rating matters -- >> i actually think this isn't so much about kicking people off the platform because we know they need them they want all of us to behave better so the drivers have a better experience -- >> i want to know who downgraded me to 4.91 >> "closing bell" is next. >> they are gearing up for uber's first quarterly results as a public company. >> announcer: it was the ipo heard round the world. >> i want this day to go great but it's about what we build in the next three to five years >> uber priced 45. 32 million shares. opened at $42. >> uber crashing knits second day of trading the stock is now down a whopping 18% from its ipo price >> 8-year-old company, 9-year-old company they just waited too long. and there's nothing exciting about it >> and now we're less than an hour away from uber's first quarterly report the keys to watch from the release. plus, reaction, analysis, and highlights from the call that's all coming up on "closing

bell". good afternoon welcome to "the closing bell." i'm wilfred frost. i'm at the uber post as we gear up for that stock to be front and center during the next couple of hours during the course of "closing bell. the stock is down 0.4%, down more than 10% since it ipoed that first public quarterly earnings report coming in the next hour. three key things to watch coming up >> i'm sara eisen. welcome, everyone. we're going to tell you everything you need to know as an investor into the closing bell wp we'll start with what's driving the action right now federal reserve vice chairman richard clarida says a rate cut is possible if economic outlook worsens. treasuries and the dollar are holding steady some pressure points there for investors. oil is plunging on those growth fears. joining us for the hour to break down the market action stephanie link is back, cnbc contributor from tiaa a nuveen company what stands out to you amid the action today and the sort of loss of momentum we saw from the

early morning and the open >> two things. oil totally collapsed again. and it just seems to be on a spiral downward. and secondly, not great earnings from some of the software companies, some of the security companies. we aw palo alto. last week we had network appliance, hewlett-packard enterprise spending is clearly slowing. it's not declining in a big way. thank you it is slowing. and that the multiples of these stocks trading at and the leadership this group has bin think people are take a pause. >> feeds into the slowdown fears. let's get into the stories driving the market kayla tausche with the latest china trade developments diana olick with the new software housing data. leslie picker outside facebook's shareholder meeting this afternoon and deirdre bosa with three things to watch from uber's first quarterly report as a public company kayla'sar let's start with you on trade >> the trade war between the u.s. and china is set to heat up the trump administration is planning to censure china on relthz freedom and human rights in a hawkish speech in the works from vice president mike pence the speech will be after next

week's 30th anniversary of the tiananmen square massacre a white house official confirms. and it comes as china weighs cutting off critical minerals from the u.s. manufacturers. as a chinese diplomat accuses the u.s. of naked economic terrorism. and as rhetoric ratchets up in state media and of course those tariffs from china set to increase on saturday wilf >> kayla, thank you very much for that let's get to diana olick with the latest housing data. diana. >> reporter: wilf, pending home sales. this is a measure of signed contracts to buy existing homes. they fell unexpectedly in april, down 1 1/2% for the month and down 2% annually that's the 16th straight month of annual declines now, interest rates were low in april but not low enough to offset the strong run-up in home prices rates this week crossed below 4% to 3.99% according to freedie mack, which has some thinking the home buying season may be better than the spring but only if more affordable homes come on the market back to you. >> diana, thank you. facebook is holding its annual shareholder meeting today in menlo park, california

our leslie picker is there with the highlights leslie >> hey, sara the q&a portion is currently under way at the hotel mia behind me here so far here's what's happened. all four company proposals, that includes election of directors, compensation, ratification of the auditor, those were all approved all eight shareholder proposals aimed at reining in mark zuckerberg's power such as eliminating the dual class share structure and exploring the strategic alternatives for the company. those were all rejected because mark zukerberg has a majority control over those higher powered voting shares. mark zuckerberg gave his remarks moments ago where he talked about new priorities for the company moving away from the traditional priorities which were really centered around growth and growing the business. and he talked about progress on social issues, specifically appealing to regulators to help define what is acceptable speech >> there needs to be an updated

regulatory framework around each of these issues. and it's not just one thing. it's on content regulation online, to eliminate the spread of harmful content on elections and basically governing in each country around the world what should be political speech i don't think our company should be decided that for democracies around -- in different countries around the world. >> now, he also spoke about three other priorities they'd be focused on including call tait i havely new experience, momentum serving businesses particularly small businesses as well as a goal of being more transparent with both users and the media in explaining what they really stand for, guys. >> leslie, thanks very much for that we've got just under 55 minutes left of trade and we are just negative on the s&p 500. well off the highs but also not meaningfully lower let's discuss the markets further. joining us now mona mahajan from allianz global investors of course stephanie link still with us for the whole hour

mona, relative day of calm compared to what we've seen recently does that give you a chance toed more risk to your portfolio or add more protection? >> i think it's the latter at this point what we've seen coming into the year there was a lot of risk on sentiment but that was driven largely because we were seeing green shoots out of china, earnings in q1 were better than expected but what really surprised the market clearly was this china trade war and i think this has now become an overhang, a cloud or a dark cloud on the market for the foreseeable future and it's interesting because we were used to seeing the u.s. dictate terms of this trade war. president trump's tweets, et cetera but what we're really seeing now is the chinese and the chinese media come out pretty strongly saying they're willing to be patient, they're willing to take a long march president xi indicating that they may have to start over. and so those rumors that perhaps they will wait out till the 2020 elections becoming more and more likely at this point i feel like this is a long road ahead of us and i think the down side has not fully yet been

priced in. >> just to keep score, we're down about 5% for the month of may heading into the final day tomorrow still up double digits for the market on the year how much more down side do you see left given some of these risk factors that are building up >> it's interesting because the cyclical sectors have actually fallen much more than 5% right? some of them are down 15% to 20%. i mean, the semiconductors, for example. they've been a disaster. >> quite a bit of a bid lately >> that's what's interesting in the last couple of days as the market's been chopping around it's been actually the more aggressive cyclical economically sensitive stocks that have actually stabilized and been a little better relative to defensives we want to see that for sure as leadership. but i just don't know how much in terms of legs that it has because we really aren't going to get any kind of clarity at the very least until the g20 then you have corporate earnings right? so we have a couple of weeks here where we can just chop around my strategy has really been to have a barbell, to have the cyclicals because they are beaten down for sure

in fact, i was adding to a few today. but also to find some quality companies that have good cash flows, good dividends. just as a protection >> the barbell >> you've got to do the barbell. you absolutely do. >> stephanie, what did you add to today >> i added to land research. you know, i have been a big fan there. i have a new name we're going to talk about in a little bit but i also think some of this discretionary is really getting way overdone soif my eyes out on some of the companies. like a pvh for example, down 14%. the stock trades under ten times earnings >> decelerating growth, though >> absolutely. but you know what? if you see stabilization in the currency and you have a good product internationally, which they do, and they've got great leadership, it's on my radar wasn't adding to that one but it's on my radar you've got to buy some of these really beaten down names you have to. >> i love that you've teased your mystery new stock you're writing the scripts for us >> there you go. >> mona, one place to have been in may and made gains was the

bond market. yields lower, bond prices higher what is that telling you about what bond market investors expect, and are they right >> i think the decline in yields we've seen really globally is one reflecting the outlook going forward. i think long-term bond yields are usually the outlook for growth and the outlook for inflation, and i think in the u.s. in particular that look for growth has softened a bit and the outlook for inflation has been soft for some time. i do think u.s. buying yields also tend to be somewhat anchored by global rates and we've seen a higher percentage of negative yields and global bond yields and so i think generally what the bond market is telling us is there is more down side to come. they've gone really faa far really fast. so perhaps we will see a best a bounce or some stabilization in bond yields in particular but what we're really watching in addition to the yields is the curve and we've gotten five days now of an inverted three-month ten-year yield curve which historically has been a recession indicator. but what we see is that there's a lag time between when the

curve inverts and when we get that recession on average, about 14 months. could be some time to come but we're watching all these signals carefully. >> mona mahajan, thank you very much less than an hour away from uber's first quarterly report as a public company the stock still well below its $45 ipo price. deirdre bosa with us now and throughout the hour to count down the three most important things investors need to be watching in this report. deirdre, what is your number 3 >> number 3 has got to be uber eats because it's not just ride sharing that's facing those pricing wars food delivery has become an incredibly crowded and competitive space. and one that uber has made a very big bet on. it is the fastest growing part of uber but it's also costing more and more as it signs on more big chains like mjtsds and starbucks and it's charging them a lower service fee so that they can shore up its market share, get more consumers onto that uber eats platform so as much as we talked about subsidies and discounts dragging down uber's ride-sharing revenue the eats piece is facing similar

challenges and it is critical to uber's path to profitability guys >> deirdre, thank you very much for that we look forward to the other previews coming up in the rest of the hour. still to come, more retail executives are warning about the impact of tariffs. how that could translate to higher costs on the shelves ahead. >> plus, as we've mentioned, judgment day for uber. but a number of other big reports are dropping after the bell as well a preview of what to watch for costco, p, dgaell and more dell's down about 30 points. 50 minutes to go till the close. aww.

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asset classes. first the move as you might expect we're down more than 5% in the s&p in exactly a month. we peaked april 30th in that index. this is the daily sentiment of futures traders being kept for a very long time this is the percentage saying they are bullish on the s&p 500. again, this is a daily survey. and here you see a really pretty good move down here into the mid 20s. from 90-plus percent just a month ago. that shows you a lot of optimism coming out of the markets, some pessimism building that's a positive. keep in mind if the market has a deeper downturn it can get to much lower levels and stay there. that was the fourth quarter of last year. i'm interested in this over here, though that was june of last year we had a 7% pullback and we didn't get quite as bearish as we are now the makings are there for some kind of a contrarian bounce. let's look also at some different indicators this is the net equity position of tactical investment managers. this is another weekly forecast. it's down in the 50s, mid 50s.

you can see again, we were lower in the fourth quarter, but this is a pretty low level. it's actually showing you that people have pulled in their horns, people are not really betting on lots of upside. not a lot of leverage in the market right now that's a net positive but in itself not a catalyst. >> with that second chart the graph is influenced by equity market moves as opposed to necessarily altering asset allocation >> it is in part. that's right but these are very quick-moving tactical funds they use a lot of leverage they decide exactly day to day how much to own. so yes, you're right, wilf but for the most part this is discretionary moves. >> okay. mike, thanks very much for that. stephanie, clearly the analysis here is us trying to work out whether we'd bottomed in terms of bearishness you're topping up on some names. is it fair to say you're starting to look around the corner >> absolutely. you have to. >> has the market been on the drudge report home page report yet? >> buy low and sell high, guys we were talking about this in december remember i was telling you i was

under my desk and i was pressing the buy button because it's really hard to do that but when sentiment starts to go really negative and you've gone from -- i'm careful on the daily sentiment. i don't really like to look at daily. but if you're going, to the sentiment indicators are clearly reversing in terms of going down, and that's when you really start to wnt to look and pick at stocks and i actually think that you're never going to call the bottom but you average down you pick every day and you look at the quality companies you that really have confidence in terms of fundamentals, and that's when you start to really get more aggressive. >> and what gives you -- treasure aye yields, 10-year, 2.2 handle is that a sign you think things have got a peak bearishness? >> i don't know if it's peak bearishness. but these indicators are very interesting to me because they are starting to point toward people are not panicking but really very, very negative and out of the market. so it's not going to take a lot to get these stocks going. as i mentioned earlier, we have to wait for g20. we probably have to wait for earnings we probably have to get some indication from the fed in terms of what they're going to do.

all of that, though, i think you don't want to wait for the day you just want to start to average in >> we have 43 minutes left to trade. we're down just slightly on the s&p and the dow. still ahead on "closing bell," we're counting down to uber's first earnings report as a public company with three key things to watch from that report we'll bring you number 2 on the list of top three things to watch. coming up. and after the break outspoken bank analyst mike mayo is pulling out the world's smallest violin for citigroup saying management is making too many excuses he's going break down that new cool of course he's got a prop. he always does >> that really is the smallest violin i've ever seen. >> i can't even see it mike mayo when we come back on "closing bell.

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deutsche bank saying at these levels ups has defensive play among heightened u.s.-china trade uncertainty. the firm citing a healthy balance sheet and manageable china exposure downgrading verizon to neutral writing that despite verizon's positioning as a defensive investment its massive run-up brings its valuation back to historic levels. >> and citi has a path to growth next year and the market is overly pessimistic on the stock. meanwhile, wells fargo out with a note a big more critical of

citi while the firm maintains a buy rating a stock analyst writes citi is not showing enough urgency with its restructuring plan and mike joins us now. wells fargo senior analyst how are you doing? >> thanks for having me. >> you've had a buy on citi for quite a long time but you've got a sell on the management now is that a fair sum maix of your recent note? >> our plan a is that citigroup gets the highest improvement in returns of any large bank and that the stock doubles over the next three to four years it's just that now the plan b moves more to the fore plan b is management does not get the job done and with the stock now below stan jibl book value the stock market's saying citi is worth more dead than alive. so we find it extremely unlikely that one year from now the stock is below tangible book value and you have the same model and management and if the stock's here a year from now a lot of people have egg on their face. the ceo, the oared, and me, yours truly because we certainly recommend citigroup as our cap

idea it's been the top performing large cap bank stock this year but management needs to do a lot more they have worst in class returns. returns on equity tangible was 11% last year for both jpmorgan and bank of america. it was 16% and by the way, their valuation at the larger banks are much higher than citi so worst in class returns. worst in class stock market valuation. and what we hear we hear a lot of excuses i went to the annual meeting for citigroup and the chairman was asked why are the returns, why is the performance of bank of america better and they said, well, that's a different business model yesterday the ceo presented and he brought up all sorts of excuses from, you know, mexico, you have a populist president, the stock markets in asia haven't done very well capital markets, the wallet share isn't quite as good. there were oversized cards at the start of the decade. this is too many excuses get the job done and so what we did here is we brought the world's smallest

violin to play a sad song for citigroup because they're selling such a sad tale. here's the world's smallest violin saying we feel really sorry for you. but you know, what either we can play that sad song or city can show more urgency here >> but mike, to that point, if hypothetically management was switched overnight do you think it would immediately trade higher or not? are they not already trying to fix all these problems you that identify but they identify as well. >> well, again, plan a is to get higher returns and the ceo and the chairman both have said that citi should get returns this year and next that consensus does not xep them to achieve if they get the returns, fantastic. we think the stock goes much higher if they don't get the returns, they don't get a 12% return on equity, which is their target, then we think that yeah, you should consider restructuring. i went to the annual meeting almost every time for the last six years and said why don't you sell mexico, why don't you sell pieces of asia, why don't you

more aggressively reinstruct your consumer business which has a pretax margin that's 1/3 less than its other large bank peers. they have not done enough. >> ceo -- you criticized the ceo for a long time about what you're talking about we've been waiting and waiting and waiting. so what is it going to take for this ceo to get the sense of urgency to get what you want done >> i think they're taking some starting step. they have a new cfo, a fresh set of eyes. he's more engaged. you have a new chairman who talks the talk we need him to walk the walk they restructured consumer the concern is it might not be enough what's interesting is the activist investor has an agreement with citigroup where they get confidential information and in turn they're obligated to support management but that ends at the end of this year all eyes should be on value act and if not what are they doing with their almost billion-dollar stake in citigroup we think the next three quarters are huge for citigroup again, we think they'll have

higher returns but with the stock below tangible book value you can have a good strategy, good management, and mike orbat the ceo's a very smart person but if you're not getting the job done, if you're not instilling enough confidence in the market to have your stock trade above tangible book value frkts stock market's saying you're worth more dead than alive, then all options must be on the able. and as of today all options should be on the table with the stock at this price. >> are you in citigroup at all >> i am. it's a much smaller position because it's been such a frustrating stock. something can stay cheap for a very long time that's called a value trap actually bank of america i think has a better game plan in terms of cost-cutting and operating leverage and responsible growth. and it's trading at a very attractive valuation too >> citi is the global bank, is it not that's the one with the international exposure and that's where the problems are right now in the economics and markets universe >> it's always trading at a relative discount to the jpmorgans and bank of americas

it's a question of whether that's pro longsdlonged -- mike quickly, if we were to see a rate cut that help the secret or hurt it? it would steepen the curve but mean lower short-term rates. how do you expect the bank to react? >> lower interest rates allows people to pay their bills. that's the biggest risk for banks. as long as credit call the's good which it is that's the biggest factor you certainly would have a mixed impact on the net interest margin but you're missing the market's missing a 25-year structure'll breakout for the benefit of scale. bankamerica, citigroup, jpmorgan, you should have record industry efficiency coming up. so what i say is don't cry city group over what hasn't gone right. we play you a sad song our on small violin we say recognize the structural change and instill that confidence because right now citigroup's trading at recession prices without a recession

>> great to see you. thanks very much best prop. >> is that from a doll snous. >> it's a stradivarius >> 2020 presidential hopeful john hickenlooper joins to us talk tariffs and breaking up big tech whether he's in favor of either >> uber making news this week after saying it would kick low-rated riders off the platform sara and i will reveal our scores after the break >> both bad. wait till you hear -- >> both bad. stephanie kills us as expected here's what people in new york think of that potential change >> i'm not worried about being kicked off of uber i guess that is a pretty valid concern for a lot of people but i use uber super often and i'm a pretty good customer >> for younger people it's probably going to be an issue if they're coming straight from the bars >> i'm not worried about it. i think i'm pretty friendly to the drivers. >> sometimes when mistakes heshld i don't think ty ou be kicked off the system for just one mistake >> i'm five-star forget about it.

cnbc news update with sue herera >> hello, sara hello, everyone. here's what's happening at this hour the national september 11

memorial and museum dedicating a new memorial today it honors those who developed an illness or died after being exposed to dust and smoke released in the collapse of the world trade center towers. former new york mayor michael bloomberg joining family and friends to officially open the 9/11 memorial glade to the public >> today we are dedicating this memorial glade to all who became sick or died because of causes related to the attacks and to all the men and women who took part in the rescue and recovery effort that ended on this date 17 years ago a push to make washington, d.c. the 51st state gaining support in congress. at the d.c. war memorial the city's non-voting representative eleanor holmes norton announcing a crucial step in the long-running campaign to make the nation's capital a state in the dinosaur hall at the smithsonian museum of natural history reopens next week, this

after a five-year renovation t-rex is claiming center stage, of course. of the exhibit, which opens june 8th. that's the news update this hour, guys just in time for tourist season in d.c back to you. >> sue, as always, thank you very much for that now back to the markets. 27 minutes left to trade here are the three things driving the action fed vice chair rich clarida says a rate cut is possible if the dollar is steady and oil plunging mike santoli with his second dashboard on earnings growth >> we've been concerned with a lost macro issues and a lot of these forces like the rally in bonds and obviously trade policy but in the background the earnings picture has continued to soften up a little bit. look at the path of second quarter s&p 500 earnings expectations since last july. so essentially ten months ago we

thought perhaps that we had 10% earnings growth for the current quarter we're in right now obviously it's been a pretty steep decline. it actually has not quite bottomed yet we're basically around the flat line for the second quarter. we also were around the flat line for the second quarter going into the reports and companies beat by a couple of percentage points. maybe that's the situation right now. but it still leaves the market kind of having a difficult time getting a fundamental impetus to go higher if in fact corporate earnings remain stagnant due ought whole first half of the year look at the full-year forecast for 2019 it's a very similar trajectory we also thought 10% last july was going to be for 2019 now we're just about 3%. we're still hoping for that second half combark that's going get you a 3% earnings year, maybe a little better, maybe mid single digits and that's not terrible but what it means is the market is not any appreciably less expensive right now despite the fact that stocks are down 5% and it hasn't gone anywhere we have to watch this. we've had a round of bad

consumer earnings and maybe some downbeat guidance but not yet a critical mass to have a picture of what the second quarter might look like. >> mike, thank you we've got 30 minutes to go until uber released its first report let's get back to deirdre bosa for the second key thing to watch in this report, deirdre. >> number 2 is ceo dara kos roh xiao hi and whether he can reassure shareholders on uber's first conference call. shares still well below their ipo price and short interest has surged over the last week. so kos rhosrowshahi needs to explain. he's done a lot to turn around uber's image now he needs to convince investors that uber can still innovate and fiercely compete under his leadership guys >> dee thanks very much for that the company unveiling a new policy that would ban passengers potentially with very low rider ratin ratings. >> while uber didn't mention what the actual threshold is for

giving passengers the boot, i don't think wilfred and i would fare very well turns out he has a 4.42 rating and i have a not much less that thetic 4.451 stephanie has a 4.81 >> if you're on time and friendly and maybe a good tip every once in a while. >> i tip i just cancel a lot. >> i always sit in the front, which annoys the driver. my head hits the roof in the back of the toyota camry >> more leg room in the front so you go all the way back. >> i think you could gain -- you could gain a lot of ground if you just move in the back. want to go in the trunk maybe? >> no. i'm happy to just keep sitting in the front and i will continue to do so >> they don't make cars big enough for him seriously, khosrowshahi, h

had a lot of credibility going in as the former expedia ceo not a founder. what does he have to do? >> he's an operator and he's a strategic thinker clearly to be running this company what he really needs to do is instill confidence in the game plan that he has set up. the numbers aren't going to mean that much. it's going to be the conference call and their path to profitability. xts a couple of years out. we get that. but we want to know how he's going to get there just this year they've got kind of a hockey stick in terms of expectations for earnings. or losses. i want to see if theg show better results or progress >> how tense is the market on this one if the guidance is -- just for the short term the next couple of quarters a little worse than people expect. do you think the reaction will be oversized >> i'm glad the stock has pulled back or it really hasn't done that well. it's not like lyft, though lyft has really pulled back. is that one to me is more

interesting because it's a more simple business model. they certainly are investing they certainly are losing money. but for uber they have to convince investors their strategy is the right strategy so i would really hope right out of the gate they don't miss their preannouncement and they can give us some good indications as to their strategy >> all right coming up in the next hour, those uber earnings. meanwhile, trade tensions hitting major retailers. up next we're going to look at companies citing tariffs and the impact they're saying it could have on the consumer

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here's a look at cbs and viacom. david faber breaking a story earlier today that according to sources the cbs board is preparing for merger talks with viacom that could begin in mid june both stocks trading higher on the news up around 3% each >> retail ceos expressing concerns about the trade war and the economy. dollar tree ceo gary philbin warning on the company's earnings call this morning that while the retailer has not adjusted its forecast yet new tariffs would be "impactful to our business and especially to consumers in general." meantime, pvh stock lower after reporting results after the bell yesterday. ceo manny tirico sitting down with jim cramer discussing the slowdown he's seeing >> what we're really just seeing is slowdown in growth and a slowdown in retail sales in general as we're looking at it big impact here in the u.s. is lack of international tourism and tourism purchasing and the strong dollar continues -- currencies from when i was here three months ago

are down 3% to 6%. so we're really feeling it there as well. >> let's discuss with dean mackey, chief economist at point 72 asset management. dean, welcome back >> thank you >> nice to see you so what kind of shape is the consumer in? >> i think the consumer is in good shape at this point tariffs clearly are a negative and will cut into consumer spending growth to some extent but the labor market is quite strong right now, and that's always the main source of income for consumers. so that's their spending power, is the labor market. that looks to be proceeding pretty well at this point. >> has the consumer worsened at all in the last six months >> there's been some ups and downs. q1 was on the soft side. i view that as more regular cyclical ups and downs i think the trend in consumer spending right now is somewhere in the 2 3/4% to 3% range which is quite good. >> we got our last look at first quarter gdp today still above the 3% level

what happens to that number this quarter? >> it's going to soften in q2. the tracking estimates we have are somewhere in the 1 1/2% range at this point. it does look to be slowing down in q2. the growth is somewhere between those two estimates. we think we're shifting down from a 3% economy into a 2% to 2 1/2% economy >> do you think the fed might be forced to move based on what the market is doing at the moment and if it does how much does that boost your forecast for the rest of the year >> it's certainly possible that happens. it's not based on what we've seen so far. you know, the market's still up for the year and i think the fed really doesn't want to get in that position of responding to every market up and down with their policy but i think if we get into a situation where the markets really are seizing up, stocks are falling, there's a lot of uncertainty, that's a situation where the fed may consider a cut at some point. >> just because we don't talk to you about much, how different is your life now working as an

economist for steve cohen instead of a shop like barclays? >> most of the day-to-day work is similar the main difference is i'm not going out to see all kinds of clients outside the office >> similar economic views, though >> exactly >> dean, thanks for joining us great to see you we have 15 minutes left of trade. the dow's up by 37 points. coming up we've got your last chance trade >> plus uber releasing results after the bell we've got the number one thing investors need to be watching in this report when "closing bell" returns. we've done it! hah! great work old chap. we'll be rich and famous. well i'll be rich, you'll be famous... at least amongst your digging friends. here's a thought, ever consider investing? e*trade has easy to use tools that help you get started. you like playing with tools don't you? 'course you do.

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12 minutes left in the trading session. stevie, your last chance trade heading oin the close. you teased it. it's a new one >> i know you're going to be surprised when i tell you. walmart. i haven't owned walmart in years. but here's the thing >> a lover of costco >> and i still own costco. and we'll see after the close because they report. we can do than.reason walmart is interesting is because they've had the sales momentum for the last year. what they've been missing is the margin piece because they've been heavily investing in digital, online, private label,

fresh foods, organic, et cetera. last quarter was the inflection. they actually had gross margins up six basis points. doesn't seem like a lot but that's a lot for a company seeing double-digit declines in gross margins. better top line. good gross margins what's my favorite word? operating leverage and we got that. and i think we're just at the beginning of that. >> aren't you late >> i could be late the stock trades at 20 times forward. i think earnings are going higher and i think with only 50% of the sell side having buys on the stock at 20 times forward is trading at three or four multiple times cheaper than consumer staples i view this as a staple. barbell, cyclicals and staples and defensives, this is my safety kind of defensive name. >> what if other retailers that have lagged that kind of catch-up whether it's in online or other areas, the innovations do start to play catch-up? does that change the direction on the gross margin again? >> i don't think so. because they have a plan in place and they have a lot of levers to pull they have a cto by the way who just came from google, was at

amazon, was at microsoft, and that's kind of an interesting thing. ahead of procurement they've never had a head of procurement. there's a lot of efficiency that's they can do so i think that the stock is not underdiscovered or not discovered i just think that there is opportunity for further appreciation from here >> we've got some big earnings coming your way after the bell deirdre bosa of course watching uber's first public report courtney reagan is monitoring costco which stephanie will be watching also cap and williams sonoma eric chemi has dell for us deirdre, the number one thing to watch for in uber's numbers is >> the number one has to be losses because this is a story about the growth of uber's massive losses and when if ever it can get to profitability this part quarter those losses are expected to have accelerated to a billion or more dollars revenue growth meanwhile likely continued to slow. so essentially, guys, more of the same trend that has not impressed public markets so far. lyft delaying its quarterly call so 2019 would be a year ever

peak losses. can uber say the same thing or even identify a date when the cash burn might start to slow? guys >> deirdre thanks very much for that courtney reagan has a preview of all the retail names for us. >> costco expected to post earnings of $1.82 on revenues of 34.706 billion growth of more than 7% for both of those metrics remember costco still reports monthly comps. gap inc. total comparable sales expected to fall more than a percent with growth only at old navy lower comps have been banana republic and gap global expected earnings estimates over 32 cents. that's 25% below last year on 3.77 billion of revenues then williams sonoma expected to show slight earnings revenue growth of 69 cents and 1.237 billion respectively with comps up 1.7% led by the west elm division sara >> thanks, courtney. eric chemi now, what can we expect from dell's results

>> sara, this will be dell's second earnings report in its most recent run as a public company. the street's consensus expectation, $22.2 billion in revenues $1.21 in eps but both numbers have a wide range with ten revenue estimates spreading across a billion dollars and we've got a 28-cent spread on the highest and lowest earnings targets also watch for that gross margins number with adjusts looking at about 31.8%, just shy of 32. it wouldn't be a surprise if we see a big move in the stock. near-term options are implying a 9% move. dell's been on a good run recently up 17% in the three months since its last quarterly report back to you. >> thanks so much for that up next we'll be coming back to trade to close with our closing countdown. we've got all the angles covered for e longelth"csi bl" a-team. just 7 1/2 minutes left to trade. don't go anywhere. ♪

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but you're not mad, because you have e*trade, who's tech makes life easier by automatically adding technical patterns on charts and helping you understand what they mean. don't get mad. get e*trade's simplified technical analysis. welcome back we've got just under five minutes left of trade. time for the closing countdown let's break down the day's market action. r.j. grant from kbw here to trade the close. mike santoli at the dashboard. bertha coombs at the nasdaq. seema mody at the new york stock exchange r.j. grant good to see you. first the banks trading down a bit today. yield picture hasn't really worsened today

why are they trading down today specifically >> well, thanks for having me. the big news in banks across the board is seeing a derisk in the subsector. investors are clearly nervous with global growth clearly as long as this trade war continues to drag on i think it's more about forward looking into the data that we're going to be getting for may and really some worries about global deterioration. kind of more of the same as we've been seeing for the last couple of weeks. >> so we're seeing some interesting correlations, r.j. crude oil's down almost 4% today. kraeshz treasure aye yelds lower again and the dollar trading near two-year highs as an equity trader how do you process all those big moves in other assets >> it's a great question i think from the view through

financials it's just investors clearly don't want to be anywhere near the space because they are looking at all these macro dynamics such as weaker oil, higher treasuries and they're just saying you know what, i'm comfortable sitting on the sidelines until i have some clarity on what the data's going to look like and where we are with any kind of trade negotiations and heading into g20. >> all right r.j. grant, thank you very much for joining us with the possession here as we head into the close. let's go back to mike santoli for a look at the s&p. mike >> let's look at the s&p over the last year. just to give you a sense of the field position going into the close and beyond we had this little tentative bounce today we also did toy with the 200-day average, which is ten points below where we are right now wanted to point out a couple of levels that some chart folks are focusing on right now. faris is 2722, which is right here if i can draw it. there you go that's the low from march. that's basically the most recent significant low.

that's not too far down from here that's only a couple of percent. the more significant one probably is around 2650 which is there. that's several percent below that the reason for that is it's about exactly as far down from here to there as it is to the next move. another 100 or so points down in the s&p. it's also half the gain from december to the high in april. in sort of technical terms it would be a 50% pullback from that level i think the initial steps to the down side if in fact the market fell from here, not saying we're going to do about but that's what people are focusing on. let's go to the nasdaq with bertha hi, bertha >> hey, mike we're seeing some tentative steps at recovery in terms of chips. last week or so we had seen things fade at the close now we're kind of floating up here right now chips up nearly 1% and better than break even for the week some of the most beaten down names today are the ones that are leading the way higher on the other side we have 200 new lows among them some of those stocks that are really broken like

mylan, kraft heinz which are dealing with some significant issues particular to those companies. but one of the standouts today is the retail sector dollar tree is the best performer. companies came in in line on earnings but says so far it's been able to mitigate the tariff impact the next tranche not so sure this afternoon alta and costco on tap let's send it back downtown to seema. >> we're at post 5 watching shares of uber ahead of its earnings report. take a look at 39.75 down half a per-cent on the day and 11%fro its ipo. let's talk volume. 20.5 million shares have exchanged hands. that's well below its 30-day average. keep in mind on its first day of trade 186 million shares exchanged hands. back to the broader market in addition to uber we get reports from alta, costco, gap among others keep in mind future earnings estimates have come down substantially from the 1st of april. 0.9% versus a 2.8% expected in april. to the broader markets we're

looking at the dow up about 28 points we were down 57 points at the lows the big leaders on the dow, mcdonald's and shares of intel s&p 500 also expected to close in the green now time for the second hour of "the closing bell." very good afternoon to you welcome to "the closing bell." i'm wilfred frost. >> and i'm sara eisen. looks like we've got a positive close for the first time all week we are here with mike santoli, cnbc's senior markets commentator. check out the action as we settle out the day on wall street the dow higher by about 44 points final tick up there into the close. it was the defensive of the defensive though that led the move up in the dow coca-cola, mcdonald's shined brighter than the rest s&p 500 .2 of 1% kind of a mix in terms of sector performance. real estate did the best, then health care, then consumer

discretionary. energy the worst crude oil declining more than 3% today. nasdaq up a third of 1%. underperforming again, wilfred >> a couple of those consumer names performed pretty well. apple interestingly a decent day, up half a percent, improving trade fears in that sentiment as you said oil down a full 3% weighing on the energy sector gearing up for uber's first ever earnings report. deirdre bosa's standing by to break down those numbers wedbush's dan ives and ark invest tasha keeny also here for instant reaction when we goat those numbers. >> it's not just uber. also awaiting results from costco, gap, williams sonoma, ulta, dell and vm ware first joining us to talk about the market day stephanie link is still with us from nuveen. and mike really kind of an interesting mix of cyclical and defensive groups with lower treasury yields and much lower oil price. >> i would say yields more or

less stabilized. they did not rush to further lows at least below yesterday's low which i think -- >> so you're defending your -- >> well, 221 was intraday low yesterday on the 10-year essentially it was a time out day. basically the bulls and bears said we'll fight it out another time you have the makings for some kind of at least reflex bounce in stocks here just in terms of what sentiments the market's gotten down 5 1/2% not a lot of evidence that there's any energy behind such a reversal move. especially when you consider tomorrow's the last day of the month. you would have thought you had the ingredients for some kind of a bond into stocks rebalancing trade at least for pension funds. we'll see if that materializes but so far it's been pretty inconclusive >> does end of the month make a difference on this >> it doesn't necessarily make a difference the only reason it does is if you do have those very big mechanical funds that do want to rebillion at the end of each month. there has been a very stark divide between stock and bond

performance. that's the only time you would ever expect -- >> you might have expected to see some buying given -- >> buying stocks and lightening up on bonds. but it's hard to handicap whether in fact you're ever going to see that flow through not a quarterly close, it's just a may close, right >> month of may, stephanie down 5%. on the s&p 500 does that feel right to you given the magnitude of some of the concerns right now about a slowdown in growth and the fact that we're in for a prolonged fight with china >> i think it could have been much worse but as we talked about before there are a lost sectors that were down a lot worse. i'm personally happy to get rid of may and move on to june i can't wait till earnings season we've got to get through the g20. but i really am troubled by copper and oil copper and oil is telling you that people are obsessed with the slowdown, not only globally but here, and we are seeing a slowdown i do not think we're going into a recession, but i don't know if we can handle really 1%, 1 1/2% gdp growth that well, quite frankly. i think people will have to

reposition i think it's a one-quarter blip because i do think we will get clarity one way or the other on trade. we will get earnings that are not recessionary and valuations are attractive. and that's why before i was saying i'm buying both, buying some cyclicals and buying some defense and that's the way i'm going to play it until we have more clarity overall >> i don't know if we can look at an intraday s&p 500 chart but mike, how important was that final hour of trade today, that it's turned around some of the intraday declines? >> i don't know if it's necessarily going to be decisive in terms of saying whether the market is really going to firm up here as some kind of a bottom i do think it was -- when you saw the very tentative opening this morning a lost times after you've had a steep sell-off and you see the market kind of just drifting up at the open, that sometimes is a real setup for people to slam the market down and say we're going going to new lows it didn't happen today it seemed people were sold enough, people were pretty defensive even going into the high a month ago i don't think most funds were not really super long and

leveraged and aggressive so i do think a lot of that's been unwound i guess it's a positive. it's very hard to say that you want to draw it from here exactly where we go with that. in terms of the slowdown story, today's gdp number, right? this is the revision of the first quarter numbers. revised down slightly 3.1. what i'm focused on is the nominal gdp number right? before 50d justing for inflation it was 3.8%. down from 3.9% at first estimate below 4% nominal gdp is kind of stall speed for the economy. it's not something that feels like companies have huge pricing power and they have huge volumes. it's fine. but in terms of what we've become used to in the last couple of years, that's the reason the bond market can rally in a quote 3.2%, 3.1% real gdp world. >> also there's a lot of gloom and doom around retail names which we've been talking about, but dollar general and dollar tree both went up a lot today.

>> yeah. >> hang on one second. >> we're going to get to uber numbers that have just hit deirdre bosa has them for us >> hey, guys those results pretty much in line with estimates and what uber was tracking a few months ago before its s-1, before its ipo. so revenue coming in at $3.1 billion. that is slightly better than the 3.04 billion that was expected q1 net loss totaled $1.01 billion. and that is in line with what the street was anticipating. so essentially, guys, revenue growth continues to slow they're still at a healthy 20% year over year while losses are accelerating the trend leading up to this ipo is intact for now. shares in the after hours, let's take a look, they are up about 3-3% of course we'll wait to hear more on their conference call. another metric that investors are looking closely at is gross bookings this is the amount collected before payouts to drivers. that is up 34% year over year. and that's close to the top end of the range that they gave in preliminary estimates. now, this gives investors an

idea of uber's market if it was not paying so much out in subsidies. lyft stopped reporting this figure uber keeping it for now at least. we'll continue digging through this report and bring you more as we find it including more numbers regarding those driver incentives and take rate and uber eats. back to you. >> all right, deirdre, thank you. keep us posted let's bring in in the meantime dan ives from wedbush securities and tasha keeny from ark invest. welcome to both of you dan, what's the post important number that wall street is going to watch in this report? >> this is really about bookings bookings came through stronger than expected. that's going to be the focus marginally better than expectations it's been a bumpy road since the ipo. it's an execution story. it's definitely a first step in the right direction for uber comes down to the call but the feather in the cap for dara and team so far >> what about profitability, dan, overall and the comparison between eats and ride sharing and which one's improving

faster >> it's definitely ride sharing. and i think they talked about in terms of where they could get to profitability, it's going to be an uphill battle in terms of eats you see the pressure hair seeing from grub hub and others out there in the space that's really going to be the big question for investors can they ram not just tape grades but margins on that front? that's going to be focus right here as right now even with binoculars you can't see profitability. >> do you agree, tasha, on the books bookings 41% growth if you take out currency it's about 34%. what does that tell you? >> i think it's good that uber's still reporting this number unlike lyft. we thought they might have been hiding that basically because we think the overall -- growth is slowing down and we see that but thinking longer term, so at ark invest we're long-term investors, and uber does not have a credible autonomous driving story. so in the future they're not going to be able to maintain the cut of gross bookings that they take today which is around 20% we think it's going to shrink to

the low percentage points because it will goat technology provider who will get the majority of that >> while dan thinks margins are going to improve you think they worsen even when we get to the autonomous driving era >> yes, exactly. and what we see today rngs insurance costs are a huge portion. that's only going scale as rides scale. >> so what levers do they have do they take a bigger cut from drivers? drivers are getting angry about that right now it looks like they're fueling eats with subsidies. so doesn't seem like a profitable business either even the core ride hailing business doesn't look super attractive but certainly longer term they're going to lose out on autonomous. >> deirdre, you've been digging through the numbers. what else have you spotted >> uber breaking out revenue there's something that sticks out not in a good way and that's its performance in latin america. this is one of the its fastest growing and important markets. revenue shrunk by 13% year over year indicating the fierce

battle it is facing against chiebz ridesharing rival didi is taking its management position another soft point in this report i just want to point out, declining take rate that is a percentage of the total trip or delivery that uber earns now, eats and rides combined fell to 18 from 22%. essentially the lower that number the more that its drivers keep and uber does not get for its bottom line. harder to get profitable another major expense i just want to identify is driver incentives they more than doubled last quarter. most of thain creased due to eats where we know the company is investing heavily and this is another very competitive crowded market, guys >> deirdre, thank you. dan ives, you and i were sort of chatting ahead of this report, you were really wanting to know that tape rate explain why that's significant and what the number tells you. >> 20% is sort of the line in the sand the question is how much they're

getting from each ride as well as even the combined from eats i think there's definitely pressure you're seeing from the eats piece but it comes down right now if you look at them versus lyft, you know, uber right now is doubling down on inkraentives. they're not going to see the take rate. but they're going to try focus on growth on that threehead monster of rideshare, eats and -- i view this as a positive in terms of bookings of that stature given the take rates we're seeing that's going to be a focus on the call but the line in the sand's 20% in terms of take rates. >> what's your take on that latam figure down 13%? >> we were kind of white knuckles on that area as deirdre talked about in terms of competition. i think that's going to rebound. we view that as a little more of one quarter sort of a blip in the start of a structural broader issue there. so not too worried about that but that will be a focus in the comments call. focus on bookings and umtsly

that came in better than expected and i think investors can breathe easier right now at least on the initial print >> stephanie, what's your take >> i kind of think the reaction tells you everything it's not doing much. and yet the stock is down from the ipo price. that's telling you people are disappointed and there's a lot to be disappointed here. it's kind of not surprising. we know growth was going to slow on take rate, right? incentives were going to go higher your reaction, tash arks in your comment about insurance. that is a big issue for both lyft and uber and lyft has said that insurance actually is a source of an area where they can see improvement going forward. you actually think it's the opposite for uber. is than uber-specific thing? >> it's not an uber-specific thing, actually. for both of them one thing i don't think a lot of people are talking about is they're investing in scooters. scooters are 200 times for dangerous than cars. that is going to ramp insurance costs significantly. we don't even think it's a profitable business on top of that >> tasha, i just wanted to ask, we all know here that ark is

very bullish on tesla. you're very bullish long term on autonomous driving why does uber not benefit from that in a way that other people would think? >> i don't see uber's autonomous strategy is anywhere and the way you would tell -- >> ride-hail company not do well once autonomous vehicles arrive because they cut the costs to the driver >> we think the technology are the ones who are going to join the majority share of economics. what uber could do is partner with a company like waymo if they wanted to but again, that 20% cut they take from gross bookings should go to the technology provider. maybe they get a 3% to 5% cut for bringing the customers in. given their testing strategy, given the scale they have in autonomous right now, the number of cars on the road, we just don't see them getting there >> at what time horizon is that going to matter? your evaluation of what the company might be worth and what they're going to have to invest or partner

how much does that depend on exactly when this turn happens to autonomous? i can remember when netflix was a dvd company and they knew streaming was coming but there was a ten-year window when it cover happened >> yeah. our investment horizon is five-year sale i think that's sort of the right way to they've these innovative companies. we think autonomous could happen in the next five years we've seen improvements in machine learning that have happened decades sooner than we thought they would so we think that technology will surprise and i think the adoption right will be faster than most think as well because these will be really cheap we think autonomous taxis could be a tenths of the cost a taxi today. >> of the actual car >> of the price per mile the ride and that's what's going to cause consumers to want to adaopt this and that's what's ex-pangd the ride hailing market, not ride hailing on its own altonmouse will expand it. but yeah >> we will leave it there. tasha and dan, thank you very much for joining us. >> we've got another earnings alert now on ulta beauty

rahel solomon. >> eps of $3.26. the estimate had been $3.07. refunds coming in at 1.74 billion. versus the estimate of 1.75 billion. so largely in 7%. and zbiens the company raising full-year giebs. ulta having a pretty good year up 28% year to date. a couple of things they've said before is they benefitted from a.i. technology. we can see right now the stock down 3%, not exactly clear at this point but in the past they say they've benefited from a.i. technology you can test in the store literally try different brands, different colors they've also said in earnings reports that digitally native brands like kylie koz met frikz kylie jenner have done really good back to you. >> rahel solomon, thank you very much it was a match but it's been such a big winner maybe that it

needed to surprise even better >> 29 times forward estimates at the high of its range. you would have thought kylie jenner would have generated even higher revenues. james charles also the same thing. so we have the indie brands. they have the brands in general. but i think we all expected them to do better i actually used to own this stock. it's a fabulous performer. it's a great management team and tats a great concept >> why don't you anymore >> it's expensive. i took my profits. it's expensive you see how retail the market is right now. >> kylie jenner. >> she's super powerful. >> stephanie link, it's been fun having you still ahead much more reaction to uber's stronger than expected revenue and big jump in gross bookings key number we will hear from an early uber

investor as we count you down to the conference call 4:30 p.m. eastern.

consensus was for 3.77 billion. earnings coming in for the first quarter 24 cents adjusted. the street had been looking for 32 cents revenues also slightly missing at 3.71 billion consensus was for 3.77 billion total comps down 4%. they're expected to be down just more than 1% gap global very weak those comps were down 10%. analysts were looking for them to fall but only about 4%. old navy usually the standout also lower those comps down by a percent. they were expected to be up by about a percent. and the guidance the gap is giving for the full year earnings well below wall street's expectations. the guidance of 2.05 to 2.15 compared to 2.45 consensus back over to you >> cool. thanks so much for that. down some 9% in the after hours

trade. joining us to talk about retail earnings greg melich, senior managing director at evercore. perhaps you can comment on those specific gap numbers before we broaden out the discussion >> my partner on the soft line side is all over that. i would say apparel in general has had some challenges just given the competitive nature of the space. that's something to be watching going forward into the back half especially if tariffs kick in more broadly on apparel. >> i mean, how much of all of the softness and disappointment in retail has to do with tariffs? >> i think the disappointment is more about the sentiment and margins and guidance than it is about the actual sales results if you aggregate u.s. retails sales, this year we're up right around 3 1/2%. that is a deceleration from last year's 4.3 but still better than it had grown in the last five years. the consumer to us looks like in reasonably healthy shape the problem is competition and

margins. the reality is amazon is still 25% of u.s. retail dollar growth, and we don't see that going away for weaker retailers that's putting some pressure on them. >> we were talking earlier about the fact perhaps walmart's seen its gross margin bottom and fractionally improve do you think that's not the case for the broad sector at the moment >> we're still seeing everybody roll in. but i think if you look at overall the retailers, i think it's hard to see how margins really expand this year. i think walmart's a little bit special in that they've invested a lot of margin over the last several years. and they're probably starting to bear some of the fruits of reducing their e-commerce losses as they get that business to some sort of scale i think walmart sort of hit at least in the u.s. business, globally might be a little different, some stabilization in their margin >> we've got costco numbers out as well. greg, just for a moment. courtney, what's happening with costco >> for costco's numbers we have an adjusted earnings of $1.89. that does beat wall street's consensus.

they were looking for $1.82. revenue's pretty dead on here at 34.7 billion comps coming in at 5.5%. the strongest for the segmentation geographically for the comps was the u.s. the last 12 weeks those were up 7% no guidance here pretty brief and quick and dirty earnings release but so far costco shares are down just about a percent after moving up very quickly back over to you >> it's been an outperformer too. courtney, thank you. so what do you think, greg you cover this name. is it still worth buying at these levels it has outperformed the bunch. >> costco's one of our favorites. and while it has done well we think it remains a core holding in retail. the key is you've got memberships over 30 million households in the u.s. that are sticky they're coming in more frequently and they're spending more at costco and that's the holy grail in retail we think that stickiness of the membership model is what gives costco that strong ballast to

sort of weather whatever hiccups we're having out there with the consumer and frankly we don't any they're necessarily as bad as some people think >> greg, what are you looking for in the costco call what are your question marks >> the key thing for them is how they got it that number. we had 1.88, 1.89. we'll see how the marnlins play out. but remember, membership fee income for costco is about 80% we'll be watching that membership fee income is it still growing single digit watching to see renewal rates on membership is it still above 90%. that's what we're focusing on on the call and as long as they have though the metrics coming through those are amazon-like membership numbers. they're spectacular. >> greg, thanks for joining us >> thank you >> we've got breaking news on trade kayla tausche with the details kayla. >> we've learned that the white house plans to start the clock on passing the new nafta, the usmca, as soon as today. the first order of business is submitting a statement of administrative action up to congress that starts a 30-day window

after which the white house has to send the implementing bill for the usmca up to congress so that's a lot of jargon but what it essentially means is that within the next 30 days you will see that bill with the treaty or would-be treaty congress would be voting on would have to be sent up to the hill remember, the white house hopes to pass the usmca by the end of this summer. the vice president is in canada meeting with prime minister justin trudeau to discuss ratification and the path forward for this deal. canada has started its process to move forward and could ratify the deal very soon and it's very reasonable that the u.s. would communicate to canada that it plans to do the same within the next day back to you. >> what's your sense of support in congress that the president has on this, especially from the dems >> what's unclear as it is with any type of controversial legislation, whether the opposition is true opposition where if a deal were put on the

floor for a vote they would actually vote no or if democrats, which are the opposition right now, are just trying to eke out a better deal, if they're just trying to get some changes to the deal on the side because they don't see this as a done deal yet of course this hasn't been put to a vote yet, so we don't know if they're just trying to get some of those changes and see what they can squeeze out in the next few days or whether they in fact vote against it rk srtmaho, who's the vice president's chief of staff, told cnbc yesterday he actually thinks they have the votes kayla, thanks very much for that fascinating update still ahead here on "the closing bell," much more on today's after hours earnings uber's conference call set to begin any minute and we will bring you the highlights of that all of those afterhours movers are lower. much more to come.

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costco beating on top and bottom lines trading down just 1% gap missing on both. that's trading sharply down 11%. williams sonoma beatinging on eps matching revenue up a ahealthy 11 1/2% let's ge get to courtney reagan for more on williams sonoma. >> williams sonoma first quarter turning in 81 cents adjusted the street had just been looking for 69 cents that's a nice beat revenues effectively in line 1.24 billion that's what the street was expecting. when it comes to the guidance, in line, eps guidance the company is raising it by five cents and the ceo laura alber noting that is due to both what they saw in this quarter and the strength they are seeing early in the second quarter or that current quarter right now. and these comps very strong, up 3 1/2%

that's double as strong as what the street had been expecting. really impressive performance. those comps up 11.8% street had been looking for growth of 8% pottery barn also better than expected the main brand, that williams sonoma brand down 1.6% for the comps and that is slightly worse than was expected but shares of williams sonoma charging higher almost 12% right here after the bell back over to you, sara >> i wonder if they produce less product in china, courtney, because so many of those others, especially as you've noted that have been exposed in the home category have been hurt by the new higher tariffs >> they've really been relatively transparent of course without giving away sort of their trade secrets about what they're trying to do to mitigate what they're doing because of the tariffs. and ceo laura alber spoke to our jim cramer about that probably in the last month or so. they've been doing what they can. and she said look, it's impossible not to raise some prices in some areas but largely

they've been able to iron out some of those costs. so that's pretty impressive as well >> all right, courtney, thank you. dell also out with results eric chemi has the details eric >> sara, that's right. dell's stock not moving too much it's sort of a mixed report here on these dell earnings the $1.45 adjusted eps, that's better than the $1.21 that was the consensus street average estimate but as we talked about earlier, about half an hour ago, there was a wide range for these estimates. it's only the second quarter of dell being once again a public company. and this 1.45 actually beats the high end of those estimates. but the revenues were a slight miss on the average. $21.99 billion it's a little short of 22.25 billion that the average street estimate was looking for but that was well within the $1 billion range. a very wide estimate there another number to watch out for, 31.0% gross margins. the average estimate was 31.8% that was a little light. that's the dell story. back to you. >> all right, eric, thank you.

let's bring back mike santoli. final dashboard of the day saving the best for last this one's for you, sara taking a look at some currency interactions in particular in emerging markets stock this is a one-year chart of the u.s. dollar index along with the eem emerging markets etf obviously emerging market stocks a lot more volatile than the dollar index but what's interesting is the way they usually relate to one another. for example, when the dollar's up, typically it's going to coincide with emerging markets going down it's not a perfect relationship but a general tendency here. the dollar peaked for a little while. it allowed emerging markets to rise a little bit. and here again as the dollar's making new highs you did see that sell off along with all global markets what's notable is in the last two days the emerging markets etf has been up even as the dollar has stayed clipped to new relative highs too you see this little rise here as the dollar goes up why is that? sara's going to have to actually answer the question. i don't necessarily know

but i do think that it's first of all not saying the fed is getting heighter that's one thing the dollar is not saying is it not saying global financial conditions are tightening in a rapid way, not clear know there either. or it could just be chinese stimulus is being sniffed out and is coming through because the chinese stockmarket has also been a relative outperformer >> also the dollar is stronger lately against developed market currencies the euro and the pound and the yen. they've all got way bigger problems right now than the emerging markets world, which is usually the area where the problems are >> the swing factor there is as well particularlit developed markets is if we did get to a point of a fed rate cut whether or not that would mark the peak in the dollar relative to knows. clearly it's not as if we're going to get tightening in europe but in a relative sense that might start to -- >> it could also be that this is just a two-day trend we'll have to watch and see how it goes. >> it's also because it's a trade war trend and not ' -- the first conference call for uber

as a public company. just getting under way let's listen >> while i'm proud of what we've achieved with ipo i've told our team that it is ultimately just one moment in a much longer journey. we have an even greater duty to create long-term value for investors, for customers, our employees, and our many stakeholders we'll do this by making uber the platform -- by making the uber platform a one-stop shop for the movement of people and powering local commerce around the world at a massive scale over 700 cities in 63 countries. today we're pleased to report another quarter of strong growth demonstrating the continued success of our platform strategy tier 1 gross bookings grew 34% year on year on a reported basis and 41% year on year on a constant currency basis and excluding divestitures producing an annualized run rate of $59 billion our monthly active platform

consumers grew an impressive 33% to year on year to 93 mlg. however, those 93 million represent only 2% of the population in 63 countries where we operate our ride-sharing products and an even smaller percentage of the population in those countries where they use uber eats. we believe our platform model allows us to acquire, engage, and retain customers with cost as well as efficiency and effectiveness advantage over our rivals typically model line competitors. these efforts are just getting started as we penetrate into a $12 trillion total addressable market now, on to q1 '19 platform updates. in ride sharing q1 gross bookings grew 22% year on year 29% on a constant currency basis and excluding some divestitures. some ride sharing highlights part of our commitment to increasing driver engagement and

satisfaction -- >> okay. we will continue to monitor the conference call. but let's discuss the numbers in more detail first of all jeff ransdell, uber shareholder joins us as with s. gwen cheaney, who is an early tech investor thank you very much to you both for joining us what's your take on the numbers and what's the main concerns you have >> i think the numbers actually look really good their monthly active users continue to grow very rapidly. you know, i've always been a big fan of uber and lyft my big concern now is on the driver's side they've done a great job with customer acquisition on the rider side and they actually have negative churn, which means the older users, the older riders actually generate more revenue for them as you and i probably use, once we download the app we end up using it more. but the return on the driver side has been picking up it used to be a little bit annually about 50% of the drivers would still stick around now their monthly churn is 13% so if you annualize that that's about 81% of the drivers are no

longer around after a year so they really have to pick that up a little bit better >> jeff, what stands out to you in the report? >> my analyst team and i were talking about it this afternoon and we actually thought that dara and the team would come in with numbers higher than what we were expecting they did exactly what we actually thought that they were going to do. and again, for me -- i'm very bullish on uber. big leaning in on mobility as a trend from an investment perspective. we like everything we saw today. so we're very happy with what we see. we've been invested in this company from the private markets. now we're in the public markets. i think dara and the team are doing a great job of positioning the company now to face off with the scrutiny of the public market >> gwen, they're burning about a billion dollars in cash in this past quarter and the general theme from both

lyft and them is competition has eased a bit, that things are getting a little more rational does it concern you that even in that environment they're still getting through so much cash >> i think for any sort of software company, a sas company, you look at contribution margins and actual cash burn contribution margin includes all the -- on marketing and growth expenses -- sorry, it adds back all the marketing growth expenses so that if they stop growing contribution margin is actually the real margin that you would have in the business so if you just wanted to look at both and i think the other thing is similar to when we went from microsoft selling us, you know, $200 for microsoft office and then started charging us on a monthly sas basis it's useful to look at long-term customer value versus customer acquisition cost right? so the payback period usually in software is about two years and the lifetime customer value is four times that of customer acquisition cost

and uber is still staying within that so to me it's -- the business model is still profitable. >> jeff and gwen, thank you both very much for joining us >> thank you guys. have a great day >> time for a cnbc news update sue herera's got it for us hi, sue. >> i do indeed thanks, wilf here's what's happening at this hour new criminal charges have been filed against r. kelly prosecutors adding 11 felony counts against the singer including charges that carry up to a potential sentence of 30 years in prison. the alleged offense happened in january of 2010. kelly is free on $1 million bond following his sex abuse indictment in february in delaware democratic presidential candidate joe biden commenting on reports that the white house wanted the "uss john mccain" moved out of sight during president trump's visit to japan >> john mccain was a war hero, should be treated as a war hero. anything less than that is beneath anyone who doesn't treat him that way it's just -- he is a hero.

he was a friend of mine. we argued like the devil as i said in my eulogy, we loved each other and fedex plans to deliver packages seven days a week starting next january as it tries to keep up with the continuing boom in online shopping and shipping. it also takes back nearly 2 million daily deliveries to homes that are currently handled by the post office it says that move will increase the efficiency of its own network. you're up to date. that's the news update, guys i'll send it back downtown to you. >> sue, thank you very much for that still to come on "closing bell" we'll have much more on uber's s rst quarterly report aabe public company as we continue monitoring the conference call the stock just higher in after hours. don't go anywhere. we're back in a couple minutes through the at&t network, edge-to-edge intelligence gives you the power to see every corner of your growing business. from managing inventory... to detecting and preventing threats...

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not today, just in general >> welcome back. we've got another earnings alert on vm ware >> you look at the stock right now it's down but it's very thin trading so i wouldn't reach too much into that as of right now the earnings beating estimates on the top and the bottom line you're looking at $1.32 on the eps. that was beat better than the $1.28 the street was expecting revenue a slight beat as well. 2.27 billion $30 million more than that consensus estimate

the billings, the deferred revenue both of those numbers above estimates. the company even adding $1.5 billion to their stock buyback program. so for now it seems like the earnings were good but we'll find out why the market doesn't like it as of now. back to you. >> eric, thanks very much. should also point out the stock's up 40% year to date coming into this tough setup. down 3% just giving up a small amount of those year-to-date gains. >> still ahead we are weighing the china factor democratic presidential hopeful john hickenlooper joins us with his take on how the china trade war is impacting the economy [ "done melody" plays ]

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what would you like the power to do?® ♪ done welcome back president trump speaking today about tariffs and how they've been impacting the trade talks >> the tariffs are having a devastating effect on china. people are fleeing the country with their companies these companies are leaving for vietnam, other parts of asia and they're even coming to the united states. because then there's no tariff i think we're doing very well with china we'll see what happens but i can tell you, china very much wants to make a deal. >> joining us in a first on cnbc interview is former colorado governor john hickenlooper he's also a 2020 democratic presidential candidate governor, welcome. >> thanks for having me on >> what do you think about the president's approach right now with china >> well, i think that president trump's isolationist and i would argue reckless approach to foreign affairs has made us less

safe, and i think his tariffs have hurt our economy. and i know president trump and some in my own party think we should turn away from global engagement but i think the opposite is the role we should be playing, by re-engaging and re-emerging, revitalizing america's leadership, not only would we make our country safer but i think we'd make our economy stronger we'd make our country more prosperous >> that tactic, though, had it worked over the prior 20 years specifically when applied to the question of trade with china >> well, certainly i'm not going to argue that china didn't cheat on international agreements. and without question they were stealing intellectual property you can't let that go on i get that but i mean, maybe you can show me some examples of where tariff wars have ever helped either side i mean, again, i'm not a historian. but no one i've asked that question of -- >> he's bringing them to the table. >> they were at the table. they were ready to negotiate and there was a give and take.

maybe we weren't going as fast as we wanted the risk associated with a tariff war i don't think anyone's really taking into account in the same way that our policies toward iran and trying to reimplement that, you know, isolate them again, now some of our allies are finding different ways to trade so they're not using u.s. dollars as a medium for trade. >> is it not worth trying, though, given that this started a couple years ago and the economy's been pretty resilient in the face of it? if progress is made, if a deal is made in the same way that it has been with the usmca, would it not prove worthwhile long term >> well, if the success of the deal is worth the risk again, i'm somebody -- i spent 20 years as an entrepreneur, so i look at things, is your reward worth your risk. and the risk here is pretty darn high and i don't see based on nafta, what we've seen, the benefits of nafta, was that worth the risk probably not when you look at some of these electronics companies and how

they're having to rebuild their supply chains because of these tariffs, these are jobs -- supply chains that were designed to create jobs in the united states and now those jobs are probably moving away, moving out of the country forever those are consequences that we could have anticipated >> more broadly, what is the economic message returniunning t an incumbent with 6.7% unemployment. >> it's great, just because the stock market highs doesn't mean america is better and it doesn't mean americans are doing better and i think this was going on long before donald trump became president, but from 1946 to 1981 essentially every man, woman and child in this country doubled their income since 1981 50% of the people are flat at best and many have fallen backwards our economy used to -- >> what would you do to fix that >> i'd focus on small business,

and that's what i come from and i'd try to get more competition. for the last 20 years every year we've seen less new companies created in this country and part of it is that there are so many industries where just a few very large companies dominate i'm not talking about tech and i'm talking about hardware stores 80% of the hardware in the united states come from two companies and we should provide a tax break for entrepreneurs to start businesses in rural areas and other distressed areas i think we need on do training and jamie dimon says it could be 2% is we don't have workers with the skills that we need for the jobs that are open we have 7.4, 7.5 million skilled jobs are unfilled and 6.2 million people looking >> you also want to boost the minimum wage is it something that you do begrudgingly that you do the free-market thinking and you don't want to do it. >> i have to say a certain

amount of time digesting that this was something i was supporting, but you step back and look at 75 to 80% in america are having a hard time balancing the household budgets every month and i think it will require us to make pretty significant comp sagszs aensati adjustments. >> governor hickenlooper, thank you very much for joining us keep us posted. >> up next, uber ceo making comments on the freight business growth we'll have the details for you straight ahead

uber's first conference call is under way let's get to deirdre bosa. >> we heard prepared remarks

from the ceo and cfo nelson chai uber has the moon shot projects and uber freight uses a platform to connect drivers in the trucking industry. have a listen, they gave us stats related to this unit. >> uber freight continued to make rapid projects, with growth for the quarter exceeding 200% year on year more and more large and global enterprise shippers are from the vast carrier and real time pricing and more with many notable customers joining such as vcs, cisco, petco and heineken that's uber freight and the q and a session just kicked off and we will continue to get back on and listen to that. over to you. >> the stock up now 2.5% after hours. up nexont closing bell, the biggest names making moves after hours. orlando isn't just the theme park capital of the world,

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but which ones target your goals? it's not about quantity. it's about quality. no trendy stuff. i want etfs backed by research. is it built for the long-term? my reputation depends on it. flexshares etfs are designed and managed around investor objectives. so you can advise with confidence. before investing, consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully. welcome back let's check in on the headlines making news after hours. uber shares are volatile after posting a loss of $1 billion it is up 3% as the call

continues. gap shares plunging after wall street estimates on both the top and bottom line because of weak same-store sales down 1.7% and williams-sonoma thanks to strong same-store sales and that is up 11.5%. key things watching overnight, some chinese data. >> and a pmi, a big one. >> absolutely. again, what that will do to sentiment. >> and we have a lot of u.s. data tomorrow. >> inflation >> personal income and spending and michigan sentiment i think we're back in that mode where traders are craving confirmation that the u.s. macro picture is holding together relatively well because that would take one piece of worry off the table, but yes, i do think that's the case. you've had a tremendous number of gap stock openings related to chinese data and rallies and bonds. >> just low inflation could help inflation, and if we extrapolate on. >> although fed rate cut odds

have been rising and the market has been falling. >> that's true, yes. i think the stock market is catching up to where the bond market was for a long time, and that is very rue yes, we rallied from a rate cut, but for how long is the question >> do we trust if the fed will follow the market? >> mike, as always, thank you very much. >> "fast money" begins right now. fast money starts right now. live from the market overlooking new york city's times square, i'm melissa lee. your traders on the deck are dan nathan, brian kelly, karen finerman and guy adami tonight uber higher after its first earnings report since going public it has been a rocky start for the new company. gene munster, the earnings machine, will be here in a few minutes to break it down the dean of valuation is here and you will not believe where he is finding the best deals in the market he starts naming names a commodity crush. crude is now dow