she used to be a man so she's remarkable on many, many, many levels. >> i was trying to find -- i hope they make it a little easier i know they can't post all the stuff or people won't pay to go. but your interview with her i'd like to watch. there's a few other things tyler and david were talking about there's a website. but i want the content >> a lot of great stuff at healthy returns. thanks for watching "power lunch. >> "closing bell" starts right now. welcome to "closing bell." i'm sara eisen >> and i'm wilfred frost here's what's moving in the final hour of trade. not too far from the highs of the session. also not too far from where we opened it's been a pretty steady day of gains and broad as well. 10 out of 11 sectors higher. only really staples, which is in the red. and that's down to some individual earnings earnings movers >> individual names making some big moves, kohl's getting crushed after its earnings report this morning. we've got someone who says this could be a buying opportunity. >> chip stocks making a bit of a comeback after the u.s. grant aid temporary reprieve from the huawei ban we'll have more on that story

coming up. >> and here's what we haven't talked about much all day. mallinckrodt shares plunging the details behind the big drop. >> also an exclusive interview with sean parker, why he's backing opportunity zones and what he thinks about facebook and his take on the ipo market >> joining us for the entire hour today as we look ahead to the close, steve grasso from stuart frankel welcome. >> stu >> how do you feel about the resilience of this bounce we're seeing >> i feel that it's 90%, 95% is all trade headlines. so when you get a positive one, when you come in overnight we're negative the away markets negative. futures negative you come in here and the market is primed to actually pop. so you want to see whatever wind is blowing wherkt it's positive or nelth that's the way we follow it. rinse and repeat with trade headlines. >> so it's all headlines and tweets >> it's all headlines and tweets and at this point you have to

look at technicals because you have a lot of machine trading. but it is really dependent on trade. right? so trade for the day to day but ultimately it's about the fed. if the fed is dovish then the market can remain higher and all these little machinations that we see on a daily basis will be bought when you see a negative trade headline >> lots more with steve. great to have you with us. let's get to our reporters on the stories that are moving markets at the moment. deirdre bosa has the details on huawei phil lebeau watching boeing. courtney reagan has the big retail earnings movers deirdre, let's start with you. >> the commerce department softening its stance a little bit and saying it will grant some temporary exemptions to its export ban against huawei. sour seeing some of the chip makers rebound today still far from make up losses since this export ban was announced last week. for a few reasons. one, this is only temporary. it is unlikely that chip makers

can shift their business enough within just 90 days. so to reduce their reliance on china. it has taken years for emthis many cases to build up these businesses two, there could be long-term ramifications. there's a chance that u.s. officials can completely roll back this ban as a bargaining chip in trade talks and as it did for zte last year. however, huawei has already been looking to reduce its reliance on u.s. suppliers and this export ban just makes that path all the more urgent for the chinese company. whether huawei can reduce that dependence is up for debate. u.s. software like android and chips are still considered the gold standard. guys >> deirdre, thank you. shares of boeing also on the move today following a report in the "wall street journal" outlining a new theory behind the ethiopian airlines crash back in march. phil lebeau with the details phil >> it's a very nuanced story here we're not going to go too deep in the woods here. but basically what you're looking at is this question about whether or not a bird strike as the ethiopian airlines

plane was taking off, did it hit the angle of attack indicator? remember there are two on the nose of the airplane and did that potentially lead to the mcas software kicking in we've talked to people who are investigating the accident who say there's some indication this may have been the case but it's not definite i. at this point. by the way, this is what the ethiopian airlines ceo said to nbc news just a week ago about whether or not a bird strike caused this accident >> no. absolutely no. there was no bird strike >> there was no bird strike? >> there was no bird strike. there was no evidence of any foreign object damage or whatever >> by the way, whether or not there was a bird strike, ultimately the mcas software was given erroneous data which led, many believe, to the accident in ethiopia bird strike or no bird strike, the outcome would not have been much different is what most people believe don't forget, regulators in the faa and around the world, they

will be meeting in dallas a little bit later this week to discuss the status of the 737 max. guys, back to you. >> okay, phil, thanks so much for that steve, what's your latest take on boeing? this story aside, what level is it trading at? >> if you look at it, we were down 25% off the recent high and we're 7% off the bottom. i think you have to wait till basically the low 360s to be a buyer of the stock 200-day is around 363 or so, right there. you want to wait till it gets its footing at that level and holds it for a couple of days. but it does feel like we're working through some of the kinks here >> let's move on and talk retail courtney reagan's got all of the big movers today plenty of them court. >> hi there, wilf. it's been a very busy day for retail far from over. kohl's shares selling off for surprisingly weak comparable sales. shares down 11%. the department store said unseasonably cold and wet weather did hurt sales of spring merchandise, particularly in the

move february. plus it had some promotional events that weren't as successful as they had planned with home being one of the wackier categories tjx, however, saw strength in home in its largest division that's the marshall's and tj max division together that group turned in comp sales of 5% for the whole company, 6% for marshall's and tj max alone tjx said traffic was strong. the retailer increasing its full-year guidance home depot also had a comparable sales disappointment wit weather a key culprit after the second wettest february on record in the u.s. and lumber prices down as much as 50% below the same level last year it sounds like a little thing but it's a big deal because lumber is where a lot of those projects start so it has a ripple effect. sara >> courtney, thank you let's bring in managing director at numara internet and liz dunn founder and ceo of pro forma on what to do with some of these stacks

sime simeon, what happened to the rebound and recovery in department stores? >> i think the reality is -- >> was there ever a thing? >> it was definitely a thing and i think it was a matter of clean inventories, people want td to happen, and 2018 was the year that the retail renaissance was back but the end of the day we have to ask ourselves are these businesses going to be bigger or smaller businesses in the future and if you're selling someone else's good and you don't have a core reasoning, you don't have an advantage, then all you're doing is selling someone else's good, someone else can do that and that's what amazon does. i think we have to wonder where that goes in the future. >> i think kohl's is overdone. i think they are turning things around they've done some really transformational things are, excepting amazon returns, which expand in the second half of the year to all stores they're partnering with aldi and planet fitness they're doing a lot of things to transform. plus bringing in additional brands haf never had access to before i think it's a little overdone i think the guidance cut was

pretty dramatic. i do think it includes tariffs negative headwinds from tariffs. and i think it might be a little too cautious it looks like it could be a buying opportunity >> tjx, big winner today just a standout in retail right now. what are they doing right and who are they taking share from >> there's an element here of being born on third and did you hit a triple or were you just lucky for the sector you're in off price is the best place you can be right now the reality is tj as an executor is phenomenal and tj as a positioning, they're very lucky that the role that they fill fits this role fashion will always have things that need to be cleared through and right now there's no social stigma at getting a deal they're taking all that share we're talking about from the department stores. >> when macy's, when you look at it $6.6 billion market cap right now, in what world is macy's not worth some value on basically the sum of whatever real estate it does have i know we talked about this fire

while. how are they not a $20 billion company? how is than the value put on so i know there's a lot of headway we have to clear, but they seem to be building on their e-commerce along with walmart. what this conversation is, how come amazon didn't come up you mentioned they're partnering with amazon. but you know, brick and mortar, there was this theory that amazon needs a launching pad, across the united states to sort of be a fulfillment center are they going to take out a jcpenney, a kohl's, or are they just going to partner up like liz said with a bunch of different names because everyone wants a little bit of a piece of amazon >> what's interesting is what sara brings up tj, de minimis online they win because they don't have e-commerce not in spite of it in my opinion. so if you're lucky enough to have this group where amazon can't touch you, then you're defensible all the dollars you can for

maintaining that if you're not, look at a costco on the other hand, really putting a lot of money -- and walmart you mentioned putting a lot of money behind that e-commerce what that looks lick in the futu future >> walmart's 50% grocery so we're not getting -- >> walmart and target are in different categories right now in terms of growth rebound, e-commerce rebounds, than kohl's and jcpenney and macy's. how specific can you be right now in retail? where do you want to be? >> i frankly like names like home depot, like tj that are still going. kohl's i think they have a shot at turning it around i think the move today is overdone but i think department stores as a group, a lot of their problems are self-inflicted their stores are too big they look awful. they've got horrible assortments. kohl's is less of that in my mind >> very quickly, simeon and liz, do you buy nordstrom >> no. >> right now you're -- no.

>> they're reporting tonight too. >> listen, you and steve brought it up in the beginning the twitterverse right now is a new technical rating and whether we're talking about peakon shoulders or whatever, beacon shoulders, fundamentals, the market's not trading on fundamentals it's trading on tweets and fudge tell me you have a longer-term time horizon a lot of these things are at the lowest valuation they've been. if not you have to worry about stomaching the pain in between >> simeon and liz, thanks for joining us interesting conversation after the break bank united marking ten years since its founding in the wake of the financial crisis and now it's making big changes and a new cost-cutting plan. we'll speak to the ceo next. plus we've got a rare exclusive interview coming your way. >> announcer: coming up -- esense facebook pridt an parker speaks out. >> what do you make of mark

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dow's up almost 200 points let's go to mike santoli for a look at what's on today's market dashboard. hi, mike >> hi, sara. we'll start with the technical snapshot also over the course of the show we'll get to the risk kind of indicators as to what kind of market we're in today, risk on or risk off. we'll do a breadth check then get into the depth debate that fed chair powell seemed to raise last night in the remarks. let's look at the technical setup, not with any real rigor in terms of process or prediction but this sets the little shakeout we've had in some perspective i think the most significant thing is the market refused to go below at least for now this 2800 area, which seems to separate it from the upper end of its two-year range and all this slop in here. this right here was last week's high still working up against high levels of the s&p 500 at or about 2,900 we have not seen that i while this bounce perfectly nice the market seems it's on more of a normal footing volatility indx down to 15 today.

it seems like the market has kind of broken free of that shock mode it was in last week but still not really proven that there's much behind this move in terms of momentum or buying interest at higher levels near 2900 that's the suspense we're in as things going on, sara. >> thanks so much for that steve, 2865. >> 50-day moving average is at 2872 that's what started this whole thing. that's a rising 50-day last week when we had all the issues with trade we were somewhat below, around 2860. that's what we broke through precipitous drop down to that 2800 to 2810 those are some big retracement levels right there 2810 is a big one on a fib retracement, fibonacci retracement level. right now it's the 50-day, 2872. >> what about what mike said, that there's not a ton of conviction about this move if you zoom out and look at a longer-term perspective? >> when you look at the fed missteps, those are the moves that had conviction. right now guys are afraid and girls are afraid, money managers are afraid to actually get in

and lay out some shorts or to buy the dips in an aggressive fashion because as we said before tweets can change it. other than fed policy, this is the wind that's blowing in the market >> 2865 today. up 0.9% with 44 minutes left now, executives from bank united will be ringing the closing bell but as the bank celebrates its tenth anniversary it's also facing changes we're joined by bank united ceo raj singh in a first on cnbc interview. thanks so much for joining us, raj. >> thank you for having me >> congrats on ten years to the day i think you were saying. >> to the day. >> ringing the bell in 44 minutes' time or so. talk to me about how the dynamics have changed over the last decade and whether it's harder today to be a small bank or whether the opportunities are greater today than ten years ago. >> a lot has changed in ten years. ten years ago it was probably the darkest hour of banking if you go back to 2009. when we started the bank, it was probably the best time, the perfect time to start a bank most banks were retrenching,

nobody wanted to lend, everybody was worried about their existing loan portfolios. we were able to come out of the box and grow quite rapidly we went public in 2011 and here we are ten years later celebrating our ten-year anniversary. it's been an amazing business expansion. it's lasted ten years. what's good for the economy is generally good for banks so we've enjoyed it. and we hope to keep enjoying it. but the thing we worry about as a bank is how long will this carry on and where is the end of this business cycle, is it a year away, is it two years away? hopefully it's ten years away. >> that's just the cyclical factor what about as i said the structural factor, the size of bank you are the big banks have really grabbed a lot of market share. we talk about the bbnt and suntrust merger which is very much in your back yard in florida space. and one big reason they said they needed to do that was so they could pool their investing in tech. the big guys each spending $10 billion each can you compete with them? >> yes, we can and we do it every day

i think of banking evolving to a barbell structure in this industry you're going to have very large behemoth universal banks like jpmorgan, wells fargo, bfa and so on. and you're going to have more specialized banks like us which will cater to one or two or three niches and specialize and earn our economic return in those markets. banks like us will never be universal banks and do everything for everyone. we'll do a few things for a few people, but we'll do them very well that's what eventually the industry will evolve to, and it's happening with the suntrust bbnt merger as the latest example. there are 6,000 banks still in america, which is kind of unique no other country has that many banks. eventually, consolidation will continue you'll end up with a structure with very large banks and highly specialized banks. >> i'm very curious about what you said about the business cycle. what's your point of view right now given the loan activity you see, the capital markets activity

we had the yield curve inversion that people are no longer talking about. where are we >> so conflicting signals is what i would say is the story. when you look at the loan book and look at our clients, how they are doing and how their businesses are doing, we're very encouraged that everything is good but when you look at our bloomberg screens and what's happening in the marketplace, there are signs that -- >> cnbc tv continue >> cnbc screens. and we see some signs that give us some pause. especially fourth quarter of last year there were a lot of signs in the capital markets which pointed to trouble down the stretch. but not when we see what's happening in the real economy, not what we see when we're talking to our borrowers >> what about trade? corporates, small, medium size businesses you lend, to are they nonplused about trade or -- >> there will be some impact from the trade disruption if it gets, you know, beyond what it

is today we are based in south florida and new york both economies do have a big element of trade and it will be impacted. will it be big enough to cause a recession? i'm not sure i think it will be fine. i think it's more noise at this point of time than real trouble. >> quick question on the administration i know wilbur ross, the commerce secretary, was a big shareholder until very recently. the administration came in saying they wanted to deregulate, especially for small and medium size banks. did that happen? >> i would answer that in two ways one, there hasn't been any major deregulation it's not like dodd frank has been reneged on or pulled back there have been some changes in regulation like the bill last year but what's more important than changing regulation is actually the attitude of regulatory bodies toward businesses, toward the private capital. and that has changed and that is much more reasonable i would say the expectations

from regulators were from the banks they're regulating haven't changed much but the way they're engaging with banks has changed for the positive in a very material way and that's good news >> just a quick question on how these guys are trading, regional versus the big banks >> regionals usually outperform. raj talked about it with m&a it's usually because m&a premium, they're only outperforming by about 1% right now. so something's got to give, something's got to take. i believe the xls, the bigger money center banks probably have to come in a little further. and the kre, the regional index, probably rallies a bit more. >> okay. raj, thanks so much for joining us and congrats again on ten years. >> thank you for having me >> and ringing the bell this evening. >> see you at the podium under 40 minutes to go before the closing bell we've still got a nice triple-digit rally going on. the dow up 180 .8 of a percent gain for the s&p. nasdaq charging ahead. semiconductors among the best performing industries. playing a lot of catch-up,

though, from what they've been through over the last ten days coming up wall street turns on tesla. another firm raising a red flag on the stock are analysts getting the story right? that question straight ahead plus our exclusive interview with sean parker how the former facebook president feels about calls to regulate big tech. ♪ ♪♪ ♪♪

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welcome back to "closing bell." let's check in on some top analyst calls. the word on the street from bernstein today by kroger. the firm upgrading the grocer to outperform saying it's a dark horse with some hidden weapons for success. dark horse with hidden weapons bullish. >> next susquehanna initiating coverage on uber saying it's a once in a generation company with potential to revolution transportation a lot of powerful words for a neutral rating. >> morgan stanley cutting its bear case valuation for tesla to $10 a hair from $97, citing

increased debt load and geopolitical exposure. that's quoit a call. >> it is quite a call. but as a lot of our colleagues have pointed out throughout the day, it's on the worst case scenario price they've cut >> it was ain't zero so they thought there was some light. >> but kept the main price target at 230. the bull target at 391 i mean, this strikes me as a fairly weak way for an analyst to protect themselves if things fall out of bed. >> all over the map. >> if it does crash they say they're doing a downgrade. it's covering all bases. i don't see what the call is the other point on this is the bear case price target is an alteration of how he's valuing on price multiple off 2020 revenue. it hasn't changed the 2020 revenue forecast so again, it's a slightly odd call even though it's got headlines and it's not bullish clearly. >> and tesla's always either a tech company, an automobile

company or a power company so you have to decide. and usually it's a whack a moel game if it's a car company you're lost if you're a short seller because it's a tech company. now when you start to run into a lot of these headwinds it's no longer the market's favorite stock to look at >> let's talk about whether tesla could hit 10 bucks phil, is tla sense thhere a sen various analysts across the street are throwing in the towel on tesla now >> i don't know if they're throwing in the towel. i do think you're seeing -- just look at the estimates in terms of how much they now expect the company to lose this year. we ran down this yesterday on "fast money" at 5:00 i think like a month and a half ago people were expecting it to make $5.50, $6 a share this year now they're expecting hem to lose $1.16 a share that has just plunged within the last two quarters or last quarter i should say and a lot of that is because people are saying you have to take up more capital, you're going to lose

money at least into the fourth quarter likely and then if you look into the fourth quarter are you confident the demand is there in order to turn a profit? >> so gabe, you've been on our show a lot you're very bearish on tesla i think you might be the one person who might agree with this call can it go to 10 bucks? >> i believe ultimately tesla will go to zero. any company that's losing billions of dollars and struggling under a mountain of over $10 billion in debt and over $3 billion of current accounts payable due on the desk, that's a real problem. with this analyst's work i have a bigger problem that is adam jonas has almost 350,000 deliveries projected for 2019 that's in line with elon musk's guidance of 90,000 to 100,000 each quarter for the second through fourth quarter, which is almost a 50% jump from what we saw in the first now, i told cnbc viewers

multiple times during the first quarter why it would be a disaster on volume price and margins and given that we're halfway through the second quarter i do have projections which are very different from adam jonas's >> what is your view, though, gabe, about the fact they got away ha fund-raising recently? does that delay at least your call that it's one day going to hit zero >> well, sure. tesla went from a very desperate financial situation barely able to keep the doors open, and they got enough cash to last them maybe another six, nine months remember, you have to subtract the $300 million that elon musk basically burned away hedging dilution from the convert at $300 and then subtract the over 500 million of debt that's due in november. when you run through the model, what i project for the second quarter, based on state registration data and extrapolating some international individual registration data from countries, i get around 75,000 deliveries for the second

quarter. that's well below adam jonas and others' 90,000 to 100,000. and then in q3 i actually have a drop rather than a gain due to the 1875 of federal tax credit rolling off. that will consume most of the cash that tesla raised by about thanksgiving >> steve, when it was above 300 you were fairly bearish then this level >> i looked silly for about $77. on air i said that i thought the stock would be cut in half so it did rally to about 377 mark in my book i have it at about 130 to 150 depending -- and that was right around that whole s.e.c. debacle that we all saw on the front pages but i do think that it has a lot of down side the only problem i have, though, gabe, is where does m&a get in the way of your zero price target >> there's nothing for m&a i mean, that story about apple 2013, look, tesla wasn't losing anywhere near as much money. they were actually growing, not shrinking. you didn't have competition.

i mean, just today tesla again cut the price of the model s by $3,000 base, the model x by $2,000 base. that's going to go almost directly to gross margin the reality is that the model 3 is a poor-quality car. "consumer reports" is not recommending it anymore. you have multiple reports of them using too thin of a paint and customers having a lot of paint issues you can go online or even to madison, new jersey a car wash many car washes won't even wash a model 3 due to the panel gaps and water getting in the interior it's simply a poor quality car, near the bottom of "consumer reports'" rankings and people have to come to that realization. >> did not know that about the car wash gabe hoffman, phil lebeau, thank you both very much looking at session highs here with the dow up 211 points time now to get a cnbc news update with sue herera hi, sue. >> hello, sar p. hello, everyone. here's what's happening at this hour activists were joined by members of congress to rally near the supreme court on this national

day of action to stop the ban on abortion this a reaction to the anti-abortion bills recently passed in alabama, georgia, and missouri >> that is why we're standing here in front of the supreme court. >> many house members today were adorned with yellow roses in celebration of a landmark anniversary. it was 100 years ago today that the house passed the 19th amendment, giving women the right to vote. it was followed weeks later by the senate it was ratified by 1920. and it may be may, but it's still snowing in the rocky mountains. take a look at coors field in denver, covered in snow. fortunately the rockies baseball team is on the road. they won't be back until friday. temps at that point are expected

to reach the upper 60s you are up to date that's the news update this hour, guys i'll send it back downtown to you. sara >> all right, sue, thank you we'll see you next hour. some fed headlines that are just crossing the "wall street journal" reporting that economist judy shelton has been interviewed for a potential nomination to the federal reserve board of governors. and in an interview with the journal, former trump economic adviser did say she would like to "see more market-determined interest rates," adding that her previous concerns about low interest rates have changed in light of the trump administration's fiscal policies we know that the trump administration is searching for potential fed nominees how would the market view a choice like judy shelton i think of her as sort of hard money kind of gold standardish maybe her thoughts have been updated. >> so we've heard president trump, you know, we've heard him say he was anti-easy money then we heard him say that he wants easy money so that's where we're at right

now because the markets like easy money they can't get off the addiction to easy money. whatever the dovish sentiment is from the fed people you wind up seeing that reflected in the overall markets. and i don't think you're going to see any fed governors come out hawkish anytime soon >> well, i think that you're saying is no matter what their past -- >> doesn't matter. everyone all of a sudden -- >> they're not going to get nominated by this white house if they say -- >> you have a come to market moment when you sort of stand before the administration where it is now. >> we're up 110 points on the dow. 25 minutes left to trade still ahead tech billionaire sean parker was an early investor in spifoty. his thoughts on the company as the music streaming competition heats up

let's get back to mike santoli with more from his market dashboard the second chart looks at risk appetite mike, over to you. >> yes, wilf in the past few days i pointed out the somewhat defensive tone of the market even as we've kind of remained rest relatively supported not too far from the all-time highs more defensive group, somewhat safe haven secular growth type stocks today it's a slightly different

picture. let's take a look at a couple of sectors that would reflect a rising risk appetite this is a two-day chart of the semis. obviously, this is very much at the epicenter of the markets concerns today some relief. this open was much lower than the prior day. so this is actually a very weak day. getting a pop. double-team markets gain for the semiconductor sector up more than 2%. now spin it over to the transports the iyt is the etf that follows the dow transports it's actually kind of tepid. it's a little more hampered by general growth concerns and also some of the trade issues that is an underperforming chart. even though you're getting a lift it's not doing as well as the s&p 500 which is up just about 1% right now but small caps another risk appetite gauge have also been a laggard group for a while now. they are outperforming they're doing better than the overall market so it seems today people are warming back to some of the riskier sectors that have been hit but you have to see this last more than a day to say the character of the market, guys, is changing. >> all right will do.

mike, thank you. sean parker is former president of facebook. you might know him from the "social network" movie but he actually made his mark first when he co-founded music file sharing company napster. he joins us exclusively from the ford opportunity zone summit here's what he had to say about spotify and music streaming. >> i'm obviously a huge spotify fan. i'm biased clearly but i think spotify has done an incredible job executing and from a product perspective the product offering is a superior product offering apple obviously comes to the table with a lot of heft and, you know, power in the device market, which will give it an advantage in any industry that it tries to get into but i think spotify's execution on the product side has been

superior >> looking at the price of spotify, 133, sharply below its ipo or at least where it went public i know you're not on the board, sean, but how do you view this whole industry shaking out today there's a report that the parent company of tiktok is going to go after spotify and apple music in emerging markets. it feels like there's still a lot of groekt wth in this indusy and it's far from a winner >> it's going to be interesting to watch my journey in the music industry started in 1999 obviously with napster and spotify was a huge step forward in terms of rebuilding the industry. there's a lot of growth left in it for sure. there are a lot of emerging markets, to your point, that have yet to really adopt streaming music. so there is a lot of growth left >> and there's a lot more coming up with sean parker. of course he was on the board of

spotify for many years big investor in it we talk to him about facebook, about opportunity zones and a whole lot more >> yeah, ipo market, lyft and uber and -- fascinating man to talk to. more to come later >> but up next, if you want to make money before the market closes we've got the one stock you should pick as your last chance trade, next

15 minutes to go in the trading day. last chance trade, what is it? >> olin corp it's a chemical maker. no onerail thinks about this one but it is already up 11% year to date two of the chemicals that they produce and that they sell i should say are going to have pricing increases. that's a tailwind for both of these. 4% dividend while the earnings imprort. olin corp., oln.

>> steve, thanks for joining us. materials top performing sectors today. >> it has not been doing that well lately. >> it's up 11% year to date and there's been a lot of short sellers saying the earnings front is not going to improve. if pricing improves on the chemicals that they sell, this stock is a double or a triple from today's prices. i am long it full disclosure >> steven grasso >> we'll hold you to it. >> thank you very much i think he'll be celebrating if he's right let's get to meg tirrell at cnbc's healthy returns conference a key topic there has been genetics meg, what's the latest >> we just wrapped up a conference on stage here at healthy returns about literally the future of the human species. i'm not even kidding it was that intense here we're talking about crispr, which is this new tool for gene editing. and there are a lot of biotech companies working in this space. so it's investable as well

companies like crispr therapeutics whose ceo joins us on stage intelia, editas and sangamo. a lot of controversy over the last year as two babies in china were born whose genomes had been modified to try to make them resistant to the hiv virus that caused a lot of controversy. and this morning former fda commissioner scott gottlieb telling us on stage he thought that was a horrible experiment and that anybody who's doing this before all of the ethics and the science around this have been worked out should be cast oust scientific community, guys. so it's a very interesting space. these companies we talked about here are not working on editing embryos. they are working on patients who have diseases and there wouldn't be any sort of inheriting of the genome kays that are being edited in here but a really fascinating conversation there's a lot more coming up at healthy returns including a conversation with j & j ceo alex gorseky. i'll bring you any highlights from thavg >> sounds great, meg on that crispr note we just

talked to sean parker. we're going to play the interview next hour. he's super bullish on that space and investing heavily around it. did want to get your take on mallinckrodt shares plunging today. what's the story >> mallinckrodt makes this drug called axar. it's a very pricey drug. and medicaid came out and said it was going to chait way it pays for this drug so the company said it's going to be receiving a lot less in terms of medicaid funding. actually sued medicaid based on this so investors are quite concerned about how the government is going to pay for this drug, which is the biggest drug for mallinckrodt a very interesting thing to keep watching here. >> all right, meg, thank you very much. we'll see you soon we are on earnings watch after the break we've got key metrics to watch from urban outfitters, nordstrom and toll brothers all of those reports coming after the bell ckl rht bell" wilbeig ba what do advisors look for in an etf? i tell clients, etfs can follow an index, but which ones target your goals? it's not about quantity. it's about quality.

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listen to your mom, knuckleheads. hand em over. hand what over? video games, whatever you got. let's go. you can watch videos of people playing video games in the morning. is that everything? i can see who's online. i'm gonna sweep the sofa fort. well, look what i found. take control of your wifi with xfinity xfi. let's roll! now that's simple, easy, awesome. xfinity xfi gives you the speed, coverage and control you need. manage your wifi network from anywhere when you download the xfi app today. urban kroufters and nordstrom. diana olick will be monitoring toll brothers. courtney, back to you and the things to look out for >> weather has been a challenge for retailers selling anything from swimsuits to garden

supplies expect that theme to continue after the bell analysts expecting only a marginal drop in comparable sales for nordstrom but that was the expectation for kohl's too and it was much worse. nordstrom had seen choppy traffic patterns last quarter. investors are going to want to know if any of that cadence has changed too. for urban outfitters the street is looking for comparable sales to fall more than 1% anthropohl jie to be the biggest drag of all of the brands. >> diana, what to expect from toll brothers. >> the street looking for eps at 75 cents a share, decline of 3.8% annually on revenue and we will be watching home prices california a huge market for toll and builders there are seeing flat price annually with declines on the upper end. in fact, 32% of southern california builders dropped prices in april according to a survey by john burns real estate consulting back to you. >> diana, thank you very much for that nt wl eado the market's most important moves with our closing countdown

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santoli, frank holland at the nasdaq and bob pisani on the floor of the exchange. kevin, let's start with you. big retail decliners any of those present a buying opportunity? >> i think the action today in j.w. nordstrom and in urban outfitters, both have earnings coming out after the bell. both were down significantly after kohl's missed earnings pretty badly and guided lower. both these names have recovered nicely and actually are both positive on the day. both have news for different reasons. urban outfitters, that's one of those, it's certainly not my demographic but i have five children and it's all of their demographic. >> wow kudos for having five children, kevin. tariffs have been such an overhang on the retail trade and the market how do you navigate through the headlines? >> i think this retail market with the four big box retailers that take in a lot of share and then tariff concerns and things

like that, you've got to pick winners and losers i think that's what kohl's showed us today in this retail, retail is detail, sara and kohl's showed us that there's going to be winners and losers in the retail sector. >> kevin hincks, thank you for joining us under four minutes to go let's go back to mike santoli for his third dashboard of the day. the breadth of the market, mike. how does it look >> it's been solidly positive all day. i wouldn't say overwhelmingly positive you take a look at the new york stock exchange advancers versus decliners. it's been between 3 and 4 to 1 all day. that's been probably the brightest spot if you're looking at the breadth of the market the nasdaq breadth has actually not been quite as good a little more than 2 to 1 up to down stocks there. but look at the 52-week highs and 52-week lows it's been a little bit draggy. it's not really impressing on a day when the overall market's up 1% you see new york stock exchange pretty close nasdaq, though, tellingly has more 52-week lows than highs breadth has been an issue in terms of internal momentum it's been a selective market

still. let's pass it over to frank holland up at the nasdaq for a look closer at that market, frank. >> well, mike, the nasdaq's on pace to break its two-day losing streak apple the best performer in the nasdaq 100 after promising to redesign its macbook pro, which will feature intel chips more good news for the chip sector that etf up about 2% on the day following that news. also all the fang names they're in the green with the exception of amazon. that's been pretty much flat all day. alphabet shares up on the news it can continue to do business with huawei at least until mid august huawei phones operate on the android platform pepsi the worst performer in the nasdaq 100 despite news that jetblue will switch to its products from coke t-mobile shares also down despite the news the fcc chair reportedly supports that proposed merger with sprint. jb hunt shashz also down today as part of the overall pressure on the trucking industry as part of the trade tensions. now over to bob pisani at the new york stock exchange. bob? >> thank you, frank. china movers still the marginal movers in the marketplace and all the dow movers today same

story. china stocks, dow du pont. 38 at the start of the month now down to 32 but bouncing caterpillar that was 140 at the start of the month bouncing a little bit. united tech. boeing bouncing as well. metals and mining stocks there again trade related. all did a little better today. horrible month for these in general. straight down, a couple days on the up side. retailers you heard we had finally a little bit of a bounce in some of the trade-related names. foot locker. remember 70% of footwear imported from china that's been a tough time l brands bouncing a little today. if you didn't get guidance you were okay in retail but if you did you saw what happened. to kohl's's, jcpenney and ascena retail that's what's going to moffett market tomorrow. we've got just about 20 seconds left to go before the closing bell the important thing here today was just off the old high, on

the s&p 500. and when trade with china -- whenever you get headlines implying there's not going to be a trade deal the markets sink and move to the down side. let's go back over to you. >> gain of nearly 200 points, near the highs ringing the bell at the big board, bank united at the nasdaq u.s. ecology, a company that provides environmental services "closing bell" starts right now. if you are just joining us, good afternoon and welcome to "the closing bell. i'm wilfred frost. >> i'm sara eisen. along with mike santoli, cnbc senior markets commentator here's how we finished up the day on wall street and markets did hold near the highs pretty much for the final hour of trade. going out with a gain of about 3/46 a percent on the dow up nearly 200 points. s&p 500 up a little more than .8 of 1%. the nasdaq did better.

technology led the charge up 1%. a comeback in some of those important trade-related stocks like apple helped fuel the charge the russell 2000 index of small caps something mike mentioned earlier as a risk factor outperforming. that's a good sign up 1.3% overall pretty strong day. >> pretty broad. only one sector lower on the s&p. consumer staples that was affected by a couple of large individual stock movers. three sectors in total up more than 1%. energy, tech, and materials. volatility back a little bit 14.9 back below 15. again a relatively encouraging sentiment across the board >> trading front and center look at the semiconductors. led the charge up. up 2% on the day still down 16% from their recent 52-week highs. there's still a lot of fear they're caught in the crosshairs of the huawei dispute between the u.s. and china and the overall sort of trade confrontation, which has really turned into technology

>> we mentioned the big retail earnings movers from earlier today. and it continues courtney reagan is awaiting numbers from nordstrom and urban outfitters diana olick standing by with numbers from toll brothers and we'll bring you those results as soon as we get them >> and don't miss our exclusive interview with facebook's former president sean parker coming up in just a few minutes. but first, let's talk about the market today joining us is ali mccartney from ubs. back with us is liz dunn from pro4ma earnings from retailers. and jim bianco from bianco research first i'll turn to you to talk about whether the kind of move we saw higher today is sustainable and how it looks overall. >> it's net positive obviously wilf mentioned volatility coming down the market is a little more in balance it seems it's no longer kind of knocked back on its heels by the shock of the trade i agree with you that trade is front and center if eyre only talking about the known identified catalysts that might hit the tape but in terms of the overall

market that tries to set trade aside or try to minimize what it means to the overall market value because you're down only less than 3% seems like a regular shakeout. i still think we're working through something here the market breadth isn't that great. we didn't challenge the highs of just a few days ago. until you get more than just one day up and a resumed up trend, you don't know if it's anything. but i think right now it still looks like a shakeout after a strong rally >> on the topic of trade you offered your risk-reward for how it plays out with china. what's the latest take >> we always believed -- which doesn't necessarily put all the issues to bed but certainly has the market feeling like there's less uncertainty and that you can dig deep geography by geography, stock by stock, sector by sector, and you can say what the general effects would be i don't think we see anything between now and the g20. i think we continue to see what

we've seen for the last number of weeks where you have a positive day, you have a week day, you have something come out on huawei, something come out on where we think each respective leader is going. there seems to be a lot more when the leaders are in the same place negotiating. then things seem to fall apart and seem to harden and we get back to this. but the good news about that is though we see a detente sometime this year we also see a potential up side from g20 right? we have said before we thought there was maybe a 10% chance we get some meaningful compromise and work forward this summer and we have that at about a 10% chance we've now taken that up. down side scenario butwe believe both governments here have an imperative to move this forward and put this behind us so we can focus on some of

the more nuanced and fundamental issues that are going on globally >> what is going on, jim bianco, fundamental fundamentally beyond the thooin china trade headlines and whether companies are allowed to do business with huawei or not >> it's earnings first quarter earnings are almost done. they've grown less than 1% the estimates for the second quarter are for them to decline by 2%. that will probably get a little better but you sum that up and it's really a good earnings story third quarter deflation rate at 2% even that disastrous number. but they could be a lot better than they are now. as the market seems to shake off trade, what is the next big worry that we've got it's this lackluster earnings reports that we've been getting as a group and the forecast that's going to continue that way for at least the balance of the year. >> on the topic of earnings we're waiting for nordstrom. what are the key things we're

looking at >> i think nordstrom is like many retailers probably going to see a sluggish first quarter so that's one thing i'll be focused on the only good news we heard today was from tjx nordstrom does have the rack i think it's kind of not as good as tjx but overall i think nordstrom is going to be along with the rest of the consumer. it's very difficult to separate out how much of this is a weak consumer versus poorly positioned companies versus just, you know, weather and late tax refunds. >> back to the broader market, how are yields settling down this week and how does that compare to the yields in the equity markets >> very steady right? yields have been steady. a little bit of lift actually a very strong bid in high yields. that all looks like the capital markets are pretty flush, and i think that's good news and then you look at yields being a support for equity

violations the s&p 500 dividend yield is right at 2%. that has been roughly speaking around fair value for the s&p for pretty much this entire bear market above and below it but it's pretty much -- that's been the kind of north star, is 2% not too expensive but also not extremely cheap. i think when there's the ten years of 2.4, how much cheaper will stocks get in that environment? probably not much unless you have a real erosion in the macro. >> alli, great story on cnbc.com about how active fund managers are actually having a pretty decent year. bank of america, merrill lynch survey, second best year in a decade for the individual stock pickers. that makes total sense to me >> stocks are less correlated in that kind of market, what do you do with that look, i think we had a bull market for over a decade now and a lot of what we've seen, whether it's from long-only managers, short managers, even

private equity have been largely beta plays and i think that's done. that's done because we're late cycle. that's done because certainly the trade play is playing into that but i saw gary kaminsky on earlier today and look, we have experienced this beta run that is both in length and in depth because of the execution vehicle, the access people have where you can indiscriminately buy global equities. i think one of the things i find most fascinating is whether you're talking about trade, whether you're talking about how much more room do we have for earnings expansion given where we are, there are so many things, and you've touched on so many of them this new protein revolution, vertical farming genomics there are so many specific things out there that i think are going to allow krout performance going forward on a -- >> nordstrom courtney reagan over to you. >> nordstrom earnings report here miss nearly across the board earnings per share of 23 cents

the street was expecting 43 cents. lighter than expected revenues 3.44 billion analysts were looking for $3.58 billion. the company also lowering its full-year earnings guidance. and eric nordstrom, co-president, says that while we expected softer friends from the fourth quarter to continue into the first quarter we experienced further deceleration, execution misses with our customers. we're committed to better serving them this is within our control to turn around. also calling out loyalty, digital marketing and merchandise misses as part of the misses for the quarter almost down 9% after hours back over to you >> courtney, thank you share price really moving. down almost 10%. >> this is a big negative surprise for nordstrom i think this is a bigger deal than the news out of kohl's. kohl's you can kind of blame on weather and the shifting timing of easter. i think nordstrom something different is happening

i think nordstrom you see a constant shift -- the business is performing; much weaker than their factory business or their rack business, which is a negative long-term trend their operating margin has declined significantly and they're saying that there are some company-specific execution issues they're having. whereas kohl's sounded quite confident in their execution that that wasn't the case and they have also have a catalyst in the second half in the form of amazon returns going to all stores >> you see this as a buying opportunity for kohl's but not for nordstrom, not for the others >> not for nordstrom i wouldn't buy nordstrom on this dip. i think it is a more structural issue that they need to address. they have been adding brands and they are a decent retailer i like to shop there but ultimately their high-end customer is more likely to transition to digital and they're not adding brands that are exclusive to them.

they're adding brands that are widely available like made well. you can get that elsewhere in the mall >> our friend simeon siegel from nimu nimura, what do you do with this stock? >> there was a bid by the family to take the company private at $50 a share. whether they get financing for it or not. that was rejected as being too low. clearly the world didn't necessarily see this environment coming the way it has come at the speed it has come. what do you do with the stock? i don't know it's not the cheapest in the group although it's certainly less expensive than it used to be and i think that's been the story for department stores for a long time, is they look inexpensive. you can make the case that they'd be able to preserve margins and dividend yield and all the rest of it but especially with the tariff overhang it's hard to see people deciding to get newly excited. >> i just think it's so confusing, the whole retail sector right now, because if you're looking for a read on the u.s. consumer you're not getting

it in these companies. look at walmart. walmart had great comp store sales growth even target has been doing so much better. a lost these companies growing their e-commerce businesses. and then you have guidance cuts from the department stores, alli you really have to be careful around retail right now. >> going back to your point about a stock picker's environment, right if you look at the retail sector in general, there are some huge secular changes going on so this is a really good example of this is probably the time to pay someone who understands the demographics and the way the world is going from a consumer perspective. and then look, you're absolutely right that you're going to have to figure out from the trade overhang if the exist iing tarif phase is largely part of the value chain and of the products that can be replaced outside of that if we really do see the 300 million tariffs being put on the additional merchandise, that's going to be a different ball game because those are components

that can't largely be replaced with other sources so i think there's both the specifics with each company, the specific trends that are happening in each of those areas, and then how do all of these issues, whether that be sort of late bull market, late cycle, and specifics of the trade issues we have now versus what we might see -- >> alli, liz, and jim, thank you all for joining us in fact -- court, over to you. >> thank you very much, wilf we have urban outfitters first quarter results. this is a beat so this looks very different from nordstrom's quarter for the first quarter looks like we are coming in at 31 cents per share. analysts have been looking for 25 cents revenues beating at 864 million versus 854 million comps up 1%. we'd actually been expecting those to fall. and anthony roh pohl jie was up 1% that was the one we expected to be down about 2% so shares after showers reacting

here for urban outfitters for a better than expected report for the first quarter. back over to you >> all right, courtney, thank you. coming up next, we will talk to facebook's first president and silicon valley entrepreneur sean parker about the state of technology here's one you guys will like.

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former facebook president sean parker speaking with us exclusively today from the "forbes" opportunity zone summit we talked facebook and biotech but we started with whether he's happy with how opportunity zones have been received so far. >> we're starting to see a lot more people jumping in starting opportunity zoends and our hope is that the result will be a lot of capital gett g gettingingettin aggregated into funds that have to find a home in communities that wouldn't have access to capital. >> how do you respond to those who say it's just a big tax giveaway to wealthy investors? >> from my perspective this was a purely philanthropic mission and when i set up my foundation, i spent a lot of time thinking

about how can i help communities that don't have access to some of the advantages that i had when you go to silicon valley, you find there's a ton of investors. in fact, there's more investors than there are great companies to invest in this is a problem that it turns out is pretty unique to silicon valley this is not a problem that most of america has in fact, most of the country doesn't have access to capital it's difficult to find investors to start a business. it's hard to attract credible investors. if you get a critical mass of investment activity like you find in silicon valley so this all began from a desire to try to spread that access to capital more evenly across the country in places that really just didn't enjoy -- they didn't benefit from the technology boom or the economic recovery >> you know, one of the more controversial sites in a city was the zone in new york city where amazon decided to invest

and build one of its new headquarters and of course local opposition from lawmakers, it walked away. was that a mistake how do you view that whole thing? >> that's like bad optics on the part of amazon i'm not even sure they were thinking about opportunity zones. but they certainly wouldn't have benefited from it. in fact, a big company going to an opportunity zone and creating jobs is actually a great thing for all the other small businesses that would benefit. opportunity zones specifically cannot benefit an existing large company. there's a lot of misunderstanding about how exactly the benefit can be applied. but it's really applicable to new business formation and all of your assets need to be in the opportunity zone that's obviously not the case for amazon they would never benefit from it but it wouldn't be a bad thing

if there were spillover opportunities for entrepreneurs to start local businesses or start other businesses supporting big companies >> i wanted to pivot and talk a little about facebook, sean. what do you make of mark zuckerberg's recent pivot toward welcoming regulation of his platform >> you know, i think any industry should be, you know, open to smart regulation and this is not a new problem. when companies get big and new industries form, they typically start in an unregulated environment and then at a certain point, you know, there's a role, there's a balance that needs to be struck between government and industry. and i think it's about trying to find that correct balance where you don't want to stifle innovation but you know, you need to make sure that there's

proper oversight >> do you think that it can get at some of the problems that i've heard you talk about facebook discussed i found the quote in 2017 when you said "god only knows what it's doing to our children's brains." is this a problem that can be addressed by regulation? >> so that sort of problem i think not. the problems that i pointed to in the past are cultural issues. they are questions of how do we relate to technology and those types of cultural issues are best resolved through a dialogue this is a conversation that families all over the world about the relationship between themselves and technology and between -- you know, the way their kids are going to use technology, the role that technology will play in shaping our identities and personalities as we get older. you know, as we grow up with these new platforms. and this is not a new problem.

every generation for the last several hundred years since the industrial revolution has faced these types of questions about the relationship between society and technology >> sean, what do you make of some of the most recent high-profile ipos like lyft, like uber? do you think that they're going public too late? >> so for sure this is an issue with companies where the typical time frame to go public, the venture capitalists like 20 years ago was a four to six-year time horizon to go public. and now obviously companies are waiting ten years or longer in some cases and that does feel a little long i think that public company investors would like to share in more of the growth there's obviously reasons why companies would prefer to stay private. you know, it makes it easier to

maneuver in a very rapidly changing environment without having to telegraph everything you're doing to the public market >> have you gone in on any of these? would you be an investor in a ridesharing company or for that matter maybe even better an alternative meat company >> well, the fund i was a partner at for many years, was an investor in lyft. travis kalanick was a good friend of mine when he started uber so i was sort of torn between the two. but i have not been actively trading in the space >> sean, i just wanted to ask about the level of innovation you see in the u.s. today in the tech space versus in china given all the debate around huawei, putting aside any trade tensions and how china may have got its level of expertise do you think they're roughly evenly matched compared to the u.s. in terms of innovation today?

>> there is an interesting question about are they pulling ahead in various ways. where i tend to focus with regard to china and innovation is in life sciences and biotech. even though it feels like the wild west here in the u.s. with synthetic biology and crispr, in china it really is the wild west they don't have the level of clarity in terms of regulatory framework that we have built up with our fda so it remains to be seen how biotech will evolve between the u.s. and china over the next decade but this is something i think we should all be paying more attention to and if we believe that the largest cost center in our economy is and will be health care, then so many opportunities for innovation will revolve around health care, life

sciences, pharmaceutical, biotech, and so china -- this is an area where the u.s. needs to be competitive, where we need to be thinking about the future and we need to make sure that we're staying ahead of it. >> finally, sean, it just ties it all together between the trade war and the opportunity zones where we started it sounds like you've been supportive of some of this administration's approach. that was certainly in the tax legislation. overall, do you think president trump is succeeding in his mission to become a pro-business president? >> it's not something i spend a lot of time thinking about the opportunity zone legislation was actually introduced originally as an investing opportunity act under obama. and you know, we're very pleased with the way this administration, the trump administration, has handled implementation first passing it in the tax reform bill and then handling

implementation so with regard to the opportunity zone piece of the tax bill we're obviously quite happy. but i don't spend a lot of time thinking about the bigger picture there. >> sean parker, our thanks to him. some interesting calls like biotech and gene therapy as the next internet. someone who was on the sort of cutting edge with napster and facebook when the internet began. serial entrepreneur. makes you pay attention to that kind of call >> and he was less critical of facebook than he could have been and you quoted to him that 2017 axios interview where he was very critical. he didn't say things have changed since then but he didn't take the bait as it were to go a little further on the topic of regulation, saying yes, these things need to be regulated, you have fast both, but it wasn't an outsized criticism or call for facebook to break up or anything like that. >> we've heard from other early members of the facebook team >> chances are three or four years later it feels like that point is so out there already

the company's already kind of acknowledges it in a large way we've got an earnings alert right now on pure storage. tanking after hours. rahel solomon with those numbers for us >> the data solutions company posting a miss on the top and bottom line. posting a wider than expected loss at 11 cents per share versus the 8 cents per share that had been expected also a refunds miss coming in at 327 million versus the 333 million that had been expected after hours trading pure storage almost 16 and 3/4 percent, almost 17% really getting hammered. looking forward to full forecast not looking good either. posting less than expected guidance for the rest of the year i'll send it back to you >> rahel, thank you. up next mike santoli, mark from his market dashboard with a look this time at corporate debt. we'll be right back. for your heart...

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business debt growth has moderated somewhat since early 2018 but this might be just a pause another sharp increase in debt unless supported by strong fundamentals could increase vulnerabilities appreciably. businesses, investors, and lenders need to focus on these vulnerabilities, as will the federal reserve. >> that was fed chief jay powell at last night's financial markets conference let's sent it over to mike santoli for a closer look at the trends in corporate debt he's just the latest to sound this alarm >> yes it's a gesture of prudence by

the fed chair of course. this is one of the big picture potential rixz out thehy risks e look at the total corporate debt outstanding. the chairman did mention the growth has moderated it has over the last 15 years -- this is the recession there it has gone up consistently since then but look at how it's leveled off in the last couple of years. so okay, it's gotten bigger. but as the economy has grown in the last couple of years and the stock market has gone up in value corporate debt is basically flatlined. that's one way of measuring it how about as a percentage of gdp, corporate and business loans as a percentage of gdp obviously it is high this is higher than it was at the peak of the crisis when gdp did go down. that is the thing i think people are watching essentially it's the one big build-up of leverage in the economy. not at the mortgage level, not at the consumer level. so this is the makings of a potential issue. but then look at the way the corporate debt market is priced right now. look at risk spreads this is back to obviously the crisis levels right there.

this is a 10-year chart. so yeah, we're low this is triple b-rated debt, spread to treasuries it's showing the market is not particularly concerned although we did have a couple of flair-ups here when this goes up it means the market is getting concerned about the risk we're higher than the lows recently i think we're not probably going to see those lows again unless we get assurance the economy's reaccelerating but right here it says companies can probably service the debt for a long time at least in the foreseeable. >> on the ft website today there's a great op-ed by gavin davis who i rate highly. said u.s. corporate debt is high but not yet dangerous. it's a similar point as to why he's not overall concerned interest rates low as you're saying also the fact ha corporate savings have remained high above fixed asset investment throughout so their companies are running a large financial surplus. >> although companies with all the cash aren't always the same knz that have a lot of debt. >> right >> systemically, that's -- >> also the rise in equity market values makes the ratio to market caps less worrying as

well in terms of the corporate debt amount overall. >> all right, mike, thanks >> time for a cnbc news update with sue herera. >> hello, everybody. here's what's happening at this hour, everyone at a house financial services committee hearing this morning hud secretary ben carson mixed up an reo, a real estate owned property held by a lender, with an oreo cookie here is the exchange between him and house democrat from california katie porter. >> i'd also like you to get back to me if you don't mind to explain the disparity in reo rates. do you know what an reo is >> an oreo >> no, not an oreo an reo r.e.o. >> real estate >> what's the o. stand for >> organization? >> american airlines will no longer charge passengers $150 to check sports equipment like bicycles, skis, or surfboards. the oversized baggage will now be covered by the regular $30

fee for checked luggage as long as the item weighs less than 50 pounds and a new sesame street muppet is a foster child meet elmo's new friend karli the young muppet living with her foster parents dahlia and clem dahlia telling elmo sometimes parents need help caring for their children and she and clem are keeping karli safe until her mother can take care of her again she should debut soon on "sesame street." you are up to date that's the news update this hour guys, i'll send it back downtown to you >> sue, thanks very much for that still ahead here on "closing bell," shares of toll brothers we'll keep an eye on that. earnings out just moments ago. plus talk about "stranger things" on our radar today new coke we'll be back in a couple minutes.

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life. to the fullest. welcome back here's a quick snapshot of the names moving after hours nordstrom plunging after a big miss on the top and bottom lines. the company also lowering its full-year guidance urban outfitters meanwhile beat on eps and revenue with same-store sales ahead of

expectations and toll brothers beating on the top and bottom lines as you can see it's up 2%. let's get a quick breakdown of those numbers from diana olick diana. >> wilf, it was a huge beat for luxury home builder toll brothers q2 earnings came in at 87 cents a share on revenue of 1.71 billion. the street was looking for 75 cents a share on revenue of 1.539 billion. great beat there the ceo doug ealy said the spring season "bloomed late. he said it built momentum thanks to lower mortgage rates, "we view this as a positive sign for the overall health of the new home market. now, interesting here, the average price of a toll brothers home, remember, we're in the luxury market here, $895,900 that's up 6% year over year. we have been seeing home builders slashing prices across the nation, especially in california, which is a huge market for toll brothers so to see them able to raise prices even in california is a strong note for the home builder because we've seen again on the high end sales come down, prices

come down as there's a lot of supply on that big beat for toll brothers back to you guys >> all right diana, thank you mike, quick comment on just the home builders in general >> seems like you would have thought there were the makes of some excuses in here, whether it be weather, any of the other things, and the high end being a little cautious on the turn of the year so looks like it was pretty much a true up side surprise in terms of what they delivered >> let's bring in an analyst who covers the stock jack masinko is here from susquehanna financial group. jack, overall strong read for the state of the housing market especially at the high end >> decent read on the top line beat on deliveries orders were down 9% year over year that was in line with what we were looking for and the margin held in okay. margin of 20.9 x impairment. more good than bad california was still weak. california orders down 40% year over year. and they're a big builder in

california there are things there that concern us stock still relatively inexpensive to its peeshz. the company's been aggressive in retooling the balance sheet, buying back stock. >> on that point you'd been focused on the improving r.o.e. over time. how does that come out this quarter? >> r.o.e. you have to look at the annualized numbers and it's up slightly year over year >> and in terms of the regional exposure is that a headwind going through the rest of the year or does this sort of suggest we're turning the corner a little bit >> i think we're going to turn the corner in the back half not only for toll but the industry you look at where orders fell off significantly last year, it was really may, june, july, then really slid down through october, november. toll and the rest of the group are going to be seeing some pretty easier comps come the back half of the year. >> who's your favorite >> we like kb homes. we like kb because they're focused on the entry level and they have a build to order model. and that build to order model allows the buyer to be as price

sensitive or option-oriented as they'd like to be. if you're competing on price and affordability is the issue in today's market, half of kb's deliveries are first time buyer. >> jack thanks for joining us. jack macenko >> key things investors need to watch going into tomorrow. >> plus drones on deck nasa exploring the ins and outs of drone flights jane wells is live for us in reno with more jane >> well, the faa predicts there's going to be hundreds of thousands of drones, much more than airplanes so how do you come up with a system so they don't run into each other or with you that's nasa's job. and up next, a big test in the biggest little city in the world. ah, you could say that. so how are things with you guys? great. thank you. thank you, sir. lunch next week? terrific. say hi to the team. will do. call my office, i will. -sounds good. alrighty. servicenow. works for you.

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welcome back let's check in on some stories on our radar one from deutsche bank a report that puts san francisco as the most expensive city -- as the highest city in the world in terms of wages $6,526 per month is the average wage 142% the level of new york second is zurich then new york city is third. but there's quite a lot of different things they look at. one is quality of life indices they put zurich at the top, then wellington, new zealand. copenhagen, edinburgh. we don't get a u.s. one until eighth place boston the other interesting one is what the price of an iphone xs is around the world. and clearly the currency impact here adjusted back to dollars.

interesting brazil, turkey, argentina have seen big falls in the currency, they cost around 150% the level they do in the u.s., as much as $2,000 per phone. china comes in at the moment at $1,400 per phone that's 114% the level of the u.s. potentially of course going to go up. not just with the devaluation of the yuan but -- it's a good report deutsche bank. out today. >> san francisco, big ineke waultd problems. highest wages but -- >> brings up the average >> coca-cola and netflix announcing kind of an unlikely partnership today. coke is bringing back new coke as part of its partnership with netflix's new season of "stranger things," which is set to be in the summer of 1985. that is the year that coca-cola debuted its biggest flop in history, known as new coke that's why it's such a surprising move for coca-cola.

it is considered a black eye, a total debacle for the company. they had to bring back the original formula three months later. so it turns out now just as a marketing gimmick they're going tofr a limited supply of the vintage beverage about 500,000 of them. get it on coke.com it's kind of indicative of coca-cola embracing not just a streaming company, which is the first time it's doing that and working together but also its past. and you know, they've got a new leader in there who i think isn't afraid to acknowledge -- >> it's been long enough and everything becomes fodder for nostalgia at some point. >> even harvard business school studies -- >> exactly and if someone remembers it i cannot -- it's so saturated the culture that i cannot imagine if the internet existed what it would have been like at that point because it was so -- everyday conversation. >> someone asked me who is this aimed at, millennials? they sort of have this thing for

nostalgia even if they don't remember the new coke. >> borrowed nostalgia. >> interesting >> my story, the mystery buyer behind a $91 million jeff koontz sculpture has been revealed to be point 72's steve cohen. the hedge fund billionaire initially denied he was the buyer but was outed today according to art net news. of course i don't believe he necessarily confirmed that yet but stainless steel inflatable rabbit sculpture broke the record for the highest sale for a living artist at an auction. but it looks inflatable. and robert frank was talking about how if you look you can see yourself in every angle. in other words, it's reflective. >> interesting >> very heavy. not a surprise, though, it would have been cohen, i don't think massive art buyer. >> big art collector now to another story on the "closing bell" radar today the faa may regulate drones but it's nasa that decides what those drones are allowed to do

so how far are we really from a jetsons-like reality that is a question for jane wells, who's got more on the story. hi, jane >> reporter: hey, guys the faa says there's going to be hundreds of thousands of drones in theair and that the future of drones is delivering goods or medicines or people, a lot of that's going to happen several miles away, beyond the line of sight of a pilot and a lot of it's going to happen inside cities, so you have to develop an air traffic management system and nasa is testing just that out here in reno it's working with companies like google and amazon. we've got a drone here from an infrared camera company being operated out of sight. nasa is working with these companies with its ames research lab in silicon valley. figuring out things like how far they have to be apart, whether communication is lost, and concerns about privacy >> the biggest challenge ends up being really socialization and understanding, public acceptance of the technology. >> we're predominantly a gaming

city, and we think technology and infrastructure and drone policy to be at the forefront is pretty incredible. >> reporter: i would say the locals are curious a lot of streets have been shut down in downtown for this test nasa will come to a decision by july on what drones can do it will hand it off to the faa to make a new set of rules of the road for a highway a few hundred feet above us. guys >> jane, fascinating stuff >> it looks very dangerous, jane >> reporter: see this guy over here in the yellow vest? john if the drones get too close he's supposed to run out and grab me. believe me, he is at the ready >> be careful. >> he should be closer >> a long way off wanting to see that buzz around all the local cities >> nasa does give it -- >> yeah, nasa does -- jane, thank you very much. up next -- >> i just want real quickly --

the biggest challenge i think is battery life you may get all your systems in place, but they need to get better battery life on this stuff if they're going to go more than 20 minutes >> well, we will see if they can do that and when nasa does decide to give them that green light much for that up next, the trade impact. they're crawling with baby products and it could cost parents big money when we come back ok. i'm plugged into equities. trade confirmed. and i have global access 24/7. meaning, i can do what i need to do. then i can focus on what i want to do. visit your online broker today, to learn more.

parents know that having a baby means lots of new costs, but they probably didn't budget for the big impact of the trade war and that that might have on their everyday spending ylan has

more for us. >> inside these boxes are a changing table where you lay down your baby to change a diaper there is a big stink because these and others in the warehouse are facing tariffs of 25% because they're all made in china. >> we had anticipation that the products that the tax was going to go away and we said let's eat most of it and see what we can do and when we told retailers that we would only raise x amount we preface it that if it doesn't go away we'll have to raise more now it's 25% so we are already on the phone talking to our retailers and we are getting cancellations. >> so the company has tried to come up with creative ways to avoid the tariffs, maybe storing the merchandise at the port or designing entirely new products, but guys, so far nothing has worked back to you. >> ylan, ywe all know that when we have babies we buy so much

crap for them and you don't want to spend a ton of money. >> so much gear. >> that's a better word. does it all come from china? >> a lot of it does. the company says that almost all of its products are made in china. they have a few line of production in vietnam and some other countries, but this is a company that has been working in china for decades. they have inspeck. they have their safety strategy there, and so be very difficult for them to uproot the entire infrastructure and move it to another country in order to avoid these tariffs and so they feel stuck right now >> good story, ylan, thanks. >> your wall street look ahead and key things to watch as we head into a new trading day when "closing bell" comes right back.

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welcome back let's check in on the headlines making news after hours. nordstrom getting slammed after missing on the top and bottom lines, the company blaming the loyalty program and digital marketing among other factors and it's down 9% shares of pvh naming stefan lawson and he was most recently the ceo of ralph lauren and check out pure storage, and it's

down 14% >> ouch! all right. time now for your wall street look ahead courtney reagan has the details on tomorrow's big retail earnings and steve liesman standing by on what to watch ahead of the fed minutes what are you missing >> target and lowe's report tomorrow before the opening bell analysts are looking for $1.43 on revenues of 17.2 billion and comparable sales expected to grow 4%. essentials business will provide a buffer for categories that are more sensitive to the weather and don't sell when it's unfavorable like we've seen with things like spring apparel and the bar may be lower for lowe's sales results. the home improvement retailer expected to see 3% growth in comp sales and earnings of $1.33 on revenues of $17.66 billion. back over to you wilf. >> let's head over to steve liesman ahead of tomorrow's meeting. >> the release of the minutes of

the april-may meeting. several questions are on the table. first, were enough members of the federal market committee concerned enough about inflation running below the 2% target to suggest a coming rate cut or second, or the minutes against the market's confidence in the coming rate cut later this year, suggesting as atlanta fed president rafael bostic yesterday on cnbc that the market is out ahead of the fed on this one and third, what about the tariffs? here the minutes can be unsatisfying to investors. during the post-meeting press conference, fed chair jay powell talked about headwinds by tariffs receding and since the meeting, those winds have kicked back up since the trump administration imposed new tariffs on china all that creates new questions about the outlook and about the fed that the minutes will have trouble answering. back to you. >> all right, steve. thank you. mike, in the markets, got a little bit of a rebound today. >> did i put clearance between the recent

lows and the minutes will matter at some point in terms of potentially bridging this apparent gap between what the market thinks and what the fed has said and the markets are pricing by december. within three months is when it starts to matter more. >> transit truce said 11 times in the press conference. >> thanks for watching "closing bell." "fast money" begins right now. >> fast money starts right now live from the nasdaq marketsite overlooking times square i'm melissa lee. pete najarian, peter kelly and tim seymour. nearly a decade in the after hours and we'll bring you the latest and plus the bears are out for tesla and a top analyst says the worst-case scenario for the stock could be as low as ten bucks a share, yes, ten bucks. we will also talk to that man you just saw, by the way we'll start with t