the american consumer >> now, already the company faced 10% tariffs that have raised their costs by $16 million. they passed that on to their retail customers like walmart. guys, that means a bike that would normally sell for 150 now sells for 170. and those prices could go even higher if the tariffs go even more back to you. >> did he tell you, ylan, about whether or not consumers were balking -- or actually, it's time for "the closing bell." >> you never do that >> i never do that >> that's how much she was into the bicycle story. >> i know. anyway thanks, ylan >> "closing bell" starts right now. it is the final hour of trade. i'm sara eyisen and i'm welcome. >> i have to say we've probably taken ten seconds from her quite easily in the past a day for stocks seemingly being whipsawed by president trump's every word when it comes to trade. we'll bring you the latest >> markets guru mark mobius will

join us from brazil to tell us which market could benefit most from a china trade agreement >> and after the bell we'll get pricing for what's supposed to be the biggest ipo of the year, uber "the closing bell" starts right now. welcome to "the closing bell." anything could happen in the final hour of trade. but so far the market is well off the lows of the session. check out the snapshot of where we are right now after comments from president trump earlier speaking to reporters saying he received a beautiful letter from president xi that gave the markets some hope. the dow jones industrial average down 200 points. at one point we were sitting here earlier around 10:00, 11:00, the s&p was plunging around 1 1/2% around the lows and the dow is down more than 400 points

>> big turnaround. got to the highs of the session about 15 minutes ago, a little bit of a pullback in the last ten minutes. one sector remains positive, only just real estate. today's market moves have largely been driven of course by president trump's comments on china and trade. stocks selling off as sara said and then rallied during the course of the session. >> did you see the tariffs we're doing? because they broke the deal. they broke the deal! >> that was last night but the market well off the lows when the president spoke of a beautiful letter that he received today >> i did get last night a very beautiful letter from president xi, let's work together, let's see if we can getting? done but they renegotiated the deal they took -- whether it's intellectual property theft -- they took many, many parts of that deal and they renegotiated. you can't do that. >> we're all over china and the

market in the final hour of trade. bob pisani here at the new york stock exchange, as always. bertha coombs at the nasdaq. kayla tausche in washington with the latest kayla, let's start with you. >> it's unclear where things will land. president trump is keeping all of his options open, saying he'll start paperwork targeting every dollar of chinese imports with tariffs and then china, as you just heard, broke the deal. but he also praised its leaders and said there could be a positive outcome this week >> i very much like china. the vice premier's coming here today. we were getting very close to a deal then they started to renegotiate the deal we can't have that i think it will be a very strong day, frankly but we'll see. we'll see. their idea to come back. >> the vice premier's presence it's said shows china is committed to negotiating but his credibility is damaged and lu is not traveling as

special envoy for these talks. special envoy that would give him the ability to negotiate on xi's behalf. a call between the two leaders tonight could prove fruitful, but in a time where the market is trying to prognosticate exactly what will happen, wilf, it's really impossible to do that at this stage >> kayla, thank you very much for that the dow down 449 points at the session low. let's get to bob pisani on more on the rebound we've seen this afternoon. bob. >> and you can just see the impact that we've had on the stock market overall industrials will be a standard one to look at you look at a company like a caterpillar all during the day it's come off the lows here, about $129 this is when the president started talking. and then of course you see the move up to 130 and that's where essentially we've been we've been saying all week that a complete breakdown in trade talks with new tariffs in place for months would cause three big problems for the markets number one, lower global growth. number two, we have lower global earnings and then we have a lower multiple for the market overall.

now, that could easily, all three of these, drop the s&p 500 into the $2600 range and ubs by the way agrees with that in a report that was out yesterday ubs said a complete breakdown in trade talks could result in u.s. stocks dropping 10% to 15% that's exactly the 2600 area with china stocks dropping even more 15% to 20% let me take you over here to the telestrator and show you something over here. ubs also expects an appreciation in risk off currencies here. that of course would mean the yen, flight to the yen, maybe the euro would have some problems after that. finally let's take a look here it & we'd be negativelily impacted by that of course the important thing is for themost moment the market is still acting like there is going to be some kind of different kind of outcome. it's not acting like the trade deal's going to get done but it's also not acting like everyone's going to walk away angry and there's going to be nothing and there's going to be

new tariffs. it's hoping there's going to be maybe not a trade deal but no tariff hike and negotiations will continue. that's the way the market is acting right now we'll see if that's the outcome. guys, back to you. >> quick question, bob do you know how ubs put those numbers together, in other words, how they were able to figure out how much the market would fall exactly if there's a breakdown in talks >> they're doing the same things we're doing. art cashen and i have been doing it all throughout the week the multii wiple on the market couple weeks ago was 17.2. if you drop down to a normal multiple, 15 1/2, that gets to 2650 that's without lowering any earnings expectations for the second, third, fourth quarter or into 2020. if you start lowering earnings expectations as well as going to a more normal multiple, say, 15 1/2, you get down to 2600 and you can get below that very, very quickly so i didn't see their exact methodology but i'm sure that's exactly what they're doing >> all right, bob, thank you we'll see you in a bit nasdaq was down 147 points at ilths session lows let's ge to bertha coombs for

what's moving now. bertha >> the president's beautiful letter comments gave us a pretty good rebound but tech remains a drag even after we've come off the low. the xlk tech sector spidr on pace to break a nine-week winning streak and the chip sector off to its ugliest week of the year down 6%. that's directly impacting the nasdaq's pullback overall this week four of the five biggest losers are chipmakers, which face challenges in a high tariff environment. but on top of that we've gotten bad news on a fundamental basis. microchips sinking 11% this week in the wake of disappointing guidance intel's analysts sending intel down 9% week to date that's one of the biggest drags on the dow and the nasdaq. biotech had provided a bright spot earlier today but it's been on either side of unchanged here this afternoon well oft highs of the session. nektar therapeutics surging after reporting a smaller loss than expected. and mylan which was the week's worst performer on the's nasdaq coming back today after forecasting better guidance.

overall health care's a relative outperformer in the market this week even with new trump administration regulatory announcements on drug prices and to surprise medical bills. that push announced today, sara. >> all right, bertha, thank you. let's bring in jason trener, chairman of stra tegus research partners and -- to help investors navigate through there, jason, you're pretty bullish, jason how does the new uncertainty regarding the china trade deal dent that? >> not too much. i think what was priced into the market was there's some deal to be had what i don't think is priced into the market frankly is the up side, which is actually at the end of the day you get a deal that expands trade and lowered tariffs which in my opinion -- >> we were getting there then we got the tweets this week >> that's right. i'm not quite sure whose fault it was maybe somebody got greedy on one side or the other. but i think the trump

administration has been pretty fixated on the idea they want structural reform. they didn't just want a symbolic deal that was some of the criticism with the frayed deals with mexico and canada. they're very focused on a structural change. i'm not quite sure whether china misinterpreted that or not, but it seems clear that's the way they're going. >> ultimately do you think we still get a deal, and is that important for your outlook on u.s. equities? >> i certainly think you get a framework for a deal but this is a long-term scenario so we're really looking at -- you're talking about complex economies that you're trying to like put into boxes and in reality it's about cathy a long-term framework that's going to go five to ten years out, not just the next three months or tomorrow so i think the equity market is adjusting to that fact because it was really priced to perfection in some ways and people thought there was going to be a deal coming and it was going to be perfect. >> i'm just looking in the background we've got this shot of your,

jason, sector picks. technology, industrials and financials all have been whacked around this week as a result of the trade uncertainty. why do you still think they're the place to be? >> it's very cyclical call and it's largely driven by the idea the economy would be better than expected. it hasn't worked particularly well this week but generally speaking before this week it worked out okay but i think ultimately, sara, we're of the view a deal will be had and that china's stimulus efforts in the first three or four months of the year will be effective, which will lift the global economy as well >> shawn, meantime you think things have run up pretty nicely, ripe for profit taking >> you're supposed to look at capital on a risk adjusted return basis, and there are lots of unknowns that are out there so if you've had a about run for the first four months and your returns are pretty high you're supposed to take some of the chips off the table because there are still lots of unknowns that are out there

we still have earnings this year as well. earnings have been pretty good in the first quarter but there wasn't much earnings growth. then we look at revenue growth as well. i think the world has been relying on low interest rates and a deal in china to really get into the equity market and you're supposed to kind of pull back from there >> even if we get a deal ultimately, these tariffs could take effect in a matter of hours. 10% goes to 25% on $200 billion worth of product what does that do to your earnings forecast? >> we're using $172 for s&p 500 operating earnings that's up about 6% we would have to see what the parameters would be. it would probably cut it down. but i also think it's pretty hard to get an earnings decline, a decline in the first derivative of earnings, which is -- you can see a cut in the growth rate of earnings. but earnings are likely to be up -- earnings are up 22% last year >> even with more tariffs. >> even with more tariffs. i still think we're going to be up as far as earnings are concerned this year. last week of course the economic

data could not have been any better it was essentially an inside straight for the administration. higher growth, higher productivity, higher employment and lower inflation. and the stock market was within 2% of an all-time high i can see why the administration might not want to negotiate too much with itself given the position it's in right now >> shawn, just stepping away from the trade issue, one area you're watching closely is leveraged loans. is that right? >> absolutely. the leveraged loan market has really exploded. it's actually bigger than the high yield market at this point in time. and you've had lots of money go into the private equity sector which has longer-term thoughts but the real problem is they're going in at multiples that are much higher than we're used to if you look at 2007 and 12015 the largest multiple including debt equity and on an ebidta basis was around 9 deals are getting done at 13 or 14 times now so there's an extra couple turns of leverage that have been put in the system, and if you took a

look at a typical multiple on the market it's 15 so you're not getting in at the really cheap levels you used to. so i had i returns are going to be much more difficult as it goes along >> much appreciated. jason's going to stick around for the full first hour of the show up next on "closing bell" cme group ceo terry duffy will join us with his take on the volatility and what trends he's seeing in the market plus top fund manager mark mobius weighs in on how a trade war with china could impact emerging markets and later, rideshare company uber gearing up to go public tomorrow the company set to price its ipo after the close. we'll talk to an uber shareholder ahead of that coming up really?

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begins implementing a 25% tariff increase on new goods imported from china let's talk more about what is at stake for investors with terry duffy, chairman of the cme group. thanks for joining us. good to see you. >> thanks, wilfred my pleasure. >> how do you gauge the pickup we've seen in volatility, the decline in equity markets this week as a whole we're down about 2 1/2% for the week so far >> i would describe, it wilfred, as a lot of uncertainty as some of your previous guests have been talking about i think people are looking for these tariffs either to be implemented or not obviously by tomorrow i think bob pisani hit the nail on the head. i think the market's pricing for this perfectly it's looking like we won't get a deal done but we won't not have a deal in the future either. that's kind of the way it looks like when i look at what's gone on at the cme we've seen a tremendous amount of volatility this week alone $2.6 trillion of trade. so far to date that's up 21% to

date from any given dave of the month last month there's an uptick in trades associated with it our equities have been exploding. they've been all over the map as you can imagine. we just launched a new complex this week in our microcomplex, which is traded over a million contracts in three days. which is extraordinary and then we're sitting on 137 million open positions, wilfred, which may not sound like a lot but that represents roughly $22 trillion of notional value of trade. you can see there's a lot of people sitting in cme's walls right now and in our clearinghouse and using our products to manage this risk then if you look at? agriculture 58 products you've got corn down, soybeans down roughly 20% yaefr over year. there's a lot of different factors on not only just the financial side but on the agricultural side for the community that the president is very near and dear to. >> you've also got a good feel for some of the traditional safe haven projects, treasury futures and foreign exchange and all that how severe would you say the

move is right now for flight to safety in the last few sessions? >> i wouldn't say it's severe in flight to safety right now we've seen so much volatility. as you know, when you look back on february of last year when the vix exploded on that trade, we've seen a lot of volatility in our history so i wouldn't see it as a big flight to quality. you see the gold markets i've seen them rushing to the gold like you historically would on a flight to quality with some of the other products you outlined i think we're seeing most of the trade focused around the equity complex right now and when you look at the interest rate complex it's carrying record open interest but the movement is nowhere near what's going on in the volatility with the equity markets >> we've still got jason trennert with us from stra tooegus. when you see the move we've seen in yields it's a bearish factor because -- on the flip side could it be framed as a positive, rates stay low, equities are attractive? >> i think so.

i think the whole tina thesis, we moved away from that over the last year, year and a half there is no alternative. i think we moved away from that because you had very stimulative fiscal regulatory, even monetary policy trade not as much obviously. that's still very much there if you have $9 trillion in sovereign debt around the world that has a negative yield, it's very, very difficult to, you know, even fade the s&p 500 at 17 times earnings. when 10-year treasury yields are 250. there's just not a lot of options for people it's not particularly great for bank profit. i think that's true. but banks did pretty well in the first quarter. and again, we're expecting the curve to steepen by the end of the year >> terry, i've known you for a long time. i know you have political views. i'm curious to know as the ceo, what do you think of president trump's strategy here to go tougher on china knowing that the u.s. economy is doing much better than the chinese economy.

so we've got the leverage there. and off of what he said, which is they broke the deal >> i'll be very careful what i say here one of the things that i've been saying for quite some time, i think that the trade issue is obviously very important we're talking about a trade deficit we have with not only china but other participants around the world that we have to get in line some way, shape or form but i think the intellectual property issue with china is just as important and i think that's taken a bit of a back seat and i would like to see the president focus on those issues because that's really what's going to create growth for not only companies in the u.s. but around the world i would hope we can get that issue behind us as well as the trade issue. so when you're looking at potential tariffs going to 25% by tomorrow, you know, what does that do? i don't know it might actually even hurt the negotiations as you look at intellectual property issues >> terry duffy, thank you for joining us >> thank you, sara

>> we are just under 40 minutes to go before the closing bell. dow down 190 really well off of those session lows that we saw earlier this morning. s&p up only half a percent and you do have some dow winners in there it was chevron earlier now it's chevron, dow, goldman sachs, pfizer, and merck turning green. up next mike santoli has what he's calling a sell-off dashboard tracking just how long the pullback could last. >> dropbox went public a little over a year ago and has generated top line beats for four straight quarters we'll have a preview of what the cloud company may do as it reports earnings later measure up? a cfa charterholder does. you've worked hard to grow your wealth. make sure you're working with a wealth manager who can grow with you. cfa charterholders have the investment expertise to unlock opportunities other advisors might not see.

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stocks have touched the lowest levels since the end of march. they're on track for the largest weekly declines of the year. has the pullback generated enough fear to bring a relief rally? mike santoli tracking the current conditions mike with his sell-off checklist. >> here's what should be on the dashboard as we look at this first little significant gut check of the year. all these different factors that should drive whether you make an assessment or whether the pullback is running its course or not valuation i would say back to neutral. it wasn't that expensive before, wasn't that far from neutral, but if you look at the forward p/e, the s&p 500's about 16.6, right exactly where the

five-year average is that seems to not be the swing factor just yet. technicals, are we oversold yet? on a short-term basis, yes, we're basically as oversold by some measures as we were in late march at that last little pullback that's not saying much because it wasn't that deep a dip back then but it's starting to feel as if we've drawn in the very short term enough this isn't a fundamentally based sell-off where you don't have too much financial stress we did break the 50-day average in the s&p today, not terribly decisive one day or the other. fears building up. you're seeing a lot more buying of put options you're seeing some pretty heavy hedging activity look at some of these daily sentiment polls of traders and some of the optimism is bleeding away but it was pretty optimistic on the professionals from before this weekend i think it probably has a little more room before people are general quinly worried right now. and then credit, it's a little bit of a check on the equity markets. credit is still okay it's not showing that much stress

on the other hand it hadn't improved very much over the course of the one-month run in stocks credit spreads, high-yield spreads are back to where they were in late march but also where they were in january that to me is again kind of a neutral factor right now remember in the fourth quarter, guys, credit kind ever followed stocks only when the equity market deepened in its sell-off did the credit market sell off a lot so right now hard to make a conclusion i think if this is just a little bit of a headline scare probably seen enough fear but it's not -- >> as we've been saying all week that wk see the vix and volatility pick up to feel like we properly flushed things out but i guess not to tick up to an aggressive level >> what you have soo to see, that's right, wilf, you have to see a pickup and then start to recede you have to see the fever build and then break that's when you know because high vix is actually telling you that there's some instability in the markets you want to see it kind of pull back and that's when you know basically the flush is at least for the short term over. >> what's your sense, jason?

>> it wouldn't surprise me if we had more to go on the down side. but from a fundamental perspective i agree with all the things mike said the credit situation is very good sentiment you're starting to get there in terms of the flush. but our technical guys are saying 2800, 2815. but frankly, again, given the data, the economic data and the earnings data that you've got over the past month, it's been so much better than people have expected given the concerns you had in the first quarter that i think people are starting to feel a little bulletproof right now. you're going to have to see some bad data points it seems to me to really get the market down a lot from where we are now at least given where interest rates are. >> and to the bad data point would be what? that the tariffs do get put in place and next quarter we see bad gdp? with the market sell-off ahead of even getting that confirmation of bad data >> i don't know if it would necessarily be causal but you'd have to see something where you

don't -- and the goldilocks thing is overused. it's cliche. but it really seems like that now. and you'd have to have some sort of sense that the gdp, the growth numbers are weaker than people had expected. i think even earnings recession is another thing people -- there's a lot of wringing of hands and nashing of teeth and earnings weren't terrific but came out better than people expected >> to keep it in perspective we just had one of the best four-month starts of a year in decades. how far are we from the record high >> about 4%. >> it happened quickly but the -- >> 25% run off -- and been about 20 weeks off the lows. and now you've given back about 4% of that right now it seems like a wobble in a very strong rally i think one reason people might have a little more concern than otherwise in that scenario is that this rally stopped right where the highs were in september. so if you look at it from a wider angle it says okay, maybe this level has been a hard thing to crack two or three times now.

>> we haven't really gone anywhere >> in 15 months. >> mike talked about the fast pitch idea i thought that was more right before christmas, christmas day. that looked more like a fast pitch -- it was a scary moment but fundamentally things hadn't changed that much and clearly the fed changed course pretty quickly after that i think now this is a little bit harder because it's a broken play >> sara's got to explain the baseball metaphor to wilf. >> go ahead, sara. >> we know what you mean we kind of get it. >> let's move on, mike thank you. we'll see you again. time for a cnbc update with sue herera >> here's what's happening at this hour. president trump slamming the pharmaceutical industry for high prices of prescription drugs this at a white house event on hospital billing >> we may allow states to buy drugs in other countries if we

can buy them for a lesser price, substantially less price the drug companies have treated us very, very unfairly and the rules and restrictions within our country have been absolutely atrocious south shore furniture is recalling more than 300,000 chests due to serious tipover hazards. the consumer products safety commission is warning that the recalled chests are unstable if they are not properly anchored to the wall. the chests were sold online nationwide for about $60 christie "uss set to auction off the apple computer one the first personal computer ever made it will be open for bidding online between may 16th and the 24th a similar apple one sold for $387,000 in 2013 and if you were wondering, the apple one debuted in 1976 at a cost, $666 you're up to date. that's the news update, guys i'll see you next hour

>> okay, sue thank you very much. we'll see you then it could be the ipo of the year. uber expected to price after the bell coming up, we'll preview what to expect >> but first, today's volatile market news with legendary fund manager mark mobius. we'll get his take on how a trade war could impact emerging markets for better or for worse. introducing the first-of-its-kind

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welcome back losses following comments from president trump this afternoon saying there's still a possibility of reaching a trade deal with china before new tariffs go into effect at midnight friday. joining us now on what a deal could mean for emerging markets, mark mobius from mobius capital partners mark, thanks very much for joining us i guess first things first, as this trade war has played out who do you think it affects most of all, china or the u.s.? >> i think it affects china more than the u.s. because as you know, china's economy has been very dependent upon exports. they're moving more and more toward a domestic-led economy. but there's still a significant amount of exports. the interesting thing that's happening is a lot of the manufacturing, the high labor cost for manufacturing in china

is moving offshore and i think the government is encouraging that sort of thing i was in hong kong a few weeks ago and talking to the largest manufacturer of baseball caps, and she said that she moved most of of this production to bangladesh it's a very interesting development that you're seeing, and a lot of people are afeeling that maybe the u.s. prices of consumer goods are going to go up as a result of this i don't think so because there's going to be a lot of sources like bangladesh, vietnam where chinese manufacturers have moved their production >> and even if we do see the tariffs kick in midnight tonight up to 25%, do you think that would hit global growth and u.s. growth in particular or would the effect be marginal >> i think it would be marginal. i think the initial effects of course will be very psychological. markets may react. but it would be very short term. the u.s. economy is rolling along, as you well know.

the chinese economy is still growing at 6%. if you're looking at a very conservative number, maybe 5%. i don't think it's going to have a very big impact. >> mark, who gets hurt the most when china feels the heat? chinese stocks are down 8% this week on this turn in tone on the u.s.-china trade talks where does that reverberate? who feels it >> the countries in southeast asia in fact, all the countries in asia will be affected by this. from korea all the way down to indonesia. because china is the largest trading partner for most of these countries. so to the degree that the chinese are buying less these countries would be affected. >> who are the beneficiaries >> i think the beneficiaries are those countries that can take over some of the manufacturing so on the one side let's take

vietnam. vietnam exports to china so they may be affecting the chinese buying but vietnam is gaining a lot of manufacturing from chinese companies and they're exporting of course with the u.s bangladesh would be a winner turkey probably might be a winner countries as far as egypt would be winning because they're moving in to a lot of the manufacturing china doesn't want to do anymore because the labor costs in china have gone up a lot. >> turkey could certainly use that right now so mark, what are you doing? how are you positioning around all of this? how do you think it will resolve and where do you want to be? >> well, as you know, we're here in brazil. i think what's happening is brazil is very exciting because they're selling off a lot of this and going into private hands. and that's going to be very positive for the economy going

forward. in the short term consumer spending power is down there's no question about that but i think going forward it's going to look very, very interesting for brazil and i think brazil is going to affect argentina because argentina's going to have to take its lead from what's happening in brazil so it's quite exciting but in terms of our own portfolio, of course china is still very important we have quite a lot in china in india, india of course is growing at a very fast pace. i believe the mody elections will be positive for mody. and i think generally speaking asia's looking good despite all the problems with the u.s.-china trade war. >> mark, thanks for joining us great to talk as always. mark mobius. jason, what's your take? particularly on that point there, that he doesn't think the hit to global growth would be that hard. he doesn't think the inflation

on consumer products whether iphones or dwroesries is -- kind of emboldens the president if he's correct >> i think last summer -- i personally was more worried because it looked like we were picking a trade fight with everyone on the planet at the same time. so it wasn't just china but it was canada, mexico, europe, south korea, japan, and china. now, i think cooler heads prevailed and we knocked those down one at a time >> we still have the aluminum tariffs. >> it's true we have auto tariffs coming up the next couple of weeks but i think generally speaking the general feeling about trade, global trade, is much better than it was last summer. and i think the administration has done a lot to ease the pressures of that. so in my opinion that's something that helps out and again, i think wilf, you're right. right now it doesn't seem to me for the united states -- it doesn't make a lot of sense for them to negotiate too hard against itself given the

position that it's in. and i do think china has more to lose certainly its markets have indicated that >> do you like any of the picks internationally that mobius listed etfs maybe -- >> i'm not an emerging markets guy, but when i do look at the emerging markets i spend a lot of time thinking about the dollar and i think one of the things we haven't been talk about with these trade negotiations is what the fed does and i do think that the fed -- one way or another people would start talking more about the fed next week, either the tariffs don't go into effect and the economic growth will be stronger or the tariffs go oin effect and people are worried about weaker growth and then people might start incorrectly starting to think the fed may cut. certainly that would be very good for brazil. that would be very good for russia but this is -- this negotiation right now, there's a lot of markets dependent on how these negotiations go. >> dollar remarkably stable.

we have just under 20 minutes. just around 18 minutes left of trade. the dow is down half of 1% 135 points the high was down 82 the low much worse, 450. we're well off those lows at the moment coming up, chevron walking away from its bid for anadarko petroleum. we've got details. >> plus we're expecting to get pricing for uber's ipo after the bell etr iss k an uber shareholder whheth ithe right time for the company to go public tough week for it. we'll be right back.

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welcome back to be "the closing bell." couple individual market movers for you. i've gone for chevron today which has stepped away from the battle for anadarko petroleum. of course on monday anadarko accepted occidental poet rolium $55 million bid. and today chevron has decided not to improve its initial $48 billion bid. that's been taken well by the market for chevron at least up 2.9% today you can see, whether we look at today's move, occidental down 6%, by the way, or all of their moves since this all started happening on the 12th of april, it's clear that the big winner is anadarko up some 55% or so. but the big winner relative of

the two bidders is chevron that's performing to the tune of down 4% versus oxy down some 18%. over that period of time chevron going to get a $1 billion break. it's going to use that to increase its buyback from 4 billion to 5 billion for the year ahead it's up 3% sara, what have you got? >> i picked another outlier in today's down market. that would be tapestry the retailer is up more than 8%, actually oft highs of the session. having a good day after announcing better earnings the company also said it would buy back about a billion dollars of stock and guided sales growth that was ahead of expectations. remember, tapestry used to be known as coach now it's coach stuart wise sxhan kate spade psychologically some major milestones for this company today, expect positive saimstore sales growth for coach and kate spade. that's an improvement and also better profitability at stuart weitzman which had also been a

head wind. and just to zoom out, give you some perspective, tapestry still down 26% over the last 12 months it's now flat for the year with today's gains. so will were some problems going in related to the execution of all the acquisitions and the growth of some of the core businesses tapestry a big winner. there's a lot more to come here on "closing bell," especially after the close. it's going to be very busy developing stories on uber's ipo pricing. earnings from wynn, dropbox, booking holdings we've got it all covered for you coming up. we've done it! hah! great work old chap. we'll be rich and famous. well i'll be rich, you'll be famous... at least amongst your digging friends. here's a thought, ever consider investing? e*trade has easy to use tools that help you get started. you like playing with tools don't you? 'course you do.

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oversubscribed, meaning more demand than shares available to sell alibaba was more than twice that size in terms of its ipo and 14 times oversubscribed the company and its bankers are guiding investors toward the bottom half of the range at this point. i'm told investors are hearing about $44 to $45 but final pricing decisions won't be made until after the close of the market today. guys, back over to you >> thank you very much leslie picker. let's go to couldn't sa brewer now with what we can expect from wynn >> big quarter for wynn resorts with the resolution of investigations in nevada and massachusetts. now analysts are look for those all-important macau revenues and an indication whether competition from mgm and sands is eating into wynn's vip and premium gambling segment a nagging question likely to be asked on the call. what were you thinking trying to buy an australian casino

company? this after congress prematurely announced talks with wynn. that prompted wynn to walk away. this follows a 30% decline in eps. wifrl? >> couldn't sa, thanks very much meantime, dee bosa's monitoring dropbox results. dee? >> two main things we're looking from one is paying users two, is guidance dropbox was built on a strong consumer base but their future is to getting enterprise to pay for the services so the number of paying users is also an important metric when they report. guidance as well that is what stumped the stock last quarter last quarter we didn't get that until the analyst call and that sent shares down more than 10% in the after hours in terms of top and bottom line we're looking for adjusted eps of 6 cents on revenue of $382 million and we will be talking to dropbox founder and ceo drew houston shortly after we get those results. back to you guys >> deirdre, thank you. after the bell we'll also hear from bookings holdings seema mody, what can we expect

there? >> analysts expecting earnings to decline 6% year over year the focus will be on booking holdings growth in the home sharing market, which brought in nearly $3 billion in 2018. representing 20% of the company's overall revenue for the year but it is becoming a more crowded market marriott with its expansion plans. airbnb trying to grab more market share ahead of its ipo. it's also not an easy market to win it booking sees competitor expedia -- for the second consecutive quarter. so far it's been a tough quarter in general for online travel operators. expedia shares dropped about 5% after releasing earnings trip advisor fell 11% yesterday after reporting earnings we'll see if booking holdings can buck the downward trend. guys, back to you. >> thanks very much. we'll see you all at the top of the hour when the stories break. jason, back to the broader market clearly we're going to close nearer the highs of the session

than the lows. do you think the market is looking to look past the trade daeltds of this week >> i think the market as a whole is both countries are interested in getting a deal i think they are going to get a deal eventually. and i do think while that's largely priced in are -- as far as the ipo market is concerned -- >> what you are you watching on uber as it relates -- >> i just have to say i would be as an individual investor, i don't want to be a wet blanket but i would be very careful. you're talking about -- remember amazon went public with a total market valuation of $400 million. netflix went public with a market valuation of $300 million. >> you're talking about $75 billion. that's precisely the point of why an individual investor -- it makes a lot of sense if you're in the series a through f round. if you're in the public now, i'm not sure how much performance is left >> telling cnbc and cnbc.com 44

to 45, about 75 billion market cap. that's a long way from the 120 just to take the other side of that, that's a fall from grace >> i still tend to look at stocks as discounted, cash flow. >> i know it's hopelessly -- i would be a little careful with $75 billion stocks that doesn't make money that's just me >> jason, great to have you with us for the full hour jason tenert of strategus. um next the closing countdown. we're down half a percent on the dow. better for the other indices with five minutes left of trade.

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the dow is down 154 points, off the lows of the session which was down 450 points. defensive tone real estate, utilities and energy have been flirting with being higher as well tech materials and consumer discretionary which are the bottom and tech and materials also during the bottom for the week as a whole but we can't talk about today's trade without looking at the intraday chart because it's really been a rally off the lows the first third or so of the session was significantly lower. the lows there, we were down about 1 1/2% the high which was about 30 minutes to go, we were down only 0.1%, 0.2% the but the fact we're down only 0.3 as we aappropriate close is impressive that said, it has of course been

a negative week here as the one-week chart, we're down about 2.7% week to date this includes friday and if we look at the vix as well, paints a similar story i'm including friday to highlight the jump we got at the open yes, we pulled back the volatility at times including during today's session but still at a significantly elevated level around 19. got to bring in bob pisani who's standing with us here at our new screen what was your takeaway today >> the president said i've got a letter from the president of china, president xi jinping. it was good for 20 points on the s&p 500. we're one tweet away, another tweet away from new highs on the market potentially if we get a trade deal, and we're another tweet away from dropping ten points if they said they went home and we have no deal and tariffs are coming on. that's how risky the market is right now. it's causing a lot of problems for uber just trying figure out how to price that one. you've heard what we've been

saying about that all day. we were talking about new highs two weeks ago and the market expanding. a bunch of new lows today. big names, dow du pont's been a mess for two weeks 3m, new 52-week low. >> there goes the bell at the bell we are down half of 1% on the dow. in points terms that is down 137 points well off the loeftz day, which was down 450 the other indices down less than half of 1% that does it for the first half of "closing bell." sara, back to you. another wild day around those trade concerns, heading into a very important meeting between the u.s. and china welcome to "closing bell." i'm sara eisen wilfred frost rejoining me in a minute mike santoli, senior cnbc markets commentator. a lot better than it looked around mid-morning that is for sure the dow going out with a decline

of 140 points. at one point this morning we were down 450 points reacting to some comments from president trump rallying in florida last night with tough talk on china. we got word that the chinese president xi jinping sent a beautiful letter to president trump, maybe got some hope that they could work something out. that certainly sent markets off the lows closing down just half a -- just a third of 1% on the s&p 500 real estate and energy popped into positive territory. materials, technology, and consumer discretionary for the week it was looking pretty ugly there. at one point in the session. right now it looks like we're down about 2 1/2% for stocks heading into a friday. the russell losing a third of 1% as well. it is a busy one after the bell today. we are waiting uber's ipo pricing. also earnings on deck from wynn. dropbox, zillow, booking holdings and more. team coverage on these developing stories we'll bring you the information

as soon as we get it let's talk about this market today and the wild ride. mike, what is your take on the rebound and the action we saw? >> markets obviously very twitchy. we have a deadline, event risk type situation and the event risk is perceived as being in both directions. right? so we actually had a fair bit of selling over the course of the last few days. and i do think that's why you got a little bit of rebound on this hint that maybe we could even defer this day of reckoning on tariffs or have some kind of an arrangement that's palatable to the market. i think only in retrospect are we going to know if this whole pullback is mostly about trade it obviously was a catalyst, it was a trigger. but now once you have leadership groups stumbling and once you have a little bit of an unwind about rally, you have to have actual buyers come in and say that's all it was, it wasn't about the fed or second half earnings or anything like that >> let's get more on the sell-off bob pisani's been in the middle of the action all day.

bob. >> the important thing is that comment from the president, i got the letter that was good for 20 points, almost 200 points in the dow 20 points from the s&p earlier in the day just take a look here. we did end well off the lows but i don't want to underplay this too much or overplay. the market is still weak we're down 2 sxers, 3% for the week two weeks ago we were talking about all the new highs out there. we were starting to see new lows show up. let me just show you dow du pont, which has been essentially really taken out and hit very badly the last few weeks that stock was around 38, somewhere around there, about a week and a half ago. it's sitting around 31 it has earnings a little while ago but dow du pont is sitting at a 52-week low right now another stock that's moving 3m the important thing here closing at 175 here. disappointing guidance there from a couple of weeks ago that stock is sitting also at 52-week lows these are two big dow components

at 52-week lows. tech's had a rough time as well. apple's down about 5% so far this month it was down again today. if you could take a look there intel still down 5% today. 10% for the month overall. the lowest level since january they had some very particular comments earnings and revenues growing only single-digit percentage range over the next three years. of course you know about the semiconductors micron found probably 8% or 9% this week. the game theory is really difficult here the hope of course would be that you would have overall issues with the tariffs ending but that seems very unlikely at this point. >> we're going to dive into the broader markets in more detail in just a moment we have some detail. first up is dropbox. deidra bosa has it for us. >> beat on the top and bottom line shares popping more than 5% in the after hours. in terms adjusted eps 10 cents that is four cents greater than the street was expecting revenue

coming in at $386 million. that's up 22% year over year and that is higher than the $382 million in revenue that was expected average revenue per user, this is also a beat $121.04. $120.40 was expected remember, i mentioned those thet new users, paid users has jumped to $13.2 million so that should satisfy the street as well 13 million was expected. now, i do have to mention, though, we did not get guidance yet. that is likely to come on the call and last quarter this is what really sank the stock in the after-hours. so while we are seeing, you know, a decent pop of about 4%, let's wait until we get those numbers to really decide, guys and just keep in mind this has been a year since this company has become public and it has beaten expectations now. everything reported it has been a public company adjusted operating margin has just caught my eye it actually is 10.1% versus 10.9% a year ago this is shrinking a little bit

week ask drew about that when we talk to him shortly. back over to you >> all right, deirdre, thank you. we've got another earnings alert on booking holdings. seema mody with those numbers. >> hey, sara booking earnings reporting earnings of $11.17 adjusted which is below the street consensus of $11.27. revenue the key metric to watch. $2.84 billion. that looks like a 3% decrease year over year so coming in below expectations. also worth noting just pulling out this number, adjusted ebidta for q1, $718 million that was down 10% year over year one bright spot was room nights booked up 10% year over year and better than its competitors. but i think it's the miss on its top and bottom line, revenue now decreasing 3% year over year that is the concern. and you're seeing the stock up about %. we'll continue to dig through the earnings report, guys. for now back to you. >> all right, seema, thank you joining us to talk about the

market today, stephanie link is here, portfolio manager at nieuwveen, a tiaa company. and david ellison, chief investment officer, joins us as well we've got earnings, we've got an uber ipo, pricing waiting to happen we've got the chinese premier in washington what are your expectations at this point >> there's lots going on i didn't do much this week because we're waiting for this result tonight it's all about trade this week and what that will do to global growth and what that will do to business confidence and consumer confidence and to the extent it erodes confidence levels what is it going to do to multiples because this rally has been all about multiple expansion to the extent you have confidence erode you will see multiple stocks start to pull in i know there's a lot of things going on but as a p.m. that's what i'm focusing on we'll see what happens tonight the way i view it is if you get a deal you'll have risk back on in terms of cyclical stocks will

outperform defensive if you have no deal, then you are going to have more of a defensive rally, more of a growth stocks rally. which you saw today. look at the software sector. they did quite well. i'm waiting to see what happens. and that's the way i think it's going to play out. >> another earnings alert. this one on wynn resorts contessa brewer with the numbers. contessa >> we're coming in line roughly with consensus estimates here. the earnings per share is coming in at 161 adjusted that's a penny beat for the consensus expecting $1.60 a share. and refunds coming in in line with expectations with 1.65 billion here it does look like there was an increase of operating revenues at wynn palace in macau and a decrease of 94 million at wynn macau. again, that's in macau and a decrease of $30 million in the las vegas operations right now. looks like the stock is down

about 2 1/3% we'll dive into this and be listening for more on the call some insight into what's happening in china sara, wilf >> contessa, thank you very much for that lots more of the stock analysis to come. but let's get back to the broader markets. dave ellison, we're down 2.5% for the week as a whole. does that make sense to you? sorry, dave hennessey. dave ellison, i got it right my apologize down 2 1/2% for the week with all the trade back and forth does that make sense to you? >> i think it's better than i thought it was going to be i think the trade thing has obviously been important to the market and certainly important to these companies and the fact the president's just raised tariffs like that is going to be very drupt disruptive i think the markets held up pretty well. but again, we heard today on a lot of the programming you guys had on, the economy's decent, people are working and when people are working and engaged and they're making money, all this other stuff doesn't matter as much, and i think the market's reflecting that i feel like the market's in a

good place and we can argue about valuation all day long but earnings matter and we're seeing that today in some of the numbers. and the availability of credit is very good jobs are good. i think you have to be patient and just stay where you are and let all this other noise kind of work itself out. >> i feel like we have to game out the scenario around tariffs. 1201 tonight essentially, friday morning these tariff rates are supposed to go from 10% to 25% when you assess consumer goods that come into this country from china, furniture for instance, agricultural products, food that we eat, what's going to be the impact on earnings estimates, on the economy, and on the stock market if that goes through no matter whether the tariffs continue or not. it's going to be more of a hit to confidence than actual numbers. if you look at the numbers they're talking about, it's about .2% of an impact negatively to gdp and it's a .2%

impact to inflation on the up side so those are two things that you can kind of massage the numbers the way you want but that's what we have come up with in our shop and so from a headline point of view the numbers shouldn't change that much but the confidence levels are a really big deal. remember back in december how confidence really started to erode and then in january we got all the december numbers that were also weak because of december the market does have a very big impact to sentiment too. and i think we have to watch how that will happen >> half a percent gdp in china that's the other piece >> china says it's going to retaliate. what's that going to look like >> i think we have to keep in mind, you can defer this you can envision a scenario where -- we're not going to impose the sanctions we're going to agree to continue talking. at one point we had a 90-day clock. that got kicked ahead. i think that would be at least brief relief for the markets i don't think there's necessarily a straight up or down at 12:01. >> and i would just also say

it's really about sectors. we'll see a massive rotation from what has been working, which has been cyclicals, into defensives if we don't get a deal and that's what you're starting to see all this week, actually >> more on the broader markets in a moment. another earnings alert just out. zillow diana olick has the numbers. >> zillow group reported a smaller loss than expected, outperforming in its new home flipping business. overall eps for q1 came in at a loss of 33 cents a share on revenue of 454 million that's versus expectations of a loss of 35 cents a share on revenue of 433 million q1 revenue up 51% annually and again, primarily driven by the zillow home offers program where buys and sell homes. that's big gains zillow bought 898 homes in q1, up 80% sequentially, and sold 414, up 200% over q4 it also announced tips expanding that program to six new markets, bringing them to a total of 20 planned by q1 of next year its mortgage program also drove

gains. now, this is the first quarter with co-founder rich barton at the helm as ceo. raskopf stepped down last year barton said we delivered strong first quarter results that met or exceeded our expectations in all segments zillow offers incredible consumer demand and rapid growth versus -- gives us confidence that we're in the early stages of something important, he said. shares up over 15% in later trading. back to you guys >> all right, diana, thank you we've had a few winners here in the after hours. we should pause. dropbox, let's do that one since we're going to talk to the ceo in just a few minutes. better quarter it has a long way to go. it's been hit hard over the last year >> it's up 14% year to date. the valuation's a little rich. but this is all about the new products the company has introduced and all about the new technology partnerships the company has produced so while revenue coming in at the top end of expectationsize very impressive i think the r2 number is more impressive.

it just speaks to getting traction with their existing customers. i want to see the cash flow number, though i haven't seen that one. but that will also be very important. >> last quarter they guided that the market was going to be down and it dropped a lot the margin was down year over year but not too much, which i think is encourage >> absolutely. >> the question is for a stock that's valued so richly revenue growth beats but only slightly, we're looking at 20% now, does it have to maintain 20% for the quarters ahead to justify? >> it's reassurance their very long-term plan of upselling and increasing revenue per user is on track i don't think it has to be by a certain date i also don't think it really makes sense to look at dropbox since we have uber coming out since the ipo. this is the way ipos often go. rush of excitement, burst higher, price at 21, opened at 28, went to 42 crashed, got cut in half and now it's building a base and finding a longer-term shareholder --

>> what did it -- >> 42. >> and of course the market melted down right after that too. it wasn't just about dropbox but i don't think that tomorrow with uber, how it opens, how it trades is going to be really the determining factor how we decide if it's a success or the company's really going to embrace or not >> meantime financials have yut performed the broader market for the past month safe haven during volatility let's discuss that it closed down a little bit today, up over the last month. david, i'll come to you. over the past month we did have earnings in the start of that which beat expectations and then we did see a bit of a steepening of the yield curve the yield curve move at least has unwound this week. ing where do you stand on the banks at the moment? >> the banks had a very good earnings season. that's behind us nobody thinks about it anymore i think they're in a good place. they know what they need to do to get better, and we just need to be patient. this is a group that's been the

slow boat to make money. that's how it's been it's not growing that fast but they need to remake their businesses and i think they're doing that i think generally it's all about rates and it's all about growth. rates are an important part of it big banks make sense and you've just got to be patient you're not going to get rich quick here of course you're not going to lose a lot either. it's a safe place to be right mow. >> it is worth taking a step back on a week like, this down for stocks, high yes for bonds, pushes yields down, pushes financials down to talk about where valuations stand right now after the sell-off valuations have been cheap for a really long time i'm actually impressed they've kind of hung in there on a relative basis i would have thought that in a risk-off market in a defensive kind of tape they would have gotten hit hard. >> in the middle of the pack for the week >> i would have expected them to be one of the worst. right? i actually think -- i don't want

to play the yield curve game i don't want to play the spread business honestly. i want to play capital markets, which is morgan stanley and citigroup in my book and i want to play self-help, which is a cost-cutting story at bank of america. i want to play the consumer, which is american express, which acts very, very good in a very challenging environment. and i have a new position in aig. that quarter was actually very good and i think that new ceo is turning around the company nicely >> citigroup was weak today because it's slightly more internationally exposed. but i get your point mike, another question on the banks is whether the investment banks, the capital markets, can have a good quarter. because we have seen volatility pick up. >> right which can break either way depgd on the ban depgd on how. you also have shaping up decent corporate bond issuances the makings are there for a decent quarter i do think as i mentioned since the yield curve it's probably a net positive that the three-month to ten-year yield curve is just about flat again and we're not seeing any signs

of the complete panic that we saw when it got inverted last time because it was really kind of brief sort of quasi-crisis for a moment >> you mean the banks or -- >> the banks in general. maybe if we move three basis points and it does invert people freak out again. but i think maybe we learned a lesson that we kind of overdid the fear for the short-term. >> okay. stephanie link, david ellison, thank you both very much for joining us braet to see you both as always. up next uber set to price its ipo any minute now with a shareholder and a critic ready to debate whether investors should buy the stock tomorrow and if it will follow in the footsteps of rival lyft. >> plus we will break down the charts to see whether history says the market could quickly rebound from this week's sell-off >> and as we heatoreakere d b h is a look at some of the big after-hours earnings movers as we await the conference calls

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nearly 14% you mentioned a ceo change ceo greg clark stepping down effective immediately. the company announcing richard hill named interim president and ceo. he's been on the board of directors since january of 2019. the company also announcing a new cfo. that's vincent pallet. that change was announced, that there would be a new cfo coming in january he was a former hp executive but the company also saying the search process is currently under way for a permanent ceo. as you mentioned, greg clark stepping down. effective immediately. richard hill named interim president and ceo at symantec, sara back over to you >> we are moments away from uber's ipo pricing the company likely to price around $44 to $45 a share. >> joining us to discuss, david treanor, ceo of new constructs jeff ranzell, v.c. at rocket fuel, and ed lee, cnbc contributor from the "new york

times. ed what are you going to be watching >> pricing likely at the lower end of the range, wondering if they're managing for the pop a lot of early investors will be locked in for months and months. there's the concerns that what you might have seen with lyft with the short hedge, they're still kind of there. but i think that's less of an issue. if you're betting on one of these companies you've got to bet on one that's part of it. but i still think the fundamentals matter in this case as much as we want to buy into the growth narrative i still don't know if it's a real business i don't know if on a per ride basis they can make it profitable going forward and whether it can only be profitable in certain instances but not in every other >> to that point, david, you feel like ride sharing as a service, it's usually beneficial for the consumers but not for the operators, not for the companies that provide the services >> exactly long term this is just going to be like your city bus service. there's really no profit margin

in it. if they're losing $3 billion now with all the incentives and by squeezing drivers to the point that drivers are protesting and not willing to work anymore, how is it going to work when they actually have to pay drivers a fair wage? this automatic driving, autonomous vehicle is not going to be a solution either. a lot of capital costs and insurance costs associated with that i think at the end of the day i agree with ed, this business model does not work. there are no profits in it >> we've got another side here, jeff you're an early investor when did you get in? and talk us through the growth and profitability story if you can. >> got in about four years ago i'm going to take the other side of this trade. i actually think that uber's in a really good position you look at their diversified global footprint, this is a company that is all over the world. they have an incredible balance sheet. they're diversified not only

amongst ride sharing but they also have uber eats, which i think is a huge opportunity of growth for us. it's $795 billion addressable market if they can just get 1% you're talking about bolting on another $8 billion on a forward revenue of 14.2 that we're expecting right now. to me that kind of a balance sheet, uber's doing exactly what they should be doing, keeping prices down low right now. so the competitors that they are competing with are going to struggle they dry up, uber will come in, pick up their market share, acquire the companies that are important to acquire, and then set the market and then i think everything changes in this is an exponential company this is a company that is leveraging other assets. it's doing everything they can do in the right way. and i think it's absolutely a miss if they -- they crate legendary company and it's a huge miss if we don't think they're going to do legendary

things in the future with it >> to one of the points they made there, if we did see a merger between uber and lyft down the line -- >> that would be a different story for sure i think that would benefit the combined company immensely i think that might hurt consumers ultimately, right? because right now we're enjoying the sort of lower prices because of this competition. from an experience standpoint to a consumer they both very much are the same a lot of the drivers drive for both what's the difference? often it just comes down to price. if they could combine they could control that better for sure >> uber has more cars. >> uber has more cars, exactly the product that tends to form the best for uber and lyft are the pooled rides because the company makes more money and the drivers make more money and it's cheaper for the consumers. it's a mindset that the consumers aren't always adapting i think the younger consumers are certainly because it's cheaper. and just culturally it's more of a fit for that age group but for a wider sort of marketplace it's not there yet and i think that's the real

question mark. >> lyft's failure has clearly brought down the valuation people talked about 120 billion. we're looking at 75 at moment. based on what cnbc reported. do you think that lowered it enough that it can have a good start? >> my sense is that they're trying to be pretty careful about it, to not get too aggressive on the ipo. it's very rare to have a company that said a year and a half ago we're going to do an ipo in a year and a half. they're not hitting the market they say we believe it's time to be a public company. they have a lot of similar type investors privately that they will have publicly i think they're trying place it in strong hands as every ipo does i think it's going to be a very good test for the market's appetite for a very long time horizon disruptive technology. are you willing to accept silicon valley financial math for a certain amount of time because the long-term opportunity is so large? >> we'll leave it there. david treanor, jeff renzell, thank you. and ed lee our thanks as well

still ahead, the earnings calls for booking holdings, wynn just about to begin in a few minutes. we're monitoring those calls we'll bring you any highlights coming up. >> plus dropbox ceo drew houston weighs in on his company's results and how trade tensions are impacting the tech industry. for your heart... your joints... or your digestion... so why wouldn't you take something for the most important part of you... your brain.

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see if we can get something done but they renegotiated the deal i mean, they took -- whether it's intellectual property theft, they took many, many parts of that deal and they renegotiated you can't do that. >> those comments from president trump helped the market off its lows the dow as you can see closed down about half of 1% or in points terms down 140 points the lows down 450. in terms of the s&p the low was down 1 1/2%. so significant improvement for all of the indices throughout the session. >> another big story today, facebook co-founder chris hughes calling out mark zuckerberg in an op-ed in the "new york times" calling for a break-up of the social network he helped create. earlier today on "squawk alley," senator blumenthal, richard blumenthal, also called for a break-up of the social media giant. listen >> i think that facebook needs to be broken up. the acquisitions of instagram and whatsapp knees to be unwound. and there needs to be department

of justice scrutiny about appropriate antitrust remedies and let's remember, being big is not illegal. it's the misuse of that bigness and market dominance such as facebook has been doing by acquiring innovative companies before they can really reach maturity and also copying new technology so as to stifle competition and innovation >> this is a pretty significant newsworthy comment from the senator because he's on the senate judiciary committee and on the subcommittee on antitrust. so they really could open some of these investigations, call on the ftc to -- i don't know if the ftc has the power to break up these companies, but certainly the calls are getting louder it is a political moment elizabeth warren has sort of jumped on this bandwagon and to hear it from a co-founder, see it written in such detail, almost personal descriptions of why facebook has become so powerful just moves this debate forward.

>> basically, facebook cast in this rovell always having to justify why it's not this maligned force in the world. on the other hand tech kind of outperformed today, down half a percent. i think it's a legitimate question that breaking it up how some what happens the day after you break it up? >> also consumers love it and it's free. >> clearly regulation is the other side of this, which could be a more sensible middle ground and achievable option. the other thing which during the discussion throughout the day on cnbc some guests said if you're talking about that then why aren't you talking about google as well, for example but i don't think that's a defense of not doing it to facebook but if there really is like senator blumenthal suggests in his comments today a swinging sense of opinion to break them up i think google will be in the crosshairs as well but to sara's point, consumers like both of them and it's free. >> it's also not a utility like, for instance, the phone company, something you need to use. we've got more earnings to tell

you about. this one on yelp kate rogers with the numbers >> coming in with a beat on the top and bottom line for q1 estimates of eps of 2 cents. compared to snaestimates of 1 c. the stock is down by over 9% now. that's because unique visitors declined during the quarter. the company also said transaction revenue came in lower than expected. they're also giving lower revenue guidance for the second quarter than had been projected. growth of between 4% and 6% compared to the original guidance of up 6.6% for q2 and as we said, the stock down over 9% right now. back over to you >> all right, kate, thank you. china's vice premier just arriving at the u.s. trade representative's office in washington kayla tausche's there with the details. kayla. >> you can see behind this big bus there are two black suvs that currently hold the chinese vice premier and the chinese

delegate that are set to arrive for trade talks. of course we have about 30 minutes before that starts they have security to go through. there is a lot of process that needs to happen before they can enter those talks. but i've just been told by the network cgtn, state chinese television network, that liu he, the vice premier, had media availability for chinese media, at the willard hotel here in washington just a few blocks away to my left, where the delegation usually stays when they come to town. no american media were present or were invited to that. but the translated quotes that were provided to us by cgtn say the chinese have come with sincerity and rational approach and the tariff hikes are not a good way to solve the problems between the two nations and that if tariffs are raised it's not only harmful for the chinese economy but also the american economy. that gives you a little bit of color about the negotiating approach by the vice premier as he enters these talks. they begin at 5:00 p.m

we expect they will go late into the evening. that is how the chinese usually prefer for these talks to go if they are going well. we'll keep you posted as the delegation departs here and as we get any more news after that. guys >> kayla, do we expect or do we know of any meeting between liu and president trump? in the past when he's come for these trade talks hasn't he at least had an audience with trump at some point? >> yes it's usually been to reciprocate president xi receiving the delegation in beijing before that we done not believe president xi last week in beijing received secretary mnuchin and ambassador lighthizer we didn't get any photo op of that there was no readout of that we don't know whether that happened also important to note liu he is not carrying the title of special envoy this trip, which in the past has meant that he was negotiating on behalf of the chinese president directly,

which would put him on more equal with a head of state, with a president like president trump, which is one of the reasons why he was received by president trump in the past. so we will see perhaps that meeting could take place tomorrow if things are going well but in the past it's been to reciprocate what the chinese have done in beijing and we're not sure whether that happened last week. >> okay, kayla, keep us posted fascinating stuff. it's going to be an interesting night of negotiations no doubt time for a cnbc news update with sue he resha hi, sue. >> hello, wilf hello, everyone. here's what's happening at this hour president trump taking questions from the press during a white house event on hospital billing including one on his son donald trump jr. being subpoenaed by the senate intelligence committee. >> i was very surprised. i saw richard burr saying there was no collusion two or three weeks ago. he went outside and somebody asked him, no, there's no collusion, we found no collusion. but i was very surprised to see my son my son's a very good person.

>> the white house says president trump plans to nominate acting defense secretary patrick shanahan as his permanent defense secretary. shanahan is a former boeing executive. trump breaking with tradition by choosing a pentagon chief who made a career at a top defense company. and federal officials are charging 19-year-old john earnest with 109 hate crimes for last moss shonth's shooting attt a synagogue in southern california one woman was killed and three others were injured. earnest has already pleaded not guilty to state charges. he is due back in court next week that's the news update this hour, guys i will send it back downtown to you. >> okay, sue thank you very much for that still ahead here on "closing bell," it's been another busy after-hours session for earnings including dropbox's strong report up next, ceo drew houston will break down the numbers in an exclusive interview before he speaks to analysts on the conference call. incomparable design makes it beautiful.

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shares of dropbox trading higher, up almost 4% after hours, after an earnings beat. our deirdre bosa is back now

along with us and she brings a special guest, dropbox ceo drew houston, to break down the numbers. deirdre, take it away. >> thanks. and drew, thanks so much for being with us in san francisco this quarter you managed to beat expectations and even some key metrics like paid users but your shares have underperformed the broader market during that time since you've been a public company what is it the markets are missing or do you think perhaps they want you guys to move faster >> well, we've had a great first year as a public company and every quarter meeting or exceeding our expectations and we've had a great start to this year too. so we're really happy with our results. and as i told our team when we went public, our stock price will fluctuate for a while a little bit of volatility in the first year is totally normal we've had a great start to this year across the board. as you said, growing revenue by 22% year over year, over 13 million paying users now we're really excited about how we're doing.

>> it was another good quarter but of course we're waiting to get that guidance on the call. but i want to talk to you, stay on this sort of how you've been as a public company. you guys went public with losses how much did that matter on your -- how much were investors questioning that and why do you think this is such a huge sticking point and such a major point in the narrative for companies like uber and lyft? are investors more focused on it or is it because your losses are so much bigger than anything we've seen before? >> well, investors have really appreciated the stability and steady growth of our business. and the fact that we've been free cash flow positive the last few years is a big selling point for a lot of them. that's been our focus as a company and i think that's contributed to some of the stability in the stock and you know, companies that are going public with higher growth but big losses, it will just be a different profile. we'll see what happens >> certainly a different

business model now, uber of course is going public tomorrow. we can't avoid it. and i know that you know travis kalanick personally. we now know he's not going to be up here on the balcony tomorrow ringing that bell, he's going to be down here on the floor. as a founder yourself, do you think that this is the right decision who's done more to grow this company, dara or travis? >> well, i think -- i wasn't close to that decision i think uber's an amazing company. i think they should all be very proud of what they've built. i think travis should be very proud of starting the company and leading it to what it's become and then dara's also done a great job as ceo i think it's a great milestone i think they should celebrate. >> drew, thanks for joining us the 20% or so revenue growth, it was a little ahead of expectations some of which, though, comes from arpu growth, average revenue per user growth, which also slightly beat expectation

how many more levers have you got to pull on that point in order to maintain the overall top line growth? >> well, two of the biggest levers that we continue to improve are subscriber growths and then the average revenue for subscriber, or arpu growth and both are a focus of us -- both are a focus for us. and the arpu growth has been driven by adoption of higher tier plans, whether that's higher tier individual plans or the business version of dropbox. as we've added new functionality to the product, for example, this quarter we rolled out an integration with g suite where you can have google docs sheets inside dropbox, things like that drive engagement and then drive value and then as people see more value in dropbox they buy higher tier plans. >> hey, drew, my last question for you, slack is getting ready to go public and some people are drawing the comparison to you guys, the low sales and marketing costs, the word of mouth business model has being a public company helped you guys expand further into enterprise and do you think

that will be a positive thing for slack? >> yeah, absolutely. slack and zoom are great companies and examples of folks that have a similar model to us. in our case people start using dropbox at home or as an individual they bring it to work and start using it as a team and adoption scales virally and organically, and which contributes to lower sales and marketing costs and really fishtd in scaling the business that's been how we've -- that's been a big part of how we've done and then i think slack and zoom -- i'm really excited for slack. they've built a great company. it will be fun to see them in the public market. >> certainly, drew thank you very much for being with us today. >> thank you >> drew houston and our deirdre bosa, thanks to you as well. up next on "closing bell," a blast from the past. there could be some major trdslarities between this market and en from the post-brexit

market mike santoli over at the telestrator for what that might mean for where stocks are headed next what's this? it's your piano. hold this for a sec. we don't have a piano. no.. but the neighbors do. just ok is not ok. especially when it comes to your network. at&t is america's best wireless network according to america's biggest test. now with 5g evolution. the first step to 5g. more for your thing. that's our thing.

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help me meet a client's need. is the fund built to sell or built to last? etfs are only part of a portfolio. so make it easy to explain. give me a quality fund that helps me get clients closer to their goals. flexshares etfs are designed and managed around investor objectives. so you can advise with confidence. before investing, consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully. welcome back the dow has recovered from the sell-off last fall now trade tensions have caused a pullback mike santoli's at the telestrator with a look at how this year's pattern compared to the dow's performance a few years back in 2016 mike >> we'll travel back in time a little bit, wilf starting late last year i was talking about this possible comparison of the current environment to 2015, 2016 when you did have this big sell-off this is the dow from the fall of

2015, when you had the market just about at a high, to this big plunge into january and february this is the diamond bottom this was kind of a global industrial slowdown. oil crashed. we remember what was going on there. then you had this dramatic and around right here and right to this point it was about 15 or 17% gain in the dow, and then you had brexit, right? this was the shock of brexit as it happened. it was a very nasty little pullback and people wondered if there would be a relapse back here and we remember it was very short lived and how long the pain lasted there. so that's the model of something that we were going through righ now when the market also tapped out. obviously, it's not a perfect match, but it is pretty similar and for one thing, you see the bottom in december and it went untested and it was like a w back in 2016, but you had this

19 or 20-week rally that was stronger it was about 25% and you basically got it back all. you got it back just about to the highs and we had this 3% pullback on a geopolitical noise on trade in terms of having to consolidate a big rally and getting an excuse to do so, this might be something vaguely similar. >> i guess the takeaway is that we continued to rally up to the brexit pullback. >> we did. we went back toward the highs and got nervous ahead of the election it will fall apart at some point, this analogy, but right now it's not too bad >> great stuff thank you very much. >> still ahead, the view from china. president trump's tariff talk dominating headlines in the states aownd h the trade fight has been playing out in the chinese media next what's a target date fund?

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we've got breaking news on uber's ipo >> deirdre bosa saying the pricing for uber's ipo and that is a fully dilution of $82.4 billion. that's about a dollar above the low end of the range they had been marketing to investors. we are not sure at this time if they've changed the number of shares they were planning to offer in the ipo, but 180 million, but if it is the same the offering size would be $8.1 billion still the largest ipo of the year however, the $45 per share indicates a somewhat tepid demand especially relative to what they were anticipating when they launched that roadshow so we'll see how this thing trades tomorrow back over to you >> okay. leslie, thanks very much it will be fascinating to watch that tomorrow. let's check in on other headlines making news after

hours. softwaremaker semantic plunging after announcing weak earnings guideness and the ceo stepping down immediately and down 11%. the profit and revenue miss and that is off. >> zillow surging after a 44% increase in mortgage revenues. a bit of a short squeeze >> something of a short squeeze. >> not out of whack for how zillow trades after earnings and it has a whippy move and a lot of doubters and it's also been a weak stock lately. >> we've been talking a lot about uber and whether it's a good deal for investors and when the pricing will come in and the big picture given the market volatility we've seen this week. what sort of signal does it cast over the cycle in the market >> in order of observations right now, it's a positive that the deal got done. obviously, the market did not get all that jumpy ahead of this

so they managed to price it within the range that's okay. $8 billion is a very big deal. i do think they wanted to be careful about trying to make sure there was a long-term orientation and not really take too much of the upside on the ipo price. that all makes sense very difficult to handicap how it trades and i doubt a lot of the buyers are playing for an absolute huge pop, but you never know >> if the tariffs got to 25% overnight. >> by the way, we are seeing the treasury secretary steven mnuchin and robert lighthizer entering the u.s. trade representative office. they're in washington, d.c. on 17th street, kayla, never seen so much press around the ustr office, i guess, but the chinese vice premier is there. >> yes we see a motorcade coming in led by some sirens just behind us. as you can see, there are several black suburbans that have been staged in this area. we thought earlier that the delegation was in here

he had been at the hotel just a few blocks away giving a few press statements to the chinese media who were there you can tell there was quite a receiving line here. we've never seen the trade representative and the treasury secretary on these steps to receive the chinese delegation we are hearing shouts here in the street you see, of course, the scrum of media waiting to shout questions at the delegation as they're walking in you can see the chinese vice premier here leading the pack, first shaking the hand of the trade representative and then moving over to the treasury secretary and the delegation that he has behind him we were expecting him to bring a delegation of about a hundred officials and a signal of their commitment to a deal and there's been obvious frustration between the two sides bubbling up into the public sphere as there's been what u.s. officials call reneging by china on this deal they have a smaller delegation with them. perhaps a credibility hit has been taken by the vice premier