and beyonce's really interesting because she performed at one of the parties during the travis kalanick areas and that's something he got a lot of flak for later on >> they must be thrilled getting those shares today good job good to have you with us today that's it for frch prc"power lu" >> "closing bell" starts right now. success today is a stable price. a little bit higher than the pricing, not a lot higher than the pricing. >> will uber's ceo see what he considers a success today? anything could happen in this, the final hour of trade. welcome to "the closing bell." i'm wilfred frost. >> and i'm sara eisen. and we're sknding at the uber post biggest ipo of the year. stocks still lower a bit of a stumble out of the gate opening below its ipo price at 42 it still sits below that price right now. now it's priced at the bottom end of the range

>> but as that intraday chart shows, it could have been worse. coming up we'll have the new york stock exchange president stacy cunningham to discuss the ipo and after the bell former uber chief business officer emil michael will join us here in order to discuss >> let's start with bob pisani for a look at what has been a wild day for stocks. an unfortunate day to debut in the public market. >> we'll see how it closes the important thing, the market absolutely refused to believe there's going to be any kind of problems with the trade deal and won't address the real potential economic issues. just look what happened here steve mnuchin, here we go. okay we have talks are constructive this is good for 25 points on the s&p 500. 250 points on the dow jones industrial average it's remarkable. then we have the head of the south china post, the editor there, coming out making some comments saying oh, well, the talks did not collapse, somehow that's good for another 10 or 15 points on the s&p 500.

it's remarkable if you look at what's really going on there's been a big turnaround in a number of stocks dow du pont has been acting like -- it's one of the big dow components 38 a few weeks ago here it is look at that move on the up side that's just on the hopes again, the more hoping that's involved another stock that acts like that, 3m ever since the earnings came out on the concerns about the trade war issues it was $220. 220 two weeks ago. look at this 175. here we go again look at that little line they've got here now into positive territory. that's a very big move on an intraday basis i don't know if it's a turnaround or not but it's definitely a huge move intel. look at this move to the down side this is -- just this month here. you see we're down 10% a lot of stocks in a lot of trouble. fortunately, there's been companies out there that are trying to figure out what really is going on, what's the actual impact of the tariffs in place

not something that may go away shortly. ubs, 25.025% a quarter percent reduction in gdp. just with the tariffs they announced today. they admitted we don't know about the additional tariffs he's threatening them and we don't know what the response will be over the weekend from tariff guys, back to you. >> bob pisani. let's talk more about uber's first day of trade leslie picker joins us at the uber post, and it would be telling if uber closes lower in a market that is recovered and turned positive. >> that's a good point, sara, because this morning when it debuted it debuted at that $42 per share number the market was significantly lower. as the market continued climbing higher, it was clear that uber was maintaining that level of about $44 per share, or 43.7 as of right now the company has to raise -- that's a silver lining for uber because that 8.1 billion could

be used to further its advances in the ridesharing battle for dominance, which we know is fiercely competitive with lyft and other ride-hailing companies around the world but investors who were allocated stocks yesterday, including paypal actually, which took on $500 million at the $45 price, they're underwater today and it's kind of difficult to recover especially once you break below the $45 price. there will be case studies, what went on here, early indications at least according to people i'm talking with, that demand was just tepid for this one. and they didn't see the retail demand come in today that could help bring that momentum really to the up side >> leslie, of all the points you've been discussing today, one of the ones that stood out to me they raised around 30 billion before today, takes us up to 37, 38 billion the market cap between 70 and 80 we're only talking about a market cap of just over 2x the actual capital they have raised so a lot of people, unless they were part of the really early

fund-raising round, they're underwater as well, including the private placement last summer with a price above the settle >> correct there were shares sold years ago that were less than the price by which they debuted today and if you look at the post money evaluation for the $75 billion, you're actually less than the latest private round, which was at $76 billion if you take out the money that they raised, the $8 billion from that market cap figure, you're looking at a valuation that's actually even less than the money they raised in their latest private round it's clear it's not just the investors allocated the stock, there are some private investors and likely some employees who are sitting underwater right now. >> have you talked to the bankers about why the tepid demand >> i did a lot of people look at lyft, and i'm told according to people who were involved in the book hif building process that the single question they heard time and time again, is this going to be another lyft? because people lost a lot of money with that deal and it still hasn't recovered so that is again -- we talk all

the time about first mover advanta advantage, uber definitely felt some impact of the lyft ipo. >> dara kos rhosrowshahi says t' one of the reasons they played it conservatively. >> uber ceo dara khosrowshahi appeared early on cnbc, talked about the process of deciding how to price the ipo >> pricing the deal is an art, not a science. so we will probably have had it imperfectly, but we thought that at this price the environment sun certain right now. anytime there's uncertainty in the market investors are going to be a little hesitant to put 8 billion of their dollars to work and we wanted to put our stock with a group of funds who we know aren't just going to hold for the next week but they're going to hold for the next year and hopefully for the next five

years. so when we looked at the environment and we balanced how we really think of the company long term, this was a great result $8 billion is one key for us to build -- >> joining us now to discuss further, dan ives, wedbush securities managing director, mark lehman president of jnp securities, and steve jang, founder and managing partner of kindred ventures steve, i'll start with you you've been involved with uber as an adviser, as an investor since the early days is today a day of celebration or the price decline and the underwhelming market cap is that making it a disappointment >> the entire early employee investor adviser base, we all spent time today and the mood is celebration. it's the ten-year mark almost since the founding of the company, and i think a lot of people are just super excited to see the next stage of growth happen and the liquidity and the

ability to be in the public market is something that everyone, 100% of the employee base, has been looking forward to as well >> dan, you were pretty bullish going into today i read your note you're talking about a $100 billion plus valuation are you nervous about the way it traded on its first day? >> no. look, definitely a little stumble out of the gate, but just gichbt lyft traven the lyfk that's really the skittishness in terms of this name as well as the overall tech field the threehead monster of ride share -- this does not in any way take this away from our full thesis it's an opportunity in a choppy tape >> what do you think it is that has weighed both on lyft and on uber relative to where expectations were a few months ago? and is it a warning sign for other ipos to come

>> i think this is a statement about path to profitability and this is a statement to people who put money in the late rounds of other private companies with big valuations is you've got to have a path to profitability raising $8 billion is nothing to sneeze about but you look at companies that have recently gone public that do have that path you look at zoom, a company we mention the a lot over the last couple of weeks but we haven't mentioned today. that stock, the contrast, it tells me path to profitability and what investors are looking at and the ipo tape is fine but you've got to price it right and have a path to profitability >> 42.96, down 4 1/2%. as an investor what do you see as the key difference between uber and lyft and why do you think they're going to offer different prospects for investors? >> as we know, lyft is domestically focused in the u.s. they're also very focused on hide-sharing as their primary

product. uber is diversified. they're essentially a software logistics company that's global. they have ride sharing, uber eats, which is the delivery courier business, and the apg business, which is constantly expanding out into uber elevate, which is approaching local air traffic and autonomous vehicles. so what you have is a software logistics network. the types of network effects you would expect from that and then you have lyft which is focused on ride-sharing just in the u.s. so you have a pretty different business at this point >> can you see them becoming profitable this question is pre the sort of autonomous driving years can they become profitable while they still have such big rivals like lyft in the home market or do they have to merge or agree not to continue to undercut each other on price >> that's the 1$100 billion question in terms of why it's a

battleground stock, profitability the next three to five years versus the long term. i think it's going to be very difficult for them the next three to five years to be profitable for ridesharing the way they're ultimately profitable is going to be on autonomous and really eats as well as -- the key to monetization of the platform and that's why right now that from a profitability contingency continues to fall out which is why we're in unprecedented territory and in our opinion where it's going in the next five to seven, ten years but no doubt that's why there's a line in the sand between the bulls and the bears with profitability really front and center. >> bears are kind of winning out right now. mark, here's my question if the total addressable market, you know, there's this huge opportunity for growth and ride sharing and food delivery in disrupting the freight business, if it is in the trillions as the company has laid out in its filings. 5 to 7 billion more than that if you add the other businesses,

how's revenue growth going >> it's a competitive marketplace. it's a marketplace that's had lots of premium priced into it and right now they're having to subsidize a lot of that market we see duopolies in the states and other competitors for uber as they go global. the issue right now in this bull-bear argument you're going to have over the next few years is deep down is ride sharing a good business, are taxis a good business, is delivery a good business or not? are those businesses really good businesses $8 billion to go play with it and figure out whether it is or is not right now likely said the bulls may be losing a little bit, but it's too early to tell i do think there's a humongous market ahead of them and dara, i put the money on him for now the bears have won so far because this is not the splash everybody wanted >> thank you all for joining us. president trump increasing n rtofs on $200 billiowoh

goods coming to this country from china up next we'll look at areas of the market that could be hit the hardest. alright boys, time for bed.

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president trump increasing tariffs on $200 billion worth of goods from china to 25% from 10%. kayla tausche's in washington with the latest for us kayla. >> we have been awaiting a readout on talks between the u.s. and china that wrapped a couple hours ago and just moments ago we saw the president start a twitter thread with what appears to be the official statement on these talks the president tweeting "over the course of the past few days the united states and china have held candid and constructive conversations on the status of the trade relationship between both countries the relationship between president xi and myself remains a very strong one. conversations into the future will continue. in the meantime the united states has imposed tariffs on china which may or may not be removed depending on what happens with respect to future negotiations." so the president leaving some suspense there as to the outcome of these negotiations and saying these talks will go into the future but not giving a time frame for those talks as there

are some reports that the u.s. gave beijing a four-week timeline for these talks to conclude we know that the administration has moved the goalposts from time to time as it has sought different deadlines and allowed these talks to continue on a protracted basis so we'll see what happens and how these negotiations proceed back and forth as the u.s. tries to get china to hold firm to its original commitments in the meantime last hour we had an opportunity to speak to cleet will elms who until a few weeks ago was deputy director of the national economic council. one of the lead trade negotiators for the white house. he was relatively optimistic he said there had been tussles over the content of this deal before and not only did he think there could be a deal in the future, he also said the president has told his advisers if there's not a good deal walk away listen >> while i was in the administration and now on the outside i can tell you that structural change in china is important and i think what the president signaled this week is

that a deal that doesn't include meaningful commitments on forced technology transfer isn't a deal worth having the president has told his advisers many times that they should walk away if those aren't the kind of commitments that they're able to receive. >> of course the tone of the president's tweets this afternoon quite different from the tone of the president's tweets this morning. we still don't know if he had that phone call with president xi that he referenced yesterday, whether that played into this. but of course we'll do more reporting on this. we'll get back to you. wilf sara >> kayla, thank you. the major averages are at session highs right now. dow's up 111 points. still on track for the worst week of the year on all this trade uncertainty. joining us now is david jervis from jefferies i believe you've been pretty bullish on the stock market. has this new wrinkle in the trade talks this week and the new tariffs dented any of that optimism >> not really, sara. we've talked a lot about trade in our commentaries over the

last six to twelve months. i think the storyline for me's been pretty consistent this is a game theory story. the president is trying to get a more cooperative outcome out of the chinese. he's threatening the defect move if you want to put it in prisoner's dilemma term which is the ugly outcome everybody's fearing, and he's trying to move from this quadrant in the game which is one where we've been more cooperative than the chinese. and that's sort of what john nash the old nobel laureate who kept writing about the eke lib rooem in the prisoner's dilemma game always suggested would be the typical pattern you that see. i think this is all par for the course i do think the president probably correctly looks at the strength of the economy and feels his hand is stronger and so he can be a little bit more aggressive and he probably has two backstops. one, he can pull away if the market were to go down and stay down and he probably also has a federal reserve backstop as they're watching it pretty closely as well. >> david, if we did see th elevated tariffs remain in place

for, say, the rest of 2019, would that change your view? or given as you said the central bank compared to other developed central banks has room to cut, that either way you feel -- >> i think the market's going to be our feedback mechanism and the market's telling you that even though everybody was almost 99% sure a deal was going to come we really didn't see that big of a pullback. we saw a little bit of risk off. here we're ending on a pretty good note. with no deal we're barely down a little over 2% from the all-time highs. the market's going to be the barometer here, and i think the market's telling you that this is probably not as big a deal as many have made it out to be. if we continue on the negotiation path and even if we go down a sort of protracted period of tariffs and a little bit of friction in the global trade world, we're trying to iron out o'a more cooperative deal all around and i think that's probably something the markets are going to look at as a very positive long-term outcome and even a long-term

outcome. it just may take a lot of arm twisting to get there. >> to your point, david, the stock market's down now only 2% for the week it was looking a lot uglier this morning when the dow was down 350 or so. the question is on the economy, though if the tariffs stay in place, 200 billion now taxed at 25% with the threat of more and chinese retaliation. what does that do to the economy and to consumer prices >> i think what the stock market's telling you and kind of what i think the right economic analysis is telling you is that it's not that big of a deal for the u.s. it is a bigger deal for china and probably for other emerging market companies that rely on china. but it's a small friction in a much bigger economy. we have a c plus i plus g plus x economy. x is not the biggest part of that structure we have a lot of c and a lot of i and a lot of g i don't think you can really start talking about recessionary impulses coming from trade and in particular i don't think you

can go down that route if you've got a federal reserve that's very worried about the inflation story and how it's developed over the long run. we saw john williams speak today to that about how it's quite worrying how much we've missed on the inflation target. you have a dovish-leaning fed. you've got them ready to pull the trigger if things go bad -- >> i don't know how worried they are about it, david. wasn't that the whole market's tantrum after the fed, because powell called it transient and transitory he didn't sound too worried about it >> i think -- well, one, i think we saw that get walked back a little bit we've seen a lot of miscommunications from chair powell throughout the last six months so i think the market is taking his words with a little bit of a grain of salt. and i don't think there's a story that's long-term transitory there may be some short-term transitory factors, which is what i think was said by vice chair clarida and i think reiterated today by john williams at the new york fed

but again, i think off-the-cuff remarks by chair powell, we can segue into that if you like, sara, i think are going to be discounted quite heavily after all we went through in october, november, december last year those turned out to be pretty big false flags for the market i don't think we're going to fall for that again. >> another debate for another day. david zervos, thank you very much and by the way, with this better performance the s&p's only on pace for its worst week since march. >> and every sector is now positive >> it's been a wild turnaround here as we've seen all week long. 3:00 anything could happen and we've still got a little under 40 minutes to go before the closing bell check out the dow up 144 the lows down 358 this morning then we heard there was progress on trade talks and just like that, boom s&p 500 up half a percent. wilfred said every sector's in the green. utilities, staples in the lead a little defensive but still pretty nice comeback for the day. we'll have more on today's big ipo. uber we're going to talk about it

with nysepresident stacey cunningham >> and jane wells is tracking tariff and trade woes on the west coast jane >> hey, guys i've got numbers including this one. yeah, u.s. exports to china are erl s.ut look at this. ovalu. exports are up .3% in the first quarter what china schmina? when we come back. measure up? a cfa charterholder does. you've worked hard to grow your wealth. make sure you're working with a wealth manager who can grow with you. cfa charterholders have the investment expertise to unlock opportunities other advisors might not see. learn what a cfa charterholdr can do for you at therightquestion.org

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more on the trade war with china. jane >> hey, wilfred. despite the trade war the ports are busy here at the l.a. port the busiest in the nation traffic is up year to date. oakland had its best april ever. but i'm going to show you four numbers. follow me. we're going old school the first one 20%. that's the average increase u.s. companies are paying because of tariffs due to china 125 billion. that is what amazon and walmart, mostly amazon, have paid so far because of the tariffs not china. amazon and walmart but look at this .3%. even though chinese exports are down, exports to china are down, overall u.s. related exports for the first quarter this year up .3%. and the final number, .04 of 1%. that is the hit to gdp because

of the drop in u.s. exports to china. that's about $6 billion. a lot of money, but the president says we're making a whole lot more based on tariffs. so what happens now with the new tariffs? gene seroka says we wait >> there are more than 9,000 commodities that will be impacted with this next wave of tariff increases but cargo moving on the water now will not be impacted we really see a change the next couple weeks at that point we'll take stock of where orders are going. >> everybody's trying to do workarounds. a lot of stuff is getting switched from china to vietnam vietnam's gdp growth rate is around 7%. back to you. >> jane, what about the sort of second derivative effects that we could see is that factored into that 0.4% number you showed us or not? >> that 0.4% is strictly the comparison of u.s. exports to china in the first quarter this year versus last year.

0.4% is just back and that is $6 billion. it does not factor in potentially other things like if we were able to get more stuff in there and then repatriate the taxes on those profits back in the u.s. >> okay, jane, great stuff thank you very much. jane wells at the port of los angeles. >> take a look at this market turnaround we've been talking about. new session highs on the stock market at one point today the dow was down more than 380 points. guess what it's up 187 points s&p 500 continuing to build steam here into the close. it's up now almost 3/4 of 1% nasdaq up half a percent as well treasury yields rise to session highs as well. the president tweeting out the talks on trade were constructed. he may or may not remove the imposed tariffs. market liking that taking it with a glass half full kind of approach >> and again, another set of tweets which whatever the intention of them the market has managed to completely change its

perspective. >> whipsaw the market. >> hours ago >> the president has totally changed his tone >> the president has changed his tone the size of the shift today, though, is the biggest i think we've seen almost 2 1/2% from trough to peak on the s&p today. which is pretty big move all the sectors now positive most of them have been negative. uber did have a big effect earlier. once the uber ipo listed the market turned but then momentum because of trade has taken it where -- >> think about it. we came in this morning and there's new tariffs had just kicked in. 10% to 25% on 200 billion. no word on what happened last night with vice premier liu in the u.s. on those talks. finally when the news started to trickle out markets started to turn, it looks like talks continue that's taken as a good sign. let's get a cnbc news update right now with courtney regan. hi, courtney >> hi, sara. here's what else is happening at this hour. democratic presidential candidate elizabeth warren deriding president trump's trade negotiating strategy with china. she called it kay ottic and largely conducted through

twitter. >> i don't believe in negotiation by tweet i think that we need comprehensive, coherent plan before we ever get started and that would start with bringing our allies together so that we have maximum leverage against the chinese. rihanna certifying her status as a cultural fashion icon with a groundbreaking new deal with lvmh louis vuitton she announced she'd debut a line called venti this spring it will be based in paris. and wildlife expert jim fowler has died. he was most famous as emmy-winning host of mutual of omaha's "wild kingdom" which remained on the air for 20 years. he had a heart ailment when he died at his home in connecticut he was 89. that's the cnbc news update at this hour. back over to you, wilf and sara. >> thank you very much for that. we've bought some bregot? breaking news on trade eamon javers just spoke to an important member of trade

discussions. over to you. >> i just spoke briefly with treasury secretary mnuchin in the west wing. i asked him how the talks with the chinese went he said they were constructive then i asked him when other talks were scheduled with the chinese. what's next on the agenda. and he said nothing planned as of now so the treasury secretary indicating there are no talks scheduled in the future with the chinese delegation as of right now. he did seem to be in a good mood he was leaving the oval office area of the west wing along with ambassador lighthizer, peter navarro, the trade expert here was in the hallway in the west wing as well clearly a lot of trade-related activity this afternoon in the west wing. but the treasury secretary telling me the talks were constructive and in terms of future conversations with the chinese saying nothing planned as of now, wilfred >> we got that tweet, eamon, where the president said the imposed tariffs may or may not hold what's your sense of the

administration's tariffs as to whether they keep them in place the significantly higher rate on the tariffs. >> it seems like the president's leaving himself quite a lot of wiggle room here the other thing that struck me front tweet was there was no deadline specified by the president. in the past we've seen the can kicked down the sxrood a future deadline it's march 1st, it's next year or it's whenever but what we didn't see in this presidential tweet is a specific indication of when these talks will continue. the president just saying conversations into the future will continue. he didn't say when he doesn't specify a deadline. there's no countdown clock that we can begin to focus on as we saw last week with the president saying that these tariffs would go into place at the end of the week if there's no concessions by the chinese now it's just talks will continue into the indefinite future and the treasury secretary telling me simultaneously there's nothing planned in terms of future talks with the chinese as of right now. i think that's significant this is now an indefinite time horizon and that's not what we were looking at before >> eamon, thank you very much for that either way the market really

lots of developments for the last 20 minutes or so. we've got a 500-point swing on the dow from trough to peak, over 2% swing on the s&p, up about half a percent on the s&p as we approach the close less than 30 minutes to go 0.6% 150 points for the dow the low 358 points at around mid-morning. >> you know what's so telling, the fact the market is now trading at session highs, uber continues to move south. in its trading debuts. its stock moving toward the low o'tarred that $42 price target that it opened up. >> a lot of people blame the market turbulence, trade, china, on that sort of bumpy open well, guess what the market's turning around on china. uber is going south. coming up we're going to have more on the uber ipo from a former top executive of the chl.sharing company, emil miae >> and as we head to break, here's a check on the stock. we just showed it to you we'll show it again. back in a couple minutes

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our next guest says this is only a preview of what's to come next week when the president makes a decision on the section 232 trade investigation. that's the one that impacts imported cars and auto parts let's bring in john murphy from bank of america merrill lynch. what are you hearing are we actually going to see tariffs on auto imports? >> thanks, sara, for having me i think what we're seeing right now the 301 stuff is just the first shot across the bow. the president has to make a decision by the 17th or 18th the 18th is a saturday he's got to make a decision and deliver the decision to congress 30 days later. so we might not get the actual news next week thank you it's definitely possible that trump is going to go out there and say auto ares are a matter of national security and we'll see some big 10% to 25% tariff put on all imported autos and auto parts. then he has the opportunity to exempt every country or country by country and make this part of the bilateral trade negotiations with each individual country so yes, i think we're going to hear a very big news headline of this being put out there, yes. >> how quickly does that filter through to consumer prices

versus the automakers themselves having to take the snit. >> if we were to think about this being applied to all autos and auto parts imported to the north american market, assuming the u.s. holds up you could see a $2500 increase on the average auto sale in the united states now, it's only about $1,000 on ones that are produced here. about $4,000 on ones that are actually imported. >> average price being what? >> about 35,000. so yes, it would be very meaningful it would take time for that to filter through the 232 implementation wouldn't even really be decided on until the end of this year, sometime around mid november. so 180 days after the actual decision but it could be next year and we could see a big dent in auto demand if this comes through >> could you quantify the impact on jobs in the auto sector >> it's a very good question you know, there are some estimates out there that could be a loss of 500,000-plus jobs but the reality is when you look at 2.5 million -- >> why would president trump go through with something that would cost 500,000 jobs?

>> i think the ultimate end game is we have 2.5 million net imports of autos in into the u.s. that are sold here. if he grows that up into the jobs that could be created structurally in the united states you could be looking at way north of 500,000 jobs. now, that's all very simple analysis it's only including the first derivative there's a lot of second and third derivative reaction that will come from other countries those are the simple numbers but i think over time it would be an effort to increase localization of capacity here in the u.s. >> will there be any beneficiaries? >> you know, in the near term the simple second and third step would be anyone involved in used car pricing in the united states used car -- i'd look at companies like car max or car auction services that is a retailer and wholesaler of used cars on a relative basis the d-3 because they produce almost all their vicks here and they buy a lot of their parts in north america, would be somewhat better off but if you think about an average $2500 increase in the

price of a vehicle in the united states it would be very damaging to demand and probably the economy at large on a first step there would be a lot of losers a lot more losers than there would be winners >> veryquickly the tariffs we saw go into place today they do include some auto parts. are we going to feel this as a consumer >> if you were to simplistically look at -- we're only importing 60,000 vehicles roughly from china and only about $10 billion of auto parts. in the grand scheme of things the 301 stuff small potatoes relative to what we're going to see with 232 >> john murphy, thanks very much for joining us we've got 20 minutes left to trade. 19 minutes and we are higher but we've given up some of the steam following eamon javers's report after the president's tweet about half an hour ago was encouraging that the tariffs perhaps could be removed at some point whereas eamon made clear that there's no plan for when the next stage of talks might happen and we've given up some of the gains that we had -- >> so hard to read between the lines. that doesn't mean it's a breakdown of talks but -- >> still well off the lows

dow's up by 85 it was up by 150 but the low was down 350 >> up next on "closing bell" we're going to dive into uber's first day of trade with new york stock exchange president scetay cunningham she'll weigh in on today's move and how the exchange land the biggest ipo of the year.

uber stock is trading lower by some 8% at the moment not quite the low of the session. brief hit right at the open below that but it is close to the low of the session on its first day of trade. the largest ipo of the year. the 10th largest ipo in history in the u.s earlier uber ceo dara k khosrowshahi appeared on cnbc describing what would make uber's first day of trading successful >> success today is a stable price a little bit higher than the pricing, not a lot higher than the pricing because we want there could be fair price that the company received but we're going to be measuring success in three to five to ten years, not in one day. >> joining us now to discuss, stacey cunningham, the new york stock exchange president great to see you >> great to see you guys

>> thanks so much for joining us rated out of 10 how's the first day going now? >> it's been a great day i think there's a lot going on in the market and the market's under a lot of pressure. but still as we saw, we want to see trading come out smooth, and that's what we saw today opened at 42 and it's stayed relatively in that range >> we're quite a long way below the initial aim, below where it opened today who do you blame that on were the bankers too greedy? was the company too greedy >> i think if you take a step back and think of the size of this transaction last night $8.1 billion was priced we haven't seen an ipo of that size since alibaba went to market in 2014 i think the market absorbs that interest pretty well and then if you look at today we traded 1.4 billion nasdaq that opening trade today. and yet most of these blockbuster ipos managed to raise a lot of money and usually have a pretty good day it's fairly unusual to see a drop like this at an opening trade of a highly anticipated ipo that people think we're totally disrupting the way we live >> i think the market is

absorbing all the ipos that have come to market pretty well and i think if you look at the size of this ipo i'm not surprised the market was down over 300 points as it -- >> it rebounded. >> yeah. but i think there's a lot to absorb in the trade. today is one day in the life of this company they're in it for the long haul. if you look back over ten years nobody had an uber app on their phone because uber didn't even exist. now i can't think of someone i know who doesn't have an uber app. they built a platform with over 90 million users and now we're going to see what over the next five or ten years are they using that platform for. >> your predecessor tom farley was very clear earlier on cnbc that he felt the company should have gone public earlier one two, years earlier, not just weeks earlier. do you agree >> i think it's very easy to look in hindsight and say what are great market conditions overall, but you have to consider what's right for the company. and each individual company has their own conditions when are they ready to go public i don't think it would be easy to say it was the right time for uber in particular >> so who's waiting in the wings watching this uber action you

want to see go public? >> there are a lot of dynamic companies out there. and you know who they are. there are a lot of companies that have been getting ready what's interesting is at the end of the year when volatility really picked up we started to hear from some of those companies that have been waiting that they wanted to be ready to go public when they felt like the time was right for them. we've seen some of them come to market we have pager duty, pinterest, levi's, uber, and there are others that are out there too. >> we have a few on the board. what are you going to tell them if they ask you what happened? uber went down more than 7% its first day. >> i think you're describing that as a negative result for the company. they were able to price 8 billion shares last night and their stock traded pretty smoothly today >> what's your take as to why uber's down one day, fine, lyft is down significantly over the last month what is your take on why that has happened if it is a bit of a guide to the others to come public and where they should price accordingly? >> today as modern companies look a little bit differently than they did before and the private companies have been valuing them.

and the private markets do a good job there are a lot of smart people on the private market. but it's really the public markets that assess value securities and it takes some time to determine what that looks like and that's what we're seeing happen. >> stacey cunningham, thank you for joining us >> thank you >> big day for you the president of the new york stock exchange we've got 11 minutes to go in the trading session. and we have seen this rebound in stocks we are off the highs lost a little bit of steam in the last few moments there eamon javers said no new trade talks scheduled. maybe that has something to do with it after the president tweeted that talks were constructive it's hard to follow the news flow s&p 500 is up about .2 of a percent. nasdaq gone negative again t llffhe lows. >> well off the lows citi private bank's chief investment officer will tell us what he's watching and you should be mad your smart fridge is unnecessarily complicated. but you're not mad,

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hand what over? video games, whatever you got. let's go. you can watch videos of people playing video games in the morning. is that everything? i can see who's online. i'm gonna sweep the sofa fort. well, look what i found. take control of your wifi with xfinity xfi. let's roll! now that's simple, easy, awesome. xfinity xfi gives you the speed, coverage and control you need. manage your wifi network from anywhere when you download the xfi app today. steven, what do you tell clients when we are so buffetted around by headline rhys ak round

trade? >> don't make long-term portfolio mistakes in a news-driven environment. we're going to find some new equilibrium. trade rhys sak higher than markets think. it is entirely relevant and important for corporate profits across the world but markets will come to some new thinking, some new equilibrium and in the meantime they're going to be driven by headlines. and that could still be for weeks to come. but it could be very unpredictable in the short run >> rick, are we overlooking the significance of the cpi number earlier today given the headlines around uber and trade? >> i don't think so. i walked away after seeing ppi and cpi this week that it's not getting hotter, it's not really giving up a lot of ground. it's kind of floating right below the heated surface of the water. and that's okay for now. i know there's been several reports released today where surveys show that many ceos and analysts think that wage pressures ultimately are going to get a little more strength as the year progresses. but you know, i've also seen

reports that say productivity could mop that up a bit. i think the biggest thing with the markets this week is that the trade issues, a lot like the uber ipo, does it really matter where it priced today? doesn't it matter how it looks a week, a month, or a year if now? consider this. everybody's so nervous who's getting the worst side of the deal i know one thing for sure nobody can refute the world's biggest customer is the u.s., and you can't tell me china doesn't need us, the biggest customer, more than they need any other relationship on the planet and i think when you think about it that way and you look at the way the markets rebounded, we have all the excuses, oh, it was this tweet, it was the treasury secretary -- i'm sure. i'm sure all the keyboard jockeys out there pay close attention or program their machines to pay close attention. but at the end of the day we're doing pretty well with all the fundamental numbers despite the fact that we don't have a signed

trade agreement. i think sometimes we lose sight of that. >> okay. we're doing pretty well, steven, but we've got these new higher tariff rates to contend with what's going to be the process >> let's just start out by saying yes, the u.s. is doing well last year we had eps up 23%. and guess what that was not the peak. we can see from the first quarter of earnings season this is not going to be the big year but there's no peak in profits this year. will be up more than 4% in our estimate and up again in 2020. what we've seen out of the inflation data you just asked about is an economy that is not living beyond its means, that doesn't need a new downturn. and i'll mention by the way that the entirety of exports from china to the united states is less than 4% of china's gdp. the trade deal will not be everything but we are dealing with some things that on the profit front for specific companies like u.s. i.t. firms, 15% of their revenues earned inside china scale this again against the economy it's not that big but

particular companies it could be a very large profit issue. >> and i will just note even with the rebound apple remains the biggest loser. all these names continue to be selling off. >> right ahead of all of this, we've got to look at the condition and markets. we took cyclicals down timing down to a neutral from overweight semiconductors have been up 33% on the year to date. 20% over last 12 months prior to this so again, there has been some vulnerability heading into the more volatile summer months after seeing markets not perform as strongly, these extraordinary returns of the first four months, and this may be the excuse >> steven wieting, thank you very much. rick santelli, have a great weekend. we've got four minutes left in trade. let's go uptown to the nasdaq to look at some of the movers there. bertha coombs. hi, bertha >> hi. you were just talking about apple. it's apple's worst week of the year the uncertainty about when this might be resolved not good for companies like apple that really need growth in china certainly for chips as well.

the worst week of the year so far for chips. intell the second week in three. it is down 10% real concern about a slowdown in the economy for the chipmakers bucking the trend we have zillow group and booking holdings which both brook in better than expected results and we have lyft today with collateral damage from the uber ipo. but a couple of ipos that have done well here include online head-hunting firm headhunter which debuted yesterday. it is adding to gains after that debut. and trade web and zoom video are both up. zoom video in fact have doubled since it went public last month. so while you do have some tech ipos that are working very well in the after-market. back to you. >> bertha, thank you very much for that we've got just over 2 1/2 minutes left to trade and we are holding on to gains. as you can see, the dow is up 0.3% point terms it's up 73 points or so the low of the session down 350.

the high was up about 150 or so. we just pared back some of those gains. let's move on and look at the s&p 500 intraday the intraday chart has been crucial each trading day this week to tell the unfolding story. as you can see, it was pretty much around the time the uber ipo started to price 1.5%, 1.6% for the s&p around 11:45 we got the highs of the session. that was up about 0.5%, 0.6% and as we approached the clothes you can see we're up about 0.2% on the s&p let's have a look at the snapshot of the week as a whole. for it to be the worst week of the year on the s&p we would need to close down 2.2%, and we're down 2.3 it does look like it's going to be the worst week for the year, but it does not look like we will have declines for each five of the trading days because we are just positive as we approach the close. trade the main factor that has affected sentiment as well as the uber ipo today apple sara just mentioned it has been a good barometer because of

those china factors and a tech stock as well alongside uber today. you can see how it is down some 7% this week, pretty sharp, down 1.6% today and its intraday moves of the day have matched that of the s&p. i should mention, by the way, the s&p as i just said week to date down 2.3% that is outperformance relative to the rest of the world shanghai down 4 1/2% for the week germany down 2.8%. let's talk about uber. the big stock to focus on today. it priced at 45. as we aappropriate close it's down below 42 41.6 bob pisani joins us. down 7.7 >> a lot of people i think middle of the day rooting for it to get back into 44, close to 45 look at this one way it was a disappointment other way is tough to figure out where to price this in a difficult week the good news, you want to see a positive, all the companies that are coming in the next few months have been put on notice a

little bit to be a little more aggressive on the pricing and that means generally lower prices for the people who want to buy ipos. all those who want to buy the weworks of the world >> down almost 8% on the day having priced at 45. closing around 41.42 for uber. the broader market you can see the dow well off the lows of 350 points the s&p up 0.4% has its worst week of the year but it's avoided five straight days of declines sara, back to you. a wild session to cap off a wild week on wall street welcome to "closing bell." i'm sara eisen wilfred frost rejoining me in just a moment along with mike santoli, cnbc senior markets commentator. take a look at how we finished up today on wall street. we were all over the place but we did end the day higher.

the dow jones industrial average going out with a begin of 118 points not bad considering this morning we were down as much as 358 points s&p 500 breaks the losing streak closing higher for the first time all week long we have seen a positive close on the s&p, up .4%. it was one of the more defensive groups that led us there utilities. materials did well staples, real estate, financials only health care ended the day in the red the nasdaq composite closing just around the flat line. between gains and losses in the final hour of trade. the russell 2000 index of small caps up about .2 of 1% we just got the weekly numbers here and it looks like the s&p is moving 2.17%. that's going to make it's worst week of the year for the s&p worst week of the year for the nasdaq and not the worst week of the year for the dow maybe the worst week since march. you get the picture. it was kind of a bumpy week for

stocks treasury secretary steven mnuchin says today's china talks were constructive and helped turn the market around uber stumbling in its trading debut. let's check out where the stock closed remember, priced at 45, opened at 42. that was below the range it closed below its opening price. 41.57, down 7.6% one of the most hotly anticipated ipos and one of the biggest in u.s. history stumbling out of the gate. joining us to talk about the market today, bubba duran from bba capital partners welcome back, bubba. uber, tariffs, rebound take your pick >> you had a lot thrown at the market i think within a several-hour period there was a real concentration of anxiety and a little bit of suspense about the trade deadline and uber ipo all coming at once i think the context is we get a

lot of sort of down side work in five days pricing in some kind of suboptimal trade outcome. that's what happened i know you know i'm on record saying trade isn't big swing factor in this market but it was a really good excuse to take some froth out of the market and reposition people. it definitely deserves merit that we did come back. almost all the down side for the week happened overnight. you open lower every day and then during the day kind of froth higher most of the session. >> the swing factor yesterday, mike, in terms of tienling when we saw the bottom was uber >> 11:50 in the morning. i do think that watching uber and waiting for any further clarity on trade all came together people said uber was going to be a lot for the market to swallow. we were worried about what it said about sentiment then it gets priced and gets out there and guess what, it's no longer ahead of you. it's already done. so i think that was enough of

a -- not an all-clear signal but just this isn't going to hurt is any more than we've already been hurt >> what kind of move did you make if at all this week >> i didn't change any of my asset allocation or stocks but i did move on some of my favorite names today. this is all related. uber going into a difficult market, which is an interesting question i'd love to have been in these discussions. how they decided to go ahead anyway and the trade. the presidential tweet that started this all off after such a big run-up from january through last week we're just waiting for the ticker, people that have an excuse to take profits, and i think trade is it. and right now i think the market is discounting the median view that we're going troez ovl the trade issue, it will take a little longer. not a trade war. that's not priced in at all. >> what are some of the names you put money to work in today >> i'm a growth investor and i did my favorite names. a little bit of amazon, facebook but not much more. i think they were very constructive >> mike, you said trade is not

the most important swing factor for this market. what is right now? >> obviously it's always a blend of things. but i think that we're very much supported by where yields are right now. and also we had a weak inflation trend. very slightly softer than expected cpi number this morning. which for better or worse gets people thinking that there's a path to the fed becoming friendlier >> i think the trade fight escalation does that as well >> it does do that in part, which is probably why the down side was mitigated here. but look, second quarter earnings forecasts have continued to come down nothing that's really gone on has held what we'd anticipate the bulls want which is let's see those estimates bottom and start selling higher for the second, third, and fourth quarter. >> bob, do you get concerned about what the fed's doing would than a more important swing factor for you than trade is >> always. that's an important part of what drove the turnaround in the market when we came into january, was not only valuation at 15-plus ce but the fed did a

180. on trade when it looked like it was going to be resolved that was icing on the cake. so fed is key. >> do any of your companies have to be reevaluated after this week what we saw fundamentally change was the tariff rates did go up from 10% to 25% on $200 billion of goods affects semiconductors, affects auto parts, furniture, agricultural products. you have to take a look at your exposure >> well, you do. except that i think investors are still thinking this won't really happen. it's going to take a while to implement. and if you saw the 10% tariffs have not had much impact a big part of that was chinese devaluation of their currency, which is already starting to pop up and also the ameliorative effects of the tax cuts. that hasn't really shown up. also your own survey of cfos saying i'm not concerned about trade. investors are starting to distinguish there are different areas we've got to look at but we still don't know. in terms of the overall market i don't think it affects the

market fundamentally unless we have a full-scale war -- >> by the way, go back to sunday when this latest -- or the weekend when this latest bout of trade anxiety started, the president's tweet. he said extending tariffs to the other 325 billion in goods was on the table right? >> i think it as part of his tweet storm today. >> right but on sunday it seemed as if it was an outright threat, that by friday now we're not talking -- >> by the way, have the chinese retaliated yet >> no. they have not specified any retaliation. >> it's all going to be company by company and certain industries and we'll know it when they announce it. we don't know at this moment >> mike, we've seen volatility elevate for most of the week the pullback today, what did you make of that >> even when the market was selling off this morning, volatility was kind of sleepy. it was i think showing there had been already a ton of hedging that went on the first four days of this week and with the deadline which really did act as this event on the calendar that people were

very -- i think you did see the fever break a little bit and i think it was a positive that we did have throughout the course of the day. >> let's dive deeper into the trade discussions of today president trump, the move to slap new tariffs on china were a huge factor of course moving the markets. kayla tausche joins us with more on that. kayla? >> hey, wilf the official readout from a truncated round of trade talks came via the president's twitter account where he had an adjective for each of his top trade officials. constructive, which is the favorite word of the treasury secretary. to describe this round of negotiations during heightened tensions between the u.s. and china. he says that conversations into the future will continue that's an undetermined time frame there. it is expected that the next trip will be by the u.s. delegation over to beige i saw ambassador lighthizer just after this statement came out. i asked him when they would be heading over there he declined to comment and the treasury secretary told our eamon javers that there were

no talks planned as of yet so we will wait and see compactly when this next round continues. i do know from sources who are briefed on these talks that it's expected to be a matter of weeks before the president greenlights this potentially massive new round of tariffs on the remaining $325 billion in chinese goods coming into the u.s. i talked to administration sources who say that the president views the federal reserve as an even bigger threat to the u.s. economy than tariffs of any size that you could even imagine. he doesn't view them as a threat to the economy at all. of course the state of play we're in right now came because china late last week reneged on some of its major commitments to this trade deal, and i had an opportunity to have an exclusive conversation earlier this afternoon with a former top trade negotiator from the white house, clete will elms, and he said china's done this before. listen >> there has been a lot of back and forth. there's no question about that that's why i'm saying i think we still can get to a place where there is an agreement.

however, it is very significant that they aren't willing to commit to speck things at this point, and it's critical for the united states that they get those commitments so that this deal can actually be enforceable and make a difference over the long term. >> we'll see whether the desire to make and maintain those commitments changes in the coming weeks and whether president xi has a change of heart. wilf, sara >> that's the thing, kayla had this time last week wasn't the treasury secretary saying talks are constructive and we're moving toward a deal and the president dropped that shocker of a tweet over the weekend? it's like how should investors process all of this, living tweet to tweet >> well, we have a few anecdotes to reflect on. we know the treasury secretary said he left beijing feeling optimistic but that the team was given new information over the weekend that dramatically changed course on behalf of china. "wall street journal" reporting that china looked at some of the president's tweets about the

federal reserve and his suggestion that the fed should pump stimulus into the economy as perhaps a sign that china had more leverage. the u.s. economy was weaker than his administration was letting on perhaps they overplayed their hand are there but it's unclear where things stand right now. the vice premier said he came to the u.s. under pressure. his credibility i'm told by sources was damaged going into talks today. and at this point he might only be able to actually negotiate with the seven top members of the communist party in china actually agree upon. and that's going to be not the type of concessions that the administration is looking for here >> okay, kayla, great stuff. thank you very much for that mike, as for the fact that the market came off its lows, it was down less than china, down less than germany for the week as a whole, do you think that's investors saying ultimately we think a deal will come at some point in the next few months or they're really just not concerned even if these elevated tariffs remain in place for the whole of 2019? >> i don't think they're rushing to be too concerned about the

new elevated level i think probably most people believe some kind of a combination gets done. and the other thing i've been saying is the best moment for a trade deal is sometime in the hazy near future because i think the market can till kind still hang on that possibility unless we see the chinese economy really take a turn for the worse, unless you see the dollar start to rally in a complete risk aversion move. those are the things that's going to get the market's attenti attention. it's not necessarily going to be tariff policy and the rhetoric around it. >> terry duffy, said yesterday even with this move in stocks he didn't see a severe flight to safety in treasuries or dollar, gold, any of the traditional things >> treasuries are already very well bid you would say clearly yields are low -- there's not a panicky move it was more just -- even in stocks it was kind of a methodical bit of pressure all week but it wasn't a huge outright sprint away from stocks >> we've got to talk uber

closing out its first day of trade. highly anticipated ipo pricing at $45 a share opening lower than that at $42 closing down more than that. in the $41 range 41.57. down 7.6%. barbara, how do you read that? >> i think it was almost a given in this market that whatever ipo, let alone one this size, would close down you did not have the margin of people who would go in on this kind of market they tried to price it on the low end, but given lyft it wasn't a short at all. i think there's no hurry to buy this stock right now because they have no profitability it's a great management team, great platform, and they should be able to scale but many years we did in amazon, every year investors would say oh, my god, they'll never make money. the stock would crash. you'd buy it and it would continue to new highs. that could be the story with uber i think you may even get a chance to buy it lower

>> mike, does this really impact any potential ipos still to come this year and force them to price a bit more conservatively? >> i don't think so. simply because we've already had examples of well received deals. pinterest went off pretty well and traded okay. >> beyond meat >> absolutely. so i do think what you have seen, uber is a very distinctive situation. just because of the size and maturity of the company already. the fact that the institutional investor class has had access to the story for a very long time it's such a known quantity this was not uber's introduction to the world valuation was already up at mega cap levels on day one. that's not the norm for an ipo to barbara's point about amazon, amazon was a tiny little startup when it began. it didn't reach $80 billion for many, many years after it was publicly released. you have to ask the questions aside frault business model questions which are on lyft as well did the insiders get the good part of these returns for

the time being we don't know. >> i bget the amazon comparison here they're growing like crazy they're in all sorts of places, not just ride sharing, and they value growth over profits. but amazon wasn't losing $2 billion. they weren't having a $3 billion operating loss this is an extreme level >> no. that part is different but any of the cash they are putting back into the business because they have user opportunity all over the world right now when a quarter of their revenue is only five cities, so wilthere's lots of untapped potential there that management team is impressive the ceo, the cfo so no matter what lies ahead i think this company is in very capable hands. >> to your point, they've raised a lot of money 8 or 9 billion they pulled the big lever now. they can't do another one to try to find more capital or -- >> i do think it's important as stacey cunningham is standing there with dara khosrowshahi,

escorting him throughout the morning. just told us a few moments ago the key is they raised that much money. they raised 8.1. she felt good about that that was sort of her spin on the whole don't necessarily look at the first day. it's a huge offering to absorb >> facebook went straight down for months after its ipo they were way aggressive on the price. and it's now a half trillion-dollar company. >> barbara doran, thank you so much for joining us. great to see you as always >> as we mentioned, uber shares did struggle after its debut on wall street. closing below its ipo crisis up next former uber executive neil michael gives us his outlook on the company >> and stocks staging a big comeback intraday despite the u.s. slapping new tariffs on chinese goods. we'll look at whether trade fears have been overgloen later on the show. let's build a better world for investing. let's create jobs, build bridges, insure prosperity. as investment management professionals, let's measure up.

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emil michael welcome, emil. nice to see you. >> thanks. >> what do you make of the opening day? >> a couple things besides what everyone's talking about, the china tariffs. i think what you're seeing is nirts still have to understand the uber story a bit i think what investors haven't seen is lyft trading, you just multiply that and you get uber what they're missing is the autonomous technology division which was just valued at $7.5 billion two weeks ago with a billion-dollar cash infusion the equity stakes it has in the other ride-sharing companies around the world as that comes out i think you'll see some recovery. >> that said, emil, a lot of people have discussed this valuation at length for some time, not just in the run-up to the ipo. regardless of the fact we traded up from 45 to 42 there was a private raising of 48 to 77 just over a year ago. do you feel like the valuation has peaked and we need to see something transformational like

autonomous driving to actually see momentum to the up side again? >> i think -- no i think the answer is that uber had an act 2 very early in the cycle. we had uber eats in 2015 and now we have uber freight and i think you'll see some less science fictiony things like autonomous driving new applications for the platform to happen pretty soon and they'll actually generate revenue and growth and see that growth tick back up. >> what about the timing of the ipo? some say it should have gone earlier and some using one of the factors that they could have avoided some of the management issues that the company was set to face over the last couple of years. management issues that applied to travis kalanick that some say also apply to you. would the act of going public earlier have avoided these issues >> i don't think so. when a company is in the growth phase and was as ambitious as we are and were, you want to be able to do that without the quarterly heartbeat of is

this -- is every wall street analyst and investor going to question every judgment you make because you know what? you're experimenting with new business models in new regions i mean, we deployed in china, russia, 93 countries around the world. and i think you had to mature that business a little bit -- >> it sounds like you guys needed someone to question some of the behavior going on at uber, especially around the time you were there in the press it was like a parody of a startup culture at some point and your name came up in a lot of the controversy >> well, look, i think when you -- when i think about that, i take, you know, blame and apologize for things i do wrong but i also more than anything am more proud of what we built. we built an unbelievable platform there's a reason uber is the biggest rideshare company in the world by far if you combine all the others it's because we were doing some things right and for the 22,000 employees who put blood, sweat and tears here it was a great experience for almost all of them and i'm proud of that. >> do you think some of those public controversies led to a

declining market share in the u.s. is a risk factor investors continue to watch? >> i think initially when we had the delete uber campaign but i don't know if you remember that, that was about a political subject when after the inauguration -- it had nothing to do with sort of what was happening in the company per se. but yeah, there was some off the market share but i think uber's got it back >> and i think -- sorry, mike, you go >> how is this this company on a three-month by three-month quarterly basis be judged by wall street? because it's going to be by different standards than private investors who see this global vision years ahead >> i think you have to prioritize i think we're still in the growth phase i think uber eats has a long way to go from a growth standpoint and if you judge it by its sort of cash flow too soon i think that would be doing a disservice to the potential of that business that business has the potential to be as big as ride sharing is. and right now it's only a fraction of what that is that's going to be one metric. and you probably have to look at all the businesses separately and see quarter to quarter what they look like from a growth and

cash flow standpoint >> you think travis kalanick should have been up there ring the bell what do you think of the fact that dara shut him out from taking that moment of glory from the company he played such a big part in building >> you're asking a partisan. i'm friends with travis. i'm going to say that i would have loved to see him up there but he got to be here with his dad. and that was a special moment, to be here and celebrate what was a ten-year journey of a company he built with a platform that's as strong as uber is. so i think he got it too >> you were here too, right? >> i got to shake his hand at that special moment right after. >> one quick final question in terms of the overall vision and the way the company's evolved. did uber get lucky because the first version of uber was what we call uber black or uber lux today, not this mass market alternative to taxis, hence the name uber, which is now changed in common lexicon in terms of the way we use it were they lucky at the start >> absolutely not. this was not about luck.

this was about a couple of trends happening at the same time the iphone came out and you could all eph a sudden have an app. that was one trend the other trend was this idea of a black car which applied to any car. and then the ambition to go broad and deep to make the rides cheaper and cheaper with uber pool and to do it in 93 countries. and that was about hard work more than anything >> emil michael, thank you for joining us >> thanks for having me. >> some news at the break on goldman sachs. according to a source familiar with the issues, goldman sachs is close to buying united capital management that's a private wealth management firm. it's got about $24 billion under management the purchase price likely to be in the range of 700 to $750 million. an aim here is to expand goldman's high net worth client business here in the u.s. in particular so in the asset management arm of the business. they're already pretty big in their private wealth management division with the ultra high net

worth. this is the level just below it. it gives them the scale. a little under a billion $750 million buying in $24 billion of aum i guess mike, the strategy here, morgan stanley made a shift into this area. whether goldman is wanting to go out into the consumer area with markets to build deposit that's way or build out its private asset business this is part of that strategy. >> it has been a glowing piece of goldman in terms of the overall breakdown of the pie for a while now. it should over time help goldman's valuation. and also i would say a pretty good time to be a buyer of asset management assets because the valuations do seem relatively depressed versus what we've seen in the past. >> and we should say scale is what everyone's going after. and clearly there's a lot of -- >> massive generation is happening in that industry so we'll keep an eye on that of course monday morning to see how the market takes it. up next mike santoli will break down the charts to see if today's dramatic stock comeback will help get this year's rally

back on track. >> and the earnings parade marches on next week walmart leading the way. find out what else could move the market we'll give you a complete rundown of next week for trading later on "closing bell." this is my headquarters.

this is where i trade and manage my portfolio. since i added futures, i have access to the oil markets. and gold markets. ok. i'm plugged into equities. trade confirmed. and i have global access 24/7. meaning, i can do what i need to do. then i can focus on what i want to do. visit your online broker today, to learn more. welcome back let's have a look at this week's biggest dow winners. chevron of course ended up backing out of the deal for

anadarko the market liked that. oxy which looks like it's going to win that deal somewhere dlieng since all of that united health up 3.7%. mcdonald's up 1.3. despite some exposure in china but that seen as a defensive name travelers and p & g. only four in green on the tough week we had. >> biggest loser on the week intel followed by apple and boeing a little china story and a little intel investor day story. after this strong rally this year how long could this week's pullback last? mike santoli over at the telestrator with more. >> there's a lot going on in this chart i wanted to mark a lot of maybe landmarks for where this market might go and this is a two-year chart of the s&p 500 with several things. this is the all-time high. that was just obviously last week we reached the 2945 and you see that was barely above the september high that's something a lot of people are looking at saying you know

what, does that mean there's some kind of pretty firm ceiling on the market or is that coinciden coincidence? we don't know. here's the january 2018 high that was the real momentum peak. people got very excited. very sharp peak from there but we closed today within seven points of the s&p. that's less than a quarter of a percent above where we were, january 26th, 2018 that's also lending to this idea that maybe this is kind of a very broad trading range, we're in the upper end of it this line if we were to visit there, that's down 5% from the all-time high. we're obviously less than halfway to that pullback level a lot of folks looking at that and saying somehow that makes a lot of sense, perhaps as a place to target. if you were bearish at least on a tactical basis for that kind of level, it's just under 2800 in the s&p obviously these are still small moves but i do think this frames things correctly in terms of where we've been and how we've come really within a very broad trading range. >> when people come on here and say we could still have some

further room room to go -- >> on the down side. >> this is a good example. this is the 200-day moving average. also below the 5% pullback level. the 50-day we bounced hard off that a couple times this week. >> time for a cnbc news update with with courtney reagan. >> hi, wilf. here's what's happening at this hour facebook ceo mark zuckerberg meeting with french president macron to try to stave off threats of harsh regulations against his company. he went to paris to show macron facebook is working to limit violent extremism and hate speech shared on its platforms venezuelan opposition leader juan guaido said he has 80% to 85% of the rank and file of the armed forces but cuban and venezuelan intelligence agents have kept dissident military members in line with threats and intimidation this in an interview with the associated press and thousands of people in utah came out it celebrate the 150th anniversary of the transcontinental railroad. it was at promontory point when

the union pacific railroad and krefrnlt pacific railroad linked up may 10th, 1869. russian president putin scoring eight goals in an exhibition ice hockey game with former nhl players after the game he did a victory lap waving to the cheering cloud but he didn't notice a red carpet laid out on the ice and he fell. as the players rushed to help he got up quickly and continued his lap. i think i'd let him score eight goals if i was in that game too. that's your news update. >> i agree i would also fear for whoever put that carpet out as well. >> courtney, thank you still ahead, stocks staging a dramatic comeback on new hopes for a trade deal with china. up next. we'll discuss the odds of a deal happening sooner rather than later. and the potential impact on the economy if these talks do drag on and millennials driving the surge in craft beer sales. you might be surprised tfio nd out just how much they're spending on beer details coming up.

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stocks hitting session highs

in the halftime hour of trade on a tweet from president trump calling today's trade meeting with china constructive and hinted at future trade talks but then stocks finished off those highs after treasury kret steven mnuchin revealed to cnbc there were no plans for future trade talks with china >> this all follows the u.s. increasing tariffs on $250 billion of chinese goods from 10% to 25% joining us to discuss, fred kemp president and ceo of the atlantic council and chris c. mcdaniel former senior trade economist on the white house council of economic advisers fred, i'll start with you. where do you think the presidential's head is at at the moment is this game playing and maneuvering or is he serious these extra tariffs are going to stay in place for a long period of time? >> i for a long time have been critical of traders and investors in looking at these trade talks in isolation from the overall tensions in a relationship that has become much more about strategic competition than engagement. i think we're in a position where trump was betting that the

chinese leader would have to make compromises because his economy is so fragile. the chinese leader was betting that trump would blink first because he needs a deal by 2020. and what we found out is these trade talks are about a lot more than trade so i think we really have to look at the underlying geopolitics between the two countries, which is getting more tense on the technology front, more tense in the south china sea with freedom of navigation maneuvers. so i think market analysts have to start becoming a little bit more experts at geopolitical risk >> christine, how did you describe the state of u.s.-china trade talks at the moment? >> i take fred's point it's true, there's a lot going on trade is a small part of the bigger picture and also remember, these days with the 24/7 news cycle and the president who tweets very frequently about how he views things are going, it's all

really out there in the open for us to see blow by blow years ago this was all done behind closed doors. and behind those closed doors it wasn't uncommon for things to go up and down, up and down, one step forward, two steps back but we just didn't hear about it until it was all done. nowadays you hear every single thing, so we're getting a lot more noise >> how much damage to the u.s. economy will these extra tariffs have an effect on and can the u.s. economy take it >> i do not know so far the u.s. economy has been weathering it pretty well. unemployment 3.6%. we haven't seen that since the late '60s. consumer confidence very high. outlook very strong. so far it has not been a big problem. and even if we got to 25% on a broad range of consumer goods it doesn't look like it's going to derail the u.s. economy. i saw some numbers recently 700 to 800 -- $600 to $800 per

family of four tops. that is $60, $70 a month it's going to hit the low-income households more. but it doesn't seem like something that will derail the u.s. economy at this point >> finally, fred, political strategy here. even the democrats like senator chuck schumer are sort of complimenting president trump for taking a tougher line with china. ultimately, how's this going to apply for him, economic impact and political impact together ahead of an election year? >> neither on the chinese side nor the u.s. side does one lose political points by being tough on the other person. but on the other hand you can't lose on the economy. you asked christine what the question was on the economy. i think an all-out trade war could take between a point and a point and a half of chinese growth while on the u.s. side it's probably less than .5, so .4, that's what economists are saying the thing i find interesting is you take a look at trump's tweets and everyone reads those.

what i'm starting to look at is the tweets of the editor in chief of the global times, which is a communist party daily and he really -- you really feel the chinese are getting tougher now. they feel the u.s. leadership is no longer about trying to get a trade deal but it's trying to undermine their rise and trying to contain their rise. so he wrote at the end of the day today the chinese want three things, they want the tariffs to go away, they want the u.s. not to ask for more in products that they should purchase than was realistic. but finally, and this is the big deal, is they want their dignity and sovereignty be respected and the deal, what they didn't like was demands that they change their laws to conform with the terms of the deal so this is all going to be about sovereignty, pride, nationhood and that goes way beyond what people usually think about in a trade deal >> fred and christine, thank you both very much >> thank you got to find that guy on twitter. we've got a news alert on qualcomm

seema mody with the details. seema. >> this is an interesting one. in connection with the qualcomm-apple patent settlement, a number of executives at qualcomm have been granted generous shares in the company. steven mollenkopf, the ceo, getting around 40 million shares, which equates to about $35 million. we're not sure what price they were granted at. excuse me, 40,000 shares 40,794 shares for steven mollenkopf, the ceo of qualcomm. a couple other executives also being granted shares remember, qualcomm was expected to get at least 4.5 to 4.7 billion dollars from apple as far as its patent settlement guys, back to you. >> seema, thank you very much for that 40,000 shares equates to about $3.4 million pretty sizable for -- clearly that's a huge move in their share. >> i guess it shows you the

height of the stakes for qualcomm with regard to this the whole strategy was essentially playing hardball on these matters and therefore it was sort of a bountdy for having, you know, won at least financially in this settlement >> odd that it's just five, six people i think that's getting this and i don't know if more junior employees -- >> those covered by that particularly long-term incentive plan probably. >> anyway. qualcomm of course up significantly since that deal was announced. up next, a startling sales statistic. we'll tell you what minl yalz are spending more on than their cell phone and utility bills combined plus a big celebrity fashion deal to tell you autbo rihanna teaming up with a top luxury brand the details when "closing bell" comes back

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...all while helping you to and through retirement. can you help with these? we're more of the plan, invest and protect kind of help... voya. helping you to and through retirement. rihanna has become the first woman to create an original brand at lvmh. her brand will also be the first new house since christian back in 1987. joining the likes of givenchy and fendi. the singer has a publishing brook but with her fendi group no word on how much the deal is worth. it talks about the significance and how many firsts there really are in this. it also is a whole new step for really a pop star, singer,

actress when it comes to goal deep and seriously into the fashion world. creating a brand at lvmh >> the beyonce one we're talking about recently this is much more significant. >> it's much more significant because it's lvmh and because it's going to be a whole new brand within that group. >> lvmhr eventually. >> fenti now >> a new survey found millennials spend more on craft beer every month than they do on their utility and cell phone bills. on average millennials spend $64 a month on beer, which is equivalent to most people's utility bill every month according to the craft beer council. 3% of annual beer sales in the u.s. interesting. it does really annoy me when beers are overpriced and often in my eyes less desirable when they try and be too over the top and flavor them and fruity and whatever. just simple beer, sell it cheap, get on with it >> not this millennial

>> it's a niche brand, right also that's just too low for utilities and cell phones. $64? >> i know. they're exaggerating it to make the headline in the story. but nonetheless -- >> $2 a day. it's not that bad. netflix has a china strategy, but launching there is not it. it said the streaming jien has been spending cash on acquiring the rights to producing its own mandarin language content. aiming to reach millions of mandarin speakers outside of china. netflix currently available in over 190 countries not including china. it is interesting. original local language content is tremendous for this i remember disney years ago talking about disney channel in all the different countries. maybe someday this could be helpful if they launch in china. but right now there's a huge chinese ex-pat community >> not mandarin. a little cantonese >> really? >> a little bit hong kong. >> i'm going to test you on that >> financing a family.

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>> more american women are delaying motherhood these days to pursue a career or just continue their education, but that decision is coming at a cost cnbc's senior personal finance correspondent sharon epperson has the story. ♪ ♪ man, you always want to go high. >> cynthia and alex pictured family time just like this, but their path to parenthood has been difficult and expensive seven years ago they conceived their son jake using in vittio

fertilization. >> do a round ball. >> cynthia's health insurance covered the cost they're undergoing treatment again to try for a second child, but this time without insurance coverage now that cynthia is a stay-at-home mom and alex's plan doesn't cover ivf. >> i work for a large shipping company, delivery company and our benefits are great i was a little shocked that we don't have that coverage. >> they're paying for procedures on their own and are $24,000 in debt, splitting the cost between credit cards and a home equity loan. >> we don't want to give up so then you try to figure out okay, what else can we do without digging us into a real financial hole >> according to data collected by information site fertility iq about 500 companies offer fertility benefits some including bank of america, ebay and tesla offer unlimited coverage for ivf cycles. still, about 80% of patients say they are paying out of pocket.

cynthia and alex say the emotional and financial toll is worth it, and they plan on talking to their son about why they made such sacrifices when the time is right. >> i think we hope that we'll be explaining to him and his other sibling that we did all this to have you, and that we made it and we worked it out >> cynthia started substitute teaching to help pay for treatments, and she says she's even considered working at starbucks which offers ivf coverage to part-time employees. experts we talked to say the expense of the treatments as well as the employees reluctant to ask for the coverage are two reasons why companies don't offer the benefits >> is it becoming more and more prominent? if it does take more people to ask for it, that's a reasonable excuse perhaps for why some companies don't provide it >> think more people are asking for it and more women are

seeing, more families are seeing that they're 500 and some companies and many states say there is a mandate for ivf treatment to be covered by companies and larger companies are self-insured and don't adhere so it does take employees to step up and say we need this. >> it's expensive, right >> 10,000 a treatment? >> $24,000 in one year and it can be upwards of 50,000 because it can take several cycles >> sharon, thank you very much great to see you as always >> the key things inveors edstne to have on their radar when we return what's a target date fund? what's a hedge fund? a mutual fund? an index fund? what should i ask my investment professional? how do i know if they're even legit? edgar? who's edgar? how do i read a 10-k? what about fees? what's an etf? 529 plan? 401(k)? how do we plan for retirement?

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can lift you right up. ♪ flights, hotels, cars, activities. expedia. everything you need to go. let's take a look at an intraday chart of the dow. it was a pretty wild ride. at one point we were down more than 350 points as traders woke up to new, higher tariffs on $200 billion worth of chinese imports in this country, but then we got word that the trade talks were constructive from the treasury secretary, the president also tweeting that out and helped the market recover and it was just off session highs when treasury secretary steven mnuchin told our eamon

javers that there were no other talks with china scheduled in the future, but still, sort of some optimism that there wasn't a complete breakdown. >> down 2.2% for the week as a whole. here's a look at what's coming up next week. >> slack prepares to go public and we'll also get earnings from take2 interactive. tilray and ralph laurent on tuesday. >> alibaba, macy's and ten cent as april retail sales data applied materials and pinterest on thursday and then friday, deere's earnings and may consumer sentiment data. so actually some bigger, more sort of economically important names and far from a resolution on china. >> it looks like we might be able to finally set aside. if you remember when we had that 90 days to come up with a deal and people said, fine, 90 days, when there's not a concentrated

deadline of some trigger point that will happen, i think the market can move beyond that. the bigger context was is this an excuse for a pullback we had a 3% pullback at the lows of the week and it seems benign and routine and it's shaking out some complacent settlement and resetting expectations about how fast you might get a trade deal. >> on the trade point, the key thing to focus on is on the president's twitter feed because that's moved markets this week >> let's hope it doesn't rain on sunday >> indeed. in terms of the week to day performance. technology and apple included in that >> that's right. there was a little more broad profit taking in the nasdaq and apple could be trying to relate it and the rest of them really were sxnt software down again today. so we had those earnings next week that were not so much bellwether and big tech weightings like cisco and alibaba. >> and walmart on consumer. >> the most bullish thing about the market coming up this week is when the market repaired

itself when it had wiggle to the down side and people use this as an opportunity to pick up things that are at a slight discount and if want, we have to look at revisit a little deeper. >> down 2.2% for the week. >> "fast money" begins right now. "fast money" starts right now live from the nasdaq marketsite overlooking new york's times square. i'm scott wapner in tonight for melissa lee. our traders on the desk are tim seymour, karen finerman, grass op and dan nathan. trade tensions escalate, but are these trade tantrums the buying opportunity you've been waiting for? we start with the ipo everyone on wall street was waiting for that's right, uber having a wild debut opening below its $45 ipo price, closing near the lows of the day, closing below its open price down