companies offer. the highest rates we have seen in 25 years. and that is not all. because according to new data from the new york fed credit card delinquency rates are also rising with young people between 18 and 29 being the most impacted all of those who might be reflected in the stock prices of companies like visa, mastercard, and american express all up 25% or more year to date outperforming the broader market. >> thanks rahel. that does it for frch prch >> "closing bell" starts now earnings season back in focus. >> quarterly earnings beats. people are starting to look at these numbers again and saying you know, what we're going back and we're looking at the last quarter, it sure looks good. >> i just think this walmart number is just spectacular >> and ahead we'll get results from nvidia, baidu, and pinterest's first report since going public it's the most important hour of the trading day. "closing bell" starts right now.

good afternoon welcome to "the closing bell." i'm wilfred frost. >> and i'm sara sizen. let's check on markets in the final hour of trade. not too far off from session highs. going strong for a third day in a row. dow jones industrial average up about .8 of 1% 226 points higher. s&p good for a gain of 1%. same for the nasdaq. best three-day win streak for stocks in several months >> s&p flat for the week as a whole. we've got a big show including our "closing bell" news maker verizon ceo hans vesterberg will weigh in on huawei, 5g and more. it's our week-long series featuring five top fund managers and we've got david ellison from hennessey. three stocks he is watching into the close coming up. first up, though, president trump laying out his immigration plan let's go to eamon javers at the white house with what we've learned so far >> the president just wrapped a speech in the rose garden a few

moments ago in which he laid out his plan for legal immigration into this country, saying that we need the move, the pull of immigration applicants up the income and education chain to accept people who score points on an immigration test based on their achievements in english proficiency, also their achievements in career goals and the possibility of having a job offer here in the country. the idea, he says, is he doesn't want immigrangrants coming in a low end of the economic spectrum competing with americans who are already at the low end of the economic spectrum and displacing them from jobs the president said this is a proposal he hopes will be embraced by democrats. there's not any indication really on capitol hill that that's the case. and clearly this is a proposal that's going to be drawn into the election season in 2020 as democrats and republicans square off on this issue. the white house aides acknowledge this is not likely to become law anytime soon but they say they wanted to have a proposal for the president to point to a positive reform proposal that the president can

suggest he'd enact if democrats lose the house in 2020 and republicans keep the white house. this is all about positioning the party ahead of 2020 and the president wrapped up the speech in the rose garden a few moments ago. >> eamon, is this as important a political issue as illegal immigration? i mean, i would argue, having gone through the process, somehow slipping through the net i guess, that coming in is pretty hard when you're coming in legally >> to clarify, you did it legally. >> i did do it legally of course. my point being the hurdle is pretty high. you've got to go through quite a long process of interviews you've got highlight the job you're coming in to get, the taxes you're going to pair, et cetera they're trying toes clait that further rather than try to focus on what has been the political point winner of tackling illegal immigration. >> right and under this proposal the hurdle's going to get even higher you're going to be talking about having to take a citizenship exam that they say will be sort of similar to an a.p. american history test and you're going to

have to study some of the founding documents of the united states, you're going to have to take an online college-level course in order to brush up on that the bar's going to get higher under this proposal. but you're right look, the economics of this are what this is about and the reason you have immigrants coming into the country at the low levels is because there's jobs and opportunity for them here in this country the employers who employ them need that workforce, whether it's service or agricultural or other industries there's opportunity here for people and this plan the president's talking about doesn't do anything to change that economic magnet i asked some white house officials about this in the roosevelt room yesterday when they were briefing us on it and the plan is just silent on what happens to employers who are bringing in people who don't necessarily have citizenship in order to fill all those jobs the economic engine and magnet that's here is not really going to be affected by this plan at all. >> eamon javers, thank you the market and the economy with our guest host for the hour stephanie link, cnbc krishtd

from tiaa and nuveen company also with us is michelle meyer head of u.s. economics at bank of america merrill lynch michelle, just on the economy on the president's immigration plan, clearly labor shortages are a huge itch right now. is this a way to get at that problem? >> well, i think the conversation touched on something very important, which is the fact that job openings are really high and what we're hearing from companies across the board is that they can't find labor and they're looking for people to fill those positions. to the extent that immigration policy reduces the supply of labor that could be problematic for the economy. it makes it harder for companies to produce it puts continued upward pressure on wages. it also could be very challenging for profit margins i think what we need to do is to think carefully about how we want the labor force to evolve and ultimately we think about trend growth, a stronger increase in labor sflie, a

faster increase in labor force participation is only that much better for trend growth in the economy. >> michelle, you and i were talking yesterday about that slightly weaker than expected retail sales growth. the jobless claims and housing stocks today amply offset. due to the disappointment yesterday? >> yeah. that was a nice positive surprise some housing starts, some philadelphia fed manufacturing surv survey also the strong empire state manufacturing survey and initial jobless claims coming down and i think that's generally what we're seeing in the data is that the economy is continuing to grow. the recovery is ongoing. retail sales were a little bit soft but it was after a very strong number in march when we put all the pieces in together we're tracking somewhere in the low 2% pace for gdp growth which is pretty decent at this point in the cycle. >> so we're getting okay economic growth, stephanie what are the markets saying about those fears of the

u.s.-china trade war nothing's been resolved but things certainly seem a lot calmer on the market >> things are a lot calmer but i think it has to do with positioning. on monday people were so nervous because we had so many questions about trade there, were so many unanswered questions right? i heard targets of like 2800, 2500 someone was going to bite market at 2310. i mean, it was such a negative sentiment on monday, and i think you have caution as a result and i think you have some positioning as a result. people sold off positions. they took profits. because we have had nice gains from the december lows then things aren't as bad. even on trade, okay, huawei, this could be a disaster if it really escalates i don't know if it will. at the same time you have the auto tariffs getting delayed maybe some sort of progress with mexico and canada. trade doesn't even look that bad. and then the real kicker to me is you had great earnings from two bellwethers, walmart and cisco. we were really bracing for cisco lower numbers in a big way and they did nothing but say good things i think things not so bad.

right? >> as you said, stephanie, the other big story to focus on for markets is the huawei story. let's get back out to eamon at the white house for the latest on how that's all unfolding. eamon? >> this is an executive order that was signed by the president yesterday the white house tells us here's what the executive order would do ultimately it's declaring a national emergency here with respect to threats against information and communication technology what the white house says is it delegates authority to the commerce secretary to prohibit transactions posing an unacceptable risk to u.s. national security. now, the executive order is silent on the issue of huawei. doesn't mention any specific companies. but separately yesterday later in the day the commerce department did take specific action against huawei itself that would impact its ability to do business here and require certain additional licensing hurdles and regulatory approvals, that sort of thing. huawei reacted to that last night, putting out a statement saying "restricting huawei from doing business in the u.s. will not make the u.s. more secure or

stronger instead, this will only serve to limit the u.s. to inferior yet more expensive alternatives, leaving the u.s. lagging behind in 5g deployment and eventually harming the interests of u.s. companies and consumers. now, guys, white house officials say it is pure coincidence that this action against huawei happened to fall in the week after the trade negotiations with the chinese government broke down in a stalemate. they say this was on an unrelated track and it was just a timing issue to get the legal work done, et cetera but i can guarantee you that there are folks in beijing who don't see it that way and will see these two things as very much linked as the carrot and the stick in the ongoing trade war, guys. >> absolutely. eamon, thank you >> you bet verizon ceo hans vesterberg spoke with us first on cnbc. here's what he had to say about whether or not the huawei executive order could impact verizon. >> we are using equipment vendors that are not chinese we are using chip manufacturers that are not chinese and handset

manufacturers that are not chinese. and it seems that we are first in the world so it doesn't impact us. we have great plans for 5g and we're extremely excited. today we have the samsung phone coming out to the market which is an amazing phone right away gained 1.4 gig abits per second on the phone today when we launched in chicago and minneapolis. we feel good about the assets we have and 5g and building the best network and the best experience for our customers >> also said, stephanie, that it wouldn't impact other american companies' race to build out a 5g infrastructure. though it is having an impact on some of the chip stocks in today's session. >> because these are the chip stocks that have held in really well qualcomm and xilinx and texas instruments. a lot of companies skyworks solutions has 10% exposure with huawei alone i think you have to kind of step back is this a full out ban like zte? i think if that's the case huawei might go out of business

because this is not enough suppliers around the world to make up for all the companies that the u.s. companies supply into them. there's that if it's less than a ban or if it's just some restrictions we'll have to see. but i think by far the risk is if 5g doesn't get deployed or if it's just pushed out the entire sector including verizon is going to be impacted and that's why you see these stocks down so much today. >> michelle, eamon just reporting there the white house says this is purely coincidence the timing of this, it's got nothing to do with the escalating trade war of course other people prettying as a sign that this tougher stance with china is continuing and elevating. what's bank of america's latest estimation as to the impact on gdp that an escalated trade war can have >> it really depends on the timeline from here our baseline assumption we're going to continue to have negotiations up until the end of june we think the g20 summit is really important in terms of

potentially coming together with some sort of compromise. the baseline assumption where we're making progress to a deal and we get to some sort of resolution by the end of june. it's not going to have a big impact on the economy. maybe a tenth, maybe slightly more than that in gdp growth but if it escalates and if the tariffs actually are expanded to all of chinese imports, that's a whole other ball game because that's impacting the end consumer in a much more direct way and that can be a lot more damaging to confidence and the markets. >> and quickly, michelle, are we going to see the latest round of tariff hikes, the one that went into place last week and the $200 billion worth of imports in this country, are we going to see that in the inflation numbers in the u.s.? >> we will see it. there's a lit of a lag before it kicks in it's about a two-week period before it starts to show up. and it's showing up in the intermediate goods some of that will be passed on to the consumer in things like household furnishings, bigger ticket items where it's already showing up.

yes, 10% to 25%, if it's the same you will start to see that in the core goods part of the inflation basket modestly it's not dramatic. but it will show up modestly >> michelle, good to see you as always thanks very much for joining us. stephanie link is on and will be with us all hour coming up from tech to retail to financials we're hitting today's rally from all angles we'll teak a deep dive into what is moving those sectors ahead. >> and here is what else is on tap. >> still ahead much more from our big interview with viernds's ceo. >> next year basically 3/4 of all the phones we're launching will have 5g in them the ecosystem is ramping up extremely fast plus, pinterest has tacked on major gains since its ipo will its first earnings report live up to the hype? and a starbucks rival prepares to go public. we'll fill you in on the brewing coffee battle. "closing bell" is back right after this break orlando isn't just the theme park capital of the world,

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welcome back let's check what's behind the market moves rick santelli at the cme in chicago. bob, let's start with you.

>> homes for trade advancements, trade talk advancements, and i want to show you the s&p futures. we moved 70 points in the last 24 hours that's an amazing move 600 dow points after being down on monday 600 points expansion to new highs nearly 200 at the new york stock exchange a lot of the consumer staples names. we've got hershey, pepsi, smuckers all sitting at 52-week highs. general mills as well on top of that some other big cap names, new highs, starbucks, american express. costco and mcdonald's. guys, back to you. >> thank you, bob. let's send it uptown now to the nasdaq and bertha coombs bertha >> scara, the nasdaq composites have wiped out the losses for the week today led by cisco, the networking giant seeing its best one-day gain in four years ceo chuck robinson the company has anticipated those latest hikes in china tariffs but the next wave of import duties could hurt u.s. industry as a whole. new sanctions on huawei has chip makers lower again today

co r6789 vo skyworks, qualcomm, micron consumer names as bob mentioned not feeling that pain. >> let's send it over to rick at the cme for today's bond report. rick >> 10-year neelds up two basis points and two-year's up about four a little bit of a flattening bias but in the end look at a three-year chart of 10 here's what you need to know 2.37's the low close for the year and if we take that out we drop back to may of -- or excuse me, 2017 but the thing is we haven't closed there although intraday we violated it the dollar index having a huge day. a third of a cent away from two-year highs which would take you back to may of 2017. and finally, it's all about china. there's a mid february chart of the dollar versus the yuan you notice the flat area in the middle of the chart. that's the month of march. and that's the information we

garnered yesterday where they sold over 20 billion u.s. treasuries it certainly didn't have an impact on the foreign exchange market i don't think there was malicious intent i think we're selling like japan and europe but we never know. and the market may be nervous but it's not affecting rates back to you, sara. >> news alert on boeing. phil lebeau joins us on the phone with the details phil, what can you tell us >> take a look at shares of boeing moving higher after the company just announced that it has completed development of the updated software for the 737 max. that includes simulator testing and the engineering flight test -- or test flights that have been done that brings up the question what remains to be done before the max could be recertified they still need to do the final recertification test flight. that's likely to happen sometime in the next couple weeks and then after that they formally file for certification, or recertification, not only with the faa but also regulators

around the world just a quick point here. they have done more than 207 flights, or actually 207 flights totaling 360 hours with the new updated mcas software. the company says it is now working with regulators answering their questions giving them more details as they continue to work on any questions the regulators have. but again, they have updated this software. it has been completed. now the question becomes does it meet the approval of regulators? that'll happen over the next several weeks. guys, back to you. >> phil lebeau, thank you. stephanie, are you relieved to hear >> it's been a bumpy ride, no pun intended i think that this is obviously a first step what i hear is on may 23rd boeing is going to meet with all of the regulators. not only the faa but all around the world. so that they can actually all get on the same page on next steps. so they don't want to surprise any regulator. when they're ready to go

that the other regulators around world saying no, we want to see this kind of thing this is very good news i've said for a while the valuations reflectioning a lot of bad news. i think it's a fabulous management team. it's a great cash flow story not this year but next year it will recover i think they handled it pretty well for sure. i know the ceo has been very visible. cfo as well. they've been visiting with institutional clients across the board for a while. trying to focus on what's important to them. safety is important to them. and i just feel like with a backlog in the industry of six to seven years that is very powerful in a duopoly kind of environment. it's just a matter of time for them to fix this and get the plane back in the area >> the line in the statement we are playing for the final certification flight is probably what leads to the jump in the share prices that is a slightly more positive tone still a way to go. but that is a more positive tone than we've had of late, suggesting they're getting closer >> they've been very cautious.

>> gains 30 points along with other big winners today, cisco and walmart. let's talk more about today's rally. we are joined by chief investment officer of global credit at pimco. stuart kaiser, macro equities and derivatives strategist at ubs. and our own guest host stephanie link still with us. mark, how have you guys been reading the data right now do you think it's matched up with what the markets are telling us for stocks and bonds? >> we see the u.s. economy slowing from 3% last year to about 2, 2 1/2 this year the global economy clearly is flowing. china has put in a lot of stimulus over the last six months the big uncertainty is really trade and what's going to happen with the u.s.-china relationship the fed has clearly pivoted in a major way, as as have other central banks toward a more dovish policy, and i think that's supporting markets. but longer-term we're concerned. we think the valuations are rich on most assets and we think this ongoing conflict between the u.s. and

china's going to continue. so overall we would be reducing risk here. we're quite cautious on markets. >> i was just looking at the vix at 15 1/2. coming significantly back down from its spike on monday last week what's your take on that and does that add good value to it to get some protection >> yeah, to your point it's been a really difficult time for the markets. the catalysts related to trade is hugely impactful. uncertain timing and uncertain magnitude and no one knows which direction it is it's going to work out volatility markets have been very responsive to trade hlds. in our view the vix was a couple points too high last week. the drop we've seen puts it about in line with their value both relative to other asset classes and also relative to the movements we've seen in the s&p overt last couple weeks. >> mark, within your sort of warning of caution on risk assets where do you guys think is a safe bet right now?

>> there's three areas we still like we still like the consumer one thing with the fed's pivot we think rates are going to be lower for longer particularly in a world where you've got rising uncertainty, slow growth and inflation. the consumer should be supported. we like health care, telecom and reits. secondly we like housing we continue to like non-agency mortgages, building materials. and we think that housing will be more mid-cycle versus autos which are later cycle. and the third area is really mid-stream energy. there is this huge energy revolution going on. it's been going on for ten years. the u.s. is disproportionately winning. we're among the lowest cost producers in the world of lng and the most secure provider the u.s. should win in terms of energy and those are the three areas we're most constructive on now >> do you feel like the momentum is there now to put money back to work more meaningfully? back above 2800. all sectors higher for the week.

>> it's been a year of rotation. so it depends on what you're buying at this point this market today feels very defensive to me. and also because you see staples and utilities doing well what you're really seeing is growth again what that tells me is people are recalibrating what they expect overall the economy to be. slower growth which means you want growth of your stocks, secular growing stocks all the fangs are doing well i'm involved in all of those but i have a cyclical bias because think that's where the value is but we need to get through trade to city the stocks do better >> you see the second half outlook improving. >> i agree with everything stephanie said our view coming into q2 is you're going to get a reacceleration in growth the last four or five months you look at the ism it's been up, down, up down each month to stephanie's point it makes it hard to allocate it goes down do you want to be

in defensives. our view in the second half is q2 is an improvement and then you stay at trend or above trend growth for the rest of the year unless trade of course knocks us all to that horse. otherwise you do want to be reasonably cyclical going into the second half with the caveat we are late cycle and we have a lost underlying trade risk that value growthy kind of combo makes it a little more defensive. and that's where our clients are looking at the market. >> thank you >> thank you >> still ahead retail after walmart's earnings topped expectations we'll break down towhat it means for the rest of the consumer landscape 37. and after the break and after the break financials ♪ seeing strong gains today after slumping earlier in the week and also our fund manager shares three ways to play the sector. next

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welcome back stocks are rallying for the third straight day today, leaving many investors wondering whether the volatility from early in the week is behind us joining us for the latest installment of our all-star fund manager series david ellison chief investment officer at hennessey funds. david, thanks very much for joining us first question is do you think banks in general are too correlated with the moves in the yield curve? >> well, certainly that's when we've seen for a number of years now. it's been frustrating as a bank investor that's why i've generally moved

away tr those names, especially in my fund, which i think has helped the performance of it certainly. from an attribution point of view certainly the banks unfortunately, the traditional banks have become as you said sensitive to the yield curve, sensitive to credit trends sensitive to regulatory stuff that may happen. and because of the fundamentals there's not much to get better so there's nothing to really own them on except these macro trends so as a p.m. you don't have much value there because i know as much as anybody else you know more than i do about what's going to happen to the yield curve. why do i add any value >> i hope that's not the case for your sake, david let's get to your picks outside of that. visa is one of them. >> again, visa represents a company people are invested in people are investing in visa

they're trading in jpmorgan. the next one is bankamerica. i picked bankamerica because i think that's the best one in terms of being able to monetize this large customer base that they have. i'm not saying jpmorgan is awful or citicorp's awful, but we have to pick something. and the last one is moody's, which is -- again, people are investing in moody's because of the services they provide and not worried about these macro events i'm worried about the internal nuts and bolts of the company. i think from that point of view people are investing and not trading them that's what i think has helped my performance in the fund greatly the last three years >> david ellison, thank you very much stephanie, what do you think about those picks? and the overall state of financials right now >> i think you have to take a barbell approach in financials david's right. it's been very hard to own them and make a lot of money. you can trade them tactically, make some money in them for sure but i think really you have to think about special situations

within the banks like a cost-cutting story b of a or capital markets morgan stanley but on the flip side he likes visa i own mastercard the one name that actually has held up remarkably well is american express that stock has done quite well still trading at 14 times earnings double-digit growth. market share winner. i like what he owns but i think you have to take a barbell approach >> top of the uber ipo, bit of volatility >> i think so. capital markets is still very markets, a place to be within the banks sector they also have good capital ratios the valuation is pretty attractive low 40s i like it. the risk-reward here is pretty good >> i haven't checked moody's stock in a while that's done well from the december lows. all-time highs let's send it back to mike santoli to look at key levels on the s&p 500 that wall street is watching right now, mike >> wunl of the levels we've put in the rearview mirror for the moment

2800 on the s&p. i've got this chart dialed back to january 17th of 2018. that was the first day ever the s&p crossed above 2800 you can see it's this long wide-swinging sideways pattern more time below 2800 than above it it acted like a ceiling several times and with a couple of other rallies you've crossed below 2800 pretty dramatically, and ha kind of relegated the market to a bit of tough sledding. right now 2880 or so it seems right now it passed this initial test, the pullback did. i would point out right where we're trading at this very moment for the s&p stilling slightly below friday's close. we're playing with these levels. the last two days you've had late day declines. we'll see if that manifests again. but right now we put a little best a cushion between the market and the 2800 level. i do want to make a little bit of a look at the breadth numbers

for today in real time it's pretty decent it's not overwhelmingly dominant the new york stock exchange looks a lot better than the nasdaq you had more than 2-1 advancers to decliners right now that's not bad check out the nasdaq it's a little more mixed to be honest with you on a day when the nasdaq composite is up more than 1%. it's really only about, what is that, 3-2 positive on the nasdaq a lot of the semi names all week on this huawei >> all right, mike, thank you. see the you in a bit time to get a cnbc news update with sue herera. hi, sue. >> hello, sar p. hello, everyone. here's what's happening at this hour iowa attorney general tom miller is joining more than 40 other states in suing th oxycontin for its role in the opioid epidemic. miller claiming they engaged nun lawful and deceptive marketing practices. >> that change in america, in american sort of medicine and practices, was devastating for

so many americans. from 1999 to 2017. 218,000 americans lost their lives. with opioid-related prescription drugs. venezuelan opposition leader juan guaido has confirmed efforts are under way in norway to mediate sessions between the opposition and the maduro government but he warned that maduro has used past negotiations to play for time and was not sincere about making concessions and eight-time pro bowl defensive back patrick peterson of the arizoizona cardinals has been suspended six games for violeting the nfl's drug policy. he's set to lose $3 million due to that suspension you're up to date. that's the news update i'll send it back downtown to you. >> thanks as always. see you next half. e smart money falling back in love with fang we'll discuss which names are in favor among the hedge fund crowd

and whether it's a good time

nice move you today. materials, energy, health care, industrial stocks, everything up 1%, 1 1/2% semis the one exception on the huawei news with the semiconductors trading to the down side. we do have some nice moves up. some other stocks i want to show you the start of the day a lot of people talking about uber remember, went public the other day, friday, 45 hours, closed at 41.57. it is now trading above that closing price on the first day, and i know that sounds strange but a lot of people think that's fairly important three-day run for them >> thank you very much let's send it uptown to bertha coombs at the nasdaq for a check. >> sara, we're seeing large cap tech rally but apple not part of that apple down still about 4% for the week even as the nasdaq is

just about flat or so. 9% since may 3rd continuing concerns about how these chinese tariffs are going to impact apple. nonetheless a number of tech stocks hitting new highs workday, synopsis, paypal. even t-mobile as it is uncertain about its merger with sprint finally, consumer highs include mondelez, starbucks and pepsi, all of which have operations in china but they're very localized. not quite as exposed back to you. >> bertha, thanks very much for that let's dive more into tech and why hedge funds are adding more fang to their portfolios leslie picker's got that for us. >> many hoefrl names adding to their fang positions during the first quarter. david tepper's appaloosa increased its stake in facebook by 40% to more than half a billion shares new positions in netflix berkshire hathaway disclosing the size of its stake in amazon. 483,000 shares worth roughly shy of a billion dollars

warren buffett told cnbc last week that he was not the one making this purchase but one of his other portfolio managers were behind the amsn buy but not all fang names are loved equally as many of the fund managers we cover made bearish moves in alphabet. google's parent company. glenview tiger management each decreasing their stake in alphabet remember these positions are as of the end of march and may have changed in the six weeks since guys >> leslie picker leslie, thank you very much. two-part question. do you follow the big money into fang and what's with alphabet not getting the same love as others >> the alphabet quarter conference call is very disappointing. this stock is pretty cheap at about 20 times but remember that revenue growth decelerate decelerated from 22% to 19%. that is hardly horrible but it was a surprise and on the conference call they didn't do a good job as to why

revenues kind of slowed. $150 billion revenue company it's a law of large numbers. if they could have done a better job of disclosing i think the stock would have acted better. so i think that's the issue with alphabet i own it i own a small position i'm much bigger in facebook because i think you get the same multiple for better growth at facebook and i know it's controversial but i'm willing to live through that. in terms of fang, if you think you're in a slow growth environment you want to own a sector of growers and these stocks have lagged especially off the december lows >> also a big day for retail with walmart higher on an earnings beat. we'll break down the retail trade for you next on "closing bell." introducing the first-of-its-kind

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skechers announcing today that it has added katherine blair to its board of directors and as an independent member some gender diversity much needed to skechers previously all male board. and helps comply with the new california law that actually requires public companies hblthed there to have at least one female board member. by the end of the year the company's ceo saying "karnths brings a welcome perspective on business driven by her extensive experience in corporate law and governance,

complementing our current board of directors her background expands the diverse viewpoints on our board. a little more diverse, guys. remember this was a company that i called out back in march as one of the very high number of consumer-focused companies, i.e. catered to female shoppers, that did not have a single woman on its board. finally skechers makes a move. >> small progress. significant, though, nonetheless. let's head down to mike santoli for another read on retail mike >> yes, wilf i actually have a couple of different ways to slice the retail sector here we have two different etfs the rth in blue. the xrt in orange. and the middle in green is the s&p 500 just for expencomparisos sake why the divergence with the rth outperforming so much? it's market cap weighted more than 20% in amazon. another 20% in home depot and walmart. so essentially it is skewed toward the mega scale winners and disruptors within retail the xrt, equal weighted. basically spread all across

traditional retail lots of smaller names, lots of chain stores and malls that have been muscled aside by the big guys and by amazon that basically tells you the diverging fortunes of the different parts of retail. and it's also why i think the xrt and other traditional physical retail benchmark have lost their ability to tell you how the consumer is doing really because that doesn't fit with a relatively strong consumer that can get walmart's domestic comps up 3% as they were last quarter. >> let's talk more about that. mike, thank you. and bring in ben managing director at stevens. you've got an overweight regulate on walmart, $117 price target how much do you think those better same-store sales numbers actually do reflect the consumer environment in this country? >> i think it's certainly reflective of a strong consumer. i also think it's reflective of a lot of things that walmart has done they've worked really hard to

re-establish their price leadership the price gaps we see relative to their competitors are strong. they've really reoriented the consumer expectations around the service levels in their stores, with respect to pickup, delivery they've cleaned up their stores. i think it's both. it's a stronger, broader consumer i think it's also walmart really firing on all cylinders. >> 37% e-commerce growth year over year. ben, how does that stack up relative to their rivals >> it's very good. they're taking market share. we've continued to see e-commerce growth in the 35-plus range for some time here they've worked really hard on their inventory hearing, their assortment, the quality of the product offering a lot of high-quality brands as well they've really broadened out what they can offer to the consumer and the prices are sharp

we've gotten a recent announcement around faster delivery time. there's a real sense of urgency not just in e-commerce but the whole business and it's showing up in the numbers. >> the other topic of discussion today was tariffs. and if we continue to see more chinese imports. courtney reagan told us earlier it's about a third of what walmart sells. what's that going to mean for the consumer what's it going to mean for walmart's margins? >> it's ultimately going to mean higher prices for the consumer walmart -- i think because of the investments they made in their prices for the last three years, they've got healthy price gaps relative to their competitors. they're focused on maintaining those price gaps tariffs are going to be a pressure across retail i think walmart given that at most a third of their business is exposed to that tariff risk they're in a relative position of strength. and i think because the customer

know trusts them to have the lowest price and the fact they've rightfully earned that price position they can balance that with margin management. they've done a great job in reinflecting growth margins. we saw good evidence of that today. you have to think it is this is going to be a pressure point for walmart. it will be for the rest of retail we like how they're positioned erspite that risk that's out the that they helped navigate. >> ben thanks for joining us >> thank you >> up next, the top market maker tells us what he's watching into the close. ten minutes left to trade. you'll be famous... at least amongst your digging friends. here's a thought, ever consider investing? e*trade has easy to use tools that help you get started. you like playing with tools don't you? 'course you do. ♪ don't get mad. start investing with e*trade.

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welcome back let's dive into some individual analyst calls today. rbc upgrading kb homes outperform from perform. the firm cites improving pricing in the space up 2%. also sees the valuation of the smaller players like kb, smaller mid-cap versus the bigger players, closing that valuation gap. >> another one to watch is ox dental petroleum oxy. argus research lowering from hold to buy. saying it believes oxy is overpaying for anadarko. stock down a little over 1%.

designated market maker at gps to talk about what he's watching into the close losing a little steam. what does that tell you? >> i think fumt fundamentally it's a positive. the past five days we've made back a lot of loss there's been a tremendous amount of volatility in the market due to speculation on what's going to happen with china what we're seeing now is this rally over the -- since this morning, i apologize, we've seen the market go back above the 50-day moving average. anding i've actually noticed over the past five days, if you look at the sectors, real estate, consumer staples, utilities, those are typically defensive plays. they are outperforming the market over the last five days the laggards consumer discretionary, industrials and financials if there's speculation on what's going to happen with china, perhaps these sectors might be the most impacted by that. >> do you think another negative tweet, next, on trade still has the same effect it had on monday

or because we've moved on and stomached those first couple of scares are we ready to look past the next one >> it's one of those cases like jaws just when you thought it was safe to go back into the water every time there's a tweet something happens. it is nice to see we're going back to the fundamental in the absence of news or breaking news >> stephanie, can you ignore the trade headlines or is that the key? >> you kind of can't ignore it i don't want to trade around it as a long-term investor. i want to look for opportunities. i don't want the defensives to lead it's very telling how people are cautious they maybe feel better to make it monday but theye ill 'rst cautious >> mark, thanks so much for joining us we'll have the closing countdown when we come back. five minutes left to trade it's not about quantity. it's about quality. no trendy stuff. i want etfs backed by research. is it built for the long-term? my reputation depends on it. flexshares etfs are designed and managed around investor objectives. so you can advise with confidence.

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it's a paste. it's not liquid or a gel. and even explore what-if scenarios. where's gate 87? don't get mad. get e*trade and start trading today. welcome back let's send it to mike santoli, bob pisani for the closing countdown. >> thank you very much we have the dow up just about 200 points right now for the third day in a row we've had a nice rally that has grown a bit tentative and backed off somewhat toward the close. the s&p 500 was up a little more than 40 points at its high holding on to somewhat more than half the gains for the day still showing a little more of an overlay of caution. flirting with a couple of levels here the dow has been flirting with the 26,000 level all day kind of approach the void on that s&p 500 was above friday's close

to essentially recoup all of monday's losses over the past three days it's backed a little below that right now. the nasdaq has been the winner, bob. growth in tech stocks somewhat more in favor. >> we've gone 600 points in the dow since 9:00 a.m. yesterday. progress on trade talks, progress in europe, progress on china, none of which has materialized -- >> or the absence of scary headlines on trade >> i would note, however, it's harder to push them forward. look at the industrials today. caterpillar, for example, 3m, they sold off. you've noted we're down here but they sold off rather notably they're down on the day. those trade headlines a few weeks ago would have pushed those stocks up 2% or 3% they're trading down there's only so far that you can push this particular story re had a nice expansion of new highs, almost 200 on the new york stock exchange, haven't seen that in a few weeks, but most of those were consumer

names. still hard to get those global industrial cyclicals -- >> low yield supporting things but definitely not the cyclicals taking charge, bob thank you very much. ringing the bell today at the big board. at the nasdaq the united nations general assembly "the closing bell" starts right now with sara and wilf welcome to "the closing bell," everybody i'm wilfred frost. >> i'm sara eisen. mike santoli in just a moment. take a look at how we finished up the day on wall street. higher for a third day in a row. and actually positive for the week the dow finding a little more than .8 of a%. 215 points currently off the owes, up 44. broad-based. every sector in the s&p 500 did rise today good for a gain of almost a full

percent. the comeback continues >> good momentum throughout most of the session a little bit of softness but about two hours into the close. certainly much closer to the highs than the lows of the day just shy in fact of being in the green for the week as a whole. down about .2 of a percent for the s&p through the course of the week >> talk about the good results we saw cisco, positive reception to that it's a dow component walmart, positive reception. boeing got a bit of good news later when it comes to finalizing its software tests for fixing the 737 max that all helps the market. but in general, it does feel like investors are able to step away from the worst faersz of the trade war knowing talks are ongoing with beijing >> all the s&p sectors were a high today let's get more on the rally. bob pisani joins us from the floor of the stock exchange. >> third day of rallies.

we had 600 moint move in the dow since 9:00 a.m. yesterday. 70 points in the s&p 500 that's the good news third day in a row, though, we saw a slip going into the close. most everything was down 1%, 1 1/4% a little off the highs materials, industrials, health care semiconductors the lone exception. concerns about huawei. a lot of suppliers there to huawei, semiconductor stocks down on the day. i want to point out global industrials. very mixed day for that. normally on a day when there's more hopes for trade talks you would see a 3m and a caterpillar moving to the up side 1% or so didn't happen again. 3m set a new low for most of the week limit to how far you can push these trade talk discussions another big trade sector today, retailers didn't really participate in the rally at all. many of the big names, consumer staple stocks that are trading at new highs i just want to pull up the retailers. you see, not really

participating in that rally. and again, a lot of them associated with imports from china. back to you. >> bob, thank you. let's head to the nasdaq now for the biggestmovers over there >> the nasdaq was up at one point fractionally for the week. ended up kind of flat in terms of losses. cisco one of the reasons why helped pull up a number of big tech names particularly in the cloud, computing area. very strong earnings very strong and confident outlook. on the other side the fact we finished higher at the nasdaq with most tech was really considerable given the fact we did have a way down coming from chips. a number of stocks with exposure to china chinese markets like corvo, like skyworks, they were lower today as were the chips, and nonetheless we rallied very interesting sign today. >> bertha, thank you we are following a slew of big headlines after the bell today pinterest gearing up for its first earnings report as a public company we'll bring you that aditi roy is covering pinterest

pour us. seema mody following results from nvidia and applied materials. deirdre bosa standing by for bai baidu's numbers. lucky coffee, breaking news as soon as it comes out >> let's go back to the post-game panel to talk about markets. chief global investment strategist at charles schwab savita maranian at bank of america merrill lynch. and back with us at the start of this hour stephanie link, global equities director and portfolio manager from nuveen, a tiaa company. you guys have long company names. and mike santoli is with us as always mike, your take on the day a little slippage. >> the market is incrementally relaxing the past three days to me it's about the absence of fresh headlines about tariffs, about trade war. the market always wishes for this issue to be put aside i think it's been possible to do

that for 48 hours. definitely trading as if it's still a slow growth story. the big nasdaq stocks. yields dip a little today. i go back to the fact that triple b rated, below 4% yield again. hasn't been there since mid february that's just supportive of the general high liquidity slow growth relatively high valuation or modest valuation environment for stocks >> bob, we've got an earnings alert on applied materials seema mody with the results. >> encouraging report amid dispoingt numbers from the broader space. applied materials beat 70 cents adjusted versus the estimate at 66 cents revenue topping estimates as well at $3.54 billion versus the estimates of $3.48 what's also key here is guidance third quarter guidance largely above estimates if you take a look at intel among others, they guided lower the fact we have amat higher

here on better than expected guidance using the report, the stock is up about 3.4% guys, back to you. >> seema, thank you very much for that eps beat, stephanie. guidance is going to be key for these games names. also to nvidia that looks positive. >> we had a memory glut. everyone's wondering when you're going to work down that inventory. their research gave us a look at it a couple weeks ago. they said the same thing by the end of the year you'll start to see the inventories improve. that's very encouraging. now you get their competitor saying pleat much the same thing. these stocks were trading at 12 times forward estimates and very low expectations even though they are both at 40% from their december lows. they're still very attractive. if you believe you're going to get a trade deal done, these are the names you want to own >> president trump looks at the markets and sees comebacks in the worst week of the year does it empower him to go

forward with his strategy on trade? >> i think that in a situation where the market were selling off he'd be much more inclined to get something done and to appease the market but what's interesting is what stephanie and mike pointed out, which is that the market's been driven still by growth stocks. we haven't really seen cyclicals come out of their doldrums and i think if we are expecting any sort of positive resolution on trade those are the stocks to buy. they're super cheap. they're trading at like 2,016. this to me is an interesting opportunity. to your point about incentives to get anything done i think it's a great point maybe we need to see a little more volatility to get policy makers to wake up and start panicking a little bit >> everyone sit tight. we're going to continue the

broader market discussion. we've got another earnings report pinterest and aditi's got it for us >> hi, wilf. pinterest's first earnings report as a public company, shares right now are down almost 11% after being up earlier in the day and that's likely due to a big miss on eps. let's start with the top line. revenues 201.9 million versus 200.6 million analysts were predicting a small beat there but the big miss was on the bottom line. a loss of 32 cents versus a loss of 11 cents that was predicted that could be what's driving the shares down. full-year revenue guidance was also largely in line with expectations 1.05 to 1.08 billion versus 1.06 billion. and a couple of other metrics that investors look very closely at, monthly active users the company says its global monthly active users was 291 million that's up 22% year over year and

also up from the 265 million from the last quarter. and the average revenue per user is 73 cents. that's up 26% year over year back to you guys >> all right, aditi. thank you. joining us to break down the numbers, tom forte from d.a. davidson and company this had been one of the post ipo winners. how bifg a disappointment is that >> it has been warmly received by the markets so far. the big challenge or big opportunity for pinterest is international monetization if you look at the audience, they're about 30% u.s., 70% international. but their monetization is 94% u.s., 6% international so the question is on a near-term basis how much are they going off to invest in the platform to improve their international monetization you talked about the arpu. the question i have is what was international arpu and to what extent did that grow in the quarter? that would be the number i'm looking for on the earnings call later today.

>> and tom, how confident are you that they can build that international arpu, average revenue per user, to catch up with the u.s. number >> to the extent i have a neutral rating on the stock, i am not confident i think what you've seen with pinterest is they've done an excellent job building the global audience. they've done a fairly good job monetizing the audience in the u.s. they have a lot of room for improvement for international. to the extent i see improvement then i might reconsider my ratings. but i do think it's going to be difficult for the company. >> this is a stock that's up, what, 50% from its ipo price first quarter earnings always a key -- >> my first observations it's not a company that's practiced in managing expectations of the street remember the ipo priced at $19 as far as the company's concerned, that's the price they debuted to the public. it ran from there. and that's why some of the premium has to come out because it's a little bit of a stumble when you talk about some of the key metrics. >> and retch beats the eps could be

kind of one-off costs into numbers. tom, how do you work out valuation given you just put this at hold what's it trading at how steep is it? >> good news for pinterest, it's an advertising-based business model. some of the -- i think it will have a fat margin overtime 35% adjusted ebidta margin the question is how quickly will it ram top that big of margin over time and then again how will they do on international monetization on an easy to sales basis it's quite expensive, well north of six times. by way of comparison roku's more like four times. it is an expensive stock >> but you say you're looking for their revenue growth internationally, tom it looks like it was 100%, 107% internationally, versus 50% domestically and that's certainly where the user growth is as well >> i would say if those are the numbers then that is encouraging. you did see a slowdown nafrnlg revenue per user for international audience in '18 which was consistent with the rollout of gdpr. so the fact they're able to

reignite that, that is encouraging. >> and that average revenue per user internationally up 59%. what would it take to get stephanie link interested in pinterest? >> not at 40 times 2022 ebidta they came out of the box and missed numbers which is crazy to me but the thing is obviously the margins got hit because they are investing and that is the story. you have to -- to own these kinds of valuations you've got to have positive operating leverage and this is not that. especially at this valuation no >> it will be interesting to hear the conference calling for sure first one ever for that team tom forte, thanks for joining us >> thanks for having me. >> up next much more from our post-game panel including if this market will keep on rallying now that the trade war fears have subsided this week. ipo any minute now a look at what that means for starbuc starbuc starbucks's prospects in china lots more to come on "closing bell." alright boys, time for bed.

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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. i'm deirdre bosa at cnbc's one market tech stocks had been among the hardest hit as they're particularly exposed stocks have slumped between 5%

and 11%. apple falling the most as its iphones assembled in china are vulnerable to price increases and chinese consumers could cut back chipmakers are some of the biggest losers with intel and nvidia both falling more than 10%. intel turning negative on the year even tech names that don't have major china businesses like netflix and facebook have sold off since the trade spat heated up unlike other sectors tech is unlikely to receive bailouts or subsidies if the tech war heats up further >> dee bosa, thank you for that. back to the broader markets and how we closed the day with our post-game panel. jeff, i'm going to come to you my apologies we didn't do so in the first block. good to have you with us your take or one of your key takes is how stocks and bonds pointing to different outcomes for the u.s. economy in the year ahead. which one do you think is right? >> stocks have been behaving a little bit better here giving back some of their gains up double digits this year

but somebody's got to tell the bond market the risk is back on because bonds have continued to point tie lackluster economic environment. the yield curve is now flirting again with inversion here in the last couple of days. of course we know that's a sign of a potential recession around the corner with stocks and bonds disconnecting this year i'd say bonds may have this right. outside of those trade tweets the backdrop has not been great. the global purchasing managers index for manufacturing has fallen 12 months in a row. that's a record. we've seen earnings growth go nowhere this year. everyone banking on a second half recovery there and other leading indicators are pointing to softer growth as well no doubt q2 in both the u.s. and china will be weaker than q1 that backdrop i think is still worry stom and creates more vulnerability in the stock market >> you're going to have to hit pause on the broader market discussion once more because we've got a news alert on luckin coffee's ipo >> luckin could have foo expected to price at the high end of the range or possibly a dollar above

that's according to a source with be knowledge of the deal. the company and its advisers are set to begin final pricing discussions shortly. it sounds like investors, though, are expecting about $18 a share which would be above the range the company may choose to give investors the extra dollar by pricing at 17 i'm told there's also possibility of upsizing the amount of shares or american depository shares sold in this offering all of this could change as the pricing call is beginning shortly. and final decisions won't be made for another hour or so. but where is this demand coming from from investors? i'm told investors are attracted to a few aspects of this deal. the chinese company -- chiejz coffee company has proven its ability to scale the economics of their model are clear to investors and there's potentially a big opportunity in a potentially huge-ranking nation of a billion people last year, however, luckin was losing twice as much money as it was bringing in the door but so far that doesn't appear to really be putting a dent in demand, guys

>> leslie picker, thank you. is this going to be a beyond meat or an uber, stephanie >> i think it's going to do well for a couple of months they have to execute, though, because they want to grow that store base from 2500 stores to 10,000 over the coming year, right? they also are subsidizing their customers and their costsrich higher than their a.s.p.s. it's going to be interesting to see how it all plays out sthaf done a good job so far but i just feel like at this valuation it's ten times 2022 earnings if you believe 2022 earnings they've got to do all these things right >> mike, the fact the guidance is right there from the top end of the range, all things considered, we thought last friday was a tough day for uber to i'mer this week for a chinese company listing in new york it could be difficult. >> it's a positive if it -- i think increasingly uber and lyft have seemed like exceptions. just in terms of doubts about the business model it's not really about ipos

broadly speaking it's strictly about the news not that many pure plays on domestic chinese retail concepts that you could point to. >> savita, how do you think about the current environment and reception for ipos and what it tells us about the cycle and the environment? >> yeah. so we are seeing a pretty good pickup in ipo activity i think the supply-demand balance for equities is becoming a little less attractive if you think about it, for the for the last five years we had companies buying back shares like crazy like generating a lot of earnings growth from share buybacks that story is starting to slow down a little bit. we think this year's going to be okay but next year we expect to see companies pause. on the flip side we've got a ton of new -- there's more supply, less demand. that's why we're neutral on equities here. we've got a 2900 target on the s&p 500, which was about 24 points away. so it's not a lot of upside risk to the market.

i do think there are really interesting pockets of the market i love financials. u.s. financials i think is the most underappreciated sector in the s&p 500. today it is trading at the lowest relative multiple to utilities we've ever seen. yet financials are actually kind of utilities-like. they're paying a regular dividend, increasing that dividend, overcapitalized. they're regulated just like utilities. so i think there's an argument to be made that investors start to go back to financials for quality and yield rather than the levered growth that it represented back in 2007 >> steph, just want to hit a topic related to trade that we haven't spoken about much, and that's the chinese currency. you've been keeping an eye on that what do you think that means for china's economy? >> only 1% away from a breakout to lows we haven't seen in ten years. i think that's important china is attempting to use that

as a pressure release valve. they're trying not to go back to stimulating excessive credit growth or infrastructure spending that's good money chasing bad. they put reforms in place to try to build that. look, they're going to be doing some aggressive things to try to stimulate their economy. we got the april trade data p. their internal retail sales data their i.p. data doesn't look good china's economy's slowing faster than we'd like it to they're trying tuz the currency to support exports to other parts of the world but exports to europe are slowing just as they're slowing to the u.s look for china to unveil more stimulus measures in the coming weeks. we'll see how desperate that makes them sound as they head into the trade talks >> okay, guys, for the panel we will leave it there. thank you all very much. jeff, savita and stephanie is in fact going to stick around with us for the full hour my apologize but jeff and savita, thank you very much. we've got nvidia earnings out. >> another encouraging report this time from nvidia. 88 cents adjusted. the street was expecting 81.

revenue at 2.2 billion, which also surpassed expectations. key metric again is revenue and second quarter revenue guidance looks good about 2.53 billion 2.55 billion versus the 2.53 billion estimate here's what they're saying on growth we return to growth in gaming nvidia says. despite the near-term pause as demand -- the application of a.i. continues to aksale raicce. a.i. adoption is increasing in the world's largest industries in regards to its acquisition of melonox which it announced back in early march the transaction nvidia says is expected to close by the end of the calendar year. hot topic, china, how much will higher tariffs mean for the company? if they can quantify that on the earnings call that will be of importance for nvidia. that stock up 6% lastly i'll point out the recent move we've seen in crypto currencies could that increase appetite for

graphic cards? that is something we saw play out back in 2017 nvidia up 6% we'll get on the earnings call pretty soon here wilf, back to you. >> seema, thank you. mike santoli not the fever pitch that nvidia was at last year well off the highs but it has slowly come back and this is a good number. >> it's come back in a broad way but also down in the last three weeks from 190 i do think it was primed perhaps to have a little bit of a bright side response with the clear beat there's no doubt about it. clear beat and pretty positive commentary but i do think one of the things you have to keep in mind is three weeks ago it was trading 30 bucks higher than the close >> still to come verizon ceo hans vestberg discusses the company's 5g rollout and how increasing competition from the sprint merger could imct hpais business >> but first to new orleans for the look at the rough and costly ride it has taken to rebuild that city's airport. but to us,

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and you're still not sure if you want to make the trade? exactly. sounds like a case of analysis paralysis. is there a cure? td ameritrade's trade desk. they can help gut check your strategies and answer all your toughest questions. sounds perfect. see, your stress level was here and i got you down to here, i've done my job. call for a strategy gut check with td ameritrade. ♪ if you fly a lot, you know that airport congestion has only been getting worse but improving infrastructure has hit a lot of turbulence on cost increases our phil lebeau is in new orleans with a look at what all that money is being spent on hi, phil >> reporter: sara, here they're spending about a billion dollars. i am in the grand hall of the new north terminal still very much under construction it will open later this year a huge improvement for new

orleans in the future. when you ask new orleans or other airports why they're adding or renovating terminals here's the reason why. look at the number of people flying in the united states. over 900 million scheduled to fly this year. that's why cities of new orleans have said we need to do more to upgrade our facilities when you look at u.s. airports overall there's an estimate there's $128 billion in upgrades that need to be made by 2023 obviously not all of that is going it take place. but as we have been looking at this story over the last couple of months the key thing to focus on is it's not just you and i going through the dernlz quickly, it's also about the airlines being able to move planes in and out of airports more efficiently that allows the system to move quicker and ultimately a better flying experience for all of us. >> thank you very much for that. phil lebeau in new orleans time for a cnbc news update. sue herera's got it for us >> here's what's hang at this hour, everyone

"the new york times" reporting president trump has told his acting defense secretary patrick shanahan he does not want to go to war with iran the newspaper says trump made the comment to shanahan on wednesday morning during a white house briefing chelsea manning says she will not testify before a federal grand jury investigating wikileaks and is prepared to go back to jail she made the comments before entering a federal courthouse in virginia where she was subpoenaed to testify before a grand jury canadian prime minister justin trudeau commenting on the battle over abortion rights here in the u.s after alabama passed the country's most restrictive abortion law he expressed his disappointment in alabama's decision, saying it is regressing on women's rights. >> it's a shame that we increasingly see conservative governments and conservative politicians taking away rights that have been hard fought over many, many years by generations

of women and male allies >> you are up to date. that's the news update this hour guys, i'll send it back downtown to you >> sue, thank you. up next, verizon ceo hans vest berg tells us how the governnt me bme'sovtoan huawei's technology will impact his company. >> plus we'll find out whether the market has more room to run. 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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applied materials higher after a beat on both the top and bottom lines shares of pinterest plunging after its first earnings report as a public company reporting a much bigger loss than expected nvidia getting a nice pop. we're expecting baidu results any moment we'll get them to you as soon as we go through them >> two big interviews tomorrow "mad money" relating to earnings cramer sits down exclusively with pinterest ceo ben silbermann and nvidia's ceo

jensen huang let's get a look at the reasons behind today's rally bob pisani joins us with more. >> another rally here. but again, third day in a row we close off the highs. starting to get a bit of a pattern here everything was up 1% kurnl staples names. procter & gamble, hershey's, general mills, colgate and pa palmoli palmolive. but some sectors didn't participate. we usually get a bounce on industrial names and yet caterpillar, 3m didn't participate. getting harder to push them up another group, retail stocks also very exposed to china nothing really going on in that particular part of the world either guys, back to you. >> bob, thank you. let's head back to the nasdaq for biggest mods movers there. bertha coombs joins us with more bertha >> cisco definitely set the table with strong earnings and we will a very confident outlook saying it's already anticipated this latest hike in chinese tariffs and that along with

microsoft, google and amazon or rather alphabet really has been what's been driving the nasdaq to near parity for the week. really erasing its losses. on the other side the big drag remains apple. those much more exposed to china. apple today down again on pace for its first time having back-to-back weekly losses since last year. and & chip stocks as well both of them down double digits for the week on top of another decline today. back over to you >> we've got those baidu numbers. thank you, bertha. we'll go to deirdre bosa for results. >> this is china's biggest search engine mission on earnings but reporting revenue that is in line with the street's expectation eps coming in at 2.77 renminbi versus 2.89 expected revenue in line at 24.1 billion yuan we do not have a comparable arpu number we'll continue to look through

that average revenue per user q2 revenue guidance is light, however, and that is probably what is hithd the stock which is down nearly 5% in the after-hours. for several quarters the company has been warning investors about slowing growth and the trade war with the u.s we'll see tonight if the team has an update. that call doesn't kick off until 9:15 p.m. eastern. this is china's largest search engine it makes most of its money through advertising. and if this way we can sort of get a gauge by other chinese businesses it has been massively underperforming its chinese tech peers and broader markets. it is underwater for the year. and on that note the company is announcing a u.s. $1 billion share repurchase program back over to you >> thanks so much for that stephanie, what's your take on this name? >> they grave us their three-year strategic plan in january and said they were going to be spending an awful lot to build out content. this is exactly what they're doing. they're making it in line with revenues but their earnings are

dispointing. that's lack of operating leverage when these stocks play at the multiples that they do you have to raise, you have to show operating leverage all these things need to get checked off to want to buy into that >> interesting how the chinese consumer slowdown has hit this company differently than some of the other companies like alibaba which continues to post very strong results >> if you think about google they had the same problems they're spending a lot to drive the content and to drive revenues it's the segment that is seeing the same kinds of things but baidu is a little worse on a relative basis >> also the kind of company that a billion-dollar share buyback is not necessarily going to be received well. you don't own baidu necessarily for the capital allocation >> u.s. stockholders as well not quite sure how that's going to shake out switching gears, elon musk's spacex is planning to beam high-speed internet to millions of people around the world morgan brennan joins us with more on that morgan >> tonight could be the night. this is when elon musk's

broadband ambitions could be launched literally. when a falcon 9 rocket scheduled to carry the first 60 starling satellites into low earth orbit. what is star links a planned service via constellation of thousands of satellites this would be a new revenue stream for spacex. and when i asked musk on a media call how he sees this contributing to the broader company strategy he said launch revenue could be $3 billion, satellite revenue could reach $30 billion. which would help fund future rockets and spaceships p and be a key stepping stone on the way to establishing a self-sustaining city on mars and a base on the moon now, rusk doesn't expect to displace telcos. that's a huge part of this in fact, he sees this as an opportunity since satellites could add connectivity in sparsely populated regions that are harder for some of those telecom companies to reach but tonight if this launch does go off and goes off without a hitch

and gets this first round of satellites up there that's just the start. we're probably looking at two years before things are in operation and they would be looking to support some of these telecom customers as customers >> watching this tonight the telecom giants >> a lot of people will be watching this. also because spacex isn't alon in this. you have other companies like leo sat, li like one web backed by softbank and also amazon which recently announced plans to launch its own constellation of 1,000 satellites. >> no one will be as excited as you. morgan brennan probably true. >> president trump issuing an executive order, speaking of telecommunications, declaring a national emergency over threats against u.s. technologies. huawei is one of the key targets. we spoke with verizon's ceo hans vestberg in a first on cnbc interview today to get his take on how this could impact verizon. >> the networks frequipment fro.

networks there's no impact immediately. >> what is your take on this very hard line that the u.s. is taking on huawei particularly when other major allies like various european partners are not take the same tough stance >> it's hard for me to specul e speculate. they have the right to information. it's nothing that we or i would know anything about. >> hans, we want to talk more about is that and your own 5g network in a moment. just the final question on huawei stepping aside from many of the latest national security concerns and headlines, do you think they have innovated so much in recent years that they are one of the technology leaders in the world and has their pace of catch-up surprised you? >> i think in general they have done a great job but this is the

most important sector -- so of course they have been part of innovating but many others as well i think they're part of it the interesting thing with the telecom industry is -- it's a reason why any phone can work in any country in the world all are building to the same standard so the standard is defined by all of the partners in the ecosystem, which is very different from any other industry where you troo to protect your i.t here we're actually using the same standard idea and then building on top of that. >> you mentioned you launched a new samsung 5g phone today it's not cheap $1,300 what's your expectation at this point about whether consumers will pay up to upgrade 5g? >> i think first of all you get the best phone in the market and on top of that you get the 5g

experience, which is so very different from the 4g. over 1.3 gigabits per second in the network. usually you get to 100 on the best network, the verizon network. it's a great experience, a new experience and of course i believe there's going to be people taking it we've seen tens of thousands of customers taking it already. today is the first day you can actually buy it. >> how big a swing factor do you think launching 5g first is for your market share? is it going to give you half a per clent gain 10% gain what's your hopes and expectations >> we have high ambition it's extremely important for our customers that they not only get the best network but -- we think if we do that well there is the potential of course of gaining

market share and we have always high ambition in this area but let's see how it plays out but definitely we have the best effort and we want to be first with the technology. >> when do you think apple's going to launch a 5g phone >> i guess that's a good question for them. but i think we will range this year four phones with 5g and next year basically 3/4 of all the phones we're watching will have 5g in them. the ecosystem is ramping up extremely fast we're going to see which vendors and which oems come out with a smartphone we need to stay tuned. we know what will come and we're excited. >> i know you operate of course both fixed line and wireless but a question about where one 5g is pullifully up and running will people only need one single subscription to a 5g wireless

subscriber because it's going to be so dpar and therefore they don't need to have a fixed line subscription at home as well >> i think that's what we see right now because we're launching two services 5g to the home instead of fiber and other connectivity and the fiber mobility i think to have a full experience at home with tv and local gadgets, children are playing with the device, you need to have one subscription for that because that's a very special one. but that can be combined with the 5g mobility over time. maybe if you only have an ipod at home and you do all your tv on that one you can have one subscription we're going to create that optionality for our customers that they can pick and choose what is good for them. and we're going to have the network to do that we love the optionality we can create for our customers this tha they can pick and choose what they're going to do do they want to have the -- that's what we'll give to our

customers for the choices. >> hans, i want to ask you about this fcc proposal that came very recently that would give you and at&t and other carriers more power to block these suspectsed spam calls i get a million of them a day. are they going to disappear if some proposal goes through >> i think first of all that's something we're working with constantly and we need to be better it's about the consumers and how we are dealing with them and important there to work with yes, we're going to work with whatever decision's going to come or law that will come >> our thanks to hans vestberg, ceo of verizon mike, we talk about a number of topics but i think the bigger marching theme is they're plowing ahead with 5g. u.s. is plowing ahead with 5g. where's wall street on this issue? do they rerate stocks based on

that growth potential? >> i think eventually maybe the hope is they would but right now not really it's just a matter of figure out adoption rates, how much is that going to increase the kind ever data intensity of their network, which is kind of how they get paid >> the stock has done very well. at&t is the cleaner story. it's defensive and essentially they didn't make a huge deal buying time warner >> hans is very positive on his 5g rollout we'd expect nothing less the analyst committee more split and the debate will come to and the question is is it important to get the advantage or the most quality 5g network we don't know the answer just yet. >> we just don't in terms of getting rerated the semiconductor companies, it's encouraging to see verizon's hung in there but the stock really is to mike's point muchar 340r of a defensive name

if you want to own defensives if you want to own yields you're going to own this. i don't think anyone's going to credit is this for 5g. >> mike santoli will head to the telestrator with a look at what recent unemployment numbers could signal about the economy who says our bank isn't tech enough? everyone, look at your phones. the design thinking, the digital engineering, security, blockchain, and we will be first to market! yes. when we do we launch?

unfortunately, in 2 or 3, hours. why the delay? cognizant is helping banks use digital technologies at scale to advance speed to market. what do advisors look for don't just track an index, help me meet a client's need. is the fund built to sell or built to last? etfs are only part of a portfolio. so make it easy to explain. give me a quality fund that helps me get clients closer to their goals. flexshares etfs are designed and managed around investor objectives. so you can advise with confidence. before investing, consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully. your control. like bedhead. hmmmm. ♪ rub-a-dub ducky... and then...there's national car rental. at national, i'm in total control. i can just skip the counter and choose any car in the aisle i like.

so i can rent fast without getting a hair out of place. heeeeey. hey! ah, control. (vo) go national. go like a pro. ...when a plan stops being a plan and gets set into motion. today's merrill can help you get there with the people, tools, and personalized advice to help turn your ambitions into action. what would you like the power to do? layoffs at near record lows. let's send it over to mike santoli with more. that's good news >> it's very good news

continued good news. unemployment claims, weekly unemployment claims came in below expectations today, which is a positive sign for the overall health of the job market here's an extremely long-term view at this data series unemployment claims, four-week moving average, much at the lows and of course, we had far fewer people in the country back then. so essentially rock bottom levels a few months ago we looked at this chart and took note of this little upturn. when claims start to rise from extremely low levels and that becomes a trend that's typically a leading indicator of a recession. you would have seen it right here these shaded areas are recessions and you want to make sure it's not one of the trend moves and that's the good news you had a bit of a false potential signal that inflation was coming on the horizon and i think we forestalled it. it happens relatively quickly sometimes and it's not like you get so much notice and you're doing your checklist, is

anything telling me, this one is yet signaling to be more work. >> mike, i guess the gray areas there are relative to the economy and not the market. >> yeah. the usual link >> it does as a matter of fact, generally in any site where the stock market would peak. >> as always, thank you. >> up next, a brewing coffee battle luckin coffee with the ipo we'll discuss that straight ahead.

welcome back a battle brewing in the coffee space. starbucks' biggest chinese rival luckin coffee has the ipo tomorrow and now leslie picker says it could praise at the high

end of the range with a dollar above the high end of the range and kate rogers looks at what this means for starbucks >> these two companies are offering different things for the chinese consumer luckin with steep discount, cashless stores and an emphasis on delivery. the higher-end stores like the shanghai roastery while focusing on mobile order and pay feature. luckin forecasting to open another 2500 this year alone if that comes to fruition, it could overtake starbucks as the dominant presence in the country when it comes to store count starbucks is projecting about 6,000 locations in china by 2022 don't forget, starbucks has been there for 20 years already and luckin is not yet two years old and the historical operational experience gives starbucks a leg up here. back over to you >> kate rogers, thank you very much >> don't miss luckin coffee

tomorrow morning "squawk box" ahead of its debut. >> the biggest movers making wel bk aou 'lbeacin cple. ♪ feel that? that's the beat of global markets, the rhythm of the world. but to us, it's the pace of tomorrow. with ingenuity, technologies, and markets expertise we create the possible. and when you do that, you don't chase the pace of tomorrow. you set it. nasdaq. rewrite tomorrow.

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let's check in on the headlines making news after hours. pinterest shares plunging after reporting a larger than expected loss in its first public report since going public, excuse me, down 15% don't miss jim cramer's exclusive with the pinterest ceo ben silbermann and beating wall street's top and bottom line and the q2 guidance is up some 6%. tomorrow as well let's get a check on what else is on tap tomorrow investors will digest the consumer sentiment report. luckin coffee begins trading after its ipo. one thing it did not hit, but worth watching overnight as it continues to watch the bigger risk is the british pound which continues to get hit and a political risk. >> slipping half a percent with 0.4% and back below 128 which is interesting and that's the news

that the prime minister theresa may says she will step down regardless what happens in getting her brexit bill through and that's a significant step because so far she's been as resilient as she could be and the swing in the market is what will succeed and it's a brexit here and if it is, then clearly the chances of the heart of brexit is higher and i've gotten the ten-day chart of the pound and that's a significant decline and that's the strength in the polls that nigel has ahead of next week's european parliamentary election and back below 128 on the pound. >> and by the way, why you should care. one reason look at walmart today. a $2 billion hit on revenue from the strong dollar. >> it's been a pretty consistent piece of the story here quietly and it's retained the story and the third anniversary of it coming up?

>> it's about a month away >> we've been together a long time. >> it's crazy. >> i didn't mean to evoke those memories >> we are out of time, stephanie, thanks for watching, everyone that does it for "closing bell." >> have a good evening fast money begins right now. >> fast money starts right now live from the nasdaq marketsite overlooking times square pete najarian, them seymour, tim nathan and guy adami the pinterest ipo and two major chipmakers and nvidia and applied materials and both stocks shooting higher and we'll bring you the details and tesla coming to a screeching halt neari nearing multi-year lows and we'll tell you just how bad things can get and we start off with the concrete consumer and despite all of the headwinds and trade tariffs an