lunch. the fun, though, doesn't stop here we've got one more round of picks to make. >> we're going to take a short break and then you can join us on cnbc.com, facebook live, twitter and youtube. lots of ways to watch round 3 of the cnbc stock draft meantime, let's bring in will fred frost and sara eisen pour "the closing bell. sara, we missed you this year. >> i missed you. here's my favorite line i wrote down fast cars, fast alls, i go with noah syndergaard on the tesla pick >> great job i love the bobby flynn michelin starred chef and he absolutely adores simple old ketchup and mustard. goes for kraft heinz >> though not many millennials do these days. guys, that was awesome again, as always, i miss joining you but loved watching it. >> fantastic have a good show, guys >> we are here on the floor because the action in the markets in this final hour of trade is all about 3m. we're at post 8 where 3m trades. >> 3m is currently taking 92

points off the dow which in total is only down 83 points let's have a quick look at what the markets are doing with the dow down slightly 0.3% as we said the s&p is just higher as we look at things. meantime, the nasdaq, the one to focus on, that is up about 0.4%. 8120 the level to look at as to whether it will close at a record all-time high the nasdaq is higher why? because facebook and microsoft powering it high 6% higher for facebook microsoft up 3.8%. the number for microsoft to watch, 130.50. that would take it above a trillion not currently above that number but nonetheless nice gains for those stocks which of course reported numbers last night. lots more earnings coming later. sara >> as we watch to see whether the nasdaq closes at another record high which could be the second time this week, we've got a big interview coming up for you this hour. legendary investor howard marks will be joining the show of o

oaktree to talk about valuations at these levels. and also what he's calling responsible capitalism observations about politics going into 2020. and the six box will be back heavy earnings day we've got earnings coming for you from amazon, intel, starbucks, ford, t-mobile and mattel but first we've got to start with this 3m news, reporting this morning morgan brennan joining me here at the post. to talk about what went wrong and what was so disappointing. >> yeah. as you can see right here it's down almost 13%. that is a big move for this industrial giant and basically you saw a miss on the top end, bottom lines. also the company cut full year guidance, second time it's done ha since the start of the year net sales down 5%. demand for products in china were especially weak we saw those sales there decline more than 4% adjusted after two years of growth. you had the car business down 9% you had electronics group which makes things like films for lcd screens, so think smartphone exposure, that was down 12%.

really across the board. volumes in all regions declined -- i'll sum up like this here's how ceo mike roman categorize td. he said, "we continued to face slowing conditions in key end markets which impacted both organic growth and margins in our operational execution also fell short of the expectations we have for ourselves the announced restructuring. they're laying off 2,000 people, which is about 2% of their work >> which gets to the question of whether it's a 3m problem or a broader problem. all the industrials are getting sucked into the sell-off today does it make us worry about the global economy or 3m >> it's such a key question. 3m has 60,000 products, location and exposure all around the world. certainly folks take note of this that said, some of the other major industrial bellwethers we've gotten results from so far be it caterpillar, honeywell, even ups whose ceos was on squawk alley earlier this morning they're signaling they're seeing stabilization, even signs of improvement in

some of these key markets like china and ha there is globally growth just maybe not as much or not as fast as we saw last year. but keep in mind, though, 3m the lead time to manufacture, say, an kaex vaitor for caterpillar a lot longer than some of the products 3m makes and sells to the market like tape and medical supplies, et cetera, so 3m is seen as a more immediate barometer of where we're at in terms of the economy >> morgan, happy birthday, by the way. it is morgan brennan's birthday. and 3m is down 13% will fred, over to you >> happy birthday, morgan. let's get to the closing bell exchange aaron brown from pimco and our own rick santelli joining us to discuss the markets with about an hour left to trade. 56 minutes left to trade aaron, do the recent sort of all-time highs that we've seen make you think we're due a pullback and a sell-off now? >> i do think that going into what is seasonally a weak period

w between may and september that gives us some pause that maybe things aren't going to be able to extend much further in here over the short term but i wouldn't be selling risk outright i would be looking for idiosyncratic opportunities, particularly stocks that have done really well, maybe lightening up on those positions but buying back some of the value sectors we tend to like. so we're looking for some of the sectors that have underperformed on the way up, looking to rotate into those sectors and also take money off the table for the sectors that have done well year to date. >> and one of knows sectors that you like, erin, is energy, is that right >> energy we think, at least the energy oil producers, have underperformed the appreciation we've seen in oil prices outright so we think that xop, the oil producers right now look good. mlp is also really attractive. looking for some of those value opportunities on a sector basis or a stock-specific base thais have underperformed.

another sector that we think that also looks attractive right now, we think looking at some of the more defensive sectors, particularly going into what we think is going to be a more seasonably weak period, also tend to look attractive and maybe taking some chips off the table with respect to semiconductors as an example that have done really well the home builders is another cyclical sector that has done really well. looking to lighten up on risk there and rotate into some of more defensive sectors of tech like the software and services which are beating really significantly on the earnings perspective at least for the first quarter year to date >> rick santelli, we've been watching the economic data we did get a pretty good at least headline durable goods report today how's the economic data matching up with what we're getting out of earnings which are mostly pretty positive? >> i think they're matching up mostly pretty well there's already a number of analysts on the street saying hey, what earnings recession but of course calibrating when the data actually shows up consider, today that number you

referenced, 2.7 on preliminary read on march durable goods. is most likely going to change it's already a bit of an old number but i think you now can see of more of the fuel from some of these earnings pictures we are getting word of where they're coming from. that headline number wasn't the only part of the report that was good up .4 transportation was solid and up 1.3 with a positive revision very good. then tomorrow we all know after today's draft there's stocks we call the dogs of the dow from the priests year tomorrows numbers are the dogs of the economy first quarter gdp. 30 years of research, steve liesman worked on, it always considered the weakest while six weeks ago atlanta thought it would be .2 today 2.7. they're probably on the high side of expectations running slightly over 2% but the point is if tomorrow's number is 2% or higher and

that's the dog of the economy then i really think earnings over the rest of the year are going to do better because most likely the next three quarters will be better happen ththan th. >> david rosenberg said to us earlier in the week in his typical kind of bearish number that this gdp number doesn't really matter it's backward looking and there's other factors going forward that are much more important. what number, though, would put that to bed if it was a real positive surprise and suggest he's wrong to have that bearish outlook? >> now, first thing, rosie is one of the most brilliant economists everybody on had floor's a big fan of rosie but he nailed it early he has been leaning on the bear side and if you lean on the bear side long enough sooner or later you're going to be right to me all's we need is 2% or higher and to me that's solid. it's backward-looking. i understand that. which means we now know the pole position we're at for the next couple of rounds of earnings in the next couple of quarters. >> hey, erin, wanted to talk about your call on semis they've been so hot, those chip

stocks we're going to get intel after the bell seeing new highs what's your view there on what to do next with them >> we're cautious on semis right now. if you rewind to the start of this year, semis were trading at six-year lows in terms of their forward p/e ratios now they're at new cyclical highs. so they've rebounded from about 11 times forward p/e to about 17 1/2 times forward p/e that's a really significant move in terms of the multiple expansion that we've seen in the sector year to date and at the same time we've seen earnings come down. while we think that maybe the back half of the year will look good for the semiconductor sector when you look at the export orders that came out this past week, so earlier this week on monday out of taiwan and korea, both are still highlighting that there is concern with respect to the semi and the supply chain for the semi sector. we think expectations are really lofty for first quarter for the semiconductors they've done really well year to

date i think right now we'd rather be longer some of the more defensive sectors within tech like the services and software sector and look to start to sell out of semiconductors. >> just quickly you think now is a good time to be buying the german dax >> yeah. getting back to the point i'm looking for value, one of the dax underperformed pretty materially last year, largely on the weakness that came through through the channel with respect to china trade but also because of auto tariff concerns we think that the dax right now is attractive. they're really levered to a pickup in global trade and a pickup in the global manufacturing cycle. we think that you're starting to see early signs of that. so the outlook for the second half looks better. china's already rallied. we're looking for what's next, and we think the dax offers really attractive valuations as well as is really levered to the cyclical part of the economy that we think is going to do

better in the second half of the year >> erin browne, rick santelli, thank you both very much still to come, an exclusive interview with legendary investor howard marks of oak tree what he sees as the biggest risks to the market as the s&p hovers around record levels. >> and after the break former jcpenney ceo and head of apple retail, ron johnson is here. he'll tell us what to expect from amazos sun'relts next hour. we'll be right back on "closing bell." dow's down 106 the latest innovation from xfinity

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like never before store. the xfinity store is here. and it's simple, easy, awesome. facebook soaring tesla facing pressure after areporting a up bigger loss than expected that share price has steadily declined throughout the session. late last night only lost about a percent or so in the after-hours market but down 4 1/2%. >> jim cramer making the point that maybe if it were another stock it would be down a lot more on a 10% miss on revenues, miss on deliveries, miss on earnings, somehow getting the benefit of the doubt a little bit. fast cars, fast balls, noah syndergaard. that's the quote of the day.

the first biggie to report is amazon after the bell. joining us to talk more about the retail landscape former jcpenney ceo ron johnson welcome back, ron. >> nice to see you >> really for investors amazon reporting is a tale of three businesses besides e-commerce it's web services and the advertising business which is going very quickly. what's your sense of houf e-commerce is doing for amazon as those other two power the profits? >> the other two are powering the profits. it's interesting to watch amazon's physical retail business evolve because they were the leader -- or the king of e-commerce but we're now in a post-digital world where the digital retailers are racing to physical faster than physical are racing to digital. >> is amazon having success with that >> it's too early to tell. but you think of amazon, whole foods, convenience stores, a grocery chain, a thousand-store tie-up with kohl's they recognize they need a physical presence in addition to their online in order to thrive. >> who have the traditional

retailers is adapting well and likewise of the e-commerce guys adapting well to move into that center ground, the middle of the venn diagram >> every one of the digital first brands has a physical strategy you think of warby parker, peloton has stores if 23 states. casper has stores and partnerships with hudson bay everyone has digital only has a physical portion amazon's building that up. but the same software that powered online commerce has now been used by the good physical retailers to fight back. target's at the lead >> target and walmart are doing well wholesale are doing well >> the big tire stores macy's, penney's, off mall the big maumz that aren't very successful malls >> wanted to ask but a brand in retail that is doing really well, and that is lululemon. the company held its first analyst day yesterday in five years. we talked to the ceo kevin mcdonald his first treev interview today where he's laying out a pretty ambitious droeth agenda and i asked him

how is it doing better than the rest of the industry, what's resonating with lulu versus the rest avenue parol? here's what he said. >> it goes back to the performance of the product it goes back to what the brand represents we're a purpose-driven brand that reflects the values, connects to the community, and brings a spirit through our educators and the ambassadors in the community that we connect, and i just think that is a very unique position to have in the marketplace. it's an incredible product that performs and people feel the heart and soul of the brand. and i don't think that will ever go out of style. and we're connecting with the minl yalz today as strong as we're connecting with our current demographic. >> if you heard a retailer talking about connecting with the heart and soul and the values and knowing your product and knowing who you are, i mean, i don't know that retailers would have talked like this back in the day but with lulu it really appears to be -- is anyone else doing this >> that's what we did with the

apple stores back when they launched in the early 2000s, it was about a place to connect it was about a place to be so we kind of were a big part of that but lulu's done a fabulous job when you're a first mover in a category like the active lifestyle you'll be always known for that and they lost their way a little bit but now the product's great, it's fresh, they've got a big men's business their stores are dynamic i was at the columbus circle they've got a brand new store right at the entrance. they're another example of a physical first and digital retailer that's thriving >> you mentioned apple there and that you guys did some of those things quite a long time ago has the evolution of the apple retail product and brand image therefore lagged some other rivals over the last five years perhaps as they've kind of copied and caught up >> i think others are trying to emulate apple but apple's still a great store. i mean, the stores are incredibly busy. they've been revamping hem, restyling them, improving service in the store, really

working hard at it the apple store is really the gold standard to most people zwlu mentioned the kohl's partnership with amazon. kohl's in more than 1,000 stores is going to take amazon returns. how much of a needle mover is that -- >> kohl's needs traffic. retail traffic is down you've got to find a way to get people in the stores they're now getting the amazon customer into their store who then has money in their pocket after a return it's a great opportunity >> ron johnson, thank you very much >> thank you >> we've got 40 minutes till the closing bell take a look at the major averages dow's down 104 well off the lows for the session. at one point we were down 286 points 3m is the big drag there on record high watch for the nasdaq level to watch there we're at 8127 so around 8120 coming up howard marks tells us whether he thinks investors are getting ahead of themselves as the market pushes to new highs >> plus amazon closes once again

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here are your winners in the dow right now microsoft by far it's driving the nasdaq higher toward a record high 3 1/2% higher above the trillion-dollar mark after better earnings last night merck, boeing, american express and disney disney hitting a record high in today's session. >> shares of luxury homes in one hedge fun favorite town are languishing on the market and it could be a troubling sign for other high-end locations diana olick joins us in greenwich, connecticut with that story. hi, diana. >> reporter: hi, wilf. look, if you're looking for a bargain, try ginnwich. when do you ever hear that this home on one of the grandest streets has been sitting on the market for over a year its price now cut by over a million dollars. so for $4.5 million you get six bedrooms, nine bathrooms, a pool, a chef's kitchen, two flat acres. but that price comes at a price. thanks to the new cap on state and local tax deductions

>> it can be significant you're looking at five, six, seven million-dollar properties that pay 100,000 to 125,000 a year in taxes and now you can only write off $10,000 what that does is impact value but it takes a while for buyers and sellers to agree on what that value is. >> greenwich sales in q1 of this year were down 25% compared to a year ago the median price down 17% to just over $2 million days on market, 214. and inventory is up to a two-year supply of homes for sale so it is a buyer's market. and for sellers unfortunately like for these homeowners who bought over a decade ago, they are likely to sea a loss back to you guys >> diana, thank you very much for that we have just over 30 minutes left of trade, and we're down 104 points off the dow well off the lows. and the dow is dragged down by 3m about 80 to 90 points of the --

>> s&p went positive >> nasdaq 8125 it's looking likely to close at a record all-time high again. still ahead, shares of ford are up more than 20% this year we'll speak with the company's cfo in a first on cnbc interview when earnings hit after the bell >> after the break legendary investor howard marks of oaktree joins us to discuss the market's climb to new highs and why he is advocating for what he calls responsible pilicatasm i'm working to keep the fire going for another 150 years. ♪ for beauty that begins with nature. ♪ to make connections of a different kind. at adp we're designing a better way to work, so you can achieve what you're working for.

welcome back to "closing bell." s&p 500 goings to here in the last few moments up about a tenth of a per krechbt. communication services going strong facebook doing well after earnings health care utilities financials technology and energy all higher today. it's industrials the big losers off that earnings miss from 3m ups not helping. materials and staples also bringing up the rear >> time for a cnbc news update with the one and only bill griffeth >> will fred frost, thank you so much here's what's happening. sri lanka has now lowered the death toll from the easter suicide bombings by nearly 1/3 253. saying that the blasts had damaged some bodies beyond recognition making accurate identification difficult

the country's prime minister says some militants who may have explosives remain on the loose back here, community members and activists have been gathering in michigan to mark the fifth anniversary of the flint water crisis they all voiced their concerns, their frustrations and their demands. >> the crisis is not over. the health and well-being of our community has been affected. and we demand medicare for all who have been impacted by the water crisis meanwhile, president trump's embattled federal reserve board pick stephen moore is comparing the negative reaction to his nomination to the one faced by supreme court justice brett kavanaugh. moore says the personal assaults against him have nothing to do with economics and as you may recall, sara, back in 2014 mr. moore in an interview, he called cleveland and cincinnati the armpits of america. >> i do not recall but i read it yesterday. outrageous >> not sure if he was referring

to herr economitheir economies r >> he was saying if you live in the midwest you should live in chicago, why would you want to live in an armpit like cincinnati >> i apologize on behalf of everybody for you. >> hopefully he was kidding. i'm sure he was kidding. >> you can only hope >> bill, thanks. big moves in the market today. nasdaq hitting another record intraday high. we'll see if it closes at a record s&p just a few points away from its own intraday high. perfect time to talk to our next guest. joining us in a cnbc exclusive is howard marks, co-chairman of oaktree capital group. welcome back >> thank you very much, sara >> how healthy does this rally look at record highs >> well, the mere fact of record highs shouldn't be a problem the economy and most corporate profits do better over time. so most things should gain over time i think that on the one hand the economy and the bull market are old but on the other hand the economy still appears to progress and the valuation of the stock

market is not egregious. >> but it is at levels i guess that led to pullbacks late last year and early last year >> that's right. look, the market can do anything anytime. and it certainly did so in the fourth quarter i thought the fourth quarter move was overdone and unwarranted. and it's not back. >> when you say not egregious valuations what do you mean? >> the long-term history of the p/e ratio on the s&p is 15 or 16 it got up to 18, which is a little high. got down to 14, which is a little low now it's barely on the high side but you look at 2000, the p/e ratio is 32. that's egregious 16 or 17 is not egregious. >> when you look out there at the moment and try to figure out how much risk to be taking what are the key factors you look at? >> well, there's so much to look at

wil there's the length of the recovery and bull market, how far they've moved. valuation levels the economic outlook, the geopolitical factors and then there's psychology. what kind of psychology is factored into prices the relationship of price to fundamentals is determined by psychology when psychology is too euphoric and too bullish the price will be too high relative to the fundamentals and vice versa. so we want to know how much euphoria is incorporated in security prices. >> what does all that thinking tell us about where we are today? >> well, today we're a little on the high side. i don't see a lot of euphoria. i don't see people saying, you know, this is your last best chance to go to get in the stock market because it's going through the moon the market has been doing something that when i was starting in this business we used to call climbing a wall of

worry. you know, people say oh, i know it can't go on forever, what could stop it? that's healthy if people are cautious in their expectations so i don't think that -- i don't think that the psychology is nuts and it hasn't been really throughout the whole bull market what's a little challenging is that it's all caused by low interest rates because the ultra low interest rates cause people to desert cash, treasuries, and money market and high grades and move out the risk curves in pursuit of what they consider acceptable returns >> it's something you've been wondering about for a long time. >> and i'm not going to stop >> you still think credit bubble developing >> well, i see because of the low returns on safe instruments, i see competition to get into aggressive instruments and when people compete to put money out they do so by being

willing to receive low prospective returns and high risks and if that's the case we should know about it and act accordingly. >> but with the fed's pivot do you feel that rates have peaked for this cycle and if so does that kind of abate some of the fears you have about there being a credit bubble >> number one, i'm not a fed watcher. and number two, i don't believe in predictions, especially my own. but you know, nobody predicted the pivot four months ago. nobody can tell you what's going to be going on four months from now. if the economy is strong, if growth kicks in, if we start to see the beginnings of inflation, i think you'll see rates higher. >> sometimes you pointed to pockets of the market like the fang names, for instance, which are frothy >> yes >> if you look at what's led us back to these record highs, technology, it's the semis, it's the software companies and the fang names also. >> well, these are the areas which are most prone to

fluctuations in psychology and you know, i wrote a memo called "on the couch" three years ago. and i said in the real world we fluctuate between pretty good and not so hot, but in the market attitudes go from flawless to hopeless and so you know, in the fourth quarter people's attitudes towards the kinds of things you describe went from flawless to hopeless and maybe now we're back to flawless when people are thinking the outlook is flawless, there's room for disappointment. >> but would you stick with those winners in the market? >> i'm not a stock market guy. >> on the topic of the memos we're all delighted they're going to keep coming despite the brookfield asset management acquisition. i know you can't talk about n. detail about that, but is it fair to say there's a theme behind it that in the asset management space today you just have to have scale, it's all about cutting costs? >> i don't think this was about

cutting costs. we haven't had any discussions about cutting cost this was about enabling a combined offering, which is more fulsome, and i think that oaktree and brookfield respectively will be able to talk to their clients about a broad broader line of possibilities. >> want to talk a little about your title "responsible capitalism," which you talked about in the most recent memo. what would you say the theme from that was there's been too much focus in the last decade or last two decades on simply growing the pie as opposed to how it's carved up >> well, that's part of it that's not all of it i mean, i think that, you know, in my working lifetime, 50 years, the environment has gone from one of ambition, aspiration, and incentive to, you know, something more

extreme. the only thing that matters is profit maximization. and we have to get ours, you know, and let everybody else take care of themselves. we need something in between we need something more benevolent when i started at citibank 50 years ago, they gave me a pension. and i could -- that pension will help me in retirement. and all the other people who started at the same time there are no more defined benefit pensions in america. so that's just one tiny example. when i started, the ceo of the bank probably made 20 times what i made on my first day. >> 1400. >> well, there you go. >> 20 mimes, wasn't it >> i don't think so, will fred i made 13 five and i bet he made about 270. >> is there an issue that some

of these constructive criticisms of the state of play at the moment are coming from people like yourself, from jamie dimon, from ray dalio, from billionaires does that make the message you're trying to deliver harder to get across to certain people and in fact risk a bigger reaction in the opposite direction? because you can be labeled as billionaires that have already benefited from the system only now trying to make a difference having banked a huge gain. >> well, i know it's your job to ask the questions, but i would ask you, would it be better if i kept my mouth shut would that be more constructive? >> i'm not making a criticism. >> i know. >> i'm asking the question do you feel a backlash in that regard >> no, i'm not feeling a backlash because what i'm saying is i hope constructive for society. now, it would be great if other people said it too hopefully the mere fact that i've been a successful businessman does not mean that my views should be entirely

discounted i think there are things we can do to make society better and i'd be glad to participate >> so you're a democrat. >> i am. >> and a lot of the letter is very critical of your party. >> yes >> and some of what we've heard in terms of those ideas, wealth taxes and the populist sort of rhetoric >> right >> what would you like to see? who would you like to see carry this torch >> well, i would like to see somebody who is not extreme in their positions and their rhetoric and somebody -- my strongest interest in politics at thistime is bipartisanship. i'm very supportive of a group called no labels, which consists of democrats and republicans who want to work together to solve our nation's problems. the opposite of that, sara, is impossible you know obamacare i believe was passed without a single republican vote trump's tax bill was passed without a single democratic vote in fact, i seem to recall mitch mcconnell saying it is our goal to reform taxes without any

support from the democrats and i consider that an illegitimate goal in america i want to see the two parties work together. now, if i'm a democrat and you're a republican, then that means i have to give you some of what you want, you have to give me some of what i want -- >> so quaint >> it is but then of course people can run against this by saying but you gave the republicans some of what they wanted i think that is the only way to get to solutions >> despite your criticism in the letter and what you're hinting at now of some of the more extreme positions in the democrat party, do you feel like there's overpoliticization in the u.s. of the term socialism and the fact that a slight increase in tax orz health care for you will doesn't constitute communism in the crazy sense of the word because the u.s. is a democracy so, we're really just talking about a social democracy here >> yes i don't use the term socialism to describe these things

i would say people want to recut the pie. >> and is that legitimate? >> and some of it is because i think that the cutting of the pie has been heavily in favor of the haves. now, i think this is the right thing to do, to reduce the gap, reduce the inequality take better care of the less fortunate, have a better safety net. i also think that if the people like me don't do it it'll happen anyway and i hope that we can shape the dialogue but i think it is imperative >> in the meantime we are witnessing this rising populism. do you think that raises a big risk for investors >> it's hard to say. but i had i that the -- >> so far it seems like investors have embraced some aspects of it in a way >> yes it all depends on how far it

goes you know, i embrace some aspects of it. if it goes too far and endangers the engine of free enterprise which got us here, it's going to be bad news. and nobody can tell you yet how far it's going to go i don't think it's going to get that extreme i think the people who are at the left extreme are a small number but we'll see. and by the way, the people at the far extreme, their rhetoric in the campaign will influence the centrists and pull them a little to the left a little is okay >> thank you very much for joining us great to catch up as always. >> my pleasure >> howard marks. now, bank stocks are in the middle of their earnings rush. and up next we'll dive into tech's climb, what it says about the character of this market we're back in a couple minutes

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news alert on facebook julia boorstin with the details. >> facebook announcing changes to its policies for app developers to help improve security and to secure its users' data. the company saying it will remove hundreds of app developers now it will restrict apps which are considered to have little value like personality quizzes also saying they'll be updating the platform policies to

regularly evaluate apps' access to user data they will require apps to repeatedly ask users for information to access their information through facebook this comes ahead of facebook's big developer conference on tuesday. >> facebook still holing on to some decent gains. the nasdaq setting another record high today on the back of strong results from facebook mike santoli at the telestrator with a look at the rising fang premium. mike >> yes wilf, it's back to -- well, i guess you could call it multiyear highs right now. this is the nasdaq 100 etf the qqq. so that is obviously just about the 100 largest nasdaq names very heavily weighted, show, in those fang stocks. we have four stocks right now that torth are nearly $4 trillion in market value this is the forward p/e. basically the price to earnings multiple based on forecast earnings for the next year here you see it's above 21 right now. that is nosed above where it was

at the market top last october it is not yet as high as it was january of 2018. i think it was above 20 or just about 23 at that point that had been a multiyear high of course that was pricing in the big function increase in earnings we got from the tax cut. now, look at the qqq valuation relative to the overall market that is prending higher. this is the favored group. this is the leadership group in the market and they are now at a premium of the last five years higher than they'd been before so is this a warning sign? maybe a little bit but more i think what it is it tells you the kind of stocks that are working right now the mega cap growth stocks that's what the market wants >> howard marks wouldn't put a stock market call here but he did say this group goes from helpless to flawless they were helpless at the end of last year and said they may very well be flawless that's sort of the argument you're making here >> i wouldn't go to helpless because they started from such a high base. they didn't necessarily lead the

market lower but it's without a doubt -- you're making a concentrated bet on tech right now. tech is more than 30% of the market depending on how you gauge that >> we'll see new about 13 minutes for the close. we're counting you down to big earnings at the top of the hour. one of those fang names will be there, amazon. our reporters will tell you the key metrics to watch from that name as well as inl,te starbucks, ford, t-mobile and mattel put our workflows in the cloud? how about our jobs? [ mimics explosion ] [ mimics explosion ] our jobs. [ mimics explosion ] servicenow. works for you. wake up! there's a lot that needs to get done today. small things. big things. too hard to do alone things. day after day, you need to get it all done. and here to listen and help you through it all is bank of america. with the expertise and know-how you need to reach that blissful state of done-ness.

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introducing an easier way to move with xfinity. it's just another way we're working to make your life simple, easy, awesome. go to xfinity.com/moving to get started. welcome back we've got big earnings coming your way after the bell and our reporters are standing by to bring you all -- >> it's the brady bunch. >> i know. we want them to be waving as well that's for next time don't worry, guys. the smiles look perfect. devos on amazon, josh lipton julia boorstin on t-mobile and courtney reagan on mattel. deidre, let's start with you what are you expecting >> wilf, last year investors got to know a more disciplined amazon but delivered quarter after quarter of record profit this year, though, could be different. the company warning that 2019 will be a return to spending the street expecting this quarter. eps of $4.72 on revenue of 59.7 billion. that would represent ams ons slowest sales growth in four years. so look to the higher margin,

faster growing businesses, aws, subscription services, that's prime, and advertising to pick up some of the slack from core e-commerce also watch ams ons international segment, just closed its international marketplace in chien a. real fail for the company and it also faces significant headwinds in india guys >> all right, deidre, thank you. let's get over to josh lipton with intel which had a nice move this year, josh >> sara, here's what we expect when intel rrts, eps of 87 cents on revenue of $16.02 billion cowan says the one number he will be watching the chips for servers he's looking for about $5 billion of revenue in the quarter. they are down sequentially will a cloud giant step in and start ordering up a lot of those chips again? that's the question. that business is important ramsey says because it is the company's highest margin business and the one bulls bet has the real long-term growth potential. guys, back to you. >> all right, josh, thank you. another stock that's run up into

today, starbucks kate rogers is watching that one. kate >> hey, sara analysts looking for eps of 56 krenlts on revenues of $6.32 billion. same-store sales expected into crease 3% globally but all eyes going to be on comps in the u.s. projected to increase 3 1/2% and 1.4% overall in the china asia pacific region commentary about the consumer both in u.s. and china will be key. the stock as you mentioned is up almost 20% year to date. also hit a fresh 52-week high just today as analysts look for updates on starbucks rewards the company's loyalty program along with more on its partnership with delivery app uber eats. back to you. >> kate, thank you let's go to phil lebeau who's watching forward this afternoon. phil >> the main question for ford this quarter as it has been in past quarters, is the turnaround taking hold? we know that north america has pretty much been carrying the water for ford but what's happening with its international efforts both in europe as well as in china? that will get a lot of

attention. and how much is it spending on its mobility efrlts? it's been increasing in recent quarters what did we see in the first quarter? that and along with the commentary from cfo bob shanks, first on cnbc after the close of business that's what people will be focused on >> we look forward to that, phil, thank you. julia boorstin watching t-mobile julia. >> the key number to watch in t-mobi t-mobile's results is subscriber additions. analysts looking for net additions of over 1.2 million subscribers. revenues projected to grow 5% and earnings projected to grow 16% in the quarter investors will also be listening for any updates on the justice department's antitrust review of t-mobile's pending merger with sprint this after just last week ceo john ledge yooer shot down a report the deal was shut down for resistance also 5g services that's the new mobile battleground for mobile carriers >> let's get to courtney reagan who's following mattel court? >> hi, sara.

analysts are going to be looking for a loss of 56 cents on revenues of $645 million from mattel's first quarter it's been a rough go for the barbie maker, dealing with external and internal pressures. mattel's on its fourth ceo in four years working through a restructuring. industrywide toy sales fell last year according to npd due partly to the toys "r" us liquidation and the changing play habits has that turned around investors want to know whether the toys "r" us overhang is ending and the impact of that recall 4.7 million fisher price rock in place sleepers recalled due to reports of infant deaths sara >> that was a very big deal to a lot of people i know court, thanks. and thank you, everybody up next we are coming back with the closing countdown. we've got five minutes until the close. dow's down 104 we'll be right back. and manage my portfolio. since i added futures, i have access to the oil markets. and gold markets. ok. i'm plugged into equities.

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but you're not mad, because you have e*trade, who's tech makes life easier by automatically adding technical patterns on charts and helping you understand what they mean. don't get mad. get e*trade's simplified technical analysis. welcome back to "closing bell." three minutes left to trade. we're keeping our eye on the nasdaq level 8120 the key number to watch to see if it does have another record all-time closing high before we get back to the markets, though, bumped into the bp ceo bob dudley here on the floor. bob, great to see you. sxl will fred, good to see you good to be here. >> you're reporting earnings on tuesday so you're in quiet period just some thoughts on this rampup in the oil price you've seen of late >> slight uncertainty. it's always uncertain what the u.s. would do with the iran oil

sanction waivers of course venezuela and libya lots of uncertainty. lots of uncertainty in the market >> you think it's all that macro driver, geopolitics and it could slip away? >> i think people just aren't sure what's going to happen. supply and demand, stock levels are still good the market's not out of balance really but it's the uncertainty. we've seen this twice in the last six months up and down. >> bob, a lot of focus in the states the last couple of days about the bidding process for anadarko consolidation. do you expect whether it's just this deal or others for more consolidation? >> can't really speculate. anadarko has great assets not only in the u.s. but around the world. so it doesn't surprise me. ox dental and -- two great companies. everybody in the industry watching this carefully. >> some people suggest you've got some room to make acquisitio acquisitions is that fair >> we're going to stay really disciplined. 15 to 17 billion dollars a year in capital 37 discipline is it we'll see in the future. >> bob, a pleasure to see you as

always thanks for the quick comments. bob dudley the bp chairman 20 seconds left until the close. at the moment the dow is down 0.5% 130 points so it did slip a little bit there into the close s&p ends flat. nasdaq also a little bit higher. sara, back to you. >> love that impromptu cameo by the bp ceo in the middle of the closing bell countdown sara eisen will fred frost joining me in a moment along with mike san toely cnbc senior markets comment yailtor take a look how we finished up the day on wall street let's start with the nasdaq hitting a record did we get there oh, it looks like we are just short. i thought we were going to get a record but it pulled back just at close you needed 8120.82 to get to a record high. looks like we didn't quite make

it there after we were trading above it in the last few minutes. s&p 500 ending the day flat. 2926 a -- within spitting distance. the dow losing half a percent, 133 points the story there, and we're going to talk a little more about this, was the plunge in 3m on disappointing earnings worst day for 3m since 1987. 3m shaving 182 points off the dow. all of the losses and then some. boeing, microsoft, disney helped offset that. disney hitting a record high today. investors awaiting a slew of earnings this hour amazon, intel, starbucks, ford, t-mobile, mattel all set to report minutes from now. full team coverage for you on all of these reports bring you the numbers as soon as we get them. and who better to talk about the markets today and all of these earnings stephanie link is back global equities, portfolio manager at nuvin.

mike, the almost record high on the nasdaq the fact tech leadership microsoft and facebook took us there >> honestly the market kind of bent a little bit without breaking there were lots of excuses from the broader market to sort of take profits in a more aggressive way you had 3m dragging down industrials. xilinx was a great excuse to sell the semiconductors. they were under pressure all day. they've been a leadership group. and of course ups really falls apart. transports come down three cyclical groups. yet the overall market kind of pulls itself together and regains its footing because the big tech stocks managed to remain sturdy. >> stephanie, just the 3m story and some of the other names in that space derailed the outlook for the kind of uptick we've had in recent earnings reports for the macro outlook. >> the industrials were really mixed today. at best. i'm kind of being kind but i really do think out of all the names like itw, free wort, roper, rockwell, 3m was a big company's misexecution this is the third quarter for

the new ceo and every single quarter there's been an issue of some kind. i know they had a lot of auto, i know they have a lot of electronics and those are two end markets that are not favorable at this point but there are other parts of this company that should be doing better namely health care. >> health care is flat i think >> and it should have been better and consumer was okay but it should have been better. >> do you own this stock >> i do not. but within industrials the end markets showing the most resilience is aerospace. honeywell, utx maybe we'll see that in ge as well >> what about the semis selling from xilinx and others we're waiting for intel. i know you own that one. that group has been on fire lately what do you do with it now >> yeah, we'll have to see about intel. the risk reward is not nearly as great. but the good thing is it's only trading at 12.7 times forward estimates. you have a new ceo in there who's a cost cutter and we'll see what they say in terms of this ten nanometer, we'll see what they say about data center. but overall it's on a new high so the risk reward isn't great >> we have amazon numbers out.

dee bosa hasthem for us. hi, dee. >> hey, wilf it is a big beat on the bottom line eps in the first quarter from amazon of $7.09 $4.72 was expected in terms of revenue right in line with what the street was expecting at $59.7 billion, which does represent amazon's slowest growth in some four years. you are seeing growth moderate somewhat but you are seeing margins get a whole lot fatter and that's why you're seethe big beat on the bottom line. stock popped at the beginning but now it's down, flat slightly we'll continue to dig through these numbers and bring you some critical metrics such as aws which is its cloud business, subscription services, physical stores we'll be back as we get it >> thank you very much for that. as dee was saying, a big eps beat mike, i guess a lost people focus more on the revenue and the space of the revenue just because of the fact it trades at such a high malt ip'll

that was 17% but it was in line. >> roughly in line top line revenue in line we do want to see the aws number because i did think microsoft's results probably raised expectations of what aws might be able to do. the stock obviously has been on a great run but also conspicuously with the nasdaq pushing a new high about $150 below its peak of last year. i think you do want to stay net positive but see the details because the eps numbers get moved around based on investment pacing and things like that at amazon >> aws revenue 7.69. >> that's the estimate right smack on what was expected >> the advertising business is what has gotten investors really excited about those fatter margins. >> it's all about -- do you want revenue growth or do you want profitability. and that was the debate that started two quarters ago and it still continues. clearly the profitability is there haven't seen all the details but that's a huge blowout number to the bottom line if it's just an in-line revenue number to mike's point growth is definitely slowing it's the law of large numbers.

but i think profitability actually wins out in my opinion especially at this valuation >> and mike, i guess the other point on this as well, actually, we're going to hit pause because we have intel numbers. josh lipton has them hey, josh. >> intel's reporting here 89 cents versus expectations of 87 cents. revenue 16.1 billion versus expectations of 16.02 billion. but looking ahead this q2 guidance they're calling for 89 cents for q2 1.01 revenue lighter too. 15.6 billion analysts had modeled closest, 16.85 billion. as for the full year, 4.35 they're calling for. again, that is light this was at 4.51 and revenue of 69 billion. the street is around 71 billion. just go through the segments real quickly, ccg. chips for pcs, modems, 8.6 billion. dcg, chips for servers, has 4.9 billion. that is down 6%. internet of things 910 million

mobile they break out 209 million. msg memory chip business 950 million. and finally psg, that is programmable chips, that's 486 million. in the statement here ceo bob swan saying they do expect market conditions to improve in the second half but looking ahead they are taking a more cautious view of the year. this call starts at 5:00 p.m. eastern and we'll be on it >> not a good reaction here, down 7%. don't first the first on cnbc interview with intel ceo bob swan tomorrow 11:20 a.m. eastern on "squawk alley," mike. >> interesting the data center here is the mess really on the revenue line 4.9. expectation 5.2. year on year sidelindecline. that's probably accounting for the share price. >> down 6% over year versus 4 1/2% expectations. this is the piece everybody likes, the piece everybody wants to see bottom and reak sell raitt. this is the driver of the company. to be disappointing it is a disappointment for sure.

and the stock my goodness it's up 25% year to date. the only thing that's good is the valuation maybe we get some support there and let's get more details. but it was at its high headed in not a great risk reward. >> internet of things a little ahead of expectations. 900 million. small part of the pie. >> exactly right dcg is what this stocks trades on >> we've got another one starbucks just out kate rogers with the results >> looking like a pretty strong q2 here for starbucks. eps a beat 60 cents adjusted that compares to analyst estimates of 56 cents. revenue $6.31 billion. that's about right in line for the quarter. taking you through the comp numbers, overall comp right in line at a growth of 3% for the quarter. americas they beat here, 4% comps. this is the fourth quarter in a row we've seen a 4% comp in the americas from starbucks. china asia pacific comps up 2% for the quarter. that is also a beat. also up 3% in the all-important

market of china. 16.8 million active loyalty rewards members. that's also an increase from last year, 16.3 million. the company also giving a small raise in their full-year 2019 eps guidance and reiterating other guidance they had previously given as you can see, the stock is higher by about 1 1/2% and as we mentioned earlier a new 52-week high just today. back over to you >> kate, what was that china growth up 3% you said >> yes 3% comps in china. specifically china asia pacific region up 2% for the quarter, and that's a beat. >> okay. kate, thanks very much for that. mike, a key focus of course for starbucks always has been but with luckin coffee as well pushing ahead pretty fast there. it's impressive they continue to grow >> past two quarters especially because i did think there woos a little bit of a psychology many overhang about that. starbucks as a stock has traded as this almost near fang status, there's these global brands like nike like starbucks that have this ability up about 30% over the last year because they are

seen to be kind of zurnl in being able to go in the environment. interesting it's up on this report because it wasn't a blowout. it was incrementally better than expected >> and it was a high bar because it had run up. euro monitor put out a report. last year starbucks had 50% market share of the china coffee market luckin yes is coming up hot on the heels. but very small i think the second one, second closest is mcdonald's with 5%. >> and the real mega big picture bull case is coffee in general is in a secular growth mode. it's not a zero sum game at all. >> you but i think to have a 4% comp number in the u.s. i know we're all excited about china because there's great opportunity but the stock really does trade on the u.s. to do a four com np light of competition, in light of this mixed consumer, that's a really impressive number. they're doing all the right things they have had two accelerated share repurchase programs in the last six months so they're

buying back stock, they're delivering on earnings, raising estimates. kudos to the ceo he actually is doing a fabulous job. >> and all the right things but bringing back the s'mores frappuccino this summer after a hiatus last summer they kind of discontinued that >> does that involve fire or it's just -- >> chocolate good one, mike mattel details are out >> looks like a beat for mattel's first quarter earnings coming in a loss of 44 cents that's adjust ppd and that was better than what analysts were looking for at 56 cents. earnings beat. revenues stronger than expected at 689 million the street was looking for 645 million. looks like worldwide barbie sales up about 7% and the ceo makes a note here saying while we're in a multiyear tournament we remain on track to achieve our goals to restore profitability and regain top line growth in the short to

midterm and capture fair value shares up sharply from mattel more than 12%. sara, wilf, back over to you >> this stong has been so volatile, all over the place, even since the new ceo came on with this vision of creating a film studio and a barbie movie i think they're working on but really it moves on the numbers, which go back and forth. now up double digits >> it was down 13% in the last two weeks because of the product recalls arohn. it's just gaining it back here this company has a lot of secular and cyclical issues going on you're going to make baby steps no one intended. >> the recall is a big deal. every mother uses it how do you get your baby to sleep without a rock and play? >> not my problem anymore but i can empathize. >> a lot of people's problems. trust me but you're not touching the stock. >> no. they have a lot to fix first >> heavily shorted stock as you say with this general overhang

of secular decline fears >> back to the big amazon number we were discussioning earlier. big eps beat revenue kind of in line up 16% year over year the aws numbers obviously of import in line with expectations so did microsoft do better than amazon in that space yesterday >> i guess you probably would have that takeaway, yeah i guess they're not literally one for one the same business in every aspect but yeah, i think that would probably do it and not surprising you would get the expectations built up a little bit also keep in mind that on a revenue basis aws is still less than 15% of overall sales. so it is kind of -- it has its outsize weight because it's profitable and growing so fast but it is not necessarily a thing that moves the whole company. >> but having the numbers, you guys north america came in at 17% growth that's better than 16% you have international coming in at 16% expectations were for 13% growth and aws in the low 40s i think is what people were expecting. it's a solid number.

it didn't blow it away, though, right? and we were used to -- other than the bottom line >> and the stock is up 2/3 of 1% at the moment. meantime, t-mobile numbers are just crossing. julia's got that for us. >> looks like a strong quarter with t-mobile with accelerated customer growth, all-time record low churn and the company says its best ever first quarter financial results. the company beating on the top and bottom line reporting earnings of $1.06 per share. that's versus estimates of 91 cents per share. revenues coming in a hair stronger than expected 11.08 billion in revenue versus estimates of just 11 billion in revenue. now, when it comes to that all-important subscriber number 1.7 million total net additions in the quarter, that's 15% growth and that's versus the 1.2 million that analysts had been projecting looking at the company's guidance upping their guidance for their post-paid net additions as the key subscriber from 3.1 to 3.7 million for the

year up from the prior guidance of 2.6 to 3.6 million. also looking at what they're saying about 5g, the company's announcing they're on track to have the first nationwide 5g network available next year saying they'll launch that 5g network as soon as they have compatible smartphone in the second half of this year guys, back to you. >> julia, thank you. another big question the overhang here is will they or won't they with sprint and will the department of justice give them the go-ahead on this deal what's the latest? >> it's like a 32% spread on the arm. so it doesn't look so good, which is why it's so important that they showed a good fundamental number today because now we're going to start to shift our focus if they don't get sprint back to fundamentals. and they're pretty good. >> and the other reason for the big spread is that it's viewed as if the deal doesn't happen sprint is in some genuine trouble as a stand-alone and so there would be a big divergence in how they did independently. >> ford numbers are out. phil lebeau with those details phil >> sara, this is a beat by a big margin for ford.

earning 44 cents a share in the first quarter. the street was expecting ford to earn 27 cents a share. and when you look at revenue, automotive revenue is what we focus on, coming in a little bit better than expected at $37.9 billion. or $37.24 billion i should say a couple of key things to focus on, the question's going to be why was ford so much better than expected improvement really in all of their key regions. north america an improvement of $300 million with earnings of $2.2 billion europe $57 million profit. they posted a negative -- or a loss in europe first quarter of last year and they're still losing money in china though that has been an improvement there. and then ford credit this is the big number $801 million that's how much it earned in ford credit last year. compare that with a year ago when they earned 160 million in terms of guidance they're not giving any guidance in terms of earnings per share for the reminder of the year they do expect their overall

earnings will steadily grow from here and mobility spending which gets a lot of attention, they spent $288 million on their mobility efforts. that was up compared to 186 million that was spent last year in the first quarter so guys, overall this is a number that i think investors will look at and they'll say is the turnaround finally taking hold, especially because they've got the costs down so dramatically over the last year and now you see the benefit in terms of north america sales, trucks, suvs, et cetera. >> we know you're going to ask the cfo in a minute. thank you. but mike first to you up 3% on these numbers. >> kind of incrementally encouraging. the stock has really been in this generation zone for a long time bigger picture it trades off where we in the auto cycle and progress toward new generation vehicles but you would have to say it is looking like it's getting a little better. >> let's dive right back in with phil lebeau along with ford cfo bob shanks member of the cnbc

cfo council. phil, kick it off. >> bob, you're joining us from ford's headquarters. let's talk about the first quarter. i know investors will look at these numbers and say much better than expected is the turnaround in your opinion finally taking hold? >> yes i think the ship is starting to turn after a lot of work on the fitness of the business, rethinking the product portfolio, working on a number of alliances, the ravine investment yesterday is a good example of the most recent thing. the ship is starting to turn but there is still a lot of work ahead of us. >> a lot of investors have said this turnaround his been slow in developing in the sense that they're not really sure what benchmarks to look for in the future in terms of earnings per share. and your guidance, you're talking about improved earnings. you're not putting any earnings per share metrics out there. at what point do you do that, where you say okay, we believe we will earn xyz and you can count on it? >> we're comfortable with the guidance we provided, which is

to improve on the results that we delivered last year i think as the year progressions we'll see what we say beyond what we're seeing today. we have a lot of work to do, a lot of redesign of the business. we're still somewhat concerned about the external environment we know that's been something that's been quite volatile of late we have a lot of things ahead of us on that front, and then we've got a lot of product watches too. i think we're comfortable with what we have provided today. it's going to be a better year than last year and we'll see what we say as the year progresses. >> i want to shift gears announced yesterday you're taking a stake $500 million in the electric automobile company rivian how does that play out in terms of down the road how does rivian help the bottom line at ford when it customs to electrical vehicles >> with the, it doesn't change the plans we've already announced to spend $11 billion on electrification through 2022. so that plan progresses. but working with a fantastic startup like this that is looking at electrification and

that whole part of the business with fresh eyes, we're going to learn a lot from it. we're going to take one of our new future products off their skateboard there's other opportunities we think they can leverage and of course they can benefit from working with us because we know how to scale up. so i think it's a win-win for both and we think it's part of the overall approach we're taking to partnerships more broadly including volkswagen and mahendra and other parts of the business >> bob, you guys spent $289 million on mobility services, basically our autonomous vehicles and our autonomous technology that's what you spent last year. but then you hear elon musk saying we're going to have self-driving robo taxis out on the road last year waymo already has one in limited use in arizona gm cruze coming later. do we need to move faster in that regard? >> we think we're moving at the appropriate pace this is a very, very difficult technical challenge. this is something that's going to unfold over a long period of

time we expect to have our initial commercialization in late 2021 with a bespoke product and we think we're well positioned to succeed in this space. but for all of us it's going to take a long time for this to unfold because it's a hard problem to solve >> internationally you're still losing money in china but when you look at narkt are you more comfortable where the chinese economy is right now >> well, the chinese economy seems to be sableizing we saw on an industry level the sar flat on a year over year basis. the government has already announced some things they're going to do, for example a reduction in vat to stimulate the broader economy but also our sector and there's rumors they're going to do more so the government recognizes the importance of this particular sector and it's possible that they'll give us a bit of help and stimulation as the year progresses but overall i think we're seeing a more stable environment than where we were a few months ago >> bob, will fred has a

question >> cheers. i wanted to ask you more about the electric vehicle market. would you say that tesla had been the leader with the most innovation for most of the market flaft five years. but have people caught 1234u7 do you see it as more of a playing field in terms a level of innovation thaj at any point in the last five years? >> i think in somewhat different ways the koimt made about avs is a little similar to this in terms of how long it's going to wait to be rolled out. it's going to be the transition of a long period of time from ice to internal combustion engines to electrification it's going to move differently by reason. we've watched tesla very closely. we believe we've learned a lot from them. but we think we've got tunlts and we also have advantages both inside ford but also now working with rivian that pulths us in a good position in terms of what our play is going to be in this space. >> one last question -- go ahead, wilf. >> sorry, phil one more in terms of the macro

outlook in the u.s are you comfortable even though numbers may have peaked that they're sustainable at current levels particularly following the most recent slight pacup in retail sales data and the like >> our expectation is actually that we'll see a decline in the retail part of the industry this year 28 it will be offset in part by strength in the fleet side of the business we're very, very strong in commercial government fleet. so that bodes well for us in our truck business but overall we still expect the industry to be lower this year and particular retail. >> playing off of that i've seen some comment over the last week or two that suppliers finally see that they're seeing the rate stabilize. in terms of how much lower the industry might move this year into the mid 16 million high, 16 million range, do you see the same thing in terms of we don't see this continuing to drop off. we see that stabilization in the fourth quarter into the first quarter of next year >> we think the year will be in

the high 60s if you just look at the loit side of the business. we look at medium and heavies as well so low 17s and we don't actually see growth in the next several years based on what we're look at today but we still think it will be an overall healthy environment and strong sales just not growth >> bob shanks, cfo of ford i think this is the last time we'll be talking with bob before he retires it's been good talking with you. i know you're on our cfo council. we'll listen for you coming up next hour during the ford conference call and i'm sure there will be a lot of questions from analysts about these results. >> phil thanks our thanks also reiterated to bob shanks, the ford cfo the numbers clearly impressive, stephanie, and gamed it during that interview to be up about 6% or so. >> the stock's already up 23% on the year this is such a cheep stock that if they just get it going in one way it isn't such -- >> what does it take to take stephanie link into this stock >> i prefer auto parts

companies. i own apted for example. i get exposure to auto but i have a lot of companies this deals with with ford they got the cost story down for sure. it's production. to mike's point where are you in the cycle? we're not really seeing a major deceleration in auto sales but we're seeing a leveling off. in that environment i'd rather own the parts companies than the oems >> what are you doing with intel? >> i was looking through it and those margins are not good, not good at all. i have to listen to the call i own a lot of it but i have to hear why margins were so disappointing. because that's the thing that's really glaring >> stephanie, as always, great to see you >> amazon shares volatile despite reporting a big bottom line beat. sales in line. find out how that move could u n st pitn fang names and how yocabeosioyour portfolio. "closing bell" will be right back the latest innovation from xfinity

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dee bosa has the details hi, dee. >> wilf, as i started to dig through the numbers there's this line in the earnings called other revenue and it mostly is made up of its relatively new advertising business it has been tracking growth of about 100% or more over the last four quarters. this quarter it seemed to just fall off a cliff growth was just 36%. year over year in the first quarter. also want to -- just the trajectory here, highlight, north america segment this is the biggest part of amazon's business growth slowed year over year to 17% in the first quarter in q1 of 2018 growth was 46% so you're seeing this across some of its different business segments but the fact it's in advertising is really interesting because this was supposed to be one of its high margin very quickly growing businesses we'll get more color i'm sure on the call but this is sort of the new amazon, slower growing but they are managing to deliver more profits to investors. guys >> deirdre, anything on whole foods? they don't break that out, do

they >> they break out physical stores and i believe it's still such a small part of their business that growth year over year was just 1%. and the quarter before it was 1% and before that it was negative. so this is still a fairly new metric and i wouldn't expect a ton of growth from here. the point is i would expect a lot of growth from advertising and it's just not there. >> yeah. that is interesting. thanks, deirdre. for more on these results, what to do with the stock, we are joined by liz dun founder and ceo of proforma and jerry storch, former toys "r" us chairman and ceo, now ceo of storch advisers. tom forte joins us as well, an analyst at d.a. davidson he's got a buy rating on amazon stock. welcome to all of you. jerry, you were going through the numbers trying to figure out how they got that big xwomt line beat and what it says about the health of their overall business >> the more profit -- they're known for selling physical objects. but their own first party sales of e-commerce, their own product was only up 10%. the big growth was in third

party sales. they make a lot of money, which is more than double that, up 120% then they also grew in areas where they get service revenue the cloud computing grew dramatically just in line with estimates. over 40% as expected. the subscription services also grew 40% that's amazon prime, music, other very high margin products that they sell as well and even though you're hearing the advertising may not be that good keep in mind this is the first quarter. advertising not so hot in the first quarter compared to the holiday season and it was still up 34% and it is 100% margin things that didn't look good the physical stores only at 1% if we think the whole foods acquisition is working they're drinking something out of the spin gun no retailer lower prices just to be a good guy. they're trying to generate sales and they're not succeeding in doing that at physical stores. physical stores are tough, and they're learning that as they go forward. the other thing that was weak here was international up only

9% great slowing in the trajectory of that business >> the profitability very strong on the top line which a lot of people focus on given the multiple was it a little disappointing? >> i think the guidance was a little disappointing for the second quarter the second quarter profitability is not quite as strong as this growth we've seen in the first quarter. but the first quarter, i mean, from profitability standpoint was obviously fantastic. and as gerry said, those fast-growing high margin businesses are very, very important. i think it's interesting in the context of everyone thinking amazon is dominating the retail business that they can't seem to figure out -- >> stores? >> yeah. stores these little things called stores that still represent a majority of -- >> it's hard work. >> yeah, it is hard work i thought the numbers for the quarter were quite strong overall. >> tom forte, you've got a buy rating on the stock. it's up about 1% after hours there's obviously a lot to unpack here. what do you think investors are most focused on? >> sure. so i guess i'm a lot more optimistic than the other two

panl panelists. if you look at the earnings per share beat and the source of the beat they talked about how you had a53% of units sold were third party. and you had more with north of -- for aws. i acknowledge you're starting to see slower growth for advertising as the base gets bigger but amazon still very early in advancing their advertising efforts. also for whole foods i think the importance of whole foods for amazon is advancing their efforts in the grocery category. so i don't think that business has to grow at double digits for it to be successful for amazon but yes, i think the profitabili profitability's very-g especially from third-party unit sales and cloud computing. >> mike, tom obviously has a buy on the stock 100% of analysts right now have a buy on the stock how often do we get to 100%? >> for a mega cap stock it's pretty rare. i do think the performance of

the stock and the ability of the market for many years to look through short-term quarter to quarter noise i think has got everybody on board >> cramer's warning on facebook, liz, don't trade it until we hear the conference call >> on amazon >> on amazon >> so what's going to be important on the call? >> i think it's all the things we've been talking about high margin businesses they are growing third party they talked about that in the shareholder letter and said this is really important. but i think also amazon is trying to reposition itself as a little bit of a good guy in the world of tech. if you read this release, it's kind of like look at all the wonderful things we're doing for people and for -- i mean, it seems as though they are -- >> minimum wage? is that the sort of stuff you mean >> yeah. higher minimum wage. lower prices and all of these scholarships. it's just -- carbon emissions. they kind of put a target out there. so i think they are trying to

position themselves in the retail ecosystem as kind of a good guy and not necessarily this bad guy that everyone needs to fear. >> would you own this stock, gerry? >> if it goes down, which apparently it's not so far, i'm going o' after their fourth quarter results their stock went down and people were like oh, my god, what's going on. you ask what's going on? i don't have any idea what's happening. you shouldn't be they're up 20% since then. i think it's a stock you buy on any sign of weakness i have competed with jeff bezos. i have partnered with jeff bezos. and one thing i can assure you is you should not and cannot underestimate him and that amazon team. there's no way you should be betting against them >> gerry store chrks liz dun, tom forte, thank you >> thank you >> still ahead, anadarko unexpectedly just releasing earnings we've got the numbers straight ahead. >> and as we head out a check on intel shares which are trading lower. we will dig into the numbers down 6.5% when we come back.

just want to bring your attention to reports coming in on uber's pricing. those reports suggesting an ipo range of $44 to $50 per share. we will work to confirm that for you, mike. but does it put it past 100 billion or not >> it's nip and tuck i think at the upper end it would be

pushing the $100 billion range >> we are working to confirm it for you, mike, more than anybody else >> let's get that done i'm senior markets commentator all these junior markets commentators -- >> we'll get that done meantime, anadarko >> anadarko earnings coming out just a little while ago. beats on the top and bottom lines. the stock not really moving after hours. k see that basically unchanged not really trading at all. the anadarko the real story is the bidding war between chevron and occidental that's what's driving the stock. not the earnings one thing to note, though, we were not expecting the earnings to come out. most estimates had this coming out next week. the company never announced an official earnings date and here is the earnings. kind of a surprise that it came out. but again, the stock not moving because the acquisition is the bigger story right now back to you guys >> thank you very much for that. and what did bob dudley say? that the industry's watching how this plays out with great -- he wouldn't be drawn on whether they're going to be doing a bit more purchasing or --

>> that was speculation, right >> them and a couple of others but particularly bp at the european majors are well positioned at the moment a, it would be strategic sense to move into that area but they've got a lot of cash and stronger kind of balance sheets. >> anadarko's attractive assets. potentially why there's a bidding war. time for a cnbc news update with bill griffeth. hi again, bill >> hello again, sara here's what's happening right now. u.s. supporters of embattled venezuelan president nicolas maduro have been warned to end a sit-in protest at the country's shuttered embassy in washington. the u.s. envoy to venezuela elie abrams says they have to leave >> the current state of affairs is not normal for venezuela. it is not acceptable for venezuelans. and i am absolutely convinced it is not venezuela's destiny >> meanwhile, french president macron unveiled a long-awaited plan to quell five months of yellow vest protests that have

damaged his presidency he announced a series of measures responding to concerns over sinking purchasing power including a pledge to cut taxes for middle-class workers and in tokyo they opened an exhibit at a single piece of graffiti thought to be the work of mysterious british artist banksy it is an image of a rat holding an umbrella. about 50 people lined up before the display opened banksy has not replied to requests to confirm that the graffiti is his. and mr. frost, knowing how well connected you are at home, i'm guessing you know the actual identity of banksy >> of course needless to say sworn to secrecy. >> do you really >> of course bill and i discussed this before he knows i know. >> very mysterious >> but i can't say >> well done well done. >> bill, thank you >> see you later >> still ahead, intel shares plunging after issuing weak

full-year guidance why that could be trouble for the chips, coming up is this ride safe? i assembled it myself last night. i think i did an ok job.

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a very busy afternoon of

earnings here's a recap amazon, intel, ford all beating on the top and bottom lines. intel stocks seeing a pretty sharp drop here after hours on weak full-year guidance, weaker margins. starbucks beating on earnings missing on revenues. and the stock is up about half a percent. it was up more than that before. this is so intense i love earnings days like this >> it's good fun, isn't it big movers as well as there were last night and we've got another one just coming in. meg tirrell, welcome back. great to see you you've got numbers on celgene. >> great to see you, wilf. cancer drug maker celgene just reporting a beat for the quarter. 2.55 adjusted earnings per share versus analysts adjusted estimates of 2.43. revenue 4.03 billion versus analysts estimates of $4.01 billion. this is kind of interesting because of course celgene is being acquired by bristol-myers. that $74 billion deal is expected to close in the third quarter. normally we see celgene report in the morning bit of an aberration fritz normal pattern reporting in the afternoon here

a beat celgene is flat they are not having a conference call because they are being acquired, guys back over to you >> we missed you, meg. welcome back still ahead, we will drill down on intel's big drop after hours, taking many chip names ler th it. top analyst weighs in next let's build a better world for investing. let's create jobs, build bridges, insure prosperity. as investment management professionals, let's measure up. cfa institute.

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he's got an underperform rating on the stock i guess you're feeling pretty good about these numbers with your underperform rating >> well, i'm -- for the stock rating sure. but yeah, we'll see what they have to say. >> why is it down 7% >> the quarter was kind of okay although the gross margins missed pretty big. and the guidance is not great. they missed in the quarter on data center. they took the full year down by about, oh, $2.5 billion. they took earnings down. even with the lowered numbers, though, given the lower starting point they're still going to need a pretty sizable ramp into the back half. this is one of the things we've been concerned about i felt the back half ramp that's embedded into their guidance since last quarter was likely too optimistic especially given the near-term drivers and then presence of competition and other things they'll be facing in the second half that seems to be material ooigz but there still seems to be even off the lower base a fair amount of recovery that needs to happen i think even for them to hit the numbers they've now lowered to

>> stacy, with the semiconductor sector as a whole up 50% from the lows, pretty much at a new high leading into yesterday, the big question was about the overall state of the cycle and whether we can declare its bottom do intel's numbers have a lot of bearing on that? bearing on that and does it have bellwether status and they're focused on data centers and people looking forrecovery and it seems like they're still calling for recovery in general, intel is not the only one plenty of companies are looking for any second half snapback and we've been cautious and i have to explain to people and the semiconduct semiconductor companies are the supply chain and they can be optimistic and they don't know where things will go several quarters out and if you look at the numbers broadly for the space there is a snapback that's embedded for q2, q3 and q4 and

the consensus numbers are and if you look at valuations and they'll snap back and the sector in december was a 20% discount to the s&p and it's closer to parity now and i don't know if i'll get a snapback or not, but it seems to be in the numbers and the valuations, so we've been nervous >> one of the other factors that has driven the stock lately is when it pulled out of the 5g modem business or clearing the way for qualcomm to do business potentially with apple and some of the other 5g smartphone makers why did investors get so excited about that and so what's the next big thing that they can look forward to from intel in terms of the new technology? >> yeah. so investors got excited about bob swan, the new cfo or new ceo, former cfo, people speculated whether or not he might do something more structural like exit modems or potentially exit memory and things that have more commodities and lowermargins

where profitabilities are more difficult and them taking action to announce the basement that he was assigned that he's willing to do some of those things and i would note in this release as far as i can tell i don't see anything in here as to what the consequences of that revenue cost might look like and presumably we'll hear something on the call today and this is one of the aspect that investors have been excited about over the next few weeks and even with that, it's the fundamentals of the core business are great. it doesn't help. >> it has touched a 19-year high tnkou thank you >>ha y 37. amazon ceo sharing some comments we'll share that with you when we come right back like.. pnc easy lock, so you can easily lock your credit card when its maximum limit differs from its vertical limit. and clover flex, for when you need to take credit cards when no one carries cash. or requesting a call to help get a new credit card- one that hasn't followed the family goldfish.

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up next, another check on all of the after-hour earnings

movers, plus comments on amazon's cfo as the company's profit beat handily. wee ckn colef minutes. ♪ ♪ every day, visionaries are creating the future. so, every day, we put our latest technology and unrivaled network to work. the united states postal service makes more e-commerce deliveries to homes than anyone else in the country. e-commerce deliveries to homes whai tell clients, etfs can follow an index, but which ones target your goals? it's not about quantity. it's about quality. no trendy stuff.

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cfo from their earnings. hi, deidre >> the company still forecasts that cost centers, i.e. spending will go up in the back end of this year. while we did see strong profit again this quarter its second quarter guidance was somewhat muted missing expectations and i asked him about the advertising revenue and the explanation i got were that there were accounting changes that affected this growth number last year and this quarter and the bottom line is that amazon's ad business while it is seeing impressive growth may not have been growing quite as strong as it had looked over the last year if you look at those trade numbers it has been doubling he also spoke to narrowing international losses saying it had to do with gaining efficiency across business lines and advertising growing internationally, but very amazon way. he said the company still plans to invest heavily in launching into new countries and expanding into existing ones 5:30 will be on the call when he talks to analysts. guys >> deidre, thank you very much for that

amazon up around 1% if we glance as some of the other movers. you have decent gains for ford and a decent fall for intel. mike, overall, they are stock-specific moves >> the individual company moves were dramatic. the things to watch tomorrow would be intel to see if that coming after xilinx takes steam out of the semiconductor group and it is up 1% on a wildly, higher than expected eps number reenforces the idea that the eps quarter to quarter for amazon is almost an accidental residual number and they didn't intend to earn as much as they did in a weird way. >> what do they need to say on the call to make the stock keep working. it is so widely owned and it is right back near the highs. >> they need to be optimistic that the investment cycle that they're always in is going to lead directly to something fruitful they'll have more of a quarter

of a trillion dollars in revenue this year. it's a very good story. >> 40% of aws and that's the more expectation it's more of the same if we remain in the same kind of market that covets growth. >> to its point, nvidia is down 2% following the intel decline overall, the markets finished well off their lows and essentially flat and that does it for closing bell today. "fast money" begins right now. "fast money" starts rights right now live from the nasdaq marketsite overlooking times square your traders are tim seymour, karen finerman, dan nathan and guy adami. we start with a huge night for earnings and amazon higher and intel, ford, starbucks and t-mobile we have full team coverage on amazon and deidre is out in los angeles and gene munster, fast money friend is in minneapolis and they're getting ready to jump in on the conference call that starts at 5:30 and first we start off with intel and that

chip s