body and get more u.s. students. it's a fascinating way this whole decoupling between the u.s. and china is taking place >> is rippling through and i didn't know that the chinese students pay full freight, which is one of the reasons why universities love to have them. >> it's going to be a major problem if they go away. thanks for watch "power lunch," everyone >> "closing bell" starts right now. welcome to "closing bell," everyone i'm sara eisen here at the nike post stocks are soaring today nike's one of the biggest leaders in the dow 59 minutes to go until the closing bell we're going to tell you everything you need to know as an investor into this close, including key question today, should you trust this rally? >> and i'm wilfred frost good afternoon to you. let's get to what's driving the action comments from fed chair powell and vice chair clarida indicate the fed is listening to what the market wants there are also reports that senate republicans could vote to block mexico tariffs and big tech is seeing a big rebound let's check in on the markets. not far from the session highs

440 points up to 480 at one point on the dow. and it feels more like a fed-related rally. cyclicals and software toward the top, including banks, as opposed to trade-related sectors. steven grasso from stuart frankel here for the whole hour. steve, what's your take? >> i think it's all fed. the market cares about one thing. it's fed obviously on day to day they want to be a little bit preoccupied with trade news. but ultimately, if the fed says that they're there to backstop the market by cutting rates or being soft, that's all the market cares about and that will keep the rally going >> just also point out as well, the banks almost a perfect layout for them because we're talking about rate cuts, which is good for the economy, but in fact yields net today are higher you're seeing a steepening of the curve and in general that's playing out for the banks citigroup up 4.5%. >> but you're also seeing a rebound in the trade stocks, a rebound in consumer discretionary. i guess the question is was it just oversold conditions that's leading to a bounce or has the

picture changed somewhat >> so i think it was an oversold condition that led to the bounce but as i said before i think the fed is the most important thing. but you look atting financials financials topped out in '08 and they topped out exactly where they topped out. xlf specifically where they topped out recently in the last couple months. that to me is saying that the financials are not the key that's where you should not be at this point. i think the fed is actually panicking. so we'll talk about that a little more during the show. but the fed should panic they have no real ammo here. they can't cut that far. >> they've got a lot more ammo than other central banks around the world. let's get to our reporters who are covering all of the stories for us bob pisani's here at the exchange with the biggest movers bertha coombs is at the nasdaq steve liesman has highlights from all of the fedspeak we just mentioned. kayla tausche is following the latest trade developments. and courtney reagan is covering tiffany's which has a snapshot into all of those stories. let's start with bob here at the stock exchange >> you've got o'some positive trade headlines.

powell saying he'll monitor trade, whatever that means, and the markets putting it all together with an oversold bounce and particularly in the sectors that have been beaten up the most just take a look at the dow components you can see that nike a consumer name with a big international trade-related situation. up big financial stocks, tough recently, also rallying like goldman sachs. 3m, boeing, caterpillar and the industrials all rallying what's lagging is the consumer names, mcdonald's and coke a good example not doing so much i want to shoi a big bounce in a sector that's been dramatically oversold all the metal stocks have gotten killed down 15 mers, 17%. there's u.s. steel allegheny. all the steel stocks what's not seeing a lot of movement is generally the big s&p 500 sectors. the s.p.y., the big etfs not coming to buy aggressively it's just the lack of sellers moving the market right now. but right now everybody's quite happy about that guys, back to you. >> bob, thank you. nasdaq also seeing a big pop after yesterday's steep sell-off

on regulation fears. bertha coombs track the action there. bertha >> yeah, sara, call it a big relief rally led by those big names, those fang names in particularly strongly on really strong volume. already we've seen more than twice the average early volume for facebook, having trade hands today. so that shows a bit of conviction as people jump in and as bob was talk-b we're seeing a bounce back from oversold sectors like the chip sectors. continuing its recovery. beyond tech we're also seeing some other oversold names bounce including mattel surging after announcing an international licensing agreement with sanrio featuring hello kitty and other characters >> bertha -- >> i love hello kitty. >> i thought you would >> is that kid stuff >> all right, guys >> hello kitty is huge it's huge. >> i don't know. my bad.

>> you have a lot to learn >> meantime fed chair jaypowel speaking today at an event in chicago giving an update on the fed's latest thinking. steve liesman joins us with more from chicago with the highlights and hopefully more on a topic that i actually know something about. steve? >> yes, wilf two top fed officials suggesting here in chicago that coming new tariffs if they change the economic outlook could change monetary policy. >> to date the tariffs that have been put in place on the economy have had a small effect in the aggregate, and i think the others would agree with that consensus. as we move ahead and we consider potentially more tariffs and potentially retaliation, that potentially has a more noticeable effect on the economy and we would have to take that into account >> clarida said tariffs are not necessarily inflationary because price only go up and stay that way. fed chair jerome powell also said the fed would act if it needed to. >> we do not know how or when

these issues will be resolved. we are closely monitoring the implications of these developments for the u.s. economic outlook and as always, we will act as appropriate to sustain the expansion with a strong labor market and inflation near our symmetric 2% objective >> the chance ever a fed cut in july above 60% some traders even take a flyer on a possible june rate cut. that seems early but the idea the fed is headed for at least one rate cut because of these tariffs looks like a good bet today because sara we didn't have just any top fed officials speaking here. we had the chair and the vice chair both singing from the same sort of monetary policy hymnal book >> yeah. it's an important duo. steve, thank you a growing number of republicans are signing off on president trump's mexican tariffs as the u.s. tried to make deals on trade and immigration. our kayla tausche is on capitol hill with the latest >> reporter: senate majority leader mitch mcconnell just said

a few moments ago that there are not a lot of republicans who support these tariffs on mexico. but when asked about whether he would be willing to consider a potential legal challenge he said that's still a hypothetical at this point. and after being briefed by the white house he believes that there will still be an effort to make a deal this week when mexico and the u.s. meet tomorrow we will see what that bears out. but in the meantime the number of republicans who oppose these tariffs, it really runs from the top of the party through the rank and file. you have the number two senate republican you have the senator leading the senate finance committee, which runs trade issues. then you have senators from louisiana, iowa, west virginia, utah, all across the country and then over on the house the most notable there is a close ally of the president, north carolina congressman mark meadows. when president trump was asked in london at a press conference earlier today about the likelihood of these tariffs coming into effect, the president said he's willing to put them in place but he said talks with mexico haven't even started.

so a little bit of optimism built in from the president right there. of course he was appearing outside british prime minister, outgoing prime minister theresa may, and he said, teasing, a big brexit -- post-brexit deal between the two countries. listen >> the united states is committed to a phenomenal trade deal between the u.s. and the uk there is tremendous potential in that trade deal. i say probably two and even three times of what we're doing right now. tremendous potential >> of course the condition for that trade deal, britain has to successfully leave the european union, wilfred we will see when that happens and in what form president trump said he would have sued the eu but he thinks prime minister may deserves a little credit for her approach >> i know. was gracious actually on that topic he managed to balance semi-positive comments about her potential successes without being disheartening to theresa may

but some good trade news in there as well, kayla thank you very much. >> do you know how much trade the uk has 118.2 billion was last year to the u.s. and it's growing at 74%. so already quite a big area of trade between the two. >> and they traded you to us >> they did. >> that's got to count for something. >> one pound >> on the trade deal, can they do a unilateral trade deal like that >> only if brexit happens. this is the one big area of hope it's the only country that's sort of saying loud and clear we're willing to do a free trade deal afterwards. but no one really believes the promises lots of moving parts there for sure final report to get to, retail stocks getting a nice boost today including a pop for tiffany which reported earnings before the bell. courtney reagan has the details for us back at hq. hey, court >> hey, wilf tiffany getting a blip from the retail sector and the gsh -- the

quarter and the outlook wasn't uplifting. while the jeweler beat consensus by a narrow margin, comparable sales fell 5% and that was far short of expectations and it lowered its earnings guidance going forward. so tiffany blamed negative currency drags including a strong dollar and "dramatically lower spending by tourists" in many markets around the world for the sales weakness what's interesting is chinese tourists are spending less when traveling but tiffany's mainland china sales remain strong. of course watch out, though, because that jewelry is going to be subject to this 25% import tariff and that will make tiffany jewelry more expensive than other european jewelry sellers in china back over to you >> courtney, thank you what do you do with a stock like tiffany so exposed to global trends -- >> you've got to sell it anytime it's green you have to sell it. there is a yield on, this over 2% yield but the stock sold off by 23% recently. that gobbles up whatever dividend you think you're getting.

i would not be a buyer on this for yield or dividend. too much of the crosshairs for trade. >> not a single one of their geographic regions saw year over year top line revenue growth which is not encouraging it's a high-end product but not encouraging. >> also shows how dependent they are on the fifth avenue store in terms of tourists coming in. and when that slows down -- >> it's back to what we said before this to me is a retail pop, a retail short covering. although tiffany has been doing well on a stock performance basis up until this point year to date, but it gave back a heck of a lot of profitability in the last month or so as far as the stock price is concerned meantime, as steve liesman just mentioned to us, federal reserve vice chair richard clarida appeared on cnbc this afternoon saying the fed is open to changing its policy of patience on interest rates listen >> if we get a sense that the outlook is -- growth is slower than we expect and we get the sense that underlying inflation is below where we want it to be, then as chair powell and i and others have indicated we're going to put in place

appropriate policy to achieve those goals. and whether or not that means acting pre-emptively or when the data comes in is just going to depend on the context at the time >> the tone and the message was a little different than when i spoke to him just two months ago. during that interview he was defending the fed's wait and see policy on interest rates listen >> we can afford to be patient because we're really operating very close to our goals of maximum employment and price stability. >> joining us now is julia coronado, founder of macro policy perspectives. julia, we sense a change in tone is that what you're getting from the key members of the fed >> definitely. definitely there's a change in tone and two things have changed since the clip you just played from clari dachlt. one is inflation has slipped noticeably below their target. that wasn't the case a few months ago and second, we have real tangible -- we're in a trade war. we are actually in a trade war there is risk of egs claigs of

that trade war that's a material risk that looked like we were heading in a better direction a couple of months ago i think the fed is signaling greater flexibility and that makes all the sense in the world. >> we also saw some weak euro zone inflation day to day. we saw an australian interest rate cut do those factors factor in to what the fed's thinking, global growth and dollar strength >> absolutely. the global growth picture hasn't improved even though we'd seen some better chinese data early in q1. the global manufacturing pmi, for example, dipped below 50, dipped into recessionary territory. we're seeing, as you noted, weak inflation data oil prices have dropped. so a lot of indications now that we might need a little extra support. and what the fed is signaling, which is i think important in the con tevths policy debate taking place here in chicago is when you're this close to the zero lower bound actually as

john williams said on friday you don't keep your powder dry sometimes you take out some insurance with a rate cut pre-emptively before the weakness actually washes ashore. so i think that's what we're seeing i think june would be too early. we've got the g20s at the end of june but maybe see how things go for a couple of months and they're willing to go ahead and give a little boost to the economy. >> steve, it feels like we're in this neverending loop where the market tells the fed to cut rates, the fed starts talking about rate cuts, the market applauds it. and it's just circular >> rinse and repeat. >> who's making policy, the markets or the fed >> so here's the problem i have. and i said before. they might have more bullets than the other central banks but in 1990, 2005, and 2008 the fed cut between 5 and 6 percentage points. they don't have that ammo anymore. so for me i'd love to hear julia's comments on it what do you do when they're out of ammo? do you turn to qt or stopping qt immediately? >> but julia, to that point

there is scope for quite a few rate cuts that no other developed world central banks have scope for that would add to the economy, wouldn't it? >> absolutely. first of all, when the neutral rate is lower, sought prior cycles that were cited of 5% rate cuts, that was when the neutral rate was also a lot higher so each quarter point or 50 basis point rate cut gives a lot more in terms of stimulus to the economy. and then i think the global dimension that you highlighted is important the fed is the most important central bank in the world. it is the only one with policy ammunition are you more likely to achieve your goal of a stabilization in the global economy with an early rate cut, an early small rate cut, or waiting until the weakness really gets entrenched? and i think what the fed is signaling is they're more leaning toward the former than the latter >> i mean, if their mission here is to boost inflation, julia, is it going to work if they cut

rates? >> that's a much tougher question and again, a topic of conversation here in chicago inflation has been persistently low in all developed countries the phillips curve has broken down what do we do about it so i think the fed right now in terms of thinking of its inflation goals is looking at a longer horizon than markets. the short answer is no if they cut, say, 25 basis points or 50 basis points, it's not going to drive core pce to 2 1/4 over the next 12 months. but over the cycle if they implement easier monetary policy, more risk management-driven monetary policy, they will achieve better inflation outcomes than if they don't because if you wait till the recession, the risks pile up and the recession comes and is deeper, you're going to lose a lot of ground on inflation so inflation isn't high now but it could get a lot lower in the next recession and that's the

through the cycle consideration that the fed is trying to take on here. >> julia, thanks very much for joining us >> my pleasure >> as for what's driving the market today, i did speak to the head of u.s. cash equities trading at one of the u.s. investment banks just before the show started and they said it was fed driven, felt like a short squeeze and with the relatively low volumes the takeaway was be wary of this rally and we might see it turn around again once that sort of fed -- >> can you trust it? >> exactly and the low volume's a good point as well. it was more resounding conviction, we might have seen more conviction, exactly and the volumes. still to come, we'll have much more on this big rally on wall street we'll break down the stocks and sectors driving the action into the close and discuss whether the rally can last >> and later, former ford ceo mark fields joins us to discuss the trade war impact on autos. the one thing he says uber needs to do to grow its business as well "closing bell" will be right back dow's up 452 points with 43 minutes till the close moving is hard.

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[ sigh ] introducing an easier way to move with xfinity. it's just another way we're working to make your life simple, easy, awesome. go to xfinity.com/moving to get started. welcome back 40 minutes to go before the close. big rally in stocks today. best day tore stocks actually since early january. here's where we stand right now. dow's up 450 points. the s&p 500 is up a whopping 1.87%. the nasdaq doing better than 2%. of course it got hit the hardest in the tech wreck yesterday. it is technology that is on top today, driving the action. consumer discretionary, though, financials, industrials, materials all having strong days only weak spots are in real estate and utilities which have been the defensive plays that did well over the sell-off over the last two weeks >> markets up 2%, the new a.i.

bull never looked so good. >> it is a reason to use the charging bull. >> it is indeed. also a reason to get over to mike santoli for the market dashboard. >> what have you you got for us? >> not a.i maybe a little i but it's not artificial. here's what we have today. what we're saying is a lot of swings in the market i'll take a look at how the fear and greed is playing out in the charts junk being a fixation also of this will the little market phase seeing a high yield doing with its jumps and jukes breadth really important on a rally day to see how that's holding up then a certain curve a lot of people have been focused on for a while. that's in the next hour. first of all the s&p 500 i like an 18-month look because it captures at least three significant peaks and the rally attempts this is also with the it 00-day average in purple. what have we done? we've rallied very sharply and strongly but only back up to this level here of the 200-day average and about to where we were a week ago or so. tuesday, wednesday last week we

were trading at these levels we broke from 2800 right there and of course all the times we made these rallies up to 2800 or thereabouts. so you're looking at these jagged recovery attempts after big sell-offs. this is a smaller sell-off so maybe we don't have to have such a complex process here but i think it's important to bear in mind that's what's going on we're recovering back to this it 00-day trend line and trying to see if we can build upon that but keep in mind you have a lot of these quiksilver springload moves when you have a highly stressed market like we've had right now. so far so good but not proven at all yet, guys. >> not just plenty of i but a wordsmith there with some of those titles for the upcoming dashboards >> i complimented him yesterday and then he went crazy today >> we like it, mike. thanks very much steven, key levels you're watching on the s&p. >> you have to watch the 200-day moving average and the s&p cash which is 2775 but the market bounced right where it should have bounced, 2722 is a retracement area

definitely the 200 day is the one you have to focus on right now. >> the level on the 10-year really has corresponded with the bounce in yields. >> i don't have a specific level i -- i'm worried about the inversion. if fed does not start to cut now they're really backing themselves into a corner i don't think they should be cutting. but i think that would rally the market, number one and number two, i think they're going to have to do something sooner rather than later or else the inversion of the yield curve is going to be a real problem for the overall market >> after the break 19 wall street firms initiating coverage of uber today and there's an overwhelming consensus about what to do with this stock we'll dig into the calls next. >> and later facebook seeing a bit of a comeback today. but renewed regulatory fears have sent the stock plunging over the past week we'll take a closer look at what an antitrust battle could mean for the company. we're back in a couple of minutes.

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dow's up 464 19 wall street firms initiating coverage on uber today citigroup were the outliers with

neutral ratings on the stock all the others have buy ratings. some of those analysts sounding off on their calls today on cnbc listen >> we think its rides and eat business are ready to grow >> this company is in the top of the first inning at we think transforming how people consume transportation >> uber in particular has a lot to prove before they can command a premium. >> meanwhile, citigroup initiating a buy on uber's rival lyft the firm says it's sitting in the early innings of a transition and citi also likes the company's concentrated focus in the u.s. and canada and also with rides >> loop capital upgrading netflix to buy raising its price target to $425 a share the firm continues to think netflix "has built an unstoppable lead in subscription video streaming and the margin opportunity is also expanding. >> loop also initiating coverage on twitter with a buy rating and

a $55 price target monetization catch-up still has legs and engagements continues to grow. i want to ask steven about twitter. but uber, when the stock is still trading below itsible ipo price it would be almost unheard of to have the underwriters come out with a sell because they just pushed the stock price higher than that already >> still they were kind of bullish notes. lots of talk about transformational opportunities and a runway for growth to the moon >> i agree i totally agree. and it's the same with the ones that have already come out with that very powerful sets of headlines and bullet points. but the price targets all in the 50s and 60s and looking at an average 20% up side. >> right it's amazing how you start to hear the stock had to stabilize to a certain point before anyone wants to actually put their name on it. >> i was going to say exactly what sara said, for that i'd want to see 100% up side these price targets, these transformational headlines and content in their words, but they're based on price multiples in the 2020s, 2022s, but 20% >> it's not a disparaging

comment when i say, this but you have to have an opinion on something but you also want to keep it in a legitimate sense where if somebody came out right now and said there's 100% upside, we thought it was going to be a tremendous success, they thought it was going to be a tremendous success, it didn't pan out the proper way, it has a lot of different business segments, i can make it a double from here but no one's going to tell you that. >> just quickly on twitter you've been -- >> i've been in and out of twitter. i'm currently out of it. i still think there's a bullseye on all these social media stocks i'd rather be a buyer of netflix. >> on twitter, though? they're not under antitrust -- >> not antitrust but when you start to examine who the users are, who the followers are, where's the real push, are they pushing certain material to a certain -- >> public scrutiny >> exactly i think that's going to be the headwind for them. although it's done relatively well in the last couple months >> time for a cnbc news update with sue herera. hi, sue. >> hello wilf. hello, everyone. here's what's happening at this hour the trump administration ending the most popular form of u.s. travel to cuba, banning cruise

ships and educational travel, in an attempt to cut off the cash to the island's communist government cruise travel began in may 2016 during the obama administration. that ban goes into effect tomorrow peru's president for the first time attending a display of 5.3 tons of cocaine seized on the pacific coast. the seizures were made with the assistance of anti-narcotic agencies from various countries including the u.s. the pharmacy chain cvs announcing it will open 1,500 health hub stores by the end of 2021 they are drugstores that are remodeled to expand health offerings such as a clinic, a lab for blood testing and health screenings and ucla softball player stevie wiz is putting off heart surgery until after the season her team is one way away from winning the college championship she told her dad she's not missing school and she's not missing the softball season. and her surgery will just have

to wait. this will be her third open heart surgery. she was diagnosed with aortic stenosis as a baby good luck to them. and to her that is the news update at this hour look at her. she's so cute. i'll send it back downtown to you guys >> all right, sue, thank you >> we've got just under 30 minutes to go here at the nyse into the close, up 455 on the dow. near session highs here are the three things moving the action comments from chairman powell and vice chair clarida indicate the market is leaning to what the market wants, leaning toward a potential cut. there are reports senate republicans could move to block the mexico tariffs and big tech seeing a big rebound after yesterday's beatdown on some of the antitrust concerns >> but not recovering all of those losses that's for sure. up next, can acord's attorney dwyer tells us whether investors can trust the current rally. >> sales forgs higher today but it's been a rough few days for

the cloud names. we'll get an update. earnings after the bell. all over that. >> here's a look at today's dow leaders. we'll break down all the movers as we head into the close. of course stay with us on "closing bell. sara's nike tops -- oh, no, it's in the top it is top. >> i staed at rtthe post >> i was listening to that headline we're back in a couple minutes

stocks having their best day since january. let's go back to mike santoli. second dashboard with under 30 minutes into the close mike >> high-yield debt actually having a very good day as well they often of course move along with equities if you look at the pattern in junk bonds, actually a very weak stretch coming into today. the hygt etf compared to the ief which is a mid-maturity treasury etf. this approximates the risk spreads in high-yield debt what you'll see here in white is a lot of outperformance for high yield throughout much of this year until recently came down here and you saw treasuries start to outperform it's still obviously holding up okay today that's a pretty big move this is a year-to-date move. almost a 1% gain in the high-yield etf it often has more exaggerated moves than the underlying bonds

but still pretty impressive. however, look at a one-year basis the same relationship and there's still a lot of room for high yield to improve before you can say that risk on is back treasuries vastly outperforming junk and this move just today is a slight little wiggle at the end of that tail we never got to the strong levels of last year when you were basically very, very firm in terms of those risk spreads something to watch in terms of the underlying fundamentals as we see this equity bounce unfold today, guys. >> mike, thank you very much for that we've got the dow up 455 points. pretty near the session highs. around 2% for all of the indices. can the rally, though, be trusted? tony dwyer from cannacord joins us on the phone to answer that question what's driving the moves today, tony >> you know, wilfred, it's really interesting so many of us came on tv and said that if the fed cut rates it would scare the market because it would mean they know something. the bond market already knows

something. you know, when the markets have -- the fed has called zero. the bond market has already reflected what the fed is going to do, which is a stimulative effect but today is just basically answering that question. the market has commanded a fed rate cut and when you've got a little bit of flexibility out of powell today, fed chair powell, it's obviously reacting into an oversold condition as well >> but tony, given as you say what the bond market seems to have already priced in, does the equity market now in fact require a rate cut to stay where it is as opposed to seeing a big jump if and when one is delivered? >> i think so. my fundamental story and the reason for our bullishness, since the end of last year, is you have slower economic growth. it's slow enough to cause the fed to -- very similar to 1995, slow enough to cause the fed to actually fear inflation's going to go down and actually cut to

prevent an inversion of the yield curve on the 2-10 yield curve. i do think you're going to need a cut because the fundamentals data warrants it and i think it's what the most important point is the viewers realize this bull story is not about an accelerated growth path in the first half of this year. it was a weak enough growth to make the fed -- they made a communication mistake and a policy mistake at the end of last year. they fixed the communication mistake with a dovish pivot. that created that breadth trust earlier in the year. now they have to fix the policy mistakes it's not like this economic armageddon's coming. it's just they need to fix the error they made last year. >> what about tech stocks, tony? they're on top today they were on bottom yesterday. serious concerns about prolonged antitrust investigations for the leading group in this market for the almost entirety of the bull market. what do you do with those stocks and can you trust a rally if they're going to face political and regulatory pressure?

>> that's a fantastic question because as you guys know my whole thing is about the 1995 analog where the fed went from nearly inverting the curve in 1994 to actually going from last rate hike february 1st of '95 to cutting rates in early july 6th of 1995. very quick shift there the same thing is happening this year tech led into that rate cut. after that, after the rate cut july 6th of '95, tech underperformed hugely. hugely semiconductors in the second half of 1995 were down 40% 40%. the market still went up 15 more percent. that was one of the best years in the history of the s&p, was 1995 -- >> so you don't need them. is that what you're saying >> that's basically what i'm saying the semis were under pressure then but tech can pause here and have a little bit of a pullback and other groups can take the lead >> tony, it's steve grasso thanks for taking my question.

long-time fan, first-time caller, tony question for you can the fed buy themselves some time if they just stop qt right now and then they can push off to wilf's first question, they can push off that rate cut because i think the market would scream to new highs if qt ended tomorrow >> honestly, steve, that may make the sentiment of the market tick higher. i think it's all about the fed i don't think qt, as we've debated before, i don't think qt, and i can't find a banker that's told me that qt has affected the liquidity in the market it's more about the fear of liquidity that it brings in. so the announcement might help ultimately, what you need is to incent banks to lend banks have too much money on reserve at the fed that's@fed is trying to raise the interest rate on reserves at the fed. because they want money to go back into the system and not just collect the interest rate so there's excess reserves there. so the liquidity isn't the issue. maybe the fear of it is.

it really comes down to what incents banks to lend more, is a steeper 2-10 curve the fed cuts rates and the shadow banks like the 2-10 curve, and the fed cuts rates, that will probably as it is today drive the longer end higher, which incents banks and shadow banks to lend more money. >> tony, thanks for joining us >> thank you have a great day, guys >> up next, we'll be coming back with your last chance trade. 18 minutes left of today's session. >> later, former ford ceo mark fields joins us here at post 9 ills us the one thing uber must don his opinion to succeed "closing bell" will be right back other 150 years. ♪ other 150 years. to inspire confidence through style. ♪ i'm working to make connections of a different kind. ♪ i'm working for beauty that begins with nature. ♪ to treat every car like i treat mine. ♪ at adp we're designing a better way to work, so you can achieve what you're working for.

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puppalright, alright. ion. what's going on? my owner got a new puppy. my name is tiny. nobody cares. 15 minutes till the closing bell time to get your last chance trade, steve what's did going to be for you >> it's going to be match.com. if you think about this, i've commented on this set a number of times on match. back when we thought facebook was going to put them out of business that didn't happen. the stock rallied. back when we thought they were going to have their own issues that didn't happen when you see trade issues take a chunk out of the stock price that's where you have to say what do they have to do with anything with trade? so i think this is a bargain basement price even up 59%. i think you're going to get a

chance to buy something that has the ability to move, considerably higher from here. >> switching focus quickly, steven, will salesforce earnings move the market tonight? >> i think everyone's looking for that whole segment of the market for a lead. and you have to really say to yourself what am i buying? am i buying growth that has been the epicenter for growth in the market especially in the subsector of tech and then you get these types of names. it's going to be imperative they move the market to the up side because if not you can see this whole segment of the marketplace run into a headwind tomorrow >> also it's such a good snapshot of whether businesses are spending enterprise spending. it has slowed down if you look at some of the other names like box which is down 10% today. >> i agree and for me it's always about the fed. as long as the fed keeps talking up the markets the market continues o'move higher. >> steve grasso, thanks for joining us today >> thanks, guys. we have under 15 minutes before the bell. here's where we stand in the markets. we are looking at the dow up about 460 points not too far from session highs which were up about 473 or so.

very strong in terms of the sector performance in the s&p. everybody's up except for real estate and utilities information technology in the lead up next we're going to get a preview of those salesforce numbers. also game stop reporting after the bell we'll tell you one thing to watch in each. plus wllra te' tdehe close with a top trader if td ameritrade don't go anywhere. don't get mad. get e*trade, dawg. - anncr: as you grow older, -your brain naturally begins to change which may cause trouble with recall. - learning from him is great... when i can keep up! - anncr: thankfully, prevagen helps your brain and improves memory.

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and see the secret life of pets 2 in theaters. welcome back despite the big rally on wall street today some companies are down significantly from when president trump tweeted about tariffs last month on sunday may 5/16 trump tweeted the u.s. would be increasing tariffs on $200 billion worth of chinese goods to 25% from 10%. since that tweet shares of mylan have dropped 36% since the market closed on may 3rd pvh down 28% gap fell 27% and wynn resorts fell 25%. on the flip side shares of aig are up 14% since that tweet. newmont gold khor, cody and target all up 20%. the broad market's down about 5% international equities down a little bit more, particularly in asia i'd also point out oils down some 11 1/2% since those tweets. >> sensitive groups like auto sector, auto parts, semiconductors that get caught in the crosshairs that are also

sharply lower since the president ramped up the rhetoric meanwhile, after the bell big earnings coming your way josh lipton monitoring salesforce courtney reagan watching gamestop josh, kick it off. what do we expect? >> so sara, here's what to watch for crm. eps of 61 cents on revenue of $3.68 billion that would represent a gain of 15% on the top. red busch's steve koeg koenig says to watch deferred revenue, too meaning business closed and invoiced but not yet recognized. he's looking for an 18% pop to 7.3 billion. crm's stock has suffered five straight weeks of declines that's the longest losing streak now the since april 2014 koenig says the stock has become somewhat controversial in his words every over the last 90 days over the middling q1 revenue guide he says. back to you guys >> josh, thanks very much for that let's get to courtney reagan fire preview of gamestop's results. >> hi, wilf. it's been a rough go for gamestop, shares down 46% in a year lost a third of their value since the last earnings report

massive short interest in this stock too. investors antsy to hear about progress on the new ceo's turnaround plan and how gamestop will drive profit during a new gaming console lull. but expectations going into the print are low. analysts looking for a 3-cent loss 107% earnings drop year over year on revenues of 6.37 billion. that's down 15% over last year wall street expecting comparable sales will fall around 7%. sara >> all right, courtney, thank you. up next we're back with the closing ountdown by the way, a little bit of buying action going into the close. back at session highs for the dow and s&p. still looking at our best day for stocks since january 4th we'll be rhtig back. we've got all the angles covered in the close with the a-team ♪

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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. we have just under five minutes left of the trading session. time for the closing countdown let's break down today's action. kevin hincks from td ameritrade is here to trade the close mike santoli back with the market dashboard bertha coombs at the nasdaq. bob pisani on the floor of the nyse kevin hincks at td ameritrade. what's driving today's bounce and will it last >> well, so many things are driving today. you had good news out of china and you had some interest rate news, right?

i think the fed went full dove here, and i think the market really fed off that today. >> you're watching salesforce after the bell it's been a while since that stock has been under record high how important psychologically are these numbers going to be? >> well, you know, mark benioff's going to put a positive spin on it. the street is looking for 61 cents as the previous guest said but i think the whisper number is closer to 64 cents. the implied volatility on the options looking for just over a 5% move here >> what about gamestop which also reports >> gamestop's a little different. option implied volatility looking for about a 10 1/2% move is this new management team turning this company around or are we looking at a long good-bye here by gamestop? >> kevin hincks, thanks for joining us now let's send it back over to mike santoli third dashboard of the session, mike >> yes, sar arks important to look at the breadth of a move like today obviously you have a rong rally here maybe the s&p's going to retake 2800 above that right now look at the advancing and

declining volume on the new york stock exchange and the nasdaq. a lot of traders look for a 90% day. that is, 90% of the volume to the up side on a strong day and of course 90% to the down -- on a down day this is about -- we've been learning about 85%, 86% up volume versus down volume. that's pretty strong a lot of traders say if you get two straight 80% days it might signify you've got a real good low that you can rely on for a little while further that's something to keep in mind maybe it can be nudged above 9 0% by the close. take a look at the vix too on a one-year basis pretty good compression to vix today down around the 17 mark. that's confirming the move that's basically saying okay the kind of risk off atmosphere is maybe abating a little bit but still it's above the range we were at. so that's going to be a process of having this volatility drain out of the market. might not be too possible to get it too low before the g20 meeting late this month. let's get to the nasdaq for a closer look at that comeback with bertha. >> the comeback here in the nasdaq now positive for the

week just barely wiping out all of its losses a big reason why is apple. apple today really leading the gains in terms of the point impact and for the week. but you've still got the rebound in the fang names. not quite wiping out the losses that we saw yesterday. those regulatory concerns are still going to be paramount. what's interesting is that the small cap stocks are really doing well in terms of tech. coupa software which does business spending management, really hitting it out of the park in its earnings and surging today. that stock up more than 100% over the last 12 months. bob, over to you >> important thing here is it's not surprising the sectors that have been most oversold on trade worries, so transportation stocks, semiconductors, retail, metals and mining all of them seeing a nice bounce today. a lot of the damage, though, has already been done. big transportation stocks are down double digits this quarter on concerns of slower global growth so after seven weeks of declines we have a modest meltup today. volume, though, not very strong but we had a combination of

positive comments from china's commerce industry. the trade dispute to be resolved with talks some hopes we're resolving the mexican tariffs. even the republicans were considering a vote to block president trump's tariffs on mexico and most importantly fed chair powell saying the fed is closely monitoring trade and will act as appropriate to sustain the expansion. all this is helping to deflate some of the huge negative sentiment that has built up in the last few weeks you see here we are ending right near the highs for the day, up over 500 points. couple things missing, the most important thing to me is the volume here. even the big etfs, the s&p 500, like the spider or the iwm, which is the russell 2000 etf, really isn't getting big volume today. that signifies to me a sort of lack of investor buying interest here and a little bit of selling pressure from the sellers but not an awful lot i think a lot of people are going to feel we need a few days of this strung together to really get some kind of

indication that the market's at some bottom. the real problem is nobody particulars believes, that given we're largely at the whim of another tweet on the trade wars. here's the closing bell. let's go over to wilf and sara strong close strong day overall welcome back to "closing bell. i'm sara eisen >> and i'm wilfred frost along with mike santoli, senior cnbc markets commentator sara, let's just pause and reflect on this 500-point gain >> really shot up there into the close. >> added about 40 points in that final two or three minutes 511 to be precise. up 2.06% and over 2% of gains for the s&p also the nasdaq led the charge up 2.6% the russell also up 2.6% 10 out of 11 sectors in the s&p

higher technology led the charge up over 3%, sara. >> what stood out to me today? look, there was no shortage of green. most sectors were higher most industries were higher. i looked at the semiconductors that's the first place i go. we saw a 4% surge in this group. this has really been at the center of the trade storm. so a nice comeback every single one of those semi stocks was higher in that group. amd, lam research, sky lynx. but keep in mind as a group it's still off 18% from recent highs. many of them are still in correction or bear market territory. the concerns about trade really -- >> i see your semis is 3% rise and i'll raising with -- citi's up 5.2%. banks usually might go to -- talk of a rate cut, which is actually helping banks at the moment and the net move in the longer end was higher and that's really

helped the bank stocks, primed for this sort of bounce. >> a lost standouts today. joining us to talk about the market jim la camp senior vp of wealth management and senior portfolio manager at ubs liz young is back director of market strategist at bny mellon investment management. and our own mike santoli as usual. what were you watching in terms of the big comeback, which got a nice little second wind into the close? >> in part the fact that it built upon itself throughout the day. it was no surprise you were going to get a little bit of a reflex bounce in the morning i think if you want to put it in some context we basically recovered about a week's worth of selling so the market tentatively making the case that the last several days maybe were a slight overshoot to the down side sentiment got really extreme technicals got very oversold we all knew those were the preconditions. and i do think a couple of glimmers on the fed front of what the market was looking for as well as this groundswell suggesting these mexico tariffs might not happen or might not

last long. as a matter of fact, 9 market was trying to make its peace with the china stalemate at the time we got the mexico move on friday it makes sense to me we're back to 2800. now we have to see if that's anything more than just one of these technical bounces. >> has this market already priced in a rate cut >> i think the bond market certainly has to the extent you can infer what the short yields are looking like i don't think the equity market is necessarily at that moment where it says from this level we have a rate cut priced in. i do think they're moving in that direction i still have a feeling -- if you looked at powell's words today -- >> he didn't use the word -- >> exactly he didn't really give that much. except to say we're kind of conscious of what the market's doing. >> his colleagues' tone moving in that direction pretty clearly. >> i agree with you. >> what would have to happen with the data and the markets for them to be moved fully in the drevgs a rate cut? that's what you have to ask. >> liz

>> first of all, 500 points a lot. the market wants it to look sustainable. and i don't know that a 500-point rally is really sustainable. what i would call this right now is the market is impressionable. and we can be taken down very easily we can be taken back up very easily and there was undoubtedly some positive nooid news today. conversations about trade being able to be figured out with canada -- i'm sorry, with mexico and with china but the statements, again, to harp on this point, the statements by the fed never mentioned a cut. never promised a cut yet the market interpreted it that way and when we look at fed funds' futures they can swing pretty big and pretty quickly and that's really what's happened over the last few months >> jim, a technical bounce today or a fundamental bounce? >> it's a technical bounce and some fundamentals helps. there's no meat behind these helps. what we have is maybe an olive branch out of china and maybe one out of mexico. or an avocado leaf if you want

to call it that. but the reality is we're bouncing off support level after being really oversold and there's very likely a huge element of short covering in here as well beyond, that let's look at the warning signs, and they're all adding up. you've got really coughing canaries in the coalmine that have added up in a big way the yield curve is inverted. it needs to invert for a lot longer to be serious i get that high-yield spreads have widened. that's an issue. you've got exports and imports that are both down multiyear levels you've got global markets all trading below their moving -- their 200-day moving averages. so all we have today is a technical bounce off support on some hope but no real meat out of either the fed or on trade. but i'm not too negative here. >> you sound like it >> interest rates -- i know. the yield on the s&p 500 is barely -- it's right in line with the yield on the 10-year treasury that's pretty constructive for stocks secondly, we did get to an

extreme level on the bearishness front from the sentiment standpoint thirdly, the economy, although it's slowing down a little bit, with rates as low as they are i expect a very quick recovery so i think the market is going to be okay i just don't think we're out of the weeds yet. i think we're going to be bouncing around for quite a while at least through the summer with maybe a rally later on in the year as trade fears start to subside >> so liz, are you in the camp that -- i know you've been cautious and i know you're not buying into today's rally. but what do you do with defensive groups utilities actually closed higher real estate only grew o'close lower. but also now the best performer this year. >> i know this isn't the most interesting call but the contrarian call right now is to really not do anything and you don't want to chase a market up and you don't want to chase a market down. there was some rotation earlier in the year into defensives and we started to see this pullback due to trade but then when you saw some of the rallies they were the ones that didn't work out either.

you don't really want to be on either end of the barbell too much but i do think it's important to stay invested and it's really easy during times like this to come out of the market and just wait around. what's really difficult is to get back in. so you want to stay in it but i think it's important to avoid the place that's are going to continue to be in the headlines. so semis are going to continue to be in the headlines goods producers, retail. >> even though they'd been beaten down so hard? >> even though they'd been beaten down. doesn't mean they can't continue to be beaten down. and they are beaten down because of this trade piece that we obviously have not figured out yet. >> mike, of course we talk a lot about trade as being an important factor but software-related names was a bit of a bounce from yesterday and banks not typically directly linked to trade. was this a trade day or not so much >> trade is right there in the background it's not far away from everything that's going on because it's caught up in the whole slowdown story but as the market gets, you know, a few weeks into this selling phase it kind of brings new groups in. i think the shakeout in big tech

and software as lairdship group, that's actually seen as constructive i don't think you want to have this sense out there there are safe places to hide if you really want to have a flush and a little bit of a low. so i do think the shakeout we got in the last few days is probably a good thing. i don't know if it means we're going to have more of a rotation into value when it comes to banks, they're just sitting there being cheap all the time whatever's going on, if the market's in a mood to kind of buy cheap stuff, they're there for you. >> jim-s that an area where you would be focusing? i know you're constructive would you buy the banks? >> look, bank stocks have been giving us more head fakes than hakeem olajuwon over the last ten years. they rally, they come back in. they rally, they come back in. and it's hard to get too excited. secondly, if you look at where we are in the credit cycle, the notion these banks are going to really expand credit from here is really specious if you ask me what i would rather do during the market sell-off during this

market volatility, this summertime trend that's typically more volatile, is accumulate some of the names that get trashed that had been strong let's look at the software areas that michael -- and i completely agree with what michael said about software these names are finally getting shaken out and they're going to present opportunity. if you look at their earnings they've been pretty solid and they're not as in the crosshairs from a regulatory standpoint as maybe an amazon or an alphabet google would be. i think they're immune to that kind of scrutiny at the moment i think you can find growth there and i think you can find opportunity if you're patient. too many investors in markets like these want to do something. they either want to sell or they want to buy or they want to take action and a lot of times you have to be a lot more patient and let the game come to you we're somewhat invested. we have some cash. and i like nibbling at names that have been strong, that have

good earnings, that haven't done anything wrong, that just kept thrown out as babies with the bathwater. >> we have salesforce earnings out. josh lipton has them for us. hey, josh. >> well, salesforce reporting eps of 93 cents. that's versus expectations of 61 cents. revenue comes in at 3.74 billion. that is a beat the street was looking for 3.86 billion. q2 revenue guidance, 3.94 to 3.95 billion the street was at 3.94 billion they also raised their 2020 eps guidance here. 288 to 290 in a press release here mark benioff, chairman, co-ceo of the company, knowing they delivered record revenue in q1, operating cash flow almost $2 billion. he says is up more than 30% year over year. he says we're well positioned for long-term growth as the world's number one crm conference call kicks off soon and we'll be on it guys, back to you. >> tremendous demand we're seeing from customers according to keith block, the other

co-ceo josh lipton, thank you very much this will do it. this was a beat. >> this will at least get salesforce back up into that range. 10% off its highs. chopping around for a long time before that. i think lost a little bit of momentum on the stock side but yes, right now affirming guidance or even lifting revenue guidance down the road is probably enough to have the stock come back a little bit >> that stock's up 3.5% in after hours trading. don't miss jim krfrm's exclusive interview with the salesforce chairman and co-ceo mark benioff tonight 6:00 p.m. eastern time >> it's rarely been so cheap at 50 times -- >> my question now -- >> which is true >> -- is salesforce, is it an outlier in the industry in terms of scooping up all the demand on enterprise spending when there is a broader slowdown when you look at some of the other names? box -- >> i don't know exactly which verticals are working and which ones aren't. i think that yes, this is more of a targeted buy in lots of

respects a lot of the products here as opposed to general cloud services you know, just kind of buying subscriptions to off-load to the cloud. not enough of an expert to know. but clearly crm for a long time has grown faster than the industry and that's continuing >> liz, final question, software names, big selling yesterday would you be buying them today >> i don't know that i would react just to one earnings release but i do think in tech, if you're looking at the sector as a whole, within tech we're not super bullish on it while the trade piece is overhanging but there are selective opportunities. i'd ab way from the really high beta names but i think software is a nice opportunity in the meantime >> liz young and jim la camp, thank you both for joining us. we've got another earnings alert. this one on gamestop courtney reagan with the numbers. courtney >> for the first quarter gamestop reporting earnings per share of 7 cents adjusted. the street had been looking for a loss of 3 cents. so that's better than estimates.

revenues, however, missing 1.55 billion the street had been looking for more than 1.6 billion. comp store sales down 10.3%. analysts had been looking for those to fall but fall 7%. gamestop is also eliminating its dividend it has a new ceo it's working on a turnaround plan they want to use that money instead to invest in the business and they did give us an outlook for sales at least to fall 5% to 10%. but that's better than the street had been forecasting a drop of about 13%. shares bouncing around after hours but right now we're lower by about 8% for gamestop back to you, wilf. >> courtney, thanks so much for that mike, down -- sorry. 8.9% take on it >> look -- >> trading five times next year's earnings. >> yes but look at 10% comps going down, that takes care of your free cash flow yield that's the thing it looks like it's cheap based on trailing earnings this dividend cut is the most widely expected thing in the world if you look at the yield

it was trading at close to 20% clearly the market is pricing gamestop for very long-term terminal decline less than an $800 million market value. not to say that's awl always going to be the way it is and they can't have a little best a comeback but not necessarily encouraging. >> down 40% year to date even before today's 7% slide. up next, former ford ceo mark fields tells us which automaker faces the biggest risks from president trump's tariff threats against mexico and h ty llowhewi impact the entire industry don't go anywhere. we'll be back in a couple minutes on "closing bell." moving is hard.

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it's just another way we're working to make your life simple, easy, awesome. go to xfinity.com/moving to get started. welcome back the bulls running wild on wall street today with the major averages having one of their best days of the year as you can see up over 2% for the all the major indices. bob pisani has been in the middle of the action on the floor of the stock exchange. bertha coombs has been at the nasdaq bob, let's get a review with you first of all >> this was a rally on hope but not a lot of facts hope on trade. positive comments from china's commerce ministry. the trade dispute should resolve talks. even the republicans were

considering a vote to block president trump's tariffs on mexico powell said the fed will act to sustain expansion. all this helping to avoid the negative sentiment that's built up in the last few weeks most oversold on trade worries that's a the ones that rallied transport semiconductor retails metals and mining all bouncing today a lot of damage already been done look at those transport stocks down double digits in the last month on those slower global growth concerns guys, back to you. >> bob, thanks nasdaq posting the biggest gain of the major averages today. bertha coombs has the details. >> the strength in the se semi names in particular helping to lift the nasdaq back out of correction territory but we saw a broad rally overall. one of the things that's of note is that the fang names all but netflix are still down on the week as the communication dings and regulatory fears continue to be laggards in terms of this rebound. but take a look at the chips in terms of what they've done this week you've seen nxpi, micron,

nvidia, all of them have done four straight weeks and they are up for the week for the first time if we continue that we could see the chips break that logs streak back to you. >> bertha, thank you very much for that companies set to take a hit if president trump follows through on tariffs monday. mark fields, former ford ceo and now senior advise yore to epg capital. thanks for joining us. >> great to be ack >> how shocked would ceos have been when they saut the announcement when they thought the usmca was done >> well, these days volatility is the norm. but i have to tell you, ever since the china tariffs took place a lot of oems and a lot of the supply base is moving towards places like mexico so when you get a tweet like that think if you're a ceo coming to his board or her board next week to make an investment, are you going to put the investment on hold, go forward with it?

it's a big shock because it's a big financial impact to the autos and the auto suppliers >> how about all the investments the auto sector has already made in mexico? we've seen the stats intracompany trade most exposed sector. what would you be doing if you were at ford right now still >> first off the first question is does this threaten the u.s.m.c.a, or nafta 2.0? because that's what you've been making all those investments on, based on the assumption that that is going to move forward. if those cases you'd have to assume it is still going to move forward. but in the near term you can take a financial hit just look at the numbers 15% of the industry last year here in the u.s., over 17 million cars, were imported from mexico and it varies by oem a manufacturer like gm would take a big hit because 40% of their silverados, which they make a lost money on, are imported from mexico so you have to start very quickly doing the financial

calculations in the different scenarios on the impacts on your bottom line for this year but also for your investment plans going forward. >> toyota made the announcement today to its dealers about the prices -- price implications because everyone has been encouraged to view north america as a single production block right? you can't unwind that. does that mean it's almost a foregone conclusion that there's going to be enough resistance to this that it's not going to be in place a while >> well, with this administration there is no foregone conclusions what you have to do in that case there's one or two choices you either eat the increased costs, which is bad because it hurts your bottom line and your margins in an industry that's starting to trailoff or you pass the price on to consumers, which is going to push off marginal buyers and could exacerbate the market going down as we've seen over the balance of the year. >> i want to ask you about the rumored fiat renault tie-up. do you think that will go ahead

and do you think it will be a successful deal if it does >> they're making a successful case and working with the governments in italy and france to make sure of that it's interesting this is within where in these kinds of instances you want one plus one to equal three. and you could argue is this going to actually equal two? and the reason for that is there's advantages on both sides. renault gets access to the u.s. market they have a line-up of crossovers and suvs. it avoids them spending billions of dollars over many years of building up their distribution it allows them to dilute the french government and potentially the super voting rights on the fca side bottom line is they're getting electrified products and it will allow them to avoid paying tesla by their numbers about $2 billion for emissions credits in europe. and it also satisfies the anielis family of goals of diluting their ownership and they get a dividend along the way which is pretty good but the bottom line is in these

kind of mergers you need a very strong leader who's going to see a lot of this through. you saw that with renault nissan with carlos ghosn. and you have the ultimate respect for jean dominique sanard who according to the rumors is going to be the new ceo. but he's done a great job running michelin for many years. he's 66 years old. and that's young these days. but you really need a strong personality that will drive consensus and drive toward the goals. and that's a big question mark >> do you think uber's a good investment here? >> well, the market is giving you the answer right now i think uber's -- from a current standpoint they have to prove that they can drive profitability and improve profitability in their core ride sharing service. it's still about 85% of their revenue aside from uber eats and uber freight so with that they're going to have to continue to look for

ways to get efficient. but at some point they're going to have to raise prices to be able to do that. so from that standpoint if they're able to pass those on to consumers in addition to the other businesses that they're growing, you look at the enabling technologies, you look at consumer trends and what they like to do in terms of use a service versus ownership could be a good investment but it has to play out i think in the short term first. >> mark fields, good to have you here thank you. up next, much more on today's big rally and why the market may now be expecting the fed to cut interest rates up to three times. >> and it may be one of the hottest sectors on wall street but real estate sat out the big rally today. we'll hear from the ceo of one of the nation's largest mall operators. that's coming up next. this is the couple who wanted to get away

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flights, hotels, cars, activities, vacation rentals. expedia. everything you need to go. welcome back big rally on wall street today best day for the dow and the s&p since early january. let's send it back to mike santoli. final dashboard of the day spinning the curve another good name. >> a lot of stories you could tell about the yield curve the standard one, and we're going to have a picture of what the yield curve looks like-s when short-term treasury yields exceed longer-term ones it suggests that the market is saying there's a high risk of recession or steep slowdown. the fed should be cutting rates. which would mean that yields are going to be lower. but here's the funny shape of the curve. typically, what you'll see is

the short end will be higher and then relatively consistently it will be lower as you go out to the 30-year. that's not what's happening right here you have a very steep inversion here out to five years and then 5 and 30 you have a very steep curve. so one interpretation of all this is the market is saying look, the fed probably has grounds because of low inflation and the slowdown to cut rates but is probably going to work because it won't put the economy into recession and they won't have to cut back to zero perhaps and further out inflation should pick up, growth should be okay that's one way of reading this it's a somewhat distinctive shape to the curve and i think i'm going to propose that we're going to call it the nike swoosh, is essentially the shape of this curve. some people have called it the big dipper that's not exactly the perfect swoosh either. i'm going to erase it. >> i see what you're doing >> but to me that's the way it looks. a big check mark as opposed to a downward slant a lot of ways to read this but it's not so clear cut in terms of its implications for

the economy. >> mike-k we also garner from this part of the curve, 2.30 to the start of 171 -- the market thinks we're going to see 50 basis points cuts or do we have to look to the short end >> it's handicappinging? in that range. the farther you get out if it's beyond three months the market is not good at predicting. it's leaning in the direction of the fed's going to have an easing bias. i wouldn't be too precise once you get beyond that point. >> mike, great stuff as always thanks very much time for a cnbc news update with sue herera hi, sue. >> hello, wilf hello, everyone. here's what's happening at this hour former sheriff's deputy scott peterson was arrested in broward county on ten counts of negligence this after a 15-month investigation into the actions of law enforcement following the parkland high school shooting. he's being accused of doing nothing to mitigate the shooting, which killed 17. vice president pence and his wife visiting areas damaged by the recent floods in oklahoma. they stopped at a community food bank where they met with

volunteers they then met residents of a neighborhood that was greatly impacted by the recent flooding. the house expressing bipartisan support for a resolution that remembers the violent suppression of democracy in tiananmen square in china 30 years ago. it calls on china to recognize people's human rights. >> as we support those fighting for freedom from china's oppression, we do so in the name of human rights, humanity, and truth. if we do not speak out for human rights in china because of economic concerns, then we lose our moral authority to talk about human rights in any other place in the world >> and that is the news update this hour. guys, i will send it back downtown to you. >> all right, sue, thank you we've got a news alert now on skyworks seema mody with those details. seema. >> sara, sky orkz ceasing all shipments to huawei and its affiliates after the u.s. commerce department added huawei to the entity list and is therefore lowering its guidance

for the third quarter. expecting non-gap diluted earnings per share at 1.34 at the mid-point of the revenue range compared to the prior outlook of $1.50 now, during the first six months of fiscal 2019 sales to huawei were approximately 12% of skyworks' total revenue. let's turn to pivotal software earnings and revenue beat. weak revenue guidance. the company says sales, execution, and complex technology landscape impacted the quarter and that it has taken steps to improve its execution. but wow, the stock getting battered here, sara and wilf, down 27% in after hours. back to you. >> seema, thank you very much for that now, real estate is one of the top performing sectors this year, but the sector sat out today's rally. up next we will take the pulse of the industry with the ceo of brookfield properties. >> and it turns out one of the hottest areas of the real estate sector involves the cold diana olick with that story. >> that's right, sara.

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welcome back the dow closed higher by 512 points in percentage terms in fact the laggard of the major indices up just did 2.06% s&p up 2.14. nasdaq and russell up 2.6% today. >> real estate one of the best performing sectors so far this year up more than 16%. did sit out today's rally though let's bring in sandeep mathrani, ceo of brookfield properties retail group welcome, sandeep nice to see you. >> nice seeing you too >> how would you characterize the overall state of the reit industry >> sara, unemployment's at 3.6%. wage growth is pretty good you know, the indicators right now for interest rates going down is usually a benefit for the reit industry. so so far this year first quarter, as you just said, 16% up the market seems pretty good for the reit industry. >> have you seen, though, any signs of the economy slowing down a little bit as we've seen with some pockets of data in the

last few months? >> so again, being focused on retail, you tend to see that pretty immediately so far we haven't seen that. retail sales overall has been up and effectively if you look at restaurant sales which is usually the lead indicator they seem to be going up. so far we haven't seen the consumer pull back at all. >> and yet 7100 store closures have been announced by u.s. retailers so far in 2019 how are you doing with that? >> the good news is gavel that probably our opening if you think about already winners and losers in every market and the reason we all are in business is because of the winners. and effectively from our perspective this year happens to be our greatest leasing year ever so effectively delineated brands, brands that are actually growing, more than compensate for the stores that are closing. >> the standard story for a while now about physical retail

has been that the top quality shopping centers and malls will be fine and that more malls are being made into social hubs of some sort or another gathering places, movie theaters, activities where are we in that process some first of all, do you buy into these things? >> we bought into that many years ago. i ran ceo of ggp before brookfield bought us over. we made a decision early in the game to focus on the best retail real estate. as we see that bifurcation occurring the best retail real estate is growing rapidly, almost 4%, 5% a year which is pretty healthy for real estate and the lower quality assets are going away but that's been the case for over 20 years. basically as i like to say we're underdemolished more than anything else. effectively the best quality real estate it continues to intensify, add entertainment, continues to curate correctly. and i think we're early in the game for that process.

but i think it's going to the nutt rice direction. >> who's growing the fastest who's doing the most leasing you said you're having a good year who's driving that >> from retailers' perspective you've got the people such as nantucket, warby parker, casper which are all grown and incubated online, not growing in bricks and mortar format you've got the entertainment uses which is dave & busters and main event and round one growing rapidly. you've got fitness, which is lifetime fitness, equinox, soul cycle and the like growing rapidly. so you've got plenty of players that are what i call, what millennials want today, experiences that are growing within the best retail real estate in the country. >> sorry finish the point >> go ahead. >> no, finish the point. >> i'm all done. >> all right we're out of time. sandeep, thank you very much thanks for joining us. meanwhile the massive growth of food delivery services is driving demand for an unexpected type of real estate. diana olick has that story for us diana. >> wilf, cold is super hot

especially if you're in the refrigerated warehouse business. all you need is a big refrigeration unit like this one here at capital seaport. why? well, like you said, it is the growth of things like amazon fresh, giants, pea pod, the new food delivery services driving it literally from the warehouse to your home it's small about 3% of all goods ordered online now but could grow to over 13% in just five years agoreding to cbre it's also the farm to table and organic trends fewer preservatives in food require more cold storage. but there's still a very limited supply of cold storage real estate, which makes it that much more valuable. americold is the only publicly traded temperature-controlled warehouse owner in the u.s. today. it's a reit. since going public last year its stock is, well, shall i say, on fire and that is because of so much demand produce is poised to profit and investors are rushing in back to you guys >> diana, i wonder if we're just

getting started because these growth rates for online grocery, they're still such a small percentage of how we actually shop for groceries. >> yeah, it's absolutely poised to grow. and that's why you're seeing so much investor demand in this one stock. you have to believe there's going to be more competition coming down the road there are of course private cold storage companies. and the warehouse sector overall has been incredibly hot because of the growth of e-commerce. this is just one little niche that you want to keep your eye on >> all right, diana, thank you >> she can hear us outstanding work >> she always has a good live shot up next, regulating big tech why the government crackdown on facebook and apple could actually look like that's ahead i'm off to college. i'm worried about my parents' retirement. don't worry. voya helps them to and through retirement... dealing with today's expenses ...while helping plan, invest and protect for the future. so they'll be okay? i think they'll be fine. voya. helping you to and through retirement.

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big tech facing antitrust crackdowns but what would that actually look like for wall street's top tech topps julia boorstin checking in on facebook josh lipton looking at apple julia, let's start with you. >> well, sara, with the house judiciary committee launching an antitrust investigation into the tech giants and the ftc assuming antitrust scrutiny on facebook in addition to its inquiry into facebook's privacy violations, the question is whether facebook would be forced to break up its family of apps, which of course includes messenger, whatsapp and instagram. all the more valuable because of facebook's ability to target ads across them. and that threat is why shares declined nearly 6% over the past

two days, more yesterday and then rebounding about 2% today but a number of analysts are steptical about antitrust concerns rbc's mark mahaney recommending facebook as a buy on this correction raymond james saying it would be tough to prove facebook engaged in anti-competitive practices rather than just benefiting from its product innovation the real risk is not a break-up according to baird but the distraction that all this poses to corporate leadership. wilf >> julia, thank you very much for that interesting to see facebook's intraday performance soft for the first hour or two of trade but did end higher like another software names let's switch focus and check in on what a crackdown could mean for the future of apple. josh lipton has more on that one. hey, josh. >> so wilf, here's what we know. the doj reportedly now has the authority to consider an investigation into apple but steven hawkins who served as the ftc's general counsel says that does not suggest an outcome here we don't know whether the doj

will ultimately conclude that there was actually wrongful behavior in fact, the doj is very reluctant to bring monopolization cases against companies, he says, knowing that from 2000 to date the doj antitrust division found just one monopoly case. now, he says it's certainly possible the doj could find apple as violating antitrust law. sandeep vahisin of the open markets institute said there is a potential around the issue of how apple set up its app store remember in europe spot 2350id flagged that same concern arguing apple limits choice and stifles innovation a charge apple flatly rejects. but if the doj side against app it will would seek appropriate remedies typically that means an injunction or change its behavior but hawkins and others say we are a long way from the doj making a decision. tim cook insisting not in an interview on cbs just this morning that apple is not a monopoly guys, back to you. >> thank you, josh

as fafr r as the big name that l is eyeing, its potential risks here, what do you see? >> i think google's legitimately there at the center of it. although i think we can't emphasize enough how long of a process it would be and maybe how early the stage is of any scrutiny to me it's more just one of these things that's going to sit in the background for a long time people are going to worry about it it's going to restrain the valuations or maybe, you know, reduced risk taking by the managements in terms of expanding into new areas. zblechlt u has taken on google in a number of areas for a number of years now, and often that got framed and thought of as slightly anti-american ploy the news story shifting now, making people wonder whether they were just first movers as opposed to kind of taking -- >> it is true. although here if it gets to court or gets to settlement negotiations down the road the case that consumers are actually helped by these products and the way that they're packaged and that consumers are really searching for the thing they get, it's pretty hard to counter. it's not just the one standard of how much market power --

>> and those fines haven't really hurt google >> it's very hard to have a fine big enough to hurt google. >> today on "squawk on the street" they said europe and the u.s. totally different on antitrust law, don't look to them for a precedent he said they've done a lot of funky things on antitrust. >> your friend margarita vestis, she's got a shot to be the next president. >> eu president. i want to hear about that more in the meantime earnings alert amberella. >> here's the story. strong earnings beat gienz for the second quarter came in above estimates even though the company says it saw recent order pullins from security camera customers in china triggered by geopolitical factors still the stock is up 9% interesting name to watch. wilf, back to you. >> seema, thank you very much for that still ahead here on "closing bell," crude realities oil sitting out today's big rally. is this an opportunity for energy investors or a signal that trade overall is suffering? we'll be back in a couple minutes. oh, sir. that was my grandma's.

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the dow closing up more than 500 points today 512 point, second best day of the year, best we've seen since early january, broad based strength across all of the major averages, fred, after six weeks of selling. >> right. >> for the dow and some talk that the fed is coming along to the market's view of cutting rates. >> and the energy sector was a gainer within that, up 1.6% today and all of that slipped just a little bit. let's discuss what to do with the oil sector joining us now, dentin, thanks for joining us since the kind of trade wars

reescalated again in early may, oil prices are down 10% does that make sense to you with the oil price decline? >> you have the concern of sliding economic growth and obviously with that oil demand so those are the big factors that are weighing right now on the marketplace. we still have sanctions on iran, venezuela and worries about some places like libya. there hasn't been too much of an impact on exports, but as the coach that's been doing well so far the scales can tip at any time relative to the price, is there an opportunity there >> i think there is because with the drop of oil prices, you're going to see, a pretty good demand and the economy seems to be doing well and i saw traffic on memorial day weekend and that seems to be a good sign and as we get into the summer driving season you'll see huge gasoline

demand and as we get to the end of the year, the vessels will be bullish for the diesel markets. >> i was talking about the companies, the energy companies which are only up as a group 4% this year. >> the refiners and the major refiners and particularly the ones that can take the heavier, cheaper crudes and turn them into useful products and those are the ones that will be best seated >> in terms of the overall balance and the oil price, the demand and weakness has been a bigger cause and supply is still pretty tight. >> surprisingly, the u.s.s had the gotten better and both planned and unplanned and we're finally coming out of the planned segment and there are a couple of unplanned snags that we have to get through and for the most part refiners will be clicking on all cylinders and a lot of diesel and jet fuel and hopefully the demand is there for those products >> denton, thanks for joining us. >> thank you

my pleasure. >> walmart gearing up for the start of its annual meeting and a look at key things every investor needs to watch there straight ahead this is my headquarters. this is where i trade and manage my portfolio. since i added futures, i have access to the oil markets. and gold markets. ok. i'm plugged into equities. trade confirmed.

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big market comeback on wall street today the dow closed higher by 500 point, 29 out of 30 dow stocks were higher, and wilfred, this comes after six weeks of selling potentially and an oversold bounce and the fed's new focus on flexibility and the market likes to hear that and maybe some signs that republicans are going to hold back prdz and on those tariffs. >> we haven't got through the week yet >> it's looking better after today. >> it is indeed. >> time for the look ahead and the focus is on walmart and the annual meeting kicks off tomorrow and courtney reagan has a look at what to watch. >> it's a multiple day event and northwest arkansas is this annual three-day, vent now that walmart hosts for investors and from around the world and it kicks off tomorrow morning as the shareholder business including the election of the 12-person walmart board.

bernie sanders has been invited by walmart employees to present a proposal requesting hourly workers get a seat on the company's board. it's not expected to pass, but walmart is expanding college education benefits to high school students in an announcement it made today hoping it will be a recruiting tool only 25,000 of walmart's 1.5 million workers currently are high schoolers it's a pipeline they haven't tapped sarah? >> courtney, thank you >> james hulltower's reign as jeopardy champion coming in after coming in second place he won a total of $2.6 million and he did manage to give the right answer to this $1,000 clue. >> in his 1977 interviews with this british journalist, richard nixon said i have impeached myself >> wilfred, we know you don't

watch "jeopardy," but surely you might know the answer to this line >> i still have an inkling, but i'm slightly confused by the way they phrase the questions in the game show. >> they give the answers and you say, the question. >> david frost. >> who is david frost. >> lots of people text me about it and also a very proud moment. >> always. >> and always a reminder for the great men. >> he might have been. >> he may well have been, but no, very always a nice reminder. >> maybe i'll start watching i did not want to see him lose >> really? >> yes i was rooting for him. >> it shows even that question i would have gotten the question wrong and i think i was on to the right topic. anyway, well done, as always always on tap for tomorrow that reuters is reporting that trade talks between the u.s. and mexico will be held tomorrow

around 3:00 or 4:00 p.m. eastern and that, of course, will be an important day for the market sentiment. >> also, we want to flag tomorrow big interview on kwo "closing bell," an interview with carole ghosn and she's discussing the charges facing her husband in japan and speaking out for the first time in a while. >> which is going to be fascinating. >> yes >> in what is a heartfelt and charged interview, we look forward to that and lots of insult and renault's also in th news as well it was a perfect tailwind for markets. >> and the mark was so washed out and the character of the rally today showed you it was very, very broad nobody got in the way of it and it showed you the market was pretty well flushed out which was pretty good and it clicked a lot of the boxes where you could rely the fed impleaed expectations and it did not go down and the

market rallied big and still coexisting with that idea that the fed is leaning in an easier direction so that seems to be the story for the moment >> reits were on top this year and technology has now edged out reits again. today it had a strong balance. >> i'm just going to read the script today. >> that does it for "closing bell." "fast money" begins right now. "fast money" does start right now. live from the market i'm joe curran i'm not coming back until i have 500 points as least and look what happened today. i am in for melissa lee. our traders are karen finerman and guy adami. mike wilson, chief equity strategist at morgan stanley joining us tonight on the show it was a huge day for the markets, green across the screen and there's one group of stocks that could be in for a reality check. we will explain, plu