>> you have to look at the middle of that i would say the meat burger is really good. the brats are okay but the pork breakfast sausage, the fake pork, unbelievable. you would never know that it is not pork it is crazy. >> i'm going to go find it this week >> thanks for watching power lunch everyone closing bell starts right now. have a great weekend, everyone looking for the closing bell, everyone, 59 minutes left in the trading day, we will tell you everything you need to know as an investor before the market closes after a wild week of trading. the longest weekly losing streak since 2011. >> here is what is driving the market action today. crude oil is bouncing. treasury yields are holding steady it has been all quiet on the trade front. >> we will have experts here to break it all down for you. including alpha one capital dan niles, who just covered his semiconductor short position after a rough week for that

group of stocks. we'll get his next move for you. >> and discuss all of this, joining us for the full hour to break down the market action, barbara durant, we were just chatting before, the start of the show, in fact, today's bounce, you thought was warranted. and more to come next week and the weeks ahead, you think. >> i think that market accuracy the last few weeks has been very constructive, even though it is not pretty and a lot of volatility, we're still only 4 to 5% off our highs so i think the market is telling us the trade, the worst case is not going to happen and even if it does, we are going to talk about individualstocks and sectors i the economy that are strong enough to absorb this. >> one of the poster stocks this week is nike which is interesting because you like it. but it is the next round of tariffs, if they go through, the footwear association has been among the loudest industry groups warning this is going to hurt >> right because nike has 15% of its revenues from china. and a lot of apparel and footwear companies are looking to china to expand their business but i think what you saw, trump

has signaled the last few days, president trump about steel tariffs, auto tariffs, and i think a lot of companies, company managers are making a big noise in watching this week and i think there will be some begging off of that, but yes, it would definitely hurt in terms of tariffs they still want to be there. >> i think nike has had its ups and downs in the past but they end up on top and find their way back because it is superb management and very innovative direction. >> a lot more from barb throughout the hour. the stories moving the market today we have more from the exchange, rick santelli watching bonds and wilfred with the latest turmoil in the u.k., and courtney reagan has details on foot locker's big plunge and we have david rosenberg, joining us to break down the return to volatility and fresh data >> what we're seeing a reversal play out and banks, j.p. morgan and goldman sachs, part of the dow

leaders in today's trade although oil also finding some support. back above $68 for brent still the worst weak for oil for the year one standout sector we're digging into is utilities. another intra-day high for the sector now up 12% for the year. this drive for higher quality, dividend-paying stocks, continues. worth noting, 16 out of 35 s&p 500 stocks that have hit 52-week highs today are in the utility space. names like excel energy, nexte are. -- nextera, and the market on pace to close lower for the week wolf, back to you. >> thank you very much >> and the yields on the ten year plunged to the lowest level since 2017 during the course of the week let's send it over to rick for today's bond report. rick >> yes, it was a wild week when we walked in, we were wondering if we could hold some of the long end deals that had been the bench mark lows of 2019 and we went through them like a

hot knife through butter let's put up the charts starting in the fall of 2017. even though we were unchanged at 232, 229 that we traded yesterday, took us back to october. hovering near november just splitting hairs but really bunched up. july of 2016, last time they were negative. closed at minus 12 again september of 2017 on that. and if we look at january of 2017 on the dollar index, you can see that we're still hovering in good zones but it wasn't a good week for the dollar index closed down on the week. sara, back to you. >> rick, thank you. turning now to the u.k. where prime minister theresa may gave an emotional resignation speech this morning. the question is, now what for leadership and now what for brexit. >> absolutely right. in terms of leadership, theresa may will stand down on june 7, after president trump's u.k. visit, by the way. the conservative party's own internal leadership, will begin to pick the next prime minister by roughly mid july.

the betting odds have former foreign secretary boris johnson as the clear front-runner and importantly for markets the overwhelming belief is that may's successor will be a true breech brexiteer, part of nigel's brexit party at the expense of the conservatives and yesterday's european elections sterling which is up slightly today but around 127, that went down significantly over the last month has likely already priced in may's exit and replacement of a brexiteer and not pricing in a no deal brexit hear what boris johnson said earlier today. quote, we will leave the eu on october 31, deal to no deal. the way to get a good deal is to prepare for a no deal. to get things done, you need to be prepared to walk away is he serious or aiming to win votes and/or preparing to negotiate? that's unclear but the chance of a no deal brexit has risen today >> who would be the market's first choice >> the market's first choice will be a full remainor.

but the rise - >> does anyone have momentum there. >> but that is not likely. >> again, i point to the european elections the way nigel, if as expected, is taking huge sways of votes from the conservatives, that is therefore allowed, even remainor conservative mps think we ned to go for a brexiteer, the interesting thing about boris johnson being a front-runner, he is perhaps more pragmatic than other brexiteers who want out, no deal no matter what: so he might not be as bad for markets but the story tells its own story over the last month. >> things got cleared up by her exit think again. not at all. >> a lot of moving parts >> switching back to the u.s., a new proposal from the trump administration surrounding countries that devalue their currencies amin has the details. >> this came out yesterday it is about counter veiling duties here. and the idea is this is a proposal for a tool set for the department of commerce, if they

conclude ultimately that a particular country is undervaluing its currency or manipulating its currency. it is all about two cabinet posts, the commerce department and the treasury the commerce department is now threatening these counter veiling duties or tariffs on countries that undervalue their currencies there will be a process in place for that to happen if the treasury department goes ahead and yams them as a currency manipulator right now they are monitoring a number of countries and you can see them listed there, for manipulating their currency. the president came up with an idea of naming china as a currency manipulator, hasn't done that yet, so these are all about potential tools in the toolbox if the trade war heats up this gives this administration a little built more potential ammunition here in terms of tariffs, for currency, it hasn't happened yet, but watch this space, guys. >> thank you very much for that. this will be a very easy thing to impose. >> that would be impossible. we can't get agreement on which currencies are undervalued mo,

among economists it is very heard to tell who is intervening and who is undervalued in the currency and if you go by the treasury department, nobody is a currency manipulator to be punished with tariffs. i'm very curious about figuring that one out. >> watching the chinese currency, it is going to be key to see how seriously china is trying to fight back they would allow it to devalue further. >> and looking at china -- >> i'm not saying it is all purposeful >> and now we have foot locker's plunge today >> this is an interesting one. so footlocker shares down more than 16% after first quarter results missed expectations. they also lowered their full-year outlook. with the lower forecast, it actually reflects a slower than anticipated pace of share repurchases and the fundamentals remain intact. comps are growing. margins are up and inventories are in a pretty

good position. footlocker is not incorporating potential tariffs in the forecast, telling me if it happens, it will work with vendors to minimize the impact and b. riley analyst says 20% of footlocker exposure is for chinese sourcing so far, it is not a big deal but again, we don't have tariffs on footwear yet. back to you. >> courtney, thank you. a news alert on facebook now. julia has the details. >> the dow jones is reporting that the s.e.c.'s effort with facebook has been delayed by a split among the commissioners saying one way of driving the decision is whether or not to make mark zuckerberg himself, name himself himself in the settlement and another one is to say the decision is only supported by the gop commissioners. facebook also disclosed that it expects an ftc fine between $3 billion and $5 billion the company announced in the last earnings report that it has

already set aside $3 billion guys, back to you. >> julia, thank you. barb, what do you do with facebook >> facebook, i own i have owned it for a while. and it is overweight in all of my portfolios, including my own. and i think you still hold it. >> i think there is going to be lots of regulatory noise and lots of chain rattling. >> this type of headline is not bothering you? >> it is a big chunk of money but it is one time we'll see. there will be other talk whether you break them up, whether you make the best of whatsapp and instagram but it is coming >> and when you see political gridlock like we did this week on topics like infrastructure svgs that, is that a positive for facebook >> it is a good point. think there is a lot of gridlock and a lot of issues because as you can see congress is distracted with the mueller report and the political situation. it is very hard to focus and get any business down. >> we have 50 minutes until the close. the fifth straight week of

losses let's bring in david rosenberg, and david, i'm sure you weren't surprised to see that durable goods orders how do you pick that apart and where do you see shades of the trade fight? >> well, i'm not so sure that it has everything to do with the trade situation, i mean the decline today in durables was so broadly-based, there is no question that the china-u.s. trade war is having an impact on sentiment, but what you're seeing in the corporate sector, if you look at the credit spreads, they haven't widened dramatically, even with the economy slowing down here into the second quarter, because corporations are starting finally to delever and focus on balance equality which is great news, except it comes at the expense of capital spending. so my call all along was this is not going to be a consumer recession. that was the last cycle.

it comes at the expense of aggregate demand growth but it staves off the possibility of seeing a lot of downgrades from bbb into the junk bond mark. so i think that is the story beneath the story. we told this on trade all the time, but there is a deleveraging story going on right now in the corporate sector that is undermining capital spending and that was the story in today's durables report. >> david, what about the softer than expected data out of germany and japan earlier in the week is that directly linked to china and trade? or not and will it impact the u.s.? >> well, there's no question that germany and japan, being so trade-oriented, that the situation in china, and actually, not just the trade friction, but the chinese economy, which everybody thought was going to be reaccelerating for quarters to come, because of the monetary and fiscal stimulus measures and that lasted for a couple of months, and then when china is decelerating, that is having an impact on the export-oriented regions in

europe and in asia, does that have a significant knock-down effect on the u.s. economy you know, there is some marginal impact of trade. the u.s. is a large economy. i would say to you there are two other things we're focused on all along. the large impact of the fed tightening the fed did raise rates nine times this cycle. >> there is a price to be paid for the lag for that we will see that ongoing for the next year at least and on top of that, the overriding theme is not about trade. i know that's what everybody talks about but i'm talking about what people aren't talking about, and you're seeing it actually in the deleveraging numbers. you're seeing it in the fed credit survey data you're seeing it in the fact that bond issuance by u.s. corporations this year is the lowest it has been in seven years. there is something happening here in the corporate sector, in terms of deleveraging that is having an impact on capital spend thack has nothing to do with anything else on the trade side, it is really a homegrown development. >> barb, how do you think about the growth outlook for the rest of the year? whether it is trade influence or some of these things that david is talking about >> well, i think the growth

outlook is going to be subdued i think that was the outlook from the beginning of the year we had such a strong market because it was so oversold in december i think you're looking at second quarter earnings, will be coming in lower than the first quarter, which was around 1%. in gdp, we will probably be just over 1% by some estimates. so but i think we're going to be, basically we will limp along, growth will be fine, because as long as you have low interest rates, inflation still looks under control, and you have such low unemployment, those are the key underlying fundamentals so it is not going to be robust. it is not going to explode away. but i think we'll be fine. >> david rosenberg, thanks for joining us >> thank you >> still to come, it has been another brutal week for tesla. as wall street turns its back on elon musk. but we'll speak with the ceo of one firm, making the case for climbing to $4,000 a share and why she is sticking by her call. >> up next, a hidden side effect of the trade war could be benefitting the home builders. we'll explain that after the break. dow is up 120 with about 45

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let's send it over to mike to see what is coming up on the market dashboard. >> over the next hour and change, we will hit the dow theory, look at the traditional approach to assessing how the market looks apple's fall apple has been an interesting stock relative to the overall market storm watch. assess the week. see if we've seen the passing of this little volatility storm and then a snap of household finances and look at the dow industrials and the dow transports and the dow utilities and this is the five day of the dow industrials. they' they're sagging a little bit industrials have been in the middle of the utilities and transports transports weak, today, not bouncing much. on a one-year basis, i was hoping to get to all three on a one-year basis, you will see utilities up like this transports like. that the dow industrials right in the middle. that is a message of slower growth, it is not necessarily encouraging in terms of the

overall market trend and it says bonds are in favor now that is something where you'd say if you believe what the market is telling you, you might be a little bit conservative but you also look at that, when you have the maximum amount of pessimism about the economy and you look at that in early 2016, so we're monitoring it and still hesitant to say the market is out of the woods, bonds has been most of the story this week in terms of yields being down and that's what these three indexes are telling you. if you're a dow theorist, due love the market right now. you don't love the market right now. >> mike, thank you very much for that if you're in the market for a new home, there is one unintended consequence of the china trade war that could work in your favor. we have that story from washington diana? >> reporter: well, if mortgage, mortgage ranks are tanking, with a deep dive yesterday and despite the market recovery today, they're likely to stay in the low range. the average rate on the 30 year fixed fell nine basis points yesterday, down 19 basis points for the month. while that might not seem like a whole lot, today's home buyers

are incredibly rate sensitive because home prices are so high. so they're already stretched that's why stocks with the home builders are so tied to rates and yesterday's sell-offs, they were the winners because rates fell rates could move loser using the summer housing market after a mediocre spring. back to you guys >> diane that, what i heard anecdotally is the lower mortgage rates are reducing refinancing and not new purchases. is that what is happening? how much is that holding back the market >> well, refinance is definitely, we saw applications to refinance jump 8%, from last week, because of lower rates, and next week, we expect to see that go even higher, because of the lower rates this week. for the builders, it is just really important, because prices are so high. and every little bit is going to help people are buying that monthly payment, not the price of the house, and if they can get that payment down on a small moving rate, it is will make them more likely to buy. >> diana, thank you very much.

home depot is one of the few retailers actually up this week, not much, but up fractionally, up a lot more than lowe's, down 12%, and what's your take on both of those names? >> i'm a holder of home depot. i have been for a while. and the home depot story, it is tied to housing and the economic cycle but it is beyond that which is why i bought it originally it is the management, the innovation, the initiatives they're doing, the supply chain, going after the pro mark, executing so well, and they continue to gain share and the difference with lowe's, sometimes people want to buy because it is much cheaper than home depot but cheaper for a reason, not as high quality, and the growth rate so home depot, not surprisingly it is up because of the economic leg. >> and retailers got crushed this week. home depot ending the week flat. lowe's is down double digits to your point. are they insulated at all from tariffs? don't they feel it >> they are much more than say any of the semiconductor names,

or the others, they are. but it has more to do with the mortgage rates >> under 40 minutes to go before the close. dow is off a little over 100 points right now also s&p 500 continues its comeback, up a quarter of a percent. a mini comeback. stocks though lower for the week lower for the last few weeks >> almost the polar opposite to yesterday -- >> one wall street coming up says amazon's market cap could soon reach $1.5 trillion what that analyst says about being so bullish, next. >> crude is coming off the worst day of the year and down more than 6% for the week as a whole. we will break down the ftoacrs that could determine oil's next move

welcome back to "the closing bell," time to get to "word on the street" and check on the companies that are getting wall street's attention today at first morgan stanley downgrading constellation brand to equal weight from overweight and down 3.6%. people are adding alibaba to the select list saying the recent pullback is an opportunity to buy. and piper jaffrey says amazon shares could reach $3,000 in two years. the analyst behind the call explains his reasoning earlier on squawk box. >> what we're really doing here is making a valuation argument that if you split amazon up into three major segments which would be the core retail segment, aws,

and advertising, and then apply something close to a comp group average multiple to 2022 estimates for each of those segments, you arrive at a share price of about $3,000 in about two years, or mid 2021 when investors begin to start trading the stock off of 2022 estimates. >> bottom line is really a sum of the parts valuation it is about a 60-plus percent move higher from here. it gets your attention he says he sees all of the main businesses declining a little bit. decelerating growth. and you still get at that kind of valuation. >> clearly it grabs attention. the only thing i would say in the way that everyone is focused on this today, kind of like that earlier call in the week on tesla, where everyone focused on the bear case snare i don't remember or the headline, the 12 month target hasn't changed. and that is actually fractionally lower than the analyst average so he clearly he is bullish on the long term but the 12 month target didn't

change >> for the time. >> it is headlines >> it grabs the headlines. >> a great marketing ploy. >> as you know, i love amazon. it is in my portfolios but when you look and see 3,000, it is totally believable over two or three years when you look at the businesses, they are riding a clearly secular trend. >> and i just want to ask you about the valuation. so on his numbers, revenue growth of 17%, for this year, mid teens revenue growth for the two years after that, 67 times p/e this year, 3.4 time price to sales this year, it is pretty steep. yes it is growing, 17% growth is not that high for that multiple. >> no, it's not. but i think the feeling is, the reason you get these high valuations, is obviously when it is high quality, when it is very predictable, and you feel really certain this is going to come in, and plus they have so many growth drivers, that who knows, you know, what lies ahead. so you've got the cloud computing, you've got e-commerce, which is still, i mean it is still maybe middle of where it can be in terms of

people moving from brick and mortar to buying online and they've got also the entire world. so there is a lot more. >> and doesn't it get you a little nervous that it is consensus trade. 100% of analysts say buy the bullish forecasts continue to beat each other the stock is off, what 11%. >> and 60% of mutual funds are overweighted everybody, that's one of the big things, it is overcrowded for a reason, as are some of the other faang stocks, do you sell it simply because it is overcrowded? no there is going to be volatility. yes, maybe it is a little overvalued in the short term but i think it continues higher. if you look at the charts on any of the names in the last five years, you had to live to this but ultimately you went to new highs. if you're a trader, a day trader, okay, you can take the money and run at times but right now the stock is off a couple hundred points in the last few weeks, this is where the profit taking comes, in times of uncertainty. >> we will no doubt see how that goes in the future and we will talk more about tech coming up in fact, with noted

investor dan niles he says he is changing his tune on semis, tweeting he covered his shorts and bought a falling knife. he joins us exclusively to break down those moves >> plus, we will see what the latest analyst says about initiating coverage of uber and why he is viging investors the green light to buy it coming up.

time for a cnbc news update with sue herrera hello everyone here is what is happening at this hour. the trump administration proposing rolling back protections for transgender people the proposed rule states laws banning sex discrimination in health care do not apply to gender identity. it reverses the policy of the obama administration. iranian foreign minister lashing out at president trump, saying quote, iran will see the end of trump but he will never see the end of iran, end quote he made the comment during a visit to islamabad to meet his pakistani counterpart. thousands of portuguese students protested across the country today, joining the global movement calling the world's attention to the dangers of climate change. they marched to the portuguese parliament. and at least five people have died on mount everest this

week it is peak climbing season of course but bad weather caused a huge jam of climbers waiting their turn to climb the world's tallest mountain earlier today, three climbers died descending from that summit. you are up to date that's the news update at this hour guys, back downtown to you >> thank you, sue, very much. it is 3:33, ahead of a three-day weekend which means the animal noises at the stock exchange begin >> perfect timing. >> we do have about a half hour to do. the dow is up about 100 points the three things driving the action into the session. crude oil is bouncing. >> what was that >> treasury yields holding steady and quiet on the trade front lots of headlines. we will move it over to mike for the second dashboard >> thank you, right at 3:33:33,

thank you very much. we are looking at apple. apple has lost about a quarter of its value since the peak from last year. look at it this month so far relative to the s&p 500. it has been just one source of drag on the overall index. you can see the s&p 500 here, down close to 4% for may apple down another 10% obviously, lots of things in terms of head winds for apple that are really right in the center of what the market is concerned about. obviously it is china sales. it is obviously big tech in general. whether it's overall an expense, apple sometimes falls into it. look at it on a two-year basis i like to always say apple isn't a bellwether it doesn't tend to behave as a bellwether meaning it doesn't have predictive overall qualities but over two years, isn't this fun it is almost exactly the same performance. but look at the tremendous overshoots for apple and undershoots here and so it essentially goes its own way, roughly in line with the market over two years, of course over

five years, it has well outperformed and gotten to the same destination with a lot more volatility, and now, guys, it is cheaper than the market again, back to the old valuation discount, below 50 times expected earnings. >> okay, mike, thanks very much. bob, you said earlier you thought the market was overconcerned by trade in general. it is a good time to buy but with something like apple, significant exposure to china's sales, i'm not talking about the supply chain, this nationalistic tone in the chinese press, huawei, the poster child now, you're not concerned that sales have dropped >> i am concerned because i think what we've seen, china has been very careful through all this last year of negotiations not to publicly chastise the united states or try to turn the chinese consumer against us. but that has changed in the last few weeks. where you're seeing us called economic fascists, simplistic, all these things, this is a different tone and this could be something that leads to boycotts of different american products. and it's really actually pretty scary. because this is obviously a big market that so many american

companies want to go after on the consumer end and where does it end >> should we get out of nike >> it is not just anybody. it is nike, it is apple, nike's sales, they've got a market there, but most of the sales, the dominant is the u.s. and other countries but apple has a significant part >> that's the same for apple a lot of that growth is in china but not the bulk of their sales in china so you're concerned about apple but not about nike >> i'm trying to explain the apple in action. and they would both be affected by the same thing if worse things come to happen. >> so we will see. >> okey doke we will probably ask dan niles as well about apple coming up. you don't want to miss that just after 4:00 p.m. soybean, corn and wheat sugar futures are higher, as president trump has announced a plan to offset losses.

sal, thanks for joining us good to see you. >> my pleasure. >> let's talk about soybeans first of all and the bigger picture question on it does china long term need u.s. soybeans >> absolutely. there are only three major exporters in the world, the united states, brazil and argentina and china can buy all of the exportable beans from argentina and brazil and they still need to come to the u.s. for the rest of their needs. >> it is a simple volume question there is no way to get around it in the short term as well or the long term? >> in the short term they can. they have drawn down on stocks they have bought all of the beans they can from south america. and the chinese state-owned companies are still buying united states beans because they're ex emts from the tariffs. >> and trading at prices that we haven't seen since 2008. are you suggesting it is overdone >> it may be we saw a low after last week's government report that put a low into corn and soybeans and they kind of travel together because they share the same acres, grown on the same acres, and everything got overdone to the down side. >> what you are seeing, because

you're obviously issuing these commodity etfs, both for corn, as well, wheat, sugar, have you seen a big influx whether it is funds into the etfs or just interest in the space? >> we've seen an enormous influx of funds and enormous increase in interest in agriculture the agricultural products are less correlated to stocks than say the precious metals, in some cases far less and so people are starting to look at those as a portfolio diversifier. they also trade at or near their cost of production and with the whole trade war, they were pushed below their cost of production so people are viewing them now as a good portfolio diversifier. with potentially some limited down side compared to where they normally trade. >> and they actually have the commodity in the etf >> that's correct. the money goes into the etf when the investors buys the etf here on the new york stock exchange we buy futures and we manage that future position so it is a way for a person to gain direct exposure to the price of the commodity without having to -- >> to take delivery --

>> no delivery. >> would you get into ag etf >> no. >> why >> because it is a commodity and it is hard to judge ahead of time and no margin for error, as in a big growth company where you know it could continue for years. it could change quickly. look at oil. the ultimate commodity what's happened there? it is not a game i play. >> what you are telling investors lo are worried about that volatility? >> well, commodities and stocks are about equally volatile, commodities take the edge, a little more volatile, but when you hold them both in the same portfolio, the risk adjusted return of that portfolio goes down for instance if you own oil and the price of oil goes up, the price of your airline stocks will go down so they offset one another so it actually, holding commodities, directly actually improves your risk adjusted return. >> sounds like a good lesson for my cfa classes back in the day, portfolio construction thanks for joining us. good luck with ringing the bell in 21 minutes time. oil having a rough week.

sliding about 6% for the week as a whole. we will break down the geopolitical risk factors for the energy space coming up next. >> plus, noted investors dan niles covered his semiconductors short, he will join us exclusively to explain why [knocking] ♪ ♪

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. oil posting the worst week of the year as u.s.-china trade escalation, and just this afternoon, the president will deploy more troops to the middle east to counter iran >> and the president said that is what he was campaigning basically against, to bring troops home, not to deploy them. it was interesting, apparently, this wasn't an executive order, it was an executive order that was signed at 8:45 this morning and we understand that some 900 troops will be going and 600 deployed in the area, and at the end of the day, who does this benefit? when i spoke to mike pompeo a week ago, and what are the tea leaves and we're in a government and an administration that is based in reality and the reality of the situation is that it is looking more and more like we have to be there. >> and what is your gauge, in the likelihood that this escalates significantly more

because on the surface it feels like tensions are escalating and yet the oil price is collapsing which is not what you would expect. >> there are so many different variables obviously. the market is oversupplied at the end of the day you have to remember of course, when we talk about taking away iranian crude from the market, that doesn't necessarily mean that they're going to really ever get to zero my iranian sources tell me that that is absolutely no way that could happen and 500,000 barrels a day is their magic number. and add that to the fact what we're seeing in saudi arabia, and the oil prices are bad for saudi arabia, but keeping the oil market stable is better for them long term talking about using oil potentially as a weapon of foreign policy, you have to sit back and wonder, it is playing well domestically to have lower oil prices but internationally, who does this benefit? the chinese. >> energy stocks are down 3.4% worst performing sector on the s&p so far this week >> are you an owner? >> i don't own energy stocks again, oil i will tell you some of the

names, the nice stable dividend yielding stocks like an exxon or chevron are looking interesting. the problem with oil right now, it is not only concerns about if we did a full-fledged trade war and that would slow down the global economy, really, we are oversupplied even if iran came completely off, you know, the shale production is up hugely the last six months, we have iraq going, et cetera, et cetera, if you wanted to be in oil, you thought you needed to diversify, i think you can go into the big games, the integrated, the diversified, exxons and chevrons, because they are down but as you saw, we had a big increase in oil the last, ooin, since the beginning of the year, and oil stocks didn't really participate. >> and getting hit harder. >> thank you >> thank you. we have a few minutes to make a trade before the holiday weekend. we are 15 minutes until the close. the one move in our last chance trade, coming up. >> and later, tesla shares down 9% this week, but cathie wood is standing behind her firm's $4,000 price tart.ge

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overweight big lots. and deckers outdoor, we see that is up% and snap shares moving on reports of a licensing deal, up 4% and julia has the story for us hi, julia. >> well, snap is in talks with a major music label to include users more ways to include music with snap, first reported by "the wall street journal." sources tell me the staff is looking to secure rights from universal music and sony music and warner music to help it better compete facebook secured licenses from the major music companies in 2017 and tick tock has bolstered its growth, enabling it to host video challenges and lip sync.

>> julia, thank you. ten minutes to go in the trading session. barbara, your last chance trade as we head into the close is - >> costco. >> reports next week on thursday, after the close. numbers should be good and costco has just continued to beat all continues to beat expectations many same store sales in april beating expectations by 2 percentage points up 5.6%. plus not standing still. expanding the skus expanding stores going into smaller markets this is the stock to the own phone the long-term. >> the fact that that they are supposesed to lower end zbrurm i should do full disclosure i own the stock and shop there. >> and yesterday sitting here saying the same thing. >> i don't think it's just the low end consumer it's incredible value. high quality you have to have toolt of stuff lifetime supply of toilet paper. but cheaper. i think the business model

appeals to many seeing zbloomts what about the tariff risk big kmung is groceries that's got to be good. >> they are subject to the same risks as you see in a lot of retailers. rising costs, labor, labor costs, you know, different goods come in rate costs but still itching they are managing this annuity like membership is really tremendous. if they need to raise prices we'll see but there's been no talk of that. >> cost co. >> up next back with the closing koupt down up 0.2% on the s&p and l alof the angles covered for you. don't go anywhere.

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don't get mad, get e*trade and start trading today. . welcome back to the "closing bell." 6 minutes left of trade process. we've got all the angles covered. we trade the closer mike santelli has the dash board bertha coombs on the nasdaq. seema modi at the stock exchange let's trade the close. sean cruise from td ameritrade how are you trading apple after the tough week for the giant. >> a lot of are saying about apple and the other names the pullback if you have the longer investing horizon can be an interesting entry point. for apple one thing nanlt notes that i wanted to question a little bit was there that there is not much impact in the supply

chain for apple for the trade discussions. until we get more charity on the outcome of the discussions it's hard to say whether the impact to the supply mcmahon and the expense side of apple's income statement will be hurt a lot or if it's going to be a little bit more of a not much of an impact to their bottom line. >> you know you are also watching amazon and facebook they've opinion momentum leaders of the market over the last few years. what's the action telling you about where the mechanic is right now? >> well, it looks like for amazon they are back off the highs. if you think about it it was up at 2000 not long ago and north of 1,900 is as recently as this past month so i think if you are looking at amazon this could be another interesting entry point with the analyst come out giving as the 3,000 price target it's appropriate it think of amazon as maybe sum of the parts evaluation because you can't really value the retail business the same way you value the amazon web services and then also think about the whole foods business that they have as well.

i think the sum of the parts in getting a good idea of the multiple you want to attach to the revenue of all the parts is an appropriate way to go about getting good vamgs for amazon. >> sean, energy move to the downside this woke fop overdone or underdone. >> it might be a bit overdone. you we need an idea of the impact from a lot of the china/u.s. trade tax will be because if you want to get a good idea of how long these could potentially play out and what the impact to global demand will be as well -- because that's the bigger piece there, is the demand. what that's doing for economic growth and how that impacts the demand for oil that's something you need to take a hard look at before you get a good idea of whether or not oil is getting a little bit overdone >> sean cruise thank you under four minutes back to mike santelli with a look at the third dash board storm watch mike. >> it has been a revel actively stormy woke. let's track the storm from a couple angles. one reading on turbulent

weather, the volatility index. this is the vix over the past onier. you see obviously this was the december panic those are serious highs. this was the recent selloff. and we got above 20 on the vix a few days earlier in the month. some people making a fair which had we never got near the high this is we can capped at around 15 on intraday basis today around 16. what that tells you it the shock value of the market trading lower to the recent lows these levels has worn off a bit. people maybe hedged up a fair bit. some people look at that and say that's a sign of perhaps the market returning to normal that being said i would have expected the vix to be lower than 16 ahead of the three-day weekend when you normally have a drag on volatility one more quick look at the 2-year treasury note yield year to date, a steady downtrend. s in a grasp for yeerld and this is the bond market says fed shut cut rates. remember the if you had fends funds rate is 2.4.

this is below that this is not the risk on signal or all clear but it lowers the hurdle rate in what you want you want to known or income producing stocks this you'd like to say see return for a risk on market. >> bertha the nasdaq. >>ed to intuit surging here and leading after better than expected earnings. one of the highlights intuit doesn't have china exposure neither does workday reporting next week. neither does mercarkd op parker cs doesn't have the exposure other the other side qualcomm, a terrible, no good horrible worst week since 2001 for the chip technology company the huawei ban certainly was a big hit but the bigger hit this week was the anti-trust ruling which calls into question its business model and royalties that is one of the reasons chips are among the worst performers this week. send it over now to seema. >> bertha one of the days where

the macropicture played a role in driving stocks. the dow with up 90 points on the day. off the highs at 8:02 p.m. eastern. a weaker dollar, oil prices finding potter and volatility ever of oh off the highs of the woke remember hitting sitting at 16 sectors driving us higher pb the industrials trade cents bogt, 3 m and caterpillar. and financials outperformed with yields ticking up regional banks and all participating in the rebound. but what a week for retail the week we heard from a number of retailers and the big topic was tariffs names like best buy, lowes, kohls, kohls imports about one fifth of goods from china. that stock sitting on a 19% loss for the week, although slightly higher into today's trade at 5117 retail will continue to be a discussion next woke abercrombiey and fitch and canned canada goose. see what the companies have to say about tariffs and also the healthy of the chinese consumer.

speaking of high profile names, take a look at some of the ip a's where they close on the week interestingny lyft up 6% for the week now time for the second hour of the "closing bell." >> welcome to "closing bell. i'm sarah eisen. >> and i'm wilfred frost with mike santelli senior market commentator. how did we end up trading. the s&p only up 0.15% by the close. we did lose a little bit of steam in the final 20 minutes of trade. nonetheless green across the board for all indices, the dow up 0.4%. the russell which of course surd of late had the biggest -- the biggest bounceback up 0.8%. >> and famed investor dan niles

will join news a few minutes he just covered his short on semi conductors yesterday after a brulgts week for the stocks. he tells us the next move come up wilfred what stands outs in the market still adown week and a brutal week for a lot of investors more than 1% declines on the s&p, double that for the nasdaq it's interesting to go into the subsectors to see the story. hardest hit department stores down 12.6% for the woeb. why double whamy for the group number one the results not that great appear seema mentioned kohls, nordstrom also. and again they don't have the pricing power if the china trade war is going to be pro longed and get worse as all of the indications this week were, then the next group of tariffs that get taxed are the kworts like apparel, foot we are, consumable goods. department stores will have a tough time passing on the higher prices to the consumer if near not doing great. >> the other move i'd highlight which is stark and bearish is

the move in yields mike was talking about that moments ago at the telestrator with it a big move in oil prices not a great outlook for the macrofund. >> there was a global growth slowdown. >> 6% in the move in crude to the bottom end and therefore the worst performing sector was energy. joining to us talk about the market and this we can cathy wood ceo of arc invest and barbara durand around cio and portfolio manager from bda capital manager partners mike to you, the bounce we saw today and what it signals. >> i don't think we settled anything this woke, although probably modestly encouraging the mechanic refused an opportunity to decline further and essentially hit new lows for the move below the surface i think a lot of concern is building up over just the way a lot of in cyclical areas of the market have radically repriced lower. the question is at some point that group becomes kind of oversold, gets overdone, people get too negative on the economy,

global growth and the slightest spark of maybe things aren't bad could have you come become but for now the market is reliant on the big growth stocks that have really kind of managed to navigate through big software things like that and defensive areas. so low yields are flatter in the st. croix market right now even as he send a message that the world is a slowing place. >> mike is the global growth picture something that's net weighing on stocks rather than a sense it was coming off the bottom >> yeah, i do think so i think the fact that the u.s. numbers this week were spotty was an issue because i think it challenged that idea that somehow the u.s. was going to be able to resist a lot of that pressure i don't think it's been been decisive though. we did see some we can manufacturing numbers. it hasn't necessarily bled cross the board. which is why i think the market will crave reassurance with job numbers coming up in the next couple week that the u.s. economy hasn't missed much of a bet. even if we are pat 1% for the quarter we're still at the old 2% base for the year.

>> barb, have you been taking the tune on the bumpy days to buy in. >> a little bit. >> a little bit here and there but i think this market patience, because i think mike is right this is in the a definitive and the fact that the market is held up doing okay is good. but i think we have time because in trade issues could play out for a while longer. i think what mike was talking about, the churning and rotation under the surface is trying to aye the area that is could be hurt if we go the full monty in the trade war. that is not resolved for a while. i think there were names for instance when constellation was downgraded today that's a name i own i like it. he downgraded for reasons of price not sure if he upgrades again. but f2 beer softness that's why he did it it will get in the price. >> constellation is growing. >> and it's diversified. >> that puts beer that different category. >> plus the call option on the

cannabis they're a big investment in the canopy growth. that's not the stock it can't be because we don't know where the earnings are going yet that's in there that's one of the reasons i bought it when it sold off here is a great company and they're being very, innovative here in buying an option on cannabis that's a hard area to figure out. it's the wild west. >> cathy, i know you focus on a lot of long-term structural grow growth stories like tesla which we will dive into in a moment. but across the board when you see the trade war elevate does that make you want to raise cash and take money off the table. >> no. and the reason is when there is a lot of turbulence and uncertainty and fear on the part of consumers and businesses they're willing to think about doing things differently and our innovation platforms are all about that, better, cheaper, faster more productive new products and services. so our companies tend to gain market share during these periods. they may underperform in the short-term because they're in the index as everyone runs back

to the indexes we actually do the opposite. we will concentrate more aggressively into the highest conviction names one of which would be tesla. >> you bought tesla week. >> oh yeah. >> we're diving into that in more detail in a moment. a lot of bearish notes during the week cathy one of the loudest bulls out there. let's look first of all at how some other areas finished over the course of what's been a volatile week for markets. utilities the best perform sector while energy came in as the worst performing sector down 3.5% looking at the dow merck big leaders. retail dfrgens target finishesing a the biggest leader highs by 15% and kohls and foot locker the biggest losers down 19%. barb we talked about the retailers, really stark performance there. you era are you content the consumer in the u.s. remains solid though overall >> yes, i mean we have seen a bit of slowdown in retail sales.

but i also thinks that's -- a lot of it has to do with the retail industries because there are clear winners and clear losers like the department stores it's probably a model that has seen its day unless they can innovate in some way we don't understand right now. i think the consumer is alive and well and we're certainly seeing that in terms of the employment numbers. so dsh zbloosh how do you think about the valuation of some of the defensive sectors that shined brightly again this woke? utility near record highs staple reits the best performing sector of the yaoer. >> if you think bonds are expensive with yields where they are these are following the same valuation path i think if that's principally how they're viewed that makes sense. the market in everyone one of those little pairs you mentioned, even target versus the other retailers, the market's bidding for predict ability and stability. whether that's correct the or not whether they are overpaying for that at the moment it could be. >> that's what i --

>> it could be i don't look at the consumer staples and say they are outright ridiculously expensive. if you listen to folks making those comments, forever people are saying i don't want to own the soap stocks for 20 times earnings and sop stocks go up and they trade at 22 times earnings in this market they work be because the rest of the stuff seems riskier. we are get a turn. i think at some point the cyclical stuff washes out and everything rooks oversold. yields lift for some reason. then all of a sudden you have a shakeout. >> we have cathy, dying to talk tesla. slammed this week following five wall street firms releasing cautious notes on the company. the cathy sees the company hitting $4,000 is that tougher for you to defend at these levels >> no, it isn't. and so what we did in week for the first time it was in response -- somewhat in response to what happened on wall street,

is reo we rest released our model on github. you can go to the xcel spreadsheet and play with the variables. you will see even if you use the bear case -- the wear bear kwas is tesla is nothing but an electric vehicle manufacturer. it's going to lose two thirds of its market share its market share globally today is 17% you assume it goes to 6% you assume a 25% gross margin, which is at the bearish end of a range out there. and in terms of when they're at scale and our five-year target price is $560 including the dilution from the recent offering and it also includes another $10 billion. >> why the -- what are the sell side analysts say -- dsh. >> it's interesting just watching --s first of all there is a time horizon difference we're five years they're looking at variables that seem to be concerning them right now because they want to see the whites of the eyes of

cash flow. and so we believe -- they have $4.6 billion in cash right now and we believe they will be net cash flow positive the rest of the year so we are not worried about this they just did a deal and we assume in the bear case another $10 billion worth of dilution so i really -- what's happening on github and the people responding to it they are be being very thoughtful and saying that's interesting. >> the analysts that are downgraded are not being thoughtful. >> they don't have a five-year time horizon. >> i don't think that's fair i think they have a 12-month price target and a longer term price target. >> they have -- they -- >> no one has ever had a buy on tesla buying it for six months in which they're buying it for the long-term. and some of these guys had been big bulls and downgraded it's not like they never thought along the lines that you have they changed their mind. >> it's been interesting to watching the technical people getting scared there is a momentum move

downside high frequency trader algorithms, hedge funds and so forth. niece are their big clients. i'm saying we have did done a lot of original researches owner baets, the robots, which autonomous vehicles are. on energy storage -- that is the batteries on deep learning, artificial intelligence. and the miles of data that each of niece companies has collectsed talk about winners and losers. you were talking about retail earlier, if you look in california today tesla has 5.6% of that auto market now. and it is at the expense of both hybrids and gas powered cars we think gas powered cars are requesting down and electric vehicles are going up. so last year the worries were around production. so now they're producing now the worries around demand. we're seeing demand all over the place. there was in the first quarter shipments into china and europe

which disturbed the -- the quarterly results. but the demand is there. no question about it. >> cathy, what is the competition though i mean everybody out there in much deeper pockets is trying to come onboard because it's an exciting market. >> yeah. >> what -- how factor that into the model. >> we've been watching it like a hawk our models for autonomous taxi networks and electric vehicles are more than five years old so, yes, they have huge r & d budgets, right most of them dedicated to the internal kbugs engine they are moving rapid will i to the electric they don't have the right dpa for what's about to happen the old mod sell a hardware centric mechanical engineering modelle. now we are talking about batteries, robots, artificial intelligence, and the necessity of collecting miles of data in order to move into the new age they -- they are scrambling. they are scrambling.

if you look at what they're doing, the bolt, the bolt sold five thousand electric vehicles bolt in the first quarter 5,000 electric vehicles. tesla 50,000 model 3s. you know moving up. >> that will always be the way. >> we're assuming any lose two thirds share in the bear case one third in the bull case bus you are right, someone is going to come out with a very interesting car. >> cathy, if -- if the stock analysts doesn't have a five-year time horizon presumably the credit markets do right now the benchmark tesla bonds mature in six years trading at 81 cents on the dollar yielding more than 9% what's the message there because presumably if in fact they are cash flow positive the rest of the year they are not raising too much capital in the future why would the bond market -- >> again facing the same sthu in the bond as in in the stock market this is auto credit analysts this is not an auto company.

if they really understood the model it's not gross margins at 25 or 30%. it's gross margins north of 50 or 60% as we move towards this transportation as a service model. and more and more people understand that the edge that tesla has in batteries, they're three years ahead of anybody else in artificial intelligence chips our analyst now says four years of anyone else in terms of miles of driving data collected, no one is even close, not waymo, not cruise, they're at 10 billion miles. and waymo is at 20 million miles. so you train these autonomous vehicles with data no one else is close >> cathy, we're running out of -- quickly even if you are spot on with all the predictions do you ever get scared the market squeezes tesla sfiftly enough that never gets the chance to grow he to level. >> you know what's very interesting as mike was saying earlier request the cyclicals. at some point we see people

knowsing around including rumors of takeouts which i don't take seriously. but we see more analysts kind of serkling here and saying, you're making some interest interesting points and that's particularly on github. so i'm hoping as others look at the model and play with it a bit, battle test it for us talk to us about it that more and more people will understand this is not an auto stock or company. this is a technology company it's an -- >> and look at the bulls >> you know, gm has huge r & d budget to throw at the build the bolt sales were flat year over year. and tesla sales were up eight fold on the moddedle 3s. that's the competition 50,000 versus 5,000. you cannot argue with the numbers. >> cathy, thanks for joining us. >> thank you. >> great debate. a. and bob great to see you for

most of the show so far still ahead semi stocks crushed this we can tech investor dan niles has been bearish on the industry and up ved s orstplains why he ju corehishts -driverless cars... -all ground personnel... ...or trips to mars. $4.95. delivery drones

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tech is one of the worst performing sectors this week with semi conductor stocks hit particularly hard. famed investor dan niles just cover his short on the sector and joins us now on the phone. dan, good afternoon to you thanks for joining us. >> my pleasure, wilfred. >> so you were bearish on the semis just remind us when you turned bearish and then why you have switched your position as of late. >> sure, i mean on april 24th we put out a tweet under my handle @daniel t niles and reminded in twoot that we've never seen the semi conductor -- i've been wall street 29 years -- hitting all-time record highing it was pup yeater to date through april 4th while you're in the middle of a downcycle. and it madeabsolutely zero sense what so far. since then the market came down. the s&p since april 24th down about 3.5% nasdaq down 6% and semi

conductor down about 17% and now people are finally starting to take into account some of those ricks. and more importantly people are really starting to i think maybe get a little too negative on things like how huawei will get sorted out and so that's why we covered our last short yesterday in the semi conductor space. as i said in the tweet i put out yesterday we reached for a falling knife and started to buy selectively. we only have two semi conductor longs right now. so that's what -- that's kind of the thesis. >> dan, you still think there could be a couple of negative down dwr quarters for the sector it's the share price mover had been overdone. >> i think more importantly, like the psychology around some of in has been really overdone i mean, the knife that we have -- we started to catch was qualcomm in fact and so with qualcomm we luckily had sold -- sold our entire

position before -- on may 20th before the ftc ruling came out because we were nerve. we saw it and weren't surprised by the ruling but were really surprised by the stock reaction. that stock is down 24% since april 24th and there's been a lot of positives that have come out in my mind over the course of the last month and so for us, you know, we -- we believe in selling high and buying low and for me, looking at qualcomm in particular, you know the future looks incredibly prit as we move to 5 g next year apple which is way smart thor than any of us in the room any despite their hatred of qualcomm and losses this they had they had to sign an agreement with them and dropped intel. and intel promptly got out of the business you look at qualcomm down 24% that doesn't make sense but that's a microcosm of what you see going on you're absolutely correct, i think we have a few more

quarters of down but in the short-term at least i think the stuff will bounce as some of the china situation starts to get sorted out. >> i wonder if you put apple in the category, dan it's the worst performing dow component of the woke lost 5%. over a month down 13.5%. you've been short the name before where are you now and what do you do on the trade war fears. >> yeah, no, i'm still short apple. apple is not in the category at all. because you're talking two different setups if you look at 5g. the reason apple had to settle is they had no road to 5g. they're a year behind the kpetners the 5g. the. the second problem is the you look at the estimates that wall street for the rest of the year. they are all running above what is normal seasonally you go okay the estimates are hard to get to and the phones are the high end

of the market in the sense that they're selling phones close to $800, above 750. the chinese vendors sell phones in the 200 to $300 range they're not in a good spot there. and finally they have about 17, 18% exposure to china. you can think about the nationalistic feelings that you talked about a lot on cnbc, against apple itself and so you put all that stuff together and you go, like, why would you be long apple? then on top of it, the biggest one which is amusing to me you had the ruling come out that said, apple you can go ahead and sue apple for monopolistic practices on the -- on the app store. and that's about 10% of their net income i think those rates have to drop and that's going to be permanent. that's not a temporary situation like with huawei where i think huawei will come back and eventually get to a trade deal

with that situation i think that pricing moves down permanently and hurt the profitability of the company. so with apple we really don't like it still. and honestly we love having the position on where we are short apple and long qualcomm. >> dan, i think you mentioned you bought two semi names this week one qualcomm what was the other >> the other one we are building into it i will pass on that. but it's in the wireless space as well. where it's gotten absolutely hammered, preannounced negatively and so it's -- which has been nice. it's sort of cleared the decks and so you know our belief is in the wireless space and because of -- they have possess jur to huawei also -- because of all of that, that's where we're actually looking to get longer and the rest of semis -- this is more of ha short term we think the space will bounce. the news flow around china will be better. we'll put shorts back on as semis bounce but the wireless space is the one where we are sort of getting

getting our fingers nicked as we catch falling knives >> thaun for phoning in. quick comment mike on the semis which got beaten up once of the worst parts of the market this week. >> it's an amazing, ridiculous looking inverted v top right now. >> they led the market. >> exactly there was the huge acceleration. a lot of that was just sort of froth people overexcited about it i have no doubt that they would rally amazingly hard if the news flow improves on china and the huawei stuff seems manageable by the companies. when and from what price we don't know but it's interesting it's part of the whole story i was talking about in terms of you know materialities transportation stocks all of the ones nar right in the middle of the trade anxiety. ner primed to bounce if they are given reason to do so. >> up next bond yields may be falling but credit card rates spiking. why that could be a red flag for the economy. straight ahead.

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$4.95. no matter what you trade, at fidelity it's just $4.95 per online u.s. equity trade. all right. we saw a mini rally today. but still more than 1% decline for the s&p on the week. mike sandly with the final dash board for looking at recent moves in consumer credit. >> yes kind of a slow moving indicator. but if you look at what we've seen in terms of credit card rates going up, and then also the survey of bank managers, loan officers getting a little bit tighter. this is from deutsche bank in the blue showing gnaw tightening lending standards

show ha net 25% or so of senior loan officers say standards get tighter. and of course the orange line is credit card lending rates. it shows at margin later in the cycle lenders gets more conserve which is not the greatest for household finances but if you look at the overall picture longer terms in terms of financial obligations of households, this is basically all debt obligations relative to disposable income. hopefully we have that other chart here it's way below the historical average. because of interest rates so low where they are and mortgage debt did not rebuild after the kriez you see here, this has been going sideways for the entire cycle. looking at where we were before the crisis way up here and even in the late 80s you're indebted too. this tells us it's not a bunch of try tinder there wait are to explosion just that the margin perhaps is getting a bit squeezed for consumer finance. >> okay, mike thanks very much for that time for a cnbc news update hi sue.

>> hilo everybody here is what's happening at this hour president trump has cleared the sale of billions of dollars of weapons to saudi arabia and other countries defying congressional review that's according to multiple reports. those reports say the administration is citing a national emergency for breaking the practice of congressional oversight. the 22 arms deals are worth 78 backup the house failed to pass a $19 billion disaster relief bill because one lawmaker texas republican chip roy voted against it site citing cost. the move comes after the senate passed the bill by a sweeping 85-8 vote yesterday. a new report by the national beer institute claims that the beer industry has lost 40,000 jobs as a result of president trump's tariffs. the president of the institute saying, that aluminum tariffs are increasing costs and holding back the industry. amazon is 3-d scanning people's bodies in exchange for a $25 amazon gift card

the company posted a sign-up page for a study requiring participants to pose for 3-d scans. the company saying the data will not used for marketing purposes. you are you want to date that's the news update this hour back downtown to you. >> i agree you have to sign some kind of contract as well i'm not sure i like the sound that have. >> and you have to -- you have to be scanned in very tight clothing or a swimsuit okay, no way. >> no thanks. >> sue, thanks very much. >> in case you were considering that. >> have a wonderful long weekend. back at hk for us. up next hear from one analyst saying uber corraly 25% from here. >> find out whether disney's new gie action aladdin will b mac for hollywood and spark a summer box office boom >> announcer: cnbc news update is sponsored by comcast business, beyond fast. ne today.

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new street research phishing uber as a buy with a $50 price target peter faragu joins us with the call right now what is the mechanic missing with uber pierre. >> hi, sarah

yeah, uber is a difficult the asset for the market to understand it's a very knew -- it's a new business, ride sharing, losing a lot of money it's showing a lot of kpis in which it's difficult to see a trend emerging so the reason why we really like ride sharing is it's a great place for investors initially 80s new business initially you need to engage a lot of capital to fight in a very competitive markets. we see that. emerging in most areas and that makes me feel confident about the ability much uber to become profitable over time. then the second thing that is very important about ride sharing and that investors will learn over time is how critical

the ride sharing network and liquidity provides key to the success of autonomous driving. my key conviction here is that you are not going to be able to introduce autonomous cars in our cities without the support of the leading ride sharing network. because this is a leading ride smarg network that is going to be able to identify which rides with eligible for autonomous driving. and very early on is going to be 12% of 1% of rides and grow over time and the leading ride sharing network would be best positioned to make that happen. >> pierre your price target consists over the 20% upside not a small amount nor is it huge for what is a volatile stock and you also write that in the near-term the ride may be rocky and ride peruser prpu and take rate are will drift down a

couple years is it worpgt taking a risk is the risk reward worth it in the short time. >> mike, you frame it well if you -- if you look at it over five years -- i think uber is going to need five year to reach its target profitability and this suggest attention the need to quadruple profit books to get the profitability it's quite like a ride and they will need five years any will lose money they will break mean in 2022 yes the ride is rocky. if you lack at the enterprise value of uber to appreciate over the five year it's 33% per annum it's a good stock over a period of time but this year the up soda side is 20% only. as you say there is a lot of uncertainty in addition uber is going to burn several billion dollars in operating losses and in financing losses on the way

and that's very important as well what i do recommend is the following. at the end of the year is where the stock at $50 on the which there is ups and down and it's a position investors want to build overtime. >> thanks for joining us pierre ferragu he thought you were mike. big compliment. >> we have very, very similar accents. >> as well. >> let's stay in the ipo space because endeavor global entertainment sports and content company is officially going public company says it plans to raise $100 million in the offering endeavor will be listing on the new york stock exchange under the ticker edr going through the s 1 i learned a lot about the company. it's interesting because i don't know if there is a comparable company that trades publicly like it i wonder how investors are going to wrap their arms around it. >> i would say there is no company that specifically has the same business.

but in terms of a professional services type business you have have head hunting firms that have been public even the dividesry investment banks lake the greenhill and companies of the world nef a similar dynamic where your agents bankers are your revenue source they are your product. oh so client relationships are pretty much everything. >> i agree there is not the obvious comparison but i'd say more the business model say ten years ago. i think the interesting thing is 70% of the revenue now is really kind of content whether creation or licensing that does make it more of a traditional media company. again not apples tomys to the big media companies but it's not just the agency and predominantly it's not agency. >> they give good examples in the s 1,000 they look at the business the producen and content business and they show the rock one of the biggest clients not only does he earn money for the agents but they

produce movies and films with him. produce his rock events with him and all the other events that they do. >> yeah it's content packaging i remember when dreamworks first came public and people had the same thought, like this is a narrowly focused -- yes a studio you didn't have scale, right it was just really the three principals and the other networks but it was made to get sold. >> also own ufc and invested in the fortnite. >> the bottom line is interesting. $231 million of profit in 2018 following 170 million of loss in 2017 except it dipped back to loss in the first quarter of in year it's un -- >> you wonder. >> you wonder what the trentd is. >> with 20% revenue growth last year. still ahead, broad band spacex bachg the first batch of internet satellites overnight more on the landmark mission next

plus the trade war impacted the trucking industry in a mayorum way. frank holland brings that us that story. >> we're in pennsylvania looking at how trade war and tariffs impacting truck, the industry uyhi delivers about everytng we b in the u.s. stores. i'll have that story coming up after the break. you blaze trails... but you have the power to do so much more. let's not just develop apps, let's develop apps that help save lives. let's make open source software the standard. let's create new plastics that are highly recyclable. it's going to take input from everyone. so let's do it all, together. ♪ ♪ let's expect more from technology. let's put smart to work. ♪ ♪

that's what happens in golf nothiand in life.ily. i'm very fortunate i can lean on people, and that for me is what teamwork is all about. you can't do everything yourself. you need someone to guide you and help you make those tough decisions, that's morgan stanley. they're industry leaders, but the most important thing is they want to do it the right way. i'm really excited to be part of the morgan stanley team. i'm justin rose. we are morgan stanley. your daily dashboard from fidelity. a visual snapshot of your investments. key portfolio events. all in one place. because when it's decision time... you need decision tech. only from fidelity. welcome back spacex officially launching its broadband am bigs. morgan brennan has the story so what happened, morgan >> they launched their first 60

satellites is what happened. these are the starlink satellites overnight last night carried by a falcon 9 rocket successfully deployed. starlink is elon musk's perspective and very ambitious broadband band service that would consist of thousands of new satellites that according to musk will reach $30 million and plans to colonize mars longer term, but first, this requires capital to get starlink up and running and according to a filing today as well, spacex has been very busy raising a billion dollars across two equity rounds this year. one in january, another in april. it has been a busy week overall for spacex we have more details on a lawsuit if filed over an air force contract and yesterday news of criminal charges across a spacex supplier that faked inspection reports and overall, a very busy week for headlines and capped off with this launch for filing across the latest

funding rounds >> does he see himself as taking on the telecom companies or working with them and providing services to them >> working with them i think more or less he sees this as a potential service that would bring the telecoms on as customers and not necessarily displace them. he sees this as a potentially trillion dollar plus marketplace that they could basically help tap into for all of those hard to reach areas with the satellite coverage >> do you have any idea how much time he's spending sothis is what he was doing on the week when his stock was tumbling in wall street and was sort of throwing in the towel. do you know how he shares his time >> i think that's a key question having spoken to his number two at spacex, the coo of spacex which she had told me lasttime that he splits his time and depending on whatever the priority is it might be more than one company versus another.

we do know it focused on his last week which was when the original starlink mission was pushed back another week and unclear and i think he's got his hands full nonetheless with his ventures. >> do check out the full article on cnbc.com. back on earth, the trucking industry frank holland has more on that >> hey, wolf 70% of the goods that we buy in u.s. stores were delivered by trucks just like this one and import surges and export declines directly impact this industry three of the biggest operator, j.b. hunt and snyder national and swift all seeing their shares decline by 25% or more since the tariffs went into effect last earnings, j.b. hunt said the revenues defined because of volumes at west coast sports and they saw revenues decline because of the daily trucking rates known as the stock market and those rates declining by double digits since the tariffs went into effect and tariffs are having an impact and

manufacturers and retailers front loaded their goods at the end of 2018 to beat those tariffs now. they're negotiating lower rates with trucking companies and lower exports also leading to lower dual transactions. that's when a truck hike this picks up one of these trailers and they drop off a trailer at the same time and at the same place and that's more profitable and trucking companies say they're seeing less of it at major u.s. ports back over to you >> frank holland, thank you. >> up next ahead of this memorial day, serving in debt. why some military members say they're moretrse sesd about money than going into battle that story is coming up next

>> service members train every

day to be ready for their mission, but it's their financial fitness that may need work one-third of service members do not pay all their bills on time and name debt as their number one concern. cnbc senior personal finance correspondent sharon epperson takes a look at why this is happening. >> there you go. good job >> the warners are used to bouncing around. they've moved four times in the last 12 years all while raising a family on a single military income. >> you're trying to provide for more than one person and all of a sudden you have to furnish a house, you have new bills. >> some of those bills have been costly. >> when we came back from overseas we had to rent a car for two months while we waited for our other car to get shipped that was a massive expense. >> today most military families are more worried about money than going into battle in a recent survey, service members and their spouses ranked financial stress as a greater

concern than even deployment for military spouses, it was the number one worry with 49% saying it's their top concern >> yes, absolutely >> marine corps veteran and financial adviser renee brewer says low starting salaries and the structured world of military pay make it difficult for service members to dig themselves out of debt. >> if you need to make up a $20,000 difference in aiary it's not like another service is going to knock on your door and a let me take you in and take you up three wrungs. >> like being a good soldier, it takes financial discipline to turn it around >> we made a budget together, and we stuck with it >> the warners have been able to stay on track by using cash for most purchases and janna started dog sitting to make extra money. like many americans picking up a side hustle is something a majority of military members and spouses say they are now doing to supplement their income back to you. >> sharon, is that a new

development that finances are so high on the list of concerns >> it has grown over time, and what is really changing is the amount of military spouses that are now saying that it is their top concern. they're very concerned once their family member has been deployed and how they're going to keep up with the cost of living on their own and also when they change their station and how that cost of living will impact them as a family. >> and have wages kept up with inflation over the last decade or so. it matters where you start in terms of the service and really where you are in terms of that class will determine how much they're making so it can take years before you are financially able to do like what you wanted to do, like the warners with putting enough money away for retirement and things like that. >> sharon epperson, thanks. >> my pleasure. >> up next, a look at your memorial day edition we're talking burger, box office

and what you need to watch as we head into the long weekend what's a target date fund? 529 plan? a 10-k? what's an etf? an ipo? 401(k)? where do i start? empower yourself with the free tools and resources on investor.gov. before you invest, investor.gov.

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ahead memorial day weekend edition. first up, fake meat brands are looking to take a bite out of the business. >> it's still grilling she's been grilling all day. >> jane, on that note, let's start with you >> well, you know, the hype around alternative meat is hotter than a red-hot grill especially after the u.s. government recalled 62,000 pounds of real meat ahead of this weekend and restaurants that carries burgers that it might run out, beyond meat has been through that before it is ramping up production and vows to have twice as much supply as it expects to sell this summer so it's not caught short, but you're ilgoing to pay more for this stuff, over 50% more and beyond meat says it will have at least one product cheaper than meat in five years. guys, back to you. >> so now all of the products are very expensive and that's what you're saying >> yes, because their supply chain isn't ramped up.

it's not the entrenched supply chain for the meat industry and there's no reason this should be more expensive, but it is right now. >> jane, just one quick question having looked at that video. does it stick or is it easy to handle and clean afterwards? >> it, the fake pork sausage is fantastic, but the beef needs a little olive oil on it -- and of course, and even though it says grill master, i'm horrible i don't know what i'm doing out here >> i'm buying it i buy it, jane thank you. >> let's get to julia boorstin about how this weekend kicks off with the summer box office, julia. >> we're watching to see whether some big summer movies can help reverse the nearly 10% decline in box office so far year to date aladdin is opening this weekend. it's a perfect example of a big trend. studios relying on tried and true brands and characters

we'll also see a number of action movies also based on familiar franchises such as universal spinning off hobbs and shaw from its fast and furious franchise and on the series of marvel avengers endgame, there's more marvel and sony will be releasing spider-man far from home this summer and despite the box office declines year to date theater chain stocks are up this year and in part on optimism about how the rest of the year will go. guys, back to you. >> julia, thank you very much for that, julia boorstin in l.a. final thoughts, mike, on what was a pretty tumultuous week and a stabilization. a continuation of what we've seen through may the market coming to terms with a few things at once, right? you have obviously the sense that maybe this sort of trade standoff will be here a while, but then as the same time this global slowdown. the fact that the stock market more or less held in there and gave up another 1% is probably a

positive, but i'm starting to see this gathering sense that it's not going to get some kind of quick moment that we get this solution and pricing certain stocks what did we learn this week about the market is more vulnerable to the trade headlines or to the economic data because it felt like it was the weaker data in the u.s. and abroad that led to the heavy selling and also the bond market and the oil market joining in. >> i think that when trade seems like it's exacerbating a slowdown story that's when it's the worse. for most of last year, whenever they got these incursions of trade aggression and tariff threats and the market was relatively able to shake them off because they had other good news to go on, and they had profit growth and the economy seemed to be on firmer footing and now it's become a global slowdown story and it's become the bond market pleading with a rate cut or perhaps it will seem like the obvious move, perhaps

>> big week for bond yields, as we said and for oil still remarkably stable dollar it hangs in. >> good stuff, mike, as always thank you very much to everyone and please have a wonderful, long weekend that does it for "closing bell." >> "fast money" begins right now. >> "fast money" starts right now live from the market overlooking times square i'm scott wapner in for melissa lee. our traders on the desk are tim seymour, karen finerman, tim grasso and dan the top tesla bull and plus foot locker getting stomped on. the stock down 10% and one of our traders looking at the stock right now as we speak, literally right now. he has the details and we start with the fang inferno. facebook, amazon, netf