with today's loss just take a look at the chart. i sense a little skepticism. >> alt coin. >> i'm just doing the reporting. >> just this month bitcoin still about 40%. >> it's had a huge pop >> you're just the messenger, we know we still love you. >> thanks for watching "power lunch," everyone thanks to bill and courtney. >> thanks for having us. >> "closing bell" starts right now. all together now >> announcer: another whipsaw day on wall street >> take a look at u.s. equity futures. they are in the red, in large part because they're under pressure from what's happening in china >> dow futures as you saw down about 180 here as the index could see its fourth consecutive week lower >> major averages are now trading higher with dow up 54 points >> it's the final hour of a volatile week of trading "closing bell" starts right now. >> it does indeed. good afternoon welcome to "the closing bell." i'm wilfred frost. >> and i'm morgan bren nn for

sara eisen happy friday we have got a big show on this friday the dow coming back after being down 204 points at the low we are slightly higher right now. >> up 0.1% we're following all the action including starbucks rival luckin's first day of trade. we're watching the moves and what it says about the ipo market plus day five of our week-long series, an all-star fund manager at t. rowe price today will tell us the areas he likes into the close. that's coming up >> but first, we've got breaking news on trade. let's get to kayla tausche with the latest kayla. >> morgan, we've been talking about autos and steel and aluminum all throughout the day but i want to bring you an update on china where it appears negotiations between the u.s. and china have stalled with both sides digging in after disagreeing earlier this month on the deal text two sources briefed on the status of talks said the scheduling of the next round of negotiations is in flux because it's not clear what the two sides would be negotiating china hans signaled it's willing to revisit past promises on

which it reneged in early may despite showing up for talks in washington last week the u.s. delegation has been invited to beijing, which earlier this week treasury secretary steven mnuchin appeared open to accepting but now sources say scheduling discussions have been put on hold essentially since the trump administration ratcheted up its scrutiny of chinese telecon companies seen as a shoot across the bow to beijing we reached out to the white house, the u.s. trade representative and treasury for comment. we did not get one before air time, but we will let you know as soon as which e do >> i want to bring in our guest for the app. from cantor fitzgerald also here to talk about the latest tariff news barry zuckerman of zuckerman industries which is the largest independent steel tubular manufacturer in north america. barry, i'll start with you what's your take on the fact that this deal seemingly has been reached >> i think overall it's a good deal it's a nice outcome. of course the devil's always in the details. that remains to be seen.

i wish we could have gotten here about six months ago but thank god it's over. i'm glad we reached this point >> peter, what's more important for the market good news on trade with china or good news on trade with the allies of canned arks europe, and japan? >> i don't think the outcome of usmca was ever really in doubt, and i thought it was a bit more optics than it was substance, quite frankly. and obviously the president wants to get approval in congress so there had to be a resolution around getting those tariffs removed. likely before that was going to happen i think the deal with china is much more important both from a fundamental perspective but also optically for markets. >> weert and barry, stick around we're going to discuss all the trade topics in more detail in just a moment. but first morgan has been made aware of the telestrator and is watching deere today morgan >> we will bring that check to you in just a moment but shares are lower they're down about 5% today. earnings missed again. fifth straight quarter for deere. but worse, deere cutting its

full-year outlook for profit but also for sales, which are now forecast to rise 5% instead of 7% two main culprits expected to weigh further on farm income and thus demand for deere equipment. those would be trade war with china, which is depressing stock prices, and then also terrible weather in the midwest so both of those playing a role. ceo samuel allen summed it up in a statement today. said, "ongoing concerns about export market access, near-term demand for commodities such as soybeans, and delayed planting season much of north america are causing farmers to become much more cautious about making major purchases. so wilf, here's the thing. deere is not betting on a resolution to the trade war, and they are preparing accordingly >> does that preparation include then exactly >> that includes a 20% cut to production of farm equipment, agricultural equipment, at two of its biggest factories here in north america. basically, they have had plan to

work through inventory that is already there and cut production that is a reason their outlook is also caterpillar, 3m, some of the other multinational that have exposure to china it's weighing on those stocks as well >> uncertainty over the fed's next move remains an essential focus for investors. steve liesman is having a look how market expectations may differ from the fed's thinking steve. >> there's a pretty big and growing split between analysts who follow the fed and traders who bet on the fed fund futures market 74%. highly confident about a rate cut coming this year in december even 52% for september meanwhile, morgan stanley

writes, "we now expect the fed to remain on hold until the back half of 2020 delivering hikes in september and december fed speak seems to back up the analysts over the traders at least for now, suggesting the market may be overly exuberant about coming rate cuts fed officials said they would abide higher inflation but haven't suggested that cutting rates is the way to fight inflati inflation. what would it take growth far below trend that's what neal cash kari said yesterday. some kind of economic shots through the trade channel. but maybe most importantly a change in the fed's concern about low inflation and how to address it fed officials would have to believe thain flation is too low and trending lower and the right response to the inflation is a rate cut wilf, so far that has not been a view widely expressed on the fed. >> steve, as always, thank you for that peter, a lot of people suggest that if trade does get worse that means the offset which is good for markets is going to be a more dovish fed. do you buy into that >> i don't buy into that my base case is really for a fed

that does nothing and it has less to do with trade and more to do with the situation in which the fed finds itself inflation has not been gangbusters certainly. but at the same time we're only 2.5% off the zero bound and i think the fed is going to be careful before it moves aggressively to do either a cut or a hike and it's going to remain reactive rather than pre-emptive. it is a bit odd to me that the futures market is implying such a high probability of a cut which i think equity markets also think is going to happen. but it doesn't seem like it's going to be in the cards this year because the fed really does want to normalize policy in my view >> barry zekelman i want to go back to you and this news around steel tariffs and those being lifted in canada and imports coming into the u.s. we had the former nucor ceo on in the past and wunt of the cases he made is part of the reasons those tariffs were in place on countries, allies like

canada, was this idea of back door dumb ng by places like china. how does the u.s. prevent that hang here and what does a deal in general mean in terms of steel supply globally now? >> it's not just a function of china. there's other countries that use other countries as a back door and it is a problem. my understanding under this deal is there's going to be made and melt provisions. in other words, the steel have to be melted and made in canada and then into a part and shipped over that whole chain has to be there for it to be exempt from those duties i would hope that if the steel was made in china, brought into canada and made into a part and shipped over they'd be a dutiable part, they'd be after that the real trick in this also is for canada to stop the dumping of that steel into canada. that just ruins the canadian market and hurts the canadian

steel mills in their home market it's going to be a little bit tricky you're going to have to follow country of origin. but we've been after that type of mechanism for a long time and at least that type of standard for steel trade to be upheld to. i think globally it's good for steel rices. i think it's great for trade between canada and the u.s and certainly mexico and the u.s. i think there was a lot of friction going on there particularly with how integrated our economies are. but hopefully we can act almost as a trading bloc, being a usmca trading bloc against unfairly traded imports >> barry, gauge for me the strength of your business today and if possible your take on the broader u.s. steel industry today compared to two years ago before this whole process began. >> yeah. i mean, literally under the trump administration, i mean, just when president trump got elected the economy took off

so our business has been on an upswing since then even after the tariffs were put in, it's a big positive impact we've hired in every factory we've increased production every factory. we've had record profit levels we've paid record bonuses to our employees. just recently we announced $150 million expansion, the largest tube mill in the world actually going in to make products that have never been made here before and that's on the heels of $13 billion of investments announced by the domestic steel industry so our company had confidence we'd have access of the right type of steel and steel to feed this type of investment. so it's been a dramatic increase, a dramatic change, and certainly the steel industry as a whole has done very, very well and it hasn't hurt any of the manufacturers we sell to everybody we talk to -- and remember, i'm a consumer of steel. so everybody we sell to is busy and growing.

so we're really, really positive on what we see >> barry zekelman, hanthanks for joining us peter cecchini stays with us for the full hour. we'll teak a dive into the latest developments in the china trade war. how to position your portfolio as tensions ramp up. >> and here's what else is on tap. >> still ahead, ipo mania takes wall street. pinterest plunging uber capping off a bumpy first week and a starbucks rival makes its debut. we'll discuss how to trade the newly public names plus bitcoinredo bakwn the one thing sending the crypto currency into a tailspin "closing bell" is back right after this break [ alarm beeping ]

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to search for something that you're not in. show me parks and rec. from netflix to prime video to live tv, xfinity lets you find your favorites with the emmy award-winning x1 voice remote. show me the best of amy poehler, again. this time around... now that's simple, easy, awesome. experience the entertainment you love on x1. access netflix, prime video, youtube and more, all with the sound of your voice. click, call or visit a store today. welcome back to "the closing bell." today marks one week since uber's debut ipos are going much more smoothly for investors bob pisani has a look at where the ipo landscape stands now and leslie picker has a look at starbucks rival luckin seeing strong gains in the first day of trading. but bob, let's start with you. >> i know everybody's worried and freaked out about uber and lyft but from my point of view the ipo market as opened up very nicely in 2019 i look at the big numbers, the

broader numbers. look here, we've got 56 ipos priced so far this year. that's a lot we didn't have any business at all in january and february because of the lockdown. 57%, nearly 60% still above their initial ipo price. believe it or not, that's a pretty good number it's higher than normal. the first day pop, which is the most important day, by the way, average 20%. that's pretty good historically you get pops of 10%, 12%, 13%, 15% overall the market's looking good and the big names, the names we talk about a lot, they're all above water except for the ride sharing companies. beyond meat you all know about that one zoom video, levi strauss pinterest is not here. i know it's down 10% today because everybody got out after the earnings but it's still up. pinterest is up 60% so far this year uber the important thing, that the rideshare hailing companies, the only two that are actually on the down side. what i'm concerned about is the next six months after a lockup

period expires back to you. >> remarkable turnaround in the last five minutes. it was up 23%. but thanks for breaking that down let's drill down on chinese starbucks rival luckin trading higher in its ipo debut. leslie picker joins us with the latest >> hey, wilf, trading higher by about 16% right now but that's down from the 47% surge luckin shares saw at the open today's moves come after luckin priced at the high end of the range. in a year and a half this coffee chain has opened 2,300 stores. most with a small retail footprint where drinkers order by app and the beverages and food are heavily discounted especially compared with rival starbucks. luckin up $241 million in 2018, about double its net revenue of $125 million >> leslie picker, thank you. meantime another recent ipo pinterest is having a rough day. that stock is currently down

about 12 1/2%. missing on the bottom line in its first ever quarterly report. ceo ben silbermann sitting down with our own jim cramer exclusively this afternoon saying the country is still in its growth phase take a look. >> yeah, we have really steady revenue growth 54% we're definitely in the growth phase of our business and trying to be really transparent and clear. and the reason we think about being in the growth phase is we think we're really early on in our journey. we're early on in the united states working with retail and cpg companies but we want to expand to small, medium size businesses and we're super early internationally where two thirds of our users are >> let's bring in gwen chemi, entrepreneur in residence -- o'talk more about the ipo market joining us at post 9 welcome. >> thanks for having me. >> i'm sure you have thought on what we've seen so far in terms of some of these big unicorn debuts including today has it really been, do you see

this as a bifurcation, uber, lyft, basically ride sharing versus everything else >> any company, any innovative company with an amazing model has had a hard time convincing investors of a way to make money. 2012, seems a long time ago but that's when facebook went public and their shares were down more than half in four months it's a mindset that -- on the private side there's a different time frame where we talk about the customer versus quarterly earnings >> both lyft and uber which are down are ride-sharing companies. the other thing they share is they're relatively old companies, 6 and 11 years old respectively does luckin have an advantage, therefore, by being so young on one level it's quite scary. it's a short history but on another the sky's the limit because we don't really have anything to compare it to >> china moves at a different speed from the u.s

china moves at 20 timesed speed and the valuation's probably 20 x as well. but to your question on uber and lyft, uber might sound expensive at $70 billion but eps is $86 billion. would you rather own ups at this point or uber? which is a new form of logistics transportation company i would take uber. >> that's an interesting comparison right there i want to go back to something you just said. in the private market there's this focus on the lifetime value versus quarterly there's a lot of focus on valuation right now. with keys companies that have already gone public, pinterest is a great example you saw top line growth. monthly active users increased yet because of that wider than expected loss stocks selling off pretty dramatically today. do you think that's why there does tend to be at least with some of these names we've seen

go public like uber in recent weeks, why there does tend to be this discrepancy between how the private market has been valuing versus public? >> you're absolutely right it's a different mentality the private markets we have to model cash flow and we don't have cash flow the analysts struggle that's why you have a lot of holds, you have a lot of sells it you really think about if you're transforming, the venture capitalists are not just buying software they're buying software that's transforming the old industries. if you think about it that way, you start comparing market caps with old industries. >> peter, does it inform your bullishness or bearishness on the public market? >> yeah, certainly look, i think it's an actually very interesting gauge there's been a lot of ipo supply, obviously. and the performance p of uber is very interesting to me clearly it's a very disruptive and transformative company but i think what's interesting about the entire conversation is do you want to own a company -- what's the next question

what's the valuation i'm willing to buy a story but not at any price i think that's what's interesting about these ipos do you want to buy the story without regard to valuation or should valuation be part of the story? for example, during the 2000s in the dotcom bubble people were trying to value things on multiples of revenue and other metrics that no one -- they basically invented to justify valuation. and to some extent we're seeing a little bit of that now it's not nearly as pervasive oregon bad as it was then but we're seeing a touch of that >> the pipeline of ipos the rest of the year, any that stand out for you? >> i think any transformative company. i actually think luckin is cheap. versus 95 billion starbucks. ing? to keep an eye on. >> i think it's up to 4 1/2, around there, since today. but there's still a big gap. i get it gwen, thanks for joining us.

>> thank you >> be sure to catch cramer's full exclusive interview with the pinterest ceo ben silbermann that's tonight on "mad money" 6:00 p.m. eastern time let send it to make santoli for a look at the food industry performance so far >> why look at the food industry couple reasons obviously luckin's ipo has something to say about the general space. food and restaurants we also have this ipo -- i mean this etf which has a very cute ticker symbol pb and j which has outperformed the market it's right in line with the market but on a year to date and one-year basis it has handily outperformed starbucks is the biggest holding in here. starbucks of course has been a big outperformer up today even despite luckin getting a lot of enthusiasm. you also have names in here like smucker, j.m. smucker, which is pretty much at an all-time high. so very quietly i think this is part of the net defensive orientation of the market and of this ability of the market to

kind of stay supported near these levels thns a very heavily traded group because it seems very sleepy and there's not much happening on a day-to-day basis but it does reflect i think the appetites of investors right now in terms of wanting steady defense, cash flow dividends at least for mature companies, guys >> a lot to digest there mike santoli all right. well,we have about 35 minutes np the bell. we started the day down. then we went up. now we're down again dow currently down 87 points, .3%. s&p also turning lower as well as the nasdaq and the russell. kayla tausche reporting china trade talks have stalled after the break we have the latest installment in our all-star fund manager series why one expert is looking for up emgi mkethe erngart. that is next later bitcoin shedding billions of dollars in market cap over the last 24 hours

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experience amazing at your lexus dealer. a little lower in the last 20 minutes or so after headlines from kayla tausche as to whether trade talks with china have

stalled. we're down only 91 points. 0.3% on the dow. that puts us down about 2/361% for the week as a whole. still improved turn of course since monday's big decline >> let's send it to rick santelli at the cme for today's bond report. hey, rick. >> thank you, morgan as the deterioration wilf just mentioned occurs we have seen impact the entire impact is down on the day. short maturity, two-year notes unchanged. one week on 10s. it's been holding right around what is still the low yield closing the year at 2.37 but it is now down nine on the week barclays three-month investment grade. you sigh some deterioration there which makes sense considering some of the nervousness in the marketplace but it's still 118 basis points which historically was pretty good for investment grade spreads. dollar index huge day even though it's only up an eighth of a cent it is now only a quarter of a cent away from a

fresh 24-month high. as you open up the chart on the dollar index you can clearly see on the mid april chart we don't have far to go and when we look at the currency versus the chinese yuan it is at the best levels since november of last year wilf, back to you. have a good weekend. >> keep an eye on that chinese yuan today marks the last day of our all-star fund managers week. joining us now on the emerging markets he likes in this environment is samy muaddi, portfolio manager for t. rowe price. thank you very much for joining us let's get straight into it and get some picks despite the trade war you like some chinese areas of credit >> thank you for having me on the program. yes, the conventional wisdom with respect to the u.s. and china, if two elephants are fighting is to stay out of the way. but i would buck that trend. i would say embrace volatility t. rowe price has been doing

emerging markets in 40 years i've seldom seen better opportunities in asia credit in my career than the last year and let's look past the headlines and focus on the returns. everything that's happened in the last 12 months our asia credit strategy has returned 8%. that's outperformed the s&p. so i think if you look past the headlines, embrace the volatility and look for where fundamentals have been oversold you can be rewarded for being a contrarian in this environment >> do you think china is investable to that extent with that level of confidence or is it going to get hit harder by this -- >> i think china has problems that go well beyond trade and the trade war. it's clearly a headwind. but china is ndergoing a transformation from an export driven economy to a consumer-based economy and as we've been seeing it has not been easy. it's been doing it with fits and starts it's implemented stimulus measures it pulls back on them. the economy grows. the economy grows less quickly it's obviously continuing to grow even recently we saw massive

aggregate finance activity in the beginning of the year. we saw a full 1 pun basis point cut to the rrr and more recently a cut to the rrr to small businesses to 8% which is a massive move but money supply is not responding gdp is not responding. and even the pmis, which did go modestly into expansion again, really didn't react the way you would have thought given the massive amounts of stimulus. china has problems well beyond trade and it really is that shift that's going on from a expo export-based economy to a skoungs-based economy. >> in terms of emerging markets above and beyond china what else do you like and why? >> south africa and brazil ironically, they actually have a lot in common. you have political transition. you have ten years of poor leadership, bad economic growth, starting to correct. but importantly what we're seeing is prospects for reform particularly in state-owned enterprises.

you make the most money in my market when things are terrible and start getting better, and i think that's been the story of the last 12 months in bras the and we're going to begin to see that in the next 12 months in south africa two of the markets i'm overweight today >> samy, thanks for joining us >> great thanks for having me time now for a cnbc news update with sue herera hey, sue >> hello, morgan hello, everyone. here's what's happening at this hour russian president putin says new types of laser weapons developed in russia will significantly enhance that nation's military capability he spoke during his meeting with top officials in sochi former army intelligence analyst chelsea manning has been sent back to jail, saying she would rather starve to death than testify to a grand jury investigating wikileaks. the judge says more jail time may cause her to change her position a california man was sentenced to 20 months in prison after pleading guilty for threatening to kill the family of fcc chairman ajit pai

this over the regulator's successful efforts to repeal net neutrality rules prosecutors say the man sent the e-mail threats in the hopes it would force pai to reverse his position and the louvre museum in paris paying tribute today to the architect of its giant glass pyramid. i.m. pei who died on thursday at the age of 102 you can see there dozens of employees gathered under the pyramid, which serves as the museum's beautiful and monumental entrance. you are up to date that's the news update this hour wilf, morgan, i'll send it back downtown to you. >> thanks very much for nap we have got 28 minutes of trade left let's just check in on the markets. we said we had a little bit of a pullback 100 points or more lower on the dow. but we're down to more like 90 points on the dow. down 0.3% or so. a little bit more than that for the nasdaq, the tech-heavy nasdaq down 0.9.

but improved through the course of the week since monday's pullback we've got a news alert on wynn contessa brewer has it for us. >> reporter: we have just had confirmation from mgm and wynn resorts they have been in preliminary talks about the possibility of selling encore boston harbor to mgm resorts this is the $2.6 billion property that has just been cleared to retain its gaming license after more than a year of "me too" investigations involving the scandal of its former ceo and founder steve wynn the company says that -- mgm says that when these opportunities arrive that they have a fiduciary responsibility to explore them. they say they have commitments, both wynn and everett where encore boston harbor is, and mgm in springfield, they're exploring the possibilities. i want to point out mgm's ceo has been addressing this, this possibility of acquisitions and he's made it clear he's uninterested, that he wants to bring his newest projects to

profit and he's interested in increasing free cash flow and for its part wynn resorts has just cleared this regulatory hurdle so analysts that i've spoken to say it doesn't tamake a lot of sense. we'll continue to follow it. by the way if you look at wynn resorts, down more than 3% on the day. >> yeah, down 4% on the day. i guess a large part of that is because of its heavy exposure to china and macau. and it was down quite a lot before you broke that news but contessa, thank you very much we'll see you later. stocks taking a hit late day after kayla tausche's report that u.s.-china trade talks have stalled. how to best position your portfolio in lieu of this trade fight coming up. i'm so happy. ♪ whatever they went through,

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kayla, let's start with you. >> wilf, this week it's been relatively quiet on the u.s.-china front that's because i 4r5er7bd from two sources briefed on the matter that negotiations between the u.s. and china appeared to have stalled with both countries doubling down on their positions

after disagreeing earlier this month. according to my sources the talks of scheduling the next round is in flux because it's not clear what the two sides would even be negotiating. you have to decide what's actually going to be discussed and i'm told by these two sources there's not agreement on that front yet and then you have seen both sides really dig in to their positions this week. in china you've seen state media take an increasingly nationalistic tone you've seen the central bank propping up the currency and also china cutting back on orders of u.s. pork in the last week according to data that we received here from the usda. then you have the u.s. with the trump administration unveiling a new ban on foreign companies and countries investing in the telecom supply chain and a specific black ligs of huawei and its affiliates despite the fact that had been going on and under investigation for some time, trade sources say that the release of that had been shoved to try to smooth

relations and the release of that this week did the opposite of that. so we'll see whether there can be a breakthrough in a matter of weeks but the reason you are not seeing any dates come out from the u.s. and china is because those talks are still at this point in flux. >> all right, kayla, thank you very much for that still moving the market. let's get to bob with his take on those moves >> let's take a look at the s&p. to kayla here, that's what this is all about talks have stalled and the market is now afraid there's going to be retaliation coming from china. the state media had been warning about this all week. what form could it take? we don't know. it may be more than just tariffs. take a look at caterpillar industrial names they haven't done anything all week caterpillar's down 17 for the week not just tariffs they could say we don't want you doing business with caterpillar to awful caterpillar's customers in china that's not far-fetched the big industrials all act the same way 3m, same situation we talked about the 52-week low

in 3m. it too is sitting at the lows for the day. same kind of fears out there watch for the retaliatory measures from china now. guys, back to you. >> bob pisani, thank you the nasdaq is also losing ground this hour. we've got tech stocks, especially semis, trading near the lows of the session. and bertha coombs is going to break it all down for us bertha >> all this week we've seen semis as a barometer for this sense of whether there's going to be retaliation. that is really the big concern within tech, what that's going to mean for tech companies that have exposure. semis down two weeks in a row. apple also among the losers there, down two weeks in a row for the first time since last year down 5 1/2% after a 6% decline last year. chips that are exposed to huawei and xilinx and qorvo sky kor skyworks and qorvo off 15% for the week the ones who proved they can

work with thun certainty are the ones this week, we saw cisco and applied materials both offering very bullish outlooks saying they have this situation under control, at least for now. that's what has them among the big gainers this week. biomarin among some of the biotech that's have done well with these outlooks for the conference next month. back over to you guys. >> bertha coombs at the nasdaq let's bring in libby cantrell, head of public policy at pimco to keep talking trade here and help us break it all down. libby, thanks for joining us huawei we're getting these reports now that profits stalled and actually when you look at the situation that's going on with this executive order, with this ban essentially on chinese companies coming into telco in the u.s., it's pretty much a bipartisan issue in congress as well which makes me think it could last longer than potential trade talks. how should investors be asession all of this?

>> that's exactly how we've been characterizing this to our clients. that there was a real risk that things could get worse before they get better. not only with obviously huawei as judith mentioned but also the tariffs. ustr has put out a notice for tariffs on $300 billion of goods. they have not obviously moved forward with that, but they have positioned themselves. it looks like right before the g20 meeting at the end of june to really try to put maximum pressure on the chinese. this does look like it likely will escalate before it gets better and i think that end of june g20 meeting is going to be very important for the markets. >> libby, do you feel like the good news we got earlier today on auto tariffs with europe or on steel tariffs with canada was directly linked to now the breakdown of talks with china, going harder with one, does it

mean playing softer with the other? >> i think that's exactly right. i think you have to look at these things holistically. look at president trump's trade approach holistically. of course the tariffs have been a big obstacle for republicans in congress. and to move forward with the usmca. we can't overstate the optimism that democrats are going to necessarily get on board but certainly that mitigates one obstacle auto tifshz is another to your point he's trying to clear the decks, refocus our allies focus on china, and i think that indicates this administration is digging in more certainly than what the market had expected a week ago >> talking about fear earlier in the session and on the call this morning they basically said they are not planning on, based on how they're cutting production, they're not planning on a resolution between a u.s.-china

trade situation. is that possible properly placed into the market? >> i don't think it has been r. and i think the market itself had been farly priced into perfection, especially as we broke to 2900 not long ago trade was not being properly priced and i think the huawei situation is emblematic of the complexity of this xhoerks. it is multifaceted it involves security it involves value chain. it involves technology transfer, i.t., and a structural shift in the thought process the chinese government has to make in order to give up the things we need to be comfortable with the deal i've negotiated with the chinese. this is the way negotiations with the chinese go. you have what you think is an agreement and the term sheet comes back and you know what it might not say exactly what you think it's going to say and you go back and negotiate more in a deal this complex and this

multifaceted i would expect it to go on for some time >> libby, a lot of people have suggested over the last year or two that taking on china would have been more effective if it had been all of the allies together rather than just the u.s. against china do you feel like the progress with europe, with japan, with canada today could lead to that sort of approach or is it too little too late in terms of repairing those relations with the allies in. >> i think it's a great question it's a great point i think a lot of people who were critical of the president withdrawing from the transpacific partnership for instance criticized him for that they reasoned that was not only a trade agreement, it was supposed to be isolating china from kind of a national security perspective as well by bolstering allies in the region. so yes, is this a positive step forward? absolutely however, if you read the proclamation from the white house about auto tariffs, this is very much just a pause.

it does not necessarily completely mitigate the uncertainty around the possibility of auto tariffs. it does seem like the white house does think that auto imports poise a national security risk. examini and of course under the section 232 statute that allows the president to impose tariffs on autos if he wishes this is sort of a truce for now with europe and japan. but i think the markets would be misplaced if they didn't realize this was still a risk albeit longer term than we thought. >> let's go over to mike for a look at the divergence between tech and hardware and software amid the china trade war mike >> it's actually become a pretty stark divide here. if you look at the semiconductor etf and the have etf, the software etf has been one of the most reliable leadership groups in the market and is down this

week certainly well outperforming boiled into this relationship is investors' information of just how china will go. how the portions of cyclical stocks will be somewhat more stable quality defensive stocks, that would be software you're seeing the split kind of widen out here this is just this week year to date semiconductors raced ahead of software. they had a deeper low in december, raced ahead. and now you see at the very end of this software nosing above. once again it's just another way of haeshz iing how the complex f the market is shifting stability, relative defense and quality. so hardware, software is part of that >> 12 1/2 minutes left of trade. we are lower you've got to keep focused on kayla tausche's twitter feed it was her reporting on the softening tone -- the worsening tone of trade talks with china

but only -- russell down over 1% as a whole now the s&p is down 0.8% >> what a volatile trip it's been to get there. coming up seema mody >> autbo $21 billion has been wiped out across this crypto currency industry. we're going to tell you what's behind the big move next on "closing bell.

welcome back seema mody >> a significant sell order caused a mini flash crash in bitcoin. the question now is how will the industry respond michael morrow of genesi capital says speed bumps which exist in other markets like the stock market could potentially be implemented in the crypto market but the challenge will always be the global nature of the asset class. for example, this sell order was executed at an exchange based in luxembourg so efforts in the u.s. wouldn't have prevented this particular event. till regulators are able to get on the same page experts saying there's nothing to stop another event like this from happening worth noting there are a number of reputable investors in the broader crypto currency space.

polychain and union square among others >> we have a market crash on cbs. julia's joining us with that >> lionsgate shares rising about 14% today on reports of the information cbs has made an informal offer to buy starz. cbs and lionsgate both declined to comment but i did speak tie number of sources about this everyone confirming that cbs and lionsgate have had conversations about starz. some sources telling me the talks have been more advanced than others. one says there is an informal offer on the appear, though, th nothing is imminent and as we've reported in the past if cbs did make an offer for starz before it was bought by lions gate. so there is an argument out there that starz would fit very well with cbs's other assets of course there are a lot of other things going on here cbs expects to merge with viacom

and cbs has just launched an am platfor apple platform >> the broader markets with seven minutes left of trade, we are down close to 100 points on the dow. the nasdaq and the russell down more than 1% nasdaq just shy of that. we're back with the closing countdown in just a moment and you should be mad your smart fridge is unnecessarily complicated. but you're not mad, because you have e*trade which isn't complicated. their tools make trading quicker and simpler. so you can take on the markets with confidence. don't get mad. get e*trade and start trading today.

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welcome back to "closing bell." just under five minutes to trade. joining us to discuss the krad is shawn cruz from td ameritrade how do you frame this week's bounceback from monday but lackluster end today >> if you look at the way we've closed the past couple of days you've seen the market give back some of those gains we made going into the close if you look at what we've done since the close last friday you've seen a defensive tone take place where financials, industrials, materials have actually been selling off and you're seeing outperformance in staples, utilities and health care it's really what you would expect out of the market becoming a little bit more risk averse >> how much of this is all the headlines back and forth regarding u.s.-china trade and how much of this is the fact that there seems to be an expectation that we're going to get more tweets, more comments

from the president as all of that evolves over the weekend? >> i really expect a lot of that to play out over the weekend when you think about it we're not just dealing with what's going on with u.s.-china trade we also have a little bit of uncertainty over the escalating tensions in the near east. and also some interesting developments out of brexit the past couple days i think the political talks are good that goes on over the weekend. we're probably going to get a lot of headlines out of that and that will celt the tone for how we open monday and then we have some other things we can look to next week like retail earnings out from some more retailers. then also the g20 conference going on which i think markets will be focused on >> just under three minutes left to trade the dow's down 0.3%. the bounceback we got tuesday did it make sense to you >> no. it was confounding to me and i didn't feel like the narrative or the tone around trade talks changed much i think it was about positioning. and investors had gotten a little over their skis with respect to their fears about trade and had positioned prior to that very aggressively in the

market so you saw a huge correlation rally. and i think the dispersion we're seeing now as your last guest mentioned makes a big difference to the way i think about the market the rotation into defensive sectors. and the bounceback to me is not going to be very long live i think we probably continue to sell off on the headlines around trade but also around the data around the world that's been weakening. >> peter, thanks peter sticks with us shawn cruz, thanks for joining us from td ameritrade. time for the closing countdown just under two minutes of trade. mike and bob, over to you. >> thank you very much as you've been talking about a little best a soft close to the week we did see the three-day rally, bob. in each of those three days the market did soften up toward the close. today the indexes are essentially round tripping they estarted lower today, littl bit of a weak rally. we've been talking about the fact that an obvious level of hesitancy over a weekend when it seems like there could be the prospect of a tape bomb

headline >> the market is concerned that chinese retaliation is coming. that's the concern you heard from kayla trade discussions in flux. that means nothing's happening right now. and the markets a little concerned about that so what could happen you saw today. a big pork deal with china they just canceled it. just suddenly went away. that could happen with any big u.s. company doing business. a boeing, a caterpillar, all of a sudden big deal is announced, could come virtually out of nowhere. we did have good news on nafta, good news on european trade, and yet the markets didn't seem to care that much obviously, china's still the big unresolved issue >> certainly the big news swing over the last three days the market attempting to move away from it a little bipt and today i think we should i guess point out looked like for the week we'll be down a little less than 1%. you had the first 5% dip of the year that did get bought decent u.s. economic numbers >> consumer sentiment, 15-year high that was like wow, is that a real number. so yes and that's the great thing here.

it's the trade issue that is the marginal mover of global growth at this point. >> bob, have a good weekend. ringing the bell at the big board. fast celebrating its ipo, which by the way that stock was up more than 40% today and up at the nasdaq it is portland bancorp and the second hour starts with wilf and morgan now. >> thank you for joining us. welcome to "the closing bell." i'm wilfred frost. >> and i'm morgan bren nn for sara eisen mike santoli is going to be joining us here at post 9 in just a moment but let's take a look at how we are finishing the day and the week on wall street as stocks settle another volatile session dow industrials first-quarter lower .4%. 25,762 down exactly 100 points. this is the first four-week losing streak for the dow since spring of 2016

the s&p 500 also finishing down .6 of 1% 2,859. nasdaq one of the worst performing indexes, down 1%. and the small caps also trading lower as well. >> defensive tone. only one sector positive today was the utilities for the week as a whole the s&p down 3/461%. what were the top performing serktsz for the week real estate and utilities. defensive rotation this week we've got all the angles covered in this volatile market with our expert panel plus courtney reagan and diana olick looking at what could be the big market movers next week but first breaking news this afternoon. the u.s. reaching a deal to lift steel and aluminum tariffs on canada and mexico. bruce hayman from former u.s. ambassador to canada mr. ambassador, thank you for joining us >> good to be here >> what's it take? do you see this as good positive progress >> this is definitely positive a year ago the president put on

steel and aluminum tariffs on the basis of national security on canada, which was ridiculous. and this is a retreat for the president. at the end of the day he got nothing for it and it caused a lot of pain on farmers and small business people and consumers in the united states. but this is good news to pull this back at this point. >> overall, we've gone backwards. do you think the relations can be healed with the u.s.'s various allies >> i'm sorry a lot of noise in the background can you just repeat that >> i'm sorry i have to say it loudly, ambassador i was asking whether or not you feel like some of the negatives from having the tariffs on in the first place can now be healed or whether damage has been done to the relationship long term. >> so there's definitely damage being done in a lot of other areas with this relationship but this is an important impediment that we can get and put behind us.

now the key is we have to pass this usmca in all three countries. i know the prime minister's committed to getting this done but we still have some work to do with the house democratic leadership and some of the things that they've been talking about for a long time on enforcement and labor and environmental standards. and biologics patent life. they had constructive conversations this week. look, i think we're in a much better place this friday than we were a week ago. >> ambassador, we've been very focused here on the u.s.-china trade situation and the fact those tensions have continued to ratchet up but to have a deal like this move forward in terms of removal of tariffs on canada, on mexico, perhaps hopefully making it much more possible to see usmca push through, you've also got these talks with japan we've got the pause button now in terms of tariffs on auto imports from europe. how important are all of these

simultaneous talks for the u.s. to help ensure or i guess help offset any pain we could see from long-term tensions with china? >> well, the president had started off attacking our allies a year ago with the steel and aluminum tariffs and especially the threats of auto tariffs. and now finding itself deeply engaged in a china battle here and finding very few allies at the table. so i think putting a pause on the auto tariffs, pulling away from the steel and aluminum tariffs on canada and mexico opened up the possibility of having more allies at the table and helping us deal with the china issue and not be alone, which we have been for a while i think this is a good move. i think, though, we have work to do the president sees things in binary outcomes. i win, you lose. this was a real losing year in the steel and aluminum tariffs for the united states of america.

now let's reposition ourselves and maybe get ourselves in a good place >> ambassador, thanks for joining us >> pleasure. >> joining us now to talk about the market day is our friday mega panel peter cecchini from canter fitzgerald is still with us. laura kane, global ubs head of american thematic investment megan shoe, senior investing strategist at wilmington trust and todd shablonski, chief investing strategist at principal global investors megan, i'll start with you how would you characterize the market action we've seen today and what should investors be looking for as we go into another week with more data, more earnings, more trade uncertainty? >> it's a great question we've been watching the market movements over the past week and we've been rather surprised by the reaction we did have a sharp sell-off on monday but the market came back in pretty good fashion. a little bit weaker today. but we took the interpretation of what the market was doing

over this week as perhaps a little bit complacent. so we took a little risk off the table last week as an opportunity because we saw some down side risks from the escalation of tariffs. and we think the market as a whole seems to be operating under the assumption that cooler heads will prevail and we think that's perhaps not the right assumption to make at this point we think eventually a deal could be had but we could be in for a pro trablthed period of uncertainty and volatility around trade >> mike santoli, we've ended the week down around a percent or so, albeit a lot of people also pointing to the fact that china's down around 2% and whether you're comparing it week to date, month to date, one month, the u.s. is outperforming on these trade headlines headlines relative to china. >> sure. if the contest is you don't have to outrun the bear you just have to outrun your competitor who's going to get eaten by the bear,er, we're winning on a relative basis i don't know if that's necessarily what investors want to bank on my interpretation this week i

think you can have both things be true that it was positive the first 5% pullback of the year was bought, you that did manage to put together a few days of rally with a little distance between the support levels of the s&p, but then it was really than convincing or impressive a showing. breadth was not very good. not a lot of energy behind the buying it just seemed a little bit mechanical i think you can kind of essentially say the mccartney did enough to say that maybe we priced in what we know right now about the trade situation and the economic fundamentals but has not necessarily persuaded anybody to think we're necessarily going to brax to the highs. unfortunately it's a little best an ambiguous takeaway from the week >> laura, very defensive tone to the market not only today but this week. utilities, health care, consumer staples holding up relative to the rest of the market here. what is the takeaway and is that where investors should be positioning themselves >> i think we're seeing this ongoing push-pull between the

uncertainty around the u.s.-china trade situation and then the reassurance that we're getting from corporate earnings. so right now we're in the very tail end of the first quarter earnings season and so far what we've seen is results beat by around 4 1/2%. much better than expected. coming into this season it was expected that profit growth was going to decline i think we're going to continue to see this dynamic where the china situation continues to weigh on the markets but at the same time we have corporate earnings, corporate guidance to reassure us and we also have a pretty strong economic backdrop. so going forward, i would say, you know, our top overweight are technology and financials. so we're kind of taking an approach where we want to stay exposed to growth but we're also protecting ourselves on the down side with an underweight to industrials. >> a lot of people focusing on which companies have the most direct exposure to china but also people are overlooking the impact on fdi, foreign

direct investment. todd >> oh. sorry. >> todd is there sorry, todd, continue. >> correct thank you. on the question on fdi the key variable there is a lot of people look at direct trade as being the barometer of global commerce and quite frankly i think fdi is a far more important metric to understand the nature of global trade. we've seen fdi retreat the last several years but encouragingly we're optimistic that fdi flows reinvigorate next year alongside i think a resolution between trade tensions in the world's two largest economies. there's reason for optimism i think beyond what we've heard. >> peter, we've also seen quite a big move in the chinese currency this week on the surface a weakened china currency could help our exports. is that the main story >> i think it's part of the

story. on and off the currency has actually been used as a weapon in the trade war, if you will. right now i am concerned that china will allow the currency to depreciate a little bit more we're seeing the spread between the offshore and the onshore currency has widened quite a bit, which might indicate that they're willing to allow that to happen and in fact our year-end target for the yuan is actually 7.25 because i do think they're going to test the limits of the markets and try to punish us a little bit, if you will, with a more volatile currency if we remember what happened in 2016, the fears of a yuan devaluation catalyzed two bouts of market volatility >> mike, do you think a stronger u.s. dollar's going to start to weigh on investor concerns back close to 98 on the broad index >> it's certainly at the highs but it's been a very orderly kind of march up to those highs. so i don't think it's necessarily going to come as a shock. it's one extra headwind if you're talking about earnings

making, beating next quarter and things like that i do had i it's one of those things you look around the world and say it doesn't seem as if risk taking is back in fashion just yet the dollar is stronger the yen is stronger. the chinese currency weaker. and in general just yields being so depressed and so the whole thing looks like okay, we're kind of hunkered down for this low yield slow growth backdrop again which may turn out to be wrong but right now nobody's really willing to take an aggressive bet it's going to turn >> we discussed this, mike the rates markets are telling a very different story from the equity markets global yields are extremely low. activityglobally has been slowing. we see it in japan the boj just came out with some very cautious statements we're seeing it in europe. european tmis have rolled over therefore the long end of the german curve, the long end of the jnds curve raul are all at or even negative our curve is near its highs, 2 1/2% all-time highs. so there's a little bit of a

disconnect there >> let's move on and talk about the two successful ipos today. starbucks rival luckin company and fastly both first-quarter the session higher but it's been a rocky few weeks with companies going public like highly anticipate ipos like uber and lyft falling in their first trading days laura, does valuation matter less when you see significant structural long-term growth with some of these companies? >> so i think looking at the growth potential for these companies is very important. some of the hype around these companies is what is keeping the ipo market quite high, and we expect it to continue to be this way through at least this summer but looking forward, we are going to have to see these companies for the first couple quarters of earnings investors will be looking to see that these valuations are justified so they'll be looking for both sales growth and the ability to generate earnings.

>> meghan, there were actually three ipos today because we had aventura which also ended the day positive today i think it's the second biggest ipo behind uber for the year in terms of the performance you saw there in those new companies versus what we've seen in the major averages, is this new companies, new business models, things that investors are excited about or something else? >> that's a great point. i think first of all, it is a challenging time to be coming to market with an ipo there's a lot of geopolitical headlines and we are focused on things that are not necessarily as tied to the underlying business of these companies coming to market but we are seeing we're in the midst of very rapid technological innovation and new markets that are opening up across various industries. and so these ipos are sometimes difficult to valuate and take a little bit of time because they are opening up new markets and really on the next frontier of

some of these areas of the economy. >> bob, your thoughts on ipo pipeline so far? >> i think it's been interesting to hear all the talk about the ipo market if you look at the last two years of the first tech bubble, one month out the average ipo was up 69% in the last two years from where we are now these ipos are up about 15%. that's including some of the more recent data on average it's our view that yes, it's a good time to do an ipo but at the same time those conditions have existed in many other areas and they've also existed in areas coming down the pipe some of the urgency and timeliness in the ipo market might ease off >> mike, the fact that luckin has got away despite a tough week on china headlines, how encouraging is that? on the flip side i guess it also justifies why starbucks pushed so hard in china in recent years. >> without a doubt i do think you want a market that's receptive to relatively

unique concepts. it's very difficult to find a domestic chinese consumer play growing super fast not about exports and trade. so i understand why there's a constituency for that. the two things you would worry about about an ipo market getting a little bit more active is one, that it's just ridiculously speculative and every deal goes to the moon and people throw money at every deal and the other one is companies can't come public because they shut the window, because nobody wants to take risk i think we're in between on a net basis it's positive even if every deal is not going to reward you from the -- >> rahel solomon has our story for us >> reporting just about 15 minutes ago that hedge fund trian and-leg mason could be nearing a settlement citing sources familiar to the matter this could mean that trian led

by nelson peltz -- it could avoid a proxy fight. reporting earlier in the week that trian could be trying to wage a campaign to get legg mason to cut costs and approve the results. we have reached out to trian we haven't heard back just yet we're also putting in a call to legg mason soon as we hear something we'll let you know >> don't go anywhere we've got a lot more still to come here on "closing bell." >> announcer: coming up, facebook's sandberg speaks out >> our bottom line is getting this right and you are making real changes that have impact. >> we'll get reaction from a prosecutor calling for a tech crackdown. plus the return of the meg our friday mega market panel breaks down the two key sectors to watch next week and we'lte yl llou how casinos are cashing in on the "game of

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investors still going to be keenly focused on how each company is going to address plans to deal with potential new tariffs. key quarter for home depot and lowe's because the spring season for them among the most important of the year. the persistently cold and wet weather we've had in parts of the midwest and northeast could prove troublesome for the home improvement retailers. target reports on wednesday. walmart turned in a solid quarter but remember, grocery gives the retailer a bit of a lift in a way that target doesn't share. they don't have as much food as a percent of sales separately ceo brian cornell has told investors the retailer can use a variety of lefshz and other categories to help offset pressure from tariffs. but that was before the ratcheting up of talks and possibly a fourth tariff tranche. we're going to listen to see if we have any updates there. back over to you

>> okay, courtney, thanks very much for nap let's get back to our friday mega panel for reaction everyone is still with us. from peter, laura, meghan, todd, and mike santoli mike, it's been a good week for certain stocks in the space. the question is whether it can be repeated. i guess the retail sales number was the outlier when it comes to the u.s. data. >> retail sales obviously down industrial production not great either consumer sentiment number that was reported today was way off the charts to the up side. it seems like you have the makings for these companies having a pretty good run any environment where walmart can have domestic comp sales growth 3.4%, obviously there was hopefully you would think enough to go around the question was whether the market would foeblths on that as opposed to focusing on vulnerability to further china tariff measures and all the rest of it. it's interesting how even people who like cyclical plays are on the domestic economy it's not retail so much people

are going toward it seems like there's a lot of noise. >> what do you think would be more important with some of these retail names reporting next week? what the read-through is in terms of the data, the consumer in the u.s. or what the potential cost pressures are with the tariff overhang >> sure. i think it's going to be a balance and i think we're going to see differentiation within the space. i agree that on the consumer fundamentals side the consumer looks very well supported, confidence numbers look good i wouldn't put too much stock into one retail sales number so overall we expect the consumer trend to be strong but then balancing that with rising costs from tariffs and also the potential for the headwind of rising wages and how that may influence retailers' bottom line so i think we're going to see a differentiation within the retail space and something we've been looking for is evidence of pricing power. so those companies with strong brands and strong market share and concentrated industries, these are the places where we think there's a potential for outperformance relative to the

broader retail space >> meghan, staples or discretionary for the rest of the year >> that's a good question. we actually increased our exposure to staples last week in light of the escalated tariffs we still feel good about the u.s. economy and the u.s. consumer i think for retail quarterly earnings for the first quarter we'll be looking at some -- there were some mixed retail sales data in the first quarter. we know the consumer was a little softer in the first quarter gdp print but by and large the most important thing for the consumer is the labor market and wages, both of which are doing very well. but that next round of tariffs is going to hit a lot more consumer-oriented goods. so that is something to be watching and i agree with laura that wages are another input cost that retailers are going to have to figure out how to pass on >> todd, what do you make of that gangbusters consumer sentiment reading we got today >> well, i'm impressed that consumers have that kind of enthusiasm it reminds me of the kind of

enthusiasm i think we're seeing from investors today one of the key investment themes i've been focusing on has been the appetite for risk and just how mu how much recency bias is informing expectations the high return low volatility paradigm seems unsustainable to me and we're seeing it here in may. standard deviation daily in the month of may on the s&p 500 is 16%. over the previous three years it's 11% so we're seeing volatility come back to the market and i'm just not sure that even with the consumer confidence that you're seeing investors fully appreciate the volatility that's coming into the portfolio today. >> to the point of all the data this week, how strong is the economy? do you believe the data, the equity market move or the bond market move which paints something a bit more negative? >> it's interesting. i might be a man on an island on this panel i actually don't think the consumer is as robust as i think some of the other panelists do

i think we've actually had pretty volatile retail sales they haven't been that great and wage growth hasn't been great apart from some specific increases at amazon. and real wage growth has actually not been above 1% for very long at all and wage growth has been very much lackluster for this recovery i'm also concerned because lending standards are starting to tighten not just for companies but consumers and if you read through a lot of the banks they're actually saying they're pulling back on the amounts of consumer credit they're extending to their customers. so i'm a bit concerned that the michigan confidence reading, and it was a bit of an outlier frankly on the equity market rally. >> that is a good segue into our next topic which is president trump discussing the mortgage rally today. diana olick as the details >> president trump just spoke to an audience of realtors here mostly a rally on the economy but he reemphasized the need to

reform the mortgage market, specifically getting freddie mac and fannie mae getting out of conservatorship. the lead treasury adviser on that craig phillips resigned on monday mark calabria will be speaking with a mortgage bankers conference i'll be there with more details his own plans to recapitalize the mortgage giants, potentially make them public companies again. we also get a read on sales of both new and existing homes for april as well as toll brothers earnings back to you guys >> diana, thank you. meghan, your thoughts on housing and the data we could get next week >> housing has definitely picked up this year and we've been happy to see that. of course it's very tied to the drop in interest rates, the drop in mortgage rates. what's interesting to us is mortgage rates are pretty much right around where they were when the fed started their tightening cycle we've done a round trip now. that's a good thing for those

areas of the economy like autos, like housing that are tied to interest rates but we don't see housing being a huge driver really in any direction. we didn't see it as a big detractor last year when it started to roll over now that things have picked up a bit that's a good sign for the economy. but plobl nrobably not expectede a huge boost to the overall economy except a relatively smaller version. but definitely a good thing for those areas of the economy and the consumer >> more will definitely be revealed next week thank you to everybody on our mega panel peter cecchini, laura kane, meghanshoe, and todd jablonski coming up, a top state prosecutor will tell us if he agrees that facebook's co-founder chris hughes' argument that the social media giant should be broken up. but first jane wells looks at how president trump's tariffs are impacting tomatoes and restaurants. >> this goes way before trump. back to the '90s we're living in the salad days of cheap food.

but now american farmers say they're getting a rotten tomato deal, that the mexicans are dumping. they're starting a food fight in your burrito bowl when we come back get it.

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the nasdaq down 1.3% for the week the russell was down a full 2.4% for the week u.s.-china trade tensions sending stocks lower that la last hour of trade on new headlines from our own kayla tausche. kayla joins us now two things going on today. better news on trade with allies worse gnaws on trade with china. do you think those things are directly linked? >> not necessarily, wilf, and i think a lot of republicans would say this is how the trade fights should have been structured all along. on one hand you have these long awaited tariffs being lifted on canada and mexico on steel and aluminum and you also have the shelving of a decision on auto tariffs for europe and japan but the administration is digging in on china. and we thought there might be a chance that we would end this week with an announcement of dates for the next round of negotiations in beijing. earlier this week the treasury secretary said he was open to going, he expected the next round would be there

but i've learned from my sources that both sides are doubling down on their positions. the u.s. says that china reneged on its commitment. china this morning called the u.s. position insincere. and i'm learning these schedules are in flux because in order to decide when and where negotiations are going to take place you have to figure out what you're going to be negotiating first and there is still a wide gap between the two sides on that right now. >> kayla, how does huawei and all the developments we've seen in terms of an executive order, potential ban on supply chain for, you know, 5g rollout in the u.s., how is that factoring into all of this? >> well, certainly beijing is not taking it sitting down the administration would say it is separated from the trade discussions, it was a commerce decision and it came from a different part of the trade

negotiations that being said the beijing statement in response to the actions said that the u.s. was essentially deteriorating bilateral economic and trade ties through these types of actions and that it needs to be -- needs to do more to encourage business cooperation between the two countries. so beijing is interpreting this as being directly related to the trade discussion the administration is saying that it is not i have trade sources who are familiar with these talks who say the reason it was shelved was to try to smooth relations and the fact that the administration's unveiling it now only hurts things. >> kayla, overall how would you gauge the turn between the u.s. and china? with the last couple weeks of generally negative headlines, have we hit the worst point of the last couple of years or did we just come off from being close to a full deal >> i think it depends, wilf, on which level of the latter you're talking about. the presidents, the leaders of these two countries do have a good relationship. china said in a statement, its foreign ministry spokesman today

said the presidents remain in touch. the question is whether negotiators who are trafficking in the very fine print of this deal with actually find enough to agree on that would satisfy those leaders and the members of their negotiating teams, both of their negotiating teams that have very different ideologies on this issue. >> kayla tausche, thank you for bringing us the latest been some very long days for you. i hope you're able to get some rest this weekend. thank you. tomato or tomato. >> is that really how i sound? >> yes no matter how you pronounce it, there's -- >> please do the rest of the read -- do the rest of the read like that. >> oh, my gosh it's friday afternoon. don't dare me. but prices for the crop are going up as a result of president trump's tariffs. jane wells has those details jane >> hola, amigos. okay we get half of the fresh tomatoes we eat in this country from mexico. american farmers say the mexicans are dumping

mexico says prove it and they're now suing in u.s. court for the commerce department bringing back an old tariff >> there's never been a finding on the record of that agreement and there's a legal proceeding attached to it that shows that there's been a circumvention of the agreement. if somebody just says they're cheating they have to have something to back that up. it's the same with mexican tomatoes >> all right how's it affecting prices? they've gone up about 2% since the tiff started at the retail level for fresh tomatoes chipotle buys 60 million pounds of tomatoes on both sides of the border annually but says since it contracts most of the supply it doesn't expect to see an impact and is not planning to raise prices but wait, there's more we may get half our fresh tomatoes from mexico we get 80% of our avocados and prices on these are way up since the president threatened to shut down the border. and now there's another country thinking of sending avocados

here if there's a guac gap a country we've been hearing a lot about. vietnam. >> i can't imagine avocado travels long distances very well, jane >> if you pick them soon enough -- i don't know how they are in new york. but in california you're doing this all the time to make sure they're ripe enough yet because often in stores they're not ripe enough yet it will travel pretty well the question is how does it taste? what does a vietnamese avocado taste like >> i feel like there's going to be a taste test here with you to us about that at some point in the near future. at least i'm hoping. >> yes, yes. >> jane, thank you very much >> you're welcome. >> at least we pronounce avocado the same, don't we >> i think so. >> there we go >> avocado >> avocado not quite but it's not as bad a difference -- >> how do they travel to the uk? >> it's a good point

i don't know where they come iffrom 234 euroi from in europe i would think someone in southern europe grows them if they come from mexico the point's proven but i have no idea time for a cnbc news update. sue herera has that. >> actually, wilf, they come from spain don't ask me how i know that here's what's happening at this hour, everyone at a news conference in ottawa canadian prime minister justin trudeau says canada stayed strong in asking for a full lift of the trump administration's tariffs on steel and aluminum. >> lots of conversations with the president over the past weeks. and understanding as well that these tariffs were harming workers and consumers on both sides of the border. and as we look at moving forward with the new nafta it didn't make a lot of sense to continue to have tariffs on steel and aluminum fiat chrysler is recalling more than 208,000 minivans in north america because they could lose power-assisted steering orb their engines could stall.

the recall covers certain chrysler pacifica minivans from the 2017 to 2019 model years and the birth certificate of little archie harrison mountbatten windsor confirms he was born in a hospital dispelling rumors that he was born at home the duchess of sussex gave birth on may 6th at a private hospital in london. the royal couple did not disclose any details about archie's birth or where he was born but when they filed the birth fikt, we all found out >> there we go and sue, did you see what they put for occupation of the parents? >> no, i did not did you? >> prince of the united kingdom. princess of the united kingdom which i have to say i'm a little disappointed by. i don't think that's their occupation it's their title it should have been activists, whatever else. >> i would agree with you. >> because they can. anyway, sue, thank you very much great to see you as always >> you too have a great weekend, guys

>> moving on, facebook's sheryl sandberg addressing calls to break up the social media giant. >> you could break up us you could break other tech companies up if you actually don't want to address the underlying issues people are kernds about. up next the attorney general of arizona who's called for more regulation of big tech tells us wh whether he thinks facebook should be broken up. plus we will break down a key economic indicator to find out what it is saying about the strength of the economy. stay with us what's a target date fund?

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welcome back let's check in on the markets, how we closed today. down 100 points on the dow 0.4% we could see slippage into the final hour of trade due to headlines on china well off the lows of the session, which was down 200 points for the dow investors turning their attention to a big week ahead. contessa brewer is following what is likely to be the biggest story on monday. bertha coombs looks at what is on tap for the nasdaq. and julia boorstin is following the future of facebook let's start uptown with bertha >> next week really the focus is going to be again on these china trade tensions and one of the things i'll be

watching is apple. down for two straight weeks. the first time we've seen that this year. and just the concern about how these trade tensions are going to impact big trade companies like apple that have 20% exposure to china. we're going to get some earnings from some smaller tech companies that don't have as much exposure but that could also give us an inkling about what's happening real time. net app which in jang had said it sees a bit of a slowdown which people were concerned, will be reporting on tuesday as well synopsis, which deals way lot of chip companies back to you. >> bertha, thank you turning to another tech name facebook's sheryl sandberg address calls to break up the social media company and julia boorstin joins us at post 9 with the details. julia. >> i sat down with sheryl sandberg stayed and i pressed her with calls to break up the company from both presidential candidates as well as facebook co-founder chris hughes. she pointed to competition from chinese companies which won't be

broken up saying she doesn't think breaking up facebook is the solution >> i think the right answer is to set up the right rules for the internet because you could break us up, you could break other tech companies up but you don't address the issues people are concerned about. they're concerned about election security, concerned about content, they're concerned about privacy and data prortability. so we know at facebook that we have a real responsibility to do better and to earn back people's trust. >> sandberg did acknowledge that they weren't focused enough on privacy and security but she said now at facebook that is their number one priority. you can find more from my interview with sandberg on cnbc.com morgan >> julia, you have had such a week had. you launched disruptor 50. >> it's been a very exciting week >> well, thank you for bringing us the latest and the interview with sheryl sandberg >> thanks for having me. >> joining us now with more on facebook and the idea of heth it should be split up, mark

bernovich, the attorney general of arizona where do you fall on this topic and what did you think of sheryl sandberg's comments today, basically saying these calls to potentially break up the company couldn't get to the fundamental issue which is better regulation of the internet? >> yeah, i think we need to be really careful when the people that helped create the problem are now telling us how to best address the problem. i do think there are a menu of options available for folks like myself that are the state attorneys general. when we look at these issues and confront some of the problems we're facing i think one of the tools of the toolbox definitely has to be a consideration of breaking up companies like facebook. the reason why we worry about monopolistic behavior is when you have this conversation of wealth and power in one company or two companies really it's a power that transcends democratic forms of government. it's the power to manipulate what we think, what we believe so when these issues coming up with data privacy, election

manipulation, the collection of information including our most private information, and actually collecting data from non-users, which is something facebook is doing, and now facebook is in the process of buying up all its potential competitors. they've acquired more than 6 0 companies. so what we're seeing is this concentration of wealth and power and one company that's essentially now becoming too big to fail. >> so mark, how's this sorted out, then? is it regulation is it snanantitrust action to b them up? or something else? >> i think quite frankly, morgan, it's a combination of those things we need to look at them. my colleagues and myself actually have a working group that are working and studying these issues because they're so significant. anytime you get a group of lawyers in a room, not everyone can agree on what the best approach is. but i think the one thing whether you're elizabeth warren or donald trump or a democratic

or republican a.g. we all recognize this is a significant problem. one of the biggest issues facing this country and we need to get on top of it. there's ramifications for all of us whether it's manipulating what we see or manipulating elections, our news feeds, what's going on with the newspaper industry, or the media and reporters. and the fact it's helping kill off traditional reporting. so there's all thigese secondar issues associated with this. i will add, though, as we consider all of our options flrks were some people, the old ma belle days, at&t, before people broke up they thought this is going to be terrible, this is going to be horrible but the reality is that break-up that's led to all sorts of great innovative new companies and sort of athat's important to competition. when you see this market stagnating with oun or two companies dominating it's making it impossible for other competitors o'get in and try to get into the marketplace >> match brnovich, thanks for joining us today

the attorney general of arizona. >> up next we'll get mike santoli's latest chart of the day tracking economic indicators and how they correlate to recession risk we're back in a couple minutes you definitely want to take advantage of all the benefits you can get. 2/3 of employees said that the workplace is an important source for personal savings and protection solutions. the workplace should be a source of financial security. keeping your people happy is what keeps your people. that's financial wellness. put your employees on a path to financial wellness with prudential.

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and here to listen and help you through it all is bank of america. with the expertise and know-how you need to reach that blissful state of done-ness. so let's get after it. ♪ everything is all right what would you like the power to do?® ♪ all right welcome back to "the closing bell." mike santoli is taking a look at what the leading economic indicators are saying about a possible recessionwarning at the telestrator. >> morgan, it is not flashing red just yet, but it is telling you we should keep an eye on this it showed a slowing rate of increase in the leading economic

indicators and you can see the last move down here in recent months this orange line is from charles schwab, this chart shows that the average level from which a recession began. so if you look at these prior periods as a shading there, it fell into a recession as it crossed here on average on the way down so we're not there yet so you typically have to get to a negative almost 2% year over year rate of lei negative growth to say, okay, the recession is more likely than not we have bounced from this type of level a couple of times to cycle and that is worth noting, as well and it is one of these signals that say keep an eye on it, don't panic just yet, but it's telling a slowdown story, guys. >> thanks very much for that >> earlier, we had our mega panel and next week we'll have mega earnings from the retail sector and we'll tell you who to look out for in the earnings parade next. free access to every platform. yeah, that too. i don't want any trade minimums. yeah, i totally agree, they don't have any of those.

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welcome back here's a look at what's coming up next week on our closing bell calendar things kick off on tuesday with earnings from home depot, nordstrom, and toll brothers and tuesd tuesday, earnings from best buy, lowe's and april durable goods orders sunday night now could be one of the biggest nights in hbo history with the finale of "game of thrones" and everyone has an opinion on who will win the game >> i think brandon should be on the throne. >> definitely danny. >> i think aria should go on the throne. >> they're making it very difficult to decide right now. >> i think sansa.

>> john snow >> i want daenerys >> they're putting their money where their mouths are we've got that next. 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

of thrones" is on sunday and some people are putting money behind their predictions for who will sit on the iron throne. contessa brewer has that from the sportsbook >> this is the best television offer they've ever had in terms of handle and they say in the last week, 17% of all the bets made on "game of thrones" were new accounts so it's driving new traffic to sample online casinos and what are they betting on who will rule westres, that's the number one question. a lot of these online sites have brand stark as the odds-on favorite to win, but william hill says, no, it's going to be samsa and i thought it would be between john snow and daenerys you see the question mark on the right-hand side of the screen

and that's the baby of jon and daenerys who doesn't even exist. how about a bet over whether jon snow will kill his lover/aunt daenerys, both heirs to the throne or what about lanister, a central character, will he make it through to the final episode? you will have to bet overseas because you cannot bet in the united states on game of thrones. guys >> let me make sure i've got this straight. we just saw all of these odds and how this could potentially play out within betting circles, but if i were to, say, walk into a casino, i couldn't actually place that bet here in the u.s.? >> you are correct, ma'am. however, if you go on to an online site. i mentioned paddy power, bovada, my bookie, you might get a disclaimer, we are legally registered in curacao.

you can decide for yourself whether it's legal for you to gamble on this particular thing. >> it's fas sncinating, and the other thing people are betting on is how high the ratings will be. >> i'll be the only one watching the s&p futures at 9:00. >> we have that on a separate side screen. >> i'm gunning for arc ria. >> thanks so much for joining. and that does it for "closing bell." >> "fast money" begins right now. >> fast money does begin right now. the dragon's going to win. i am brian sullivan in forrel melissa lee. >> your traders are tim seymour, carter worth, steve grasso and guy adami. today we dig into the biggest ipo of the year, beyond meat up 250% since they debuted and the shorts are getting cooked and the analyst is here with the bull case and that's noble and we'll start on what was a wild week for the m