impact and there's a drug for cervical cancer that investors will be watching jeffrey's analyst estimates the stock could decline by 10% or jump by 20% based on the results we see tonight >> so cool meg, thanks. our next big health care summit takes place next week healthy returns may 21 i'll be there. all those folks you see there will be there. a lineup of guests that will do it. >> "closing bell" starts right now. wall street is laser focused on trade >> china has been running an economic war against the industrial democracies for now 20 years there's no chance donald trump backs down from this >> we've learned from sources the white house later this week plans to exercise a delay in a decision on auto tariffs >> we're trying to resolve the tariff issues as part of an agreement with usmca and that's something that we are focused on >> anything can happen in the

final hour of trading. "closing bell" starts right now. >> welcome to "closing bell. i'm sara eisen >> i'm wilfred frost let's get try to the markets the dow swinging more than 350 points intradi during the session. we're near session highs >> we've got full team coverage of what's driving the market as we begin this hour of trade. bertha coombs at the nasdaq. mark santoli, phil lebeau on auto tariffs, courtney reagan on weaker retail sales, rick santelli with the bond report and our guest host for the hour, barry knapp. >> plus, the big stories of the day. the global impact of a trade war with the former ambassador to china gary locke, plus talk with the ceo of "the new york times."

also day three of our week-long series highlighting five top fund managers for five days straight. jerry dodson has three stocks to watch into the close we start with bob. what's going on with the markets and this big turn around we've seen >> we did lift midmorning as the president said he was delaying auto tariffs we saw the autos move to the up side general motors moved up about 1% it's up and stayed up. but other key sectors trade related haven't done much at all. want to point out 3m and most of the other ones take a look here 3m down. caterpillar not doing much uelse take a move here to the left and i'll show you some of the big retailers still down another new low for gap. many of the other big retailers that import heavily from china on the down side no real bounce in some of the big trade-related names like industrials and retail friday was a real turning point for those kinds of names back to you. >> bob, thank you. the nasdaq is a big leader in

today's session. let's send it over to bertha coombs for a look at what's driving the action >> we're continuing to see a bounce in semis which have suffered since the tweets about trade since may 3rd off about 6.5% some of the big gainers include applied materials. they caught the loss for the week down about 1% for the group. and it's the first back-to-back session for them moving to the up side since may 3rd. large caps overall doing well today as well. we're going to get some 13fs those are the releases from companies about their investments. they've liquidated its stake in apple. and mylan at a new low after continuing concerns about the generic drug lawsuit we're going to pause our market for some breaking news. a helicopter crash in new york sue herera has the details for us >> what happened, according to

the new york police department is that a helicopter coming in for a landing fell short of the landing on west 30th street and the hudson river it crashed into the hudson river. you're looking at that live shot at the west 30th street port basically what happened is it had one person on board. that was the pilot a new york water ferry was approaching that particular area the ferry deploy someday life-saving services and they pulled the pilot into the ferry. he reportedly is unhurt. but it was coming in for a landing. it missed the heliport and went into the river one person on board. so far we report no injuries to that pilot who was rescued by a new york waterway crew guys we're monitoring this situation. i'll send it back to you >> sue, thanks turning back to the markets. news of a delay in auto tariffs reversed an earlier market slump. phil lebeau has the latest on that decision. >> let's remind everybody what

kayla tausche is reporting based on her conversations with sources. the trump administration is likely going to make a decision by the end of this week to delay whether or not they'll slap on auto tariffs on european vehicles built in europe, imported to the u.s. that would move the new deadline back to mid-november right now, a vehicle built in europe and brought over here pays a 2.5% tariff and the trump administration has said maybe that should be closer to 20% or 25%. this is huge for the european automakers remember, last year, just in terms of what we brought into this country from europe, while they only -- we only sell about 6.7% of our vehicles that come from europe, it represented $62.5 billion in business for the european automakers. that trade deficit over $45 billion. that's why volkswagen, bmw, daimler, all those stocks moving higher >> fiphil, thank you. we're also keeping a close eye on the retailers courtney reagan with the details for us

>> so april retail sales fell 0.2% from march. that's a disappointment. analysts were looking for a slight gain. compared to last april, retail sales gained 3.1%. they were revised from february. building materials, garden stores, that was the weakest sales down 1.9%. in april from march. department stores, the strongest category up 0.7% in april from march. and, in fact, macy's kicking off retail earnings addressing the looming trade tariffs as a headwind the ceo jeff gannett telling me while tariffs have had little impact to this point on macy's, a further increase will have a bigger impact. spending, tariff threats, what do you do with the retail stocks right now

>> we are cautious we think earnings per share can be cut by 10% to 30% so we're selective about what we like we like walmart, deep value concepts and we're worried about tariffs and pricing and what that means for the customer. we're still very cautious on department stores. we're cautious on apparel. and macy's print was better than feared however, there are some warning signs. inventories are a little bit high we've had colder weather, and we also have too much inventory in the apparel channel. so those are watch out points. bottom line is we'd go with big safe retailers like walmart. they're doing a great job with e-commerce as well >> talk to us about the tariff impact and who is going to be most affected. is it focused on those that source production from china or those that have a lot of demand in china >> a little bit of both. the sourcing is a key part of it given that a large chunk of apparel in footwear is sourced from china 50% or more in some cases.

prices will be hard to pass through to consumers, but that will have to happen. so margins will get squeezed we estimate prices will be 10% to 15% better. in the land of apparel, we already had promotional pressure this will be very difficult for companies to pass and they will yield earnings hits. so ulta, planet fitness, tiffany and company, walmart we think those are better stocks to own in this uncertain environment. >> very quickly, oliver, we'll get the numbers tomorrow is it still a barometer for u.s. consumer spending or are we expecting to see what we saw in the retail sales data today? >> sara, we're seeing bifurcation where a middle to lower income consumer is in a healthier place. given low unemployment as well as wage growth at the high end, a little more cautious is it a barometer? yes. we view it as a barometer. and fundamentally, there's a healthy consumer throughout.

we'll see that in solid walmart numbers. a plus 3% comp led by traffic. that should be a healthy place to be. we're also expecting e-commerce growth to be 35% or higher those will be key things we'll monitor, as well as gross margin pressure offsetting this is how expensative is to run a digital business and how important promotions are in this environment. >> oliver, thanks for joining us >> thanks for having me. the market discussion, we're trading not too far from session highs up 155 points. the high was 179 on the dow. the nasdaq is up 1.2%. joining our "closing bell" exchange, barry knapp and rick santelli at the cme in chicago barry, do you think the president is using the battle on autos with the allies, as it were, with eu and japan, softening its position to continue going hard on china,

and which is more important in your eyes for the market >> i think that my thesis was that once we get done with the deal on china we'd quickly move on to germany, japan and the other sources of our trade deficit. the fact this has been pushed back to november means we have a window for a decent window where capital spending can continue its boom and software and services and the like. so you have to view that as favorable news but i do -- >> even with the rhetoric still being elevated towards china >> the fact we're not going to go directly -- germany is good news and inevitably, we will end up going after germany as well. they are running a 7% current account surplus which is as big as china's was at peak six, seven years ago. germany a year ago was talking about cutting their income taxes, starting to stimulate domestic demand and working through all the imbalances that existed in europe.

they didn't do it for political reasons, and so germany is likely to become, you know, the subject of this ongoing trade war over time. and as i said, the fact it's moved back to november does give us an opportunity to get a deal done with china and then move on we do think ultimately there will be a deal done with china >> rick, we saw the impact that all these trade headlines are having even in the bond market you saw the stock market turn around and saw the yields come off the lows especially the two-year. what do you think of the bond market at this point is it slower growth because of these tariffs? >> well, you know, there's so many channels. i think it's impossible to decide which one is most important. on the channel of the relative value trade, you had bund yields briefly trading minus 12 basis points which is like 7 basis points away from their july 2016 all-time lows which our ten-year at that time was at 135. if we look at generic global

growth, it's definitely playing into the buying. i was actually quite disappointed in treasuries because normally they are very responsive to the buoyant effect of an equity especially a reversal day like we've had today. yes, they didn't go through, but especially could not get off its established 2019 closing yields. 2.37 for 10s and, yes, we came off several basis points on the short end, and that made sense. one other issue i think is huge and barry hit on it, but there's been a lot of deterioration in the german economy matter of fact, a lot of their -- they have a huge social program in germany there's been talk they may have to start looking at various issues as their economy continues to slow. this is huge with regard to cars and, remember, the trading foe of our trading foe is our friend everyone says we should be more in tune with our allies over how we proceed with china. believe me

it's like the new england patriots whoever is number one, everyone is their foe to some extent. and i do think we've gone awfully fast from, we think a deal is going to happen in spirit to we don't think one is going to happen for a long time. markets -- i think the issue is very much more gray than the markets are concentrating on right now >> rick, thank you very much for that barry will stick with us for the rest of the hour still to come, an exclusive interview with gary locke. we'll ask him about the major sticking point in the way of a deal "new york times" up more than 50% so far this yr.ea we'll speak with the ceo mark thompson about what's driving that move.

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"new york times" stock is up more than 50% so far this year with a total of 4.5 million subscriptions. the suspect still hoping to hit 10 million total subscriptions the ceo mike thompson join us

now from the media and communications conference. welcome. what's driving the digital subscription growth? still the trump bump or something else >> well, i think -- ultimately, it's an incredible period for news, and the fact that millions of people are turning to "the new york times" to try and understand what's going on in the world. i think i see this period as one where we've got better at the whole business of making digital products and delighting users with products but unlike most news organizations, we've invested in journalism we've got many more journalists today than we've ever had in the history of "the new york times." and we're picking the best journalists in the world, and they're going out and doing a great job explaining what's happening in the world >> to sara's point, have you seen things taper off at all since the publication of the mueller report if you look at some of the live tv numbers of some of your media

peers, it looks like there's been some fall-off, or do you still think you're confident that you're over 200,000 subscriber growth per quarter for the rest of 2019 >> the present quarter, q2, has always historically been lower than other quarters for us but the audience is very strong. that first week of mueller when the news came out that attorney general barr was going to receive the mueller report, that was also the week when there was the terrible fire at notre dame cathedral in paris and notre dame was a bigger story for "the times" man the mueller report was that week things that have been popping in recent days include things like our recaps of "game of thrones" have been doing fantastic business so "the times" is very full service. we're not like one of those cable networks which has been kind of living off the trump story and nothing else we do a full range of stories.

not saying in recent months our continued coverage of the me too. i think continuing great coverage of tech great investment of journalism and what's going on in silicon valley there's a broad base of content, and that's one of the reasons we're seeing a kind of steady growth in subscribers which is not dependent on the u.s. news cycle alone. >> you're also proving to be an anomaly in the overall newspaper business struggles at local papers across this country and tomorrow, actually, gannett shareholders face this proxy battle vote. a hostile takeover backed by a hedge fund what is this whole situation telling us about the fate and the future of the newspaper business >> well, i think much of the newspaper business, sadly, took decisions over the years to try

and rescue their businesses by cutting costs and cutting journalists. and now they are left trying different combinations of defensive consolidation. so complicated financial engineering and attempting to squeeze costs -- further costs out to get as much cash out of these businesses as they can, as they decline we've got a simpler idea which is closer to what netflix is up to and the other tv streaming services which is you invest in great content. you build your content you make it attractive to users. you make it easy for those users to subscribe you get more and more subscribers and that enables you to invest in more great content. so we found a way of getting into a virtual circle of growth rather than what i'm afraid is a vicious cycle of decline for much of american newspapers. >> you decided not to join the apple news offering. talk us through why you made that decision and what you think

about the offering overall do you think it's important that readers clearly know who has written the stories that they're reading and the identity of that publisher? >> i do. we have a presence on apple news we give apple news a few stories a day. and that's to distribute our journalism very widely we've got lots of readers who have apple devices, and we want to be present on those devices but our theory is very simple. we think the best way of consuming news is when you come to a news organization's own digital assets where you are you know the problems of the news you get used to the individual contributors, whether they're -- these are faces or voices or whether they are bylines and you know where you are by the way, if you don't like what you read, you can complain. you can hold them to account we think that the -- although they are a fact of life, all of the different ways, all the

feeds and things like google news and apple news, all the different sources are jumbled together, no matter how skillfully that's done, in the end, it's confusing. it makes it harder for people to tell what's true and what isn't true and in the, it's also bad for the news business. it's one of the reasons those newspapers are closing ie it's possibility of an effective business away from -- not from us, but from many other news organizations. >> mark, the president just tweeted as we've been on he's saying the fake news "washington post" and even more fake news "new york times" are writing stories that there's infight with my policy in the middle east. it goes on further, but the very fact that live as we're talking he has called you the even more fake news "new york times. what is your -- do you welcome this now we talked about your strong subs numbers. does it help you >> i think to be honest, it's

part of the background noise i mean, nowadays, a tweet like that, to be honest, there have been so many i think we're in the hundreds now. we tend to ignore them some of us have got proper jobs. we've got to get on with our work rather than spending our whole life tweeting at each other. i mean, i accept, of course, that there's a very lively debate about the character of news, about what you should believe and shouldn't believe. i think our numbers show that millions of people, not just people from america but around the world are turning to trusted sources of news. "the new york times" is one, but it's not the only one. it's a time when discerning readers understand there's a battle between the belief that it's important to get actual facts and know what's really going on and also the freedom of the media does not make journalists enemies of the people.

it's an important part of democracy. and those who, like the president, in a sense want to have a shouting match about everything >> presumably, mark, you don't think the president doesn't have a proper job >> i think that, you know, and to be fair, i think, like everyone else in this country, the president is entirely entitled to say exactly what he wants about "the new york times," "the washington post" and everything else. i passionately believe that we, too, should be held to account and if people don't like what we do, they are free to criticize i do think sometimes that the president, particularly using language like enemy of the people, i think was rightly criticized to his face by the publisher of "the new york times" for whipping up what could be dangerous hatred against journalists and what they do. there's a difference between reasonable criticism and something which is really dangerous. >> speaking of trump, i have to

ask you about this you've apologized and severed ties with a group that published an anti-semitic cartoon. what does it say about your editorial checks and balances and i wonder if you have to defend that decision-making now to publishers? >> i want to be very clear i'm the chief executive, not the publisher. but i'm very clear from talking to the publisher and the editor, we all accept this was a really serious mistake. it was a decision taken by one individual designing a page for the international edition of the newspaper. it should never have been published. it did, indeed, reveal some sho shortcomings in decision making which we're working very hard to put right. we've apologized profusely and i can say again, we are very, very sorry to everyone who was offended by this cartoon it should never have been published. the one thing i would say and

this is not to defend the cartoon. it should never have been published. you really, i think, i would ask you to accept that it was -- this was a one-off mistake by one individual it should not be seen as part of a broader pattern. in the immediate aftermath of the cartoon, not only did we apologize, but we also published a stinging piece by our own columnist bret stevens criticizing the newspaper and also an editorial which put this in the context of anti-semitism. no one should be in any doubt we think this was a very serious mistake and we're very sorry it happened >> mark thompson, thank you for your time. >> thank you 34 minutes to go before the closing bell take a look at the major averages apple going strong here. 184 points higher. at the low of the session we were down 190. markets took a sharp turn late in the morning when we reported,

kayla tausche reported the president is going to delay the auto import tariffs. also got word of potential trade talks within beijing with china. also, our five star fund manager series rolls on with three top ways to play the market into the close.

t. rowe price experts go beyond the numbers to examine investment opportunities firsthand, like biotech.

because your investments deserve the full story. t. rowe price invest with confidence.

welcome back we're highlighting all-star fund managers and their strategies amid recent market swings. joining us is jerry dodson, founder and portfolio manager. thanks very much for joining us. so what's your investing strategy >> our strategy is to pick big stocks we think are solid. they are socially and environmentally responsible but they are temporarily out of favor and hopefully we can buy them below their intrinsic value, perhaps as much as one-third off intrinsic value and when they come back in favor we'll have good returns for our shareholders >> talk to us about some of these picks. one of them is qualcomm which i

guess doesn't feel like it's below its intrinsic value after its recent run perhaps >> it certainly comes back a lot. it was down very low because of this dispute with apple. now it's up in the 80s now it's a lot higher. so we bought it when it was down very low we still think there's more up side because it's a stock that has a very unique product whichg phone. inside the chip that really runs that your phone comes from qualcomm and so we think also with 5g coming in, it's got a big future ahead of it. so we still think, even at this price, we think it's a good value. >> what else do you find out of favor in selling at a bargain price as you describe your strategy what other names >> the other name is applied

materials. and they make equipment for use in manufacturing semiconductors. and right now the cycle for these type of equipment, it's down and we think that at some point, they're going to come back and so we think that it's a really good investment now so we like applied materials >> jerry dodson, thanks for joining us with some picks barry knapp you can't talk specific ideas but on the whole, selling at bargain prices and finding stocks in favor, is it harder to do that in this market environment? >> no, i mean, i think there's two sectors that sort of stand out as being decidedly cheap one is going to continue to be cheap. until we get closer to the election, which is health care the other is the banking sector, which, you know, even today it under performs because of concerns about rates rallying or rates going down

even though the back end of the curve is steepening. never let that get in the way of a good story but the banking sector, what's gone on there is because of the regulatory environment and monetary policy for the first ten years of this recovery, return on equity never got above 10%. the same thing that happened in the 50s. in the fourth quarter it leapt to something more like 12. stayed there in the first quarter they've had enough of a mix in asset shift that the profitability is likely to continue that sector is cheap and now it's earning better capital and is likely to accrue value over time >> not really affected in the trade war, particularly if you look at a wells fargo. could be affected if a trade war caused a recession >> yeah, the probability of a trade war causing recession is really -- >> a bigger u.s. economic slowdown >> there's some degree of economic sensitivity i would argue that the bigger

issue would be -- here we'll play one out that's a low probability outcome. china does decide to invest themselves in treasuries a sharp move higher in the rmb that knock on effect is the fed decides to restart qe and start buying up all those assets the banks do what they've been doing and instead of investing in private sector loans they go back and buy securities because they know they can sell them to the fed if things go bad and that erodes that profitability. so there's a way -- >> that's quite a hypothesis there. >> weakening is more than just a hypothesis that's a clear risk. >> we'll continue that discussion in a moment we have 25 minutes left of the trade. let's send it over to mike who is tracking the performances of the low volatility etfs. >> this is a snapshot of whether offense or defense is winning.

the high beta names are outperforming slightly here's a one-year look where you see nearly 20% performance spread between low volatility stocks the 100 lowest and the high beta when did this start? right around here when bond yields were peaking and growth expectation remembers also peaking. and you see this very stark spread where you have these safer so-called defensive stocks holding up the overall s&p 500 in green and the high beta underperforming. but i did want to take a look at a year to date glimpse of this relationship because it's not been perfectly consistent. you actually did have a bigger comeback off the lows in december for the more aggressive stocks for high beta still outperforming the market, 18.5%. here's what you have to look at. this is the may switchback move where perhaps we're seeing a little more of a mixed performance and defense again

holding its own with bond yields where they are this is a little bit of an insight into what's animating the markets but also investor preferences and feelings about where this cycle is headed >> mike, thank you time for a cnbc news update with sue herera. >> here's what's happening president trump honoring fallen law enforcement officers attending the national peace officers memorial service at the capitol. he called all the men and women who died in the line of duty last year noble heroes >> these brave heroes did not put on the uniform for praise or for glory. they wore the badge because it was their duty, their calling, their noble purpose to serve, protect. suspected colorado school shooter devon erickson in court today. the 18-year-old facing dozens of charges including first-degree murder he and a juvenile suspect, alec mckinney are being held in jail.

the 16-year-old will be charged as an adult. a helicopter fell short of the landing pad and crashed into the hudson river in new york city a new york waterway ferry crew rescued the pilot who was not injured. there was no one else on board the chopper. you are up to date that's the news update guys, back to you. >> sue, thank you. still to come -- former u.s. ambassador to china gary locke joins us in an exclusive interview to break down all of today's big trade news plus, we hit the streets to find out how the people of new york feel about the trade war. >> the biggest fear for me as a consumer is the increasing price of imported goods from china, for sure >> my biggest fear is that china won't heed what president trump is saying and to act now >> the biggest fear is the ongoing uncertainty. the volatility is something we haven't seen in such a long time >> my biggest fear about the trade war is all of my cost of goods that i'm buying are going to increase significantly.

>> very inform gupedro up next, one way tariffs could put a dent in your wallet. dear tech, let's talk. we have a pretty good relationship. you've done a lot of good for the world. but i feel like you have the potential to do so much more. can we build ai without bias?

how do we bake security into everything we do? we need tech that helps people understand each other. that understands my business. we've got some work to do. and we need your help. we need your support. let's expect more from technology. let's put smart to work. ♪ ♪

president trump's new tariffs could be catastrophic

for some sneaker companies sara has that story for us >> sneaker companies and consumers. listen up. the trump administration is readying tariffs on the leftover $300 billion worth of chinese goods that come into this country. if he goes through with it, that could really hurt if you're buying sneakers. nearly all sneaks we buy in this country are imported 72% of the imported kicks actually come from china $11.4 billion worth of footwear came from china into the u.s. just last year if we do see a threatened 25% tariffs on sneakers, the fdra, the industry association for footwar says that could cost $7 billion in additional shoe costs each year. a pair of running shoes for 150 bucks usually would cost $206.25. a pair of basketball shoes go from $130 to $178.74 hunting boots would see a nearly 60% increase as well

now on the plus side for the companies, the big players have been diversifying their factories across asia. many have gone to vietnam in recent years according to nike's interactive factory map, china only accounts for 21% of nike's contract factories. only 13% of the factually workforce at the company right now. adidas says 18% of footwear volume in total last year was produced in china. double last produced in vietnam. under armour says out of their total volume, about 15% is sourced from china less than 10% actually comes into the u.s., though. the bottom line, the numbers are still significant and it's going to hurt u.s. consumers if the companies pass it on they'll do their best to absorb the cost, but sneakers are already facing pretty high import tariffs just the way that the system works this just compounds that >> nike and adidas have clearly moved a lot of their production out of china in recent years as your statistics show it's clear how much a price

increase you get it shows china could be under threat because there's a clear path for other manufacturers to follow into these countries. gdp per capita is low. >> they'll go to bangladesh. they'll not go to the u.s. because we're not competitive laborwise. >> but it doesn't have to lead to increased prices for the consumer in the long term, although clearly in the short term joining us with more on this latest round of tariffs, what they mean for the u.s., gary locke, former u.s. ambassador to china. thanks for joining us. >> sara, wilfred, good to be with you >> it seems the president has gone back to a very tough stance towards china and part of these negotiations is that something you think is warranted? is there a lot that china needs to answer for on the topic of trade? >> well, certainly american

companies and a lot of other foreign companies and foreign governments, including america, have longstanding concerns, complaintsra policies of china. and all the issues that have been raised in these discussions are legitimate and deeays said beginning that in using tariffs in a trade war only hurts the consumer and the workers of both countries. there are no winners in a trade war. as you've indicated, prices of things we use every day in our lives in america will go up. not just for consumers we've already seen it impacting our farmers. we've seen it impacting our manufacturers because so many of the components and the equipment, the heavy machinery that they use and buy come from china. and we're already seeing it with respect to consumers on the first round of tariffs that have just been raised to a 25%, but if the president goes through and puts 25% tariffs on everything else coming from

china, it will also hurt the consumer estimates being anywhere from $500 to $700 per year per average family but if you'll be buying a car, even a made in usa automobile, it could go up several thousands of dollars because a lot of the small little parts from the breaks to the pistons and everything else are made in china. >> ambassador locke, the chinese are coming to the table and talking about serious issues like corporate espionage and intellectual property theft. do you buy the idea they can work in the short term as a negotiating tactic as this president has said and then come off in the long term so they won't hurt our economy >> well, we've already seen the chinese kind of acknowledging our concerns and the concerns of other foreign companies and foreign governments. they've already started to open up their markets allowing automobile -- u.s. automobile manufacturers to operate and set up factories 100% on their own

because in the past, so many sectors of the chinese economy were off limits to any type of foreign investment number two, where foreign investment or ownership was allowed it had to be less than 50% which, therefore, required a partner. if you have that partner that has a majority stake, that's where a lot of the transfer of technology and know-how and trade secrets occurred and so the chinese have started to, number one, open up more sectors to foreign investment and eliminate that requirement of having to have a chinese partner. they're also trying to beef up their court system and intellectual property protections. it's going to be slow because, for instance, a lot of the judges in china are not even lawyers. so they've been working with our american legal experts, law professors, judges to really put up a court system that's more similar to the united states and u.s. companies are beginning to see that they are winning in court against these violations of intellectual property the progress will be slow. that's why the administration is

right to ensure there has to be some sort of enforcement mechanism to make sure that china follows through on their commitment now america's been saying we want to keep all of our tariffs in place on the chinese goods. well, that's going to continue to help american consumers and the chinese are saying, if we're making all these changes, you've got to back off on your tariffs just as the chinese will back off on the tariffs they impose on u.s. goods sold to china. >> ambassador, you speak to a lot of people in china how is the latest developments of the last few weeks gone down in china has it made a more meaningful turn of anti-american sentiment or is it working are they quaking in their boots at the threat of facing these escalated tariffs? >> well, the u.s. has to be very careful and the administration has to be very careful we need to continue to put pressure on china to negotiate and reach a deal but we've got to be very careful we don't go around using this rhetoric the president is now

using basically saying we've got china where we want them we're going to cripple them. we're going to hurt them and this trade war ultimately benefits america and not china it stiffens the chinese resolve and the chinese people themselves will not take kindly if their leadership seemingly buckles under to the president and so their chinese leaders now have to be perceived as being strong and forceful and it makes it hard for them to reach an agreement because they'll be seen as knuckling under u.s. pressure and you can't do that just as the president wouldn't want to be seep n as knuckling under pressure under any foreign government we've got to be careful. that's why i don't see an agreement coming forth in the short term there's going to be a lot of blustering on both sides and ultimately, the american consumers are going to pay the price.

the president says, hey, our american treasury is the big winner in this and it says we're collecting all these taxes. it's not a tax on the chinese consumer or the chinese company. it's a tax paid for by the american companies that purchase this machinery and equipment from china it's the american consumer that's buying those shoes, buying the microwaves, the tools, buying all the clothes that are -- that we see at macy's and target and home depot and costco >> gary locke, thank you for joining us ambassador, secretary and governor three titles he deserves there >> indeed. let's check in on individual market movers. ten minutes left of trade. some analyst calls moving stocks today. first up, susquehanna upgraded applied materials saying they secured major wins guggenheim upgrading zillow. the home selling option called offers

that's up 5.3% we've got about ten minutes left to go let's get back to mike santoli for how the home builders today are doing in the wake of key numbers. >> they continue to trade pretty well not keeping up quite with the s&p today. but look at it on a year to date basis. home builders itf up 28% almost. and more interesting this month, actually up about 1% whereas the s&p down some 3% that's that wiggle higher you see in the home builders to the end of the chart there obviously, this sector has gone pretty much its own way relative to the overall market. good supply/demand and low mortgage rates are refreshing this housing cycle it would seem route now after many years when it couldn't get out of its own way it's definitely a little bit -- it's operating as a bright spot in terms of an economic engine at a time when low bond yields are indicating broader economic momentum may be waning barry knapp, is the housing

market back as a contributor to economic growth? is that going to matter a lot? >> it is it's unlikely we'll get the 1% contribution that we've gotten almost every business cycle for a period of one to two years this cycle but it is going to be a positive driver of growth this year of course, in 1986 and '87 when we passed the tax bill, it caused significant disruption in the housing market because it raised the after-tax cost of mortgages, particularly on the high end that only lasted for a year. housing sales went down by 20% and then recovered in '88. this same thing is happening now. today's national association of home builders survey was up, but it was up in the northeast very sharply, which is the region most affected by the limitation of state and local taxes. and so we think we're having an echo of '88 in the housing market mortgage rates are contributing to it. but it's more the market adjusting to that one-time shock of losing the one-time mortgage

interest deduction and things are starting to move >> maybe the housing market in manhattan will come back >> wouldn't go that far. eight minutes of trade a top portfolio manager will tell us what he's trading into the close. ♪ e*trade core portfolios is an easy, automated way to get invested. we'll save you time by building, monitoring and managing a portfolio for you and provide all hands-on deck support when you need it- helping you become top dog. ♪

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we're join ed you've been watching trade sensitive stocks like apple and deer how do you think their trading direction, different directions today, tells us about what the market is pricing in between the latest tensions between the u.s. and china? >> i believe the rebound in the stock is underlying hopes that a lot of american investors have had that we will see a rapid inclusion in the trade tensions between the united states and china. we at double line have been more cautious on this and would advise others to take the same tact you might recall it's been six months, eight months that we've

been talking about how we think the trade conflict will be protracted and you've heard jeffrey -- the highly personalized conflict between trump and xi on the issue of trade to the proverbial force meets immovable object and the implication is that trade resolution is not something that's going to happen in the near term and though we look at stocks like that, carefully because the canary in the coal mine to determine what they are thinking about the longer term risk >> okay. so sell the bounce in apple. what would you buy i see likes of low multiple companies domestically here in the u.s. like what? >> well, some of the low multiple companies that we like are companies that already have very low expectations in the market anthem, the managed care company, is one name we particularly like.

we think that the price action which has been very difficult of late related to expectations that medicare for all or some sort of nationalization of health insurance is going to happen are completely misguided. we see, in fact, a company that has a very strong franchise and has great opportunities we think to improve their class structure. they have a new contract with tbs for their pharmacy benefit business and we expect that company will do better in the months ahead >> thanks for joining us we appreciate it we've got just under three minutes left of trade. let's get to bertha coombs >> the stock of the day has got to be alphabet snapping a six-session losing streak today a big gain after deutsche bank increased its price target to $1400 seeing more room for them in the smart speaker space the chips are really the other

big gainer today leading this rebound. second straight day when they are up on fairly strong volume. not as strong as the volume we saw when they sold off hard on monday applied material with an upgrade here today now up 2% for the week and even nxpi which fell 7% monday is fractionally higher for the week time for the closing countdown. let's bring in all of our reporters for this, of course. most importantly mike and bob. guys >> thank you very much so, bob, we're going out once again a little bit of a pullback from the highs into the close. we had a nice rally in some of the tech names particularly apple rebounding. a nice rally in some of the old faang names. microsoft moved up we saw facebook, netflix moving up

look how selective it is caterpillar, 3m, united technology they weren't in on this rally at all. the retail names hitting 52-week highs because they were big importers from china they're not doing anything gap doing nothing else and, of course, we had nothing from the banks. >> hey, guys just wanted to point out that we're losing a little steam. yes, we're still looking at a triple-digit gain for the dow but i'm wondering if you've seen this pattern before. the sort of trepidation as we hit the final seconds into the close. >> we saw it yesterday definitely saw it yesterday. and i think in general, look, the market took a bruising going into the lows of early this week i do think we relieved those conditions and on a traders basis, you don't know if you want to be holding things overnight because it has been a little bit of a tough environment. headlinewise overnight a little caution isn't the most negative thing if that's all it is >> my point here is on the trade names, the industrials and the

retailers, after what happened on friday, they're not going to get burned again they're not going to rally on every particular headline. and we need a lot more decisive movements. [ closing bell ] >> they're ringing the bell here at the big board the heavyweight champion of the world there. bankwell financial group at the nasdaq at the close. 0.6% higher. welcome to the "closing bell." i'm sara eisen >> i'm wilfred frost the heavyweight champion of the world broke the closing hammer i'm glad no one got hurt >> we'll be rejoined on the set in just a moment

>> first back-to-back gain for stocks in the month of may the dow closing up about 0.5%. up a little less than 120 points 118 points so still higher, but off session highs. within the last few seconds, did see some selling into the close. the high was up almost 200 the low was down almost 200. sharp turn in sentiment. the s&p up a little more than 0.5% the nasdaq a clear winner on the day. technology climbed back. communication services did well, too. utilities did not. the russell 2000 index of small caps lagged behind the other major indexes up about 0.3%. full team coverage of all your after the bell headlines. bertha coombs and bob pisani jon fortt standing by. kayla tausche with the latest on the auto tariff delay and leslie

picker awaiting first quarter filings. we lost a bit of steam coming into the close but big jump from where we opened. and that was the main factor >> opened below yesterday's low and managed to trade above yesterday's low for a little while. i don't know if we want to draw too many conclusions except back to about april 1st levels. still dialing back all of april's up side and trying to figure out if that was enough of a pullback given the trade frictions and economic data we saw today. i don't know that we were trading on that european trade news today i don't think it has anything to do with why google was up 4% or -- >> two things happened which stood out to me. i was sitting here at 10:00 a.m. when the market tone changed we were down sharply and what happened we got word they'll postpone the auto tariffs and got word they're talking about trade talks with beijing the market has been viewing

tariffs as not growth friendly and talks as friendly because it means that tariffs will not last long enough to hurt growth >> just a little quick gesture that says maybe it's safe to own some today but what do you want to own? i grab forward amazon. that's the difference in terms of the -- >> and it got dragged in when the negative trade headlines hit. let's go to bob pisani on the big reversal and what stood out to him >> tech stocks did well. the faang stocks did well. consumer staple names had a nice day. pepsi, proctor and gamble, kimberly-cla kimberly-clark i was more amazed of what was out of the rally the industrial names they're not rallying on hopes of any kind of trade talks. 3m, caterpillar. united technologies. black & deckar nothing going on there retailers, 52-week lows almost every day and companies like gap, for example, and nordstrom also china related no rally here at all finally just want to point out

lower rates. not helping the banks at all they didn't participate in the rally today. here's some of the big regional banks. guys, back to you. >> the nasdaq, the best performer of the major averages today. bertha coombs joins us for more on that. >> the nasdaq 100 now has pared off all but about 1% of its losses for the week. still off since that may 3rd plunge we saw with all the down draft last week nonetheless. big performances today big rebounds when it comes to alpha bet. deutsche bank raising its price target also facebook which has been one of the hard beaten up big cap tech stocks. apple holding up as well and also biotech they were under performers overall. a few names were standouts but the big thing to watch this afternoon, 5:00 eastern, it's what's called the big abstract dump it's likely to move the stocks

quite a bit over the next couple of days. >> we'll be watching we're still waiting cisco results this hour. we'll get instant analysis and reaction with that name ahead. first, quick comments from our postgame panel barry knapp is here. nancy, jeff degrath, paul donovan from ubs global wealth management good afternoon to you all. nancy, i'll start with you are you buying on these dips like we saw today which turned out to be a good trade >> we actually were in the market this morning. thanks for having me we are trying to round out our holdings in some of the stocks we got an opportunity to buy in the fourth quarter so some growth tech names, consumer discretionary we've been lightening up just a tad on some of the pharmaceuticals so we did add to johnson & johnson today. we were in yesterday and we were in today we're not aggressive buyers. we're nibbling but we've been nibbling away

>> there you go. you were wondering why google went up. >> nancy was -- >> another factor there, jeff, has been sliding yields. what do you make of that, and is it important for the equity markets? >> i absolutely do i think the two-year yield at a new cycle low. we've got tens, the inversion depending on how you want to measure it i think it's saying that the fed believe it or not. i know that sounds crazy at times. but that's the we're getting out of it. i think the yield curve is not going to be important today. probably not going to be important tomorrow by the time the end of the year rolls around, the yield curve will be important. >> paul donovan, are you surprised we saw a market rally with weaker fundamental economic data like retail sales both in the u.s., really, and in china. >> i think what we saw today around the trade side at least is the hope that the administration realizes that

continually taxing trade is going to have economic damage. and that's perhaps one of the reason yes they're postponing the tariffs on european autos. just that recognition of the potential damage that comes out of trade taxes is something which is disproportionately beneficial to equities taxes on trade, taxes on equities, it's as simple as that if you create an environment where there's a realization of the harm those taxes may cause, then perhaps it's understandable that markets got a bit of relief from that. >> we did also see german ten-year get the lows not seen since mid-2016 do you think that was backed up by the data we saw out of europe today, or was it just a sentiment shift because of trade? >> so i think the european data was largely as expected. we've been saying forever that there was temporary problems in germany weighing at the end of last year.

the river rhine ran out of water. you'll get a bounceback in the first quarter. don't think there were huge surprises in the data today. what we are perhaps a little more concerned about is to what extent does the uncertainty around trade, and it's not the taxes themselves it's the uncertainty around them to what extent does that damage economic growth in the second quarter? just as we were getting signs of global stabilization, we've added to uncertainty in the economy. and that's a little bit of a worry. >> guys, all sit tight, if you will, please we'll be back with the postgame analysis in a moment first, cisco numbers are out. jon fortt has them >> a beat on the top and bottom lines for cisco. revenue comes in at $13 billion versus 12.89 consensus earnings per share at 78 cents versus 77 expected and then there's the guide which was the real question given concerns about softness in enterprise spending and service provider we're not seeing it in this

guidance revenue guide for the fiscal q4 is for 4.5 to 6.5% revenue growth a lot of analysts were looking for 4 to 6 this is slightly higher at the midpoint eps guide is to 80 to 82 cents street looking for 81. that is spot on. the gross margin guide, 64 to 65% which looks high versus what the street was expecting the stock continuing to move higher at least initially after hours up now better than 3%, guys. >> jon, thank you. let's bring in eric from jmp securities for instant reaction. a lot of those metrics were beats. does the stock deserve to pop like this? >> yeah, i think it's pretty good news. the outlook in particular was certainly a question mark. we've seen a number of infrastructure players that have struggled here in the march and april time period. and this is a solid result

>> were there any disappointments here i'm looking at 3q operating margin, 27.1%. consense u.s. was looking for about 30%. >> i suspect there's some one-time elements in there i would be surprised if it fell below 30%. they've been consistent on that margin front so there's -- there might be something unusual in there that maybe needs to be adjusted >> in terms of breakdown, what are you looking for on the call? and in terms of the cloud, we've seen differentiation from rivals over the course of the quarter whether people are seeing strength or weakness >> so this is a company that's been going through a transition for quite a while. they've put together a several quarters in a row where they've been really shifting toward software are they able to sustain that migration towards more of a

software centric portfolio and revenue stream also a shift towards subscription if they've done that within the earnings that we just discussed, i think that's a pretty positive scenario for cisco >> it's done fairly well so far this year. it's one of the dow's biggest winners up morthe than 20% is it vulnerable amid all these trade tensions >> well, yeah. tariffs are a real issue for cisco. switching in particular is one of the items that got hit by -- you know, from the tariffs so that's added some volatility. but in general, this is a management team that kind of struggled, i think, when they took over a few years ago. and i'd say in the last year, the management team's kind of gelled, and their execution has shown some improvement their underlying fundamentals driving that price performance has been pretty good.

>> thanks for joining us tune in to "mad money" tonight at 6:00 p.m. the cisco ceo and cfo will be joining jim. jeff degrath, want to come to you and ask what you think about cisco. the chart looks interests. >> optimal entry for us two days ago. i think that's a really good powerful chart a lot of names in tech that are in a similar situation and i would say, you know, semiconductors as a group are probably exactly where they need to respond in order to keep that trend intact a couple things to watch there cisco doing what it should do given the conditions >> our full market panel will stick with us. up next, much more on the market rebound, whether stocks are looking attractive after the trade tantrum sell-off later twhaerkwhat the whites delay to auto tariffs means.

welcome back a news alert on immigration. eamon has the details. >> the white house says the president is going to announce a sweeping new immigration plan tomorrow here at the white house. the goal here is to give republicans one unified plan on

immigration that they can rally behind we'll see whether this becomes a starting point for conversations with democrats whose support will be needed on capitol hill if anything is to turn into law at the end of the process. this is the beginning of a process. and what the president wants to do here is switch legal immigration from a family based plan in which it really matters if you as a migrant already have family in the united states to a skilled and employment based plan in which it will matter what you can do for the u.s. economy. here are the points based systems that the white house is proposing here they'll take into account under this new proposal, the age of the applicant for u.s. citizenship. their english proficiency, an offer of employment or commitment to invest or create jobs in the u.s. their education and vocational certifications those points will be more important ultimately, they say, than whether or not you have family already in the country which is currently one of the

most important pieces of an application for citizenship. here's what the white house is saying more broadly about this proposal they are saying ultimately they want upward pressure on wages. they say that will be most beneficial for americans who are already here inside the -- it is going to be financed by new fees on existing trade on the border. they say those fees haven't been raised in a long time and they want to bring them up to what they call market rates for people doing trade across the board. they'll move away from the family based to the employ ear and skill-based and a senior administration official saying the goal of all of this is we want to change the composition of who is coming through that is, the united states, under president trump's plan, would move this applicant pool significantly upscale in terms of both employment and education. that's a big see change to american immigration but that's

what the president is going to unveil in his plan tomorrow. we'll wait and see whether any of this can become law down the line a senior administration official saying we're at stage one and stage one is simply having a proposal >> eamon, thank you. is this a big economic issue especially on a day we found out the birth rate fell to the lowest number of births in 2018. what's the key economic takeaway from the president's plan? >> the growth rate of our population slowed from 1.5% to 0.7% over the last years per capita growth is what increases people's standards of living you don't get it by having more people but you do need more people and larger gdp to service your existing debt which is we know at the government level is close to unsustainable so we clearly are going to need to boost our population growth if we're ever able to service that debt. >> the whole all-star postgame panel is here.

nancy, jeff degraph, paul donovan. true fact, paul donovan's note is the first thing i read when i wake up every morning, paul. today you sent it at 2:00 a.m. that's generally when you send it >> eastern time. >> for him it's not eastern time >> what's going to be in tomorrow's note? you are the one who shapes my views of the day >> of course i can't outrun research but we have to look at some of the data that's come out today. and the shift in tone on trade it's all trade all the time these days more fascinating news on brexit which is riveting the entire world as we move toward the parliamentary vote in june lots going on in the world the politicians, the trump twitter feed people's daily in china. always something to talk about >> today's moves, was it focused

on trade bounceback, the trade headlines or valuations again? like yesterday it was, overall, we've had enough of a pullback >> the market did get a little oversold and then it's responding to those conditions but i do think that to sara's point about this morning whenever the market detects trade as an issue can get out of the way for a while, the market can do what it was otherwise going to do. the muscle memory was to go back to the big growth stocks today and, you know, they made up for the fact the market is in the concussion protocol trying to find out if it's safe to move any faster right now it's trying to see if this is going to be something worth hanging on for a while >> you were talking about some of the charts. is it safe to go back bothe cyclical growthy areas of this market >> i think it is i think we're late cycle oversold condition the real key and mike is sitting

on it that we need breadth we need to see up days that are 3 to 1 breadth days. i don't know what it finished up today but it was impressive. you'll not impressive breadth with financials not doing well we need it to really set this tone until then we're just going to muddle around >> nancy, an important week for retail macy's earnings this morning more to come during the week how are you playing those sectors? >> we've been adding to names like home depot and walmart. we're out of the big box retailers. we finally said uncle on nordstrom awhile back. and we've tried to play with consumer discretionary space we try to build our portfolio to overweight cyclicals and then overweight some of the more consumer staply names like coke and walmart. we've added to disney and tiffany in this period so we're betting the consumer is going to continue to spend, and

that cyclicals will get a bounce when we get resurging growth in the second half of the year. >> so we'll see what we get from walmart tomorrow thank you all for joining us up next -- a delay in auto tariffs fueling the automaker stocks i feel the entire market today we'll decide whether that will help drive a surge in sales straight ahead and later, why fast food stocks have been divinfaelerg st gains for investors as they significantly outperform the rest of the industry experience the style, craftsmanship, and technology

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stocks rebounding on the white house's plan to delay auto tariffs. phil lebeau joins use excuse me. kayla tausche joins us with more >> it hasn't been made official just yet but the white house faces a deadline on saturday to figure out its next steps on these auto tariffs i've learned from four sources that the plan as of right now is for the white house to exercise a delay that could be up to six months as it continues negotiate with all the countries that export cars to the u.s the u.s. is trying to negotiate trade deals with europe, canada, mexico and japan and all of these countries send a lot of cars to the united states and have been pushing for these tariffs to not go into effect so this was certainly welcome news to them as well as republicans here on capitol hill who have also suggested that auto tariffs would be detrimental to the economy

we'll see if we get an announcement on that in the coming days or whether the president decides to change his mind >> thank you and sorry about that autos/phil let's dig into what this will mean with jamie albertine at mile one. jamie, what would it have meant if he did go through with the tariffs and still might just now at a delay >> thanks for having me. i think from a very high level, we're late innings in the auto cycle. a lot of pressure on new vehicle sales already, granted retail sales are holding up very well in 2019. incremental sort of price hike or pass-through, i think, would be quite detrimental on the new vehicle buyer. the good news is there's a lot of demand for late model used vehicles other places for that consumer to go. and financing by and large is still widely available and credit still holding in very well for the auto industry there's some offsets there, but

this is definitely good news to hear there's a delay for the time being in what would be a price hike for new vehicles. >> are you saying overall volumes of auto sales wouldn't, in fact, be hit by these tariffs if they came into place? it would just be a shift from perhaps buying new cars to buying reused cars >> i think if you look in aggregate there's about 40 million vehicle transactions annually 16.5% or so of those are new and the balance used so there has been a short of shift between those two buckets. at the end of the day, you have to remember that roughly 90% of consumers are looking for some form of financing. that does dilute the absolute dollar impact on a new vehicle i don't want to say that it's not going to be a negative clearly if there's a 25% hike or anything even remotely close to that, that would be a negative for the actual sale. but there was some offsets when you look broadly at the value we

provide across new and used vehicles >> jamie, bigger picture how are manufacturers, auto manufacturers dealing right now with right now with a very uncertain supply chain we don't have tit approved yet. we're seeing asia being impacted as far as new tariff levels. how do you think they're dealing with it? is it a wait and see or is it actively shifting things around? >> i think right now it's sort of a wait and see mode i think the hope is that ultimately this could lead to some leveling of the playing field. clearly there's going to be some disruption as we progress to that leveling, so to speak but for now, really haven't seen a marked shift quite frankly with respect to components where they're sourced, what components are used but make no mistake. if you look at prioritizing who are the winners and who might be some of the losers in the situation, clearly domestic

manufacturers are better positioned those manufacturers that have transplanted some of their production to north america sort of will be less bad, but, clearly, ford and gm stand to gain from broader losses from the global manufacturing community. >> jamie, thanks for joining us. great to see you >> great to see you as well. appmeanwhile, the s13 filins out. >> appaloosa purchased an additional 16.6 million shares of pg&e to hold about $4 million worth of the embattled utility company at the end of the first quarter. appaloosa nearly tripled its stake in allergan, but that's as of march 31st. several months later, they split the chairman and ceo roles a slight increase in caesars shares and paring back in energy

transfer also boosted his stake in facebook by about 40% to hold 2 million shares and upped his stake in micron to hold a little more than 3 million shares starboard's filing was also revealed a little while ago showing new positions in mgm and zayo all these positions are as of the end of march and may have shifted since then guys >> leslie, thank you time for a cnbc news update with sue herera. >> hello, everyone here's what's happening at this hour the state department ordering the evacuation of nonessential staff from the u.s. embassy in iraq this as tensions increase between washington and tehran. democrats are warning president trump against going to war against iran >> we should not provoke a conflict i think that's what's happening. i think we ought to find a way to sit down and have a decent conversation i think that's possible.

i happen to know the foreign minister of iran i know him quite well. he's a very reasonable man >> north carolina's attorney general has filed a lawsuit against the e-cigarettemaker juul he's asking a court to limit what flavors it can sell and ensure under age teens cannot buy it juul says it's also concerned about youth vaping and is already working to reduce the practice and listen up, parents you may soon be able to use your phone to see if your child has an ear infection researchers at the university of washington have created an app that can detect if there is fluid behind the eardrum the screeningat home could hel parents decide if they need to take their child to the doctors. you're up to date. that's the news update sara, i've been there. i'm sure you have, too, right? >> yes, no, it's great because you take them to the doctor and then they get more exposed >> exactly so do it at home is better

thank you. >> sue, thanks very much jpmorgan's media analyst will tell us which stocks are best positioned for success as e durythinst focuses on the future of streaming. and later, what's on tap for tomorrow that could move the markets. kevin, meet your father.

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berkshire hathaway's s13 filing is out. >> berkshire hathaway disclosing the size of its stake in amazon. 483,000 shares of amazon worth about $900 million at today's pri prices berkshire hathaway had been buying shares during the quarter but it was another one of the people within berkshire hathaway, not warren buffett himself, that had been buying. that's according to an interview buffett did with becky quick a couple weeks ago so it's one of the other investment managers in the office that has been purchasing amazon stock now we're continuing to dig into this filing and we'll let you know what else we learned from berkshire hathaway's first quarter, guys. >> leslie, thanks for that

legacy media companies like disney, cbs and fox wrapping up their up-front presentations this week. annual events where they shop to secure advertising dollars for the new year ahead >> joining us is alexia, jpmorgan media analyst from the jpmorgan global media conference how would you characterize the state right now of those advertising dollars, whether they are growing or not, for the broadcast industry >> first of all, thanks for having me. i think it's in a good state we've seen scatter pricing so strong versus the up-front pricing. and even scatter pricing is up strong year over year. so i think that advertisers clearly still like, you know, the broadcast and the cable tv in general the supply is dwindling, obviously, with declining ratings. you're chasing fewer dollars, fewer viewers. but pricing continues to go up i think it will be another

successful up front this season. >> do we have a handle alexia, on how much the streamers on average are paying to produce per hour of content versus the broadcasters, and is there a trend to point to within that kind of information? >> in terms of investing for content on the streaming platforms versus the traditional platforms, i don't think the dollar spend are that much different. depends on the genre of content. obviously, certain type of programming, comedy versus drama will be a different cost point in terms of producing it for streamers, producing it for tv is not that different. what's different for streamers is i think you have to produce that much more to find the hit because the audience is so fragmented in general and so many streaming products. there's over 100 direct to consumer products out right now domestically so it's harder to find the audience and when you go to broadcast tv, less so to cable, but broadcast tv, i think you should have a

bigger hit rate because you get a bigger audience from the get-go the cost per hour, per half hour is not that different but you have to spend that much more in order to get enough audience where a show can become a hit on a streaming platform >> what's your sense of where we are within the industry consolidation story? obviously, viacom/cbs is a known likely pairing then after disney/fox it seems it redefined what scale is at this point what might you expect here in terms of future deals? >> you definitely have the mammoths, right? you have the disney, the fox -- the old fox, the new fox is a bit smaller. comcast. some of the companies that are the big companies and then everybody else and then some of the niche companies. and i think there's this perception that the everybody else still needs to find a niche strategy which a lot of them are doing. we heard a lot about that at the conference this year otherwise they have to probably keep combining to gain scale and be more competitive.

so i would say, yes, you're right. you mentioned cbs viacom that's a more obvious one that is, in my opinion, more when, not if and i think the other is kind of to be determined we may take a little pause as some of these other companies find their strategies, for example. the new fox is all going in all news and sports which is they know their linear platform they are going and investing what's working in linear and they'll see how that works it's going to work out very well for them other companies we've heard from at this conference, for example, discovery, they are kind of finding niches in the market, and they want to be the go-to place for that niche whether it's golf, whether it's reality programming, whether it's food. they want to be the destination place. not only domestically but globally for that niche. so we'll see if that works and if not, i think you will see further consolidation for them to gain scale to be more competitive with some of the bigger players i mentioned >> it strikes me how different the stage is going to look this time from where we were last

year given all the consolidation with disney being bigger and fox being smaller and no les moonves at cbs who is best positioned when it comes to capturing the ad dollars? >> the ad dollars or the positioning in the industry? i think disney is one of the -- disney is so well positioned they have so much content. an incredible marketing arm. they have scale. frankly, i think all their businesses, not just the disney plus or the streaming or media networks i think all their businesses are doing really, really well. so much attention has been on disney plus which looks phenomenal when we got to preview the content, everyone was blown away by how incredible the quality is and the amount as well and you got much more pumped up for that release but i think people -- that somewhat overshadowed their business businesses doing so well look at the studio what an incredible year we're having and that's following a great year last year look at the parks having their biggest expansion ahead of us

with the opening of stars wars land first in disney land and then in orlando later this summer it seems to be a great time to be a disney investor >> alexia, thanks for joining us >> thanks for having me. up next, a restaant ipurtrle play we're talking fast food, fake meat and a brewing battle in the coffee space

welcome become to the "closing bell.

the restaurant space heating up. this afternoon we have a trio of food stories on the table. first up, mike santoli is looking at how fast food chains stack up to popular casual restaurant names >> stark performance differential over the last year with the advantage going to fast food chains, quick service restaurants. mcdonald's up 22%. qsr, that'f burger king and oths and chipolte and then suffering relatively is we have brinker, cheesecake factory, blooming brands they've not necessarily held as fast seems consumer preference oriented, technology oriented, essentially sitting down to a casual dining meal i will mention an exception to this role is darden restaurants, the parent of olive garden some 15% of their sales in recent quarters have been coming from take-away and catering and parties and things like that delivery as well not strictly sit-down meals.

>> mike, thank you restaurant brands hosted its first ever investor day in new york today kate rogers joins us with more what was the big takeaway there. >> the company gave us a look at its expansion plans across its three brands which are burger king, popeye's and tim horton's. it will grow to more than 40,000 locations. i got a chance to sit down with them this morning and asked what trade tensions in china mean for the company which now has over 1,000 burger king locations there and just a handful of tim horton's he said they're really playing the long game. >> we have a long-term view on china. it's an amazing market, growing tremendously in all segments of the quick service business in the burger business, in the chicken space as well as in the coffee space so we think it's a place where we're going to be there for decades and decades to come. our focus is long term with each of our brands and each of our partners that are building brands out there with tim

horton's as well as burger king. >> the company also announced it's launching a test with beyond meat for breakfast sandwiches at tim hortons in canada this comes after the expansion of the impossible whopper to four u.s. cities at burger king. so interesting they're trying to diversify with the different vendors. demand has been a big story. the biggest player of all, mcdonald's, may be looking at this they haven't fully entered that market if they get in, that's going to be more demand for beyond meat and impossible >> whether it's beyond or impossible, it seems there's no reason not to at least try it in these restaurants because it gives them diversification and the fact they can offer it >> consumer preferences are absolutely changing. and they are trying to avoid the no vote. no, we can't go to burger king because they don't have whatever i want we saw chip oelolte do this with whole 30 and keto.

you see them getting ahead of the trend. chinese coffee start-up luckin coffee is set to list on the nasdaq on friday some americans still never heard of the company eunice yoon has more on that for us >> reporter: starbucks dominates the coffee industry in china but another chain hopes to challenge that it's called luckin notice anything? there is no cashier here luckin says that young chinese prefer to pay for everything on their mobile phone so you cannot use cash in any of the stores. instead, you use your mobile phone to scan the qr code and then place your order on the app. at a starbucks for a medium size latte you pay almost $5. with the discounts and coupons ot luckin, the same size latte will cost you as little as 60 cents. they offer americano with orange soda, fruit tea with cream cheese, which is a really popular trend these days and then there's the coffee,

which is not badconsidering th price. >> eunice yoon, thank you. breaking news on huawei. eamon javers has the details >> the president signing an executive order here the press secretary putting out a statement. this focussing on communications inf infrastructu infrastructure let me read you some of the text of what the statement from the press secretary saying that the president signed the executive order entitled securing the information and communications technology and services supply chain. this is part, the white house says, of the president's commitment to protecting information and coms technology. they're saying the president here is declaring a state of emergency, a national emergency with respect to the threats against information and communications technology and services in the united states delegating authority to the secretary of commerce to prohibit transactions posing an unacceptable risk to the national security of the united states or the security and safety of united states persons. so clearly that is an executive

order that will be looked at, scanned in china and other foreign capitals around the world as foreign companies figure out what it means for them in terms of a national emergency in the united states to protect american telecommunications infrastructure and privacy also implications for american technology companies who are competing against some of those entities >> and that's just quickly important to note. that this is, while expecting to pave the way for a possible ban on huawei, it doesn't name any companies. >> not in this statement from the press secretary, no. and that's as you would expect it and if it was designed to target somebody in particular, they wouldn't necessarily come right out and say that in the statement. up next on the show -- disrupting the fashion game. 'lor0 nveiling our disrupt 5 li taywel tell you about one on service on the forefront of innovation and changing the way we buy clothes

>> welcome back. we have more details on berkshire's filing let's get back to leslie at hq >> hi there. berkshire hathaway boosting its share by nearly 19% to hold $6 billion worth of stock berkshire also upped its stake in redhat to hold just -- the stake in charter by a little more than a million shares to hold 5.7 million the firm also cut philip's 66 position in half to hold half a billion shares of that note, these positions are as of the end of march and may have changed in the six weeks since guys >> leslie, thank you.

cnbc's disruptor 50 list is out. the companies that are changing the world. coming in at number five, rent the runway our julia boorstin is here with details. hi, julia. >> right now i am in run the runway's distribution and fulfillment center and this is the loading dock and the noise you hear behind me, those machines are their proprietary drycleaning machines and this is where the company processes and ships out all of its accessories and clothing to its 11 million plus members this is actually the nation's largest drycleaning facility and the company's getting ready to open another bigger one in texas. that one will be designed to handle even more categories as it considers moving into new areas such as potentially ski and other seasonalwear, even maybe, she didn't say for sure, but even potentially menswear. >> in the warehouse we have to use data because we're getting back tens of thousands, hundreds of thousands of items in the

morning from customers and we can't process them all in a 12-hour period so we have to use data and analytics to prioritize which are the items that we need to process just in time and which items have a longer lead time associated with them >> now, asa trade war, klieman s us she is really scared it could drive up her wholesale plus partners manufactured in and sourced from china >> let's remember that clothing is the third largest consumer-facing industry on earth. it's a $2 trillion global industry and if most of the manufacturing is happening in asia and a lot of it in china there are going to be massive ripple effects to the u.s. economy. >> hyman says that the response to uber's ipo and the public market does not scare her because unlike uber she is very much focused on profitability and they have so many assets which we have seen here in this

giant facility you can find much more in our interview with jen hyman on cnbc/disruptors. guys, back over to you >> certainly has changed the way i dress. i've ordered from it. >> mike and i, too >> they are expanding into men >> just the dresses, as well. >> check out the disruptor list on cnbc.com. up ext, biggest moves after hours. stick with us. closing bell will be right back. in a multitude of countries, where we get to know the people that drive a company's growth and gain new perspectives. that's why we go beyond the numbers. cyour but as you get older,hing. it naturally begins to change, and gain new perspectives. thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered...

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we've got a news alert on pg&e aditi roy has the details. >> pg&e shares are down 5% upon news that cal fire essentially the state has determined that it was pg&e's electrical lines that caused the camp fire back in 2018 you may remember a few months back, back in january cal fire determined that pg&e was not responsible for the tubbs fire which was in 2017. nonetheless, pg&e does face it says about $30 billion worth of liability because of wildfires this latest decision by cal fire about the camp fire is not

necessarily seen as a surprise most people have assumed that they be held liable and it is official that cal fire has determined that pg&e is responsible for the camp fire. back to you. >> aditi, thanks very much for that >> let's check on the headlines making news after hours and issued stronger than expected revenue guidance those shares moving higher after hours to the tune of about 2%, and i'll have that for you in just a moment. 2.7% shares of online luxury retailer far-fetched after posting a larger than expected first-quarter loss and that's down close to 3% mike, we'll continue to watch any trade headlines and we're behind asia and europe and not too bad down about a percent >> the market held above the recent lows and that's probably in the positive and the volatility index receded to 16 and it's almost threat edge to get to a somewhat normal reading

and the market is a tempittempt that this is a storm and it's in the process of passing for now >> walmart earnings is a market mover. definitely a walmart mover and definitely about what they say in the competitive landscape is always worth listening to. >> it's e-commerce. >> that does it for today's show. >> have a good evening "fast money" begins right now. "fast money" starts right now overlooking times square check out shares of cisco. that stock soaring after reporting earnings moments ago the conference call is going on right now and we'll bring you the details. semi showing signs of life and exiting correction territory after getting taken by trade war tensions and is the warning over for the group? a top analyst explains and we start off with the bond yield breakdown and the ten-year near its lowest levels of 2019 breaking below 2.4% after weak

economic