yes, you can make points, but if it's -- >> i heard that point made on our sister channel msnbc, that the democrats didn't do themselves any favor by appearing as they did. >> and we were going to mention the crazy activity in space today, but most active stock is virgin blackive. >> up, down, up again. >> thanks for watching "power lunch", everybody. "closing bell" is right now. welcome, everyone to "closing bell. i'm sara eisen i'm at the morgan stanley post more than that after its big deal to buy e-trade. more from wilfred's interview with the ceo coming up as for the overall market, lower, but well off the sharp drop that we saw earlier as far as the intraday lows we're all over the swing. >> we certainly are. good afternoon to you. let's look at what's driving the action

indices drop sharply earlier, as the number the coronavirus cases continue to say rise and despite solid labor market and manufacturing data, yields are falling today. some oracle employees are planning to walk off the job any minute now in protest of the fund-raiser oracle founder larry ellison is holding to raise money for the reelection of at the president trump. we'll bring you any updates when we see them. thousands of employees have already signed -- live pictures nothing to report there, but we'll bring you any when we get there. joining us is stephanie link good to see you, as always >> we're down about half a percent, so well off the lows. what did you make at that gut

check this morning, and are you in fact encouraged by the way the market has steadily improvement that that ises that there's confidence with the ceos, and that jibes with a data here in the united states. earnings are running about 3.5%. i understand we have to deal with why the dollar is so strong, why is gold so strong, the yield curve, but i do think the confidence for ceos is very, very telling and encouraging to me. >> we're going to deal with all of that this hour. let's start with the big market drop earlier, let's get to bob pisani for what is driving these swings bob? >> we had a notable sell program comes in a little after 11:00, mostly the big momentum growth names. take a look at what's been going

on in the market we have the market very stretched, overbought. earnings have been trending lower on coronavirusn what is going on it's been sideways for a few days. virgin galactic moving all over the place. coronavirus fear s not going away we've seen very heavy volume today. this is where you play the coronavirus, in and out heavy volume is my emphasis there. finally retail stocks are tough to figure out. they've become high beta names today a lot of these names like j.c. penney inexplicably up. back to you guys

>> earlier today i caught up with james gorman, who revealed he first started looking at e-trade back in 2002 but the conversations this time got real in december. here's what he had to say. when i get that done, you have to be very opportunistic. we pull in a -- bit for your company. if we messed around with that and tried to do this on your cheap, when you -- and that's what we did. >> here's what he had to say about the rationale for the deal

we bring in technologists. premium clients now at a level we haven't been able to do they've got to make like we do we have a lot of young clients, a lot of clients who don't have a lot of money, but most of our business is in the 1 to 10 million-plus households. their demographic is different it's certainly an option play on that -- but they also have a heavy trading demographic, which we respect and will support, and nothing will change for those folks, and then finally, you know, this can be a platform to take internationally i've been very interested in having a digital platform outside the u.s. rather than trying to rebuild massive financial -- the stock is down about 4%, though the deal is diluted to the tune of about 12%, it could

have been down a lot more than that, goldman sachs, by the way, is down a couple percent, likely due to the opportunity costs from not having down this deal. a lot of talks since they -- i did speak to a senior source at goldman sachs, who said, of course, they considered it, but didn't want to geld with the deal organically on their own without paying $13 brill on. it's an amazing strategic bit for morgan stanley it is quite expensive. it's a good for goldman sachs, but not quite as good, but the currency with a morgan share price was weaker so you can understand i will also day neither of them will

have wanted to say this deal -- and in that sense it's a big of a win here for james gorman here >> we've got more guests to discuss this with us, victor, from the online broker, and former director of trading at td ameritrade, and rudie adolph good afternoon to you both i'm going to come to you first, 4% down, stephanie >> i like the risk, about 3.1 trillion in assets 5 million new customers, to bring in about 60% of your business and less reliant on the institutional side that helps on the fee business side and then you get the millennial, a younger generation

i like the strategies, but i did like your comments about the technology innovation, and that's what all these companies are spending a ton of money on is in technology you've got to integrate it. >> victor, i wonder what you make of this deal, a company like your own, that you've been in one of the companies, also like robin hood, that challenge the traditional brokers, and have led to the price war. do you feel threatened with a go lie@like morgan stanley moves into this space? >> certainly not in terms of the e-trade transaction, that was a question not necessarily of if, but when and who? even the last time i was on this program following the acquisition, somebody made a great point that e-trade could be a potential holding for the m & a potential. you're seeing that realized here today. this does have some potential implications for the industry. one, i think "new york times"

said it best -- this is a combination of wall street coming together with main street you know, stephanie mentioneds there's 8 million total accounts, but the way you get there is very, very different. you have 5 million accounts, but $260 billion in total assets on the morgan stanley side, you have 3 million, but, for some cases it could be complementary, but you have many different companies. we've been successful with those. >> how does it affect your business >> well, you know s. it's a very attractive steroid, but it's a tale of two cities on the one hand you have the traditional brokerage firms and banks losing market share.

so in many ways, it's a consolidation move all innovative technology plays, because quite frankly, they're not usually doing well, but no questions, they are losing market share we should winning, and quite frankly they have not many choices, but consolidation and cost savings. >> is there something you would have preferred morgan stanley to do >> there's a reason traditional players are losing market share. it's been a huge area of success. every year, it takes last year,

to assets that were leaving through brokers and through clients. they're coming to our segment. what could they have done? what should they have done ultimately change from selling products ultimately to gives best possible advice, which is what they -- >> maybe -- to morgan stanley who almost every quarter increased the cease management. >> we were known as a serial acquirer, and it does take a significant effort how deeply will they integrate these services james gorman mentioned he's

excited about the direct-to-consumer integration on the banking side as well as an interesting grailed and international platform he did mention respect and hope to keep things -- business as usual for the trading business, which i think is fine, but i think in this climbed, where you have fin techs like us, continually innovating, new, rich experiences as well as new capabilities, i think any time spend integrating is time spent we're going to get the opportunity to deliver new service services. >> i think that's going to show you the speed with which these firming can innovate >> thank you both very much fo. >> are we still going to be super bowl ads from e-trade? >> good question

>> hopefully >> but i think it speaks for the big difference for the culture e-trade goes for the mainstream investor. >> and they wear jeans and t-shirts in the office, not suits and ties. we have a big interview with interactive brokers chairman that stock is on the move today, up 2% after the deal was announced. one of few remaining independent ones he'll join us tomorrow on "closing bell. redwood city shores area, it's a log out more on that in a second employees not policed with a fund-raiser larry ellison held for president trump yesterday in california tickets billed as a golf outing

and reception went for $100 to $2350,000. oracle's connection to this administration is flog new the cfo joined the president's transition team in late 2016 oracle has 136,000 employees, nearly two thirds of them outside the u.s., so that's important in assessing 9 relative impact of this protest. we won't even see this protest from the outside they're not walking out, but logging off at noon, no less, at lunchtime, when a lot of people probably walk out, and more of what is a quiet, individual protest. guys >> we've seen a number of these movements, i remember the google one. have they been effective for raising awareness for management >> they raised heat on google. i think a lot of that was on the implication of what google is

now doing ran against what it had in the past. i don't know if we're going to get that here with oracle. this protest to me seems designed not to be seen. you with take your guesses into why that is, but as i mentioned people knew that elements of oracle management were close to the trump add mrgts already, and i imagine they wouldn't smile on a massive protest at headquarters >> jon, thanks so much we'll check in with you later if we see a meaningful walkout. boston beer shares getting hid heart. coming up is jim cook, and he will late out he strategy for competing in the increasingly popular hard seltzer business. plus is wealth a litmus test for democrats, after michael

bloomberg was attacked last night. servicenow - the smarter way to workflow.

(vo) in every trip, there's room for more than just the business you came for. ♪ let's make the most of ♪ ♪ what we've been given whether that's getting a taste of where you are... ♪ let's get to living ♪ ...or bringing some of that flavor back home. that's room for possibility. ♪ ♪ let's get to living

42 minutes left to trade we have a news alert on hoyt how

the coronavirus is affecting airlines phil >> increasingly china has essential become an island when it comes to international air service, with so many airlines not flying there we are now getting our first estimates from the international air transport association, think of this as the international trade association for all airlines around the world. it estimates that global traffic this year will drop 4.7% because of the coronavirus that means we would see first overall decline in demand on an annual basis, first time e 2008 and 2009 in terms of lost revenue worldwide, looking at something close to $29.3 billion. that's the estimate from the association. that's where they're at right now. we're not sure when airlines

will start resuming flights to china. thank you, phil. stephanie, i wonder if this is priced in. airlines are only down 3% over three months this is a big deal. >> and traded single-digit multipl multiples. i'm wonder if that 4.7% drop, and in the second half are think estimating maybe back up airlines are hard. they tend to be very volatile, trading-oriented stock you pick one, ride it through or trade it -- and join us at 7:00 p.m. for a special report on the outbreak michael bloomberg maybe his debut debate tonight his health became an issue. >> we have a grotesque and immoral distribution of wealth

and income michael bloomberg earned are man 25 million americans. >> what a wonderful -- the best-known socialist in the country happens to be a millionaire with three houses. all i know is i've been very lucky, giving it all away to make -- and a good chunk goes to the democratic party let's bring in grover frank. that particular selection came across better than maybe some other appearances last night, but robert, i guess the key question is he does have policies to address this does he successfully get them across >> i think he did himself a disservice on two fronts number one, he didn't deflect the wealth question by saying i

may be wealthy, but i'm a traitor to my class, and more than three times what hillary clinton was proposes in 2016 that's number one. he didn't put forth the policies that are anti-wealth instead the focus was about the billions he has. number two, he didn't talk about his sort of upbringing from nothing. this is a guy who grew up? suburban boston, got laid off from wall street, started his company on his hone, became successful, now giving it to charity. so it all became a debate where everyone was pointing to him saying he's rich, so therefore he's discredited who is the toughest? >> by far bernie sanders you look at his policies, he's looking to raise something like $20 trillion but this is a party, remember,

used to criticize policies that favored the wealthy. now they're criticizing the wealthy just for being wealthy last night shifb a referendum on the president, instead it was a refer wrenn dumb on bloomberg's wealth i think he could have done a better job directing it back towards his policies. >> mayor pete was saying i'm the only one up here not a millionaire. the only person wi house. i think that scored him some points it really was an important theme throughout the other point, to go back to your first point, mayor bloomberg tried to make a joke about why he did not release his taxes. that wentz down as a ton of bricks >> you're just leading a different life from any american and you're out of touch. i think that whole question of his tax returns are thousands of pages, turbotax doesn't work, i think that was poor, but you contrast it with what the white house is saying is that we have

a blue collar boom, and it's thanks to us, versus the democrats who are saying americans, your problem is that bloomberg has too much money i think most americans would relate to the issue of let's build a stronger floor for america rather than some kind of ceiling for those at the top that's why i think the two contrasting messages, one from the white house saying we are helping the blue collar folks get better opportunities versus the democrats saying all your problems are due to rich people. i think that's going to be an issue in the election. >> robert, thank you very much i do think the big takeaway from last night is bernie sanders lead hasn't been reined in there's a lot of checks and balances in the political system, that's so far as he goes are you surprised given the bernie sanders is the winner from tonight, and we didn't see a bigger market reaction >> i am. in particular like health care,

financials, it's warren and sanders that are focusing on the -- >> as -- it makes sense. if bernie is the nominee, trump will win that's what wall street is trading at >> maybe it's going to be closer if it is bernie. we just don't know it's still too early you have to give bloomberg another shot >> elizabeth warren was on fire. >> she was up next, it is the word on the street features one sky-high stock that could be ready to come back to earth there's your clue. > former fed vice chair done combs talking with us. back in a cup 8 minutes. ♪

♪ ♪ ♪ ♪ ♪ when yowhat do you see?itical issues facing our world, we see a billion more people breathing free. we see access to fresh food being the global norm, not the exception. we see homes staying cooler, without the planet getting warmer. at emerson, when issues become inspiration,

focusing core strengths to create a better world isn't just a result, it's a responsibility. emerson. consider it solved.

time to get "word on the streets. open haimer raising its goal the firm views the recent slide in interest rates as an incremental catalyst for home improvement retail the stock is up today. maintaining an overweight rating there, but saying the mobile game company has strong underlying engine of live services, such as words with friends.

piper says that znyga has three launches in the pipeline, providing visibility into new revenue opportunities. even spaceships must return to earth, says morgan stanley. a modest correction is overdue, and advocating for a capital raise as logical these two stocks, tesla and virgin galactic, it's hard for analysts to cover. i want to say, though, clearly, he's been overweight the stock and it soared, but given what he rights we've got -- and he's still got it as a buy. it's impossibility as an analyst.

>> it can change in an hour. they're so volatile. >> it could have a pullback, but why -- i mean it's an impossible position they're in. the price target is 22 it's 36. >> he's not doing anything with the numbers. >> and because he's bullish on the story, but i guess. >> but bearish in the short term say times 20, 30 sales i mean, like this is crazy the valuation is nuts. >> but the volatility of both those stocks, it can change in a heartbeat. >> it's possible >> it's for analysts. 30 minutes left of trade stocks lower down 144. indices dropped even sharply lower. they were down 1% at the lows, as the number of coyne vire cases continues to rise. we're told that the u.s. economy

is strong, but it's too soon to judge the impact, and despite solid labor markets, manufacturing data yields are falling today. that's been the pattern lately. time for a cnbc news update. tyler? >> thank you so much last night's democratic debate set a new ratings record, across nbc and msnbc, both are sister networks of cnbc the ratings driven in part with michael bloomberg's appearance it has so the more than $464 million. he's not been on the ballot and tested yet. sanctioning for in iran to influence tomorrow's election. >> the iranians people know

tomorrow's election is political theater. it's a republic in name only when the government disqualifies half of the candidates running for office. finally, roger federer announcing he will miss the french open and three other tournaments after undergoing knee surgery he says he's kept to a full recovery and looking forward to wimbledon later this year. that is the cnbc news update this hour. back to you. >> tyler, thank you. i love the fed, when i mean the fed, i mean the tennis players. >> he's the most stylish player i have ever seen really good. >> i love it when he comes out in the all-white what a gent. we have your last change trade coming up. plus find out whether the surging -- could derail the bond rally. yields lower, of u.s.

government debt. we're now at yet52 oth 1n e ten-year we'll be right back. what's important to you.ts w saving for ava's college. being able to retire on our terms. taking care of dad. why ameriprise financial? my advisor cares about my personal goals. he gives us comprehensive advice. i feel prepared for what's expected in life and even what's not. she helps us feel confident. we know our financial future is secure. with the right financial advice, life can be brilliant. ameriprise financial.

but inside every etf... there are untold hours of careful construction... infinite "what ifs?" and contingency plans. creating funds that help target gaps in client portfolios. tap untapped potential. and strengthen confidence in you. flexshares. powered by over a century of investment expertise before investing consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully.

guy 25 minutes left of the trade. check this out rbc looks at houses tied china, japan, germany and uk it turns out not so much >> one to one would mean our economy is in lockstep so when global growth is slows, as -- europe and japan looking ugly the u.s. can bankrupt it off what does it mean for stocks usually when the dollar strengthens, it slices into earnings and sales that are earned abroad.

a strengthening dolan doesn't necessarily mean a strength anyone market. sometimes they do move in opposite directions. but there are plenty of examples when the two can march higher and lower together that's what's happening noun stocks of up, the dollar is up we have better growth, higher interest rates, and we know that money -- so whether it's our dollar, our stocks or our bounds, they're all in demand. so watch those names.

>> whether it's -- goldman sachs, stocks down, which revise the forecast, blackrock, i tried to put together as many banks as i could with forecast dollar weaknesses no far. so far they've been dead wrong. >> that means that earnings are probably dead wrong. unless they're hedged. some of these hedge, some don't. >> only the dollar, the yen has lost that because of the terrible gdp growth. it's also a growth play, as i was trying to point out. and for all those reasons when a mark goes down one day it will be interesting when the coyne vire gets contains i would expect you may see a mean reversion blackrock global allocation

portfolio manager, russ, how much will it hurt earnings >> the dollar's rise has been very soon, but i don't think it's gotten to the point -- i can give you a two reasons, the first of which is a quick rise, but it's been contained. the dollar is up about 4% since recent lows. compare that to what happened in late 16. you we saw it again this week, with the housing data, it may point out while the dollar rising, most other measures. rates, volume tilts are going the other way. if this is the extent of it, i think the market can survive.

>> is it plausible that the banks around the world of the 2k0e68d markets, at least, will ease most significantly is the u.s. plausibly in a global slowdown environment, cut a couple times. >> i think you would need more evidence that the virus is affecting economic activity i think the central bank that helps support -- is the pboc obviously the bank has taken a number of measures >> that's another reason why i think the world can survive a moderately stronger dollar >> do you think they're underestimating the risks? >> this is the $64,000 question.

none of us are epidemiologists the things were tracking would suggest that at least from the metrics we are looking at, the number of new cases, this is not accelerating now, the question is how quickly does manufacturing come back how quickly do migrant workers in china go back to the factories? at least it's a hit to the first quarter, and what's become apparent is the rebound may be slower than investors thought in the beginning. that may be one reason that bond yields have remained low they're reflecting that hit to growth >> russ, thanks so much for joining us. >> thank you. good to see you. still to come one of the last-chance trades catalyst rich. >> i know, it was confusing

there. >> that was my phrasing. victoria's secret is going -- private why l brands is selling its stake and how much it's getting for it we'll be right back. two nights, free night. book now at bestwestern.com.

doprevagen is the number oneild mempharmacist-recommendeding? free night. memory support brand. you can find it in the vitamin aisle in stores everywhere. prevagen. healthier brain. better life.

stephanie, what's your last chance trade >> technologies. cath catalyst rich the number two area roe space company. they're going to assume the h vac and elevator debt has been a real problem, so they're going do pay down tech so it's really company specific. >> what's the variation like >> it's not cheap at all, but i think as you spin out these pieces you have better cost controls, better market share

and better management teams that are kind of running in much more to go. finishes usually do work, they really help stocks >> down a bit today, but we've been 14 minutes left at the moment we're down 140 points next we'll preview the key metrics with dropbox earnings. as a reminder, you can always watch or listen to us live or on the go "closing bell" is coming right back with the market zone, uninterrupted coverage of the final minutes of the trade

can we go get some ice cream? alright, we gotta stop here first. ♪ ♪ from smarter atms, to after hours video tellers ♪ ♪ comcast business is connecting thousands of banks to technology that turns everyday transactions into extraordinary experiences.

hi there. how are you? do you have any lollipops in there? (laughing) no, sorry. we're helping all kinds of businesses go beyond customer expectations. how can we help you? doprevagen is the number oneild mempharmacist-recommendeding? memory support brand. you can find it in the vitamin aisle in stores everywhere. prevagen. healthier brain. better life. car vending machines and buying a car 100% online.vented

now we've created a brand new way for you to sell your car. whether it's a year old or a few years old, we want to buy your car. so go to carvana and enter your license plate, answer a few questions, and our techno-wizardry calculates your car's value and gives you a real offer in seconds. when you're ready, we'll come to you, pay you on the spot, and pick up your car. that's it. so ditch the old way of selling your car, and say hello to the new way-- at carvana. 11 minutes left in the trading day. we are now in the "closing bell"

market zone, commercial-free coverage of all action going into the close >> we have stephanie link and paul hickey from bespoke to break down the action. we're still down 156 points, or about 0.5% on the dow. our own steve liesman is sitting down with a fed chair, talking about -- >> market pricing on rate cuts is a little tricky there's the market expectation for rates, also terminal liquidity, so what i prefer to do is also look at surveys that many folks do of market participants there's obviously a probability of outcomes, but i don't think they're pricing in that rate cut, even though market pricing might suggest that. >> does it worry you that maybe the fed and market are on different pages? >> yes, absolutely it does, but we're getting different

commentary from all of them. i'm looking at the economic data we have seen in the last couple weeko why the market pricing in a cut in the summer. i think it's all about corona. >> i like what jim cramer said i would rather hear from dr. fauci, because nobody knows the trajectory of the virus, how long it's going to last and how deep of an economic hit, so the fed can't make its calls until we start to see that, either, but we always do love to hear from rich. >> we want to hear from both. >> paul, quickly what's your take on the overall market valuations in rates stay where they are are they supported >> i think so. you can justify the level of the stock prices here. to the point of do we need another rate cull philly said

today, the third stronge two-month increase in the history of the surray, so we're seeing rebounding data housing data is on fire. jobless claims are near cycle lows at one point the markets were pricing in up to two cuts. so, you know, i think that's overstated here, and i don't necessarily feel the need that we need to see further hikes, but we do have 9 uncertainly of the coronavirus, and if the dollar gets stronger, you'll see the president out there saying the rates are too high domino's jumping after earnings indicate rogers has thdetails. >> it's a big quarter for domino's, across the same-store sales in the u.s., that's a beat for the first time in over a year, up continues to

third quarter -- the ceo referring to the aggregators as a circular firing squad that we have to keep continuing to discount, because they don't really have a choice. he also added that domino's may get hit by a few stray bullets in the process, but it's not quite clear how though evaluate that back over to you. what did you make of this, stephanie? >> the one-year chart is crazy it's nowhere, nowhere, nowhere, and then it's up everybody was nervous about competition and heavy investment for this name all last year. business model probably broken these are the things i read about. wouldn't touch it because the valuation also wasn't compelling you can see why the stock didn't do much all of last year, and all of a sudden, wait a minute,

they're actually working >> the last ceo got so much credit, and ever since alison has come in, it's been dicey. >> but the competition has heated up, too and obviously we're starting to see results. coming up later, by the way, domino's ceo will be on "mad money. don't miss that exclusive interview. viacom cbs reporting a big miss this morning. julia boorstin has more. >> trading down 17% after reporting revenue earnings and guidance that fell short of wall street expectations, but the ceo called this a transitional quarter, and focused his comments on his new strategy in contrast to rivals, including disney and netflix which are ramping up viacom says it wants to increase the return on the current content investment

he also laid out the plans to combine digital access into a multi-tiered verse with a free tier, and paid tier and more premium option. >> julia, thank you. paul, pretty you wiugly-loog chart today. what do you make of the move >> yeah, even before the merger, both these stocks weren't doing too well so it's a continue ways of the weakness here. i think there's too many options on the streaming front the cbs product just isn't as compelling like you see from disney or netflix. you know, outside of the live sports, you know, the traditional broadcasting model isn't really working out all that well. so this is a name we don't really have very much interest in or pay too much attention to. >> stephanie, five times --

>> if you believe e. i don't know if i do >> you think it's going to keep going down >> yeah, i think they're not the leader in this space at this point, and even the leaders are -- >> is it because of their brands >> it's content. i pulled out of the disney i thought it's too crowded that's one of the best ones, right? because they do have the library, they do have the content. just wait until they come off some of the netflix shows, so i think that's the one i would own, but i don't want to own the space right now. >> victoria's secret franchise officially going private l brands confirming that private equity firm will be acquiring a majority stake in victoria's secret, a deal that values the brand at $1.1 billion. the ceo will step down as chairman and ceo victoria's secret has faced

criticism for failing to keep up with changing consumer tastes and trends competitors third love, a private company, we reached out and go the a statement on the move they called it a positive step for our industry, which has historically been dominated by unrealistic ideals and images of what february anyonity and sexy should sycamore -- higher demands to be president last year, my advice would be hire a woman and have her run this brand so they can keep up with what women actually want. >> they had a woman in the brand who got rid of the bathing suits which was helping them that was the beginning of the demise good point -- >> what's it worth the -- >> according to analyst notes 14 to 16. >> it's huge this is a $100 stock.

>> i guess the reaction, it's going down, because they're not getting that much cash here. >> we also thought they would get three times ebitda the stock is up 30% this year, so i think it's a give-back. we've steadily recovered, and now only down 0.3 on the dow. let's get over to rick if you look at intraday of tens, the low was around 1.505 look at the year to date chart that is currently our low yield. that's how close we came bunts, not so lucky. they closed at 94.5, which makes it a new fresh low, and the dollar index continues to surge up 12 out of 14 days despite strong ppi charts, the

curve -- rates donnell seem to be able to go you. bertha, yesterday's low was -- and the minute we traded until it at 11:00 eastern, everything fell apart. >> basically we're seeing tech down here two of the last three days, rolling over a bit, negative for the week. apple off the lows, but still one of the biggest drags mid caps and small caps are the standout all better than expected on earnings, also with double-digit short interest different story, this is a parent company of south beach diet, silver sneakers, and they bought newtry system last year, which they just wrote down that's not a pretty part, bob, unless you're a short seller. >> yikes bertha, even in a world where investors are crazy for growth stocks, virgin galactic really

takes the case took $31 a half hour later, a 25% move in half an hour look at this volume. we're going to probably hit 150 million shares traded. 195 million shares outstanding you see the move here coming back, though, late in the day, along with the rest of the market dow jones industrial average was down 388 it's going to end down 131 points \s if you're just joining us, welcome to "closing bell." >> let's look at how we foreigned today on wall street lower, but certainly off the worst levels of the session. there were a lot of wild wings s&p does settle down about 0.4 of 1%. technology and communications services were the worst

performers there's your chart of the dow, down 130 in the close chblgts s misthose growthier stocks, after a tremendous run, down 0.7 the index up small caps. s on down days, it's plays catch-up yields remaining relatively low on the ten-year. coming up, we'll get results from dropbox as soon as they cross. and jim cook will discuss today's earnings results, and the big push into the hard seltzer market, whether they can keep it on the shelves

joining us to talk about the market today is paul hickey from bespoke investment group is still with us, and so is stephanie link >> i think there's still a bit of uncertainty about the macro, uncertainty about the election the yield curve is flattening is never really a good sign as you talked about the dollar strengths, there are some indicators that are just flashing yellow signs. i can turn this around and say earnings are really good how about the data this week and all the manufacturing data as of late has been good, so i mean there's a push/pull. the problem is you're at all-time highs, and now earnings are kind of dissipating. >> this is the part in the program where mike santoli said,

yes, stocks fell back against, but 6% away from highs has the recovery been too much of a v-shape? >> no, i don't think so. my long-term proprietary model turned bullish in '08. the intermediate model flips more on which. the short-term trading turned negative in mid january. and that looked like a good call for two weeks, and then looked like a balance dahl. looks like a good call again today. the markets are squirrely here i think stephanie nailed it. there's a bunch of divergencdivs paul, what stands out in terms of sectors that look attractive valuation-wise.

>> paul, go for it. >> i think on a valuation basis, when you look across the spectrum of sectors, most are trading at the highest valuations the two sectors that stand out are financials, which are only in about the 50th percentile so those are two energies quite obviously out of favors here technology is trading at the higher in ten years, but it has traded historically at much higher valuations. so i think, you know, we talk about -- we hear a lot about right now, especially with the growth stocks moving so much we're looking like 2000. when you look there's similarities, but very loose similarities when you dig down deeper into them, there's big differences. for instance, the valuation of growth stocks right now is about a 50% premium-to-value stock

in 2000, it was 2 1/2 times, so that defies the highest market cap stocks to double today, and still have a lower average feed than the five largest stocks in 2000 we're nowhere near those levels. that doesn't mean we're cheap. it just means those comparisons don't mean anything. you're looking for value, maybe go into the financials here. the valuationses are higher than the market, but not grossly overvalued relative to the market >> i just wanted to ask you what you make of the divergence with the russell 2000 on a down day like today, it went up. what does that tell you? >> there's been rotation into the mid caps and small caps, out

of the some of the larger-cap stock, but it's a secular bull markets. so i think it's got five, six, seven years in it, and you're seeing a rising tide lifts all boats. >> well, one boat that is rising at the moment is dropbox the numbers just hit deer deidra has the numbers for you they beat on the top and bottom lines. on adjusted earnings, it's a beat let's look at paid users they're looking that dropbox can transfer it into paying enterprise customers so the company now that is 14.3 million paid users that's a net add of about 300,000, which is nearly double

expectation. that's also coming in better than forecast. now, we don't have this information yesterday, so it could determine where the stock continues to go, but we do not get that until the earnings call we also wonder if the ceo will take questions on a report published earlier through capital that says perhaps he's taken his eye off the ball, but right now investors are pleased with these results we'll be listens closely for the guidance. >> the short position has increased. it's not a huge le substantial one. shares have actually risk, so it

remains to be seen whether the larger community agrees. it was a good quarter so far, but we do not have guidance. that would be critical, and could change all these gains. thank you so much for the story. we lost the linkup for a month there. you've got a short interest there. that will show the shares jump a bit. >> not huge, but for this company, and this market cap, yes. i think that's validates the model. clearly it seems like things are going their way. remember they had a sales

reorganization that might also be starting to work, so not a super-cheap stock, but i can see why the stock is up. they're making progress. let's move on to the big m & a news of the day. morgan stanley, which boasts about 4.5% today off etrade i spoke with james gorman about what he thought. >> i totally expected it to be down at the open i don't know where it will finish today we own etrade. this is not a bad it was created within earnings.

i'm comfortable with where the numbers are. s the dow down 4.5%. they quite like this deal. i do think the share surprise has been since they've seen late october, which is where the price wars kicked off. that's crucial to them they saw 40% appreciate since the october low. that is their currency for this deal when you consider the other potential buyers, they had a nice run as well, but not to the same extent. morgan stanley has just about the currency to do the deal. >> from a capital point of deal, they want to increase the dividend so you're getting an old-school company tries to get into the new generation, and this is such a positive short term, the stock gyrations,

i think you have to take advantage, because of the diversification of what they're becoming, what they're good at doing, they'll only get better. >> everybody has been sort of glowing on this deal, and certainly we saw the marke reaction, but i wonder, wilfred, exactly what kind of business is he buying? low margin, they're having this price war when it comes to fees and competition, aren't there questions as to what kind of growth business he's getting into here? >> but it's exposure from a different client base. they've been more focused on ultra-high net worth most importantly though, i think -- two other things. it gives them a corporate stock program, which they have build a great biggs in, but this gives them more scale in that area the other thing we haven't mentioned as much, like --

they're more wholesale funded, by getting deposited lows, and then the final point, which we haven't discussed as well, on the capital side, this would probably improve their rating, the stress test rating and possibly lure the amount of capital they have to hold purely baas it diversifies their earnings it's likely the fed will say yes, this is an improvement, you don't have to hold as much capital, but i think most analysts, most of the analysts are saying we like this, we think they're conservative, provided they deliver right now for a couple years. i want to get you in here on financial evaluations. i know can't comment specifically on morgan stanley, but how do they look >> as was said earlier, the

financials are cheap and energy is cheap, and the fact that morgan stanley is buying out e trade, i think is -- a quick final thought, paul. what do we see in terms of volatility >> i think we're still seeing the underlying breadth measures hold up well we're not seeing a major divergence despite the scares out of the asia. i'm just looking in the window here, dropbox, which was up a lot more than a few minutes ago, is coming in a bit you have to watch the guidance the company has beaten earnings

and revenues every time, but the stock has gone down five out of seven times, so it's going to be keep what the guidance is coming up later on. um next, chairman and jim cook we're going to talk about whether the move into hard seltzer could be catalyst. keep it here

we were paying an arm and a leg for postage. i remember setting up shipstation. one or two clicks and everything was up and running. i was printing out labels and saving money. shipstation saves us so much time. it makes it really easy and seamless. pick an order, print everything you need, slap the label onto the box, and it's ready to go. our costs for shipping were cut in half. just like that. shipstation. the #1 choice of online sellers. go to shipstation.com/tv and get 2 months free. shipstation. the #1but shouldn't somebody ofthis is be listening?pression. so. let's talk. we're built for hearing what's important to you, one to one. edward jones. it's time for investing to feel individual.

boston empire company closing down s. the company behind brands such as sam adams, and truly, it would scale up to immediate the demand for har seltzer. >> thank you for joining mess for a beer. >> sadly we don't have one, but cheers to you. >> let's kick off with the explanation for why the etf disappointed i guess your take is that it's a positive because you're investing in something that's grown so quickly >> that's absolutely right.

>> clearly maybe people didn't react as well to, you know, the number i started sam adams in my kitchen 36 years ago so there's been up-and-downs, and to be totally honest, we're not that focused on, you know

day-to-day stock price movement, and quarterly earnings, and the largest shareholder. so what i care about is, are we building value where will we be in a year where will we be in five years let's not get distracted by what happened today or tomorrow, let's make sure we're building for the future >> clearly the future play that the street is excited about has been truly the hard seltzer. i saw the triple-digit ground, but what about the biggest players. everybody now has a solution i know you're not a stranger to competition, but does that pressure how do you deal with that. >> the beer business is very competitive. it's been that way for a long, long time. we were very pleased with what happened to the entrance to, you

know, bud light seltzer. that's the biggest beer brand, so this was the elephant, and bud light seltzer has been introduced, we're the only hard seltzer that actually gained market share so we've gobeen so far affectedb bug light coming in. i think the truly hard seltzer has a different image. we're probably not appealing to the bud light drinker. we're appealing to drinkers that want higher quality, higher flavor, better flavor, and as a result we've actually gained share as bud light came in and took share from other people >> who is drinking it?

is it invest a demographic breakdown? and why are they drinking it is it because of taste health in a feeling that you're not real drinking alcohol? >> you know, we created the hard seltzer category four years ago. to be honest we thought it would be kind of white collar, mostly women, and we turned out to be terribly wrong it's a much bigger category than we thought it's appealing across all age groups, democrat stenographics quite frankly the biggest thing that's come into the beer business since light beer. we don't know how far is up. so hard seltzer giving you 5%

alcohol, only one gram of sugar. it's very refreshes, a variety of taste we think it's a beautiful fruit taste, so it presses all buttons, great taste, not much compromise, health and wellness cues we think that the category can double again in 2020 >> it seals to be apeople first to drinkers outside of beer. we're getting white wine drinkers, vodka and soda drinkers into the category we

don't make products appealing to your standard mass domestic light drinkers. >> good luck >> it's about to be 5:00 your time is coming. >> well, exactly 38 minutes >> cheers. >> thank you, tim cook. still ahead, tesla has done well on wall street. one of its cars is a top pick for main street. >> should the fed cut rates again? we'll talk tfoero rm vice fed chair don kohn and you can always listen to us on our app "closing bell" will be right back

do you have concerns about mild memory loss related to aging? prevagen is the number one pharmacist-recommended memory support brand. you can find it in the vitamin aisle in stores everywhere. prevagen. healthier brain. better life.

[ fast-paced drumming ]

we've been a news alert on the nfl. eric has the story. >> so just coming out of the owners meeting, putting out a statement saying they have come to an agreement on a new

collective bargaining agreement with the players association this is just the owners side, the owners passing this vote they got at least a third voting they started their meeting at 2:00 today so that is positive news for the week they still have to wait for the players union to pass their side of it, and then it could be a 17-game season stove expanded playoffs, seven teams were conference, with increased revenue shares, more benefits to retires, higher minimum wages. so this is a games for money trade that the owners are making here we're looking for the players to vote on this in the next one two two days this year kicks off on march 13th so to continue the league without a work stoppages. >> what was the big sticking point?

>> a mix of things the owners wanted seven teams per conference and a 17-game regular season the players didn't want that, but the owners said we'll cut away some of the preseason responsibilities, so they were able to find a middle ground when the owners got -- tv partners, they can expand it, give them more content, 57d the players benefit, because they get higher salaries. >> eric, thanks so much. >> you got it. up next, don kohn tells us how much ammunition banks have left to fight a global recession. more to come 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

doprevagen is the number oneild mempharmacist-recommendeding? memory support brand. you can find it in the vitamin aisle in stores everywhere.

prevagen. healthier brain. better life. we tend to see they guys near the top of the list. the news with tesla is interesting. they are in and out making the model. remember just a year ago they pulled the recommended tag off the this vehicle, saying they were just too many problems there. well, when you talk to "consumer

reports now especially the last year and as a result, not only did they put it as a top tick they say it's the most -- to jumping jumpings. >> what about. >> it depends on who you're talking about? edge certainly in the top half, they're not in the bottom half jeep was, what, second or third to the bon, and that's not a good place to be cadillac was in the bottom five as well. >> it's obviously good for bragging rights, but does it move the needle on sales

how big of a dragger is it >> you could make an argument that it doesn't move the needle. land rover is like third to last, but they had record sales last year. look at somebody like subaru this is built a reputation on quality and safety they are consistently at the top of these reports it does help with ha reputation, which i think ultimately helps with sales >> land rover third to last, last british automaker >> phil, thanks. time to get a cnbc news update with tyler mathisen. >> thank you very much senator elizabeth warren continues her attacks on fellow democratic candidate michael bloomberg from last night as she continues to campaign. >> last night it was my job to

make sure america got a closer look at mayor bloomberg, and come to understand that of all the people on the stage, he is the riskiest for the democrats he is the most vulnerable in a general election. from the department of irony, russian president vladimir putin thanking the fbi for helping thwart a terror attack planned for new year's eve in petersburg. he said he appreciated the helping and would return the favor. they say you can't buy friends, but if you want to watch the '90s sitcom "friends," that's what you have to do. the show has been taken on the floor netflix. ugy tripled since netflix announced it was losing the show "friends" will return to the streaming world when the hbo mac service launching in may that's the update at this hour

back to you. i reckon i once had all of them i don't have them stiff. it would annoy me to have to go buy them. >> i was amazed i got send a lot of the movies during the awards season, and so many don't have dvds tyler, thank you. former fed vice chair will give us his take next my biggest fear was losing my independence. mmm... good. so i've spent my life developing technology to help the visually impaired. we are so good. we built a guide that uses ibm watson... to help the blind. it is already working in cities like tokyo.

my dream is to help millions more people like me. she is on her way to our house. what? i got it. alexa, start roomba. the lexus es. eagerly prepared for the unexpected. lease the 2020 es 350 for $389 a month for 36 months. experience amazing at your lexus dealer. now you can, with shipsticks.com! no more lugging your clubs through the airport or risk having your clubs lost or damaged by the airlines. sending your own clubs ahead with shipsticks.com makes it fast & easy to get to your golf destination. with just a few clicks or a phone call, we'll pick up and deliver your clubs on-time, guaranteed, for as low as $39.99.

shipsticks.com saves you time and money. make it simple. make it ship sticks.

federal reserve vice chair warning this morning that the coronavirus does present a risk to the u.s. economy. >> supply chains are very important, so to the extent that supply chains are disrupted by the current virus, that could show up as input to the u.s. economy. you have the overall impact, so we're looking at multiple

indicators right now. >> morgan stanley telling wilfred earlier, he sees signs of bouncing back they'll provide stimulus, they'll bounce back out of this. the chinese economy is much bigger and more coordinated form there will be hits in the short term, but they'll bounce back. welcome back to you. how do you think about whether china's lost economic activities will bounce right back >> i think that's probably the most likely outcome, but there's certainly a risk that it does. it's a terrible human tragedy, and is having a major effect on china, and rippling from there across the global economy through, as rich said, through

supply chain disruptions, through reduction in exports, through tourism being cut down, particularly around asia i think the most likely outcome is they get their arms around things, it gradually dies out. the chinese economy recovers in the second quarter, certainly in the second half of the year, and it leaves a very small imprint on global gdp, but there is a downside risk here that it becomes a pandemic, so it affects more >> does it feedback to the u.s.? >> certainly a little bit. from rich's perspective as a monetary policymaker, i think jay powell had it right. they'll need to judge whether the shock to the u.s. economy, the effects are persistent and

material so i think right now it doesn't look like they're material it might be a small effect, but that could get larger. the persistent part is also very important for monetary policy. if things recover in china and china begins importing more and tourism recovers, and things are reestablished in the second half of the year, then easing monetary policy to counter a temporary shock like this would not be appropriate it wouldn't do anything to the shock, and the easeeaseing of monetary, it would just come in as everything was recovering i think the best guess is it's not really something that monetary policy is appropriate to react to. >> yet here we are again where the market is pricing in a fed

rate cut this summer if you were still on the fed, how likely would that be, from your point every view? >> i agree with the other part of rich's interview this morning with steve, that it's not -- my best guess is interest rates would remain pretty consist tan over the year. i think the underlying economy is growing well, about in line, maybe a little faster than our potentially, and inflation is lagging the fed's target, but i think there's -- it's reasonable to expect that it will come up towards the target and to the target as the fomc does at current interest rates i would emphasize there's a huge amount of uncertainty around a prediction like that, and i think we need to recognize all kinds of things could throw that

off, but that would be my best guest. what the market has priced in, and appropriately so if there is a change in policy, it's more likely to be down than up, and i would guess that's what they're pricing in that probability rather than a certainty of a policy ease. >> with the election in mind, how stroung do you expect the economy to be throughout the rest of the year >> without the election in mind, wilfred, i think it will be fine i think people are predicting 2% growth, similar to what they had last year. that's right in line with potential. incomes will continue to increase and certainly their debt servicing is very low savings

rates are still pretty high. consumers will continue to spend. the big question mark is business capital spending. it will be interesting to see whether that begins to pick up let 'say trade tensions were a bit lower. that could push the economy to a bit stronger but right now we don't have any indications that capital spending is picking up thank you for joining us. >> you're welcome, good to be here. up next seema mody has an up-close look on how dupont is helping to com bad the

coronavirus. >> reporter: medical workers i facing a short an of protective gear what dupont is doing to get more suits overseas, when "closing bell" returns. ll know, so much more. peloton is truly a category of one and we're just getting started. now, let's do this. together, we are going further than we ever thought possible. and i'll tell you some important things to know about medicare. first, it doesn't pay for everything. say this pizza... [mmm pizza...] is your part b medical expenses. this much - about 80 percent... medicare will pay for. what's left... this slice here... well... that's on you. and that's where an aarp medicare supplement insurance plan,

insured by unitedhealthcare insurance company comes in. this type of plan helps pay some of what medicare doesn't. and these are the only plans to carry the aarp endorsement. that's because they meet their high standards of quality and service. wanna learn more? it's easy. call unitedhealthcare insurance company now and ask... for this free decision guide. inside you'll find the range of aarp medicare supplement plans and their rates. apply any time, too. oh. speaking of time... about a little over half way and there's more to tell. like, how... with this type of plan, you'll have the freedom to choose any doctor who accepts medicare patients. great for staying with the one you know... or finding... somebody new, like a specialist. there are no networks and no referrals needed. none. and when you travel, your plan will go with you anywhere in the country. so, if you're in another state visiting the grandkids, stay awhile...

enjoy... and know that you'll still be able to see any doctor who accepts medicare patients. so call unitedhealthcare today. they are committed to being there for you. tick, tick, tick, time for a wrap up. a medicare supplement plan helps pay some of what medicare doesn't. you know, the pizza slice. it allows you to choose any doctor, who accepts medicare patients... and these are the only plans of their kind endorsed by aarp. whew! call unitedhealthcare today and ask for this free decision guide. due possibility has been racing to ramp up protection of personal protective equipment to help prevent the spread of coronavirus. seema mody has an inside look. hey, seema >> reporter: hey, wilfred.

there are different types of protective garments that health care workers can wear. dupont set this white tie-back suit that rangeses from $5 to $15 to help health care workers are -- all these suits, the manufacturing process starts right here in richmond, virginia behind me you see the polyethylene fabric being adorned with heat and pressure, it's steamrolled, and then it goes to a number of manufacturing facilities from mexico to vietnam, where the final product made dupont has seen production increase we've been speaking to a number of workers here, and they're working 24/7 tots as much product out to china. >> i was going to ask if they

feel confident there that they can meet riding demand i imagine there's a lot of precautions being taken. >> reporter: one of the learning lesson from the 2015 ebola outbreak was for depont to invest in a supply chain, in increasing and extending a number of facilities it has around the world that way when there is a disruption, it can be agile and put more assets to work. >> seema, thank you. seema mody in rich monday. up next your earnings rundown. well off their highstell you wh. domino's stock is soaring.th the ceo, a preview of that interview, when we return. what a time to be alive.

the world is customized to you. 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.

[ fast-paced drumming ]

try to win by attacking, now, we know the trump strategy- distorting, dividing. mr. president: it. won't. work. newspapers report bloomberg is the democrat trump fears most. as president, universal healthcare that lets people keep their coverage if they like it. a record on job creation. a doable plan to combat climate change. i led a complex, diverse city through 9-11 and i have common sense plans to move america away from chaos to progress! i'm mike bloomberg and i approve this message. along with 360 billion in assets, and of course this comes on the heels of the merger last

year for more on the reshapes of the industry, let's bring in devin wright thank you for joining us thanks for havingme. >> you're well placed for this is it rich or well priced? >> i think james gorman talked about it being a full and fair price. it's a good price, so i would be happy for any shareholders, you'll own morgan stanley going forward, so i think that has to be contemplated. morgan stanley stock was down a bit, and you come up with immediate accretion -- but i think it's -- i think it will be an important asset for them. the digital story here in the space, so much is happening today, and i think with schwab acquiring ameritrade and a lot of the startups coming up, with,

you know, brokerages going after banking customers, trying to go after a broader wallet share, it's not about what's happening over the next year or two, i think it's a bigger strategic pictu picture. >> what happens to the independent brokers that are left >> i think it depends. really the game has been acquiring customers, trying to figure out how to monetize those customers. so there's some firms that i think have scaled enough where they're in an okay spot. really the theme here is you need to add capabilities, so you are able to service the customer not just on one product capability so many are becoming commodityized. it's where is there opportunity to provide advice or something that's value-added where you can help the customer. where we're seeing things evolve, how do they find products that are going to provide better yield on cash

provide lower fees on investment you give away trading, give away certain parts of management, and you have to have the ability to check all of those lists on both the asset side and liability side i think technology is enables firming to do this. >> will goldman sachs be annoyed? not so much that they didn't do the deal, but that morgan stanley did? >> i don't think so. i think goldman sachs possibly look at this i know you guys have been talking about the corporate stock plan business. so it really is a natural fit for these two firming. they talked about how they willed to convert stock plan -- so that's unique to this deal. i like where goldman sachs is going, their digital strategy, finding different ways to check the boxes on the asset side and liability side of a customer's

balance sheet. >> what's the rating >> we have a neutral on morgan stanley, we have been bullish. like i said, i like this deal, i think the market will like it more anytime they spend on it. goldman just upgraded. i think it's probably the biggest transformation of at the financial services, and i think they're holding back i think there's more. thank you for joining us coming up on the show tomorrow, could interactive brokers by the next takeover challenge. thomas peter dffy will be with us tomorrow jim cramer just had a chat with the ceo we'll have early bites from that interview. what's important to you?

saving for ava's college. financial security. being able to retire. on our terms. no matter what your goals are, our trusted advisors can help you reach them. ameriprise financial.

our trusted advisors can help you reach them. (vo) in every trip... there's room for more than just the business you came for. ♪ whether that's keeping up with what you always do... ♪ ...or training for something you've never done before. (crowd cheering) that's room for possibility. ♪

shares of domino's surging today. jim cramer just sat down with its ceo to talk about the strong quarter. >> in the fourth quarter, it certainty didn't get any easier from a competitive standpoint

did you bond get incrementally difficult. we had an opportunity to tap the capital markets and take another debt and we deployed that to set the business up for 2020 don't miss the rest of that interview on "mad money. a minute left, wilfred still hovering right near their highs. , and then a very steady improvement. i found that an improved fit both having big pivots on their

strategying, and the market year-to-date -- >> i wonder if it's a catch-up thing. >> of course it's interesting that the focus has been on the struggles. >> it does affect the policy. >> that's for watching "fast money" begins right now. >> live from the nasdaq marketsite, this is "fast money. i'm brian sullivan in again. welcome back misweft talked about a few weeks ago, if not called the deal that's shaking up the financial industry