400% since it's gone public. >> it's quintupled >> that is the non-uber. >> biggest ipo of the last several years. >> and jim cramer said i think something very smart he says many things very smart but he said the deal was not priced correctly >> a lot of scraps on the table. >> thanks for watching "power. >> "closing bell" starts right now. have a nice burger good afternoon welcome to "the closing bell." live from the floor of the new york stock exchange. i'm wilfred frost. we are on pace for the best week for stocks in all of 2019. a perfect week for the dow five days of gains in a row and all for indices higher today 59 minutes left of trade everything you need to know as an investor coming up. and i'm morgan brennan in for sara eisen here's what's driving the action investors anticipating a fed rate cut will come sooner rather than later after this morning's weak jobs report hopes of a potential deal that would avoid tariffs on mexico. and big tech is leadinging the

charge higher. joining us for the hour to break down the market action is barbara duran from bda capital partners good to see you, barbara what do you think of the market action this week i mean, it's almost like bad news is good news. >> it certainly is i mean, you saw coming into the market very oversold beginning of the week for the reasons well known with trade, the uncertainties, the unknowables but i think the catalyst all week long has really been about the prospect of rate cuts. that's really underping the market today of course we had maybe good news on mexico although we've been here just recently with china so i think with the prospect of rate cuts that will provide an underpinning for the market in terms of valuation because stocks now are a little bit more attractive versus bonds. so with the market stepping up to maybe have a little stability over the next few weeks. >> we're not far from the session highs. the dow is up 1.1% 9 out of 11 sectors are higher and it's quite a risk-on sentiment. tech, communications services, and consumer discretionary at the top today. let's bring in all of the

reporters covering every story we've got. bob pisani is look at what's driving the ral plip ylan mui the latest on trade. jane wells watching the stock of the day yet again beyond meat. bob, let's start with you. >> i know we're all obsessed with tech but the dow has moved 1,000 points almost since the tuesday close. that's a real number 1,000 points and it's a result, we have new highs across a fairly broad spectrum of stocks including seven or eight dow components, visa which is often there new high, procter & gamble new high, mcdonald's, american express, walmart, travelers and the insurance group. pretty wide swath. consumer staples are again appearing on new highs this happened a few weeks ago when we were near the old historic highs in the beginning of may so you see pepsi, colgate, ch hershey's, kimberly clark, coca-cola all 52-week highs. some sectors have great news transports which were beaten oun tariff worries all the armz are up. delta's up 7% or 8% this week. oil had a horrible week, was down to 51 look at exxon. up 7%. chevron's lups 8%. guys, back to you.

>> bob, thank you. if mexico tariffs are due to go into effect on monday, ylan mui is in washington with more ylan >> mexico's team arrived at the state department just before 9:00 a.m. for these deadline negotiations and now just about six hours later they are still at it. president trump weighing in while flying home on air force one. he tweeted "there's a good chance for a deal and it would include mexico buying farm and agricultural products. now, that is similar to what trump had looked for in any deal with china, but it is a new wrinkle in these talks which are supposed to be about immigration. the president will arrive back at the white house later on this afternoon, guys. we'll see if he has any more to add then back to you. >> yeah, the lines certainly seem to be blurring. ylan thank you. turning to beyond meat soaring after its first quarterly report jane wells has more at headquarters on what's been beyond performance >> quae, shares closing in on $5 million a share. i'm kidding if you're listening in the car the stock, though, is closing in on nearly 40 times trading this

year's projected revenues. crazy? grocery store owner stu leonard told "squawk alley" that sales are crazy. >> last year we did 25,000 of these burgers, and this year it looks like we'll do 50,000 to 75,000 so what you're seeing in the stock market is the same thing we're seeing on the floor at stu leonard's. >> we've heard from folks concerned about the plant, all natural ingredients like cellulose from bamboo. stu leonard admits even he doesn't understand anything in the ingredient label but customers haven't made it an issue. and beyond meat, what about carcinogens in beef? >> i'm not sure we understand everything driving the stock price but it's up 37% today. jane, as always, thank you very much the market hoping today's weak jobs number will lead to a fed rate cut joining us to discuss, marianne bartles, head of exchange strategy at bank of america merrill lynch global research. long title there michael feroli as well joining us jpmorgan chief u.s. economist. michael, i'll start with you if i may.

take us dwlur take on the jobs number this morning. >> well, it was disappointing of course the headline number coming in well below anyone's expectation. and what's also -- you don't want to get too carried away with one number, but the trend has been slowing and the weakness was broad-based and it wasn't easily attributable to weather or some other special factor it was a disappointment. you had softer wage numbers. so across the board, and coming on the heels of some soft activity data in april, it's not a great signal about the momentum of growth in the economy right now. >> marianne, mike santoli has basically pointed out the fact that we're basically right where we were in january of 2018 on the s&p again. in terms of where you expect to end this year for markets, what is your target >> so our year-end target is 2900 we still think we can have a summer rally up near 3,000 listen, we've gone from tequila hangover to now the fed put is

still in play. the markets feel like a box of chocolates every day and every week it feels like something else is in play with the employment report being a little bit soft in here and we're expecting the economy just based on trade tensions will slow down. but we're not looking for a recession. lower rates are going to support riskier assets when you look at the s&p we recently had the yield at around 2% we still find equities better valued than the bond market. >> michael, overall ranges from the jobs number, what's the trend in the data, in the u.s. been of late where do you stand on how effective rate cuts will be in kickstarting the economy this late in the cycle and with the kind of room the fed does have to cut >> right so right now we're tracking second quarter growth around 1%. that's after around 3% in the first quarter. so first half as an average we're look at about 2%

which isn't great but it's not terrible either. now, that said, some of the forward-looking indicators like we saw earlier this week, some of the manufacturing surveys in particular, are sending messages that things may be slowing from here and then we obviously have the concerns related to trade that has so far been weighing on capital spending now, the worry is that that weakness we're seeing in business investment spending may start to morph into weakness in hiring and then you really have to question the durability of consumer spending, which has really been the locomotive behind this expansion. so that's kind of where we stand right now. we're in a place where business looks more cautious and we'r hoping that doesn't spill into hiring but this morning doesn't, you know, give us a lot of comfort in that regard >> barbara, it's pretty amazing when you look at what's performed the best sectorwise in the s&p so far this week, it's materials and tech stocks, semiconductor stocks what do you make of this >> i think number one, they're basically oversold and i think that people are looking to put money to work

somewhere. a little nervous on the fang names because of the yore hang regulatory but i think those will resume. i really think it's putting money to work. the risk-reward has gotten very attractive not because they're making a call and the economy's going to suddenly perk up in a major way. >> sorry i was going to say mary ann, where should we be putting money to work? >> so when you -- even though we have a softening in the numbers for gdp growth, we're still seeing economic growth we still like the cyclicals. we still like technology i would agree, semis would be a prime space to start looking they were great at calling the bottom back in january i think they're going to be early bottomers. we also like the cyclicals in the area of industrials and consumer discretionary so even though things from day to day seem to have a lot of volatility, we still think there's great opportunity within the market >> guys, we'll leave it there.

thank you both, mary ann and michael. we've got a news alert on at&t julia boorstin's got the details for us hi, julia. >> hi, wilf. at&t and dish shares both moving higher on headlines that these two companies are open to combining their satellite tv businesses though the report says the companies are not in active talks we see at&t shares up about 1 1/2% dish shares up some 3% this comes after yesterday ubs put out a note speculating that at&t might spin off its directv unit and that dish would fit well as a buyer. "barron's" writing a piece saying at&t should sell directv to dish and that regulators might say yes this time. we reach out to both companies from comment and are waiting to hear back. over to you. >> julia, thanks very much for that dish higher by 3 1/2%. at&t about a percent or so bob, what's your take on this? a little bit more of chopping and changing the assets. do you think that makes sense? >> well, i think at&t is trying to rationalize some of its

assets and i think given the changing landscape everybody's trying to figure out the next -- where they should be in five, ten years. so whatever their strategic plan is in doing this, and i don't know it well, but i think that' clearly what's going on. we're going to see more announcements from more companies selling this in order to position themselves as best they can see into the future >> so much more still to come on the "closing bell. new york stock exchange president stacey cunningham squloin us to discuss the wave of recent ipos and whether that momentum will continue >> and speak of recent ipos, is beyond meat getting ahead of itself after its meteoric rise we'll take a listen at recent cult stocks that saw huge pops and we're there now. is this ride safe? i assembled it myself last night. i think i did an ok job. just ok?

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to fall further. might be about the bond market we'll get into that. under the hood a little glimpse beneath the surface of the indexes today and then price the pivot so a little best a fed conversation in the next hour. but round-trip rally look at the s&p 500. i keep coming back to this 18-month look at the s&p we've mostly been rangebound within this. look at the level we're at right now. it's all kinds of fun that we are exactly where we closed on january 26th of 2018 so what has happened in the interim? we've chopped a lot around this is a very severe correction and of course was also a pretty good buying opportunity, pretty climactic low. here's another interesting aspect of this pattern, guys is the low that we have at least setting up right now, that we got to just late last month, was just about where we bottomed also in march. so maybe this is a little bit of a trading range to ping-pong around maybe we're going to make a run at a new high. but it does show you that within this long-term range we're kind of spending a little more time

in the upper end of it i would say that's a net positive but also we have not made a whole lot of progress of course. bond yields have whipped around. fed expectations are whipped around so far market making a good showing but hasn't proven quite everything just yet. >> aside from that outstanding flat straight line you drew, that's the best yet. good improvement from drawing earlier in the week. for the market to break higher, if it gets ahead of the recent highs then a pretty bullish signal based on that range we're unable to break out of in the moment >> it's a bullish signal, wilf, except look for the last couple times we did break out abought 2900 we spent almost no time in that area even though you managed to do two separate highs separated by months. this one was almost there. so it's a confusing structure to the chart to say that we had not seeneager buyers up toward tha 3,000 level on the s&p could it change this time? sure you never know

this could be the kind of fed turn as well as just having time pass in this rangebound fashion to get the wherewithal to get above there. but right now we've recovered about 2/3 of the losses from may. so we'll see if it can carry on beyond there >> mike santoli, thank you beyond meat surging today and now up more than 400% from its may 2nd ipo price. red hot ipos that saw meteoric rises and how they eventually came back down to earth. tilray shot up more than 1600% before topping in 2018 it's down 87% from those highs gopro gained 310% from its 2014 ipo to its high but has -- >> 2014. >> yeah. >> so long ago >> you're making me feel old that has fallen 94% from those levels so i guess it's not a long time when you think about how far it's fallen. fitbit jumped 159% from its 2015 ipo to the top before falling

more than 90% to its current price. so here's the key question will beyond meat follow a similar pattern? well, let's bring in nick colis from datatrack research to break this down. i'm going to put that very question right to you, nick. could we see a similar pattern with beyond meat >> yeah, absolutely. because it follows a lot of the same basic paradigms of classic story stocks you have a very interesting story with a good management team and a recent ipo. so there's not a lot of shares outstanding. and you see a very quick ramp in the stock price but eventually other market dynamics take over and it does fall back to earth this feels a lot like the examples you outlined. >> why isn't it like an amazon or a netflix which are have continued higher, of course? >> it could very well. but let's not forget amazon, which is a great example, certainly had its share of tough times during the dotcom bubble and it stood the test of time. this could be one of those cases. the other examples weren't, but we just don't know yet in the interim you're paying a

very heavy-duty multiple on revenues just to find out if that's the case. >> nick, i guess i'd argue the key difference between the two is whether they sustain very impressive top line growth the earnings don't necessarily have to fall through immediately. but earnings growth has to quickly follow behind the hope so beyond meat could deliver that >> you raise the right point for now we're still in venture capital kind of valuation land you've got an $8 billion market cap. you want to pay ten times revenue. you've got to have beyond meat hit 800 million in refunds which seems possible even though it's only got $40 million today. we'll see if it can be profitable but that doesn't seem to be exactly the most important issue for investors right now either on the venture side or the public market side you're right, it really is that revenue growth the earnings, maybe yes, maybe no >> i wonder, nick, how much is the fact that beyond meat is still a pretty young company still very much coming into its own whereas on the flip side you could have said before the ipo that maybe uber would also be a

cult stock yet that has not performed so well. >> yeah, it's a great point. these smaller-type ipos are definitely doing better. zoom's another good example, obviously. here's a case study in why going public is actually good. the company today, beyond meat, said going public has actually enhanced their profile with potential customers. and it really did give their confidence in future revenue growth a big bounce. it went public earlier and it's getting that bounce. companies that wait to go public don't seem to get any of that same bounce. >> bob, what's your take on beyond meat? have you bought any of it? >> i actually bought it last week and sold it before the earnings it would have been nice to stay on today i was like oh, no. it's interesting what makes a cult stock the list we went through before are pretty much one-trick ponies and this one, the ultimate cult stock in my mind is tesla because a cult stock is really about a stock that no matter what the fundamentals are keeps going higher that takes some time to earn that reputation. this, we'll see how it works

out, but what they -- there's a huge sector opportunity here right? they're obviously early but they're small. but we know what's happening in terms of the millennials driving much healthier eating, vegan, now people argue this may not be exactly healthy eating, and there's lots of competition coming in. but they've got a huge growth ahead of them for some time to come now, at 8 billion i think they're going to have to go into that we'll see after this initial run, you're going to see a lot of volatility. so i would not buy it here but i'm certainly keeping a close eye because i think they have a lot of growth to come >> nick, to what extent has the share price also benefited that they're the only pure play way of getting exposure to this theme? >> yeah, it's a great point. the answer is a lot. we saw exactly the same dynamic in the late 1990s when the dotcom bubble began to take off. the reason that thing worked the way it did from '97 to '98 was the scarety of supply of interesting stories in the internet 1.0 space once we got a lot more of those in '99 the bubble eventually fell apart but that scarcity factor very

important. >> nick colis, thank you i'd also just note tesla even though it's having a rough year, it's still up more than 1,000% since its ipo. well, we've got about 40 minutes until the closing bell and right now the dow is up 285 points for five straight days of gains. we're on pace for our best week of the year in 2019 for the markets. straight ahead the nasdaq pacing for its best week of the year as well but concerns remain over tech regulation and trade fallout blackberry ceo john chen joins us to weigh in coming up >> and also coming up chipotle warning the mexico tariffs could impact its bottom line one firm just put out a bullish note on the stock. we'll tell you why right after the break.

welcome back to "the closing bell." time to get to the word on the street applied materials with an initial rating and $40 price target the firm says the company is a market leader but there is near-term uncertainty in the semi space to say the least. >> how did you just describe them the delicious intersection of technology and manufacturing >> yes so they make all of that equipment and supply a lot of those base materials technology, machines et cetera for semiconductor manufacturing. so they're an early read on the index. >> that description i feel like nomura going neutral is probably

a bit disappointing to you given the embrace of that stock. anyway, on to the next one stifel upgrading squhumbelum wer to buy from hold and bear labeling chipotle a fresh pick calling it an attractive stock for investors with near and long-term horizons bear does an outperform rating for the stock and seize top line momentum in the second quarter, up 2.7%. on that note the last one chipotle clearly positive fundamentals but they didn't really upgrate numbers they were just making a call based on the share price pullback of late >> which i think is totally a respectable thing to do because they obviously see much longer-term returns from this and given the stock that's pulled back it's an interesting entry point. so it's probably a good call >> plus interesting given the fact you have these looming mexico tariffs on things like avocado. you've seen some pork prices increase too due to the virus in china. >> swine flu >> do you like chipotle as a

restaurant stock or the space more broadly >> not more broadly. i think you have to really cherry-pick and go after the ones that have competitive advantage like chipotle was a big turnaround story just a couple years ago, we had to live through that i think you just have to pick the ones that really are gaining share in their space and also have a way of proprietary prodding chipotle was very early in that space. >> we have 34 minutes left of trade and the dow is higher by 308 points over 1% there for all of the three major indices. nasdaq's at 1.8. russell up 0.9%. it's the laggard today the laggard port week. but for the week as a whole we're up 4% for most of those indices. still ahead will tariffs take a bite out of its bottom line? we'll heat to the company's annual meeting to find out plus revolve soaring on its first day of trade here at the new york stock exchange. we will speak with the nyse president stacey cunningham about the recent surge of ipos right after a break. puppy school is in session.

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rate cut will come sooner rather than later after this morning's weak jobs report there's also hopes of a potential deal that would avoid tariffs on mexico. and big tech is leading the charge we are up 309 points on the dow. >> time now for a cnbc news update with sue herera hey, sue >> hello, morgan hello, everyone. here's what's happening at this hour an ohio doctor charged with murdering 25 points is out of jail after posting a $1 million bond he's accused of ordering lethal doses of the painkiller fentanyl to sick patients who were near death. marijuana use among baby boomers has risen tenfold in the last decade. according to a new university of colorado study, 3.7% of adults over age 65 say they've used cannabis in the last year, mostly to treat aches and pains. nearly two dozen campers are safe after being rescued from rising waters along the buffalo river in arkansas this morning luckily, nobody was injured. and nike is embracing

curves the athletic brand has redesigned its flagship store in london to include plus-size mannequins and has also begun selling extended sizes at that location you're up to date. that's the news update, guys i'll send it back downtown to you. >> okay, sue, thanks very much we'll see you next hour. meantime, let's send it over to mike santoli for his second market dashboard mike >> well, if we're asking if treasury yields, the ten-year yield, is too low to fall further, now that that yield is right back just hovering above the 2% level, take a look at the five-year chart of the 10-year treasury yield the 2% level starts to become very interesting we've seen some work on this today by some technical analysts looking at yields because right here it's where the yield bottomed that was basically september 1st of 2017. what happened around that time, inflation readings started to pick up really for the first time in this cycle you had the fed detail its plans to start reducing its balance sheet. and the markets started to gain confidence there was going to be

a tax cut bill and so stimulus was on the way so you had this huge move to those multiyear highs around 3.25 now we're back down. also this very, very, very steep drop in yields since late last year is relatively rapid and usually there's at least some kind of a bounce attempt. so i do think it's very interesting to look at this level right here now that everybody seems to be on board with the rate cutting story, the yield curve compression and all the rest of it so 2% could be interesting make or break for treasury yields >> it's also not just the job numbers here it's that dovishness from the ecb. the german 10-year negative, 0.26 as well >> it's all falling into place as a matter of fact, another piece of that is the value of the dollar coming off of its highs. it reduces hedging costs for non-u.s. investors to buy raeshzies. the reason that spread between german yields and u.s. yields has been as wide as it is is because that's the cost to hedge out the currency so if that comes down, you'd

think it creates more buying interest in treasuries but we just don't know how much that has played out to date at this point >> okay, mike, thanks very much for that revolve, meantime, making its debut at the new york stock exchange the online clothing retailer up more than 100% on its first day of trade new york stock exchange president stacey cunningham joins us now for an exclusiven't view stacey, great to see you thanks for joining us. >> great to see you. >> congratulations on a successful ipo today 100% plus. you must be delighted. >> i think investors are really delighted about a lot of the companies coming to market and revolve is a great example of that. when you look at the companies, especially the ones that are a little bit smaller and earlier in their life cycle, it had great performance since they've come on average across the board. tech ipos are up roughly 30% we have a few examples of companies like revolve and pager duty up 100% from where they're priced >> i'm glad you brought that up because when you see what's performed the best in the market it is these companies that are

earlier on and only a couple years old versus a decade old or a decade plus. like an uber, for example. do you think this is going to push more private companies to go public sooner >> i certainly hope so and i'll tell you why. if you take a step back and think about who gets the opportunity of sharing in that success it's the everyday investor when you're in the public markets. and it's a more limited environmentalist base when you're in the private markets. i think it's really important that we encourage companies to come out to markets earlier in their life cycle so when they have that steep growth trend others get to share in that growth because i think it's a contributing factor if the most dynamic opportunities aren't available to everybody >> but i mean, i can understand the rationale for that argument. but why would uber care abou that surely uber would be pleased that they got as rich a price as they could for their last big fundraise. >> certainly you hear a lot about social purpose of ceos and organizations. and i think there is a growing focus on wanting to contribute to society and making sure that you're offering opportunities to investors.

i think it's something private companies can do to make sure they're giving back to the overall nation >> do you think we'll see more examples of direct listings? spotify last year. slack later this month >> i think that was a really interesting deal when spotify -- or non-deal, when spotify decided to approach the markets in a unique way. they didn't need to raise money. they didn't need to raise money right then is even their point but you know, they wanted to become public. they saw the value of being a public company and offering liquidity to their employees and early investors. so now slack is following suit we'll see that this month. i do think when i go out and talk to companies and i have conversations with ceos they ask a lot of questions about it. i don't think it's going to be the norm but there's certainly interest in whether or not this is an avenue that might be appropriate for specific companies. >> go ahead. >> i was going to say, do you think we will look back on 2019 and all the ipos that have been in the pipeline and companies that have gone public this year as the peak for this cycle or do you think there's more to come

>> there's still a lot of interesting companies out there. so i don't think this is going to be the end of companies coming into market frankly the narrative has changed. when i go talk to them and hear what they're thinking about, there are many more that are looking to pursue public offerings than i've heard over the past couple years. >> bob, do you think all these ipos perhaps marks a bit of a peak for stock markets >> sometimes it can. i don't think it's necessarily the case here. and i think stacey's right we're going see a long cycle of ipos that will be dependent somewhat on the market but you just look at a.i. and the companies that are going to be created the next 10, 15, 20 years. there's going to be a lot to happen that's why i'm curious if most of the ones you're hearing about are technology-based >> a mix and one of the areas i find really interesting and we're focused on particularly is biotech space. because there are a lot of companies that are doing really interesting and innovative things in that space and they need money so we launched an initiative to make it easier for biotech companies to be able to become public on the new york stock exchange where they're in their

growth cycle and it gives them a bit of an on-ramp so they can get into the public markets and then focus on that later >> these ones have already done phase 3, they're past that or are you seeing even earlier stage? >> it's past that, but they're ready to come public traditionally the new york stock exchange hasn't actually focused a lot on having an offering that really fits the biotech community. and so that's where we pivoted and we're excited about that >> is peloton going to the nasdaq >> you know i'm never going to answer about any particular company. >> we tried. in the break we tried on air. >> keep trying and i'll keep denying it >> but we will leave it there. stacey, great to see you as always thanks so much >> thanks for having us. >> walmart ceo weighing in on the impact of tariffs. we'll hear whether you can expect to pay more at the store coming up. >> and later we'll ask blackberry ceo john chen if he thinks big tech should be broken up more "closing bell" after this break.

let's head over to the cme and rick santelli for the bond report hey, rick. >> hi. mandy -- morgan. it is amazing the one-week

10-year note chart not only do we have a double bottom at 2.06 many technicians are looking at retracements 2.07's low close and that is technically significant pf we've down four on the day, four on the week the dow index in one week it's lost over a penny. consider that the first day of that chart we're over 98 now we're basically right above 96 1/2 it's been a big drop when was the last time the dollar index was here? right around the 25th of march as you see on that dollar index chart. whether it's demand for treasuries keeping yields down and fed coming into the picture potentially keeping the dollar down, boy, these are huge moves. wilf, morgan, back to you. >> thank you very much for that big news meantime, coming out of walmart's annual meeting today, courtney reagan is there with more for us. hey, court >> hi, wilf. it's been a very big week in northwest arkansas and walmart ceo doug mcmillan ending the week by taking questions from media. i asked him what is the tariff percentage level on imported

products from mexico, fresh produce, things like tomatoes and avocados, that walmart would face that would force its hand in raising prices on fresh produce. and doug mcmillan said, "we don't want to have to have prices go up on those fresh items for customers. we're going to resist it as long as we can. >> if the customer's particularly focused on avocado prices, we're going to try to hold those prices just as long as we can and adjust somewhere else so we'll just manage that mix day to day the merchants are very capable of making real-time decisions to try and mitigate that. where we can change sourcing, whether it's mexico or china or other countries, we will if we can. but where we can't we'll have to deal with it or find some place to cut costs in the short term so we don't have to. >> mcmillon also talked a little about the company's move into the advertising business said that there's a lot to consider but they're going to make sure that they value

privacy practices. and they'll even sacrifice growth and profitability if they have to do so. back over to you >> court, is that taking the hit from the tariffs tactic something you've seen across the space or is it just walmart with its scale and size that's able to take that on? >> i think if you have a retailer like a walmart or like a target, we've heard brian cornell talk about this too, they have a lot of different categories, sought phrase they use is they have a lot of different levers that they can pull so if prices go higher in any one area because of tariffs or because of smelgs then they can look to other categories to help offset it. so if there's a product category that customers are very sensitive to, so in this case we're talking about something lievgdos or tomatoes, something that you know the rice of because you buy it often, maybe that's not the place to raise prices even if your costs are higher maybe you use another category to do so so if you are a retailer like walmart that has a lot of

different categories, these are the strategies that retailers are looking at deploying when they can, at least in the short term as part of the mitigation plans. >> courtney reagan, thank you very much. fedex meantime cutting ties with amazon and morgan brennan has that story for us. >> oh, i do have that story. fedex cutting some ties with amazon key note here, some. delivery giant saying it has "made the strategic decision to not renew the fedex express domestic contract with amazon as it focused on serving broader e-commerce market. you just heard court talking about walmart and target those are two key targets for fedex when you talk about the broader commerce market. it means fedex won't be making decisions through the use of its planes, its air services here in the u.s. but that other existing contracts with the e-commerce behemoth through its business unit's international services, those are going to continue. so fedex reiterating that amazon represented less than 1.3% of

fedex's overall revenue last year and for its part amazon also telling cnbc, "we respect fedex's decision and thank them for their role serving amazon customers over the years." one of the things i think sometimes gets missed in this story about delivery wars and package -- the package dynamics, wilf, is the fact that for many of these big carriers amazon is actually a very low margin business they have all that scale they've been able to drive really rock solid contracts for themselves so in the case of fedex the fact that they have expanded business and made all of these investments and they're focusing on all these other e-commerce opportunities i think really speaks to the fact that they are in a position to make a decision like this. >> not just low margin i was amazed how low as a total percentage of revenue -- only 1.5% that's tiny. >> some of the other carriers have more exposure analysts have put ups's

exposure they haven't come out with their specific number but they put their exposure at more like maybe 6% or 7% or some of the numbers, estimates i've seen out there. speaking to the fact that while amazon is a big player in the market they're not the only player on the market also i would keep an eye on other players like atlas or atsg which do operate and lease out planes for prime air amazon has relationships with them i think they're even stakeholders i'll have to double-check that in those names what will this do for demand for their air services >> likes of ups and fedex been affected by trade, abuying opportunity for them do you like those sorts of stocks >> i haven't been looking at them just because of the trade fedex has had its own separate issues but in general, i mean, the category is interesting as you we know what's happening in e-commerce and the long-term play i think fedex with amazon, for instance, that was just pricing, they could not agree on pricing. i think that's what really happened because she still are doing other services but no, i haven't looked at them closely right now just because

there's been some other fundamental factors that have to play out that i don't think have been that -- that are key in the tariff story >> one to watch. up next, we've got your last chance trade as the markets close out their best week of the year >> and as we head to break, here are the leaders in the s&p 500 for the week as a whole. some big gains there all double digit 'rba ia upicro up 18%. wee ckn cole minutes [leaf blower] you should be mad at leaf blowers. [beep] you should be mad your neighbor always wants to hang out. and you should be mad your smart fridge is unnecessarily complicated. but you're not mad, because you have e*trade which isn't complicated. their tools make trading quicker and simpler. so you can take on the markets with confidence.

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it is great, gidget. everything is grand. [ meow ] [ purring ] [ growl ] are you finished? [ cooing ] that was weird. oh sister it's gonna get way weirder. 10 minutes to the close. it is time now for "last chance trade. barbara, what are you watching >> mastercard. mastercard is a name i've owned for some time. in addition to visa, by the way. but mastercard has such a long-term rate secular growth play it's a play on the switch from cash processing payments to electronic in fact, just about two years ago we finally are seeing more in the electronic space. and one of the examples, e-commerce every time you order something online you're using a credit card mastercard or visa or american

express or something else. and this is a great management team their execution's been superb. greet balance sheet. they're gaining share. their earnings are higher than visa i mean, there is not much to dislike about this name. >> how long have you held it and what's your sort of price -- we're looking at a one-year chart there. it's done pretty well. 30% or so. >> i've owned the company for about five years and it continues we just look at the chart. it just continues straight up with some volatility like any stock. when you ask price target, that's really a year out but you're really looking five, ten years out where i think the market -- the stock will continue to outperform the market it's a stock that you can buy it here, you can wait for a little bit of a pullback but it never really pulls back that much. it's done very well in this type of market. >> that's your last chance trade. you've got 8 1/2 minutes left to place it if you want to do so today. up next we'll be covering all of the angles of the market in our closing countdown. >> and as we head to break, here are some winners and losers in the dow. "closing bell" is back right after this

you should be mad that this is your daily commute. you should be mad at people who forget they're in public. and you should be mad at simple things that are unnecessarily complicated. but you're not mad, because you're trading with e*trade, which isn't complicated. their app makes trading quick and simple so you can strike when the time is right. don't get mad, get e*trade and start trading today. welcome back five minutes, 5 1/2 minutes, in fact, left of trade. we're up 245 points on the dow let's get to the closing countdown beginning with trade

to close shawn, thanks for joining us you're buying some oil names is that right? >> i'm sorry can you say it one more time real quick >> you're buying some oil names. >> we've seen a little bit of stabilization in the price of oil this week. it's after quite a few weeks of getting beat down and that was affecting a lot of names in the energy patch what we've seen out of td amer he traid clients is they prefer to go into the diversified oil majors and we see names like exxonmobil or chevron being bought those are names to look at the one thing i'll say is both of these names are bumping up against what has been preeflsly well established resistance levels on the up side and typically to make a meaningful break above that you need to change the outlook you maybe need to look at other names. still diversified oil majors that aren't at the higher end of some of those valuation ranges they've traded at over the past couple of months >> and the jobs number has helped spur the market higher today. does that make sense to you and what's the best sectors and stocks to play that? >> one thing i think i took out of this jobs report is i'm very

interested in the retail sales number next week and the reason is we've had a drop in the retail trade component of the jobs report but we've seen that the past two reports. nothing new there. what did stand out to me is transportation or warehousing had a little bit of a drop and that is something that i tied to what's going on with the move toechlt commerce because when i think of transportation or warehousing i think of fulfillment central. a drop in there means this wasn't a shift from brick and mort tore e xhert. maybe there is going to be more weakness in retail sales next week keep an eye on that. also consumer sentiment. i think it will be interesting to see how the uptick in a lot of these global trade disputes is going to start impacting the consumer outlook >> yeah, shawn, quickly, the fact we are going into a weekend and what we've seen in weeks past is tweets that have moved the markets and brought a lot of financial news and implications recently, how should investors be positioned? >> i'd be a little cautious going into the weekend even though we are off of highs i get the sense that the market is expecting some sort of an improvement in the u.s.-mexico trade discussions.

a tweeted coming out late sunday saying we're not going to impose these tariffs tomorrow if you don't get you that might have a little bit of a lower opening coming into monday >> okay, shawn thanks very much for joining us >> let's send it over to mike santoli. >> look at the advance hiech decline breakdown for the new york stock exchange. i would say it's solid but not stellar in terms of the breadth. you have about 3-1 advancers to decliners. if you look at new highs and new lows, 52-week highs, 52-week lows, that's starting to expand the new high list which is a positive we've hovered around 1% in terms of the major indexes in terms of the gain on the day. it's not really a buying stampede just a marking up of the index not bad. lost a little altitude lately. we'll see what it means in terms of carrying through. we're not going to it looks like close on the highs the vix, though, is an interesting little -- maybe a stray indicator today.

it's been a little surprising the volatility index is up on the day. usually when you have a friday it's a little bit of a drag on the vix because you have two dates market's closed. also this big rally today. normally this will move inversely. the vix is down 2 1/2 points this week as the market has gone up but the fact it's been kind of steady here in the 16 range shows you traders are not willing to accept the idea that the rest of june is going to be really clear sailing and calm. i think it's the headline risk you have the fed meeting, you have the g20, all the rest of it it's something worth watching, though, because it's a little bit of a counterindicator to otherwise a pretty solid rally that's what's going on at the new york pb let's get up to the nasdaq with bertha >> it's a remarkable ending, take a look at biotech the strongest today. pretty good week ghaith nace tailwind from the convention at the beginning of the week. apple and chips though were really part of the big story here in terms of the turnaround for the nasdaq both breaking four-week losing streaks and apple having its

best week since 2018 in august but microsoft is a story i really want to focus on here mierkts at an all-time high today. and not only that its market cap above $1 trillion. that is a huge story over the last five years under satya nadela especially when you think before that it couldn't get above 30 bucks. >> and of course bertha ending a remarkable week at the nyse as well the dow has moved 1,000 points since the close on monday. that's about 4%. best week for the dow all year, best week for the s&p 500. mike mentioned expansion of new highs, but it's been the trade-related names that have been hit the most. semiconductors had a huge move overall this week. we see big moves in that group we've seen big moves in material stocks this week, du pont, eastman chemical, martin mar yeta, freeport mcmoran all strong delta which trades here up 7% for the week overall

thesa, procter & gamble, mcdonald's, american-x walmart, travelers, all signature at 52-week highs and a whole bunch of those consumer names also as well there's the "closing bell. the dow jones industrial average ending up 267 points again, close to 1,000-point gains in the dow for the week. all on a lot of hope hopes on the fed, hopes on mexico and china tariffs if you're just joining us, good afternoon and welcome to "the closing bell. i'm wilfred frost. >> and i'm morgan bren nn for sara eisen along with mike santoli cnbc senior markets commentator. let's take a look at how equities finish the day on wall street the dow finishing up 261 points. so off the highs but still up 1% just under 26,000. 25,982 is your level there

the s&p up, 2873 the nasdaq up 1.6% and the russell 2000 also higher although still the laggard of the day. >> risk-on tone to the sector performance. technology, consumer discretionary and communication services the top-performing sectors. did get two sectors in the red which wasn't the case earlier in trade. utilities down and financials down slightly. but for the week as a whole all sectors higher and we're looking at the s&p 500 up 4.4% for the week >> best week for markets for 2019 joining us to talk about the morkt day barbara doran from bd8 capital partners chief market strategist at jefferies. and mark standee chief economist at moody's good afternoon to you both mike santoli, we'll start with you. >> it seems like the market got what it believed it wants from the jobs number this morning, which was lower than expected job growth but not completely saying that for sure the economy is deteriorating in a rapid way.

it sort of ratifies this idea that had been building through the week that the fed is probably going to be cutting rates in coming months whether true or not i think it sort of keeps that story on course and also i think just allowed further pessimism to get burned off because we had built a lot of it coming into this week and i think you have a pretty good, up 4% week for the major indexes. that's not bad it's more than half your loss in may. i will say the character of the rally today did kind of peter out a little bit it was a nice 1% move but it wasn't exactly like people said, this is it, this is the big difference, we closed right at that january 2018 high it's amazing >> david zervos, the hair's looking lovely and long. how confident are you are you going to keep it for the whole year for those who don't now, david has promised us he'd cut his hair if we get a rate cut. >> it was a little bit of a protest toward the end of the year as sara kept pushing me but at the end of last year. but yeah, the odds drechbtly increasing i think you opened up with a nice -- you described it nicely

in the opening and the way i would add to that is this is a soft landing. it just feels like a soft landing. everything we got in the data is a soft landing and it's a fed that is very likely to accommodate correctly a soft landing i think what we've all been scared about is a fed that does something a little incorrect what happened q4 of qulaefrt maybe they were going to go too far beyond neutral maybe they were going to fight phantom inflation that really obviously isn't there. that's all off the table now it looks like rate cuts are easier to get if there's any sort of pullback, any economic weakness, any trade-related stories that get us twisted up a bit. the market's applauding that the market's basically embracing the soft landing story it's probably a story that hasn't been a focus for a lot of people a lot of people calling recession, recession, recession, massive rate cuts. you had a lot of others saying no, they're going to have to hike rates, inflation's coming it's sort of this middle

scenario that was a pretty unpopulated place that seems to be the one that's forming for 2019 >> mark zandy, if the markets rally in large part due to this expectation that the fed is going to get more dovish and could potentially now start cutting rates, at what point does it actually become bad news for investors? >> i think it depends on the president. it depends on whether the president decides to escalate his trade war or stand down or pull away from it. it's on a razor's edge this will not be a soft landing. the president decides to raise tariffs at least to the degree that he's threatened to raise tariffs, that's the fodder for an economic recession. but if he figures out a way to come to some face-saving arrangement with china and step away from the tariffs on mexico, then i think the economy will be fine, may even come back it really does depend on the president and what he decides to do here in the next few days, few weeks. >> bob, on the topic of fed rate cuts, do you think the market, the equity market needs to see

one as soon as june or is it as long as the tone's suggestive that one could come later this year, is that enough >> i think it's more going to be the tone in june if the fed indicates they change a word or two to say they're very aware of what's going on and that's likely to happen, then who knows you see the probabilities of a rate cut going up massively by early fall so whether it's june or july, as long as the fed is making it clear. but i think the real issue is still trade. and it's not just china. and i think there are such serious risks still out there, if we have a full-blown trade war because you saw the imf this week cut off half a percentage point of world gdp growth if this goes through. and the mexico thing, whatever happens there i think the damage has already been done, that this president will use trade as a political weapon and you've got so many managements -- we've already seen business come off of it but i think it could get even worse because if i was a manager and i had hundreds of factories in dozens of different countries i

don't know which country's going to get hit next and i'm going to wait and see what happens with the next election. i mean, it's a very difficult time and uncertainty as we know means you hesitate and you don't act and this we know can have a cascading effect in terms of we don't hire, we don't do this, and this won't show up this quarter or next but it could be an issue in the not so distant future >> it's easy to get overprecise about what really matters but if you're trying to figure out how the trade situation plays against the fed expectations it is kind of interesting because right now the market's acting like mexico's not going to really be imposed or last very long it seems to me. so if you do get progress or a thaw with china, what does that mean i think the fed would prefer to sort of signal it might do something, not have to do it for a while but we'll see. >> mike, on the topic of which has moved markets this week we sautd here last friday on a big day of selling because of the fresh surprise threat to tariffs on mexico. you said if they don't arrive we'd be higher do you think then we'd be this much higher this week? >> i definitely didn't have a sense of whether it would be

this much higher and by the way, the market started to run just because it was so oversold even before we got a sense that maybe mexico was going to come to some kind of a deal. but i don't think it's unusual for the market to bounce this hard given how negatively people were leaning at this point i think the next few percent is the harder few percent than the ones we just got >> on the topic of potential tariffs let's hear what investor druckermiller told "squawk" today. >> animal spirits is something you can't measure but confidence matters. the journal had a great piece on this tuesday morning you do wonder whether this is enough to kill animal spirits. supply chains all over the world have been sort of twisted around people are wondering then we've got mexico. that one came out of nowhere so there's a lot of uncertainty. and i'd love to sit here and tell you i have a crystal ball but i just -- i don't know >> mike, i feel like it's been a

while since we talked about animal spirits >> yeah. that was such a theme, right in 2017. and it makes sense and i think it's exactly what barbara was talking about. we just sort of don't know if businesses and investors will take this as an excuse or as a prompt to say, you know, let's just do a little bit less and kind of try to ride it out it's very difficult as you said to quantify that >> david, could trade make your view go from hard landing to soft landing >> i think the answer is no as long as the fed is in some sort of insurance mode, either insurance guidance or insurance action we'll learn whether they decide on insurance guidance and tell us hey, if things get messy we're here or if they actually want to go up front and take out insurance. it didn't sound like at the chicago fed conference this week they were souper excited about immediate insurance cuts so maybe the market's alittle ahead of that.

but i think all of the indications and a lot of this rally this week was much less about trade and more about getting a clearer picture of the fed reaction function and the idea that look, if we go down to 2600 or 2650 the odds are almost certain they're cutting and probably in a sequence of cuts fairly aggressively fairly fast. so if trade were to deteriorate, yes. i think fed policy ultimately trumps that. and let's just be kind of precise a little bit about trade. we have 25% tariffs on $200 billion worth of chinese goods this is a $20 trillion economy yes, animal spirits can get messed around. but the idea that this is really a big policy change thus far, other than expectations, is not a really high-quality idea in my opinion. and i do also think that this is a president that goes back and forth quite quickly. to try to say that we're going to immediately damage animal spirits, he could be hugging the president of china and heading down to mexico and celebrating a new trade deal and all of a

sudden everybody's going to forget about it. so i think a lot of this is overblown. a lot of this is people looking at trade as an excuse for why their forecasts didn't work out very well this year because most people donate have this kind of forecast on either inflation or on growth. they had one or the other. and i think it's kind of a unfortunate thing but it's just where we are but i do think to answer your question, wilf, trade policy can absolutely be offset by good-quality, well thought out monetary policy. >> mark, david just touched on something that's come up in conversations i've had with ceos boeing on the record and off the record, and that is -- i'll put the question to you this way what would be more impactful or more detrimental to the economy, uncertainty prolonged around tariffs and this idea of not sure what the trade negotiations are going to shake out like between these different countries and what that means longer term for tariffs or if you see these tariffs get put in permanently, in which case ceos

now know how to maybe their investment decisions and supply chain alterations longer term? >> i don't think that happens. if the president follows through and raises tariffs further, 25% on, say, $500 billion of chinese imports, then i think that's going to do enough damage that the fed can't save the day unemployment will start to rise. animal spirits, those dark animal spirits will kick in. that's the fodder for recession. and businesses aren't going to feel any better about the certainty of that because what's next what's the president going to do after that just because it's 25% on china, what happens to the vehicle import tariffs what happens to the tariffs on mexico what if he gets mad at somebody else and decides to raise tariffs on them? so i don't think the uncertainty goes away. i think we are now stuck with the uncertainty. but i do think raising tariffs further, if he escalates the war, it's real money just to give you a sense of it, just to give you a sense of the context, last year the economy got a $200 billion tax cut

that's to individuals and consumers. if the presidential follows through on all thinks threatened tariff increases, that will be a precisely $200 billion tax increase and i don't think there's anything the fed can do to save the day. the economy, game over economy's in recession >> david, just very quickly, are you concerned in any way about the fall in things like oil prices and what that might suggest about global growth? >> just one thing i'd say on that is that's not a tax increase necessarily on the american consumer. there's a big debate about whether -- >> there's no debate >> -- how that tax gets distributed. it's a global tax. it's a tax on the global trade story. >> no debate >> i would take issue with that. but we could have that debate another day. i think there are distribution effects and the u.s. consumer does get a little bit. but i think that's a leap to say that it's all going to come as the same as a tax cut. any business tax cut that was much bigger than a tax cut, the 40% drop in corporate tax rates that were executed last year, not just the individual tax

rates. wilf, just your first question, though, when you came back to me, could you repeat that for me >> just quickly on oil prices and their recent slide does that worry you about the global growth outlook? >> you know, i think it's generally the higher dollar. we've had a higher dollar. we have a story which is that monetary policy is probably a little too tight, has been a little too tight, they went a little too far they're probably wheeling that back hopefully that will stop and the dollar strength will go away we saw a little bit of dollar weakness today which i think in the dxy and some of the other trade-weighted indices came down, but i had i it's a symptom of us keeping monetary policy a lot tighter than other folks have been and our real rates being a little too high. and i think that's going o'come back down and i'm not that worried about it but it does give me pause for a view where you want to get super excited about emerging market growth that's for sure. and i do think that part of the reason we've had a little bit of nervousness in our risk parity stra trades this year why we kind of

structured some option trades around the strength of the stock market above 3,000-s that that red flag of dollar strength was something we didn't understand and we still think that's something about dollar funding rates, that people have borrowed a few too many dollars globally and that as this monetary policy kicked in over the last couple years with long and variable lags it really sent some negative shock waves through the global economy and that's what we're seeing more than we're seeing 200 billion, 25% tariffs on 200 billion. this is monetary policy from the last two years shaking things up a little bit much more than trade policy in my humble opinion. >> guys, we will leave it there. thank you all very much. david, mark, and particularly barbara for being with us for the last hour and a quarter. >> straight ahead, beyond meat shares skyrocketing more than 400% since the ipo last month. and up next we will hear from one research analyst who says this stock still has plenty of room to rally. >> and we will go inside and have a look at the ongoing trade war and how it's impacting the

tech sector. when we speak to john chen of blackberry that's coming up i'll see you later.

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let's take a look at how we finished the day on wall street. another strong day of gains for stocks with the dow finishing up 263 points the s&p also up nearly 30 points, or 1%. and the nasdaq,the outperformer, up 1.7%, led higher in large part thanks to semiconductor stocks it was one of the best weeks of the year for all three indices let's dig into some of the biggest winners. bob pisani is here at the exchange bertha coombs is at the nasdaq but bob, let's start with you. >> what a week the dow moved almost 1,000 points from the close on monday. and as we move toward the big close here today we had a number of big dow stocks hitting 52-week highs. in fact, almost a quarter of the dow hit 52-week highs. 250 stocks at the nyse visa new high. procter & gamble, mcdonald's, american express, walmart. it is a very diverse group of stocks

travelers also hit a new high. so no one particular sector dominated. if you had o'wick one i'd say consumer staples generally had a good week. not a defensive tone to the week pepsi, colgate, paul olive, err shi, kimberly clark. coca-cola. all the trade sensitive sectors this week were the biggest movers i know everybody talked about the fed but if you look at auto parts which moved on mexico, semiconductors, metals and transports all big movers. back to you. >> bob pisani, thank you very much for that. the nasdaq closing higher for its fourth straight day. not quite five, though, alas but let's send it up town to bertha for a breakdown of all the movers hi, bertha >> considering where we started the week where things looked so dour, it's been a remarkable comeback best week of the year for the nasdaq best week since that christmas eve into the end of the year rally that we saw. and among the best gainers was amd as chips this week really roared back with a vengeance amd up about 18% for the week,

leading the whole group as a whole. hasbro among one of the other big gainers as well. tesla had a pretty good week although it was off today and it's still down 30% from where it was trading a few months ago. and meantime, the fang names were laggards. kind of mixed. worst performer of the week was alphabet down about 3% this week as there are continuing concerns about regulation and microsoft really the standout here. closing out the week at an all-time high with its market cap just over $1 trillion making it the biggest stock here and within our investing universe. back to you. >> bertha, thank you very much for that meantime we've got a news alert. it's on uber deirdre bosa has the details for us dee, what's happening? >> uber says it's operating an marketing chiefs are stepping down in an e-mail sent by ceo dara kos roe shahly to employee seen by cnbc. he says ceo barney harford who he brought over from expedia

shortly after he joined uber, he said he and barney agreed that his position no longer makes sense post-ipo kos ro khosrowshahi also says marketing chief rebecca messina no longer makes sense either marketing communication's and policy teams are going to be led into one led by jill hazelbaker. a source tells me this is essentially dara taking the reins of the company on the other side of an ipo he feels he now has the ability to focus more directly on the core businesses and doing so will allow the company to move faster so it made sense to eliminate that c.o.o. layer. uber shares did move lower into the close ending the session nearly 2% down back to you. >> deirdre, these departures, people who were tight with the former ceo and founder travis kalanick, is that at play here or not really? >> no. actually, joe hazelbake yes who

will take over the different division's marketing communications and policy, she was in place under travis kalanick and bafrny harford is actually someone that dara khosrowshahi brought over from expedia. it's interesting that he is now leaving but again a source says that this is dara really taking the reins and taking control of the company. there had been some questions. i mean, dara's honeymoon has been over for a while and some questions as to whether the company can continue to innovate under him. we've also seen what happened post-ipo stock still trading below that $45 ipo price. so perhaps this is a way for khosrowshahi to gain control and make things happen more quickly at uber. >> deirdre bosa, thank you bring in analyst dan ives of wedbush on the phone he has an outperform rating on uber's stock dan, your initial reaction to this news. >> it's a surprise in terms of the timing but no doubt this is dara taking more reins over the company.

i think it's something where it's an experiment gone wrong in terms of the chief marketing side and i think we've seen that. and ultimately with more and more pressure there needed to be a bit of a shake-up and i think this is really dara putting more of his stamp on the company. >> why do you think the stock's trading lower, then? >> because it's the last thing investors want to see with disruption, especially given what's been a white-knuckle period post-ipo. this is something that could happen six to twelve months down the road after a few quarters execution. investors -- would be a bit more to swallow this pill the fact it came out so quickly it's the timing that's really surprised investors and now it's going to call into question the company's leadership and put them more as a prove me stock here >> is the ceo under pressure should he be >> he's under considerable pressure to perform. and i think the honeymoon period's over. we've seen that. and i think investors want to

see execution. out of the box as we saw it in the first quarter. but i think when you look at numbers it's something where this is not going to be a 12 to 18-month type story. they're going to need to execute the next few quarters and really prove that this is a story that could start to be the way that they pitch in terms of amazon transportation i think this is dara realizing, looking in the mirror, that he didn't have the right people there. >> dan, do you think if the ipo had been received by investors more strongly, if the stock wasn't still trading below that $45 ipo price, that we would be having this conversation today >> i mean, i think it's not the majority of the factor it has played into it in terms of some of the pressure they're greth their investors, both their core as well as new public investors. but i think part of it's just from a marketing perspective the pricing war with lyft is ending and it's going to come down now to really the next six to twelve months it's going to be a fork

in the road situation for uber to prove they can penetrate markets and show uber eats that they can really take rates up. this is dara realizing he's going to have to take more of the reins but it's going to put more and more pressure on him because if this is not successful in the next six, twelve months it's a brighter spotlight on him if he's the person to lead the company >> dan, remind us your price target and recommendation. >> yeah, we have a buy rating and a $65 price target >> dan ives of wedbush, thanks for joining us >> thank you >> up next we will break down the charts to see how history says the dow is likely to perform if the fed does cut interest rates >> and president trump's new tariffs on mexico are set to take effect on monday. find out what kind of impact they could have on stocks, the economy. that's later on "the closing bell."

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all in one place. because when it's decision time... you need decision tech. only from fidelity. it was the best week of the year for all three major indices. let's send it over to mike santoli for his final dashboard of the day and week >> yes, that's right, morgan as a matter of fact, the rally raises the question as to whether or not the market has pulled forward some of the advantage, some of the gains it usually gets from the first rate hike of a cycle. this is a chart created by ned davis research that shows the performance of the dow on average before and after the first rate hike of a cycle this encompasses all rate-hiking

cycles since 1921. so essentially, zero is the date of the first rate hike this is the 12 months before and the 12 months after that rate hike so what you see is market rallies pretty nicely. up about 10% after six months on average. up about 17% on average for the following year well above the historical norms. but i would add a couple of caveats here one, you look at on average the market has been down 6% or 7% in the months before the first rate cut. right? well, we're not down that much right now. and secondly the last two cycles were negative after the first rate cut so in 2001 and in 2007 the subsequent returns were not good sought fed was perhaps the market thought late in cutting rates. >> i guess this also doesn't take into account where the cut is coming from and we're not that high. >> levels not at all no that's exactly right >> i would imagine it would usually lead to better market returns when you start to have a

few aggressive cuts from a high level as opposed to small cuts from you a mediocre level. >> potentially so. we really are not in any terrain we've been at before in terms of these levels interestingly the second cut on average comes very quickly after the first one. like you know, weeks or just a couple of months after >> anyway, market participants will hope this chart plays out because it's -- >> except for this part. >> i was going to say, except that first half. >> from the second half. you know what i meant. mike, thank you. time for a cnbc news update with sue herera hi, sue. >> hello, wilf hello, everyone. here's what's happening at this hour virginia governor ralph northam says he will hold a special session of the state legislature to address gun violence. the meeting will be held july 9th and it follows last week's mass shooting at the virginia beach municipal building where 12 people were killed. theresa may formally stepped down as leader of the conservative party paving the way for the contest to elect her successor. may will remain on as prime minister caretaker until that person is chosen the race to replace could last

six weeks and includes 11 candidates a massive floating crane arrived at the site of a tour boat accident in budapest today as officials there prepare to raise the wreckage from the bottom of the river. 19 people died when that boat collided with a river cruise ship and fiat chrysler is recalling 300,000 ram pickup trucks worldwide because their air bags may fail to inflate in a crash. it includes 2019 ram 1500 models and owners will start being notified in july that's the news update i don't know why they're waiting till july but whatever >> i was just having the same thought. >> yeah. you can go and put the vehicle identification number in on the website and it's supposed to tell you whether or not your car is recalled. but drive carefully. back to you guys >> as for july, sue and morgan, july 22 will be when the new

prime minister is expected to be in place >> excellent >> so theresa may is no longer leader of the conservative party but sort of in this middle ground >> a long period of time there too. >> if she tried to pass any laws it would probably lead to a bit of a crisis. but she's still got the title for now. >> that's right. >> thank you have a great weekend >> have a great weekend. >> up next, blackberry ceo john chen tells us whether the trade war with china could have a devastating impact on the tech sector >> and later find out why google is warning the white house that its ban on exports of china's huawei is putting the u.s. national security at risk.

antitrust probes and trade wars are threatening the tech sector, and google is one of the companies impacted by all of it. aditi roy looks at what an antitrust action against google could look like. seema mody is covering google's battle with the travel industry. and deirdre bosa looks at why google is raising issues with the huawei ban but first let's start with aditi. >> morgan, the european union's investigation into google

provides a good glimpse into how the u.s. probe could develop in order to prove that google is engaging in anti-competitive behavior the doj would have to prove that google has at least a 30% to 40% market share in the relevant category. according to statistics, the company has nearly 90% market share in search and e-marketers saying google owns nearly 3/4 of search ad sales. investigators would also, though, have to show that google squeezes out the competition through its business practices and its contracts with third-party clients and suppliers. some of those clients like yelp's ceo have been asserting for years that google preemts them from gaining market share by favoring its own web offerings by placing them at the top of search results. >> thanks for that online travel companies are fighting back against google's success in that industry and seema mody has all the details for us seema. >> online travel executives have been long awaiting a regulatory crackdown on google, criticizing the tech company for favoring its own hotel and flight

metasearch options while undercutting competition and putting smaller players that don't have the means to advertise on google at a disadvantage since its acquisition of ita matrix ten years ago goolg has become an important travel tool. focusright says over 60% of american travelers use google to shop for travel products as more consumers turn to its prominent search engine yonlt travel operators have been paying up for that highly valued traffic dennis shaw estimates about 75% to 80% of expedia and booking holdings marketing and ad spend in 2018 went to google morg morgan >> seema mody, thank you google is also warning the white house that its ban on exports to huawei is putting national security at risk deirdre bosa has that story. dee. >> morgan, this may sound counterintuitive because the restrictions are supposed to address exactly this, but google is trying to make the case that it needs to be able to provide technology to huawei in the name

of national security now, huawei smartphones use the android operating system google is reportedly worried that the ban would prevent it from sending updates on huawei phones and that could lead huawei to develop its own operating system that could be some kind of hybrid android system that would be more at risk of being hacked so things could then get messy if americans are sending sensitive information to someone overseas that might be using a compromised huawei phone and remember that huawei is the number two seller of smartphones worldwide. so there are a lot of them out there even if they're not in the u.s. now, of course google would not be the only american company worried about the effect of an export ban on its business you've got major component makers like skyworks, qorvo and momentum american component makers already reducing forecasts on the news. back to you. >> dee, thanks very much for that google ended the week down some 3% or so compared of course to about 4% gain for the s&p 500.

blackberry meantime has made its transition from leading smartphone maker to a software company. and the canadian government naming it the industry standard for trusted technology blackberry ceo john chen joins us now in an exclusive interview. john, good afternoon to you, and congratulations on that accolade >> thank you good afternoon to you both >> talk us through what this accolade from the canadian government means how much is becoming known for your prioritizing of security? how much of a priority has that been to you and does this change the game in terms of getting this endorsement >> well, it's nice to get the endorsement. but we have always been known as the most security platform, and we provided, for example, to the g16 or g20 governments infrastructure, secure mobile infrastructure, privacy. you know, it ranges from our phones to all the software that

we do to build software that we put into the automobile. so we've always been doing it. and it's always nice to get the recognition. i don't know whether it was a game changer or not. the only exception is i'm hearing all the news earlier i think that the market and the world is now turning to privacy and security as the top priority we've been waiting for for a long time. >> john, who's right in the u.s. government which has put this ban in place and is worried about national security risks regarding huawei as the rollout of 5g looms upon us, or google, which just today is worrying and telling the government ha it's worrying that that ban could actually cause more national security risk? >> well, i just heard the google news this morning also, their assertion. so i really don't have enough time to understandthe logic behind it.

it sounds like the earlier report said, it does sound a little counterintuitive because if we don't use the huawei phone in various situations and the united states government already banned using the huawei phone it's hard to see how the national security is being compromised. but there might be a deeper argument behind it i believe this whole huawei situation could be resolved by more of a technology transparency on both sides i remember a long, long time ago the chinese government had a lot of issues with microsoft windows operating system i think bill gates and team had gone to china and was able to review the code with the chinese officials or their scientists and they were able to address that issue and microsoft today is doing reasonably well in china. i think the same methodology could work here. huawei would be able to, you know, let the united states government trusted parties to

look through the call and escort it and so far it might all work i am hopeful that we will resolve it but you've got to resolve it through working together and not resolve it by calling each other names or whatever it might be. >> john, does this focus on security that is taking place in the marketplace now being more aware of privacy issues, does that lead to a renaissance for you in certain parts of your business lines >> we are all in on that we just bought a cybersecurity company doing a.i. -- using artificial intelligence, machine learning, to even take the security protection one level up so yes our strategy is to be able to capture in, and which we've always been doing well in. renaissance, i don't know whether that's the right word, but we're looking for a pretty strong, healthy business plan. >> john chen, thanks for joining us

>> thank you >> still to come, uber shares falling after the company announced some c suite changes we'll speak with management guru jeff sonnenfeld about the shake-up that's coming up after the break. when it comes to your customers' expectations,

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the workplace should be a source of financial security. keeping your people happy is what keeps your people. that's financial wellness. put your employees on a path to financial wellness with prudential. welcome back to "the closing bell." uber's chief operating officer and chief marketing officer are both stepping down that's sending shares lower in the after-hours trade right now, down about 1%. let's bring in jeff sonnenfeld,

cnbc contributor from the yale school of management, who is on the phone with us. jeff, great to have you. what is your initial take on this news? >> thanks, morgan. despite the stock not celebrating this, i think this is actually as far as i can read from the outside a good move, and it's the right time to do it anybody who has recalled the history of dara ke a khosrowshad what he did as ceo of expedia putting together travelocity and orbitz and home away and all these brands that seem to be at war with one another, one of the things they really appreciated, that barry diller saw him do at iac, was to integrate these businesses and there's a need to do that now, that they've had diffuse marketing campaigns with the different pieces of uber going somewhat different ways. and also obviously the model, the way it's been advertised versus the way it's being delivered right now, it's not working quite right. we see it in the stock price

it's exactly two years on the job, or this august will be two years on the job i think he's feeling the pressure with the ipo underperforming to show that he was worth the $200 million that he was paid to come on board >> jeff, there's a line in the internal e-mail that cnbc's seen that suggests that now he has got the ipo passed there's more time for him to focus on the core business. is that therefore a little bit of an admission that perhaps in the last year or so there's not been enough focus there and the core business has slipped as a result >> you know, wilf, i think you're exactly right to read that between the lines, is that they had a solitary focus on looking like things are not kay tic or things are stable as they got through the ipo period it didn't look like people were bailing. and surely it didn't look like it was under travis kalanick where people were either bailing or being thrown overboard with

all the ethics scandals and cultural issues and bro culture issues we're so past that as far as we know, happily, that it's really now time to do some fine-tuning on the culture the culture that he walked into was the culture you often see at so many of the start-ups that we talk about on air so much, where it's like a hub with spokes coming off of it that was travis kalanick's culture. and they needed to move into periods where you have really great experts such as a unified marketing approach and other things but there's a small additional piece to all this that wilfred i think you also put your finger on, is that there's a lot of promising about where we're going to be going with uber eats i think it's like 13%, 14% of revenue right now. but it's supposed to be this much bigger part of the story. however, that's the most competitive space for them that's where they've really needed to figure out what they're doing there. sew has that reporting in to him directly which i think is also a major move that he's trying to take control of things while he's building up areas of

discrete expertise it's the next stage of life really for the business. long past due. >> as a general matter, jeff, what's interesting is you have a company that is i guess going to its next stage of maturity and maybe complexity and they're saying we no longer need a chief operating officer. not every company has a chief operating officer but it's kind of an interesting move to say we're going to remove a layer of operational management because we're kind of bigger and i get the idea that dara would focus more directly on it, he probably doesn't have to spend a lot of of time with the ipo or other fund-raising anymore but it's kind of an interesting step >> well, it's an interesting step right now that shows he wants to have some sense of control and mastery of these different businesses, of these issues somehow diffused through him, that somehow there's somebody running cover, that he doesn't have his hands directly on it. while the business is growing considerably, it's still not yet that complicated in terms of the

different business units sew figur so he figured i shouldn't be shielded, this shouldn't be buffered, i should know what's going on going into the next stage. but i think we'll see this is transitional and he's growing to try to get really strong talent into running with the coordinated marketing plan somewhat matrixed across them and that's where i guess he's going at this stage, but it's a very good question. >> jeff sonnenfeld it's always great to get your thoughts on this and great for the breaking uber news. >> have a great weekend. you seem to be working around the clock these days >> you, too, thanks. >> home flipping is falling to a three-year low and now they're scavenging to find a diamond in the rough. we'll have those details when we come back. >> the man who called this week's tesla rally will tell us what's next for that stock you don't want to miss that show coming up at the top of the hour

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the pricey housing market is making home flipping a hard sell, but some potential flippers are enlisting a new strategy from the shared economy. diana olick joins us from washington with all of those details. hi, diana. >> hi, wilf. it's getting harder to find cheap, slightly distressed home that you can flip and that's where uber drivers are coming in they help them find property, make sense since drivers cover a wide area and today's flippers need every edge they can get nationwide, flippers saw an average return on their investment of about 39%, down from 42.5% in the previous quarter and down from 49% a year ago and the lowest return in eight years according to adam

data solutions the number of flips are also down 8% annually so the stakes are up precisely why daniel degiacomo has 150 drivers scouring the streets for opportunities. >> the best deals are always the deals that we put our eyes on and then i can't put miles on every single deal so uber drivers are out there looking at all kinds of different neighborhoods and putting their eyes on many houses. >> and if the deal closes the driver gets 500 bucks. not bad for moonlighting while you're working back to you guys >> that's not bad, diana, but nor is -- i know you said it fell from 42% to 39% it seems like pretty good return still. how does it qualify to be a flip how short a turnaround does that have to warrant? >> usually a flip is defined as buying and selling a home within 12 months and remember, they have to put money into these homes and rehab them a bit and with prices so high it's hard to make the math work on the flips

anymore. so you're seeing it come down and the competition heating up and that's why they want the drivers. >> diana, thank you very much. >> up next, some big events and we'll preview lululemon as well as tesla's annual shareholder meeting. we're back in a couple of minutes. ♪ 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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the key thing wall street will be watching monday is whether the mexico tariffs go into effect and there are other big events on our radar like annual earnings and tesla's annual meeting with the highlights and seema mody will look ahead to lululemon and josh lipton will preview tesla. >> last quarter lululemon calvin mcdonald said the expansion into the retailers is the largest and most exciting segment for future growth at just over 20% penetration and investors will want to know how the company plans to continue to attract first-time male buyers shares of lululemon up around 40% this year. now a different story for restoration hardware parent, which has seen its shares drop 26% in 2019. the key focus on china and the impact of tariffs on its bottom line and the decline in luxury home sales has resulted in slowing demand for its

high-priced furniture. morgan >> seema, thank you. >> josh lipton has a preview josh >> so morgan, heading into that meeting, that stock is down nearly 40% this year and what a concern there that model 3 demand has significantly softened and the dan ives of web bush and the proposals themselves look uneventful and the real focus, he says, elon muve musk and what does he say to the shareholders in the meeting and the real growth opportunity and not the be downward spiral guys, back to you. >> josh, thank you very much for that 40 seconds left. mike, individual stories, but the key thing to focus on tariffs. >> we're in the quiet period for fed officials and we'll nothing more the market is leaning in the direction of mexico and it either doesn't go on in terms of tariffs or it doesn't last for month and we do get the cpi release next wednesday, i

believe, which is going to fill the inflation story and i don't know if that will inform the fed decision any it's the one piece of macro that can turn things. >> in terms of the performance of this week >> it's a very creditable rally and that low is right where the march one was from a couple of weeks ago. it seems like the market is in better shape right here and we are going to enter preannouncement season, too. >> thanks as always, morgan, pleasure to have you with us >> that does it for kwoez closing bell,". >> have a great weekend. "fast money" begins right now. >> "fast money" starts right now live from the nasdaq marketsite overlooking new york city's times square i'm melissa lee, your traders are brian kelly, grasso and guy adami. the dow up 250 points today because bad news is good news once again and a weak jobs report sparked a flesh cut of euphoria and no deal so far between the u.s. and mexico ye