we'll tell you about the changes ceo evan spiegel just outlined next >>> and later guggenheim's scottfirst to raise the possibility of the fed actually cutting interest rates last year. >> had this kind of a pullback in stocks. the federal reserve reacts they at least pause. about half of the time they go on and do a rate cut >> ahead, he'll tell us why he's changing his tune and now predicting a rate hike in 2019 >>> welcome back to "closing bell." s&p 500's going for its sixth day in a row if we can finish higher as far as what's helping the market, the materials the best performing group thanks to the dow which is also driving the dow jones industrial average communication services stronger all day long seeing some strength in particular in facebook and some of the media names alphabet's doing well. fang kind of day energy and consumer discretionary also up. real estate and technology, which is a lot of the chip stocks, are lower today. >> time now for a cnbc news update with sue herera hi, sue. >> hello, wilf hello, everyone. here's what's happening at this hour pope francis namin

that's right here evan spiegel talking about how he wants to expand snap and make it a bigger part of his user's lives with new tools and new partnerships to help keep its users hooked, but also help grow ad dollars. perhaps the biggest move to grow time spent on snap chat, a new game service and it will be free with six-second ads opening up a revenue stream it's making a big move to integrate with other apps to apps like tinder and you'll be able to share the shows you're watching from netflix back to snap and snap announced there is an app network to bring its ads into other apps. >> the snap chat camera changes how we see, how we speak, how we shop, how we tell stories and so much more. >> snap also snapping up its augmented reality lenses to stay ahead of facebook and instagram which have cop ed them now snap's offering the ability to track hand, bodies and even pets and has lenses for landmarks like the eiffel tower. spiegel stressing how different snap is from facebook with its focus protecting user data and privacy. this comes as facebook ceo mark zuckerberg defended facebook'

now ceo evan spiegel is hoping to restart growth by integrating snapchat ranging from netflix to tinderames with so much competition for consumers time, we'll see whether the new strategies draw users back every day julia borestein, cnbc business news, los angeles. >> head of global strategy from asset global management. as i was saying, about 35% of the s&p are reporting this week just taking a look at the companies that have reported as of yet 80% have booten so far expectations that are quite low going into this first quarter earnings season. >> we've had the des putin between qualm comand apple how are you playing into the 5g theme here, and how are you picking the winners and users? >> 5g is an interesting moment at the area. i think if you think about 5 g now, you need to think maybe more about the laggards, and i think within that context the resolution of the apple dispute is a big change for many investors. it's been a stock that they've held away from actually, when we look at 5 g, qualcomm plays a crucial part in dividing the chips and it is is going to have a leading role wh

over 400 partners here of snap and they're all inside in the main south stage listening to ceo evan spiegelheir engagement with the camera software in that platform >> camera changes how we see, how we speak, how we shop and tell stories and so much more. but most importantly, our camera lets the natural light of the world penetrate the darkness of the internet >> that sounds like a little dig of facebook. augmented reality tools to make snap lenses easier to use, more customizable with hand tracking and body tracking and even pet tracking, easy for everyone to create it's calling landmarker lens experience to add augmented reality layered to landmarks like the eiffel tower and the flatiron building. we'll hear about snap's game platform and more shows they're launching for discover and throughout today, we expect these executives to address snap's protections of user data, while also announcing their scale with younger users to rival facebook spiegel announcing it reaches three quarters of 18 to 34 years old and 19% of all 13 to 24 years old, more than facebook and instagram in the u.s. as

and just one more detail on ceo evan spiegel's comments on growth higher than expected.we see many opportunities to increase our investments and we'll continue to manage our business for long-term growth some commentary here about how the likes of the new game platform that snap added will boost growth over the long term. back to you. >> julia, thank you very much for that let's dive into those numbers. neutral rating on the stocks sam mcbride has been bearish on snap since the ipo. a very good afternoon to you all. let me start with you, sam correct call for the most of the run but it's had a fantastic year to date what do you make of the numbers? >> i think the reaction to these numbers just shows how low the expectations have become for this company super thin user growth is not that impressive but the market is acting like they're going to take over the world here and we think there's been so much bearishness, so much trouble with this company over the last two years, it seems like the market's willing to reward them for even the slightest signs of improvement >> bre

user growth than kpchtexd but warned for the second quarter, its costs higher than expected ceo evan spiegel laying out how they're investing for the long-term and that means it's going to cost them up front. it's going to cost them to invest more in the platform and whether it's content or games or lenses so he said it's worth it over the long-term but investors are weighing how long it's going to cost for the company to become profitable. >> again, one ocht mof the more stunning reversals we've seen. julia boorstin here's what else is coming up today on "the exchange." >> ahead, will the battle for anadarko start an energy bidding war in the sector? and if so, who wins? >>> plus, former fdic chair sheila bear said there's no such thing as free college. >>> and why lululemon ceo says high prices are here to stay and why deodorant may be the next big market. >> this is "the exchange" on this is "the exchange" on cnbc thislet's develop apps on cnbc that help save lives. let's make open source software the standard. let's create new plastics that are highly recyclable. it's going to tput from

snap and buysome twitter >> dan >> i think it's what julia said that's very important and what evan spiegelabout the demographic. snap is only expected to have $1.5 billion in sales and it's a rounding error on facebook and 70 billion which is largely advertising. so to me, i still think snap was down from the ipo price and this was a unique, social property and it will be valued at much more and up 120% and the stock is lucky to be unchanged this year because there was a lot of high expectations in the print >> the android reboot was very important and a whole new. >> you've been all over twitter and we have to give you credit >> i appreciate that that's nice. one of the things we said was when twitter took their medicine a couple of quarters ago and said this daily active user stuff is not for us anymore and they finally bit bullet and we said the move to 30, 30 1/2 that will be it and you'll regret not buying it here and that proved to be correct. in terms of snap it's a north america story without question just look at the numbers >> average per revenue per user. >> crushed $2.75 and it

. >> the rock star ceo there was an evan spiegel premium in snap, you don't have that in these names now. >> coming up, the deliveries and orders of its 737 jets plummet in the first quarter one of the traders said this is just the tip of the iceberg and a big week from the banks and the ceos and they get grilled on the hill and the group is up for earnings and karen says there is meing out ossothabthe stocks that wall street is getting all wrong. she will explain when "fast money" returns >>> breaking news out of washington treasury secretary steven mnuchin just left the hearing on the hill in the international financial policy elan moi is there tracking the treasury secretary >> melissa, he has been on the hill all day long. he ended that marathon day of testimony with a heated exchange with house financial services committee chairwoman maxine waters this exchange was not about trump's tax cuts or trump's tax returns or about tax cuts or even about trade, it was about what time he was supposed to leave. >> what i've told you is i thought it was respectful that you'd let me leave at

ceo evan spiegel explaining how the snap's investments in a range of features including games and lenses snap's bottom line though he says it's worth it over the long run. >> as we're looking at the growth opportunities in front of us, not only will increasing engagement translate to higher infrastructure costs but we also see more opportunities to invest in our content business, our augmented reality business, and more so i think just as we look to the future we're of course going to do our best to balance our operating efficiency along with our long-term investments but we see a lot of opportunities right now. >> lot of comment on those long-term investments there. now, still, a number of analysts upgrading snap on its improvements with its ad platform, also its ability to adieuse add users faster than expected there should be more user growth going forward. also saying new ad buying tools are helping drive snap's margins. needham citing concerns they will need to raise cash with higher investments in marketing, content, engineering, and sales and now of course we're looking forward to