>> tim cook didn't think apple would be hurt very badly by chinese retaliation, if the tariffs do go into effect. >> maybe some wishful speaking thanks for watching "power lunch. "closing bell" right now see you tomorrow good afternoon welcome to the "closing bell." i'm wilfred frost. >> i'm sara eisen. breaking news this hour. vice president pence and secretary pompeo meeting with mexican officials over the proposed tariffs on mexico just about half an hour, mexican officials should be arriving any moment let's get to kayla tausche at the white house. >> some of those officials are already starting to arrive mexico's economy minister spoke on her way in just a few moments ago and expressed some optimism about what could result from this meeting listen >> we'll find ways to have workable plan. thank you. >> of course, that meeting is

set to begin in about 30 minutes. mexico had said it would present a comprehensive proposal to the united states delegation, though it has said it will also reject a u.s. proposal for mexico to accept all asylum seekers coming through from central america that is something that the white house has floated before, but mexico has now called it a red line so we'll see exactly what, if any, sort of compromise the two sides can reach. we're running about a half an hour behind today. the meeting originally set for 3:00 p.m and mexico is expected to have a press conference this evening at about 6:30 president trump himself touched down at his golf course just about 90 minutes ago i'm told he'll be briefed at the end of this meeting. but earlier today when meeting with the irish prime minister, he expressed a little optimism of his own >> they have their entire delegation right now going over to probably the white house location, but to negotiate with our people it's headed up by mike pompeo

and bob lighthizer and mike pence. they sent their top people we'll see what happens today >> so we'll await that meeting to start in about 30 minutes time a senior administration official tells me this is the starting line of negotiations, not the finish line. sara, wilf >> if this newfound optimism is well placed and, say these tariffs never come in to play, to what extent has it already done significant damage with other trade negotiations taking place that make it harder to reach a deal with the chinese? >> well, these are two very different situations on one hand, the u.s. is trying to get mexico to make some immigration progress, some border security progress that it feels mexico has not made before and so it's introducing or planning to introduce tariffs that are relatively small compared to what it has already introduced with regard to china. those tariffs would be 25%

they would be on $300 billion. the remaining imports from china in just a few weeks time, although trump and xi are still expected to meet at the g20. and we'll see if there is an impasse that can be broken there. although i'm told by sources who are briefed on talks on both of these fronts that it's unlikely the white house would want to keep both of these battles open. so look for any sort of optimism or progress with mexico, potentially to guide you where china would lead as well >> all right, kayla, thank you 57 minutes to go here is what is driving the action in today's market trade dow up 168 points at this hour those tariff talks also white house trade adviser peter navarro saying that mexico tariffs may not have to go into effect sparking some optimism. also hopes for flexibility from the federal reserve continue to help this market, but oil sitting out the rally entering a bear market, down 22% from its high on april 23rd

>> wasn't down significantly yesterday but when everything else is rallying, whether trade related or fed related, oil was flat, slightly down and extending those gains -- those losses today down 22% since april. in terms of the rally today, defensive tone to it utilities, real estate at the top. we're not seeing a continuing bounce in the banks or continuing bounce in the googles, for example, that led yesterday's rally. >> joins us for the hour, josh brown is back from ritholtz wealth management. i'm going to go to salesforce. it's leading the technology sector some concern that enterprise spending was facing a slowdown that's not the message we got from marc benioff. >> even if you have a corporate spending slowdown, things like salesforce will be the last place to feel it other things will be cut before productivity, before technology, given the break-net pace of adoption of technology and software a little blip might be magnified in any one company's earnings

report the software service names, they got hit this week and last week but they've done phenomenally well versus the entire market. that speaks to the resilience of the type of spending we're seeing on their products versus something that's maybe a little more durable like a piece of equipment or even a semiconductor. so i would not point there if i'm looking for signs of, uh-oh, corporate cap ex is slowing down or -- >> yeah, i was saying the opposite >> i think you're right. that's reflected in both the price action of these companies and the multiples that investors continue to seem to be willing to pay for them. both existing and even on the ipo side >> josh is with us for the full hour 55 minutes left to trade up 0.6% on the s&p let's dive into all of the stories moving markets seema mody, bertha coombs. >> markets awaiting any developments on the u.s./mexico trade front. the dow currently up rising hopes of a fed rate cut continues to fuel stocks higher.

we were up around 500 points for the dow yesterday. continuing our gains today and technology playing a pivotal role in this two-day mini rebound. you can see the dow leaders, apple, cisco, intel among others moving to the up side. on the flip side, oil not participating as you were just talking about. the broader move we're seeing in the market wti crude down now down over 22% from its recent high. and you look at the pain across the energy sector. a number of energy producers from halliburton, chevron and others moving to the down side transportation stocks responding to the move in oil prices. delta airlines, southwest and american air leading the dow transport index. to put this move into perspective with what we've seen in june, the s&p 500 is up about 2.6% we did lose about 6% in the month of may so still have a ways to go >> so far, june is looking better than may. thank you, seema bertha coombs has a look at what's moving at the nasdaq.

>> definitely looking better in terms of the china trade narrative in tech. we're seeing a bit of a divide today. tim cook says he's confident china will not target apple in retaliation for u.s. sanctions shares are on pace today for the first back-to-back gain since april. up about 7% from monday's low. but take a look at apple supplier skyworks and other chipmakers it cut its guidance blaming restrictions on huawei which accounted for about 12% of its revenue. that's sending the chip sector lower for a second day in three. beyond tech, though, foodmakers today are seeing new highs just about in time for that afternoon pick-me-up wilf >> bertha, thank you for that. for more on today's markets and what they're watching in this u.s./mexico trade meeting, let's bring in kevin rudd, former prime minister of australia. >> good to be back >> to what extent -- i'm going to go back to the question i asked kayla. to what extent do you think the latest threat of tariffs on mexico make it harder or less

likely a deal is done with china? >> i don't think it has an effect directly, but what the mexicans and chinese and, frankly, the international community will be saying is, what impact do all these threats, if they're real have on global economic growth because these are large measures go to the american economy itself, again, we ask the question, are these threats credible because what the president says is that foreigners pay these as taxes. that's not the case at all american importers pay tariffs and as a result, that flows through to price rises for american consumers and with the stuff imported from mexico, that's huge. covers a whole range of consumer products, similarly with china, although in different categories so we ask ourselves, how credible is this if you flowed through with these actual actions, it's just enough to start tipping the global economy in a very bad direction. look at the reaction from the u.s. fed saying they are, well,

implying that things are sufficiently jittery, that they've got to consider a next round of rate reductions here in the united states. they only do that if they think the impact on growth here is heading south. >> you think they'll go through with these tariffs on mexico >> look, i'm no mexican expert just not my field of expertise, but i would think given the complexity of the global supply chains, the number of goods which flow both ways across the mexican border and back, it could be, frankly, an horrific impact and the mexican trade is very large don't assume the mexicans would not feel for nationalist reasons they have to retaliate will it go ahead to me it strikes me as bluster and the bottom line is this. world trade organization rules do not permit you to impose tariffs for nontrade reasons this is basically saying i don't like your immigration policies i'm going to hit you with tariffs. you start establishing that as a precedent, where does it go across the world i don't think it's credible.

>> the st. louis federal reserve put out a piece of research the other day and they looked at the correlation between the economies of the united states, canada and mexico. and since nafta, about 25 years ago, first of all, cross-border trade between the three nations has gone from an inflation adjusted $300 billion to north of a trillion. but when you look at gdp growth rate, there's a startling connection between the three now the hawk would say, yes, well, it doesn't really matter because it's the u.s. economy driving that train if you have an economic shop in mexico or canada, it wouldn't necessarily be imported into the u.s. economy my response, and i'd love to hear what you think is, we don't know that for sure we've got tested that theory, and we've grown so close with these countries that it may not be the case. we may introduce a shock to mexico, for example, if this gets out of hand, that does send the united states into recession. what are your thoughts on that >> well, i think those at the

fed who analyze the micro data are reaching a similar conclusion it reverberates back here to the united states. and, therefore, i am with you on the conservative side of this analysis tariffs are bad economic policy. i am a social democrat from the center left. we are a free trading party, however, coming from australia i don't know what's happened to the grand old party. the party of free trade in the united states. but if it continues to head in this direction globally, i'm concerned about the overall impact on global growth. imf's made warnings on this. the fed is make -- >> world bank cut today, global growth >> that's why i don't think -- >> two points i just want to -- >> one second. kevin, i wanted to ask in terms of the talks with china and how that has changed since you last came on. there's been a kind of elevated tone of nationalism coming from the chinese state media. is that something that's altogether new from your

experience and how severe an effect might it have? >> i run a think tank here in new york but i spent the last two or three weeks in china. basically when everything started to go -- turn turtle, and the nationalist reaction in china has been huge. the bottom line is the chinese have changed the negotiating position so has the united states on different aspects of this agreement. but the way in which it's been transacted in the public domain has caused the chinese now to issue three red lines publicly beyond which they will not go. that, therefore, elevates the degree of political difficulty in getting to what i thought was a reasonable outcome what i do think will happen at the g20 coming up? i think a credible outcome for the g20 will be to rekickstart negotiations it's almost like a "back to the future" where we got to with buenos aires last december, but that's better than no negotiations at all. nationalism and political factors in the chinese case are

making it harder to get there. but ultimately, there are strong economic structural factors which would argue in favor of chinese finding a way through. they need further growth in their economy. private sector still not looking all that strong though the chinese of making preparatory measures and if the president goes into an election year with a bunch of tariff regimes erected around the world, the risks of recession here start to become real indeed. structurally, the impetus toward a deal but the political barrier is being constructed each day make it harder to do >> what do you do with all this, josh >> i want to bring out two points for investors paying attention to the headlines and each day seems to have a different twist in the plot, which is really exciting, but the two things that aren't changing is, number one, there is no specific number of people crossing the border or any metric that the white house laid

out which i think is a little bit smart because they can say, you know, we've made a deal. and nobody has to agree to anything concrete. and so if there's an out of hand market reaction, the white house does have that card to play. they can say it turns out we're closer than we thought and everything is fine now because they didn't lay out any specific metric that's one two, and you read a lot of research and both of you are paying attention to this you're starting to hear this terminology creep into the rhetoric insurance cut. listen for the term insurance cut between now and either the june meeting or july meeting this idea that the fed doesn't have to wait for there to be actual damage in the economy for them to do something, that's important. by the way, wall street consensus estimates have not budged, which is also interesting. the analysts are waiting to hear from the ceos. they're waiting for actual forecast cuts before they start lowering their expectations for full-year 2019 hasn't happened yet. so that's a shoe that could

drop, and there are a lot of things still in motion and those are the things that people managing money and trade are listening for. >> 45 minutes left of trade. still aup 0.6%. kevin rudd, thanks for joining us the dow and s&p seeing their big twoefgest two-day gain sincl january. we'll talk to howard lutnick about what's driving that move and one of the auto industry's most controversial figures. >> carlos ghosn's wife speaks out exclusively to cnbc. >> this is bigger than carlos' story. this is about two governments trying to merge a company, and my husband was the collateral damage in this >> why she thinks her husband's arrest was a conspiracy. and her plea to president trump to help. coming up on "closing bell." i'm working to keep the fire going for another 150 years.

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be go[ laughing ] gone. woo hoo. ♪ welcome to my house mmm, mmm, mmmmm. ball. ball. ball. awww, who's a good boy? it's me. me, me, me. yuck, that's gross. you got to get that under control. [ dogs howling ] seriously? embrace the mischief. say "get pets tickets" into your x1 voice remote to see it in theaters. welcome back let's get over to bob pisani at the global exchange conference he's sitting down with chairman howard lutnick bob, over to you >> and one of the great legends of trading, of course, here at the sandler o'neill global exchange conference. everybody is talking about the markets and what a tough may it

was, down 6% a lot of volatility. kwlu what are you seeing? >> the economy was growing so nicely it's going to quiet down a little you're running a big, long race. people get a little tired. so they just get a little tired. so the economy is going to grow more like a 1% to 2% next quarter. and that's pretty good i'm surprised the pessimism here it's high. a lot of people seem to think the trade in the tariffs is a permanent fixture of our trading system for the next maybe the next year or so. do you share that pessimism and is it going to hurt the markets? >> i do agree it's here to stay for a while. i don't see the chinese and the administration sort of working it out on thursday i just don't think that's on the table. so i think it's here for a while. and -- but i think the economy will get used to it. i think it's much more dangerous for china because supply chain can handle three months or foremonths but once supply chain moves, it starts moving to vietnam, they can't get it back.

so i think each six months will cost china a 1% of gdp they'll try to make a deal with -- >> so a deal will be made? >> before the next election. >> that's a long ways off, though >> i think it's going to be -- >> recession or no recession in 2020 what side of the divide are you on >> slower growth 1.5% to 2% but no recession. >> i get emails about the bond market and why we're so low. help us explain this briefly here there's the group that says it's telegraphing a recession that's why the yields are low, bob. stop worrying about it others say central bank intervention others say global buying yields are low because there's been low inflation because chinese have been out with lower priced goods for years and years. that's keeping prices down other factors like technology keeping prices down. explain the bond market to us. why are yields so low? >> low inflation is sort of a base line which is true. low inflation around the world keeps rates low. that's a start second one, the fed raised rates because they were at zero.

so the fed wanted to get away from zero. they got all the way to 2.5% now they've got some coil in the spring and so if the economy starts to slow, they've got room to take it back down what you should expect to see is the fed who jumped out quickly to 2.5%, we'll dial it back 2.25%, maybe 2% to just try to keep this are growth going, keep it at the 2% rate. keep it going at the 2%. so i think that's what you should expect through the end of this year. >> so you're in the camp the fed cuts two, three times this year? >> i would say two times including the first quarter of next year. i think growth will be in the 2% range going forward. maybe slightly below but it's still sort of smooth. the economy is not stopping. it's just not. it doesn't feel that way to me it doesn't feel that way in the statistics we see. i think we're just going back to where it was growing under the obama administration the current smradministration i

not a fan of that, but -- >> you're talking 2% >> we had eight years of thinking it's pretty good. now it's not good enough >> howard lutnick, always a fun opportunity to chat with you. i appreciate it very much. sara, back to you. >> bob pisani, thanks to you let's go to mike santoli for the market dashboard what have you got? >> here's what we're going to hit. everyday high prices we'll get to that in just a second also rediscover gold the markets have that commodity on the move. we'll look at how that breaks down breadth and risk second day of this rally see how the internals of the market are hoeltlding up and monitoring the financial conditions everyday high prices walmart's annual meeting today getting headlines. talking about the federal minimum wage to go up. look at walmart shares having a good day outperforming the market investors like the story here.

look at it compared to the broader retail index far outperforming the average retail stock you see a tremendous amount of outperformance almost 40 percentage points over the last year. look at the valuation. this is actually perhaps even more interesting the valuation trend in terms of forward price earnings multiple in walmart versus the xrt. this is walmart in absolute terms. it went from being around the market multiple, 16, 16, up to the low 20s right now and compared to the overall retail index has a 40% premium. the big guys are considered to be the winners markets willing to pay up for it walmart is in the consumer staples sector it's almost valued as a steady long-term consumer staple. not so much applied on consumer spending trends. >> it's josh brown that's a great part. the p/e of walmart versus its peers. it speaks to something a lot of

sell side analysts maybe had trouble with the company buys jet they say, okay now we're serious about logistics online, omni channel, on and on. and they start to execute. and there's this delayed reaction this stock, for example, is not above its 2017 high. i think it's on the verge of a massive breakout it's been consol dating for 18 months now and when it goes, i think it's going to be too late. it looks very much like disney to me in that respect where people are slow to wake up to the potential when a company gets serious about technology. is that what you think is going on here? >> the backdrop for both of those situations is when the street has your industry kind of on death watch and puts you in that bucket of long-term decline, going to be disrupted by new technology, i think that it's a little bit jarring when you say the big guys, the incumbents are going to start to spend and disrupt themselves if that's what's going to with walmart and disney and belatedly start to reward the stock.

been very dramatic with disney a slower trend with walmart but interesting nonetheless. >> what's funny is that now this is a consumer staple by definition target is a consumer discretionary. and amazon is a discretionary but everybody calls it a tech stock. all of these companies are now doing the same exact thing >> selling groceries and everyday goods >> basically >> it's interesting that walmart has escaped the overhang the retail sector has faced on tariffs because they do import a lot. their executives warned about it on earnings. steve mnuchin said he's been talking to walmart execs about the impact why the stand out? >> imagine where the stock would be if that was not an overhang probably 125 plus. >> so it already has been? we've got -- thank you, mike we've got under 40 minutes before the closing bell. dow still trading up 183 session highs just above 203 though it's a defensive tilt to today's trade, most sectors are up in the s&p 500, it's utilities and real estate leading. still to come, the ceo of

u.p.s. weighs in on the growing competition in the shipping space. first the word on the street why one wall street firm just gave pot company cronos a double upgrade coming up next

welcome back to "closing bell." time to get the "word on the street." guggenheim upgrading roku to 119 from $75 a share the firm citing strong secular tailwinds for the streaming

video consumption company. it's up 9% bank of america giving cronos a rare double upgrade from sell to buy citing improved confidence that the company is nearing its u.s. cbd launch. stifel upgrading nxp this is a trade statistics group forecasting the sector will shrink 12% this year it's down 1.5% kudos to bank of america for the double upgrade often get some sort of cover your basis small upgrades. let's focus in on roku the point they make here is $10 billion market cap $35 million subscribers, users by year end. they're not monetizing much of that yet but the scope for this to increase is huge. >> the street has learned to look past how much money they make today when you have a company growing subs at this rate and not spending all that much to bring them on relative to what it could look like for,

let's say, a traditional cable company. roku is a flawless chart a lot of people in this are the crowd that would work with something like a ten-day moving average. very, very tight stop. they want to be in the momentum names. they want to be in high beta and this company also has an amazing story. so i think there's also -- >> it's also off 150% in -- >> no doubt. >> is it too late? >> depends what type of investor you are. contrast that with cronos. cronos was in a 45% draw down prior to today so if you are the type of investor that's looking for the falling knight that stops falling, there are stocks in this market for every taste. i don't think you're finding value investors seriously looking at something like roku i think that's got its own investor base. but, look, that's a name where they are making the total dre addressable market if they get to what the expectations are, it could be

volatile but work for a long-term investor willing to make that bet. we have just under 30 minutes left of trade. the dow up 160 up 204 at the high of the session. a key trade meeting is set to begin any moment at the white house. let's get an update from kayla tausche. >> that meeting will begin moment early we've seen members of the exkandexca mexican delegation entering. also the secretary of the u.s. along with the vice president who will be leading this meeting. it would result in the u.s. putting new tariffs in place potentially next week and mexican retaliation in response. a breakthrough could result in a delay or reversal of that tariff policy the white house has been keeping its options open and managing expectations a senior administration official telling me the situation is fluid. back to you. >> kayla, thank you. we'll be monitoring that meeting. let's get a cnbc news update with sue herera.

>> here's what's happening at this hour. democratic presidential candidate bernie sanders blasting walmart's board, including its ceo for paying what he describes as starvation wages. at the company's annual shareholder meeting he introduced a proposal calling for hourly associates to have a seat on the company's board. >> it's not a radical idea i'm asking walmart, the employees are asking walmart, pay the workers there a living wage you don't get rich on 15 bucks an hour. that's for sure. but at the very least, you can live with some security. >> former chicago mayor rahm emmanuel will join the boutique investment bank center view partners we'll open a chicago office for centerview and advise clients on merger deals and other matters former treasury secretary robert rubin is a centerview adviser. and the 151st running of the belmont stakes takes place this saturday war of will is one of the

favorites. he drew the 9th starting position ten horses are in the field. coverage begins on nbc at 4:00 p.m. eastern time on saturday you're up to date. >> hopefully a clean race this time >> i know, right >> i was so confused as to what's going on last time around >> i think you had a lot of company on that one. >> sue, thank you. see you next hour. we have 27 minutes left of trade. here's what's driving the action hope for talks with mexico, of course, as we just said. those ongoing. flexibility from the federal reserve. oil sitting out the rally entering a bear market, down 22% since its april high >> weighing on those stocks as well speaking of driving, uber is outperforming the market the stock rallying more than 4%, trying to close near the highs of the day, josh right up at that ipo price this is strength we've not seen from uber. >> i have to look but this may be the first back-to-back days where this stock has had a gain. i'm long, by the way i own it slightly lower. this is like a very good

barometer of risk appetite in general. especially for technology companies and this concept of we talked about tam this concept of companies that are going to grow regardless of opportunity. so they own the market and uber is not -- >> i think the impetus is the analyst. all came out super bullish >> three years ago, there was no uber eats. we saw that with companies like amazon that started off doing one thing and then decided to do something else >> but, josh, were the analysts stlat all come out super bullish? is your hope 100% higher or -- >> 20 analysts, maybe 17 of them orp the deal team. they're syndicate analysts there has to be decorum. >> why are you holding this, for 20% up side or you think it's going to double or triple? >> the price target of $88 there are people that have come up with a reasonable framework for how it could double.

if you think it's going to double because it will start earning money next year, you'll be disappointed. i have a stop in below the vietnam average weighted price from its first week trading. i have a very short leash if things go sideways technically, i'm out. i don't become a believer in something like this this nearly the game i can take a risk, why wouldn't i do that? that's the way -- i don't have a deep-seeded fundamental belief that uber is going to be a great company. it could too soon >> uber above its ipo price. markets up 146 with 25 minutes left to go transports up around 10% year to date up next, the ceo of u.p.s. weighs in on the space employees need more than just a paycheck. you definitely want to take advantage of all the benefits you can get. 2/3 of employees said that the workplace is an important source for personal savings and protection solutions. the workplace should be a source of financial security.

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welcome back let's send it over to mike santoli for his second market dashboard. >> we don't talk a whole lot about gold i tend to opt out of the big picture debates. the religious arguments about gold as to whether it's money or an acroanistic relic look at the price action you can infer a few things about what's on the market's mind when you look at the price of gold. on a good run here to the right side of that chart nosing above the recent 2019 highs. what i find interesting here is, here's where it topped out over

the last couple of years just over or about $1360 an ounce. this time, it's coinciding with a pullback in the dollar coinicidesing with a lot more anxiety about whether central banks have it under control. no real consistent relationship with inflation look at gold relative to oil, though this is another what i would consider a sentiment tell about what's on the market's mind. here you have this low when gold was very cheap, relative to oil, that's basically the top of the market. that's october 3rd that's jay powell saying we're nowhere near neutral this is christmas eve, the low for risk assets. obviously, peak against oil and now you have it rebuilding this premium, not quite to those extremes that we saw in the stock market lows in december but getting up in that direction. so you can see the rising anxiety and increase in growth fears in this relationship, guys >> that's a good one, mike thanks new tariff threats on mexico

and its impact on the global economy. i did speak with u.p.s. ceo david abney and asked him what he's seeing out there in the u.s. and global economy. >> we do move 6% we move 3% of the world's gdp. and i can tell you that the economy is in the u.s. is doing quite well but as far as the way that the u.s. economy is holding up, we are very happy with that from an international standpoint, a little bit slower growth than maybe we expected a year ago but it's still, you know, holding up pretty solid. >> what about the manufacturing and industrial production sector of the u.s. economy? you also have a good window into that >> i would say that we're more of a present day barometer, not a leading indicator. and through the first quarter,

the latest projections coming out was that manufacturing could slow a little bit in the second half of the year but as you know, consumer confidence has really jumped up in the may surveys so if that confidence continues to hold up, that may cause manufacturing to eventually rise a little more than we think. >> you said you were in a leading indicator. you're part of the dow transports got beat up hard in the month of may. that sector went into correction your stock got hurt worse than the market many are wondering if that's a bad omen for the economy what do you say to them? >> there's a lot of opportunities. we look at e-commerce. we look at small and midsized businesses that are 95% of the firms in the u.s 50% of gdp and we see a lot of opportunities there in health care, in life sciences so sometimes you have to try a little harder to reach some of these markets.

>> your competitor as well, fedex, moving to sunday shipping are you going to respond and do the same >> we are always looking at what network changes we need to make for our customers. and in this case, we're talking to a lot of our customers and getting that input so there's nothing that i can tell you right now but certainly something we're looking at >> what about amazon's recent move to offer prime members one-day shipping instead of two? does that challenge you? how does it impact you >> it brings opportunities is what it does if amazon is going to do this, then a lot of other companies start to look at it, so there's a lot more discussions withous next day opportunities there's more discussions on how we can work with their supply chains it's funny that -- and i think it's because of their size as much as anything else, when they

make a move, there's a lot of other companies that want to know, how can we help them to remain competitive and to adjust >> and you're one of them? >> yes >> david abney we talked a lot about trade, including proposed mexican tariffs. and chinese government investigating his competitor fedex. we'll have that for you in the next hour. josh, your thoughts on u.p.s. and, really, the collapse of transports in may. >> yeah, and, look, my take on u.p.s. is you can't short it because paying a 4% yield, which is pretty good, and they're still growing earnings 6% a year they somehow have managed to do that it's a very well-run company technically you can't be long this name. $90 seems to be an important area of support. if she loses $90 that's a trap door i think you'll see whoever was left believing in this story exited at that point it's down from the high. every single bounce back in this stock leads to a lower high. so over the last six years, the stock has done nothing

it's trading where it was in october 2013 you're missing nothing by being out. the people that want to play e-commerce are finding names like shopify not wasting their time here. this stock is not looking good here technically i'd stay out until something changes. >> we've got the comments on trade to come. his comments on global growth were not that negative maybe we would have expected that on u.s. growth but also on global international growth saying growth is holding up well at the moment. >> plenty of growth opportunities he said. >> frankly, he's not going to come out and make negative comments he'll say challenging, but he's not going to be like, yeah, the do downturn is here >> ceos do sometimes want to cover their own bases by saying it's a macro effect. >> fair enough up next, we'll look at why banks are rallying even though hopes for a rate cut typically bad for banks are increasing back in a couple minutes key portfolio events. all in one place.

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we've got about flaent 13 left of trade here let's get to rick santelli with the bond report and mixed trade data >> the data on the service sector was great 27,000 jobs not so much, but the big story is a tale of two parts

of the yield curve three month to 10s still minus 23 three-month bill, doesn't move much if you look at 10s to 2s 27, 28, intraday, 31 and several sessions ago it was at 15. if you look at 30s to 2s it was over 80. now at 79. you can see just considering this simple. nine basis points below yesterday's two-year note high yield. long ends looking at the economy. may be optimistic. short ends all about the fed wilf, back to you. >> rick, thanks for that we'll have a little discussion on the banks, in particular, why banks have managed to rally in the last week or so, even though expectations of a rate cut have risen. and for that, i want to separate out net interest income and fee income the first one, net interest income, why does a rate hike help banks because a higher rate gives them the trance to arbitrage more between what they are charging people borrowing from them and

what they're gaining from savers a rate cut will unquestionable lower the net interest income. it could steepen it a bit. but the fee income can increase. that's the fees they get from advising on m&a, the fees from executing a trade, the fees from offering wealth management services and i think when you look at the moves particularly in the bank stocks yesterday, up 5% even when rate cuts -- >> there's the nike chart. >> there's the nike chart. and the valuations that banks are already at, they are saying that we're just happy to look at any little bit of good news. i.e., that we might seethe economy pick up and the m&a revenue pick up and they're happy to look past the fact the net interest income might fall >> in other words, better outlook for the economy which you get from pricing in a rate cut is more helpful for the banks than that bit of profitability from a steep ear. >> yeah, i think -- they'll get a steeper yield curve. it's just that lower rates -- i just think where they're priced

and also the shape the yield curve is already in, a cut adds a littlesteepness. it's not just lower rates but offset by more steepness >> you buy the banks >> i'm long jpmorgan, but the areas of finance that i'd like to be invested in look more like visa and mastercard and less like citi and bank of america. and my only comment is, i'm not sure when this conversation is going to transition between how much are they making on the spread and what is the yield curve over to what if leverage loans blow out where are spreads? where are credit spreads generally? that conversation has not started yet because everything is good. but it's typically not far behind and we start talking about a fed rate cut why does the economy need a rate cut? i don't know but if three months later we're looking at, uh-oh, look at jnk, looking at those issues, we're not there yet. but for me, i feel like that is why banks have done nothing for so long because they're worried

about that >> up half a percent the financials upex nt, your last-chance trade. stay with us on "closing bell. you should be mad at airports. excuse me, where is gate 87? you should be mad at non-seasoned travelers. and they took my toothpaste away. and you should be mad at people who take unnecessary risks. how dare you, he's my emotional support snake. but you're not mad, because you have e*trade, whose tech helps you understand the risk and reward potential on an options trade it's a paste. it's not liquid or a gel. and even explore what-if scenarios. where's gate 87? don't get mad. get e*trade and start trading today. man: stand up if you are a first generation college student. stand up if you're a mother. if you are actively deployed, a veteran, or you're in a military family, please stand. the world in which we live equally distributes talent. but it doesn't equally distribute opportunity, and paths are not always the same.

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welcome back time for the last chance trade josh, what's your pick >> this one is on the house. google $990 a share was support back in 2018 and earlier in 2019 that's about 5% below where we are. i think you can get long here. put your stop just below this stock is down 25% or so on headlines about antitrust that i think are way overblown or premature. i love the risk/reward on this one. i own it and like it >> all 25% of the decline is on antitrust or just the last 10% >> i think some component of overall market but the last week or so. i think it's way overdone. way too soon to know what the fallout, if any, will be 5% risk, get long right here 5/2 minutes of trade. we'll be back with the closing countdown. ♪

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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. dow ticking up shawn cruz from tt ameritrade is here to trade the close. shawn, first to you. what do you make of the action second day in a row of gains they are picking up here, but there are some cautionary signs like defensives in the lead. what do you make of it all >> you are getting a move higher in equities today but i'd notice which sectors are leading us higher we're seeing that come out of

utilities and staples, the two sectors that led the way although there's a move back into equities, it's a little more of a defensive type of move in >> shawn cruz, thanks for joining us let's get to mike santoli for his third dashboard. >> let's look at market breadth today. yesterday's rally was impressively broad look at the advancers against decliners today, though. much more mediocre picture you see about 50/50 here, slightly to the positive in terms of advancing and declining. only about 40%, 45% of the volume is on the up side the s&p, low volatility etf against a high beta etf. low volatility outperforming the aggressive high beta one and that shows you the defensive tone let's get to the nasdaq with bertha >> we're seeing large cap outperforming in large part because of apple today seeing its best two-day gain since the beginning of the year.

but the strongest area of tech today is the software sector on the back of salesforce's earnings yesterday that were pretty strong in the outlook pretty strong. all those are moving up. and among the new lows today, weibo. they lot of those stocks continue to be under pressure. over to seema. >> we're rallying into the close. the dow up over 200 points which means we've gained over 700 points in the last two days. sectors leading us higher, it is defensive. real estate, utilities, but tech also playing a big role in this rebound we've seen today as well as yesterday energy down about 1% typically the market would respond negatively to the trade risks highlighted in the fed's beige report but we rallied into it and extended those gains. payrolls data came out futures came off the highs we bounced back once stocks opened for trade the backstop has been the fed, hopes the fed will cut rates and

be accommodative and more flexible that continues to be the big factor behind the move in stocks a number of stocks including carnival, royal caribbean and -- the dow closing up 200 points. the s&p up 21. [ closing bell ] welcome to "closing bell." i'm sara eisen >> i'm wilfred frost along with mike santoli, senior markets commentator. >> here's how we're finishing up the day. up for a second day in a row the dow closing higher by more than 200 points. a nice tick up at the close. 209. the s&p 500 up 0.8%. the nasdaq also rallying 0.6% and the russell 2000 underperforming. it was lower on the day by about 0.1% as far as what stood out, most industry groups actually managed

the day higher but it was the utilities and real estate groups that shined the brightest. energy lower, slammed oil prices now in a bear market >> energy and the russell which stand out in terms of being more linked to the economy. that's a concern, but net/net, second day of gains, as you said, at the highs of the session. certainly nothing to be disappointed by. >> one thing i'll point out if you're rooting for risk or growth investors, uber has been on a four-day run. it climbed back above its ipo price finally after a very rocky start in the public market closing there at the 45 level. notable for the strength perhaps a sign that people are taking some risk again in this market we'll have much more on this two-day rally. plus awaiting earnings from stitchfix and cloudera we'll get those numbers as soon as they are released joining us to talk about the market today, josh brown is still here and tobias joins the

conversation chief u.s. equities strategist at citigroup mike, what do you make of the mixed action didn't get participation from semiconductors and some other trade-related groups >> yesterday, those groups did scream higher. so you had a little bit of a spillback based on the strength of the pop yesterday it's good in the absence of anything nels terms of the overall indexes. still burning off the very oversold conditions. a lot of pessimp the s&p for context, closed where it did the friday before memorial day so we're kind of taking back seven days, six days -- trading days worth of down side. so we're still fighting out this battle in these levels in the s&p that have been traveled a whole lot. >> josh, we talked towards the end of the last hour about the prospects of a rate cut. do you think that's now necessary to stay where we are in the market? is it already priced in? >> so i go back and forth on that question. whether or not we need one is above my pay grade but from an asset allocation

standpoint, my broader comment would just be if you told investors at least humble, knowledgeable investors at the beginning of '18, you're going to get an up 12% year and that's what you'll have to live with for the next two years, most of them at that point would have said that's fine and that's where we are right now. you're up 10% or 11% on the s&p. if we were to close out right here it would be a better than average year there's a lot of pessimism and negative f negati negativity is the rate cut the thing that gives you the new high i'm not 100% sure that's the case and i don't know what would make me change my mind. so i know it's an oblique answer but that's where i am. >> tobias, maybe you can clear it up. how do you see the relief over the last two days about the fed, about trade or was it just oversold >> i think the markets came into may complacent then we started getting the

trade issues and the market wobbled appropriately. we didn't get euphoric nobody was that excited at the end of april but they were a little too comfortable we've seen that comfort get removed. i kind of agree that the notion -- i'm not quite sure what oblique means, but i'm going to have to look that up. the notion of the market wanting a rate cut, well, that would suggest there's something really wrong on the economy so that's where the problem is the market likes the idea of a salve if there's a trade problem with the rate cut. if it's an economically driven rate cut, then earnings start coming under pressure and people worry about that element that's not necessarily where we want to go if we have to go there, it will probably be at lower levels. >> on the topic of trade, the imf managing director christine lagarde speaking at the american enterprise institute let's hear what she had to say about trade. >> some of the risks that we had identified back a couple of months ago have actually begun

materializing. one of the risks that we had identified is the risk associated with trade tensions and two months ago, we said be very careful what you are doing with this major growth engine that is trade because anything that breaks on trade, such as tariffs, such as nontariff barriers is going to actually be a break on growth. and unfortunately, we're seeing some materialization of these risks. >> just going to tell you that the imf did lower the chinese gdp to 6.2%, just slightly she's trying to be the voice of reason at the table at g20 that says, look, guys, tariffs are bad for growth both of your economies are going to suffer from all of this get a deal done. >> i guess the question i would have tobias is whether, either way in a relative sense, the u.s. comes out as the winner not just with u.s./china spats

but u.s./mexico spats and countries like germany who might not be in the midst of a trade war but are much more trade war dependent economies and the u.s. will be the pick of the bunch. >> we have large consumer population large business doing capital spending so there is an argument that we come out ahead and still lose. it's a question about how badly you lose i listen to our emerging markets economist speak last week. if you went to a full-out tariffs on everything in china, china would lose 200 basis points of gdp. that's a lot for a country growing at 6%. there are really no winners going into it. on a relative scale, i guess you can say it's a winner, but if i lost less money than you, i still lost money >> are you surprised i mentioned in the 3:00 hour of this program that we have not seen consensus forecasts for a full year 2019 or 2020 come down materially as the tariff rhetoric has ramped up

is that like going to start tomorrow or are they really going to wait until there are signs in the economy that there is an impact? >> it's a great question, josh it's not just the earnings estimates. if you believe we're going into a full-on trade war around the world, then all the estimates are way off and markets would be substantially more than 4% or 5% from the highs so the market, if you want to call betting on this idea of maybe something out of g20 there's a deferment of tariffs the mexican government has already come in and said let's negotiate on firming up our southern border. so there's a sense that cooler heads will prevail eventually and what they are -- >> so you want to be first are you going to be the first to start taking numbers down? >> we took our numbers down a couple bucks this week we tried to indicate where the risks are, maybe for every 1% -- or 5% of tariffs, it's about 1 dollar this year it won't be $10 next year, it

will be bigger because of some of the side effects. and last thing i'd say on china, very incalcuable because you have things like huawei coming back the other way in a retaliatory way. you see multiples compress on the uncertainty of the earnings. >> the mark seet is not good at handicapping this. the investor mind short sut cutcutt cuts to the fed. they think they know how to muscle around the fed or what the fed's reaction will be to these fears of growth and tightening financial conditions. so i don't think that the market wants the circumstances under which the fed would get easier, but that's sort of the way -- look we know how to play this game. we don't know how to play a multipart trade conflict >> because it's unstructured a lot of it is about optics and politics it's not about economics

look who is meet with the mexican trade delegation pompeo not a trade guy. pence, not quite sure what his strength is. doubt it's the economy so that is not what a trade negotiation typically looks like these aren't technocrats these are like face guys so the market is probably not pricing anything in because they're not sure how to with a political meeting taking place over a trade dispute >> that's a good point lighthizer doesn't have an economics degree either. to mike's point about the fed, would a rate cut take us to new highs? would the market celebrate that? >> again, i'm not 100% sure. if it's because of concerns about the economy, it's doubtful markets are much, much more sensitive to earnings trends if the estimates are -- i'll give you an example. 2020, bottom up consensus estimates up 11% over 2019 we're seeing 5%. >> if we get the insurance cut and the market's response is dow

down 250, you can probably make some sales >> tobias, that -- >> do you think the oil prices expect this trade war getting worse or is it reacting to something else >> they're reflecting more the inventory bills that weren't anticipated in the very recent period initially it was about the trade and maybe global economy isn't so strong but the most recent pullback the last few days is more about inventory builds. the wired paeird part is if ther weakens, that usually is positive for commodities and it hasn't been right this minute. so i'm not sure if that's just where positions were and people are trying to square them away but fundamentally, energy is interesting place for investors to look at >> it's a buy, you say >> i think so. we've got an earnings alert. stitch fix out with numbers. leslie picker tracking that. >> it's a beat on the top and bottom line for stitch fix that stock soaring up 21% in after-hours trading right now. on the bottom line, a surprise profit of 7 cents per share as

analysts were expecting a loss of about 3 cents per share on the revenue side, $409 million for the third quarter versus analysts' estimates of $395 million that analysts were estimating active clients came in at about 3.1 million which was in line with what the street was expecting there. keep in mind as you see the stock just propel higher in the after market this company really sees some big moves in the aftermarket trading following their earnings announcements. both to the up side and down side the previous quarter they saw moves up about 25% in the after hours trading. but we'll be listening in on the conference call to see what was driving such a strong beat on the bottom line. guys >> part of it, 17% growth in active clients to 3.1 million. leslie, thank you. such an interesting name if you look over the past year it's up morthe than 20% they're growing, tapping into e-commerce and personalization they help you figure out what kind of clothes look good on you

and you keep them. they're expanding into the uk. in the past three months it's gotten -- >> nobody exactly knows how much of that marketing is getting traction what's the use er growth look like what's the churn that conflict means 25% of the shares are short so that's partially explaining today's pop. traded as high as 52 at some point since its ipo. here it is more than half that so quarter to quarter, it's always a surprise whatever they -- >> the shorts will tell you it's blue apron and they are a cost of a customer acquisition and the churn rate are the two biggest issues for the shorts. they'll tell you, yeah, they get a lot of people to sign up the first two shipments of clothes and shoes arrive they don't love what they get and send it back and say, this is too much aggravation. the bull case is this is netflix for apparel and whatever the kichk kinks are, they'll figure it out. it's too soon to be on either side solidly

it's a fascinating stock, and it's in a lot of ways, someone is going to be very, very right here it might just be we find out next year. >> someone is going to be very, very wrong as well >> that's right. thanks for joining us for the whole hour and 20 minutes and tobias, great to see you up next, the ceo of u.p.s. explains how the trade fights with china and mexico are impacting the shipping giant's business also inside the arrest of a top auto executive >> the wife of embattled former nissan chair carlos ghosn speaks out exclusively. >> i'd like to speak to my husband. i mean, i miss him dearly. and i wish i could go and be with him at the hardest time of our lives. >> her personal account of the arrests and why she thinks her husband's legal troubles are a corporate conspiracy ahd "osg lleaonclinbe." i'm working to keep the fire going for another 150 years.

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you guys be good i'llshe's gone.ter. it's a dangerous world. ah! [ grunt ] whoo-hoo! pops are your friends going to die? pickles don't be so dramatic. but yes probably. there they are. aww! whaa , whaa, ahh! stocks rallying for a second straight day the dow closed up 200 points, but the energy sector remains the big market loser of the day closing down more than 1%. oil prices lost a few percentage

points down into bear market 20% off the highs. though people we're talk with here today saying it's a supply issue. especially after you got the inventory data that's when we saw it turn lower today. >> absolutely. lots of factors at play. sharp decline since late april another earnings alert on cloudera aditi roy has the details for us >> shares tanking down about 22% right now upon some weak guidance on revenue both for next quarter and the full year let's start with the top, though, revenues coming in at $187.5 million that's a slight beat or slight miss from $188.4 million which the street was expecting eps was a beat the company reporting a loss of 13 cents versus 23 cents seems like shares are moving on the weak revenue guide for q2. that guide came in at 180 to 183 million. that's a big miss there.

also the full-year revenue is also the guide there is light. analysts were looking for $843.7 million. also the company is announcing that the planned retirement of its chief executive officer, tom riley, and the appointment of their chairman of the board to the interim ceo position, his name is martin cole, will definitely look for morcolor on that on the call back to you guys >> aditi, thanks for that. down 22% some very stock specific moves in that sector this earnings quarter. mexico sending its top diplomat to the white house to avoid president trump's new tariff threat. kayla tausche has the latest update for us. >> a meeting between a delegation from the u.s. and mexico is currently under way right now at the roosevelt room at the white house we're expecting it to last about an hour. so it would end around 4:30 p.m. or some time thereafter. the goal of the meeting is to hash through some ideas to figure out how to make the

u.s./mexico border moresecure. the u.s. proposed mexico become what's called a safe third country, meaning that mexico would be required to accept all asylum seekers coming through its country instead of having those migrant comes to america mexico has said it will not do that it's rejected that proposal and called it a red line reuters is reporting that is does plan to bring some ideas of its own. some of those ideas according to reuters, redirecting funds from the merida initiative. a 2008 program with several billion dollars. a joint security cooperation agreement between the u.s. and mexico to stop drug trafficking around the border. we'll see if that's an idea that gains traction mexico has said it would be willing to put more resources, whether that's people or money, behind the border security effort we'll see if that goes anywhere. of course, president trump will need to be briefed on any developments that happen in this meeting. so white house officials are not optimistic about a deal being

reached today in this meeting. but, of course, we'll see what happens when that breaks back to you. >> kayla, thank you. i did sit down exclusively with u.p.s. ceo david abney. we discussed how the recent tariffs to put 5% on all mexican imports into this country would impact his business. >> the one thing that i think is very interesting about this is that we've made a lot of progress with the u.s./mexico/canada trade agreement. and we're very positive about that we do understand that there's this possibility of tariffs. it is a concern to us, of course we're also encouraged, though. there's communications and there's meetings and negotiations going on right now. so at the same time, we are to plan it as a possible scenario, we also believe that there is time for the two governments to reach some agreements, and that

this won't actually kick in. >> still you said you have to plan there's a hypothetical situation that the president laid out that it goes up to 25% on all mexican imports. what's the economic toll in that scenario >> i think that's where the flexibility of our network is going to be so important to our customers. customers depend on us to help them with their ply chains if this is a 5% tariff, that's one thing. and that gets handled in one way, i imagine, by a lot of our customers. this starts to build and get more and more. then you do have to look at alternative sourcing alternative trade lines. so it could have a much bigger effect, but i don't want to jump the gun because i believe that it's to both countries' advantage if we can find a resolution that doesn't involve tariffs. >> well, meantime, the u.s./china relationship has gone the other way. since we last spoke to you, the tariff rates went up on chinese

imports into this country. what have you seen so far? >> our customers are showing more interest in looking at other ways, other trade lanes and other ways to head not only the u.s. market but other markets around the world so we do -- we haven't seen a lot of people actually make changes in their supply chains some are already in the process. the longer this goes, though, it very well could happen and we are encouraging the government on both sides -- the governments on both sides of this issue to find ways to increase trade, to grow trade between the two countries. once tariffs start to kick in and if it changes ply chain patterns, sometimes those are hard to reverse even after a trade agreement is reached >> your competitor is now being investigated by the chinese government is that creating an opportunity for you to swoop in and pick up

business in china? or do you feel threatened by that >> no, i don't feel threatened by that. i believe that -- and i sure don't know all the fights around what's happening with our competitor when it comes to this what it's caused us to do is just make sure that we stay very close with all governments, but in this case, the u.s. government and the chinese government to make sure that we are following all their laws and restrictions we have not diverted any shipments. and we're very careful that we don't. but we also are very careful that we do not deliver shipments to parties that we're not authorized to do from the u.s. government >> do you do business for huawei >> we do and we do it all around the world. and there have been no incidents of us diverting shipments. but there are, for not just them, but other customers, that we have had to return packages because we're not allowed to

deliver to certain addresses >> david abney, the ceo of u.p.s. if you think that chart is ugly, it's gotten hit on trade fears fedex even worse really, for a longer term perspective. but lately, on that sort of odd story that the chinese government is investigating them because they rerouted apparently shipments that were supposed to be from huawei to the u.s. clearly it's something abney and all of corporate america is watching you don't want to be a target if you do a lot of business in china on their investigation >> opaque rationale. u.p.s., the stoxs before the trade stuff, kind novembof in t penalty box just because of the feeling they were having to spend morand compromise their margins in this next day/same day world. >> in general, he is relatively optimistic and including on trade overall but the caveat to that is he

doesn't think the latest threats are going to come in and that is something similar with the market as well. i think there can be surprise if they come in but that aside, for a company so linked to trade, otherwise you kind of -- relatively relaxed about the outlook. >> no panic or not going to anticipate -- >> ceo warns mexican tariffs would be devastating for the economy. nobody wants to be the subject of a mean tweet. >> absolutely. great interview there, sara. up next, stocks rallying again, but we will look at whether tightening financial conditions could stress out the market. we're back in a couple minutes

let's have a look at how we finish the day on wall street. higher for the large cap indices. 0.8% or so of gains for the s&p and dow. close to session highs a basit of a defensive tilt wit the likes of real estate and utilities. top energy the only sector oil prices slipped 3%. nasdaq up 0.6% but the russell was lower. albeit slightly lower. let's check in with mike santoli. final dashboard of the day is -- >> look at financial conditions. this is part of the whole debate

about what the fed will or should do. the goldman conditions index takes into account things like stock prices, credit spreads, volatility in the market when this is going up, financial conditions are getting tighter which means the fed will be more inclined to ease conditions. so some context is really interesting. the fed hiked rates a couple of times in the second half of last year once was right here. and once was right about there so essentially financial conditions can keep going up and getting tighter as the fed says, okay, that's fine. we hear your markets but we have a tightening plan. so the fact we're up here, well below the december peaks in tightness would suggest that maybe it's gotten the fed's attention. they just showed you a willingness to move when conditions were worse. now we know the tone is changed. there's no way they'll wait until it gets up here before they use potentially but it does, i think, suggest there's a ways to go the market has to get to a more

panicky place or the eeconomy probably has to soften up before the bond markets >> the other factor is that the fed just needs to get more panicky and then they can change -- >> proactively -- >> not looking at the goldman sachs financial conditions index. >> they reforefinancial conditions all the time. the job numbers stay where they are. consumer confidence stays where it is. inflation not exactly falling apart. it's steady. it's hard to make the case for a rate cut unless conditions get a lot worse or at least a strong easing bias. >> mike, thank you very much time for a cnbc news update. sue herera has it for us >> here's what's happening at this hour. president trump arriving in ireland on his first visit to the country as president he met with ireland's prime minister he then answered some questions from the media, including his immigration and trade dispute with mexico. >> coming up by the millions

mexico could stop it they have to stop it, otherwise we just won't be able to do business it's a very simple thing and i think they will stop it. they want to do something. they want to make a deal and they send their top people to try and do it we should know something >> an ohio critical care doctor has been arrested and charged with murder in the deaths of 25 hospital patients who authorities say were deliberately given overdoses of painkillers. dr. william husel pleaded not guilty at his arraignment before bail was set at $1 million and beverly hills has become the first american city to end most tobacco sales the ban is set to go into effect in 2021. some 24 tobacco selling merchants will be affected by that new ordinance you're up to date. that's the news update back downtown to you >> sue, thank you very much. still ahead here on the "closing bell" -- beyond meat set to report its first quarterly results as a public company. that's tomorrow.

find out what you can expect from that report coming up after the break, the wife of former nissan chair carlos ghosn says the japanese automaker he led for so many years orchestrated his arrest. >> we know it's a conspiracy nissan did not want this merger. a few people within nissan decided to get rid of my husband. that that was the easiest way not to do the merger >> our full exclusive interview with carole ghosn coming up right after the break.

carlos ghosn, once heralded as a giant of the auto world, credited with saving nissan from bankruptcy through an elaborate turn around plan and leading a global auto alliance with renault and mitsubishi now he's awaiting trial in japan, out on bail offer a series of arrests alleging financial crimes, misuse of corporate funds and understating his income this week, back in the news, renault said it will urge legal action against ghosn in the nerthslands tied to his personal expenses incurred by the auto alliance totalling 11 million euros. last night i interviewed ghosn's

wife, carole, who was unable to speak with him right now under the terms of the bail agreement. so i began by asking her to describe the day he was first arrested >> the day he got arrested, i was with him in the apartment. and it was a horrific day. they stormed in at 5:15 in the morning. 20 prosecutors came into the apartment. and they told carlos, you're arrested and they made him get dressed and, as he was leaving, he tried to take a piece of chocolate to put in his pocket and they wouldn't let him take it and then he wanted to take a book and they said no book, no chocolate. i was outraged why can't he take that he said this is japan. these are our rules. then they took carlos. and i was left four hours in the apartment and there was a moment i wanted to go to the bathroom they made this woman go in to the bathroom with me to watch me. >> with you? >> with me i went in four times she'd do a body check and she

would check me and then i wanted to take a shower i was in my pajamas. she was in there in the shower and even handed me the towel >> why do you think that you were getting this kind of treatment? >> i think they wanted to humiliate us and to -- i guess to intimidate and humiliate us that's what it was all about >> and this is the second time he was arrested? first time goes back to november >> correct carlos gets off the plane in japan. and he goes in to get his visa checked. and then they take him to a room they say something is wrong with your visa. and there was a prosecutor sitting there. and he tells him, you're under arrest he doesn't tell him why. he takes him to the detention centers. no questions asked and they throw him in jail. two days later, the french ambassador comes to visit carlos, and carlos says, please, could you tell nissan to send a lawyer you know, i'm arrested, and he said oh, no, no, nissan are the ones who are accusing you.

and so carlos spent altogether, 130 days in detention. >> what kind of conditions was it >> he had the lights on all the time, day and night. they took his watch away they wanted to disorient him it was kind of an emotional and mental abuse >> did you have any idea that anything like this would happen? >> no. he had no clue he was, you know, betrayed, stabbed in the back, nothing and i wish, you know, if they really felt that there was a problem, why didn't the auditors of nissan go to the board and say something? none of it was hidden. he gets arrested and takes, you know, is taken to the detention center no warning is this how we run a company >> how long do you think that was in the making? >> from what we know now, it started in the spring of 2018. >> just the revolt internally

against his ideas? >> yes and i think they went to the prosecutors and, you know, who knows who else was involved. >> did he ever confide in you over the years about worries about the company's board? >> no, nothing it took him by surprise. it was a total shock and i'm sure this could have been dealt internally. this did not need all this going to, you know, to a detention center and having these criminal charges. this was something that the company could have dealt with. >> what do you mean? >> i mean, i think -- i don't think, now we know it's a conspiracy nissan did not want this merger. a few people within nissan decided to get rid of my husband. that was the easiest way not to do the merger. but, i mean, it didn't have to be -- there was maybe a more civilized way of doing it. >> and now that you see the proposed fiat/renault merger what do you think?

>> now it's clear how nissan doesn't want to be involved, and they want nothing to do with it. i think with time, we'll see more clarity on this story and people now realize that this was a conspiracy against my husband. >> and what do you tell the people who look at some of the allegations, personal use of money through company funds. there's article after article who wonder whether this was a big criminal act from a corporate titan. >> what they did, they took part of the truth and then they twisted it to make it look negative and it's been vicious. and it's not true. and it's shocking how they were able to destroy my husband's image. i think they did it on purpose they said we're going to fight this in the trial and we're going to do this image and destroy his image. and one day, with time, the truth will come out and everyone will see that it's not true. these accusations are all

twisted. this didn't happen this way. >> and you think it all goes back to japan inc? >> i think it all goes back to japan inc. >> and this pushback against nissan renault >> absolutely. they didn't feel they wanted to be part of a french company and to lose their identity and i don't think they were -- from what i understood from my husband, he didn't have the intentions he wanted to keep separate identities and i wish they approached him and told him the truth we don't want this instead of doing this. personally, i'm afraid to go to japan. i will go because my husband's there, but as a tourist or as a businessman, i would be aware. look at my husband a businessman who saved nissan from bankruptcy, who spent 20 years dedicated to this company and made it flourish and help the economy of japan and they arrest him by surprise they don't even question him, and then he spends this much time in a detention center

and we still don't know the end results. we don't know if he's going to get a fair trial >> you've been making this public, including speaking to us what sort of reception have you gotten when you've gone around the world to governments >> people are very supportive of this cause i'd like to see more involvement of the governments because this is not just -- this is political. this is bigger than carlos' story. this is about two governments trying to merge a company and my husband was the collateral damage in this >> you're talking france >> france and japan. but also, i'm an american citizen. i would like president trump as my president to, when he's at the g20, to address these issues with prime minister abe. i would like my husband to get a fair trial and i want them to respect this presumption of innocence which

in japan we feel that as soon as he landed on that japanese soil on november 19th, he was guilty before proven innocent and the third thing, i'd like to speak to my husband. i mean, i miss him dearly. and i wish i could go and be with him at the hardest time of our lives and to take care of him. >> so what does the timeline look like from here? so he faces pretrial >> they said the pretrial has just started, and next year is the trial. and it may take one and two years for all of this to end which sounds so far away and when you're so -- you don't know what the future holds and it doesn't look like it's a positive future. you live with so much anxiety and fear it's hard. >> our thanks to carole ghosn. we did reach out to nissan for a comment on her conspiracy claim. a spokesperson there said the sole cause of this chain of events is the misconduct led by

ghosn. and, guys, couldn't really get into some of the nitty-gritty on the allegations against him which include all sorts of personal details like wedding costs billed to the company because she needs to respect the sort of legal authorities of her husband and the defense team and so she wouldn't comment on the charges. but, you know, the whole -- it's fascinating that this was all just in response to a group inside nissan that didn't want the nissan renault tieup that he, you know, so long had championed and it also puts a spotlight on the criminal justice system in japan. she's facing potentially a 99% conviction rate in this country. >> to mrs. ghosn's conspiracy theory, fiat renault has not necessarily happened yet and one would also say that if nissan's motivation really was to stop nissan and renault deepening,

then why didn't they just get the board to block it? that would seem like an easier way to do that either way, that said, whatever the norms of the japanese judicial system are, hearing that process again from carlos ghosn's wife, it is astonishing. and we're talking over 100 days. no watch no lawyer. lights on the whole time i mean, it's -- >> no contact with family. >> it's astonishing. we wouldn't expect that for whatever the crime we're talking about a financial crime. not accusations of national security threats or of anything further. that treatment to all of us, british or americans seems unacceptable, regardless and it's an awful situation. >> and that's the key issue she's trying to raise, especially healed of g20, which japan is hosting and the leaders meeting going on hasn't gotten much warm reception in france, which she, you know, pins on her conspiracy theory trying to appeal to president trump. has not had any contact yet with the administration

>> so the companies as well as the japanese authorities say, obviously, they're not buying into this idea that it has anything to do with the charges. on the other hand, even if that's the motivation for the charges, perhaps on the merits, they have a case to prove. prosecutors could still prove a case there was malfeasance, even if the motivation for bringing it was to block a deal >> fantastic interview, sara very moving stuff there. moving on -- who needs alexa. an inside look at amazon's ceo's jeff bezos' big by you won't see anywhere else. inngtsd peloton no longer spni i wheels. the latest with regard to going public that's next. i've always been amazed by what's next.

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tell your doctor about all planned medical or dental procedures. eliquis, the number one cardiologist-prescribed blood thinner. ask your doctor if eliquis is what's next for you. welcome back let's check in on two after-hours movers cloudera sinking after second quarter guidance came in light down 27% and stitch fix rocketing after higher than expected profits, up 26%. two huge moves stitch fix ceo katrina lake will be on "squawk alley" tomorrow in a cnbc exclusive interview that's 11:30 a.m. eastern time high end exercise company peloton spinning toward its ipo plans today. leslie picker back at headquarters with the latest >> at least one someone's getting exercise peloton is the latest indication it's still boom time in the ipo cycle. the at-home fitness company has confidentially filed for an ipo. that means peloton will kick off

its question and answer stage with the s.e.c. as it prepares to one day flip its prospective public and start marketing to investors. that all should be revealed in the next few months or so. peloton has raised more than a billion dollars as a raised mor1 billion. the company makes spin bikes and treadmills with large skins that allows users to take classes on demand or live, guys >> know we haven't seen the s1 yet, but presumably there will have to be some mention of the issues they're facing with the publishers. >> litigation wise and peleton has been taking down older videos that used songs from lady gaga, bruno mars, other artists that have been accusing the company of essentially infringing on their copyright rights in order to play their songs in a video format rather than kind of as they go through this litigation, it will be interesting to see if that affects their ability to really, you know, continue to have such

a nice, large content optionality on their platform. >> the other question, i guess, leslie is whether the ipo if it goes ahead and it's successful and they raise lots of cash makes the price of settlement with the music publishers go up? >> right now they're seeking $150 million, if you have an ipo and say it's a $4 billion valuation and no charnge from te latest private round, you may if you were a prosecutor in some kind of trial -- not prosecutor or someone accusing them of these types of allegations, you may seek a higher settlement amount because you know that you have effectively the cash on the balance sheet to pay it. >> amazon may not be putting its second headquarters in new york city and jeff bezos is making a big-ticket move to the big apple. we'll have that story for you next

amazon ceo jeff bezos is reportedly buying three new york city apartments in the same building for a whopping $80 million and robert frank has actually been in one of the units. he join us now with the details. robert >> hi, guys. well, this is the three-story penthouse in downtown manhattan that jeff bezos is buying. he's spending $80 million plus two apartments in the floor below and totaling four floors totaling 12,000 square feet. it is all about private elevator, super thick walls and floors and arched windows and a 5,000 square foot rooftop terrace that has a parapit to

avoid prying eyes. it was originally listed at $74 million. he's getting the penthouse for around $58 million and the other two units for around $28 million. all around, pretty good bachelor pad. guys, back to you. >> and in downtown manhattan love it. flat iron, right >> just for downtown real estate >> what is the need in new york? >> he's got plenty of money. >> i'm sure. >> beyond meat has been embraced by investors since its ipo, but tomorrow thethe burger when beyond meat meets its first burger we'll tell you what to expect next experience the style, craftsmanship and technology

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♪ ♪ economic data and earnings from a red-hot ipo topped tomorrow's watch list. let's start with aditi roy with beyond meat's earnings >> beyond meat shares have skyrocketed since its ipo. its market cap went from 1.5 billion to 6 billion now something that investors are looking about in the first earnings top line revenue growth and full-year guidance and margins are the key metrics as the company scales up, meeting demand is an issue and they want

to see beyond meat's plans for increasing capacity and they'll also be looking for any updates on new partnerships and finally, any comments on the competition. we're talking about tyson, nestle and impossible foods. back to you guys. >> aditi, thank you. >> how do you even handicap expectations, mike, for a stock that's up 300% from the price. >> expectations for the long term are just screaming high right now for the three months that we just went through and probably not even all that relevant this is a stock that trades on average over the past 30 day, 15% of its share flow every day, right? this is a speculative instrument and small investors, people are not used to breaking down earnings and margins and hearing conference call commentary so who knows how this thing trades off the news >> someone is spinning ahead to the markets and we're up 2.6% for the week and it was defensive. >> a little bit. >> we have unemployment claims tomorrow which nobody expects to be a market mover and they've been steadily very good.

after the adp report the bond market is twitchy about any domestic slowdown. >> and jobs friday >> we are expecting unemployment to stay after a 50-year low. the yields didn't do much today so stocks outperform without the bond market getting risk on them. >> as always, thank you very much we're out of time. that does it for closing bell. >> have a good evening "fast money" begins right now. indeed it does "fast money" starts right now live from the nasdaq marketsite in new york's times square in for melissa lee, guy, the expression on his face our traders on the desk are pete najarian, tim seymour, karen finerman and guy adami >> hi, joe >> how are you, my man a potential antitrust apocalypse, i call it is hanging over big tech and one top lawyer has brought his magnetic business cards and he'll tell us the tech giants that's most at risk and first we'll