>> very interesting there. joe dennardy of steefl, thank you very much. and catch our interview with american airlines ceo doug parker tomorrow at 10:30 they have grounded maxes that is a big one. that does it for us today. we'll see you tomorrow "power lunch" begins right now. >> welcome, everybody. i'm tyler mathisen and here is what is new at 2:00 on "power lunch. stocks are off the highs of the day as you see right there but they are still modestly higher the dow climbing back as boeing is making a little bit of a comeback midday. we'll talk about that one? and the stock almost positive. and phil le beau with comments from the new ceo and meg tirrell with the latest on the mysterious coronavirus and it is spreading in china and it is hitting our shores here.

"power lunch" starts right now. good day, i'm contessa brewer, let's get right to it with boeing recovering after being down more than 3%. phil lebeau is following the twist and turns, what do you have. >> the reason they are rebounding is because ceo just wrapped up a conference call and said we're not cutting the dividend or scrapping the max, we still believe in it the questions that he received revolved around the latest time frame from the company saying it is mid 2020 when we expected the ungrounding by the regulators and why did they make that change here is calhoun talking about it. >> our customers who have really important fleet planning decisions to make, all of whom have reached out to me over the last couple of months to tell me that it's getting to be impossible can we please have something that we have a little more confident in and as you might

imagine that has something to do with the new schedule. >> so what was the trigger why did they p push it back to midyear? because they made the decision simulator training is requiring for pilots who will fly the max in the future and once they made that decision calhoun said we automatically had to say, let's come up with a more realistic time frame also he said that in talking with employees, he's out in the seattle area today, it is clear that their confidence is shaken. in terms of whether or not this time frame is realistic, he said that is the key here this is not about trying to set some agenda out there as quickly as possible for getting the plane back in the air that can't be met calhoun talking more forcefully before -- about that. >> without a realistic time frame around how this would ultimately get recertified we kept creating a bigger problem for ourselves and you're right it is hard for anybody to trust us and everything looked like a surprise >> a couple of other pizzas -- r

pieces of news, they plan to get an indication that it is time to perhaps start up the process again in terms of building planes, two they will not cut the dividend he was asked why, we have the testimony where withal and there is no within and when you look sat whether or not the max will be scrapped and i know this idea is floating around he said no, they will not ge rid of the plane and they believe in it and they have too much invested in it and even though people have questions regarding what happened over the last 15 months one of the customers, united airlines i talked with the ceo oscar munoz and he sent it wouldn't happen this summer and they reiterated that during the conference call. so the max is off for this summer, could it be moved up if things go better with the faa and regulator, sure. but that is the plan at this

point. united saying it will not fly the max this summer. >> so many questions so little time here. phil, there are analysts who are trying to game out in the big picture what this will cost boeing, $20 billion has been thrown around, did he talk about it at all? >> no. he saved almost everybody question and -- and they said off the top, we have earnings next week and in a quiet period and we won't get into that and he said we're not going to cut the dividend that is the only financial question in terms of the charge, it is out for weeks and expected that they'll announce a type of a large charge whether or not that is $5 billion, $6 billion. that remains to be seen. and largely it depends on their confidence of how much they're going to have to be paying airlines as well as others involved in the max for this plane being out of service, what, for the last 15 months, ultimately about 18, 19 months that it is out of service. >> phil, thank you for that. >> shares of boeing are still

down about 6% this week. as the aero space giant melez continues. so is there nor pain ahead for boeing let's bring in jim hall from the ntsb and chris holland at long bow research, he is bearish on boeing lowing from 300 to 280 and with your forbearance, i'm going to ask questions to chris first this time. you heard phil le beau saying the chairman would not go to the question of how much money this debacle is going to cost boeing but i assume you can how much is it going to cost them and what kind of charges do you expect them to take and why don't you just walk through some of the numbers >> so today we issued a record that suggested the total charges that are visible amount to roughly $8 billion however, that would not account for any type of airline compensation that still might be

issued as well so our modeling is eight now but it could be as high as $13 billion and that will force the company to look to raise debt in the next quarter. >> so he said he was going to keep the dividend because the company has the financial wherewithal to pay it. is he right? >> our free cash flow assumptions are low. we have them doing about $2 billion for 2020. so if they're not going to cut the dividend, they're going to need to raise a considerable amount of debt so that would be the question and how investors react to that. >> so finally what the impact on earnings per share in 2020 what does your model say. >> i think there is two issues out there now ahead of what we think is the kitchen sink issue next week during the conference call the first is a much later than expected starting point for the 737 max which we assume for august now, but what i think investors are not accounting for

is when production does start it will be somewhere around 21 to 28 units per month which is below the 42. and that drives our earnings assumption to about $10 per share but it could go lower based on the account -- >> $10 down from what? what it would have been. >> it was around $17 per share at the beginning of january. >> let's talk about how these planes get back into the air when you hear calhoun, jim, say that it is not a wiring issue, it is not a software issue, that it may be an issue of getting the pilots trained on a simulator, how do you factor that into what your expectations are for returning the max to service? >> the way we look at -- >> sorry chris, go ahead. >> well i think -- it is a credibility issue from the very beginning. and that started right after the first event.

and i think the chairman is right, i mean, boeing has cried wolf too many times and he's addressing the credibility on wall street. but i think he needs to also address the credibility with his own employees and with the flying public. and i find that gap is bigger than he likes. >> but do you think he did that when he said he got down on the ground and that there has been a hit to the anxiety of the employees there in washington state. >> that's why i have suggested they ought to bring in ali mallaly the architect of the 777, very successful at ford and passed over by the money changers at boeing sa-- and wen to forward ford i would bring him in as a safety czar and give him the responsibility of rebuilding the safety culture and getting the airplane in the air. >> so chris, as you lower the

price target from where it is today, you had it at 300 i think dollars it was a couple of weeks, and you do not think that the bad news is already priced into this stock. >> i think we haven't heard the worst case scenario when it comes to the 737 max but there are other factors at play for example does boeing need to cut production on the 787 which is not seeing any orders and how do we think about the 777-x which is having its own problems on top of that. i still there is bad news and the stock needs to trade lower before it goes higher. >> what other bad news could still come out of boeing >> well of course we haven't -- heard from the final investigations and particularly from the department of justice so we don't know what all of the ramifications of the

investigations are that have been currently underway. what we know is that boeing has been unable to stop the bleeding we the example this week of the 2009 turkish accident where it had similarities that should have been picked up immediately when they had problems with the 737 max. so it makes you wonder what do they know about safety does the right hand know what the left hand is doing are these comments that were made and distributed by the employees about the dysfunction still in existence. >> so, jim, do i interpret correctly, that you could foresee a scenario where there is criminal charges brought against boeing corporately or against individuals and maybe high-ranking executives there. is that a scenario you contemplate? >> well, obviously i don't know what the justice department is going to decide. all i know is that there is an

investigation underway and at some point there will be results of that investigation. >> jim hall, thank you very much for being back with us it seems like a weekly date and we appreciate it chris, thank you as well markets continue to be affected by concerns over the coronavirus. we have more on the stock impact coming up but first to meg tirrell on what the world health organization is saying about it. >> we are waiting any minute for word from the world health organization as they convened an emergency meeting whether to deck hair this a public health emergency. this is the sixth time they've declared such an international health emergency after declaring it about ebola and h1n1 and those level this merit of concern. what we know now in terms of how many cases, 550 mostly in china and wuhan city where this originated we do have one confirmed case here in the united states. and news from wuhan just now

that they have suspended local transportation out of the city the buses, the subway, the ferry aresult suspended and the airports and train stations are temporarily closed according to local reports for wuhan city this is a city of 11 million people they are trying to stop this coronavirus from spreading and it already went to other countries and there isn't enough known about how it spreads from person to person but the health authority is saying it does spread person to person. >> one of the most important travel weeks is this week of lunar new year and china had said they expected somewhere in the neighborhood of 3 billion trips which is phenomenal. but when you look at the impact, taiwan has said they will not accept tour groups out of wu hab and groups will not stop in wuhan any more which might be in keeping with this. why the reluctance at this point

to do more or is there a sense there is any slowness on the part of the china government. >> the chinese government is being commended more quickly than they did with the sars virus and lessons learned and how important it is to get this done quickly and identify it quickly and moving quickly so they are making a lot of statements about that. but you often hear from the world health organization and in previous outbreaks they don't want to put suspension on travel and trade because that could sometimes deter some countries about being upfront for reporting cases for fear it will impact economies so we're hearing to what the w.h.o. will say today and they make recommendations about what should be done around the world to collaborate internationally to try to stop the spread. >> meg, thank you for joining us >> thank you very much. coming up, much more on the fallout in the markets over that coronavirus. plus more from joe kern's interview with president trump and the president and business leaders are optimistic about the

u.s. economy why not? the do you up more than 50% and since trump was elected and e ar there even more gains out there on the horizon we'll be back in a moment. >> announcer: this cnbc program is sponsored by --

there you're seeing the stocks now it looks like we have -- off the highs of the session

but this major average is up big since donald trump was elected president. the nasdaq jumping more than 80% and both the dow and s&p up more than 50% the president is at world economic forum in davos where he spoke with joe kernin about how he plans to keep up the pace. >> we're going to lower taxes if you want to know the truth if you take a look at what we've done, we've cut taxes in half and taken in more revenue substantially than we did when the taxes were high. nobody canine believe it but we take in more revenue with the big tax cut. you were paying 41% and we brought it down to 21. >> and that is a priority. >> absolutely. one of the reasons i would like to see the interest rates lower so i could pay off the debt. >> those at davos are feeling great where the economy stands echoing the president's comments about the united states and the

consumer here. >> the kpli -- the economy is doing fine and the consumer is strong 70% of the gdp is the consumer and the balance sheet is in great shape. housing is in short supply the economy is up and the wages are up, jobs are up and millions have come back to work and millions more that will come back to work. >> it is hard not to be happy with the economy we have 50 year low unemployment rate in the u.s. and the global growth has held up and the fed has been cutting rates through 2019 and the markets set a record high. >> let's bring in now jim karen, morgan stanley portfolio manager and quincy crosby chief market strategist great to see you both today. so we had all of the data that those thought leaders are talking about to talk up the economy. you're looking at treasury yields why? >> why are yields so low i think part of it is clearly central bank policy has driven yields lower and that has

clearly made a situation in the markets whereaset prices have risen, whether it is equity or high yield but when they by the market, why are yield so low if things are so good in the economy when you ask people, what are the risks that are out there, people will name a bunch of downside risks right away and it is very hard to name the upside risk so there is a skew in the distribution of how people perceive risk and if they believe there is more downside than upside risk they'll go toward the u.s. treasury yield to keep interest rates low and this creates what a call a virtuous cycle and the lower the rates are the higher those riskier asset prices could be like equity and high yield and things like that so that is part of the story. >> the president said in davos, if but for the fed, we could be 10,000 points higher quincy, where do you see the markets going and how does what

the fed does playing into what we'll see in the next three months >> well the fed is obviously very important because we saw the pivot on january 4th of 2019 and that just changed the direction of the markets the only thing that i'm concerned about is if the -- if they stop putting money into supposedly for the repo market there is a question as to whether or not that is quantitative easing or derivative. >> you're predicting a taper tantrum. >> people are talking about -- call it whatever you want. but the feds benz sheet has increased and that provided liquidity is it the only reason the market is up no but i think it is a contributing factor and if the fed does start pulling rate perhaps we get a pullback the market is overbought you don't have to be a technician to say the market is overbought something is going to pull and cause consolidation and profit taking

that is healthy. the underpinning for the market is strong. and that's why we think even with the pullback, maybe because of a pullback, we'll start to see more money coming in from the -- >> jim, i really wanted you to disagree with your boss there, with mr. goreman but you didn't you bought his line. clever move. are interest rates are low because the economy is weak or because inflation is dead. >> i would say in flation is low, not dead. but it isn't going to rise any time soon. and i think this is a big singulairity and i mean this is a point where a lot of information crosses through. low interest rate are driving the asset prices higher. if the rates rise, even a little bit, i think that we can have -- >> froth comes off the top. >> some froth comes off the topper for sure. >> i want to add that even though the summer we had $17 trillion in negative

interest rate and it is only $11 trillion, money is still coming in from overseas. the german 10-year bund is up, hoping to go to zero and i think it is minus.2% and money is coming from in pension funds and insurance companies to get a yield in the u.s that pushes the yield in it is not referendum. >> where are you finding opportunities right now, quincy? >> well in the market we're broader than just the u.s. market if the dollar stays in the lower range, trading range, it certainly is helping emerging markets. and if china comes off the bottom which we expect some green shoots, that also helps emerging markets. >> what do you think, jim. >> emerging markets for sure and the yield, even to the triple c's and single b's where the juice is in the fixed income

markets. emerging market, that is a boost as well. and i'll dare say the auto sector i think the auto sector is starting to -- as long as the consumer stays strong, it is a pocket of weakness and we think that could have good returns. >> jim and karen, thank you for joining us. chip stocks are breaking records three days in a row of new highs but if history is any indication, the group could hit the brakes and we'll explain why. plus president trump weighing in on elon musk, tim cook and mark zuckerberg we'll hear what the president lkg. that has all of wall street tain much more "power lunch" is ahead. and when you open a new brokerage account, your cash is automatically invested at a great rate. that's why fidelity leads the industry in value while our competition continues to talk. ♪ talk, talk

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see your future at esd.ny.gov. welcome back to "power lunch. i'm seema mody here at new york stock exchange we're watching the etf rallies for a third consecutive session ahead of texas earnings tonight. and let's bring in matt. i'll start with you. the sector is up 60% in the past year so do you think the size and speed of this rally is justified?

>> well, it's hard to justify it but of course we all know that momentum can take a group of specially in the tech sector, a lot further than people think. and so it could have more upside to go. but looking at the charts, you're getting overbought. you look at the weekly chart of semiconductor, it is at 61% premium to the 200 week moving average and the only time it was more of a premium since the credit crisis. and if you look at the weekly rsi chart, it is at a level that is -- that is followed by significant or fairly decent pullbacks in the group several times in the past. now i do admit if you go back before the credit crisis, 2000, it got to a 260% moving average and the sar got up to 89 and you don't know what could happen but i don't think we'll see another bubble like that in our lifetime so raise your stops and any longs that you have and be

very careful on the individual names you want. >> boris, the hope is that the signing of the phase one deal will result in a return in demand for chips do you think that will be reflected in earnings season. >> no. i thinker that trading on hopi and matt is right, shorting momentum is very dangerous but at this point if you look at amd, it is trading good and it is a great company but the stock is set up to fail. if they don't guide next week at 30% or higher in revenue basis, the stock is going to crash. now once it does i think puts will explode that is when i want to sell puts and i want to get position at a much lower price but i don't want to chase stocks at this level. the danger of a pullback now is extraordinarily high and you don't want to buy at these levels right now. >> the bar is certainly high boris and matt, thank you. for more trading nation head us to our website. >> ahead on "power lunch," concern over the coronavirus

which names are most at risk. and president trump calling elon musk a genius as the stock skyrockets past $100 billion in market cap we'll tell you the other ceo the president said is doing a hell of a job and uber shares had a bumpy ridech the ceo weighing in on what is puling the recent run. all of this when "power lunch" returns. >> and now the latest from trading nation.cnbc.com and a word from our sponsor.

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welcome back, everybody. i'm sue herera here is your cnbc update u.s. troops stopped a russian convey in northern syria the u.s. vehicles forced them to turn around before following the

russians to the main road to ensure they did not return they then headed back to the base israeli prime minister netanyahu welcoming house speaker nancy pelosi to jerusalem who led a bipartisan delegation to israel to take part in the 75th anniversary of the liberation of auschwitz. u.s. air safety regulators acted improperly in the way that they authorized southwest to begin flights between california and hawaii last year that is according to the government agency that handles whistle-blower complaints. the employee who was given whistle-blower protection alleges that faa managers rushed the approval process and kansas has suspended forward silvio desousa for his role in the jay hawk brawlner the end of the game last night he was the main instigator on the kansas side. at one point preparing to swing a stool before an assistant coach grabbed it from his hands.

that is the news update. contessa, back to you. >> well that is not just set an example of property sportsmanship. >> no. >> sue, thank you. markets right now, we've got stocks off the highs of the day. but still in green territory the dow industrials up 36 points, the s&p is up a quarter of of a percentage point. and boeing dipping after a brief comeback following comments by the ceo and shares currently are down by more than 2% of course the ceo said that he doesn't think it is a wiring or software problem, but rather a simulator issue that is keeping that max on the ground >> time now for today's power movers and some big name companies are reporting results. let's start with netflix, shall we it missed expectations for subscriber growth here in north america, blaming, no surprise, increased competition but did report strong growth internationally. next up, johnson and johnson beat on earnings but missed on

revenue, trading lower fractionally as you see there. and lastly ibm reported better than expected results for earnings and revenue as the company moves more and more into cloud services. the oil market closing for the day. let's go to kate rodgers at the commodity desk. >> oil closing lower by over 2.5% by just about 2% after a market surplus forecast by the iea and demand worries weight on prices the iea head said he expected it to be about 1 million barrel per day if the first half and the coronavirus would likely see travel restrictions that could hurt demand for crude during a peak travel time in china. goldman sachs adds to the concern, saying demand for royal could fall by 260,000 barrels per day. over to you. >> dpoeldman said it would shove $3 perfect the oil prices there. so we'll keep an eye on that.

growing concern over the coronavirus hurting those travel and leisure stocks and specifically casinos those names are down big as the macau reports the first case of the virus. mel co, that is down, almost 10% or 11% as the virus spreads. what impact does this have on the travel sector. for more let's bring in david katz good to see you today. why are the casinos and macau so vulnerable from the coronavirus. >> i think what we're seeing is we're heading into the chinese new year holiday which begins on the 25th which is saturday it is one of the two highest peak periods of the year it is a period where the entire country of china travels and it is a time when macau

makes an awful lot of hey. what we are hearing and the reports are so far border crossings are normal except for infrared temperature gauges and as well as well casino entry points and there are temperature ranges and just the one case has been reported so far. and i should mention that we talked with one travel agent who focuses on outbound travel for mainland china and is not seeing any cancellations so far but the importance is really around the holiday period. >> okay. so when you have sources on the ground in macau, are you getting any indication that they're seeing cancellations for this weekend? >> we're not >> okay. >> we're not gotten any negative reports so far but i would point out that this is still very early. and we're treating it as such. >> have the stocks overdone it, david? >> you know, i think they're

not. the way we thought about it and in the note that we published this morning is we're looking at stocks that are near their all-time or recent highs at 14 times ebidta for win and lvs and we have numbers that frankly are appropriate before this this event. what happens and what we mapped out in the note is the numbers probably come down just a little bit and they are probably confined just to the first quarter while this virus event occurs but what is worse for the stocks is really the compression on valuations, the perceived risk and what is 14 times becomes 10 or 11 times ebidta and that is where the 20% and 30% downside in the stocks that we mapped out comes from. >> you cover a lot of stocks other than casino. when you look at this travel week in macau, 3 billion trips were planned and now we're starting to see a ban on travel, say from wuhan into taiwan from

tour groups or hong kong tour operators deciding not to go to wuhan. will there be a broader impact on mayorat and hilton and some of the other leisure names that you cover? >> so the hotel stocks that we cover out of the u.s. as you pointout are hilton and marriott and others and the largest global players and checking what we've known historically that 5% or less of their earnings are coming from either inbound chinese travelers or fees that are earned on the ground in asia-pacific so agains -- again as i pointed out, the perceived risk there could be a broader impact on travel or hesitation toward travel pushes on multiples and we see hilton and marriott trading at 15 times ebidta which is near the peaks and the valuation compression that we remain concerned about so watching and waiting.

i don't think ultimately they'll be a buying opportunity from some of the weakness but not yet. it is just too early in the ross he is. >> david, thank you. mgm down for the week more than 7% as is wynn and las vegas sands down more than 6%. the impeachment trial continuing today as democrats begin to present their case against the president. elon moy has detailed from washington >> reporter: adam schiff is leading this case for democrats. and he began his opening arguments by appealing to the better nature of his colleagues on both the right and the left he reminded them that alexander hamilton once referred to the senate as a tribunal of dignity. >> it is up to you be the tribunal that hamilton envisioned it is up to you to show the american people and yourselves that his confidence and that of the other founders was rightly placed the constitution and trust you

to the responsibility of acting as impartial jurors. >> reporter: now that is a very different tone than we heard last night as the debate over the ground rules for the trial dragged on into the wee hours, tempers flares and chief justice john roberts had to step in and today we heard from senators like lindsey graham of south carolina who made it very clear that those wounds are still open so, guys, democrats are realizing if they are going to win on calling witnesses, win on getting more evidence, the first have to win over some republicans. back over to you >> thank you very much for that. appreciate the update. to the bond market rick santelli tracking the action. >> hello yields melting not aggressively but it is very cumulative over time look at a two year note yield, down one basis point on the day around 150, 2.5 and yet if it closed open the chart up to october, it would be a three month low closing yield.

ten year note yields are hovering at 7 week closing yields as you see on this chart and finally when we talk about credit spreads and corporate securities, it is always in the context of we have really low, high quality, best quality sovereigns and you have to add on more basis points when you're selling something that is of a lesser quality like corporates if you look at these two year charts of high yield barkley spread you'll see they are the narrowest, the flattest, tightest which means there is a lot of risk out there. it is okay now but at some point in the future, many are a bit concerned. tiler, back to you. >> thank you very much. coming up, a special presidential addition of tasting menu president trump's thoughts on elon musk, tim cook and mark zuckerberg you'll hear ate wh hhad to say about each next on "power lunch. >> announcer: the bond report is

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welcome back to "power lunch. a presidential edition of the tasting menu three companies the president talked about in his interview with joe kernin today, tesla

surpassing $100 billion in market cap for the first time. that stock up more than 3% today. almost 36% in january. now bigger than volkswagen tesla pasted the combined value of gm and ford this month and the president is taking notice >> well, you have to give him credit i spoke to him very recently and also doing the rockets, he likes rockets. and he does good at rockets too, by the way shocking how well -- how it is come so fast you go back a year, and they were talking about the end of the company and now all of a sudden they're talking about the great things >> it is surprising that he has such a big affinity for elon musk because elon is building car plants where the consumers are to avoid tariffs and things like that. >> in china -- >> and just bought land outside of berlin to start building cars in europe and yet the president is trying to bring those

factories and jobs back to the united states. >> well i guess they're major manufacturing is still here. on the other hand, though he is not american by birth, he is the head of an american company that designs and builds and manufactures most of the product here in the united states. >> and he is a big dreamer he's got vision. >> next, is apple. the encryption battle also on president trump's radar. apple stock up more than $2 after breakfast with tim cook over in davos and the president making it it clear where he stands on this encryption issue. >> apple has to help us. and i'm very strong on it. they have the keys to so many criminals and criminal minds and we can do things when they had the problem with the recently in florida, i won't go into it because it is so horrible but they have could have given us that information, it would have been very helpful. >> this one it seems to me ultimately is going to end up in the courts if it isn't there

already. and subject to some kind of judicial decision. >> and you have apple disputing the attorney general assessment that it failed to provide substantial assistance and i, for one, and i wonder whether the president is assessing the audience here but i don't want my phone provider cooperating with the government when privacy is concerned. i just don't want that sort of cooperation. >> yeah. well at the same time -- on the other hand, obviously, his base would say if there's a criminal and there's information that is valuable to a criminal prosecution, the government ought to have the ability to get -- just as they could tap your phone and listen to your phone. >> i argue against big government traditionally. >> true. >> gnarly stuff we're talking about. >> point and counter point. >> the stock up fractionally of facebook and the president is giving mark zuckerberg high praise but he also refused to weigh into whether the platform

should, in fact, fact check political ads. >> i'd rather have them just do whatever he's going to do. he's done of a hell of a job when you think of it and he's going to do what he has to do. i heard he was going to run for president. that wouldn't be too frightening but he does have that monster behind him but he said, you're number one and i said that is very nice it is nice to be number one. >> covered a lot of territory in one sound bite there there is facebook shares up a third -- >> he's number one followed on facebook he's number one. >> or likes. >> or likes. okay good >> 2019 was supposed to be the year of uber but the stock fell following its hotly anticipated ipo. 2020 is off to a much better start, the stock up 25% so far can uber continue to grow? a bullish analyst joins us next.

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welcome back uber shares having a nice run, up more than 20% in the past month, fresh off the announcements that uber eats will be sold in india. the vision for growth is absolutely there, but it's

growth that makes sense and we've been sellers in some spots and buyers in some as well and the point is, consolidation has got to happen. there's been too much capital chasing too many companies, which makes sense when you're in growth mode, but at some point the growth has to consolidate so you've got growth and consolidation and you've got two or three players in a market instead of four or five. >> manager director analyst, he's going to buy on uber and a $56 price target welcome. good to see you. what is going to take them to a $56 level? >> a couple of things. you'll recall a couple of months ago we came on the show talking about how around $29, $30 the stock effectively had reflected all the negatives, having been one of the worst performers to likely being one of the best performance in 2020 for a couple of reasons

one, the valuation was attractive it looks positive in a sense that we know that the ride business is profitable, which a lot of people don't realize. but also that the company and management was very, very keen on getting to this profitability level for literally, you know, all of 2021. and the only way for them to get there is by cutting back on ventures that are losing them a lot of money and i would say uber eats india was at the very, very top of that list. they do about 3% uber eats india that accounts for about 3% of their global eats bookings but about 25% of the losses. so already getting rid of uber eats india gets them a great way closer to this profitability in

2021 >> it was mentioned in the comment that he expects there to be consolidation in the businesses that uber is in do you agree, and if so, where will that consolidation happen >> absolutely. so look, in the transportation business, in the ride sharing business, how many players do you have in the u.s. you really have two. you have uber and lyft, to a much smaller degree with two-thirds, one-third market share. you look at the eats business and it's a motly crew of a lot of players, door dash and grubhub and uber eats and, except for grubhub, everybody else is making money and grubhub went from making a lot of money to not making as much because of increased

competition. so consolidation in the space, that basically means in the next 18, 24 hours, you're going to see some consolidation within those independent players. and one thing that's going to propel the consolidation to be happening faster rather than slower the access to capital for private companies is getting tougher and tougher after a wework wework debacle. >> quick thought on lebron james and his backing of lyft bicycles, very fast. >> from a p&l perspective, no impact from a pr perspective, great for lyft and i think it's commendable for lyft to be paying it forward with this gesture. so my hat is off to them. >> lebron plays tonight in the big apple against the knicks that will be fun >> check, please, is next and don't forget you can always watch or listen to us live on

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the cnbc, seven trading days left it ends at the closing the friday before the super bowl and look at how close the contest is there you see thor's hammer, up 49.66, nick the kick's pix up

49% as well. thor is winning because of the move in tesla's stock. >> it's neck and neck. >> and i think nick has amd. that's been the big driver in his. nick was right about the kansas city chiefs going to the super bowl, by the way. >> thank you for watching "power lunch." >> "closing bell" starts right now. >> welcome to the "closing bell." i'm morgan brennan on the floor of the new york stock exchange at the ibm stock leading the dow higher, strong earnings after yesterday's close. overall, though, a little bit more of a mixed picture as the dow tries to hang onto the gains into today's close with just 59 minutes left to trade. >> and i'm sarah eisen in davos switzerland where president trump tells cnbc he'll impose for tariffs on europe if they don't make