hours plus, $24, up to four hours it's about $4. >> they are charging you to park there. >> charge you to park. 33,000 space, however. >> just set the thing on fire. thank you for watching "power lunch". >> "closing bell" right now. >> they don't charge you to park welcome to the "closing bell," everyone. i'm wilfred frost. that's the plunging over 20% earnings majorly disappointment. we're in an earnings driven market 59 minutes not just left of trade but also until more earnings including the big one, amazon >> i'm morgan brennan. let's look at what's driving the action vice president making sharp criticisms of china but saying the u.s. is ready for a new future corporate earnings taking more negative tone with names from 3m to twitter sharply lower and new economic data shows business investment coming in soft but the overall job market

remains solid. joining us for the hour is stephanie link what do you think the theme is here we started the day up almost triple digits on the day then loss were down triple digits now we're somewhere in the middle >> crazy with earnings nonstop. the theme today is the shift right back to growth from value. thanks to paypal, thanks to microsoft, thanks to service now, and value is under performing because i think it's all about 3m and what they said. weak china, weaken you a, to no green shoots after yesterday where caterpillar gave us some hope and boeing gave us hope today took it all back >> some commentary from the industrials so far, honeywell last week as well, some of the commentary has been a little bit better around china so i wonder how much of this you think is 3m specific and where their end markets are focused versus the broader sector >> especially in electronics i do think they have high

variable costs at 3m so they have some company specific issues. they didn't take production down quick enough yes, some of it is 3m. we felt so much better yesterday post-boeing. those stocks ended up yesterday. they are giving back a little bit today. >> lots to discuss throughout the course of the next hour. markets see the dow lower. s&p higher let's focus ing stories we're watching bob pisani is tracking all the movers here at the stock exchange bertha coombs is doing the same. kayla tausche is covering comments from vice president pence on china and nike. let's kick things off with you >> a little bit focus on chinese, autos and industrials let's take a look at the movers on the dow 3m are down. their comments exposure to china to autos, poor guidance. big drag on the dow. mcdonald's has been down every single day last three days

down about 6% for the week 1.5% today good couple of days in health care stocks but they reversed today. pfizer and merck is down not so the bank. jpmorgan another new high. bank of america another new high banks have been terrific since earnings season began. we'll hear from capital one and visa tonight >> those are the only two banks that are up. the other big four of the big six are slightly lower >> yields have slipped important thing is overall you get typically these banks trading down the kb will trade down as you move into earnings season. it's been on the upside since then that's a little bit of a reversal >> we're kicking off the two hours. >> you just mentioned industrials as well. >> we can talk with whatever you like >> get it in to you before you get the big tech earnings. the nasdaq outperforming

throughout today's session let's get to bertha coombs for more >> this morning was led by apple but apple has slipped. still the earnings movers today that are still going strong. among the big gainers uniform maker cintas raised its outlook reaching an all time high. some forefor o'reilly you a the to motif paypal narrowed its guidance analysts are encouraged by the top line beat. chip equipment makers lam research and mks instruments leading the semiconductor sector they reported better than expected results and lifted guidance providing a halo effect for applied materials. meantime take a look at invisalign in china they made a big bet on the china teen market. when you look at that chart, a little bit like a ground,

literally turned upside down stock up 19% for the year after being hammered for much of the year back to you. okay appreciate the metaphor. >> twitter shares down 21% after the company reported revenue earnings and guidance that fell short of expectations despite adding double the number of new daily active users as analysts had expected twitter attributing the short fall to a technical bug. rbc writing twitter having nowhere near the reach of google of pinterest or pull of snap it can ill afford any ad product mistakes we're seeing that today. goldman sachs downgrading the stock to neutral and cutting its price target on the stock. back to you.

you happen to hold this in the past >> i have. >> where do you stand now? >> i sold a little bit before the quarter. i bought alphabet. i'm down 21% is way overdone user growth, 17% that accelerated sequentially. to me they have the users. i know they have to monetize it. that's the big question. they will fix it eventually. i'm not buying it today because it's down a lot. i'll buy it back at some point >> was this a twitter specific own goal in strategy or is it sort of a sign of things to come that facebook hasn't encountered yet or is this twitter -- >> it's a twitter thing. a bug. they didn't get it fixed or fixed fast enough. we don't know when it will get fixed. that's why the stock is trading off so much. it's an opportunity. >> nike and fresh comments from vice president pence about the company's business in china. kayla tausche has more in washington for us.

>> reporter: president trump has often criticized the progressive social politics of nike's athletes but today it was the vice president, mike pence affirming the administration's avid support of demonstrators in hong kong and take nike and the nba which have been in hot water with beijing after an owner pro hong kong tweet have kowtowed to china. >> nike promotes itself as a social justice champion. when it comes to hong kong, it prefers checking its social conscience at the door it's siding with the chinese communist party and silencing free speech. the nba is acting like a wholly owned subsidiary of that regime. >> it was a criticism on china's record on human rights and trade. pennsylvania said they will fight china's aggression which has gotten worse in the last year they don't support economic

decoupling and hope to sign that phase one trade deal now on tuesday i did ask outgoing nike ceo mark parker about china and the nba. here's what he said. >> we're obviously standing very close to the situation, and like all of us, we hope there can be a peaceful resolution. you know, we're in the midst of some very complex times, and i think it's important that in this incredibly dynamic environment that we are very thoughtful and deliberate in every situation. >> mark parker there earlier this week. i do think there's an interesting kind of difference here they take a position on a social issue, a couple of social issues here domestically but don't do so in china and it does raise the question why? because chinese sales may fall if they do and u.s. sales were supported. >> china is a huge market for

them they don't want to upset the apple cart at this point it's something that absolutely has to be monitored and pence is right in terms of being very critical >> the only thing i would say with the pence speech overall clearly not the outright support of china but flashback a year ago, not as harsh. it wasn't as severe as we got a year ago which was we were waking up to the scale of the trade war. okay they mean business. this one was almost serious, but following all the tariffs we've seen like a net improvement from where we've been >> which was a good thing. can you imagine if it was harsher. that would be worse. the market would tumble 200 point or 300 points. >> looking not decouple. china on firm footing. this is a rising power competitor for us, strategic competitor for us on the military side was pretty notable as well. turning to the big r big picture, big winner, tesla soaring on strong earning after

the bell last night including a surprise profit for the third quarter. for more let's bring in jed and joe. joe, i'll start with you big mover seeing higher in tesla now. warranted? >> to some extent. look they surprised us on profitability. i've never seen a company with black revenue come up with that kind of upside on profitability. so to some extent it's merited i'll say the reason we downgraded the stock which is the top line decelerating why we're not buying it today. ledge mall surprise but still some concerns out there about the rate at which they can grow this business. >> joe, is that bottom line improvement sustainable or a one time leap? >> well, part of what's interesting about covering this company is the extraordinary margin of volatility quarter to quarter. you look at it and say hey that's great look they are bringing this

china fabrica online. i don't have a lot of conviction this is the new formal when i was debating last night to upgrade the stores that's one of the reasons i didn't, i'm not sure that's sustainable. >> do you see this as a shift in the narrative? is profitability going something our sustainable and here to stay >> yeah. you know, i think to a certain extent maybe you don't see the improvements is definitely here to stay. you know, we tend focus onless s which is how they are able to deliver a car that gets, you know, 40%, 50% greater range than other ev companies. and that is resulting in a fundamentally lower cost structure which i think is what we're seeing bear some fruit today. >> joe, self-driving, automation piece of all of this and all the software that tesla is pushing out to its vehicles on the road.

is that a real the threat to the other players in self-driving cars right now >> honestly, if you were to ask me how i valued the stock there's not a lot that i'm assigning to, you know, the self-driving or vehicle autonomy features we're a long way away from that. i will say i agree with jed. right? they are still building the best electric vehicles out there. they are way ahead of everybody. that should stand in their favor. don't be buying the stock because of the vehicle autonomy. >> jed, does the competition ever catch up with them or do you think they are always able to innovate and stay ahead or is there a definitive time period where they have to cease their advantage and grab market share. >> to be seen. with that being said, having been an operator at a large fortune 500 it's challenging for hundred year old business models to catch up. i think they do have an

advantage. they have a technology advantage. you know, it's going to be to be seen whether or not they can capitalize on that to the fullest extent that being said they continue to derisk the stock and that's why the stock continues to move higher >> jed, joe, thanks for joining us today stock moved 17%. we were talking about the big down side move on twitter. this big upside move on the tesla, is this warranted >> still down 10% for the year it's had a tough struggle. the free cash flow is very impressive they lowered their debt levels that was also a good sign. this is a stock you either believe in it or you don't it's still down 10%. too much for me. >> we got 46 1/2 minutes left of trade. we're down on the dourw, highern the s&p. amazon, intel, visa, and many

more gearing up to report results after the bell we'll have some preview. >> tech executives under fire as mark zuckerberg faces pressure from washington. ra swisher joins us to break it all down. i love most about g a scientist at 3m is that i'm part of a community of problem solvers. we make ideas grow. from an everyday solution... to one that can take on a bigger challenge. from packaging tape... to tape that can bond materials to buildings... and planes. one idea can unlock a breadth of solutions. at 3m, we are solving problems that improve lives.

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we've got just under 45 minutes, 43 minutes left to trade. let's get over to mike for today's market dashboard >> cheap and dear. we talked about revival of inexpensive value stocks we'll see if that continues. rust and shine industrial metals against gold is an interesting cyclical indicator. fear and greed check of investors sentiment hit been despondent. ebb and flow take a look at s&p 500 value etf against the saul s&p 500 the overall index. they are exactly just about tied right? about less than one tenth of one

percent in terms of dwreer date performance. back here you had some relatively wide spread of 2.5 percentage points under value. it's showing you there's more comfort about the cyclical story, less confidence in big secular growth stocks. what's the biggest holding in the s&p 500. it's april approximately another one is japan morgan. one eighth of this value etf is those two stocks that have been hitting all thiems the question is whether those two stocks can keep clicking higher >> so interesting. one of those does have quite a lot of top line growth still the other has recently but doesn't represent a sector that is otherwise considered having top line growth. >> also jpmorgan is also not by a long shot the cheapest of the large bank stocks. some of it is portfolio construction how we define these

categories >> on a pe basis it's still relatively cheap where do you stand on this and does that worry you if it means we don't have a clear market leadership for more growth stocks at the moment? >> i have a value bias i hope this continues. you do have to believe that global growth has stabilized you have to believe that isms globally have stieblized there's some debate. our own p and i of not so good there's still value in financials, certainly energy, pockets of industrials materials have been left for dead these are the groups that will go if we see stabilization around the world >> we'll see >> mike brought up jpmorgan. i have to respond. >> i know. i know after the break, here's another one. morgan stanley out with a new note on the battle between uber and lyft which name they say is the

better buy >> big day for airline earnings with southwest and american out already. we'll speak exclusely th tivwihe ceo about the numbers as soon as tilden but in my mind i'm still 25. that's why i take osteo bi-flex, to keep me moving the way i was made to. it nourishes and strengthens my joints for the long term. osteo bi-flex - now in triple strength plus magnesium.

. welcome back to "closing bell". time the to get word on street

bernstein initiating peloton the company is leading the destructive way towards connective market and has a market of 50 million households in the u.s deutsche bank downgrading ford from buy to hold. firm says it worries about ford's preparedness for an u.s. industry downturn. also says benefits from its $7 billion restructuring program could take longer to materialize than prefl expected. shares are down 6.5% morgan stanley is out with a new note on ride sharing, lifrt at equal weight firm forecasts generation z as driving lyft's rider growth higher by 11%. morgan stanley says it prefers uber over lyft citing improving u.s. ride share profit trends at uber nonetheless lyft shares are up 1% today steph, here's what tickles me

about the bernstein note on peloton. price tar get is $29 that's the ipo price >> i know. they weren't on the deal that's okay. i think it's a thoughtful notes. i like the sum of the part analysis the question i have can they get 40% subscription as a total percentage of revenue over the next three to five years that's a big ask, i think. if they do that's is going to explode margins and costing will be coming down you'll see positive operating leverage that's the big question. can they get to 40%? >> we had these buy notes. the ones on monday were on the ipo. like you i take much bigger issue when they are buys at the ipo price. from here it's a bit cheeky. across all of these notes, the two issues i worry about, one they are very bullish what the addressable market is for the product and quite hard the to break that down. the proof will come in years to come the other is not address the

outstanding music issue with the publishers it is an overhang for the stock. none have addressed that that to me they don't think it's a big issue but maybe they are confident of that but don't address it at all. >> that's the overhang and why he some of the parts multiples she is use using is much less. >> peloton up 1% on that buy note today still well below the ipo price of 29 bucks. coming up we got your last chance trade steph is picking one of the worst performers today why she says it's a buy. that's coming up. >> one-third way through the earnings season. we'll discuss what we learned so far and what the rest of earnings season has in store as we head to break here's a check on bonds u.s. treasury ticking a bit higher ten year yield above 1.6%. stay with us

"closing bell" will be right back with time, comes change

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welcome back we got a market flash on johnson & johnson. >> cvs stores confirming its removing 20 ounce johnson & johnson baby powder from its stores and website store this coming after j and j initiate at recall of its baby powder products last week out of an abundance of caution following concerning fda tests, j and j shares dropped as much as 3% on the news but have since recovered a little bit down now about 1.5% back to you. >> thank you steph, what's your take on this? >> i leicht. i like the stock it's very cheap. they had a good earnings report. they don't care about that i'm sensitive to that. $300 million product it's small we'll see how it goes. object on weakness i've been nibbling >> opportunity to buy if you agree with steph

31 minutes left of trade here are the key things driving the action vice president making some sharp criticism of china but says the u.s. is ready for a new future corporate earnings taking a slightly more negative tone today with names from 3m to twitter sharply lower and new economic data shows business investment coming in soft with the overall job market remains solid. we're downtown dow, higher on the s&p with 30 minutes left >> time now for cnbc news update with sue herera. >> hello, everyone here's what's happening. the cdc releasing updated statistics on vaping related illnesses. it says there now have been 125 new cases of lung related injuries and one new death in just the last week that brings the total to more than 1600 cases and 34 deaths nationwide hundreds of residents of sonoma county in northern california have been evacuated as the kinkade fire consumes 10,000 acres

psg and e began shutting off power in 17 california counties. in southern california blackouts hit 17,000 customers industry insurance group says the tornadoes that struck the dallas area during a sunday night outbreak caused an estimated $2 billion in insured losses make it the costliest in state history. unfortunately, another round of storms is expected today >> jimmy carter is out of the hospital where he was treated after injuring his pelvis. a spokesman said the information president of looking forward to continuing his key er -- recuperation at home speedy recovery to him that's the news update morgan, back to you. >> we wish the president is a speedy recovery. thank you. let's send it over to mike santoli. >> morgan, this is rufrt and

shine. rust versus shine. take a look at a lot of indicators that shows the market is suggesting better growth is ahead. value stocks outperforming this is the ratio of the crb industrial metals against gold when does gold do well you have deeply negative bond yields this is significant. you had this pretty good down trend going in this relationship a nice bottom. then you broke the trend so a lot of folks, look at the message of the market. tentatively we're suggesting growth is getting some traction. things like industrial commodities that nobody buys unless they need them are starting to act well this is one of those situations you have to watch. obviously a lot of ground to make up if this will be a dominant trend >> mike, thanks. steph, this goes back to the conversation we were just having >> we always talk about

industrials and metals and mining >> i wonder what you think of that chart >> i'm encouraged. i own some of those stocks it's all part of the value trade. again, if you do believe we're getting close to the ism, bottoming, stabilizing, you want to own these some wait for confirmation i'm a value buyer so i want to buy when it's down they are certain down and out. >> gold is still up 17% year-to-date more than one-third of s&p 500 companies have reported results with 80% of the earnings coming in above estimates and only 13% below, according to new data for more let's bring in paul hickey and phil. very good to you both. paul, kicking off with you does that data support what you've seen as well? is it that positive 80% beat >> i think it is positive. it stems from the fact coming into earnings season

expectations were solo we saw one of the worst negative ratios in the last ten years when you have such low expectations it's easier for companies to beat them you're seeing positive stock price reaction the market is up 2% in the last two weeks which is nothing to sneeze at. average stock reported is up over 20.4% it's been quite a healthy report despite some of these bombs from specific companies coming out. >> phil, do you agree? i guess perhaps even more importantly looking at the guidance we're getting and then earnings expectations going to 2020, what's the picture telling us there >> yes the price action of earnings action this quarter is supportive of a market that's technically in good shape. companies that beat, if they beat one standard deviation they are moving on average by 2% excess to s&p. companies that miss are losing about a percent. that's so important. those beats, if that's the

strongest amount of excess performance since '09 the miss is lowers the amount of give away the insurance 120 market is still short and offsetting the negative fundamentals we're getting out of things like durable goods >> you mentioned there were some bombs. there's been some big jumps as well we got one today in tesla. are there others like that >> what's interesting is besides the banks which have been really strong, tesla reacted very positively to earnings winnebago react positive harley-davidson react positive some top performances of any stocks reporting so far. they are consumers they make vehicles everybody wants but nobody needs. >> it's about -- >> that's as discretionary as it get. >> where the market was expecting things, either overestimating the economic weakness or underestimating the

strength of the consumer hence you see those big reactions. that bodes well for some of those higher end names >> we're talking about earnings. next week all eyes sort of -- exactly, what do you think happened there's almost a foregone conclusion we'll get a cut >> 90% priced in amazing where we were this time last year. engine that's the fundamental difference between what made so many people nervous this time last year and this year. they were hiking in to december, ten year rates were closer to 3% they are at 1.75 you want to know why consumer is strong they have debt that's affordable that's the biggest antedote to the fear mongering we've heard >> this isn't as important as the last couple. market want as cut would it fallout of bed completely if it didn't? >> it might.

>> versus -- >> percentage is expecting -- like the bulk is 90% now >> 90% the fed always goes -- >> when you have expectations this high -- >> even with china trade being on a better footing, even with earnings -- >> we don't have a china trade deal we just have a detente. >> what's important about that even though they are priced for 90% if they do go next week those probabilities for december drop down 230. i love the maturity of the market they are not pushing the fed into taking this thing back to zero they've gotten three cuts. that's about what the market is expecting right now. i love the way the market is trading with that. >> we get amazon after the bell. a couple of names already. alphabet next week facebook how important are these big cap tech names to the market story more broadly and us continuing to go higher from here >> they haven't done much lately and the market has been holding

up well. we have the market here in the u.s. and global markets simmering. if you get a strong report from amazon after the close or google coming up next week, those could be the moves coupled with the strong banks that could push things, get us out of this range that we've been so sick of hearing. >> how about value versus growth do you buy into it >> not much. i mean, i think, we're still in a period of weaker economic growth and when you see that weaker economic growth people will go to the higher growth keens interest rates are low so that helps out the growth companies in that respect as well >> all right thanks for joining us today. up next, we got your last chance trade, plus 100% of analysts on wall street have a buy rating on amazon it will report earnings after the bell along with intel, visa gilead and alaska air. "closing bell" will be right back

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welcome back to the "closing bell". 18 minutes left of trade technology really leads the charge microsoft performing very strongly of course up 1.5% amazon earnings could come after the close today. communication service at the bottom health care also struggling down s& the charge up three quarters of 1% what's your last chanctrade? >> controversial it's back star it's down 10% today. i'm surprised baxter is down so much not a good headline. i get it down 10% is overdone this is the best management team in the industry. blue chip balance sheet. great market share they are outgrowing the market they just put up 5% organic growth today in their quarter. operating margins and gross margins are in expansion mode. trading at 14 times. that's how you should value it.

you're truly getting a quality name >> value play? back to our theme. >> yes baxter an hunt trading lower by t 9.5% nierptng you untrued coverage of the final minutes of trade. don't go anywhere. "closing bell" and market zone back in a moment - at southern new hampshire university,

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we're now in the "closing bell" market zone. commercial free coverage >> mike santoli is here with us to break down the crucial moments of the trading today today we have stephanie link other as well. tesla, that stock soaring after posting surprise profit. phil lebeau has more >> reporter: this stock tickling $300 a share three things that stand out. first how did they do it they did it with lower operational expenses, higher automotive margins and reported positive free cash flow. and the china plant is ahead of schedule we look for production likely before the end of the year when you look at the model why that's the next vehicle. they are saying they will move it up instead of rolling it out of end of next year they will roll it out next summer. >> phil, transports are lower.

two names are trading higher, american airlines and southwest. both reported earnings this morning. how did they do? >> reporter: they both beat the street the commentary from their ceos on cnbc and earnings calls american airlines ceo doug parker said we're looking for compensation from boeing shareholders for the grounding of the 737 max gary kelly this morning says they are looking at possibly diversifying the fleet that's a big deal. they've flown only 737s since the airline started back in 1967 don't forget tomorrow night on jim cramer's show "mad money" you don't want to miss this is a cnbc exclusive doug parker will be talking about not only their earnings but he'll have plenty to say about the 737 mack that's tomorrow night on "mad money" >> phil, on the southwest comments, totally he get your

point it would be a massive deal if they did it the market doesn't seem to suggest that, believing that a possibility. boeing stock is up, about a percent or so. >> reporter: i don't know if i would buy into that from this standpoint even if they were to at some point say, let's say a year or year he and a half from now say we're going diversify. we'll order a 220s or a320s. you're not looking at a drop in the backlog of boeing 737 maxs they are still at 4400 that would be unaffected by southwest potentially diversifying and going out and buying airbus planes >> fill lebeau, thank you. it's been a little bit of a mixed bag in terms of airlines at least the stock reaction. this is the consumer facing part of transport, emerging theme what does it tell us if you were looking for

reasons to get concerned you're not getting it from the airline results. it's not about demand being concerned about that the market has been reluctant to pay up for what are known to be deep cyclicals even though they look cheap that's where the caution comes in not so much saying that right now this quarter or next the consumer is weakening. >> boeing done just so much friday and monday that it doesn't matter what else the last couple of days. it's had a bit of a lift their results weren't good >> they lost 40 billion in value since this crisis came about there's a lot of bad news in the stock. the fact if -- they just need to get this plane in the air. that's then i think the stock will react much better. they will get more people with confidence and you'll see a re-rating. it will take time. in a year from now the stock is a higher price >> still to come, we'll speak with the ceo of alaska air about the company's earnings results which are due to hit any minute

now after the close. weigh in nounls as well as broader topics for the industry that we were discussion. we got under ten minutes, nine minutes left of trade. we're almost flat again on the dow with s&p and nasdaq improving as we approach the close. shares of twitter tanks today, the social media giant missed on earnings and revenue this morning and gave light guidance citing product issues and advertising head winds goldman sachs downgrading the stock to neutral and slashing its price target by 30%. mike, a big on gold here for twitter. having started to show some signs of recovery over the course of the year >> it appear that ay there's not a very deep reservoir of trust also i think it inevitably kind of convinces people even more that facebook is so effortless in how they do this. mark zuckerberg was in congress

essentially because their platform targets work too well and because it's so magical in terms of leveraging the ad potential and that's the contrast that always hung over twitter. >> you look at shares of snap, stephanie, those are higher today. almost like they are taken initially by the street asi sais way overdone in territorial of the reaction it will take a couple of days to settle itself out. you have the olympics and elections next year. the 2020 set up is great now that the stock has derated and pulled back. so that's why i said before i'm going to look to maybe buy it back but i want to wait for the dust to settle this is a big move >> let's get a check on industrials where we've been seeing some big moves. >> reporter: watching the industrials closely after 3m's earnings disappointed the maker of post it notes cut its profit

outlook due in part to the ongoing weakness it's seeing in china where organic growth was down 9%. analysts say gaining market share in the country is becoming a bigger struggle for 3m as china's economy slows down and at the same time competition from chinese players is making it harder for the industrial giant to win new business and, guys, this is a problem for the broader sector the big question is what's motivating the chinese to select domestic suppliers is it simply a pricing story or and perhaps more controversial a rise in nationalism? incentivizing them to go with local players. >> thank you very much mike, we mentioned boeing holding up well this week. cat as well. 3m not doing so. two out of three ain't bad >> it's what markets you're exposed to industrials etf are at an all

time high. not telling you that the entire sector is in a macro crisis. >> inning too how much the auto piece of this is playing out especially where china is concerned. whether it's 3m or even names like texas instruments, for example, with some of the guidance and numbers we got there too. >> 3m said the consumer was very strong health care and construction we know those end markets are pretty healthy maybe construction is a little bit iffy they said good things about those end markets and clearly electronics and auto just really bad. that's why dupont is down so much because they have a big exposure >> just over five minutes left of trade s&p 500 is up .2 of 1% the dow is down 11 points. perhaps it can improve enough to go positive. nasdaq leads a charge of .08%. after the bell we'll get results from intel, visa, gilead and alaskan air. we have a preview of the big

one, amazon. >> reporter: here's what the street expects from amazon 462 on revenue 68.8 billion a jump of 22% on the top line. yes checks indicate healthy u.s. ecommerce spending trends throughout the commerce but highlights a couple of issues of concern that amazon continues to invest a lot of money to reach one day shipping goals how much does that weigh on profit margins the growth rate for aws, 9.1 billion. that's a jump of 37% same growth rate as last quarter. guys, back to you. josh lipton, thank you mike santoli, where to start first with amazon? >> well, i think the place to start is that the stock has been very much sideways, very far below its highs. that would argue for perhaps the potential for people looking a little bit on the bright side, depending on what we get later that's been pretty conspicuous

among the big tech stocks amazon have been stuck in place >> we've seen this company put so much money towards transportation and logistics and this whole push for one day shipping in the last two quarters if those numbers come in higher than expected do you think the street foregives that coming in to the christmas shopping season >> the stock has lagged on the fangs. it's more about aws and what they put up relative to microsoft. that's number i'm watching in terms of margins, because they are spending so much money on travel and all that kind of thing, i'm expecting kind of lower margins. >> what are you looking for for intel? >> data center recovery. pcs are strong that's the outlier really whether or not they can see growth in data center after a collapsing over the last two quarter. mike has more on the market internals today. >> the market itself, has been

fighting it around the flat line there's a little bit of a give back day in terms of overall volume split but check out the new highs and new lows on the new york stock exchange. this has been one of the stronger point of this market. new highs versus new low, there you go, better than four to one. check in on the software versus banks. this is a concentrated version of growth versus value you had a little bit of a slippage in this trend banks outperforming for a while right now. today you have just about a four percentage point compression of what's been that spread. still banks have the lead. we'll see if this lasts. >> softbank is the tech sector >> tech distinguishing everything else. everything sells flat to down. >> semi story? >> land research was very

encouraging. the recovery by a quarter. i think that these stocks are still very attractive. i like adi i lone broadcom. >> we got two minutes left of trade. s&p 500 is up about .2 of 1% nasdaq is sitting near session highs and leads the major indices. let's get over to bertha for a breakdown of the movers. >> reporter: nasdaq 100, in fact, is within 1% of its july high and one of the stocks that has kept it sort of hemmed in away from that new high has been microsoft. it's been kind of stuck a bit, particularly in this quarter earnings better than expected. and fears about slowing growth and terms of cloud and as you're kind odiluted a bit, they saw slippage from last quarter same story in the chip sector.

researchers lifting the entire sector and hitting the macro notes and knock down those fears. lam research said china saw higher than historic activity there particularly coming from local chinese companies. e-bay meantime tufgsly performer in the tech space in terms of earnings although it was in line, it's guidance was disappointing, you can see they are down 9% over to bob pisani >> thank you, bertha i want to hear from visa after the close. consumer folks, darling of the space, major player of the u.s. consumer the engine of global growth the u.s. consumer. credit cards have been a big bright spot for banks. good growth. visa has had 20% earnings growth, 10% sales growth annually for the last several years. look at the stock up 33% this year elsewhere, today mobile payments they are growing fast as well. paypal rallied 8% today on its strongest

quarterly results in at least a year mobile payments seeing huge growth paypal payment volume up more than 60% over last year. there's the close bell basically flat on the dow. 3m was a drag all day. once again the s&p 500 rallied to teen close. 3,009. only 16 points away from a historic closing high on the s&p. welcome to the close bell, everyone i'm wilfred frost. >> i'm morgan brennan along with mike santoli we're in the market zone you can see the day's market action on the right side of your screen with the stories still coming up on the tabs at the bottom of your screen. >> let's check in how we closed. nice rally in that final hour of trade taking the s&p 500 .2 of 1% of gains. dow below the flat line. nasdaq and tech sector led the

charge up .8 of 1% >> tech sector up 1.5% busiest dave earnings season coming up we'll get results from amazon, gilead n-tell, visa and alaska air stephanie link is still with us. tim lesko. good afternoon mike santoli we ended off the loss of the session, but mixed picture. s&p up >> nasdaq closed at the high if you look at the chart in the intraday the instincts were in play every time we went negative on the s&p it got picked up the message has been the market is firm. it's steady. it's looking for areas of traction kind of declining he some bigger opportunities to pull back more sharply. so i think that's all to the positive although today the

index has performed, why the stock people have been rotating out which is the big tech growth software stocks had a little bit of a come back >> tim, what's your take as to overall level of bullishness right now? >>i think what you're seeing i that there were some big bearishness across the cyclicals. stocks traded well when you get good news from a bellwether like microsoft it starts to drag the market up >> stephanie your thoughts on the nasdaq and southeast big moves or outperformance we saw there today? >> good earnings are getting rewarded they've lagged over the last month as value has outperformed growth what's interesting, though, is defense stocks actually acted very well today. northrup grummann missed the number then up on the day that defense stock trade with the growth stocks if you will so it makes a lot of sense.

but, obviously, a lot of dip buying in defense for sure >> just to finish off on this quick, certainly when you're talking about weakness in industrials and names like 3m one pocket within industrials that held up or manufacturing continues to be strong and revenue grow are these defense names. >> we're waiting for the haul full break down on amazon. we got an after hours move about 5% to down side on amazon. we'll bring you the full break down mike, back to the broader markets there's been some help from overseas. >> for sure. >> in term of the positive -- >> that's part of the backdrop the german equity market kind of breaking out obviously yields lifting a little bit overseas as well as emerging markets doing better. there's been this attempt to say we're emerging from that growth scare of late summer and capital markets are sending that message. >> you can see amazon down 6%.

josh lipton has been diving into the numbers and has a break down on amazon. >> reporter: amazon reporting here eps of $4.23 versus expectations of $4.62. revenue 6.98 billion street was at 68.8 billion to q4 guidance, 80 to 0e68 billion that's light versus expectations street was around 87.4 billion aws revenue 9 billion up 35% guys, back to you. thanks so much 35% aws comparing to yesterday 60% year-over-year growth. but mike we're clearly revenue essentially in line, big eps, revenue guide soft >> the revenue guide is the eye catching thing the backdrop is that the line for amazon is usually pretty conservative about guiding revenue and, in fact, it's a ridiculously wide

span if you think about it $6 billion, we're already a month into the quarter so to me that's not a positive for sure but aws accelerating and missing on the top line is probably also weighing on the stock. >> tim your initial take 35% growth for aws do you think ultimately it will be good enough >> well, i think there are a lot of businesses out there that would love to have 35% growth. maybe it's a case for expectations got high. aws is the cash cow that continues to fund the rest of amazon's growth. the end of the day they will need the to start showing some earnings and this is clearly a margin compression we have to look into. >> mike i know we don't typically focus so much on the bottom line with this stock but after a quarter, those stocks, does that stock more of a factor to them or still many years away from a reasonable pe multiple. >> they can dial it up and down

enough that there's not a concern that the model itself is broken it's about case of investment and things like that i don't think it's about the eps miss as much as it is, you know, aws kind of maxed out. much more competitive market that changes the complexion. changes the multiple the market is willing to assign implicitly inside amazon. >> aws softer than microsoft's growth yesterday microsoft performed very strongly market was up 2% leading the tech sector higher another earnings report out. intel. >> this stock is up some 6% after hours. that's because they got a beat on the top and bottom line intel turning in revenue of 19.1 billion versus 18.05 expected. turning in nongap earnings per share of 1.42 versus 1.24 expected also on the guide, q4 of 19.2

billion. it's about the same as this quarter. better than expected also earnings per share of versus $1.21 expected. intel also raises its full year outlook to $71 billion on revenue. that's up 1.5 billion from where they were in july. raising to a $4.60 nongap eps. intel's board approving $20 billion additional to set aside for stock repurchase in the quarter that they are reporting now, they did use $4.5 billion for repurchase i know stephanie link was looking at the data center group to see how they would do pretty much every group i could see outperformed the data center especially, $6.4 billion in revenue for data center here and the client executing group personal executing also slightly higher but data center we only

expected maybe or our analysts did about $5.6 billion from that group durng in turning in 6.4 i'll talk to bob swan after the call you can see that report tomorrow >> stephanie, the numbers really good >> really good data center is telling me that they are spending more actually decelerated the last couple of quarters that's a good sign pcs we expected that to be good. that was better than expected. stock is cheap at 11 times i see why it's up. >> six or seven moves in opposite directions for amazon and intel. talk to us about the set up for each stock coming in >> intel has been a little bit -- well below its highs in the high 50s hit twice in the last couple of years expectations were modest i thought amazon had relatively lower expectations as well

just based on how the stock had really not gotten much altitude. obviously the market was expressing some kind of concern of what was manifest in the aws business we have no idea how it will wash out. the overall market like the s&p, etf is not showing like it will have much of a reaction to the amazon miss and the stock going down we'll see if the overall take can continue to absorb the noisy earnings report. >> see if growth can outperform value. >> your initial take on these intel numbers. you've made the point that this is a stock that's looked cheap for some time. what are you looking for in the report and the call? >> the stock has been cheap trading at a low teens multiple at best. it's considered old tech the street really made a mistake 16 months ago when it assumed all that server busiest was going to amd

what we're seeing these long term contracts and intel is still the behemoth in the business this is a really good report and real sets the stock up as it moves past $52 a share we're pretty bullish on the call we also want to hear on the earnings call what they are talking about for capital expenditures because that's the next leg in this, how much money do they need to spend to stay current. >> all right mike santoli -- >> the one thing i was going to add with regard to inconsistently way the semis today bounced back from the miss of texas instruments yesterday that was a net positive the whole group didn't decide it was game over. >> a lot of texas instruments specific that's why they bounced. lam had a great number it was very encouraging. >> more earning out. gilead, mike heg ferrell has the

numbers. >> reporter: coming in at one cent ahead of estimates at $1.75. adjusted earnings per share. revenue came in dlarts 5.6 billion. for gilead it's all about its different drug franchises. on the big hiv drug front basically in line 4.2 billion for the quarter versus consensu of 4.9 he hepatitis drugs came in light. for full year guidance company raised the bottom end of the range they are looking for up now to 21.8 to $22 billion you are seeing gilead off by 1.5% perhaps on the miss on the hepatitis revenues hiv drugs overall did meet consensus. thanks very much for that

broad final comment, steph on earning. what are you taking way from this that value growth >> value growth debate but also stock picker market. really truly you got to get them right other wise you'll get your head handed to you lam was fabulous, twitter was horrible let's see if the reactions are what they are. if you get rewarded. >> 77% move in opposite directions stephanie and tim thank you for joining us great to see you both. up next, we'll have much more on amazon's earnings. keep it right here "closing bell" is back in 90 seconds.

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welcome back amazon earnings just out the stock take a big plunge after a miss on the eps line and disappointing guide on revenue this quarter's revenue was slightly above estimates the company trading lower by 8%. let's bring in two analysts who cover this stock tom, come to you first your immediate take? >> my immediate take is that pressure on earnings in the third quarter was likely a reflex of their ramp of one day shipping and content spending for amazon prime video softness in sales guide for fourth quarter may be partly due

to the fact you have a late thanksgiving so time between thanksgiving and holiday is compressed otherwise i would be looking for more details on the earnings call on the fourth quarter sales guide. >> right your take? >> good q3, gad q4 guide the big investment in one day deliveries really weighing on the story. no way they can offset these expense. it's manual. can't deliver packages any quicker, more efficiently. so many of the logistics expert point to short term there's a big investment mode. amazon was going through harvest mode now we're back to investment mode. many investors are seeing wait and see until they get out of this investment mode for these current investments to pay off remember, typically amazon is pretty conservative. they did beat the top line and bottom line this quarter relative to our numbers. effectively they've given conservative guidance. our belief is that they will

surpass what they typically say, but that's going to continue to weigh in the short term given the investments they are making. >> tom, 35% growth in aws represent as deceleration. how concerned are you about that and what does it mean for the competitive landscape and cloud? >> i think you're seeing better performance out of microsoft and to a lesser extent out of google it's a tougher competitive set for cloud. on the profit side, though, they still have more than $4 a share in earnings and the three big top drivers besides aws is one is contiguous and mix of third-party retail so, yes, the decellular ration is sequential for cloud is concerning but still a big profit driver along with third-party retail and advertising and you still have four bucks plus a share in earnings >> in term of the advertising numbers, i realize we're still getting all the details here and we'll see what happens on the call hour are the advertising numbers moving forward especially if

you're seeing a more sustained des deceleration cloud >> advertising is really important because more people sell online they have to actually advertise to get their products well-known. so we think the advertising business is early, but it's going to be in great shape over time we've spoken to many advertisers that are saying they see massive return on this vefrmt and you'll continue to see those that don't even sell on amazon begin to advertise on amazon. i got a jeep ad the other day and last time -- i don't think i'll buy a $25,000 jeep through amazon.com but direct you back to their site. this is a really important way that they are going to diversify their business and effectively can sell other things than just shampoo and bar soap in going into automobiles and other

expensive items as we've seen the advertising coming through on the system. >> what's your top question ahead of the earnings call you need answered? >> they've been overspending on the one day delivery so last quarter they got over 100 million in one day investments. they say they exceeded that. the big question is on the guidance again they effectively torched the guide relative to where the street is at how much will go to one day, where is the other dollars going is on investors line the bottom line is the biggest concern at this point. >> thanks so much. thank you. visa earnings are out. we got them. >> there are visa across the board. visa reporting eps adjusted $1.47. that's higher than the estimates of $1.43 revenue coming in 1.64 billion payment volume up 9%

year-over-year process transactions up 11% year-over-year to 36.4 billion for the fourth quarter the company announcing a quarterly dividend increase of 20% to 30 cents per share. the stock is higher by 1.5%. the conference call kicks off around 5 p.m >> thank you mike, what do you think? stock is up 2% by now. >> 2%. >> up 2% great poerm. the reason that visa has close to 30 times price earnings multiple is because of steadiness and predictability. they delivered on that the only question is not stop of macro but whether the stock becomes too much of a consensus kind of darling. it shows at times that it has a risk of doing that the response here shows it's still a few bucks to the all thyme. >> up 2% for visa. big once intel and amazon moving in the other direction up next we'll break down alaska

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welcome back another earnings alert alaska air phil lebeau has the results. >> reporter: much like we saw with southwest and american earlier today they are beating the streak alaska for third quarter coming in well above expectations earning $2.63. revenue coming in sleight above expectations at 2.39 billion and revenue for available seat that's a key metric to focus on slightly higher than the previous guidance from the company up 4.5%. previously they guided for an increase of 4.4% i know you'll be talking to brad tilden in a few minutes. i'll be interested to hear what he has to say about 737 max. it has been part of their plan for second half of 2019 going into 2020. >> phil, that's the perfect lead in thank you for bringing us those

numbers. for more on the results let's bring in alaska air ceo brad tilden who joins us by phone the 737 max as phil just mentioned you don't have those in your fleet but had them on order. how closely are you watching the situation and what does it mean for those future orders? >> we're watching it super closely. we didn't have any maxs in our fleet at the time it was ground but we should have three delivered by now seven or eight coming next year. we're watching it very closely like everybody else. >> talk us through this quarter's numbers, brad. clearly this share price slipping a little bit despite a good quarter backwards looking are you giving out some guidance that might be a little bit soft? >> no. i'm not sure what you're seeing, but we actually felt really, really good about the quarter and felt good about our guidance going forward. our margin was 17.6%, almost

18%. we think that will lead the industry we're feeling good about our network and revenue production my own sense our guidance was fairly positive going forward. >> brad, to dig into the seat mile, more what's driving that and i guess based on that what's your read on the consumer? >> i think as you guys know we were bought first as american. that gets you focused. that's behind us now our commercial theme is doing an amazing job. what drove the revenue improvement getting the right airplanes in the right market. we're doing things with fares particularly first class cabin and premium economy. we rolled out saver fares which is hugely beneficial >> talk us through about ending the partnership with american, code shares and alliance points. >> you know, these things move

around a little bit from time to time alaska, we've grown 7% a year for the last 20 years and for the last, we've grown more than that for the last five years you start with that much overlap with these partners and then you have overlap people see the value equation differently. we don't see much if any impact from the loss. honestly it was 3% of our awards were on american metal at this point where our customers are going we have 90% ability to serve them ourselves. candidly while we had the american loyalship of american it dwindled down we see the impact as pretty minor going forward. >> brad tilden, thanks for joining us on the heels of this earnings release from alaska air. stock is trading right around the flat line in after hours trade. >> thanks very much. o up next, kara swisher weighs

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welcome back let's send it over to mike important third installment of the dashboard. >> let's see where the pendulum swings between fear and greed. sentiment charts first individual retailers first for much of august and september i pointed out about how people were pretty bearish. low bullish readings and high

bearish readings now it's recovered back to more normal levels. i would call it neutral right here you have bulls back towards the historical average as well as bears. you see it's not a clear signal. only when you get to extremes. market based dynamics. the this is the cnn fear and greed index. a lot of market index of behavior of actual parts of the equity markets and credit markets. i would call this neutral. a little bit on the higher side but this is when you see it's a pitch when people are too panicky. no edge but harder to argue that everyone is too skeptical or pessimistic right in the short term >> yeah. good perspective thank you. time now for cnbc news update with sue herera. >> hello, morgan, hello

everyone bpete buttigieg is gaining ground >> like any campaign we make sure we anticipate any attacks that might come our way. i guess we're doing well because it seems more heat is coming towards us and that's an indication we've advanced and i'm sure there will be more we succeed there will be more pressure but we're ready >> according to a media report popeye's will start selling their popular chicken sandwich once again by early november sun holdings which operates about 150 popeye's location will start offering the sandwich in florida and texas. when it was originally released in august popeye's ran out of chicken and sold out in just one week the public paying their respectives to anthony kumpen who is lying in state in the u.s. capitol where he served for 23 years anthony kumpen died last week at age 68 from complications related to long standing health issues you are up to date

that's the news update at this hour back downtown to you sue, thank you very much now mark zuckerberg, the ceo of facebook was grilled on capitol hill yesterday highlighting a number of controversies surrounding the company from backlash over ad policy to reportedly unfavorable conditions that facebook's content moderators work under. >> would i be able to run advertisements on facebook targeting republicans in primary saying they voted for the new green deal i'm trying to tuned balance here >> i don't know the answer to that off the top of my head. >> you don't know if i can do that the >> would you be willing to act as a contend monitor, to have that life experience >> i'm not sure it would best serve my community -- >> mr. zuckerberg, i'm claiming my time. mr. zuckerberg your saying you're not dwufbld content

monitor? >> no, senator >> you're not willing to do it let's talk more about zuckerberg's performance plus some of these massive tech moves we've seen in earnings reports this evening and this week is kara swisher good afternoon do you think there was a lot he heavy punches on zuckerberg? >> these issues are complex. i wrote about this in the "times" today. these are complex issues facebook has tried to make it binary you're either free speech or again it they try to make it simple and they are not simple. with what these two congresswomen did is break it down in real terms would you work it as a content moderator can you place ads with lies >> the interesting thing about that it's much more focused on the debate about whether facebook should be classed as a

publisher and responsible for the accuracy of the posts as to what is usually lynn the cross-hairs which is antitrust are they too big or privacy. this is a separate debate that gets less focus. >> it's all systemic it's a systemic thing of the power of this platform to control media, control communications and what responsibility it has and what responsibilities it doesn't have and what guardrails should be put in place same debate about the size of this place run by one single person in a duel class system who makes all the decision they went right to guy and asked tough questions. >> it seems after six plus hours of testimony, this is a company that has credibility issue we talked about it over and over again on our air the libra piece of it specifically the reason why he was testifying in front of this committee do you think he made, i guess a viable case here would you expect to see facebook and the libra association move forward with some sort of coin >> i think it will be a lot less

so you saw those payment providers coming out difficult for facebook to wade into currency. it's not currency or crypto currency it's a tough sell. the only tougher sell is facebook dating. it's the trust issue mark zuckerberg talked about in the opening thing. people don't trust us. that's an astonishing thing for a ceo to have to say they have to rebuild trust before they move more aggressively and do something. >> do you thing that regulatory work will come soon. there's a lot of focus perhaps some good punches landed but we never see any action. >> this has been the toughest time there it's a series of thing that will happen i think someone is working on the privacy bill some sort of prevention bill that facebook is subjected to. over at the justice department, working on an investigation, ftc is having an investigation

these things take time they have to collect information. the wheel is spinning. you know it the took a long time for microsoft to be subject to lawsuits >> when you say that he suggested it's black or white, free speech or not, too hard for us to draw some sort of line with shades of gray. how should they approach that >> all there are, are shades of gray they want to make it black and white. if you're not for facebook you're not for free speech what if you get drawn into a conversation like that it's too binary this is not a ones and zeros argument the question is maybe they shouldn't. maybe we should have that debate maybe all of us as citizens should this is one company that controls billions of people run by one person. that has to raise some flags for everybody. it does for me >> one more in around wework, and not focus on wework but softbank how much pressure do you think they are under do you think there's a major

potential blog around the corner for softbank >> this was a face saving move on their part to do this and cram everybody down. it's even more than a cram down. i don't know what to call it it's not a restructuring the money they gave to adam n neumann will be a long slog. it's a tough business and they had to save it for now and the lender of last resort seems like situation. >> great to see you. thanks for stopping by up next amazon shares sinking while intel is rising. we're back in a couple of minutes. ♪

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♪ ...owning and running the biggesta small business is finding the right people. in hiring our first recruiter, we decided to post a job on linkedin. they had to have worked... ...at a recruiter firm and be bilingual. when we saw ana maria's profile... ...she had a ton of experience in hr. the interview went really well. and she seemed like someone who could really sell mckenzie to perspective employees. we found the best person to find the best person for us. post a job today at linkedin.com/grow welcome back it's been a wild after hours earnings session amazon shares sharply lower after missing profit forecast. intel jumping after an earnings beat and stronger than expected fourth quarter guidance.

visa beating on the top and bottom lines in a ge lieed a is lower after a sales miss >> reporter: morgan, it's a bit of a surprise and nice pop from intel looking across at what exactly did well for them. the data center group did stand out. and that's a group that had some trouble a few quarters ago another group that stood out versus expectation was the pc centric business ccg. it was down 5% in the quarter. but the mix was good intel said. so that helps your margin. you got to wonder a couple of things that might not show up until after the fourth quarter we were talking just last week about all these projections about an i.t. spending slow down in 2020. intels profit technology chip manufacturing are they going to be able to catch back up, retake the lead in process manufacturing versus rivals those are some things that i

expect analysts will be asking intel about on the call and those might enhance the high that we're seeing from this after hours action or perhaps put a further damper on it we were up as much as 7% or more after hours. now at about 5%. >> a bit of a surprise and a nice pop apt description for the earnings and that turtleneck as well, jon. thank you very much. up next wall street's worries. democrats giving their take on the presidential candidates on their ideas for a wealth tax that's straight ahead. performan. where a rising middle class powers a booming auto industry... a leap into the digital era draws youthful populations to mobile banking and e-commerce... trade and travel surge between emerging markets. every day, our 1,100 investment professionals around the world search out opportunities for alpha. partner with pgim, the global investment management businesses of prudential.

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agents are standing by, so call now. amazon reporting results earlier this hour shares are down around 7% after a big eps miss and late fourth quarter guidance take a look down there down 6.5% awaiting more details from that call aws in focus spending on their delivery network and so many other things >> meantime presidential candidate senator elizabeth warren has received praise and criticism from various corner of wall street on her ideas of a wealth tax hedge fund manager doublinged down yesterday saying quote i believe in a progressive income tax and the rich paying more but this is the f david starr star american dream she is s david starr star on. they called it instantity that

billionaires feel like victims they see her softening her stance a little bit. >> she's pivoting. her recent language is a lot softer than all billionaires cheat. people complain during obama administration, they are going to kill us with taxes. eight years and the rich got richer not one of my friend net worth went down. >> bank of america out with a note that supports that sentiment. that he analyzed her recent statements quote mentions of wall street have fallen dramatically while mentions of health care have skyrocketed. we main market weight health care on the ongoing regulatory pressure financials looks far more attractive health care and tech have received bipartisan scrutiny in terms of that general sentiment i had an off the record with a ceo of the major banks recently, and it was sort of similar to suggest, look, we

do all accept there's been growing inequality particularly since qe and rebasing that would make sense the question is how and does it go to the extreme. if because of a balanced congress the extreme is taken off the table then it's slightly different in terms -- >> the prediction market are still saying at least 75% the senate remains republican. in which case you can have a lot of soaring rhetoric about exactly what you would do to target wealth and it probably isn't going to be in legislation. remember early in obama administration where he made a quick reference to fat cat bankers and certain people got their feelings hurt. others said that will mean more regulation on a net basis didn't restrain the build up of wealth that we ended up getting despite -- >> i think when you come back to the banks themselves, it is very, very hard to imagine you go back to a 2008 environment wherefore the next probably six

years, costs relating to regulation went up and up every year there's been a plaing to and falling in the last couple of years. i don't think you get the same lump on in terms of negative share price type action on the banks, even under -- >> you hear the loudest objections from billionaires outside, talking from a corporate perspective. >> yeah. health care, of course s-a bipartisan issue i'm sure we'll hear about it regardless who ends up in congress or ends up in the white house. up next, mike santoli has a look at current investor fun clothes. >> an out-of-this-world ipo. find out what's expected virgin at nntic is expected to list th'sext on close bell.

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over to mike santoli for his final dash board of the day. mike. >> morgan calling this ebb and flow and we looked at short term indicator how investors feel and act process. this is longer term flow of actual funds from goldman sachs. look first of all, this is monies flowing in and out of equities relative to bonds and

cash so when in line was going up, right after the financial crisis and the bull market started this is money rushing into equities from bonds and from cash then you see the trend since then, it's been steadily lower the percentages are as a percentage of the assets under management in these different categories so obviously you saw an uptick in 2013 hitting all-time highs but in general it's been a steady bleed of assets out of equities on a net basis. at least out of equity funds but look where that leaves investor portfolios in aggregate in terms of asset allocation to the differentiate categories on top is equities it's still healthily weighted .market itself going up and it seems investors are steadily skimming but allowing the market to appreciate and the rest are pretty steady i would say obviously it doesn't add up to 100 because people own other things the bullish interpretation is the equity allocation below where it was in recent peaks

maybe people aren't over the skis but it's a warning of the weekly fund flows saying everybody is rushing out of the market. there is a structural issue. exiting mutual funds and publicly available data for funds. >> equity actually went below debt in 2008 that's amazing. >> exactly that was the market effect of course. >> right, of course. even still equities overall that's like wloe 50%. >> in the mitt 40s. >> that's a long long-term ample healthiy level. >> this is the a retail average. >> 95 appear over. >> somebody has to own the bonds. literally you have to measure. >> right. >> they have to be allocated somewhere. >> virgin galactic become the first space tourism country to list on the new york stock exchanges. the full-time details are next

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a central question for investors is the bottom line guidance well below the street the question is where is the money going? the truth is a lot of the money is going to make good on the promise of one-day shipping for prime members. that requires a lot of investment osasky making it clear that's smart investment in his opinion. a lot of costs in the short run, the expenses to make good on the promise be, new transportation capacity, new costs for warehouses at company's point is they think it's a long-term smart bet he says it's paying off already. he said a good lift and increase in purchase behavior from prime members. he says they're buying more products and more often. in other words, they think this investment this new boost in investment though weighing on the bottom line is where they need to be i also asked about aws, the cloud unit, obviously a big profit driver for the company. at $9 billion it came below where consensus looked for and the growth rate at 35% did tick down there sequentially i did ask ryan about that.

he said they were happy with the progress it's now aws on a $36 run rate up 9 billion year over year and aws leads the industry in usable features and products. guys, back to you. >> josh, thanks very much. down 6.6% is amazon stock. looking ahead to tomorrow we'll get earnings from a bchblt and and bet, bark collar averizon keep an eye on those. >> come monday private space tourism virgin galactic trading on the stock exchange. spee firps company publicly traded. shareholders approved the with the special purpose vehicle social capital and deal gichg the $1.5 billion valuation is expected to close tomorrow watching for that as well. virgin galactic air launched space plane can carry six

passengers and two pilots. ticket price $250,000. service expected to start next year more than 600 customers op the wait list. company has gearing up and reeflgd underarmor designed space suits. beginning to hq space sport process mexico a couple months and recruiting a new investor in this which is boeing guys this is going to be one to watch. it's a real test for this new space economy. >> well, earlier there was a read and it said the first public listed space company you changed it i noticed and said commercial. >> commercial human space flight company. because we had publicly traded space companies. >>reporter: there have been satellite launch companies and out there. >> this has gloss around it. >> absolutely. >> and could attract people wanting exposure to this. >> and if the story is the near term hypersonic hypersonic travel will be one of the big things that the company is starting to talk about.

>> exciting and cool graphics we get to play there as well. mike, main markets, back to them keeping an eye on whether amazon drags. >> seeing if neck absorb the amazon hit as it's shone the ability to absorb the one off earnings misses this zbloonz out of time on "closing bell." thanks for watching. >> "fast money" begins right now. live from the nasdaq market site overlooks times square. f2 this is "fast money." i'm melissa lee traders tim seymour. karen finerman and guy adami and joined by mark tepper president of strategic wealth prrnlts. the businessest day of the earnings season in the books visa intel, gilead on the radar tonight. we have the latest from each on the quarters but beginning with the stocks to watch in the after hours that would be azmodan. the tech giant falling hard offer a earnings miss. we have full team coverage stapg by to break down results gene munster firing up the red phone in minneapolis we kick-off with