reason why people are distracted it's probably good that it's over. >> it's been good having you here come back anytime. watch "the profit" tonight good episode thanks to tyler for having me. >> flies to have you in town, kayla. welcome to "closing bell." i'm sara eisen down at the 3m post that doubt component is slipping hard today on an earnings miss, the rest of the market is bouncing 59 minutes until the close. >> i'm wilfred frost let's have a look at what's driving the action today consumer confident coming in better than expected u.s. raises the travel warn in an effort to contain the coronavirus. we'll get important reads on the

global economy on the show today when we hear from apple and starbucks amongst other. as sara said we're up about 250 points joining us for the first hour is steven grasso from stuart frankel. good to see you. >> good to see you. >> what do you make of this bounceback >> just a bit of a relief rally. it felt like it wassed a reason to sell off. in no way shape or form could it be dictating at the movement, but i totally get it the this is a low -- and god-awful ebola was 90% mortality rate i get it, it's horrific, but it should not dictate the moves within the marge, so the pushback there is you're talking about the second biggest economy in the world coming to a virtual standstill and in some cases an

indefinite holiday, and industrial and consumer. >> yeah, so the pushback to your pushback would been that we're talking about a very small blip on the overall macro scheme. yes, it's terrible that it's dictating growth, or it's crimping growth, but it all should be looked at at a short-term mechanism so in short order, they should think the market is going to rebound, but i totally understand the sell-off, but i don't think it's warranted to be selling it off. >> we are seeing certainly a bounds today let's focus on the big story we're watching seema ploddy with a look at the names, uniyoon is in beijing with the latest, and mike santoli has the market dashboards as always first to you on some of the movers. >> the fears around the coronavirus are top of mind, but the sell-off has abated for now.

the focus has turned to profits. whether it's united technologies whirlpool the best performing stock on the s&p right now the outlier is 3m. worse than expected results, cutting 1500 jobs as it faces challenges like automotives and china, the ceo saying he sees growth returning this year, ramping up production. listen in. >> with the coronavirus away, things -- or focus is ramping up our production as quickly as possible to meet the dematched mands. >> that stock now selling off stead lows of the day, down 5.6% now we look to earnings for honeywell this week.

back to you. seema, thank you so much the number of coronavirus cases have increased 106 deaths so far in china the cdc has instructed americans to avoid nonessentially travel to china it scott gottlieb weighed in on china's respond to the outbreak. the problem is we don't know what they're looking at. we've been patting them on the back for being good actors, but they're still not behaving well. so we don't really know the full scope of what they're facing >> let's bring in eunice yoon in beijing. what is the latest on the ground >> reporter: well, wilfred president xi jinping described the coronavirus today as a devil that china was confident it

would be able to slay. they meat those comments to the world health organization chief, but despite the confidence, china seems to be preparing itself for a surge in patients they have decided to build prefabricated hospitals, similar to the ones that are currently being built in wuhan the hospital is expected to be completed in ten days. the spread of the virus is creating a lot of confusion among companies about exactly what they should do. most companies have been announcing, when including forward, they are most likely going to keep their doors shut until february 10th, as the extension of the lunar new year hold day some companies have said that staff could work at home during that time, but everyone is monitoring the situation they just don't know how long the crisis is going to last.

>> eunice, we have seen various reports, it will extending when they're expecting to see workers come back into the office, extension of the holiday again as opposed to when the holiday might end? >> reporter: that's right. i think most people are expecting the doors for the vast majority until february 10th or maybe even longer. this isn't probably going to be as -- have as much of an impact as some of the chinese tech companies. we were calling a lot of them. they said their staff would be working from home, from february 3rd to february 7th, which were the days fit officially.

>> reporter: because there's so much so much concern about the severity, wilfred. >> eunice yoon, thank you very much from beijing, 4:00 a.m a lot of talk about the balance sheet, here's the five-year chart of the fed balance sheet, total assets on the bottom panel right here, along with thes&p 500. so much focus is on this subtle

wing over here, has coincided with the 23rd, adding liquidity to try to calm the market down just trying to keep the policy since 2014, the balance sheet did not grow, and then it started to shrink. we have nine rate hike es, a lot of tightening. we did get a correction, we had a sideways period, but then the market as the balance sheet shrunk, the market recovered right back to all-time highs why the focus on the last few months, even though the short-term reserves are being added do not travel in any direct way into risk assets. it's very interesting, it's interesting to me, at the same time we had a phase one trade deal agreed to, and the upward inflection indexes, and basically this sense that we 'vertebraed a recession scare.

all of that explains where the market has come to nonetheless we will be listening intently to the fed's plans. >> sit need to look at the global balance sheet they were expanding, maybe that's why the washington was still able to raleigh if you are in the camp. >> why didn't it help global stock markets? >> that's all that money coming in. >> what happened >> do you think we'll hear from b.s. comments from the chair tomorrow >> almost certainly. >> we'll have that press conference live here tomorrow on "closing bell." for more on today's rally, let's bring in toe to be tobias. i think the issue that people have made a big too much of the

in the repo markets, the sense of this wonderful concept when you're putting in supply-side economics, particularly money-supply growth, that that money goes into risk assets. it sends to work extraordinarily well it tends to work less well when you look at the u.s., simply because there's a lot of receptacles. in if goes to risk assets, it could go to venture cap, private equity, it could go to real estate development it could go to new business formation. it's not necessarily funneling into u.s. squeeze. i think it's a common misperception that i can -- but nonetheless that is a kind of mind set. >> do you disagree that we saw that stop. would that have an immediate affect >> i do. i disagree i'm sorry.

tobias when you had quantitative tightening and the fed tightening as well thafrlgs a double whammy it was the equivalentened of raising rate at every meeblgt, so when you have q.e., it's the equivalent of loosening, even when they're staying pat so i do believe it has more of an effect, but also to pull in sara's thought process, when you look at around the world where interest rates are, that's a direct translation of why the risk assets when you're on a search no yield, people rush into this asset, the first, before they choose those other assets. >> there's one other element. >> no, go ahead. so from mike's comments question earlier, i think part of it is as the dollar strengthened money comes into the u.s., u.s. yields

are more attractive. as a result people come in and buy u.s. they aries, that tends to support the dollar, then attract more money as well, and if the -- you probably see emergen markets. as far as tomorrow, i think the fed will be very clear, they're there to support the economy, they're not going to, you know, squeak out things like they did late 2018. they've said they're not going to raise rates until there's sustained inflation, i don't think expect that in the very near temple. term. i know you just released a new set of forecasts foss year what are your top couple sector picks in the u.s. for the year ahead? >> we continue to like semiconductors we have upped banks recently, which has caused some general controversy, particularly

services, valuations have been pretty extended. i do think the economy is in okay shape the coronavirus probably has had an impact, but the biggest concern, when we're looking at sentiment late thursday night, last time we saw this was september 18, there's a 70% probability that the markets will trade down. ours concerns are more about that >> tobias, thanks for joining us. >> thank you welcome back, sara >> thank you i thought we were going tob to have a big balance sheet effect. i like the acronym still ahead, one of the most important days in earnings season apple is up. and after the break, the uk

defying u.s. pressure for h haw-hhaw. home prices year ovefver ye also consumer confidence topped january. ba, e w u rht will beig ckthdoisp 226.

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now you can take control of your home wifi and get a notification the instant someone new joins your network. only with xfinity xfi. downlaod the xfi app today. 43 minutes left in the session. at the moment we're up by 0.75 of a percent nasdaq up, just off the session highs, as we stand, but clearly a healthy rebound. shares of harley davidson are falling, missing on revenue citing weak motor psych the sales. well oaf its lows. the uk defined pressure from the united states say it will allow huawei to play a limited

role in the 5g mobile networks the. huawei asecurity chief weighed in earlier on "squawk box. >> frankly we don't really see this as a win per se this is a very ball step in a process that begin 15 years ago. neff taken a somber approach. >> if you thought the grant commentary was harsh, ben sasse said it's less special after the uk has made this decision, and quite a few conservative mps have criticized the decision

>> huawei has a bigger presence anyway, so compared to the u.s., it's not like it's a totally new decision second the wireless aspect is so much the key. cable broadband exposure is much, much worse >> they walked a fine line in saves some money and having some efficiencies, and to replace all of that where they already it -- it's not a question of the replacement cycle necessarily, i don't think. but this applies as well to aier they have said, show us our alternative and we'll go that route, but it's not nearly as effective, where people are aware of, nokia, samsung, all a long way behind, but this is seen as a bolt decision by boris

johnson. of course he needs a u.s. trade deal in due course we'll have to see if this derails that, but at the moment for overt tweet by the president. >> i think it was smart on their behalf i think staying away from servers, just doing the base stations and antenna was probably the most political thing he could have done, and back with replacing a lot of old -- the u.s. should have offered to replace the old components forget the politics. >> is that possible? >> if they're state spying, basically and the uk is handing over the mobile network system to be built by beijing. >> you won't hear them push back that we disagree with the risks that come with china

they're going to say we disagree th huawei will have a book-door way in the big picture stepping away from this that this highlights is the very different perspective that a small economy like the uk has compared to the u.s. towards china china is a much bigger part of trade in a relative sense than it is to the u.s this is that balance do we trust them fully probably not, but do we need them more? >> it sounds like they wentz more of a political route versus a technical route in decides thatted risks are less with the base stations and the antennas versus the servers one they're in, they're in i don't have to be a 5g expert to say once you let somebody in that's a spy, it's a spy

>> our relationship is no less special. >> good to hear. a rough et day for beyond meat we'll tell you what's up and apple to report after the next hour. dan niles will join us to break down those he's called it pretty accurately tomorrow as well, don't my my interviews with david solomon. that would be goldman sachs first-ever -- >> i'm just excited. >> tomorrow at about 3:20 p.m. >> there's goes the relationship again. [ laughter ] turn on my tv and boom, it's got all my favorite shows right there. i wish my trading platform worked like that. well have you tried thinkorswim? this is totally customizable, so you focus only on what you want. okay, it's got screeners and watchlists.

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the shanghai stock exchange just said it will remain closed. >> i think retailers will face significant problems nelco, wynn, sand, all down. >> all big hits today in that downside playoff >> announcer: watch or listen to cnbc live on the app welcome back, jpmorgan trimming the fact, seaing the stock's recent price appreciation has rendered a more balanced risk/reward lowers the prils targets from 138, so not a big downgreat. >> still having an impact today. wells faro initiating a slack, saying all that bears sent miss is overdone.

wells s. up stewart butterfield joined us yesterday and here is his response. >> it has been kind of surprisingly aggressive attack, but ultimately what happens is what's going on with customers and the proof is in the pudding. we look around the world, expanding here, in europe, in asia, great set of enterprise customers, and we haven't seen that rhetoric or the press releases show up in the actual marketplace. rely read a whole other notes, this one today i don't think actually uncovers anything

they've really been saying it's full enough already. we were valuations overlaying, people felt better going into microsoft for a value play >> also about a lack of profitability. quickly, beyond meat >> its think it's a great call this is the one stott not about the health conscious, but jpmorgan has played it perfectly. 2. >> 32 times, that's enough.

beyond made et cetera -- so there was a couple tailwinds he we'll, stewart butterfield. after the break, we have a preview of what to expect from appear 8's quarterly report. >> and a quick check on bonds. treasury yields making a comeback, ten-year yield ticking higher we did have good data, and on the housing front, also better sentiment overall. we'll be right back. - [spokesman] if you've tried college but never finished,

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three things driving the action, we have misti mixed data overall, the u.s. raises the travel warnings to china

in an end to contain, and we will get -- and on china on particular hello, everybody a very powerful 7.7 earthquake has struck south of cuba, northwest of jamaica, according to the u.s. geological survey. it was centered 73 miles nerd. a tsunami warning has issued on capitol hill, republican senator mitt romney says he could be on board with calling witnesses in the impeachment trial of president trump i think of each side choosing a

witness has some merit >> and large crowds are gathering. aerial video of a parking lot in wildwood shows thousands waiting in line. president trump will be holding the event with jeff van drew, who switched parties recently. mike has the second installment.

they have doubled over the last year and earnings estimates have hardly moved. what you're going to see is for the fiscal years beyond this fiscal year, which is '20. you've seen a huge jump in the next fiscal 22, and fiscal 23. so the market is says not so much that it's going to take off, but the long of herm term growth picket tissue has improved, and all rest of it then compared, you can see on a almost straight line >> guys, mike. >> thanks so much for that we're going to discuss apple

more f cara swisher joins us. >> do they really value this company as a services company, such that we don't need to be worried anymore about individual quarters, or will that -- >> no, i think some of this is drives iphone 11, also i think the surprising success of airpods is another thing of course they're making these big bets, and streaming and content, and so i think it's a good picture, where you do have a varied thing, where it doesn't just rely on the device, but that said, i think the iphone 11 and sales are critically porn important still. there's obviously worries about

the supply change, i think that would be among -- we'll see if they address that at all, and you will sales in china, more robust, how those will go. i think people feel safer. >> what about that subscription tv service that was launched in november how do you think it's doing?

>> there's disney with the disney plus, also got for free behalf me other things, and it's in the cereal box, i guess i think they're in here, i think people are not negative. there will have to be some of the money spent to muscle their ways into the market, so i think people are feeling good about it we'll see if they can follow up with shows that are tent poles "the morning show" started off slow, but i think people are catching on to it. disney can throw so much content in, it's a good start. >> that show grows on you as you get more into it. >> it does. >> is the setup too hard for this quarter >> i'm an apple stockholder, so i would have no problem with the stock giving back a bit.

the 50-day moving average, i don't think you'll see that. i think it would be tolely reasonable who would have gressed apple and hulu -- and everybody knocked on it, saying they didn't have a large amount of offerings. for me it's multiple sxoongs, about 46 billion in services revenue at a 64% margin. that to me is keeping me in the name, even though you could keep in fluctuations, and most people are holders for the longer term, and hoping that that multiple expansion is more of a growth multiple versus a hardware multiple. >> cara, thanks for joining us good to see you. you have the last-chance trade, just 21 minutes left. >> and we'll counseled you down to the top of the hour all set to cross after the bell

today. at 4:30, the main event, a panel ready to react to oop 8 results. that's coming up on "closing bell." you should be mad that this is your daily commute. you should be mad at people who forget they're in public. and you should be mad at simple things that are unnecessarily complicated. but you're not mad, because you're trading with e*trade, which isn't complicated. their app makes trading quick and simple so you can strike when the time is right. don't get mad, get e*trade and start trading today.

a few minutes to do, here's a check on the closing bell. it was all red yesterday, all green today, coming off the two worst day since october. why are you laughing >> just market zone, the big board, the closer at well. all these new brandings. >> cxerox is up. "last chance trade."

where you you going? >> this a binary trade for me, general electric this is once i've a saying $20 in 2020. larry cullpaster doa nair yates this story if you just look at fundamentals, you'll miss the story. you could still sill it on fundamentals this is about a turnaround you can't buy a turnaround if he nair yatrrates it properl >> snap has done nicely. >> up until yesterday it was up 40% in 30 days i'm staying long into earnings let's see if the path to profitability is --

ahead of earnings tomorrow thank you, steve grasso. this is the last at the commercial he under the closing bell we are going inside the market zone as a reminder, you can always ivnn to us le. the dow is up 220. online.eputation wad i felt completely helpless. my entire career and business were in jeopardy. i called reputation defender. vo: take control of your online reputation. get your free reputation report card at reputationdefender.com. find out your online reputation today and let the experts help you repair it. woman: they were able to restore my good name. vo: visit reputationdefender.com or call 1-877-866-8555.

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with commercial-free coverage until the close. >> today we've got samantha here as well. let's kick thing out of with apple, trading higher. the street is looking for earnings per share and revenues of 88.5 billion, according to refin tiff it's an easy setup, right, mike? >> without today, it might have looked like an easier setup. maybe it was a little too short term to have people feel like they were going into it. is a so that's what we'll be -- what's the key >> it's services and china they

don't quantities fit airpots. >> it's been real good for them. that might be a good swing >> it's such a business part of the index. is it possible not to have a position >> i think if you look pour -- tech is already up 6%, energy is down 5 1/2, so i just think, you know, even though it's the beginning of the year, there's a lot of dispersion and return. >> obviously a huge trade tied to apple, tied to china, and potentially supply chain disruption. >> yesterday it looked like we were finally coming to the leaders. they were going to get trimmed back, had a bit of a reset that's not happening today might be just a reflex bounce after two days of heavy selling,

but today you're seeing it recoup obvious li he depending on houses you want to interpret it, it's just a muscle memory. >> amd also out after the close. both of them are higher today. we have about ten minutes left to go. after the bell we'll get frerngs starbucks. kate has more on what to look for. >> analysts are looking revenues of 7.1 million estimated to increase by 5.2%, as strength has been building in the united states under kevin johnson's leadership china will be another area of focus as that all-important market has gained in strength. commentary will be key on the earnings call. starbucks has closed some locations in wuhan mcdonald's announcing the addition of two chicken

breakfast sandwiches back over to you >> no meatballs. >> we know those are your favorite. >> but it's real chicken. >> that's right. >> the chicken wars have taken off. kate, thank you so much to that. mike, this starbucks, there will be a lot of people on the call, but even the u.s., same-store sales growth han unbelievably strong. >> and the stock has not acted all that well. at the its valuation premium built to a fairly stretched degree the middle part of last year you had these rolling-over action most recently, so i do wonder if in fact those numbers can be oests enough to kind of refresh the enthusiasm >> where are you in temples of level of worry on the chinese consumer potentially slowing down as a result of this

coronavirus? >> i think the change, the delta in what the chinese consumer is spending will affect it a lot. >> i do think it's a basic point that you will not buy that cup of coffee again, but you might buy the iphone when travel gets up, and clearly that's reflected in we are not far from the session highs. chip maker amd also set to report at the top of the hour. over to frank holland for more a that amd is supplying chips both

being release the later this year, also the first-year guidance last d. rival intel warned of softness, due to some production issues so we'll be watching very closely for commentary on production, and also market share in light of that slough. back over to you frank holland, thanks very much amd was a star performer above the other semiconductors what are you watching? it was not interpreted business the mark as a zero-sum game. this stock just recently broke out, i mean, in the 20-year range, so this tremendous amount of sort of hope and sponsorship, i don't think it'sing in going to be all that easy to dazzle. >> samantha, where are you on that >> obviously it's high octane,

with the growth in the u.s. and china being more tepid, i'm not necessarily sure there will be that demand. none of that is going away, because value has been jud underperforming. >> if you believe the markets, we're on the cusp of a strong upturn, but the stocks have run ahead of the actual bookings and revenue, and pricing is looking better, close great for those memory chip makers it's been a tailwind for them. shares of pulte group after reporting earnings diana olick has more >> sara, pulte stock surged and full-year home -- this all thanks to strong deep mand

pulte is finally pivoting. spring level buyers making up about a third of all sales and investors fearing the financial impact of the coronavirus rush to the safety of the bond market back to you guys. >> diana, thanks so much on the point of the yield move to diana's point, on the ten-year it's remarkable how that moved stocks sold off, but not to the same. >> a couple weeks ago we were at about 180. itis not really sure in we're reacting to things like durable goods number it does seem like a relief type of move. it has been given cover, but yeah, the absolute levels f. >> housing market fundamentals

verse housing stocks where do you see that? >> it's interesting you've seen pretty consisting housing price gains. obviously that plays into housing stocks, but the consumer is still housing it's not stock market gains. so for us if we see gains, it's good for the consumer, which in turn is good for the growth. mike has more on the market internals. >> yesterday was very negative, almost washout levels. it's improved, roughly 3 to 1, that's good, but doesn't necessarily mean a lot of big players. yesterday was 8 a% to the down side, so it shows you today's really is not quite offsetting what we had yet. s&p has obviously outperformed a fair bit, much more so as you

would expect, given the heavy exposure to china so, it fits into the idea that the s&p acts as if almost a global quality trade at work, and it has barked backed offense, given it a spike potentially developing when you have a very pronounced spike, it does often mean there's a short-term low one would imagine they're trying to adjust to where it's going to open, but when we are talking last week, the rest of the world is selling off, the u.s. can only stand off -- japan as well stab stabilized. >> a lot of people are saying this might be a bounce

is there too much uncertainty to step back? >> we felt like the trade deal was down, now we're focusing on this, so a quick bounce definitely possible. >> two minutes level on the session. rick >> an intraday of sevens, today a c-plus auction, that's the grade i gave it. one week of tens, yes, we held the 156 today, but a meager bounce finally a three-day dollar index, it continues to perform well no big huge sessions, but still offering at two-month highs. counter-trend tuesday lived up to its name. >> we're see a big rebound in the sell offsectors yesterday. chips are leading the way up

some of these apple suppliers, we'll be watching them following apple's news meantime chienes stocks bouncing hit hard, now positive for the -- look at the the only sector that is positive for a whole week >> remember, it was this time last year that tim cook talked about the magnitude of the economic slowdown. will he say something about the outlook, that will be a key question t. yesterday, the cruise operator claws back here, this is the name you want to keep an eye on, rye sill jens in home builders, highest levels

since 2008 general electric tomorrow, we'll be watching that stock, now up 27%. the dow breaking its five-day streak, with a game. if you're just joining us, welcome to "closing bell." >> the dow and russell 2000 all had a rebound day after yesterday. we didn't get any 1% closes during mys entire ma ternlt leave. s&p rising 1%.

>> slipping a bit as we approached the close but all sectors still nicely higher >> tech really a standout, as you say, and the safer staples in utilities also higher, but we're at the bottom of the pack. alaska air, all gearing up and at 4:30 apple earnings set to cross about a half hour from now. and we'll get some reaction from the "closing bell" closer. dan niles is joining us for an exclusive interview. but first showing us to talk about the market, still with you, is samantha azarella. >> at least the market is going to try to change the subject in that direction today's bounce i think was

welcome, but if you thought the market was overstretched, i'm not sure that 2 1/2% in a few days was going to relieve all of that where do you stand on edges season so far? inch well, i think in the s&p reporting, 4, 500 overall. 29 any tv. , i think more than the beat or the miss, the guidance is that's going to count the most. this time last year, the 28th of january last year, the guidance was dropping everything down there was uncertainty over the fed, over the trade, a little

2.5% correction because of the coronavirus will not be enough to derail this river >> what kind of information do you expect >> i think sometimes macro seems irrelevant, but we think that daughters is bottoming, and that only will bode well. >> mike, just back to markets today, but also you're having a look at credit today >> credit is improved. today you had a real firming in that market, in credit spreads, so it fits in like with the idea that the market went back to the stuff that was working very well, meaning the large growth stocks today, as well as banks and credit, at those boxes are checked off. i feel, though, that you typically get these bounces, it's hard to draw conclusions,

though >> better consumer confidence, sort of better durable goods headlines, but the certainlies not so hot what data points railroare you g attention to >> economic surprises, with the exception of japan are looking great, notice too the rollover of the dollars the dollar has rallied the last few days on concerns, but it peaked in september and has been coming down since. that's going to bode well. that spread, the german ten-year has come way do you, and we've seen the pickup, even japan just went above 50. >> it's had a pretty strong start to the year. >> yeah, i think in the short term, if you look at the longer

term -- i still think the dollars headed lower, and the indicator for that i think the dollar rallies here awful concern over the coronavirus, which i don't think will be in our discussions a month from now. >> they did have notable misses today. is there something broader >> i think the market has looking ahead. what we didn't see in the fourth quarter a lot of genuine pickup in industrial activity to the way these companieses would be able to benefit from it. between the stocks rallying a bit, just a reminder that they remain in a tough part of the cycle. >> it's a forward view

>> some may soon fall out of favor. at the heavyweight stocks. object declining, a short correction might be on the wait. johnson & johnson, disney, alphabet, among the stocks listed for a correction, a lot of those names are due to just a great run it's a measure of wanes demand it has been very bullish they ramped up equity exposures, and you're seeing under the surface the idea that there is a bet of lotof energy. that's not too surprising, by the way, even in things like the etfs, a lot of folks pointing out volume has not been that great, so i think it's about, guess what we got to late june, people

owned all the stock they needed to own >> i'm wondering for 2020, who will be buying equities for 2020 so what drove the market higher was a multiple expansion so then we have to wonder, well, is positioning going to lead into more inflows? >> herb, do you have a different view on that >> yeah, i think the consensus earnings 175 is probably on the low side i think a -- given a 1.6 where a lot of reduced uncertainly

japan went effective 1-1 usmca going into effect it was not a short te-- we could see a butt of a multiple expansion we're going to dive into thought, in fact we'll dive into them in and out. >> looking at a strong q1, revenue coming in in line, eps 79 cents adjusted. that is a beat estimates we were calling for 76 cents global comps up 5% u.s. comps up 6% that's also a beats. 3% of that the company says is

traffic for the third consecutive quarter. same-store sales up 3% as well adding in a statement here, that the company'sfiscal year 2020 guidance is unchanged from what had been provided earlier in q4. currently we have closed more than half of our stores and continue to modified all of our stores in the market, in response this is expected to be temporary. cleanly monitoring the situation, evaluating as it goes on, december one other important thing starbucks rewards member a very big jump in china the stock is up just about a half a percent >> kate, thank you. by the way, tomorrow

starbucks ceo kevin johnson will join "squawk on the street", 9:30 a.m. eastern time >> a net good news thing, though sometimes when you beat on eps, it's implicitly conservative i think it's overall in the zone, an expensive growth stock. >> but i mean 6% domestic same-store sales growth. international, forecasts -- given the pullbacks the stocks had to beat on the metrics is an explanation for why the stock is un >> definitely, obviously they're continuing the process the interesting data point, being more rewards members in

china than -- >> is that that they're explicitly saying this is expected to be temporary you see so i think there is a lot more uncertainly, but, you know, bottoms-up stock picking >> alaska air earnings are out phil 1.46 per share is what they earned earnings better than expected. this is not a huge surprise given the fact that most on wall street was expected this would by a quarter where they would do better than expected conference call gets under way in about 15, 20 minutes.

we'll let you know what else they have to say herb, i want to pivot back to starbucks do you think that would be bullish for the broader market >> i do think that, you know, i expected a correction in the first quarter because of lower guidance i think companies like to guide lower when they can, so they can beat later so far this season they're just not guiding lower, which means things look readily, really good the other thing that's positive is cap ex. if you look at small business expectations they're not looking at increasing numbers this year. it's hard to bet against the

growth this year. >> i mean, if you look at the u.s. in particular in starbucks, it's a pretty strong picture that comp store sales growth of 6%, on both transaction and ticket prices, really a healthy number >>. >> talking about the stock exchange >> we're out of time on this. >> it's because you stopped getting my coffee for a few months. >> that's probably why guys, we'll leave it there thank you so much for joining us up next we'll dive deeper into the starbucks number and the impact of the coronavirus, and we're counting you down to apple earnings we'll get reaction when the numbers hit. today's closer is dan niles. he's been in and out of the stock over the last couple years, and timed it well we'll look forward to his perspective, next. robinhood believes now is the time to do money.

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even hanging with your dog. so, what are you waiting for? download now and get your first stock on us. robinhood. welcome back starbucks numbers out moments ago, beating on the bottom line, also on same-store sales growth. bob darington ask with us. i don't know where to start, despite the relatively high exposure to the coronavirus.

what do you see make of that >> to be fair i kind of make of it as kind of a hail mary. in the big keep of things, they closed half of their restaurants in china at this point. >> the impact will be probably -- it's almost possible to quantify the timing of which all the of the stores come on line, you now -- typically the cost hays taken the high road as far as issues affecting their customers, their boyees. generally they'll do things right. i think they'll take care of their employ geez once the issues are you want control, to be fair that's the right thing to do. can you quantify that? i don't think so

here we are is a march fiscal quarter i would expect that, you know, most of this problem would probably run its course over the next roughly 30 to 06 days >> bring it back as well to the core same-store sales growth given that the stock, of course has pulled back. >> the comps were very impressive the global comp number up 5% the americas was very strong the international segment, that's a big lighter than what we in the streets had expected certainly china up three is a positive, but, my suspicion is that 3 to 4% for the entire

enterprise may be somewhat of a struggle, depending how long those stores in china are china are down >> what is your rating you were at hold, i think. >> we rate it at market perform. if it were to come under pressure, all things are reconsidered. don't miss kevin johnson on cnbc tomorrow. we've got a market flash on match group. >> the ceo is stepping down, according to a report in the "wall street journal."

and mandy ginsburg will step down to focus on her health. the article details that this of course of match group's full spin-off. shares down a bit around 2%. tech stock rallies back find out whether tech is back on track. and dan niles will react to apple earnings, they are due out in about tens. you can always watch or listen to us live on the gob on the cnbc app "closing bell" is back in a few minutes. - at southern new hampshire university,

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welcome back hey, frank. >> shares of amd fall more than 2% after reporting a beat on the top and bottom line, but mixed guidance revenue growth was slightly above estimates, but q1 lower. the company says it expects sales of chips in the computing and graphic segment to be the driver of sales. the company has the right to provide chipping with the new

xbox and ps-4 in 2020, we'll look for more commentary on that, again, shares of amd down about 2.25%. >> frank, thanks so much for that others from a huge, huge run, and in the last year, i think it's 150%. >> sara, welcome back. great to be. ebay shares down about 2.5%, but missing on q1 revenue guidance 81% per share. also beat or about in line there, 2.82 versus 2.81 billion. q1 guidance mixed for. eps was slightly above we had a few other number here,

gross merchandise volume another online retailer, that came in slightly below, so analysts were expect the 23.6 billion. we got 23.3 billion analysts will be looking for any competition as well, and any clarity on a pinch permanent ceo. again shares down almost 3% at this moment. back to you guys. >> kate rooney, good to see you too out there. mike santoli has his third dashboard. >> the bigger q is the qqq, the etf it's been the marquee subsector of the market. we want to point out where this stands as far as a trend from

this rally in october. that's what you got in terms of up side. it really just went back roughly to that line it's holding this general past it's not really unwound a lot of the momentum we'll see if it has to, though this enaddition very heavily -- just for fun, two years, go back two years, where we were at a major peak for a while long-term treasuries have outperformed the stock market. it's actually even more since that moment twoiers. cherry picking a star point, but it is interesting to know that rates were 3%, down almost half that right now >> mike, thanks so much for that coming up next, the final countdown to apple's earnings.

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multiple evacuations, but no initial reports of damage. hospitals officials meeting with wounded soldier taliban militants were apparently able to breach the compound, because a sympathetic police officer opened a door for them, according to local officials. here in connecticut, a man accused murdering his wife, was rushed to have hospital after an alleged suicide on attempt he was late for a bond hearing. ford is recalling its popular f-150 d. to fits a problem with tailgate latches. through 2018, trucks in canada that were built at two u.s.

factories. you are up to date sara, back downtown to you expecting around 20% growth there on revenue for apple >> i'm also going to watch the shared account, because. and iphone still a significant part they changed the way they reported a year ago. wear ables has a big strength of growth >> not what hall necessarily we've got the numbers. josh lipton? >> apple reporting q1 eps versus expectation. revenue up, better than expected 91.8 billion

38.4%. iphone revenue up 8% in the quarter to 56 billion, the street was looking closer to 52 billion this quarter services revenue up 17%. services margins in the quarter 64.4%. mac 7.2 billion, ipad 6 billion. greatest china revenue up 3% turning ko the q2 guide, between 63 and 67 built on, also looking for 62.5 billion the margin forecast between 38 and 39%. overall sounds like a better quarter. for more less any bring in ed levy we also have dan ice of we hadbush, tom forte of d.a.

davidson you raised your price target looks like a pretty strong quarter and guidance. >> this is a jaw dropper pulled a major feather in the cap for cook in cupertino going forward. i think this puts fuel in both pieces in terms of guidance, in terms of china and in my opinion a-plus quarter, even more than the bulls were expecting. >> another not trying to find a negative in what is a big, big beat, but almost all of the beat is iphone, which is the biggest part of the business, but the other services and the like, a bit soft. >> i agree with dan overall it's a monster quarter, the

services, however, was a little softer so its growth is sort of softening there, because they launch eed apple tv plus, and i thought the up tick would be more i'm surprised there was that more activity there josh >> if i did have a chance to check in with apple's ceo tim cook and what kind of impact that could have on apple, below impact on sales or production. tim cook saying, listen, he'll have more to -- he did say it would impact the range, cook telling us, as you can see from the range it anticipates some

level of issue there, otherwise we wouldn't have a 4 million range. certainly better than the 62.5 bill yoon that the street was looking for cook telling us that the iphone 11 continues to be the top seller, why is that the most pop usa lars? cook saying they love the battery life, the camera, the industrial design, the battery lasts all day, we also hit the right price with it. we'll be on the conference call at 5:00. >> josh lipton, thanks very much were the expectations too low for that >> you know it's a drumroll to the upgrade cycle. 350 million of 925 million are now in the window of an upgrade

opportunity. i think this is the second, third inning of starting, you even step back aier, in my opinion, this is really just the next step. >> so basically i look at the second for apple so last year was a very challenging year, but a wonderful year for the stock to the extent you have what looks to be a super cycle that plays to their strengths so the iphone 11 benefited, but if you look at the setup for calendar 20, i think apple's got more gas in the tank for the stock. >> the stock is an interesting story. it's already doubled for the last year. of course it was down over 20% into the base that it doubled from, but this is no the

after-hours action it is a new high, a couple% below. did so this whole kind of virtual cycle is running, but -- if he got re-rated in terms of the multiple in part based on people thinking this would be a transition to services, and accessories, the up side to the estimates are not iphone, so who is the multiple on that? the answer is probably the upgrade cycle is programs more predictable 679 it seems like it's better than we expected,

and then just on the aeshls, you know, the airpods, even apple tv, i think the cycle on the iphones has more of a known thing. it's the other businesses that potential could feel more growth >> yeah, i mean, china is the question mark, tom on the call there would probably be question being coronavirus, supply chain just a year ago, this is the quarter that cook had flashed guidance for the first time in 15 years. >> they sure have, but to the extent the company generates 15% of sales to consumers in china while it's not currently affecting the supply chain, they're still heavily dependent on the supply chain, dipping on

the extent of how the virus spreads. otherwise a dramatic rebound in the china sales, which is quite impressive >> tom forte, dan, thank you, and ed lee up next, more reaction when we speak to dan niles, who's ret st 9 ♪

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discover the option that's best for you. call today and find out more. i'm proud to be a part of aag, i trust em, i think you can too. apple just out with earnings, the stock is higher after market, on a big beat thanks for iphone sales. our closer sold out of his iphone position last week. he joins us on post 9. hard to keep track of your apple position. >> i'm a hedge fund, so the get is to trade around, and get the best risk-adjusted -- >> do you regret it? >> absolutely not. all the beat is from i phones.

4.5 billion of up side from that the reason the multiple has gone up to 48 times, and 14 times over p.e. is people have convinced themselves this is a services company and therefore the rode is more predictable it was supposed to be i think 13 billion, and came in a 12.7. the wearable piece, that came in dead in line, so a hardware company trades an a 10 p.e., not a 25 p.e., so i look at there and hope the stock is up a lot, so i could use it to hedge the positions that i have that are hardware positions that ship into apple the one reason i don't like

to do an instant analysis is i want to hear what they have to say on the call. the first question out of their mouths should be, well, why did you miss the services number i'll tell you why they missed it when you're not selling that many iphone relatively historically, right? last quarter being the september quarter, revenues were up 2% the iphone revenues were down 9% you can't sell services to somebody who doesn't have your phone, right people are trying to unlink them, but you can't do that. >> back to whether the multiple is justifiable or not. is it, though, legitimate to start to think that the iphones themselves are in fact services? is that what people did last year in. >> think about this.

i always find this interesting if you go back to two years ago, to 2018, do you remember a all the people on your show saying there will be a super cycle, and then they preannounced negative for the first time in, and the took hill an all-time report high in october. at the same time the china trade wars were heating up everything else that's exposed to china is being hit. i know i was on cnbc talking about this, and why are so many ignoring the risks if they're trading at 10 p.e., i have a very different pin. at 24, when a hardware company is changing in the multiple range, i go, well, if i want hardware exposure to apple, is the lumentuh has 30% of their revenues from a uple

i think their revenues go up 60% this year to apple, whether apple grows or not, because they're adding new features. why would you own at a 24 p.e. that i would own -- >> the push back, i guess, the devil's advocate position would be up side on iphone last quarter in a supposedly nothing quarter, maybe the run rate, the replacement cycle is a big more predictab predictable? how predictable was the replacement rate the last couple years? done focus on services tomorrow, fog us can on the iphone beat.

that's at a 7.5 billion people. up until this last year, been you had eight years of shrinks units, and people were buying more cell phones so i think that's the thing you need to think about. i mean, i hope apple does well i have a lot of investments related to apple as less risky, you know, multiples, but, you know, i look at apple and goes, this services thing, it should bother something who is become honest with thoeismselves. >> on the plus side, there was so much, the iphone's best days

aree behind it, and this runs counter to that. >> well, these one quarter i want to wait and see what happens, you snow, i'm bullish on 5g. i have investments related to that, not just this one the question will be what will make you run out and buy a new iphone if faster and better power consumption is all you wanted, it could -- >> the 5g is the next g. it's more of the same. >> absolutely. you need a killer app, this is where i'm thinking augmented reality might be that killer app, you know, it's been talked about for four years it hasn't materialized, but that could be the thing that really kicks it in. apple is going to be at the forefront of that. if that works, that's a big driver >> the moment you're saying it's

possible, you'll short it tomorrow depending on the call what p.e. would get you to get back into the stock? >> you have to remember, we have a portfolio of investments, but it would have to get back into the teens for me if apple is up a lot next year, my stocks will be up more. you can buy facebook at a lower p.e., you can buy google ago a comparable p.e. >> are you buying facebook and google >> facebook is one of our largest positions. i look google talking about controlling cost it's amazing how focused they get on costs so that's another one, where i like it where i go, i'll take 20% growth and similar multiple to apple sand a higher multiple.

>> we showed some of your topics, disney was included in that, but that's not in your topics. >> again, back to your thing, i'm a hedge fund, i trade around the week before last, i don't got week people aren't reacting to the coronavirus thing disney has parks in shanghai i'm an idiot if i don't hedge this position out. if this goes the way it did with sars, with avian bird flu, it's not going to surprise me if we close that we'll want to put that position back on, where we have some of risk discounted so, again, it's a hedge funds. we had a great day yesterday in the market >> you have to keep up posted. >> my compliance department would kill me, but what i'm trying to give you is how i think about it

how are you thinking about the position holistically. >> dan, we always appreciate it. good to see you in person in particular. >> good to see you, too. coming up, a closer oklo at the surprising consumer confidence number, we'll be right backke your cloud. it's a problem. but the ibm cloud is different. it's open and flexible enough to manage all your apps and data securely, anywhere, across.ll your clouds. so it can help take on anything from rebooking flights on the fly, to restocking shelves on demand, without getting in your way. ♪ ♪

welcome back to "closing bell." i'm frank holland. right esper rorpts that purdue affirm pharma is the unnamed company in criminal charging

documents filed earlier this week in a probe of illegal kick backs from opioid makers practice fusion admitted it solicited and received kickbacks in a scheme to get doctors to prescribe opioids. it battles opioid litigation and government probes, the latest impact could impact the proceedings. wilf, back to you. >> thank you, franke oking ahead at the big earns to expect tomorrow on the "closing bell. built for you. so why isn't it all about you, when it comes to your money? so. what's on your mind? we are edward jones, a 97-year-old firm built for right now. with one financial advisor per office, we're all about knowing what's important to you the one who matters. edward jones. it's time for investing to feel individual.

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over to mike santoli for the final dashboard of the day. >> sarah, consumers feeling a-ok today. we saw the confidence numbers this morning you mentioned it earlier it was a rebound back up toward the peak for the cycle but not quite. this is the long-term chart. we haven't had a sustaineddown turn good news. but look at the current conditions, the present situation consumers feel minus expectations for the future. this is a downtrend. chomping around the lows food is great not sure about tomorrow obviously not a sustained downtrend. so still okay. but it's hard not to suggest that we are later in the cycle

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facebook, mondalez and eileen at goldman anticipates investor day we'll interview david solomon on "closing bell" at 3:30 p.m. eastern time don't miss it. >> he is going to be the reaction panel. >> yes to the fed decision as well. >> yeah, powell. >> that does it for "closing bell" today. >> "fast money" begins right now. live from the nasdaq market site as always over looking times square this is "fast money. i'm brian sullivan in for melissa. the trade ertz tonight are tim seymour karen finerman and guy adami. and chris ver own as strategy as research partners. it's an earnings bonasa. apple, starbucks, amd, ebay. alaska aaron the move after reporting results. we'll break down the numbers, headlines, everything that matters to you and your money. plus, more today's big moves higher stock rebound after the se i