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 a deal.

>> and we'll have a look at what's driving the action at the stock exchange, hitting record highs as tech heavy weights like ibm and apple are up boeing remains in focus, ticking low today as new ceo dave calhoun hosts a call with the 737 max. slight gains for the s&p and the dow. the nasdaq leads the charge up about half of one percent. the nasdaq is set for a record closing high, the other two just below those levels 59 minutes left of trade joining us for the first half of the joe, josh brown. good to see you. >> nice to see you, wilf. >> nasdaq leading the charge today and chip stocks, as we mentioned during the intro, are a part of that. >> and i would say like here we are three weeks into january, and if you were looking for a new narrative in 2020, that doesn't look like 2019, we haven't found it yet because every one of the major trends in the market that was in

force last fall and into new year are still in force. and in some cases, actually going into overdrive let's take a look at the semiconductor index, being driven by in tell, up 3% they're now trading at the highest level it's been at since -- are you ready for this -- september of 2000. where were you in september of 2000 that is the last time intel has been at this level and that's not the all-time high. the all-time high was august of 2000 it's a chip stock rally for sure again, a continuation of what we saw in the fall. home builders still on a tear. apple making new highs every day. and you think about what's not working. look at the ratio of oil stocks to the s&p 500, just smashing multi-year lows day after day. so i think for people that were saying it's 2020, tell me something new, we don't have it yet. >> i was in high school. >> in 2000

i was great close. >> we all were basically how much intel did you put away then you would just be breaking even, my friend. >> i took profits. i flipped it into apple. >> we'll be talking more chips after the bell when texas instruments reports as well. big stories today, phil la bow is covering comments about boeing's 737 saga. and joining us to break down tesla's road to new records is roth capital >> morgan, we heard from dave calhoun nine days after he became ceo, he held a one-hour konc conference call with reporters let's start with calhoun saying we are not going to cut or reduce the dividend. the max will not be scrapped this idea has been floating around he says we're not getting rid of this plane and the new target of possible

return mid 2020, he says that's more realistic, especially now that the company is recommending simulator training for max pilots >> the problem that we had, and the decision we had a hard time making, and i have to tell you when we finally made it it had a lot to do with a lot of changes, was to just say we recommend simulator training that's all we needed to do and it took us too long to do it but we got there and our scheduling now, everything that's out there is based on that premise. >> one other piece of news from this conference call today, he says that there will be no layoffs as we wind down production of the 737 max, which is essentially stopped now out in the seattle area. when it resumes, it may be a couple of months down the road but in the meantime, he says there will not be any layoffs related to the 737 max guys, back to you. >> phil, in terms of the expectations of when this plane can be up in the air, first and

foremost, clearly the statement didn't nail down a date anyway if this was a new ceo coming in with a kitchen sink strategy, they could have kicked it further away, could they not there's still room for them to disappoint again, and if they do disappoint again, how much trouble would calhoun be in? >> the it possible that mid 2020 doesn't hold and it has to go into the fall? sure, that's possible. we've seen a number of things that have come up as we've been working with the software, m-cast, but also other software issues with this plane if something pops up that they don't see right now, sure, they may not be able to get the plane back by mid year having said that, there was a sense of confidence in calhoun that they think this is a more realistic timeframe. and he was asked are you sandbagging and pushing it out there so you might surprise everybody? he said that's not what this is

about. this is what we believe is the most realistic timeline based on your discussions with faa and other regulators. >> shares are down 2% today. tesla's market cap crossing $100 billion for the first time mike santoli is looking at the stock, mike. >> i know you're up on all the technical rocketry terms tesla has raised ludicrous speed. here is the stock price on top on the bottom it's the daily dollar volume in the stock so essentially not just share volume, but how much money is turning over in the stock. i had this done earlier before the today's total was there. today is back up to $16 billion. you can see this was trucking along at a low level it has hit $16 billion multiple times. it means more than 10% of the value of this company is changing hands every day right now. today it's traded three times more dollar volume an apple.

apple is 14 times the market cap of tesla keep in mind elon musk owns 20%, 25% of tesla so the available shares are not even the full market cap all this is to say is that the activity is becoming very intense and frothy the stock is down 25% off the day's highs. so obviously it is consuming pretty much all the available energy that it has i think in the short-term nothing says there's a certain level or number of days it can't go on for. but it gives you an idea of how much hot money has been going through right now and it probably doesn't last this long for too long. >> is the term of economics for something that's anomalous called a good that's something that the consumer demand for it actually increases as it goes up in price, which flies in the face of typical supply and demand curve it seems like the higher it

goes, the better is odds are people feel that the company is going to be fine financially, which is what the big bear case was two years ago. so the higher it goes, the more people want in, which is i guess something we've seen before. >> of course, josh i mean, we're long beyond the point of whatever that threshold was where the market was suggesting there was a decent probability that perhaps they weren't going to be able to make it work financially. it's well below 570. i don't know what the number is. so clearly it's a lot more people believing that there's a higher probability of the ultimate success case being true but you're front loading a tremendous amount of all of that into the stock price today. >> so if somebody says be out of tesla because the company might not make it, that's a different bear case than be out of tesla because it's overvalued. >> exactly. >> and people are less concerned about the second argument. >> mike, thank you we're going to continue the discussion on tesla and a number of firms raising their estimates

on the stock amid this huge valley yesterday industry research raised its price on the stock to over $200 per share. craig, good to see you sticking with your $249 price target >> yeah, i think if tesla disappear points with a guide or points to a margin compression in the first quarter on china, you can easily see the stock under some very significant selling pressure i think a large part of the runn run-up has been retail and they'll flip out of the stock quickly if that's the case. >> do you think earnings is what the people that have driven the stock higher to this extent in recent months, do you think earnings is what they care about? >> i think there's three things that have driven the stock over the last several weeks one is obviously the knowledge that we're going to have a good

quarter. when they announced that they had 7,000 more cars sold out of the channel than what they produced in the quarter, that's a bump to cash flow easily you've got china, some very a gue gue aggressive things being said about china. people are throwing around numbers north of 150 and then the other thing is short covering a lot of people have been caught sort of offside on tesla and been forced to cover their shorts and those three things, along with retail buying, have forced the stock into a significant rally. >> you're basically calling for the possibility here of this stock to more than halve in price. what is the biggest risk you see to your bear case? >> the biggest risk is demand. they have done a fantastic job selling the model s, x and 3 all across the world

and now they need to really execute on that. so demand -- if they're going to have a 600,000 unit deliveries number in 2020, that means that our expectations on the downside are too low. if you look at the relative valuation versus some of the big automotive leaders, companies that sell orders of magnitude more vehicles a year tesla's valuation really is counting them out and i think any one of these companies, yes, there's a risk, but they can come up with compelling cars that will take share of tesla over the long run. so i'm happy with the sell rating i do think it is fundamentally the correct rating, but i believe it's part of the transportation future for the world going for. >> elon musk has a big chunk of options if he keeps the market cap above $100 billion for a 30-day average do you think he serves thodesere

options? >> it's not an easy question for an analyst to answer i think that's probably better posed to people on the board of directors. for the investors that might be selling at the $100 billion point, i think many of them would be very happy to see him get the options given that they have made the money in the stock. >> craig, thanks for joining us. craig owen. >> thank you. >> we've got a mark flash on beyond meat. >> take a look at shares of beyond meat. they were lower by around 6%, this on a bloomberg red line that some burger king franchisees are lowering the price of the impossible whopper at some of their locations as some demand starts to wane among consumers. they said that one franchisee has the burger on the two for $6 discount menu for a limited time they used to charge as much as $5.99 per sandwich they have reached out for comment from burger king

once again, beyond meat lower tat 6% on this bloomberg story back over to you >> kate rogers, thank you. josh, we can talk about high-flying talks like tesla beyond meat has almost become a proxy for all things plant, protein related. >> right, but you live by the gun, you die by the gun. look at the price action in this stock. because one franchisee of burger king, one corporate customer lowered prices for a two-for-one deal and the company loses 6% of his market capitalization on that breeze blowing through the newsrooms of america if you own a stock this volatile, it's a lot of fun on the upside but this is what you get on the downside, the fact that it could react to this degree to something like that tells you what kind of environment you're in with a name like this. >> the dow is higher by 21 points with 47 minutes left in

the session. still ahead, we have a big lineup of interviews from davos. sarah joins us with the ceo of dow and williams sonoma. >> and unep xt, virgin atlantic soaring. we'll tell you why there could be much more upside ahead. at fidelity, online u.s. stocks and etfs are commission-free.

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we've got less than 45 minutes to go here shares of ibm moving higher after posting results yesterday. revenue broke five quarters of declines it also gave strong guidance the stock is up about 3% right now. time to get word on the street bank of america raising its first quarter estimates for disney the firm projecting healthy studio and theme park gains, despite tough licensing comps and consumer investment. out with a note on retail leadership, underperforming on best buy saying the potential departure of the ceo is currently under investigation by the board for an inappropriate relationship with a fellow executive. the stock is down 1.3%. >> finally morgan stanley out with a note on virgin galactic

they believe they could see a potential upside of more than 250% and that lately we are having more conversations on spe than any other stock in our coverage, with the possible exception of tesla as you can see the stocks is up another 8% right now this name has been on a stealth rally for the past month or so it's up more than 60% and the service is not yet operational, which is ncredible. >> i think what triggered the enthusiasm, their capsule was on a spacex flight and supposedly it was successful. >> but that was spacex and this is virgin galactic it's almost like the beyond meat impossible scenario. >> people are looking more towards space travel as a growth industry that is under-invested and i think you have two space etfs right now so every dollar that goes into a space etf, a certain percentage of the dollar goes directly to virgin galactic. most interesting to me, this was a special purpose acquisition,

which very rarely do they become high profile winners over time this has interesting things going on about it. >> we've been a bit disingenuous by picking out the target of 60 with 250% upside, because the base case is massively below the bull case, only 28% upside to that so they've got an extraordinary spread between -- >> i won't even go on a cruise so i'm not a good candidate. >> $200 grand as well. >> the new show on hbo is about a galactic cruise line, regular people in space with dr. house >> separately, virgin, the brand has launched a cruiseship as well i wouldn't be paid to go on a

space ship or cruise ship. >> there we go >> we have 41 minutes left before the bell and we are just barely hanging onto gains right now. the dow is basically hugging the flat line. it's only up 20 points the s&p is up three or one-tenth of a percent and the nasdaq is up two-tenths of a percent coming up shares of netflix lower today. could ads be the key to future success for the company? we'll here what their ceo hastings said on the topic >> and sarah joins us with a big interview from davos. >> coming up, how does the world's biggest plastic maker think about climate change coming up on "closing bell." >> announcer: market movers is >> announcer: market movers is sponsored by security, blockchain, and we w payden & regel.market!

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we've got a news alert on the coronavirus. >> well, we've been watching the world health organization to see if it would declare this coronavirus a national health concern. we've done it only a few times before the word just coming down they do not yet feel they have enough information to make such a declaration and they're going to meet for a second day tomorrow the emergency committee saying they were split on whether to make the declaration and they are talking about what information they have and what more information they want to find they have confirmed of course

this coronavirus does spread among humans, but right now the contact is very close contact, among family members and caregivers so we are waiting to learn more. that is the update we'll have to wait until tomorrow to get information on whether this is a public health energy of international concern. >> thank you for bringing us the latest dow ink is one of the largest producers of plastics in the world so when it comes to sustainability efforts, how does it measure up? sara is making with dow's ceo. >> i actually wanted to start with trade because president trump is here. you were at the signing of the u.s.-china phase one trade deal. what is that going to mean for dow that has been whipped around >> this brings certainty back into the market and i think that is going to be good in our industry, which was hits by tariffs both sides we actually saw exports to china

drop as much as 30%, 35% last year and a lot of that is because you couldn't pass the tariffs onto the market and so product moved to other markets i think now that certainty is back you'll see some of that come back. >> certainty is back but tariffs are still on. >> tariffs are still on but i think a lot of things that were happening last year is people were afraid to make commitments to u.s. purchasers so they wouldn't make a purchase, and that impacts us because we sell products into those markets as well. >> the president has indicated he's got europe in his sights next and even threatened that we could see tariffs there. is that something that concerns you? how would you prepare for such a thing? >> i think the discussion was around automotive primarily, and so automotive is seeing kind of a slowdown, so i haven't heard lately that they're really going to go after that aggressively. i think now that we've got china behind us, we understand that

we've got to get back to good bilateral relationships and rebuild some of those relationships. today the industrial economy is slow, so automotive is slow around the world i would say big ticket items for consumers are slow. >> still >> the consumer is strong, but imagine if you're a consumer buying a mattress for your bed or buying an appliance or buying a car, that business is slow and that's high demand for our industry so we need to see that pick back up and certainty helps that confidence helps that. >> the last quarter i think you said that there's limited visibility in terms of the economic cycle how would you change that now? >> i think what happened in our industry is over the last seven years a lot of capacity had been built so when you see things like auto slow down, you've got a little bit of length in the supply/demand balance. so as the confidence comes back things are going to tighten up so i think 2020 will be a little bit better than 2019 and i think

2021 should step up from there. >> the big theme at davos this year, sustainability esg. you've been out front on this, which might seem odd to people as one of the biggest makers of plastic. but really getting out front in terms of eliminating plastic waste and sustainability efforts. what can you share with us as far as an update as to how that's going >> we're in our third decade of internally on the esg goals and we publish sustainability reports every year that look like what the esg metrics look like in the world of clean energy, alternative energy, we're a top 25 user. i think most people wouldn't realize that but it's a big area of interest for us i think esg is here to stay. i think we're trying to get our hand around how to measure it and how for the financial community to make a judgment about what's good and what's bad. but it's here to stay and i would say the other area that we talked about is plastic

sustainability so a lot of progress has been made last year we had launched the appliance and 27 companies had joined in. today we're at 46 and growing. and a lot of active projects, including projects like project stop in indonesia, a zero waste city we're actually going to put a zero waste city in place and we're going to try to prove technologies and business models and then replicate those around the world. stop the waste, close the loop and really the mantra that we're after. >> at the same time, we have seen governments around the world move to try to ban plastics and we've seen the elimination of plastic straws. is that hurting your bottom line at the same time >> plastics demand continues to grow, so it continues to grow 3% to 4% a year as people work on bans, typically you have to look at alternatives but the alternatives are three to four times higher, greenhouse gas carbon footprint than the

plastic. so sustainability brings you back to the plastics the waste issue is what has to be solved. imagine last week nestle said they're going to buy post-consumer material historically that wasn't always there. and if they're putting value into that, that creates demand and we're going to need the demand to close the loop that's going to create incentives for recycling and new economic models. >> do you wear at all about being on the other side. larry flint comes out and says we're going to be shifting money more toward sustainable investing. do you worry about losing investors because you're such a big maker of plastic >> our goal is to be the most sustainable material science company in the world so we're looking to be the place they want to invest in and that's what we're trying to do. >> do you worry about someone like senator elizabeth warren or senator sanders winning the nomination, potentially winning

the election and seeing more moves like we've seen in europe? >> i think the extreme moves and over-simplified create a lot of problem and create people moving in the wrong direction so i don't think they're ill-intended, but i don't think people understand deeply what they're dealing with when you get to carbon and climate. and that's one of the things that happens here is a deeper understanding, working with the governments and trying to challenge each other as to what is the right policy. >> that is sarah eisen in davos. the dow is down 3% right now it's the worst performer in the dow industrials, which is actually slipping into the red we've got 30 minutes left to go. here are the three things driving the action s&p 500 and nasdaq hit highs today, though markets are losing steam into the close texas instruments gears up for results after the bell and new

ceo dave calhoun posts a call with reporters about the 737 max. >> here's what's happening at this hour, everyone. french president macron losing his temper with israeli security agents during a visit to a french roman catholic church the church is considered to be french territory rescuers took advantage of improved weather to press ahead with a search for four south korean crimers and three guides on a napoli mountain snow and bad weather had stalled the rescue operation on tuesday. general motors unveiling a driverle driverless electric taxi in san francisco. the vehicle does not have manual controls like pedals or a steering wheel, sensors function as the vehicle's eyes and they rotate to help the car see what's going on around it.

and arizona cardinals wide receiver larry fitzgerald is now a part owner of the phoenix suns he recently bought a minority stake in the nba team. he tweeted that he's excited about owning part of that team congratulations to him that's the news update this hour back downtown to you. >> sue, thanks so much now, the senate impeachment trial of president trump under way in washington, of course nbc c is there with the latest. >> adam schiff just wrapped up the first portion of democrats' opening arguments in this trial. they're starting by recounting the events surrounding president trump's phone call with ukraine. they are trying to do this in a more narrative format by using video of president trump and his acting chief of staff, mick mulvaney they're using snippets of video from the house impeachment hearings after that's over, they will lay out the constitutional framework

for impeachment and then they'll conclude by arguing that the president's actions fit the bill now, democrats have 24 hours, over three days, in order to make their case. the white house will have the same amount of time. they'll likely start on saturday the white house did have until 9:00 a.m. this morning to try to dismiss this case outright they did not file a motion to do so and, guys, white house attorney jas sekulow said that the p the president is prepared to proceed all the way to acquittal. >> thank you for that. still to come on "closing bell," we've got your last chance trade. josh has a financial trade that he says is breaking through multi-year resistance. >> spacey stuff. let's not miss it. >> as we head to break, here's a check on bonds the benchmark ten-year yielding around 1.76% "closing bell" will be right back

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>> 24 minutes left of the session. still positive territory for the major averages let's get to mike santoli.

>> a bunch of stocks, in fact you've hit a couple of them already this hour, operating on the lunatic fringe of the market these are year to date of course the year is only a few weeks old. performance of a handful of relatively new ipos. smile direct, that's virgin galactic beyond giving back some of the games, but 61% so far this year. and pinterest with a 20% gain. this is a fundamentally short-selling fund this stunt look like it's done much but it's down 3.5%. so clearly there's been a hunt on for some of the lower float kind of abandoned busted ipos. there is not the kind of stuff that happens at the beginning of rallies. people are kind of chasing some of the most i guess fast-moving stuff, feeling a little bit fearless we'll see if this means that

we're coming to a point where the rally needs to cool off a little bit. >> i have been bursting with excitement for your chart themes in general today it seems we're going to an aerospace theme. >> it's vaguely space travel, upper atmosphere stuff you can kind of fashion whatever you like. >> i feel like you did this for me even if you didn't, i'm going to claim that you did >> and we're going from that to a financial stretch. >> it's like both of our birthdays. >> we're taking a short break before that. but up next we do have last chance trade, 21 minutes left in the session. >> plus shares of texas instruments up around 15% over the past two months. we're going to preview what to watch in the company's earnings report after the bell. tomorrow, comcast ce o'brien roberts will join us to discuss results, too that's tomorrow at 7:30 a.m. we'll be right back.

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18 minutes left in the session. here's a check on the closing bell big board the major averages all high, though well off the highs. the nasdaq leads the way, up 0.2% we're not quite set for record closing highs as things stand. the tech sector, the best performing within the s&p and there are some of the biggest leaders inside the group, ibm, intel. texas instruments, and nvideo. >> josh, what's your last chance trade. >> we almost never talk about this stock capital one financial. here's what's interesting. technically this is a multi-year breakout, just getting started you have not yet missed it haven't retested the breakout level yesterday.

it's selling for under ten times earnings american express is 15 times earnings market cap is about $50 billion. what i'm asking you to do here, if you're a short-term trader, i'm asking you to risk about 7%. you'll know you were wrong on the trade relatively quickly if the market takes you out if you have more of a leash, you can take more risk tolerance 98 looks like where i would put my stop. i like the trade you have a very good asymmetric risk/reward. the stock can keep going for a long time now that it's broken above the multi-year highs bear in mind this is in a secreter that's been red hot it's one of the names that very rarely gets talked about and i think that's about to change if this price action continues for much longer. >> the rest of the sector has taken a little bit of a breather over the last ten days capital one clearly from that chart -- >> earnings are already out of the way.

they beat reported so you don't have that for 90 days. so i think there's an opportunity here >> capital one up 4% today josh's last chance trade. >> best performer in the s&p today, by the way, too not because of anything i did. predating this segment. >> this is the last commercial break we're going to take before we head into the close up next we'll bring you uninterrupted coverage of the trade. "closing bell" back in a couple of minutes sometimes your small screen is your big screen.

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$5,000 welcome back about 12 minutes left in the trading day. we're in the closing bell market zone commercial free coverage of all of the action. >> mike santoli is here to break down the crucial moments of the trading day. today we've got josh brown here as well. let's kick things off with netflix. jul julia is here. >> netflix ceo hastings reiterating that he is not going to launch ads on netflix, dismissing the idea that netflix would benefit by being able to provide a lower priced option. he said sticking with the ad-free is better for the long run. >> we think with our model that we'll get to a larger revenue, larger profits and market cap because we don't have the exposer to something that we're strategically disadvantaged at, which is online advertising, which over the next ten years are going to integrate

incredible amounts of data about everybody. >> hastings both praising the success of google and facebook and saying he doesn't want to compete with them. but also taking a swipe at the tech giants in stressing the risks of having access to all of that user data guys, back over to you. >> julia, thank you. mike, we've heard this from a number of analysts on wall street who have argued that an ad supported offering from netflix could be in the works, especially if we are reaching some sort of pricing peak with all the new streaming services coming out you've got to wonder what does happen with prices. >> i think netflix and hastings are saying we don't see a comp p competitive advantage of being in the streaming business. it's a clean business model if you get to the critical scale where it starts to become cash-throw positive it's great but down the road you do have to wonder if that option remains out there as an escape hatch if

growth stalls. >> 4% after the earnings report for netflix isn't a huge move, but clearly it was higher at a time as well so what do you think has accounted for the change in sentiment compared to the -- >> i think the take-away is it's a bit of a slog. obviously nobody is quite sure if they've had the full head-to-head effect of the new entrance into streaming and so therefore that's going to be a first quarter question when you have a full three months against disney plus and the rest of them i don't think there's much to be taken out of a relatively small move in a stock like this. it had already come back a little bit but there's no real visible catalyst out there that's going to change anybody's mind about whether they have it figured out. >> there are a lot of potential negative cast lifts. >> potential, yeah. >> you're going to look at the numbers and say, okay, you spend $150 million on the irishman, it takes three years. splashing the ads everywhere,

trying to get oscars with it everything they've done with the film which is fantastic. >> well, you say that they're not emphasizing that the cash flow losses have peaked and that's something under their control. they can decide how much to spend. >> it's split hair on whether it's a good film or not. you've got two big fans and two critics. >> let's say everyone loved it, the bigger picture, is that an activity that netflix as a corp. ri corporation should pursue going forward. >> i think that might have even been less about investors and more about how you continue to bring talent into the pipeline for future projects. another name that was moving, united airlines clarifying the timetable for the return of the 737 marks. phil lebeau has the defails for us. >> morgan, united now adjusting

to the fact that it may not have the max back in service until sometime mid year. what does that mean? does that mean july, august, september? nobody is quite sure when we talked about ceo oscar munoz this morning, he made it clear united will do whatever it's done over the last six months, adjust and find a way to make capacity work. >> they have figured out how to maintain and repair and bring other aircraft, to use things that we have laying around, to borrow, beg and get other aircraft online. our team has done a great job of making sure that we have enough capacity to fit our needs. >> just a reminder, united, like american, like southwest, they all are planning on this plane flying in early june don't be surprised if they adjust the schedule at some point. and speaking of american, we'll be talking exclusively with american ceo doug parker tomorrow morning you do not want to miss this interview. 10:30 a.m. it will be right after they post

their 4 q earnings and we're going to be talking a lot about the max and what the outlook is for 2020 with doug parker tomorrow morning. >> that's not quite your last one with oscar munoz as ceo, right? >> we get one more but you can tell the transition, it's beginning already as he moves into the chairman role and it will be interesting to see. this is a company that has done a lot under oscar munoz and i wouldn't be surprised if he takes a bit of a victory lap with his next earnings call. >> phil lebeau, thank you. mike, united airlines down 3% now. worst performer in the transportation average transports just can't catch up. >> the airlines are starting to act a good deal better i think you can take what he says, it's a more disciplined company and still say there's a little too much noise around it with the risk to asian travel

volumes, as well as the 737. >> fourth quarter sales missed wall street expectations despite an earnings beat driven by j&j's consumer unit. meg has more for us on that. >> the litigation concerns have weighed on the giant's stock the rally over the last quarter has restored it to recent eye z. the ceo told me this morning the company has won each time it's appealed a decision against it i also asked if j&j has considered divesting the business, considering it's a very small part of j&j's overall sales. >> i would think that we're going to clarify this litigation matter around us and make sure that the facts and the data come to bear, and then we'll evaluate all opportunities as we do for all of our product lines, make sure we're doing the best in terms of performance in the marketplace. >> meanwhile of course they say

they're going to continue to defend these in the court room back over to you >> josh, your thoughts on j&j or health care more broadly for that matter? >> i really feel that health care stocks have some of the best secular earnings growth stories in the entire market way less dependent on anything that's happening with the china trade deal, with europe. the big cloud that's hung over these stocks over the last few years has been concerns about obviously populism and lowering the cost of medicine and single payer health care. in the meantime they continue to grind it out and the stocks have done well lately i would own j&j over here. i wish i owned it lower. >> j&j went along for the ride and it actually did surge to a new high it looked too cheap for the quality of company that it was but still a lot of static around it with the legal risks. >> they've got 4.5 minutes left

to trade we are just positive but no longer set for any record closing highs. the semis are rallying josh >> so wilf, that's right, the etf that tracks them hitting a new interday all-time day. in part help helped by reports that apple is raising chip orders from tsmc remember it surged 62% in 2019, best year twins 2003 after the bell, more chip news texas instruments reporting, i caught up with them and he wants to know whether secures are replinishing inventory. >> josh, thank you mike, i mean, texas instruments, world's largest maker of anna log chips. we get intel after the bell tomorrow as well

the names have run up dramatically. >> to the market has said we're looking right through this phase. we think that these are leveraged to the up cycle that we have in technology and all the rest of it and so far it has yet to be proven wrong but on the other hand, when intel starts to be the big mover of the day, it's starting to look like a mature trade. >> the dow is fractionally high. >> a loss of momentum. if you look at the volume breakdown, up versus down volume on the new york stock exchange, it's been nip and tuck now you see a little more down volume in there. it's the second day in a row where you've had calling going on below the surface and if you want to look at some of the individual areas that have been moving, you see the momentum names have obviously well outperformed value. that's a year to date number

momentum has basically doubled the s&p so far this year and josh mentioned energy earlier. look at the xle and that's a year to date it really is kind of a give-up trade right there. natural gas prices means a lot to domestic prukds and they're hitting new lows. >> these stocks can't buy a friend it's breathtaking the amount of market share proportionate to the other sectors they've lost in the s&p. >> and all of this with everything going on with iran to start the year it's kind of incredible. >> saber rattling in the middle east ain't what it used to be in terms of its impact on energy prices. >> we're up a handful of bases points. >> wilf, we continue to see the drift in all yields across the globe into 2020. look at a two day start, it's only down a basis point. if you look at a year-to-date of ten-year note yields, it's been

a steady down-trade all year in fact, we settle up 192. we're down 16 basis points for the year the dollar index, mirror image it's not at the best levels, but it certainly is the best levels of 2020. and bertha, we were looking golden until 45 minutes ago. >> yeah, even still, we're looking to close higher. and apple on pace for its tenth straight record day, amid reports that it's looking at launching perhaps a new lower priced iphone with the thumb id back in the phone. meantime, tesla is the best performer in the nasdaq 100 year to date. web bush upped its price to 550 and tesla is already above that. over to bob. >> semis not the only sector hitting new highs. every one of the home builders are hitting a new high you've got a strong consumer and low rates. kb home new high, pulte, it

doesn't matter also new high, kimberly clark reporting tomorrow this is the first big consumer staples company to report, global foot point, consistently growing earnings kimberly clark new high. there's the closing bell, just barely eking out a gain. 1.5 on the s&p, douse industrial average now turning negative going into the close if you're just joining us, welcome to the "closing bell." i'm wilfred frost. >> and i'm morgan brennan. along with mike santoli. >> the dow just dipping negative at the close as bob just told you. the s&p eeking out three basis points nasdaq led the charge. it was up 0.14%, about three or four points below its own record but essentially some slippage throughout the trading day as you can see. nonetheless, positive return for

the s&p and the nasdaq dow just negative. >> tech stocks, the best performers, real estate and energy plus we are moments away from earnings from texas instruments. joining us to talk about the market day, u.s. head of intrinsic value equities at ubs, and still with us, josh brown, management ceo but first, mike santoli, we go to you. >> the market has been fighting these head winds it's been up a lot in a short period of time we keep talking about how there haven't been any pullbacks and we talk about how the activity looks like it's gotten heated. maybe that's what we got in the middle of the day. i don't think there's much going on except yields could not get any lift today really and that has not been an outright problem, but when the market is otherwise feeling fatigued it seemed as if it did take its tol. then we see crazy stuff like bottle rocket action in tesla and it did lose some steam off its highs in the middle of the

day. >> tom, what is your take as to where we stand very close to highs, but running out of a little bit of steam today? >> well, today we ran out of a little bit of steam, but in my lifetime most years we hit all-time highs, and if every year you invested at the end of the year, you would be a rich man today. so i think the market from a perspective of earnings yield relative to treasury yield, it's a very attractive market >> josh, what is driving this market now we're really in the thick of earnings season and it continues to ramp up next week is that going to be what dominates moves, at least for the foreseeable future >> i think what earnings have to accomplish this quarter is justify the run-up that we've seen since september, october in the overall market more so than they need to help the markets advance the ball i talk to people that are like what do i do with this stock or that stock, that's the narrative and they're looking for a reason to walk away from stocks that are up 20 or 30 straight points.

i have some names i look at and i say, all right, this thing is going to report earnings is there going to be a reason to stick around for the next 20 points that feel increasingly unlikely. so i think that is a big part of the psychology but if you start seeing outperformance and you start seeing big bateats like we saw with some of the banks last week, the narrative goes out the window and people sit at the table long it's almost binary we'll know more when we start to see 50 s&p components, many of which are consumer discretionary or tech. those will be the names that get everyone's attention and maybe that will be how that thing shakes out. >> texas instruments trading higher by a percent after an already good session we'll dive into the numbers for you in a moment. in the meantime, mike, clearly of late we've had a very strong market rally we always focus on the valuations but corporate bonds also support where we are. >> it hasn't improved tick for

tick in the last couple of weeks with the stock market. but you have this tremendous demand for corporate paper keeping the risk spreads very low. equities with companies with stable cash flows get pulled into the valuation gravity and that's where we are at now i'm with everybody else who is kind of downplaying the idea that this coronavirus is going to be any lasting issue for the market but for a market that's been searching for an excuse if you see it day after day, it seems like it's going to affect travel and chinese growth, that could be the perfect i'll psychological excuse to just have the market take a break. >> european corporate bonds are doing the same thing u.s. bonds are doing. european junk bonds have been absolutely on fire since january 1. i don't know if you had that as one of your bingo squares, but that would be the place to be this year. >> it's a small market but everyone wants in. >> texas instruments numbers are out as we just mentioned, josh

lipton has got them for us. >> texas instruments reporting earnings of $1.11, versus expectations of $1.02. beats are on the bottom and the top. as for guidance, they're calling for q1 eps between 90 cents and $1.14 on a revenue of between $3.2 and $3.3 billion. rich templeton, the president and ceo calling out that most markets have shown signs of stabilizing. the conference call kicks off at 4:30 eastern and we will be on it guys, back to you. >> josh lipton, to you this goes back to what we are talking about before, the fact that a lot of the move we have seen in the chip stocks has been the bet on a bottom rather than an actual recovery that's already showing signs of life. >> and that commentary seems to confirm that idea. but look and see if the stock can hold the gains that's going to be the key in terms of reactions to some of

these moves. >> josh, what's your take-away we're talking about the smh earlier. texas instruments had a tough setup, but maybe the guidance lackluster. >> this is not a stock that's known for earnings day volatility this is nothing like an amd. this is more of a blue chip. so i don't think anyone was in this name looking for either a big jump or a big disappointment but i would be surprised if there's a ton of post-earnings volatility here given how vanilla the numbers seem to be, at least at first blush. and we'll see what they have to say about guidance. >> in october their miss did hurt the group >> tom, i want to get your thoughts on texas instruments or even the semis more broadly right now. >> well, i love the companies. phenomenal company, but when you look at it it's kind of the bell weather for some of the tech space.

so i think it's not where i would go it's trading around fair value and it's pretty well understood. >> president trump sat down with cnbc's joe kernen this morning at the world economic forum in davos where they talked about the 2017 tax cut bill and the administration's plan for an additional tax cut. >> we're going to actually probably 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 we've taken in more revenue substantially than we did when the taxes were high. nobody can even believe it but we take in more revenue with a big tax cut. you were paying really 41% and we brought it down to 21%. >> that will be a priority. >> oh, absolutely. and one of the reasons i would like to see the interest rates lowered is because i would like to finance the debt and pay off the debt. >> i guess that particular part of the interview wasn't necessarily boosting stocks because we're talking about a long way off and lots of ifs before you get there but the general tone was pro market, pro business, with no

big wildcard fears >> that certainly is true if you want to cut to the chase i don't think anybody is looking for anything very specific about a second term economic agenda, except for the general backdrop that it will be promotional toward business and we're not going to raise taxes and add a public option for health care. i think that's the sum total of what the market is trying to handicap in terms of re-election prospects. nobody cut taxes in half tax revenue is actually at a low historically right now so it's not as if it's been a bonanza. this economy that was supposed to go gangbusters did not survive positive interest rates. so you can take whatever you want out of the economic story but the market wants the president reelected because of the general backdrop. >> josh, your reaction >> i think that's mostly right

i think the market has gone through the russia thing, it's yawning through the impeachment scandal. i probably wouldn't have said that in '17. if you had asked me we're going to go through an impeachment, i would not have made multiples will expand by 30% leading up to that so the market is really telling you that, as long as things stay sort of the same -- i don't even think the market cares that much if it's biden versus trump where you really get any kind of market movement is the bernie surge gets to the point where it can't be ignored anymore but i don't think we're there and it's a really long time to go between now and even super tuesday or the conclusion of the primaries. forget about what happens in november >> tom, are there any sectors that you're playing based on political expectations >> well, i try not to be the political pundit, but i would say to the extent you have any kind of surge from bernie or elizabeth warren, that hits the health care stocks pretty hard and i would be a strong buyer at

those levels because even if they were elected, they would have real difficulty passing a single payer system or some of the things that we're proposaling through congress so the short-term vol atility would be great. >> coming back with another interview from davos, sarah. >> coming up on "closing bell," how does the u.s.-china adtre deal affect tech investing in both countries we'll talk to billionaire investor jim bryer

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technology was the best performing sector in 2019. our own sara eisen sand down earlier with jim breyer about why he continues to bet on big tech >> a year ago, right here, we talked about tech companies, valuations you said buy that turned out to be a pretty good bet in 2019 >> it worked out there's always luck as well. but what's happening with the top tech companies, facebook, apple, google, amazon, microsoft, they are building out workforces around artificial intelligence that are second to none and so i continue to go long and will remain long, the top companies that continue to invest in the very best talent, the best women and men around

artificial intelligence. >> and they are also attracting the scrutiny of regulators, anti-trust investigations and privacy concerns do you think it's going to amount to anything >> i think there will be regulation and there should have been regulation earlier in retrospect. >> around privacy? >> privacy and security. i think what's fascinating now, though, with artificial intelligence, we have a chance as technology investors to get it right in fundamental ways that perhaps we did not 10, 20 years ago. what are the ethics of ai? how do we set the right diversity standards around ai, and how do we build companies where we don't fall behind other countries, china in particular, where there is a space race, of course >> aren't we behind china on ai? >> it all depends on the segment. some of the very best ai companies are in the southern bay area of china, and i continue to invest in six to ten

of those companies per year. but many are in the united states and people talk a lot about data there is vast amounts of data, of course, in china, that's available for many of the best ai companies but some of our best health care data, for instance, breast and prostate cancer data, is in u.s. hospitals. and so i spend at least a couple days a month at academic centers in major hospitals working with them to try to figure out how we can apply the best machine learning to the cancer data and make a fundamental difference in improving patient outcomes, doctor outcomes. we're going to have a shortage of doctors and nurses. china will have a shortage of doctors and nurses and so i believe that ai applied to cancer, not only can make a big difference financially, but at the same time it's also an area where u.s. and china can

find ways to cooperate. >> what do you mean? because the theme lately has been sort of a lack of cooperation. yes, we have a phase one trade deal, which is a big step. but there are worries out here that get discussed on this technology arms race >> there is a technology arms race but there's a lot of myth and it's not black and white there are areas where the u.s. maintains a considerable lead. nvidia and some of the semiconductor companies that we mentioned a year ago they're five to seven years ahead of anything that i've seen in china on the other hand, there are areas like facial recognition in china that are far ahead of the u.s. our job as investors is to be very granular and within the worlds of ai and quantum, the emerging area of quantum computing, pick and choose where there are the very most talented teams and the best opportunities to built break through

next-generation companies. >> so you see that happens, for instance, at you mentioned facebook, google, alphabet, amazon. >> microsoft. >> they're all tackling this issue? >> they are tackling ai from a recruiting standpoint, and so my day job of trying to recruit the very first post-docs out of harvard and stanford and have them work with the very best teams, maybe alumni of google and microsoft, the competition is intense and many of the best companies are going to continue to attract the very best ai talent. there are only about 1,000 truly a plus oriented ai technologists in the world unfortunately, only 10% of them are female so i also believe that part of my responsibility in addition to trying to generate outstanding long-term returns, is to really make a difference and help more women become leaders in the

field of ai. >> those two things can be connected. >> i'm going to try. >> while we're talking about the public market, tesla has passed now $100 billion in market cap would that be something that falls into your best bets in terms of forward thinking technology >> i love what tesla has done in terms of technologies. elon is a genius. >> that's what the president says. >> i heard at the same time, i'm focused more on where artificial intelligence meets verticals like health care and very specific financial services. that's where i'm spending most of my time. >> the other big development in technology was the emphasis and prioritization of profitability. we saw it in wework and in uber and so many of these other ipos. how has that changed things? >> massively, since august and it's a good thing. >> why did it happen >> i think there was far too much capital with far too much

emphasis on grow big, grow fast over the last couple of years. we've seen these cycles before and i think when that is the emphasis, many entrepreneurs fall under the sway of i can raise $100 million, it doesn't matter how i spend it. i'm just going to grow big as fast as i can. and in technologies like artificial intelligence or quantum sensing and some of the emerging areas, you can't throw that much capital early on on very difficult technological environments and challenges. so i really believe in appropriate amounts of capital when there's too much capital available, it leads to unfortunate outcomes. >> what did you learn from wework what are the lessons for private investors, public investors, founders >> always try to know what you don't know

and so i'm on the board of blackstone, as you know. and as i followed wework, the smartest real estate investor i know in the world is john gray, our chief operating officer. and that's how i developed a thesis around wework or real estate i kept asking john and his team what am i missing? is wework real is it a real estate company? and the answer was no. >> what was the thesis >> there was a branding emphasis, but the way the long-term leases, short-term leases mismatched. >> the math didn't work? >> did not work. and so i believe in some of these really important areas such as real estate or vertical areas of finance or medicine, i go and try to spend as much time as i can with the best and brightest, either nobel or testers and try to continually retest the hypothesis. >> which is why you've come to

davos 25 years running the wework issue was part of a broader problem wr soft bank what impact and ripple effects has that had is it a good thing for you or bad? >> well, it's always a combination. and there are some outstanding investors at softbank. at the same time things got too frothy in companies that were not technology companies, by and large. >> you're a big investor in china. u.s.-china phase one, does it open up opportunities? >> it's a good start it's a lot better than the rhetoric that was going back and forth for the last year and a half the reality is we're in a race it's a competitive race. china is ahead in many ways around ai and quantum computing. we're ahead in certain segments as well. but if we take some of the most important technologies of the

next ten years, 20 years from now, 10 years from now, the trillion dollar market cap companies, 90% of them will be in u.s. and china. and my job as an investor is to continue to try to formulate and be an investor in a majority of those over time. >> is there something specific that you want to see happen in the phase two deal where they work out some of the other issues >> i think the intellectual property protection for the u.s. companies is essential i think that is still number one, whether it's intellectual property from a technology standpoint protection or from a business model or joint venture perspective. that to me remains the fundamental challenge, but i'm an optimist, and at the same time in silicon valley, we see the model work all the time. there's times when there's cooperation.

and i believe with u.s.-china it should be a similar roadmap. >> still ahead, we've got much more to come, of course from davos. we'll head back out there. the ceo of williams sonoma. >> plus stocks and bonds prices have been trading higher we'll break down the charts to see what that means for the market and you can always watch us live on the go on the cnbc app. "closing bell" will be right back t what's so when a hailstorm hit, usaa reached out before he could even inspect the damage. that's how you do it right. usaa insurance is made just the way martin's family needs it - with hassle-free claims, he got paid before his neighbor even got started. because doing right by our members, that's what's right. usaa. what you're made of, we're made for. usaa

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>> stocks are slipping the surlly bonds there's been a linkage between higher bond yields and prices for a while. this is bond prices. this is the price of the long-term treasury etf what you saw back here was as the price went up, meaning yields were going down, stocks had trouble. we went down so you see this rough inverse

relationship and then you have bond prices going down, which means yields going up. this is more or less the seesaw we were riding for a while you see that basic in december, the increase in bond yields has been stalled out and yet we've seen stock prices t s&p 500 continuing to carry higher we can basically say either the relationship has changed or stock prices have just enough momentum as long as yields don't make new lows or settle back toward the lows. maybe we're okay it's unclear because we have seen signs that perhaps bond yields might be breaking down again. we saw the treasury not able to catch that up upside it's a relationship that we want to watch even though there's no fixed rigid way these things have to fit together. >> you could even argue of late it's more felt like the opposing correlation as opposed to bonds being flat you want to see the yield

ticking up a bit. >> you want that and that's what you would expect but somehow, even without yields making new highs, you have had stocks managing to rally the question is how long can that go. if you say bonds are where they are because everyone knows the fed is not going to do anything and global yields still are stuck, maybe so. but we've got to see if this relationship gets pulled back together. >> mike, thank you up next, we'll discuss jpmorgan's ceo jamie diamond's comments that the fed and white house should have coordinated monetary and regulatory policies. >> but cruise is unveiling its autonomous vehicle and it's unlike any car you've ever seen ndut i fi of this is the future of transportation later on "closing bell. fights cancer.ow the w blocking the pd-l1 protein, lets the immune system attack, attack, attack cancer. pd-l1 transformed, revolutionized, immunotherapy. pd-l1 saved my life.

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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 the major averages finishing this session mixed pretty tight range the dow finished down fractionally the nasdaq is up one tenth of a percent. that was after the s&p and nasdaq hit fresh record inter-day highs earlier in the session. here's a look at some of the biggest dow leaders. intel, ibm after stronger than expected earnings last night and also american express, the biggest gainers there. for the s&p, the biggest leaders, capital one, ball and century link. >> time now for a cnbc news update with sue her rer ya. >> hello, everybody.

here's what's happening at this hour a the davos world economic forum, the saudi fm is denying allegations that bezos phone was hacked >> there's no real evidence that we can see and, therefore, we think it's not a serious accusation at all. >> the head of the renovation efforts for notre dame cathedral says it's still too early to say if the church can be saved this because there are some risky procedures to complete before it can be fully restored. and today is the deadline for victims of the equifax data breach to file a claim its settlement with the governor entitled affected consumers to free credit monitoring and identity restoration services for the next several years consumers may also be eligible for monetary restitution so check that out. that is the news update this hour morgan, i'll send it back downtown to you. >> sue, thank you.

opening arguments are under way in president trump's impeachment trial. >> morgan, house managers are taking turns delivering the opening arguments in the trial the chairman of the house judiciary committee, jerry nadler, kicked off this round and last night he had made some republicans pretty angry when he accused them of engaging in a cover-up today he started on a more conciliatory tone. >> i would like to thank the chief justice and the senators for your listening and patience last night as we went into the long hours truly, thank you >> so democrats, they are turning down the rhetoric and focusing more on principles rather than on personal attacks. still the white house defense team seems eager to respond. >> we will challenge aggressively the case that they're putting forward based on what we're hearing and we also have an affirmative case that we're going to make as well. >> the administration's opening

arguments are expected to begin on saturday, guys. >> any explanation or color around why there was a more conciliatory tone this morning >> well, i think that we heard a lot of anger from republicans who said that the tone as the debate sort of dragged on into the overnight hours got too heated you saw also chief justice john roberts have to step in and really scold both sides saying that that is not the decorum that is expected in the senate floor. so i think that the unusual step of having to have the chief justice speak out about this was really a slap on the wrist to say tone this down a notch and make sure that the senate is a place where cooler heads can prevail. >> jamie diamond weighed in on the market earlier on "squawk box," saying there should be more cooperation between the fed and the white house. >> i also think that we have to

have coordinated fiscal monetary and regulatory policy. you see china do that. in the united states you don't see it that much if you want to kind of grow faster and not cause some of the problems that can be caused by rapidly rising rates or something like that, you're going to need both and you're going to need it globally. >> that sounds like you don't think the federal reserve should operate independently from the white house and the presidency. >> no, they can be completely independent. that doesn't mean they can't be coordinated. >> joining us now to discuss, former dallas fed vice president jerry driscoll what's your take on this either you have a fully independent central bank or you have coordination between fiscal and monetary policies? is it possible to find a middle ground >> yes, and i think what he said makes sense. the fed independently operates its procedures, but the goals are set by gong, low inflation,

maximum employment, and in essence the fiscal policy changes, tax cuts and the deregulations that occur is an adjustment to these goals in saying simply we're going to try for a little bit higher growth and i think the fed has to take that as a given and operate within the new policy framework. >> so basically to dig into that more, the fact that the fed was tightening and raising rates into the end of 2018, in the midst of all of the fiscal policy changes is the opposite of coordinated >> yes, that was the opposite of coordination i think jamie diamond is trying to support chairman powell, but at the same time nudge him to a more pragmatic position. >> clearly he alluded to china there as well, although did not explicitly articulate favoring a switch to that model but china has complete government control of both monetary and fiscal policy

is there an argument if china continues to grow and continues to be the u.s.'s biggest economic rival that the u.s. should adapt in the same way as if to say we need to be on equal footing with the next biggest economy in the world, regardless of how it used to be done and how people have thought it's been best to be done here? >> no, i don't think that's necessary. we should have the self confidence to do things the way we want. but i think, again, jamie diamond is just trying to say the fed should not think about tightening when in a sense fiscal and deregulation look like they're being successful. >> i want to get your thoughts on this mandate from congress to the fed. inflation, it's certainly been a key topic of debate, and whether it exists or not should the federal reserve be rethinking and revamping how it's assessing for that data point? >> i'm not sure that the fed or other central banks have much control over inflation now

and so i'm not sure that they have it within their power to try to change. they can't hit their existing target, i don't see how they can hit a higher target. >> thank you so much for joining us much appreciate it. >> thank you. >> still to come on "closing bell," sarah has more from the world economic forum in davos. >> here in davos, another huge theme, using technology as a force for good in business, and how to deal with disruption. coming up on "closing bell," we'll speak to laura alber, ceo of williams sonoma about how she's getting 50% of her sales now from online. >> announcer: take your business beyond at comcastbusiness.com. de while our competition continues to talk. ♪ talk, talk woi felt completely helpless.hed continuonline.alk. my entire career and business were in jeopardy.

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♪ the top theme this year's world economic forum in davos is sustainability sarah eisen is with williams sonoma ceo laura alber to talk about how it impacts the company's bottom line. >> so you've been picking up on

the key themes, including this massive push towards sustainability and esg how do you think about that at williams sonoma. >> i think it's inspiring to be here, first of all, with the conversation that's going on and to hear the real action that companies are putting in place and also hear how the public and private sectors are coming together to make a difference. there's a lot to do. we have been at this for a while. we've made a lot of progress but we're certainly not where we want to be. >> how do you think about it as a ceo when you have to consider short-term issues like profitability, like meeting quarterly earnings, buybacks, cost cuts, the things that wall street likes versus the longer-term investing in these type of policies and the capitalism debate? >> i think it's great the consumers now understand how important it is and they care and we're seeing that in their decision to buy organic cotton, and our fair trade products. we were one of the first that

went fair trade with our home furnishings and the consumer response is telling us that they are willing to pay a little bit more for better quality and for sustainable consumption. >> what are you seeing in the overall consumer besides the move toward more sustainable products >> i am optimistic and i'm real excited to see how retail and digital are coming together. and we've done a lot of things that are new this year in making it more convenient for our consumers to come to our store, to buy in the store. we ship from stores now. there's a lot that's maybe even talked about in retail, but hasn't really happened, particularly with home furnishings yet. >> i don't know if a lot of people realize, more than 50% of your revenue is now -- >> 58%. >> online. >> yes >> why can't macy's figure that out or other department stores and retailers? >> we've been at it for a while. we had our catalog business,

which is our big house dna we learned how to ship products to the consumer a long time ago. at the same time we've built beautiful scores across these seven brands and i think people still love to go to a store and sit on a sofa. so even though they research online, they also love to see big things in stores that are going to last a lifetime. >> how do you think about technology, which is another huge topic here? there's a debate about whether it's a force for good or evil. for a company like yours it's been working. >> it takes the friction out customers want to know where the furniture is and understand dimensions and what we've done with the 3 d imaging has really helped people understand how the sofa, the bedroom set is going to look in your room with your windows and light. and that's something that you couldn't do a long time ago, or recent, i should say. >> are there enough women at davos this year? >> i think there's needs to be more women i think there needs to be more

youth. i'm thrilled to see that and we'll continue to come out and make a splash here and get other women to come along with us. >> that was sarah eisen in davos with the ceo of williams sonoma. >> up next, gm is taking the wraups off of its first driverless car >> and coming up on "fast money," don't miss the interview with dr. oz, who will be discussing the coronavirus outbreak "closing bell" back after this you should be mad your neighbor always wants to hang out. and you should be mad your smart fridge is unnecessarily complicated. make ice. making ice. but you're not mad because you have e*trade which isn't complicated. their tools make trading quicker and simpler so you can take on the markets with confidence. don't get mad get e*trade and start trading commission free today.

welcome back to "closing bell," a quick check on texas instruments. shares are lower in after-hours trading. two more companies, meantime, are just reporting results and kate rogers has the details for us. >> industrial software maker ptc beating on the top and bottom lines and raising it's ull-yea 2020 epf and revenue guidance. it's higher by more than 8% and we have adhesives maker missing on the top and bottom lines. they also issued full guidance that was below analysts expectations in the release their ceo cited a weak external environment. back over to you. >> thank you still ahead, look, ma, no hands. gm unveiling it's first driverless car, one without a steering well or pedals. we're going to discuss. >> and don't miss the ceo of our

parent company, comcast, brian robes "uartonsqwk box" tomorrow that's at 7:30 a.m. eastern time "closing bell" back after this ♪(rocky theme music) fifty-six straight, come on! that's it, left trade right trade. come on another trade, i want to see it! more! ♪ 80s-style training montage? yeah. happens all the time. ♪ when you look at the world, ♪ what do you see? ♪ where others see chaos, we see patterns. ♪ connections.

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♪ i'm losing my mind just a little ♪ ♪ >> welcome back lets get to mike for the final installment of the dashboard. >> wilf, i'm looking at weather the investor mood has reached escape velocity. seeing a lot of ways it's getting ee bullient. looking at the professional investment advisers. investors intelligence numbers you see a uptick in bullishness below 60%. seems to be a level marking extreme bullishness. we were above there keep pointing out early 2017, late 2018 we got there. when you got to 60% bulls it's not as if the market stopped in its track and went lower in the contrarian way this is the spread same story, high in the range but not surprising we have had the lock step rally a few months it's elevated but not necessary necessarily a smoking gun in terms of getting bearish all at once this is the ratio of put to call options. when in goes up traders are

getting nervous. bying many more downside protective puts rather than calls. that's 2016. this is multiyear lows, nobody at these levels seems to be interested in hedging downside in individual stocks you know when you start worrying when it goes up from lows. when it continues to make new lows it means the rally persistens in out there. the straws are in the wend that people are excited but nothing says it can't go on. >> the pull call ratio is selmer. >> that's the one outside. >> the previous chart, i guess, the difference between the two shows aside from the rebound in january last year after the selloff it's been roughly the same level since and we no he. >> it has hovered in the zone for a while. exactly right. most of the last year. it hasn't gotten above that unless you got in real high momentum phase in early 2018 but you're right it's steady interesting the bears hardly move at all. it's just about one sixth to a

little more than that of people saying yeah we're the outright bearish and fight the tape. >> thank you up next, wall street buzz the top things investors are talking about today. "closing bell" will be right back ♪ it's either the assurance of a 165-point

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lets look at how we finished the day on wall street record intraday highs for the s&p and nasdaq earlier in the session finishing well off the levels at the end of the day the dow actually slipping into negative territory at the close, albeit just barely small caps and transports were the underperformers. >> now to the buzz on wall street gm unveiled the first driverless vehicle in san francisco called the cruise origin the it has no manual control, no peddles a steering wheel cruise a majority owned subsidiary did not give a specific time on starting production honda and softbank also investors in cruise. phil lebeau joins us now phil, i wasn't expecting this to be a driverless ferrari. but once we get to the stage of driverless cars, are they going to look as lets be honest boring

and lame and family oriented as this. >> lets be clear. >> family oriented >> this is for an autonomous ride share service the whole goal that dan amened running cruise stated -- i talked with him about. he said this is about convenience at lowest cost in the environment people want to be in. if you don't need the steering wheel for ride sharing if you are getting picked up and going somewhere, why have the steering wheel in there especially if the vehicle is autonomous a couple of things to keep in mind that's dan amened at the unveiling. and see vehicles are not allowed to be on the road without a steering wheel at this point that's likely to change in a couple of years. that will impact the development of the origin. but give them credit for this, wilf people want the auto makers to think outside the box. they are with something that looks like a box but this is about autonomous ride sharing. >> whether it's this particular

vehicle, phil ob comments from elon musk at tesla. >> right. >> whether some of the vision laid out by uber it seems to be moving towards autonomous tax y fleets. >> that's the goal but we should point out autonomous technology is coming along slower than originally anticipated. i remember doing stories in 2015, 2016 appear they said yeah autonomous cars in big numbers by 2020. we don't have fully autonomous cars right now we have vehicles with elements of driver assist where it can be autonomous for short periods where you don't need to hold the steering wheel, not technically autonomous process it has a number of things that need to be fixed or hurdles that need to be cleared that's going to be the big challenge when we see that and i suspect it's going to be further out than people originally thought >> to be fair, i do also applaud the head room and leg room

looks spacious. >> looks like a tram car. >> wilf if you're in an urban environment and going from point a to b do you really care as long as it's on time and picks you up and you have room to sit in there >> no can't really. >> especially if the cost is lower than other ride shares >> just playing somewhat but phil, anyway, i like it. you've spun me around on it on the course of two and a half minutes. >> there you go. >> looks like the kind of thing that would be a shuttle. >> yeah like in the airport. >> resort. >> yeah and maybe the first stage of autonomous. >> exactly anyway, back to the broader markets, mike, clearly a bit of intraday slippage, dow ending negative other two positive. but very close to highs. >> we have seen the episodes of fatigue in the last couple weeks and haven't lasted we have seen the tech sector in particular carry things forward. we'll see if it changes right now. we are looking a bit like it's

winded tomorrow leading economic indicators that has been something that's been a bit soft in terms of the macro. and of course jobless claims those are maybe two things and the bond market and stock market might key off. the 10-year bond yield could look to have movement. the utilities and tech were the best performing sector energy the worst performing that does it for "closing bell." >> "fast money" begins right now. and we are live from the nasdaq market site over looking new york's times square. this is "fast money. traders tonight are team seymour, chyron finerman, guy adami. the impact of coronavirus and health care stocks and airlines and casinos. all on the move. a special guest for you. dr. oz in the house talk about what's being done to prevent the pandemic president trump taking another swing at the fed, what he told cnbc about the markets today you can't afford to miss later it's your call of the day. one analyst ringin