot of friction points with republican members of the senate and even of the house in recent weeks so this is one point of contention that could be removed. a lot of senators were cheering this there were 35 house republicans who have requested the u.s. take that harder stance on iran so this could be a way to also ensure the party is behind him as he takes some of these controversial members. >> ylan, thanks very much for that joying us to discuss further tom klosak, co-founder of oil prices information services tom, good afternoon to you thanks for joining us. same question to you what do you make of the timing you're a little surprised by

that, is that right? >> yeah, i think the timing was very inelegant to say the least. we're face an issue right now where gasoline prices are kind of lofty because of refinery issues and refiners, particularly in the united states, are going to be rung a million to a million and a half barrels a day more crude oil in the next 40 days or so i would have suspected that if the administration was really gaming this out that they might have turned the screws closer to the fourth quarter when perhaps as much as a million barrels a day more crude is going to be coming out of west texas via the pipelines that will be in service then so i think we're surprised by this and quite frankly i think the trade was expecting that perhaps we might get a cut of 400,000 barrels a day with some partial waivers but nothing like zero tolerance >> it's not like crude oil prices are exploding on this news they're up 2 1/2%.

i get your point they've been pretty much rising all year. but the fact that pompeo suggested they have guarantees from saudi arabia and others to fill the void, doesn't that stand to reason? >> i take the secretary of state at his word. but the idea of what's a proper price for saudi arabia or the united arab emirates and what's a sort of reasonable price for the west and the united states, they could be zramtically different. saudi arabia's going to have that 1 trillion to $2 trillion initial public offering in the next couple of wraerz and we know that to balance their budget they need a lot higher price. i think what happened on easter sunday was the secretary of state unwillfully basically said it is not safe to be short in this market. and when you're talking a market where futures trade 50 or 60 times the physical oil i think you've got some problems

>> tom, talk's through who the big importers of iranian oil are, what their reaction is so far or is likely to be and whether it's actually quite easy for them to get round this, particularly if they're not necessarily a close ally of the u.s. >> well, i think you pinpointed it before, or your correspondent did, when they talked about china. and i think china is the key here this doesn't help the relationship between the united states and china on trade. and china had been stockpiling some oil they'd been buying u.s. oil. but they probably have a preference for medium or heavy crude, which iran produces more of than let's say the united states so i think geopolitically this is a real challenge for the trump administration the second thing is in terms of politics we now have the intersection between politics and the price of gasoline. there's probably a half dozen states that the president needs to carry in the next election which are going to go above $3 a gallon in this driving season. and up until now it's been

mostly blue states >> do you think that the president is going to take any more drastic steps he's complained every time oil prices really spike on twitter that he doesn't want to see that, whether it's going to the saudis, talk of releasing from a strategic reserve. what's your sense? >> sara, that is the wild card and this president more so than any other president in the history of the oil business is a wild card in terms of policy he may have some alternate plans. he may look for all we know to temper down some of the product exports or try to control things that way i'm just saying that at this point the expectation was way beyond what happened here. the expectation was that we would continue to bleed lower on iranian crude. and all of this is happening with near chaos in libya, trouble in nigeria, and total chaos in venezuela so you know, we had some time.

probably if this happened five times from now, we'd be in a lot better shape because the u.s. will be producinging another million barrels a day of crude >> tom kloza, thank you. >> thanks, sara. >> still ahead, it is a big week for fang earnings with facebook and amazon both on deb but one strategist says he's telling clients right now to pare back on those growth stocks he'll tell us why straight ahead. and later a new report says the trump administration's washing machine tariffs are leaving consumers out to dry we'll see if that impacts 'rba aerhisus. wee ckft ts. this is loma linda,

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s&p 500 little changed right now. some pockets of strength, though, in this market p energy doing the best today up 2% as the group communication services technology and health care all higher real estate, materials and industrials are the loser. you've got a real mix. and stocks still staying within 1% of record highs if you look at the s&p >> and off the session lows overall. essentially flat for the broader indices. time for a cnbc update with courtney reagan.

hey contradicts. >> hi, wilf. here's your cnbc update at this hour university of georgia student is fighting for his life after being shot during an armed robbery. according to reports, two students were robbed at an off-campus apartment early this morning. police say the shooter is described as a black male driving a white ford mustang convertible with a tan roof. a federal appeals court has rejected former army intelligence analyst chelsea manning's request to be released from jail. manning is being held on contempt of court for refusing to testify before a grand jury investigating wikileaks. and thousands of jews gathered at the western wall in jerusalem today to attend a special priestly blessing. the certainly ceremony is held during the jewish holidays of passover at what is considered judaism's holiest site and ukraine has elected a comedian and actor as its next president. the country's exit poll shows volodomyr zelensk. y won the election with 73% of

the second vote. the results are seen as a reaction against ukraine's entrenched corruption and low standard of living that's a cnbc news update at this hour. back over to you at the new york stock exchange >> courtney, thank you another potential black eye po for boeing "the new york times" reporting shoddy production and weak oversight at boeing's charleston, south carolina manufacturing hub which is responsible for the 787 dreamliner when reached for a comment a boeing spokesperson sent cnbc an internal memo from the vp of the 787 program saying in part "this article features distorted information rehashing old stories and rumors that have long ago been put to rest. let's ask sheila kayalau, aerospace and defense analyst at jefferies. how much of an escalation is this about concerns around the safety of boeing planes? >> sara, i'd say about half of the article is really damaging from the standpoint of raising questions about whether or not they're rushing production,

leaving tools in planes when clearly they should be taken out of planes. they could cause a flight risk also there were some metal shavings with certain parts that potentially could cause an in-flight emergency. those kind of revelations are the ones people look at and they say hmm, is boeing rushing production are they really guilty of that which goes back to the 737 max the other allegations in terms of look, they were hard on the workforce and they wanted to unionize workforce and if we weren't unionized they were coming down on us, we and others have reported on that since the day they said we were going to be building a plant in north charleston, south carolina because it's not a union area and that they were trying to move away and diversify from the unionized workforce up in the puget sound area a lot of those allegations i think people read those and they said we've heard this before, we know that story, it doesn't mean those aren't valid concerns of the workers down there but it's not new issues that have been

brought to light >> phil, to the first half you mentioned 69 article, we did see an internal memo from brad zabak, a boeing vp, where he pushed back against this article in which he said this story does not define us. our. and our customers recognize the talent, skill, dedication, excellence, et cetera at boeing. is that still true do the customers in particular still rate boeing as highly as they did six months ago? >> i think overall customers do rate boeing highly in fact, you can see that when you talk with executives at airlines about the 737 max issue. they believe that boeing will figure this out. they still believe in the aircraft overall and that once these problems are figured out, they're approved and then the grounding is lifted by the faa and other regulatory agencies i think airlines will be comfortable once they make that changes flying the plane again and they're comfortable with other boeing aircraft that said, it doesn't mean that these allegations that are brought up in this article are not concerning if you are a boeing investor or for airlines.

and while they may come out and say we believe in boeing burp, behind the scenes there certainly are discussions between airlines and boeing in terms of the quality of some of the aircraft that are being built there. it doesn't mean they won't fly there. but this is natural between the airlines and boeing and airlines and airbus as well >> sheila, as an analyst who covers boeing and has covered during this whole grounding of the 737 max, how do you read an article like this in terms of implications for investors >> it's hard for me to verify what one or two employees of boeing say they have 153,000 employees. some facts on the 787, which is what the article and essentially -- is there have been 1400 ordered. there are 73 different customers of the boeing 787 and 40 of them or so have come back to reorder the aircraft boeing is slated to go up in production on that aircraft from 12 per month to 14 a month in the first half of this year. so from a customer perspective it's been very supportive of the 787 which the company is saying

there are bad practices around the aircraft >> how much have you had to reduce your earnings expectations for the 737 max in recent weeks and months and are you expecting to have to do that for any of the other aircraft whether it's the 787 or anything else >> we don't expect it for any of the other aircraft what we have done with march deliveries that came out is we've reduced our 737 forecast for the grounding. we've taken a stab at it we've said essentially it's a six-month production halt. so you're not delivering those aircraft so we've taken a cut but boeing is slated to report wednesday. we probably think the company is likely to remove guidance. that way you're not front-running regulators and you're kind of leaving a blank slate out there for everybody. >> how much of this uncertainty that's all out there is already in the stock >> i think some of the uncertainty is there in that the company has given back what it's done with its execution in that it start to trade at a bit less of a discount, to so a 20% discount to the market rather than the 30 at some time it's gone back to the penalty box and it will take some time to get back out there again.

>> terms of the question out there not about boeing but whether the faa had been lenient or lax or whatever the accusation might be, would they have applied that also to airbus as well when reviewing those planes is it something that could apply to both states >> i asked textron's ceo this last week. they're expecting their air jet to get certified, the longitude. that's expected to get certified this year in the first half as well and i think the faa has gone through very extensive processes. i think the aircraft industry and aerospace is generally very space. in general the industry doesn't want a knee jerk reaction to what the faa does and implement additional legislation or whatever it might be >> do you expect this episode, the crashes and the groundings, and articles like this to impact boeing's ultimate relationship with the faa and other regulators around the world? >> i think it's a good relationship in general but it all takes some time for the public perception to be better and that's one of the issues

perhaps. >> do you in the analyst community still back the current management team at boeing? >> yeah. i think there's no change in that whatsoever. i think this is a transitory issue. it's very unfortunate. i think the grounding will be lifted boeing is still working on a software fix there's no change, in difference there. >> so are you telling people to buy the stocks on days like this >> we like it because we think longer term it has significant yum side it's just these issues will be transitory in 2019 and the goal is to have 2020 intact >> sheila, thank you very much phil, also our thanks now. maybe we'll see phil later again on the tesla unveiling of self-driving technology. still to come, tesla holding autonomous driving event we'll talk more about that with chrysler president, former chrysler president jim press that's coming up >> but first, shares of consumer products company kimberly clark jumping, having a great day today on an earnings beat. we're going to dive into those numbers when "closing bell" returns. [knocking]

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welcome back to "the closing bell." we have 19 minutes left to trade. the dow just lower the s&p and nasdaq just higher it's essentially been like that most of the session. not too big a range. energy toward the top of the list because of oil prices surge while we have real estate at the bottom >> 40% of the dow and 40% of the s&p report earnings. maybe investors are waiting for? numbers this week. >> kimberly-clark. this is a giant mover. it's up 5 1/2% reporting strong first quarter earnings before the bell the company beating on earnings and revenue confirming its full-year outlook for 2019 also saw its group sales fall to $4.6 billion for the quarter compared to expectations of 4.5.

the real story is expectations of price increases this is a company like its competitors procter & gamble and clorox and anyone else who's in the household products space especially if you're working with materials like pulp which kimberly-clark does in its toilet papers and tissues p where they've had to raise prices on the consumer and for wall street there's been a bit of apprehension about whether those prices can be passed along kimberly-clark showed today it can. 3% organic revenue growth was the strong point and it really was on lower volume. higher prices. also international was a particular bright spot of 7% in terms of organic revenue growth which sort of raises the stakes for procter & gamble their top competitor, especially on diapers it reports tomorrow morning. it's also a good snapshot of a theme that applies to a lot of stocks this quarter, which is lower expectations because eps was down 3% year over year revenue down 2% year over year but both were big beats relative to what people expected because we've seen analyst snats come down and therefore it's reacting

to the up side. >> especially on these internationally exposed companies that deal with the stronger dollar and weaker spending growth. >> bed bath & beyond which are appointing five new independent members toyotas board. the move follows pressure from three activist investor groups for the retailer to replace the board and ceo. initially if you look at that chart it's a snapshot. it jumped 2% in the premarket and at the open on this news which would leave its board as 10 directors by may the 1st. 9 independent. six female which does feel like quite a big change and nod to the activists. but we have heard from a number of the activists, which include legion partners, mckelum and anchora which says this is not nearly not enough and that's what pulled the stock down 4%. the initial move in the thought this could put the activist pressure behind them >> one, what took so long to get so many female directors on a board for a company where you've got mostly female shoppers at

bed bath & beyond and bye-bye baby and err r number two clearly the market is pushing for more drastic dramatic changes at this company. >> focusing on the executive leadership not just the non-executive leadership either way it's rallied a lot since these activists got involved perhaps they should have stayed quiet today and they would have gotten a 2% gain rather than a 4% decline but net net their strategy seems to be working and moving things in the right direction >> they're feeling the heat. >> they're feeling it. >> up next a top strategist tells us why he's advising clients to cut back on growth stocks >> and later nobel prize-winning economist joseph stiglitz will join us. the two critical points he says president trump is missing on trade coming up. [leaf blower]

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pinterest and zoom on their second day of trade are seeing some positive response in a down to flat market pinterest up it 1/2% zoom up almost 6%. >> all-important second day. >> this comes after what, a 28% gain for pinterest 72 for zoom. >> lower volumes but yeah, relative to lyft an important progress for these tech ipos we have 11 minutes left to trade in today's session at the moment the dow's down 46 points joining our "closing bell" exchange omar aguilar from charles schwab our own rick santelli joining us. omar, i guess a sort of lackluster session today, was a bit of a lackluster week last week are you concerned that the equity market's running out of up side catalysts? >> i think last week and today still a low volume still going through the holiday period so it's a little hard to extrapolate anything out of today.

but the realities of the four months of the year have been quite good coming off a really horrible fourth quarter. and i think people are starting to look at any indication of what the fed might do next i think that seems to be a bit of the driver of sentiment related to investors investors seem to be comfortable. u.s. economy betion incredibly resilient despite we're in a global economic deceleration but we seem to be in a very comfortable situation where investors seem to be looking for a catalyst a lot of the earnings we're waiting for this week, a lot of that is already priced into the market so we'll see how the week falls. i do think that the gdp numbers at the end of the week will probably be a better indication of what the market will go from here >> and rick, on those gdp numbers due out i think friday we'll get the first look at the first quarter the expectations have improved tremendously in the past few days and weeks. what do you see? >> absolutely. some of the inventory numbers,

retail sales, a lot of these numbers when pushed, the control numbers pushed into the equation to calculate gdp definitely have improved i believe atlanta gdp now has moved toward a 2.76. we round it to 2.8 and the real heart of what we're describing here, sara, is that we pretty much now steve liesman's done many hits on it, that there's acyclical nature of a weak first quarter where the growth spreads more evenly and higher to make up for it in later quarters so if 2.7, 2.8 is accurate, that's a much better footing than many have -- would have thought just a month ago as you pointed out. and not only that, even though europe was closed today, the firmness in treasuries continue. the long end has hovered in levels we haven't settled at since 19, 20 and we are idling that bothers 134 people but there's a lot of old adages regarding you get your biggest volume at tops and bottoms and never sell a sleepy

market i guess i know which one out of those seems to fit the best. >> is this oil price not just today but progress year to date going to concern the fed in their planned actions in the years ahead? >> i think so. definitely the fed's paused and everyone made an assumption about six, seven, eight weeks ago that the next move would be easy. and i think that's the error and that's what's morphing and i think more people believe that the pause may result in an action that would be a tightening but that debate is for another day. even if the data continues and we get a gdp first quarter that's not too far below 3%. may guess is jay powell and company will continue to keep their powder dry >> on the earnings front which group are you looking for for particular beats now that expectations have been lowered so much? >> well, as rick was saying, i think the biggest underestimation of activity has

come at the consumer gdp activity, 65% of our economic gdp numbers seem to be driven by the consumer so we're looking at obviously consumer discretionary, an area that has been big growth component into the cyclical part of this market and they will continue to do very well because the consumer activity given the unemployment numbers and the wage growth are putting a big floor in terms of what those companies could do, especially now that the earnings estimates have come down quite a bit. industrials is another sector that obviously has a potential upside given the activity the government is spending and the amount of capex that has gone in through those companies. they have the potential positive catalysts. and i would actually say that technology despite the fact that it's not the momentum sector that we had last year is still the generation of free cash flow that has gone into that sector continues to be very, very attractive and with potential up side and especially with big

bellwethers reporting this week. >> omar, outside of equities where protection is needed how do you advise people go about that >> that's a great question we -- ai says earlier, a big part of where we are in the market now is volatility has come down quite a bit and people seem to be now forgetting that we had the spike in volatility in the fourth quarter like we had. and therefore a big part of the protection comes on the heels that yes, fixed income is here and there's a reason for being in fixed income especially because a lot of people thought this was going to be a horrible year in fixed income and now we saw with the fed activity how that changed and dramatically changed the direction of what people had the advice we have four clients is to go back to the risk profile and make sure they rebalance. after the four months that we had in the equity market like the rally we had, this is a perfect opportunity to go back to their objectives and rebalance between all asset classes, particularly their mix

between equities and fixed income that by now if you haven't done anything for the year they should be out of sync. so it is a good opportunity to make sure the measure of risk you're using is the right one for what you want to achieve your objectives. >> omar, rick, thank you very much we will leave it there up next we'll be back with the closing countdown with just five minutes left to trade. >> after the bell whirlpool will be reporting results that stock is up 30% so far this ar losing bell" will be right back ♪ lower carbs. ♪ lower calories. ♪ higher expectations. the light beer you've been waiting for

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welcome back to "the closing bell." about two minutes left of trade. there's the dow today. as you can see, the high was basically flat or just lower the low down 100 points. and as we approach the close we're down about 50. splitting the difference there all the indices for you. a little bit of gains for the s&p but declines for the dow and the nasdaq the dow, this will be the ninth straight session of oscillating gains to declines. the s&p not going to fall into that category. the nasdaq might do it but at moment is just higher either way as you can see essentially a flat session sectors for you only really real estate to the down side and energy to the up side that have significant moves. otherwise, as we're saying earlier, a relatively tight range. oil prices year to date for you.

nice little jump today because of those iranian sanctions that fed into those energy sector performance, bob. >> severn's up exxon's having a good year last time exxon outperformed anything what i'm waiting for is some more breakouts 1% for the new high on the s&p we've only got a dozen or so serious breakouts with kimber kimberly-clark nice day good earnings good guidance for them. overall i'm stit still waiting one big tech stock microsoft new high, historic high today. but overall probably 50 stocks 1% from big breakouts on the s&p 100 list the big guys are. stay tuned another 10 points up on the s&p the new high list is going to explode one thing that troubles me a little, retail getting killed today. remember the xrt a major mover throughout the year. a lot of people trying to buy in to the retail story game and everyone seems to have given up on that ghost today. that's down 2% but a lot of big names chico's down 3%, 4%.

5% down some of these names. >> consumer staples good off kimberly-clark there goes the bell, ringing the bell here at the stock exchange today. celebrating 30 years since the start of cnbc the chairman mark hoffman and a number of our esteemed colleagues that have been here since the start 30 years ago in 1989. a proud day for them particular shout out to chris garretty who's up there and on the "closing bell" team but our thanks to every one of those employees, here for 30 years and for shorter time frames. and here's to the next 30 years. the s&p's just higher. the dow just lower sara, back to you. >> welcome to "closing bell. we'll stay on that shot a little bit longer cnbc up, ringing the bell. i'm sara eyesen. wilfred frost joining me mike santoli has the day off

sort of a flattish day importantly, though, stocks did hold near their highs. up 16% for the year. within 1% of the record high s&p keeping above that critical 2,900 level. 2,907 is where we closed energy did well today. and the spike up in crude oil after the administration's new moves against iran communications services, technology, also strong places in the markets today groups like real estate materials and industrials. keep an eye on the russell 2000. the impact of small caps have been underprormg the moorkt in the last few weeks some people see that as potentially leading indicator. it's down another third of 1% on a day where the market was little changed here are the stories on our radar for investors. oil prices did surge today the red hot consumer staples sector losing some steam throughout the day three more companies announcing ipo news and whirlpool set to report earnings any minute now let's talk about the action. joining us, kevin o'leary, chairman of o shares etf

michael shimaka michlt michael, usually i turn to michael santoli right now and ask him what stood out amid the sort of flattish action on the averages he's not here. so i'll turn to you. michael yoshikami, what did you see? >> what's interesting is you actually had a stability in the market despite all the uncertainty floating around right now. oil prices have varied rather significantly and staples as you mentioned have had an amazing year as people are less concerned about interest rate increases and maybe more concerned about stability going into 2019. i think all in all a pretty solid session and i think really suggests that the market is well positioned to at least hold its gains if not move forward. >> kevin, your take in terms of the market flattening off a little bit but so close to highs. where do you want to be positioned at the moment >> i haven't found anything that's really compelling to buy outside of equities yet because fixed income still not that

attractive too much duration risk i think that's what's going to happen is we're right in the height of earnings season. we're going to be pretty happy with earnings. i don't think it's going to be anywhere near as bad as we forecasted back in q4. there's some pressure on margins everybody knows that that's built into market pricing. and then there's the specter which is intriguing of a trade deal with china. unknown the timing but the next leg up to me is around that trade deal i think it would be very compelling to be long equities, particularly large cap, s&p companies that do business in asia that go into that trade deal and stay in, stay long for another four or five quarters. so i think that's what's keeping the market quite low in volatility and a lot of optimism because we're not getting disappointed by earnings. >> michael, as far as earnings, i hear two things. one, the bar has been set so low. there's a lot of actually room for companies o'come out with good news. but then i hear that companies always beat earnings expectations on the bottom line.

so how do we judge the quality of what we're getting from the company 150id side and whether it matches this kind of valuation and higher valuations potentially for stocks >> that's a great question you're absolutely right. some companies are managing earnings so they can at least meet or beat that's why stocks get punished so many when they miss is because the companies know exactly what they need to do to be successful. what i think you want to look at is a couple things first of all, you want to look at gross revenues. what is the business doing itself a lot of times that doesn't have to do with import costs like commodity costs. it has to do with how successfully they're operating as a business. you want to look at gross revenues, gross sales. and then secondly i think you do want to look very, very carefully at where they're deriving a significant percentage of their revenue. as kevin just mentioned, i think a big, big overhang and possibly a positive for the market is what's happening in china. i'm in china fairly consistently and i think that china is a little more gloomy than we think here in the united states.

we'll have to see how that plays out. but those are the two things i look for when i'm really assessing the quality of earnings on a quarterly basis. >> let's talk about oil, which hit its highest level in six months after the trump administration announce td would no longer approve sanction waivers for countries importing from iran. the change is expected to remove 1 million barrels per day from the market kevin, what's your take on this and the energy sector more broadly? is this a moment to jump in given this oil price rise? >> i'm really intrigued with the energy sector. it's an area i've gone into full waiting with because it has not tracked the increase in oil prices at all. if you go to the really large names, the chevron or exxon, which positions for me but i'm going to make the assumption here is during this adjustment period while they're doing sanctions and all the rest of it we're going to maintain a sort of north of $60 price which significantly enhances free cash flow from a lot of big producers.

you haven't been wareward ford that yet as an investor. i understand there's volatility and that's why they haven't priced this up side into any energy stocks yet. but i like this sector going into the back end of this year and early next year too. i think this head squeezing on sanctions will continue. i think the president has made it very clear he's not messing around on this and that million and a half or million barrels whatever you want to say, anybody that trades with those guys is going to be sanctioned and i like the setup for what could happen on the back end with the big energy names. i like the sector and i think we'll say north of 6 o'for the rest of the year >> what about you, michael do you have any theory as to why the stocks have been held back and haven't run up as much as the price of oil which wti is up more than 45% this year? >> it's interesting. first of all there's obviously the huge headwind of alternative energy there's lots of press about electric cars, solar but i think it's important to really differentiate, sara, between the type energy

companies you've just been talking about. so exxon is a company that is primarily leveraged toward oil chevron is a company that's done very well this year, which is not only leveraged to oil but leveraged to other sources of revenue, alternative energy. and they're essentially trying to reposition themselves in the energy space rather than just the oil space. so i think there's certainly some merit looking at energy names. i'm a little more cautious in this area because i think you are going to have a demand issue and i think alternative energy is going to continue to cut into the demand for traditional energy companies >> let's talk consumer staples they were lower today. still closing near a 52-week high today, which was last year february 1st, 2018 the move was led by kimberly-clark which had its best day since october 2008 as well as constellation brands, lamb weston hoelgds. all had a good day kevin, these are companies that pay dividends. how do you feel about the

staples? >> and i love them very much i'm emotionally involved with most of those names. the sector's performing well for me all year. and frankly the consumer's 60% of the gdp in our economy anyway so why not go long here? and so far i haven't seen any weakness yet tltz occasional disaster story but that's a story problem they're going to fix maybe with the new ceo. meanwhile back at the farm the consumer's very healthy and we're doing very well with most of the other stocks, p & g included >> i would say, though, if you've been looking at the group over the last few years growth has been pretty hard to come by even though we're a consumer economy and the consumer has been doing quite well. you know, there's a lot of challenges for this group, kevin. private label. dealing with changes in the way we buy, we shop online, they've been fighting for shelf space. and yes, you've been seeing growth in a name like procter & gamble and coca-cola lately but that took a while. >> there's something to really fall in love with in these

stocks, and it's called cash flow cash flow as i like to say and when times get rough and there's a correction in the market or volatility comes people covet cash flow particularly the redistribution of that cash flow in the form of dividend repurchase or dividends or stock repurchase. this sector really has cash flow i mean, it is a wonderful, wonderful stabilizer in any portfolio. and i covet that a lot and right now there's not a lot of volatility but it's coming. i don't know when or what will make it happen and everybody will be saying cash flow after that >> flow. i like it. kevin. michael, strong cash flows perhaps out there but you just mentioned in an earlier answer for this earnings season the true mark is what the top lines of these companies are doing kimberly-cla kimberly-clark's revenue declined today so are you avoiding the staples? >> no, no. it depends on what you're -- interesting point our making it depends why you're buying staples. it's not a binary decision it's not that you buy

kimberly-clark versus amazon it's not one or the other. what is the role of staples in your portfolio after your role is as kevin just mentioned cash flow, dividends, more stable companies, perhaps core of portfolio, then you go off on the satellite and you start buying i think something you'll be talking about shortly, some of these ipos or high growth names? that's really the key issue. sara's right there's not a lot of growth in these names. it's all about the cash flow as kevin mentioned. if they have a role in your portfolio strategy as a stabilizer and income producer, that's hard to beat. >> in old school staples to the ipo market which is heath up once again the two companies filed their ipos today with the s.e.c. douyu a chinese e sports platform and luckin coffee a company considered the starbucks of china it falls on the heelds of beyond meat that disclosed its ipo terms with the company expected to price shares between $19 and

$21 per share. interesting spread of differing companies not just in the pure tech space given the focus there. recently kevin, what do you make of this slew of ipos rushing to market is it a sign of positives for the market or a sign that things have topped out? >> i am a little concerned, wilf, and i'll tell you why. there was a time not so long ago when the new york stock exchange would not list an uber or half of these companies coming public because they didn't make any money. so what i would prefer to have happen is when you take an uber, which is a serious offering, that is a massive, massive offering, it makes lyft look like nothing in terms of how much capital it's going to take to float that ipo, all of the cash that's going into that, you're buying into a company that has zero cash flow. and so you've grot to think about it from my perspective that is not an investment. that is a speculation. and i wish we had the same kind

of terms we had. the new york stock exchange, and i love that place and i go there all the time and i don't mean in any way disrespect here, but it was all about quality of balance sheet and income statement and now to consider bringing in companies that are simply speculations and i'm not saying that these are not great entrepreneurs. i mean, i use uber and lyft every day because every shareholder out there, including the private ones today are subsidizing my ride. and i thank you for that you are paying for up to a third of my ride that i don't have to pay. now, you want to keep doing that keep doing it. but the company makes no money and i think you have to think about that it makes the whole index more speculative and riskier. i would never buy any of these stocks because everybody sells me on a multiple of cash flow. there is no cash flow. there's speculation and they're risky. >> michael, are you with kevin >> generally, yes, i am. but i think there are different levels of speculation.

uber's a name it's a little hard to understand how they're going to make money. if you look at a luckin coffee, which is one of the ipos that were announced today, sara, that's essentially as you put the starbucks of china and when you're in china you see this brand all over the place. it's very, very popular. so i do think anytime you buy an ipo it's really not investing, it is more speculating but there are different levels speculation. i think coffee is a little different level of speculation than, say, streaming online gaming like one of the other ipos that was announced today. >> kevin, to that point, irrelevant of whether you want to buy the stock of luckin coffee or not, is it a big threat and worry to starbucks? here are some astonishing statistics they have gone from 1,000 to 2,070 stores they're opening 200 to 300 stores per month in china and at the current pace they'll overtake the number of starbucks stores by the end of this year

as you said they're loss make. is that a bigger threat to the incumbents in the marketplace? >> it also says the chinese middle class is starting to adopt the coffee culture which i find encouraging if you're a starbucks shareholder. there twiewas a time when people never thought coffee would take off in the world's fastest growing economy. there's room for a few players domestically so i don't think it's that big a worry. but frankly the fact that they can grow that fast tells me the middle class in china is a major factor and if you're an investor and you want to be part of that economy you've got to find companies like this. although i'd prefer them to be profitable because then you can apply a multiple to them but i think it just endorses the fact that this economy is going to be a major player in terms of investors forever. just forever in every sector they're going to be major players. and it's endorsed by the fact that these kind of companies can come out of nowhere and command share like this. >> we should point out that

beyond meaty don't think only made a loss of 30 million which is narrowing and douyu we don't have financials yet. alert on facebook. julia boorstin >> facebook announcing two new senior executives announcing nefrn newstead will join facebook as jennifer counsel she comes from the state department she's currently legal adviser to the united states department of state overseeing work in all domestic and international legal issues affecting the conduct of u.s. foreign policy. she was confirmed in december 2017 also announcing a new vp of global communications. john pinnet. he's currently vp of marketing and communications at paul allen's volkin he also led communications for bill gates for gates ventures and was at gates ventures for five years he was at google serving as head of asia pacific communications before that. and he held a number of jobs at

microsoft. so two very experienced new executives joining the team as facebook deals with a range of different issues facebook shares up about 1.7% today. back over to you >> julia, so a new vp of global coms what happened to sir nick clegg, the former uk deputy pm? didn't he take that role >> this person john pinnet is replacing someone named karen maroony, who's a long-time facebook executive and karen works with nick clegg. this is not replacing clegg but adding to his team of executives and very interesting here, wilf, that they're not picking another executive from another silicon valley startup they're going with someone with a lot of experience. and some people a lot of experience dealing with a very big tech name bill gates, who we've discussed as being an ooild of mark zuckerberg's >> kevin, i want to get your reaction to this is this too little too late? >> i don't think so. the fact there's been so much

media scrutiny on facebook a name i own, i just look at this 2019 the next six months of how much my companies are spending on facebook it's up 20% over last year. so while we sit around worrying about all this stuff, advertisers are still getting the best bang for their buck on this plactform that allows to yu geo lock pricing it's a phenomenal way to advertise. i think we've gone crazy worrying about the future of social media meatball, it's what's really working. i own the stock. the stock has been a fantastic performer. there's more and more cash flow going to it. and frankly most of the users couldn't give a damn about these issues they just don't care >> kevin, thank you very much. michael yoshikami, thank you very much also for joining us today. now, happening moments ago, elizabeth holmes and ramesh sunny balwani arriving for theranos's status hearing. the pair charged with defraugd

investors and patients in a multimillion-dollar scheme we'll monitor any headlines that come out of that hearing and bring them to you as we know more of course that story has dominated headlines in recent years and led to a number of spinoffs, books, podcasts, documentaries. and much more. >> i haven't seen her in a long time she looks different. not wearing the signature black turtleneck >> right >> we'll monitor that. also want to bring you some earnings that just hit the tape. whirlpool reporting. kate rogers tracking that name kate >> this is looking like a mixed q1 for whirlpool the stock was up about 6% last i checked. eps coming in at $3.11 adjusted. analysts looking for $2.86 revenues though a miss here $4.76 billion. analysts looking for 4.83 billion. to take you through some of their revenues for the quarter north america right in line at $2.5 billion asia though revenues coming in a bit light at $371 million for the quarter.

analysts were looking for 457 million. the ceo saying two factors driving earnings here. successful execution of price increases and also cost disciplines for whirlpool in q1. as you can see right now the stock is higher by around 6% conference call, though, guys not until tomorrow morning back over to you >> thanks very much. up 5.8% in after hours up next find out how tesla's latest self-driving car stacks up against rife sxlz whether we will see tesla autonomous vehicles on the road by the end of the year. >> plus we will discuss the state of the economy and whether ideas like wealth taxes will be support bid voters in next year's presidential election we will be joined by nobel prize-winning economist joseph igtzstli who saved by adding a hotel, which led to new adventures, ♪ that captured their imaginations

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moments ago elon musk mapping out why he thinks the company has a big head start >> all tesla cars being produced right now have everything necessary for full self-driving. all you need to do is improve the software and later today you will drive the cars with the development

version of the improved software and you will see for yourselves. >> but in an already saturated market tesla isn't even considered a contender according to navigant research the firm released its 2019 automated driver leading board naming waymo, gm cruze and ford as the top names to watch in this space >> joining us to discuss which car company could be first to market jim press former president of chrysler and steven schraderdufsh, at berkeley he focuses on autonomous vehicle infrastructure steven, tell us, where does tesla fit in the line-up of who's ahead on this technology >> tesla is one of many companies that have introduced a level of 2 automation system that allows for doing speed control on highways but it requires continuous supervision by the driver. and that's likely to remain the case for the foreseeable future

p i don't think their technology is anywhere close to what waymo has been developing in recent years, for example >> steve, to that point, just talk to me about how you see the industry shaking out waymo is a tech company. tesla or ford, et cetera are automakers if a tech company wins this race does it just use that zpej roll it out to all automakers or are people going to use that technology exclusively just for their own cars and no one else's >> i think it's a mistake to think of this in terms a race and to think of it as a single market it's actually a diverse clevgs application that's are susceptible to automation. for example, some companies are working on a taxi-like service which is more the waymo model. other companies are working on low-speed urban buses that would get people to and from transit stations other companies are working on low-speed urban goods delivery vehicles and other companies are working on high-speed intercity trucking they're all completely different from each other.

and those are applications are likely to be the first ones that are able to make use of higher levels of automation it's not going to be the personal passenger car that sits in your garage and you take out to go driving whenever you want. that's not where we are likely to see high levels of automation come into reality. >> so while the companies are sort of racing ahead with this technology and automation we've also got the regulators, the infrastructure that needs to be in place on the roads, consumers' willingness to trust self-driving cars. how do you think about the timing for all of this >> i really agree. it's way far in the future if you look at it, the industry i think it's like $80 billion have been invested in autonomous drive technology in the last four years the reality is these manufacturers that are in it, it's a business. and they're making investments from a very long-term payback

perspective. right now, for example, the number one rated current automatic drive system is cadillac, as an example. and gm drive is a leading group that very well could usher in the future and so i think that it's a mistake to think that a disruptor may come along and change the industry. more than that, the point you made of the regulators nhtsa is not going to allow a few cars that are not really safe to drive on the freeways, especially when they're saying they may have some fender-benders but at least it won't be a terrible accident nhtsa will be very strong like the faa is with airplanes. >> jim, what do you make of the timing of tesla's announcement ta today? >> well, obviously they had a very poor first quarter sales. i think on wednesday they're going to be announcing fairly disappointing earnings situation. and so the technology has always

been the shiny object that they've used i believe in a disruptor and he's a great inventor. but this is a business it's a large business now. and you can't just cover up flaws in the business model or lack of cash flow with spectacular announcements that really are pie in the sky. i'm quite skeptical of the timelines that he's established. >> jim and steve, thank you. >> thank you >> up next on the show, former council of economic advisers chairman and former world bank economist joseph stiglitz is here he's going to talk about president trump's trade fights and what he in of esthksthe proposals like the wealth taxes. we'll be right back. expertise. these are the building blocks enduring relationships are built on. as investment management professionals, let's measure up. cfa institute.

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let's always put investors' needs above our own. as investment management professionals, let's measure up. cfa institute. our next guest says that to tackle incomeinequality americans should embrace "progressive capitalism. joining us here is joseph stiglitz, former world bank chief economist, nobel prize winner, author of people, power and profits, progressive capitalism for an achbge of discontent should also mention former white house chief economist. welcome back >> nice to see you >> you timed this very well because this is what democrats are talking about. when you say progressive capitalism, is that the same thing that bernie sanders is talking about and elizabeth warren and aoc and all the other -- >> in many ways it is.

but it's kind of balanced. it says you have to have a market there that's going to be the center of our economy. but you also have to make sure the market serves society. and it hasn't been doing that as well as it could be. so that's exactly what progressive capitalism it isn't throwing out capitalism but it's trying to make sure that capitalism actually works the way it's supposed to and serves society >> so given that that's your response to that question, do you think the label socialist is being used too liberally on people like aoc and bernie sanders or are they embracing -- they failing with their own pr by allowing it to be applied >> it's very interesting those of us who grew up in the cold war, communism, socialism had a certain ring to it but these younger people, aoc, were born after the end of the -- after the berlin wall

fell and it doesn't have those same connotations and what they're saying is here are the things we want we think everybody should have the right to health insurance, everybody should have the education that lives up to their -- enables them to live up to their opportunity they should have a reasonable retirement and if you ask people do they want those things they say yes now, as you said, the question is what do you call it in europe they would call it a social democrat. some in europe would call it socialist. in france they would use that term we got hung up a little bit about this battle with communism. 70 years ago it's all over. and they're saying let's not fight a historical battle, let's go on. i prefer my own term just because let's not fight those battles over terminology and let's get down to the policies and the policies aoc talks about are the right policies. >> let's start with maybe medicare for all because that's

had a real impact on the health care stocks. they've gotten dragged down on this idea. is that something realistic? can we really afford such a thing? >> the way i emphasize it is to make sure that everybody has access to health insurance and there are many ways to do it health care for -- medicare for all is one way another one is an expanded and improved obamacare you know, what is clear, you asked a question about affordability, we spend in our mixed private system so much more than so many other countries and get much worse results. so reforms in our health care system would actually save us money and make us able to spend more on other things that we would like to have >> joseph, i'm interested that you said just a moment ago that you feel the policies articulated by the likes of aoc are the right ones so mmt, for example. >> i don't mean all the details.

>> you mean their intentions are the right ones >> their intentions. what i mentioned, you know, let's make sure everybody has health insurance, let's make sure everybody can get an education up to their ability, let's make sure everybody has a secure retirement. those ambitions can be achieved i think within our pocketbook with the right policies. >> like what >> well, i emphasize in my book something called the public option so you know, i talk about in health care we should have had the public option so that the people today who have only one or two health insurance companies would at least have a public option. >> we can barely afford the medicare system that we have right now. >> but a public option would give people more choice. and because the public option in medicare is actually more efficient we'd actually save money. let me give you another example. retirement the government social security

retirement program has much lower administrative costs than a lot of the private companies so giving people a private -- a choice, the public choice of investing more in social security if they want to, not forcing them, basic view is by expanding choice we will increase competition that will drive the public sector to provide better products rather than mortgages, the kind of mortgages that led to the financial crisis in2008. having better mortgages that help people borrow at a lower interest rate and manage the risk of home ownership, the most important asset people have. stay if their home when the economy goes up through its normal ups and downs >> joseph, broadening it out, do you feel like the wealthy in society need to pay more and if so what is the way to achieve that >> yeah, they definitely need to pay more warren buffett put it very clearly. something was wrong with our tax system when one of the richest

people in the country pays less tax as a percentage than his secretary. he got it right. there are many ways of doing it. some of them, for instance, making people who earn capital gains pay the same rate as somebody who works for their living closing some of the loopholes that we have that people in private equity take advantage of those kinds of things would raise actually trillions of dollars over ten years i actually think also that we need to have a more progressive tax system in a period of our fastest economic growth we did have a more progressive tax system. and we could use that money. we did this in eisenhower, a republican we used that money for a national education program, for a national highway infrastructure program, for national research.

it's where we began our big research programs. and those were the periods of our fastest economic growth. so it's not an accident i think when we had higher tax rates, more revenue going into these public investments, we actually had a higher growth rate >> are you advising any of the democratic presidential hopefuls >> i've talked to them and i'm willing to talk to anybody that wants to listen >> is there anyone that you think have policies and laid out plans that actually make economic sense >> i think a number of them do this is early in the campaign. they're not putting together the whole agenda they're raising ideas. several of them have raised the ideas about -- that we've talked about, the need for more affordable education, the need for health insurance for all >> but the actual -- >> i think right now going to the details is not what the country needs. it's really a debate about our

values and the framework for getting that one of the things that got hillary in trouble i think is she had all those numbers down to the penny and said go to my website and you'll see a 49-point program it was very worked out but it wasn't what motivated people they want to know what are you going to try to do -- >> doesn't president trump have that message when he says look, i went after the unfair trade practices, i watched -- i watch out for the little guy, i tried to save the coal industry? you know, he can point to those same things that you're talking about. >> and then we can look at what it actually did in the tax bill that raised the taxes on a majority, a majority of those in the second, third, and fourth quintiles, that is a majority of the middle class facing higher taxes. and you know where all that tax money went a trillion dollars of buybacks not in more investment >> just quickly what's your

outlook on the u.s. economy in the next couple of years >> i think we're going to go through a rocky period we're not going to go into recession probably but i think we're going to be coming off of the sugar high and that's what most -- you know, the imf forecast, most of the other forecasts show a significant slowing cowdown of economic growth. the trump tax cut was designed to give us a sugar high, get people to spend a little bit more money -- >> they don't call it a sugar high >> but it wasn't designed for long-term economic growth. >> well, it wasn't designed for that the debate is still open as to whether it will lead to that the data most recently picked up in retail sales. >> there's always a little, you know, but the overwhelming evidence is that within 18 months we're going to see a significant slowdown in growth from the 3% at least that was promised >> we will have a look at that when it materializes

joseph, great to see you as always joseph stiglitz. up next the latest details on samsung's $2,000 foldable phones that are breaking and the potential winneranlors omhafaout.d se can i get some help. watch his head. ♪ i'm so happy. ♪ whatever they went through, they went through together. welcome guys. life well planned. see what a raymond james financial advisor can do for you.

time for a very special cnbc news update. ring the closing bell is sue herera at the new york stock exchange what a treat congratulations on 30 years here >> thank you so much and congratulations to the whole cnbc team. all of them on the podium here all right. here's what's happening at this hour, everyone sri lanka's president is giving his military sweeping police powers following the easter suicide bombings the attacks which targeted churches and luxury hotels killed at least 290 people four of them americans the south asian country is under a state of emergency an unprecedented move by the trump administration it is offering rewards of up to $10 million for information that disrupts the finances of lebanon's militant organization hezbollah. this is the first time that program is being used to target a financial network. it is typically used to track down wanted terrorists

the dpil pooenz surveying damage from a 6.3 magnitude earthquake that struck near manila thousands of residents and office workers fled when the quake hit but no immediate reports of injuries and it wasn't strong enough to trigger a tsunami. and authorities are not blaming a seismic event for a building collapse in istanbul. rather they say a load-bearing wall at a nearby building caused it to tumble off a cliff luckily, no one was in the building you are up to date that's the news update this hour guys pleasure to see you. >> sue, it's great to have you here on set in person. >> maybe you should do this every day. >> well, i've got a lot of other things that i have to do after the news updates otherwise, i would love to do that >> sue, the 30 years i would guess a lot has changed like having a set in the milled of the stock exchange which would have never been possible 30 years ago. what stayed the same, though, throughout same mission every day >> i think the same mission. it has changed a little bit in terms of its focus, whether we're growing our digital business and things like that. but the focus is always to give the viewer the best information, most timely information in what

is increasingly a really complicated world. and that's what we do. >> sue, awesome to have you here with us. >> thank you, guys >> glamour shots sxwlp there we go. >> a little air change >> and look at those shoulder pads >> sue, great pleasure to have you on set congratulations on ringing the closing bell along with our colleagues celebrating 30 years of cnbc. samsung is delaying the refls its galaxy fold smartphone the tech space including cnbc's todd hazelton reporting their device malfunctions. josh lipton with more. >> samsung only saying now it will announce a new release date in the coming weeks. that decision coming after tech reviewers reported malfunctioning units for example, cnbc's own test unit began flickering and then stopped working completely so what ent wrong here samsung talked about impact on the top and bottom, exposed

areas of the hinge there was also an instance where substances found inside the device affected the display performance. the company saying in a statement, this new device priced at nearly $2,000 was greeted with a ton of fanfare sxr to good reason it does represent a radical new design and it arrives as samsung faces real fresh on the high end from apple and huawei and the low to mid range from chinese vendors like xiaoumi oppo and mimo but huawei with its mate x samsung was trying hard to be first to market here idc's ryan reed says this news in the short term could damage its brand and reputation given all this bad press, perhaps reminding consumers too of those note 7 battery fires but long term reed still expects samsung to be a winner in this new emerging category because of how much money and time the company has already spent and because it's still a tech giant with a true global reach guys, back to you sflp does it

impact anybody else's plans, josh >> right now you have samsung, huawei, xiaomi teased as well. wreath is making the argument there is some reputational damage you can certainly understand what the attraction is to those kind of devices. it's small when they need to be, when they're tablets when you need that. maybe if you're writing longer e-mails or watching netflix. so you can understand the excitement but samsung at least for now saying weigh the evidence, maybe make some improvements here. >> josh lipton, thank you. up next, detroit's driving problem. turns out teens aren't counting down the days until they get their driver's licenses anymore. the reon washy and the big impact it could have on automakers straight ahead. [ alarm beeping ] wake up! there's a lot that needs to get done today. small things. big things. too hard to do alone things.

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2019 through 2020 season it's not a demand thing. there's a lot of demand but there's also more supply and so i guess these prices are collapsing could be a good thing for starbucks because i don't feel like i'm paying less for a cup of coffee. >> no, certainly not a lot of these places feel -- i'm amazed a brazilian surplus leads to this. >> you tell me if you're paying. >>and very rarely do you reciprocate and pay back they advertise where they get their coffee from, all sorts of locations around the world i don't know why a surplus in one leads to prices falling overall. >> brazil is a major producer. >> sure, but i feel like colombia, whatever fewer teenagers getting behind the wheel the rise of uber and lyft and migration to big cities, only 25% of 16-year-olds have a driver's license in 2017 compared to nearly 50% in 1983

j.d. power estimated gen zers, born after 1997 will purchase 120,000 fewer cars this year than years past. it's sort of an obvious trend when you think about it, particularly if you live in big cities manhattan is a great example no needed, prohibitively expensive to own and park a car with easy services getting around >> growing up in cincinnati what a big deal it is to get your learners' permit, 15 1/2 to get your licenselicense. >> it's a huge freedom >> what age? >> 17. it's national at that age, whereas you guys it varies from state to state >> yes >> the flip point is no drink driving risks for young people, going to parties, no one has to be the designated driver so might be bad for the automakers but maybe safer. up next, crashing in on

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internet that puts alright boys, time to eat. that handles anything. [ crowd cheering ] that protects what's important. and reaches everywhere. this is beyond wifi. this is xfi. oil a big story today, soaring to a six-month high on news the trump administration is ordering all buyers of iranian oil to end their imports or be subject to sanctions the decision intended to bring iran's oil exports to zero for more on what this means for oil companies we bring in paul sanke from azuho did see a boost off this decision when this happens, more pressure from the u.s. on iran, what part of the oil patch do you want to be in? >> straight out oil leverage, so for example we like crc, californian resources which is essentially a pure play

californian oil producer, brent levered gets brent pricing for crude. we have the issue that we're seeing today that brent wti spreads heavy spreads are blowing out. you want to be levered to brent which is the international crude. our favorite crc is a pure player >> you think the oil price jump today is the start of more momentum to the upside >> we do worry about it going too high if you're in a situation iran will block the strait of hormuz you'll get a bid on oil. this is 20% of world's traded oil at threatitcould be an enormous problem and we'll have to watch out even the threat as you can tell is enough to get people jumpy. >> why do you think oil prices, oil stocks haven't done as well as oil prices, and does that end now? >> over the past two or three years, i think there's been a conviction on long-term prices the near term operates jumps but the longer term operates doesn't move as much it's talking about a short term effect obviously the oil stocks have to

earn that money over time, and therefore you need to see the long-term operates going up in a more sustainable way additionally you've got this issue if the operates goes up too much, it's a problem for oil. we don't want oil to get out of control here because the cure for high oil prices is high oil prices >> we're out of time paul sankey great to see you that does it for us. >> "fast money" begins right now. >> "fast money" starts right now, live from the nasdaq market site it is the ipo aftermath, it's been a mixed bag for some of the largest public debuts as those stocks get off to the races and the trader also tell you which ipos are hot and not facebook, twitter snap on deck for earnings roger mcnamee will be here to explain. first we start off with energy catching fire. the sector is 2% today, leading as