Transcripts For CNBC Closing Bell 20240714

That key 3000 level again. Joining us for the entire hour nancy tangler from tangler wealth management, welcome, nancy. Thank you, sara. We are seeing a nice rally on wall street. What are you doing right now what are you buying . Still focused on the consumer the china news is good but i dont expect us to get a deal soon u. S. Consumer. Yes, thank you. Although china did pretty well according to coke. Yeah, great interview by the way. Thank you mcdonalds, home depot, starbucks, those are some of the names we like in the consumer space as well as coke, one of our largest holdings. Who do you think likes the bachelor more i didnt know tyler was a fan. Im a super fan. Anyway lucky were getting that show on cnbc. Theyre one of the best couples. The new show. Oh, theyre from the bachelor. Im lost. Kayla tausche and seema mody has United Technologies and josh lipton has details on potential app de apple deal in the works and diana olick. Kayla, lets start with you. Wilf, theyre expected to negotiate since the g20 with sources saying the talks will take place between the start of congressional recess this friday and chinas august 1st holiday some reports say u. S. Officials will leave monday. The talks are looking for compromise on two front, President Trump wants china to buy Agricultural Products in exchange for relaxing the business ban for huawei. Longer term the white house will dial back tariffs if china codifies this deal into law. Now, recently white house officials have signaled even though President Trump is inclined toward a deal, that latter item getting china to make this a law and legally binding could take several months and theyre trying now to shift the focus of the conversation here in washington to the new nafta for the next couple of months, wilf kayla, thank you so much. Either way it helped markets get to session highs in the final hour, just off them, up 170 points on the dow. Earnings and one of todays big winners, the big winner, cocacola and, sara, has all the highlights coke surprised wall street with more growth than expected 6 or gangic Revenue Growth. Very strong. On a mix considered healthy. Higher volume and pricing driving that growth. Coke saw strength around the world especially in asia why . Well, theyre doing better marketing like the new Stranger Things new coke promotion they have andinnovahions. Multiple years of good growth rates and multiyear growth and a sign that the transformation of our business being more consumer centric, more innovation and marketing led and being faster and more nimble with our bottling partners on executing is really bringing together increased momentum across the business system. Some other takeaways from the quarter. Coke zero sugar still growing double digit, seventh quarter in a row. Currencies are painful nine points off the earnings per share but executives say that is going to look better in the coming quarters. And for you, wilfred, costa coffee ref ready to drink. Its been touted the executives, James Quincey is excited about how they have tested out in early markets an they look to expand that new innovation thats a big part of the new growth story at coke and also at rival pepsi. Pepsi really seeing the story play out in snacks but both have new energetic centres driving faster change, increased marketing and leading to better results in the market and in the overall performance of the companies. And in terms of this flexibility that theyre showing now, i mean, how stark is that to pepsi or is that something that theyre all what do you mean flex jblt. The ability to adjust rather than being in mammoth Goliath Company they made a huge change that was started but executed by James Quincey spinning offer bottlers which made them faster and will ultimately make them more profitable so theyve sort of gone through this transition year and are now coming out the other side and starting to see the benefits pay off and as a result, thats why you hear quincy talk about execution and being faster to respond to the consumer environment in terms of new innovations and ramp up marketing and sort of hearing the same message out of ramon lagart out of pepsi. Why do you like coke over pepsi . Quincy has proven a great ceo can take a moribund brand and reenergize it he got the government off his back for high sugar content. It was a brilliant move and seeing it come through in the organic growth. Up 6. 3 , leads the dow. United technologies also beating on the top and bottom lines and seema mody has that for us. Less than a year after their purchase of rockwell theyre posting better than expected results. Aerospace aftermarket benefiting from the grounding of the 737 max jets analysts pointing to higher demand for maintenance components and repairs for older planes executives say united tech is on track to break up the company next year and defended its plan to merge with defense contractor raytheon despite pushback and ago advice investor dan lobe. Another big dow winner. Biogen higher after reporting earnings before the bell and meg tirrell has the story . It was a guidance raise driven by outperformance of its key multiple slower rose cyst drug franchise. After a major alzheimers trial failure in march, investors have been waiting for details on a new direction, especially potential m a. Though some like Jeffrey Holtz says it may be in the cards and wasnt all rosey one of its newest drugs missed numbers and sent ionis lower. Switching gears from earnings to two deal stories in the tech world. Lets start with josh lipton on reports of an apple intel deal what do we know . Apple is reportedly in talks to buy intels smartphone modem chip business. This deal is valued at 1 billion or more for patents and staff and checked in with ben of Creative Strategies and giving the company the necessary patent, i. P. And talent to help develop its own 5g modem instead of relying on a single supplier and apple building its own modem could be bad news for qualcomm even if apple could scale a ag modem business inhouse its a longterm threat taking perhaps as long as five years to really build out. Guys, back to you. I was going to say, josh, for 1 billion it doesnt seem like there they can be acquiring much immediately. How much do they spend on these types of chips annually. So, interesting we talk about 1 billion. Apple doesnt do big acquisitions often its biggest ever 3 billion for beats. 1 billion is a pretty big acquisition. Apple is looking for if these are accurate, a ag modem get it off the key supplier and they have a history of bad blood. Interesting when you think about intel they told us in april theyll continue pursuing 5g technology but get out of the 5g smartphone modem business because they didnt see a pathway to profitability if apple pulls the trigger on this, its because they see some value in those pallet tents but must figure too once we bring that inhouse through r d and integrations maybe we can mitigate losses. You own apple and intel, i believe. I do. Do you like the soft of strategic idea behind the deal. I do. I think tim cook has been consistently underestimated by the street and analysts. If it doesnt work it doesnt matter because they have 113 billion schroeder in cash. Youre trimming your apple. On strength, yeah its almost 5 of our portfolio so thats i mean were forced to do that as prudent Portfolio Managers but, yeah. But nothing youre not worried about anything coming up in the quarter just purely size and the runup i am never not worried. But i own the stock for the next three to knife years so there are low expectations for this quarter. Though the stock is pricing in a Pretty Healthy expectation overall. Still off its highs at 220 earlier this year. Okay. Josh, thanks for that. Now amazon making a deal of its own teaming up with Real Estate Brokerage realogy on a new partnership. Diana. Shares are soaring on at announcement the partnership uses amazons powerful website to drive buyers to realogy owned brokerage like coldwell banker. Buyers go through amazons turnkey portal, connect with a realogy agent and when they close on the house Amazon Home Services gives them up to 5,000 worth of Free Services like painting or cleaning or products like the ring doorbell so amazon grows its smarthome business in a headtohead battle with google back to you guys realogy, there we go, not realologj. Amazon steps into the space and everybody gets scared. Very scared or excited s it a step into amazon actually listing homes . I asked the realogy ceo whether he thought you would see realogy listings on amazon and he said we have not had that discussion. Amazon said not now but didnt say anything about the future so the question is, you know, with everything else, will homes be listed on amazon i think thats the excitement around this. Diana, thank you very much. Nancy, you owned both of the last deal players but you dont own both of these. One. Amazon, we personally dont own it for clients the valuation is rich. Its brilliant for the millennial buyer i just dont think millennial buyers are buying a lot of homes. I think they will. I think its exciting. I love the idea of walking into a new home, smart home with fully, you know, stocked issues from items from amazon so i think its exciting and interesting. I just dont know when youll monetize it if youre realogy. Okay, nancy, thank you so much of course, with us for the full first hour. Snapchat has been the darling of wall street all year long up 150 but will that continue well get results from Parent Company snap along with chipotle, visa, Texas Instruments and more after the bell. Plus, teen retailer American Eagle plans to expand. More on that. Our data tracker, the philly fed nonmanufacturing index came in 21. 4 in july up from a reading of 8. 2 in june and june existing home sales did fall 1. 7 missing estimates of a drop of 0. 6 . Closing bell will be right back dow up 177 is where people first gathered to form the stock exchangeee, which brought people together to invest in all the things that move us forward. Every day, invesco combines ideas with technology, data with inspiration, investors with solutions. Because the possibilities of life and investing are greater when we come together. Wiswitch wireless carriersn bring in your own phone, and save hundreds of dollars. Its pretty much the easiest way to save since sliced bread. Sure is. Because savings is as savings does. And sometimes youve just got to stop and smell the savings. Im sorry, i think you mean roses. Oh right. You need to stop and smell the roses of savings. Bring in your own phone, switch to Xfinity Mobile and save hundreds of dollars a year. Now thats simple, easy, awesome. Get 100 back when you bring in an eligible phone. Click, call, or visit a store today. 45 minutes left of trade were not far from the session highs up 175 points. 0. 6 on the dow. Lets send it over to mike for todays market dashboard. Hello, wilf well start with one word, plastics or plastic. Well talk about the credit card stocks actually. We can rebuild him thats next. Thats about spare parts of a sort and then falling with style. A little bit of slippage below the surface of the market. Well give you numbers even a run to the daily highs and retired investor on a pension, a look at why pension underfunding is driving Financial Markets right now. So lets look at the plastics. These are the credit card issuer stocks well hear from visa with earnings a consensus glamour stock. Everyone loves it because of use of cards and issuers have done very well relative to other financials, discover financial right here, American Express and si sinchrony. Regional banks suffering in comparison Consumer Finances look okay. Wages and spending look fine its not helping the retailer. Its not helping the core banks but issuers are doing well i did want to look at a longterm chart of American Express to put it in a broader context. Over 30 years these are the starts of recessions right here so you always had American Express topping and falling ahead of a recession, sometimes not by more than a few months but it always happens so that American Express at an alltime peak is a little inlation against imminent recession fears, guys. Im trying to figure out the rest the graduate is the first quote. Im trying to figure i bet nancy could help. One of them is a tv show, not a movie. All right oh, plastics. Plastics is the graduate. Sorry im behind always one step. You have 43 minutes well look at the other themes in just a moment. But what sort of message are you getting from the credit card stocks. I own visa and American Express. Theyre pretty woman rich in terms of valuation but you cant find the trend we are moving away from cash and checks obviously to cards and its interesting that the company didnt spend a lot of time on hasnt spent a lot of time on libra. That will be interesting to hear about the call to see if they talk about it. Well wait for results after the bell Boris Johnson officially winning the race and will take over as Prime Minister tomorrow. Heres what he said following the announcement of the results. I say to all the doubters, dude, we are going to energize the country. Were going to get brexit done on october 3 9 and take advantage of all opportunities it will bring in a new spirit of can do it was a pretty good acronym, i have to say. What does it mean for the markets and brexit. What does it mean for brexit, sara its true to say the new Prime Minister has promised to leave on october 31st come what may so the chance of a no deal brexit has risen but what has not changed is the makeup of parliament where the math remains against a no deal brexit importantly, parliament goes into summer recess on thursday, giving johnson six weeks or so of breathing space if over the summer johnson miraculously improves the deal, the eu is offering, perhaps that brexit deal is passed by parliament in the fall if not, if he really is set on leaving without a deal on october 31st it is likely the parliamentary math will need to change, i. E. , a general election whether he calls for it or it is forced upon him. Now, sterling down a little. Much weaker in recent months as it became clear theresa may would be leaving and Boris Johnson would be arriving, that fact confirmed earlier today. I feel like expectations are lower now that he is Prime Minister because he was a brexiteer and threatened to leave october 31st deal or no deal thats not something we heard as strongly from Prime Minister may so the fact that its a hard brexit is filly on the table, right . 100 . But that had already been priced in in recent months why sterling only fell 0. its fractionally above recent lows briefly below 124 but at twoyear lows and paints the picture that at the moment i dont know. It could go down to parity if they which is why its highlighted, the markets base case expectation is not no deal. The chance of no deal is higher than it has been because a Prime Minister with his rhetoric says its possible and the math means it hasnt priced that in yet i dont think hell see a real crunch point in the next few days then parliament goes into recess until september, so hes got six weeks to travel around europe, try and get movement on the deal if it he doesnt when he comes back in september theres going to be a lot of pressure on him. The lib or unite, defeat, energize, dude. Td ameritrade surprising the street announcing tim hockey will leave in february of 2020 well talk to him in a first on cnbc interview. Citigroup adjusting numbers on tesla that and other stocks coming up. Why go with anybody else . We know their rates are good, we know that theyre always going to take care of us. It was an instant savings and i should have changed a long time ago. Were the tenneys and were usaa members for life. Call usaa to start saving on insurance today. Welcome back to closing bell. Just over 45 minutes until the close. Time for word on the street. Bank of america upgrading Columbia Sportswear to buy but the 130 price target, the firm citing valuation which is in line with its peers like nike and adidas, bank of america sees opportunity for footwear which offers strong visibility for longterm growth they say at columbia. Jefferies out with a note on wayfair. Marriage is tough but registry doesnt need to be uniquely positioned to capture market share in that space especially its competitors like bed, bath beyond and macys struggling jefferies reiterating a buy rating not moving the share price. Citigroup maintains a sell rating on tesla. Citi seeing gross margin is the key metric to watch. They havent changed the price target of 191. About 25 downside from here and as i said earlier still maintaining the sell rating which, i guess, its an upgrade but doesnt move at all. Fair a bearish. Every time i ask you about tesla you say you sold out of it. We did. Actually at the beginning of 2018 so we bought in 2016 when i think i was on set with you the day of the bong whiskey videotape avideo. It went quickly from investing to gambling with that Management Team and lack of oversight from the team so im out no matter what. Even though the results have been theyve been better but we sold in the 320 range and bought in the 180 rank so i dont feel i dont have any fear of missing out in this particular case because i got nothing to hang my hat on. By the way its up 1. 7 reports earnings tomorrow after the bell. Who knew you could register at wayfair, very useful. Very exciting register is when you get married then you can choose im aware ive had to buy shed loads of gifts despite paying for plane you shed shed loads. Shedloads could be misinterpreted well, thank you for clarifying it for me i said shed loads. Anyway weve got 34 minutes left and were back near the session highs up 182, the high of the day, the dow up 192. 0. 6 or so, 0. 7 almost. After the break well speak with American Eagle about the companys new decision to sell cbd products the dow is up 183. Moving is hard. No kidding. But moving your internet and tv . Thats easy. Easy . easy . Easy. Because now xfinity lets you transfer your Service Online in just about a minute with a few simple steps. Really . Really. That was easy. Yup. Plus, with twohour appointment windows, its all on your schedule. Awesome. Now all you have to do is move. That thing. [ sigh ] introducing an easier way to move with xfinity. Its just another way were working to make your life simple, easy, awesome. Go to xfinity. Com moving to get started. 31 minutes left of trade here the three things driving the action, facetoface tlad talks between the u. S. And china expected to take place monday. An earnings recession seems unlike after todays strong numbers and s p holding above the key 3000 number with just as we said 30 minutes left until the close. The dow up 175 points itself. Time now to get a cnbc news update with sue herera. Whats happening at this hour, President Trump lashing out at another member of the, quote, squad of Democratic Women of color he criticized representative Rashida Tlaib of michigan at the turning point usa teens Student Action summit in washington. Shes vicious shes like a crazed lunatic. Shes screaming this is before she got into congress who elected her . Shes screaming like a total lunatic at one of our rallies. Its like im giving a little rally and she starts screaming this is not a sane person, folks. A former omaha Public Schools teacher will spend at least the next 40 years in prison. He was sentenced after pleading guilty to sexually assaulting three children in his classroom. He was arrested in december. Basketball star Zion Williamson is officially affiliated with the jordan brand. Financial terms not announced. Williamson said when he was young he dreamed of making a jordanlike impact in the nba where he will be playing for the new Orleans Pelicans you are up to date thats the news update this hour ill send it back to you guys, wilf and sara. Nike got a little bit of a boost from that announcement i think its a huge i think this is a Material Impact on nike there were serious questions a few months ago when, remember, zions shoe blew out during one of the most important games of the year and people thought, maybe this is an opportunity for adidas he wore an adidas track suit on instagram so now its definitely a coup for the jordan brand and nike and hes one of the best. This is what sells their sneakers Major Players like a michael jordan, like a kevin durant or a steph curry. This is a surprise or just avoiding what would have been a surprise if he had, indeed, gone away from nike i think it was avoiding a surprise because nike is dominant especially with the big stars, but im sure there was some kind of bidding war and everybody made a play for him. Im sure hes receiving a lot of good things the terms are probably very big. Lets send it over to mike for the second installment of the dashboard. Mike. Well, if we can rebuild him, we have the technology was, of course, the tag line from the great 70s show the 6 million man which im surprised none of you got. Medical device, medical tools, medical spare parts, they have been great performers. Boston scientific as well as thermo fisher. A split between the white and usf Health Providers anthem, they have struggled and there is a policy overhang but this reflects the general appetite of investors for these longterm growth platforms, obviously its kind of a razor and blade type Business Model with these device companies. Unclear exactly how far we can get these stretched. Neither one had a dramatic move today but i think its an interesting mike khouw come of whats going on even within health care which as a group is neither growth nor value the growth stuff is really working and the cheaper stuff that maybe has a little policy shadow is just neglected, guys plenty of uncertainty out there about that, mike, thanks. Cbd popularity has surged in the past few months and the fda is beginning to take notice. Today the fda issued a warning to pure leaf for marketing products using unsubstantiated claims including that their products can treat everything from cancer to pet anxiety the uncertainty surrounding it hasnt stopped traditional retailers from piling into the space. Offering cbd in beverage, lotion, even makeup products, American Eagle, one company that announced it would begin selling cbd products back in october and joining us now to discuss is American Eagle presidechad kessr welcome back thanks for having me. What will you be selling and why did you make the decision . We are selling topical hemp based cbd products starting october. We think its really relevant for our customer were excited to bring them something that we think theyll respond to when does this start . It will start in october. Id love to come back in october and show you the line of products but thats when the launch will be. Why is it relevant for a Clothing Brand you know, we try to make sure we offer were the leading retailers for 15 to 25yearolds and want to make sure we have exciting things across a whole range of categories and think there is a lot of excitement around cbd and what it can do and we think it will be great for our customers. We think well bring them in and just give them another reason to shop at American Eagle. Is it about bringing them in . Is it about traffic . You guys have seen pretty decent Comp Store Sales but the street didnt like the last update on your guidance when it comes to earnings and margins. Yeah, weve had actually 16 quarters of positive comps which is a great track record and we have had healthy traffic, but theres always, you know, things we can do to make the brand more relevant and to excite the customer even more so thats one of the things were trying to do here. You mentioned the age group, 15 to 25 are you certain that these products will be absolutely fine longterm for some of those teens . Should there be an age restriction on them. We dont think there should be an age restriction. As i said were sticking to topical cbd which all the evidence shows is safe and, you know, we do know from our research that theres excitement in our age group for the product. We will do a lot of education for the customers and parents as we launch the product. Working with Green Growth Brands a lot of your competitors are working with them as well including abercrombie. Does that mean you wont be working with other pot companies or cbd companies. Right now were working just with Green Growth Brands we have a lot of confidence in their supply chain to make sure that the product is clean and safe the difference that we have versus our competitors is weve developed an exclusive line of products that well share in october. Where do you stand now on the ideal number of physical stores you want to be having and when you see other similar clothe retailers shutting down stores, do you see that as an opportunity to move into some of their spaces or are you trying to do the same thing as well and close as many as you can. Im a big fan of stores theyre great for brand relevance, brand awareness, for customers. Customer service we really find that, you know, having a large amount of stores helps us with customers and almost all our stores are profitable so for us its about meeting the customer where they are and providing a great experience. How do you play retail right now. Mostly online with the kind of amazon proved companies so own walmart, home depot, costco, but its not because i dont think have you a great brand i do may i ask a question i just wanted i dont get what the benefit is. It feels a little cynical with awe due respect because you seem like a wonderful young man but i dont really get it and as a parent, i dont know that i would want my kids putting cbd oil on unless, you know, they had pain or something so what is the benefit other than when youre young its cool to rebel . Right . Well, we hope that the product can offer, you know, opportunity for customers to take personal time, to relax, to destress from social media. From social media, from all the stresses that young people face, but we know that thought everybody is going to be excited about it but we do intend to do a lot of education to ease the concerns that parents or customers might have the stock hasnt done well this year and has really underperformed any rethink about ive asked before spinning off aerie which is an amazing growth story and hurting victorias secret every single quarter. Were always looking to maximize value at this point theres nothing to announce about spinning off aerie but, you know, we are always trying to make sure were doing the best for our customers and for the shareholders we are what were most excited about today we launch back to school for both ae and broadly for the company and as the leading destination for 15 to 25yearolds this is our time so were really excited. Is that why lil wayne is helping you. Lil wayne is the star of our campaign for back to school. We think hes another thing thats really exciting for the customers and were excited on august 10th we launch an exclusive range of products we collaborated with lil wayne on. Chad kessler, thank you. And triple denim as well. Makes a statement from the stock exchange. Yes triple denim. We are the number one jeans brand. I understand. Anyway, thank you so much. We would not be allowed to do that. Were aall jealous. We have 22 minutes left of trade. Heres where we stand. Higher across the board and actually with the dow now on pace to close at a record high were up almost 200 points so were on record high close watch here the s p firmly above 3,000, 3,005. Another key level and nasdaq up half a percent and gains across the board. Positive trade headlines gave us that added impetus a couple of hours ago. Up next another positive earnings story today kimberlyclark fresh comments from a conversation i had with the ceo this afternoon about whats working at the consumer company. Later well get earnings from chipotle, snap, visa and Texas Instruments after the close. Shares of snap up 150 year to date can that momentum continue well be right back. Woman my reputation was trashed online. I felt completely helpless. My entire career and business were in jeopardy. I called reputation defender. They were able to restore my good name. If you are under attack, i recommend calling reputation defender. Vo theres more negativity online than ever. Reputation defender ensures that when people check you out, theyll find more of the truth, not trash. If you have search results that are wrong or unfair, visit reputationdefender. Com or call 18778668555. 17 minutes till the close. One other to move. Kimberlyclark up a quarter of a percent after 6 cents beat 5 organic sales raided guidance i spoke to the ceo, mike sue and says the headline is the consumer has proven to be resilient and healthy and points to price really significanizati example he gave me better consumer response globally to innovation and marketing like double digit growth in china which is a big turnaround for the company but no question the story here is pricing news that is paying off. Volumes are still a bit weaker one example cutting sheets of toilet paper or the number of huggies typers in a pack trying to squeeze more profit out of less but su says it is innovations like their premium diapers their way of going after millennials who want plantbased liners and no paraben. Kind of an answer to honest. Thats driving the charge. As for competition, rival p g seeing its fastest growth in years. Who says that su says, excuse me, its pricing moves are comparable with p g but kimberlyclark has work to do on boosting market share to compete but for the overall categories, the bachgs like toilet paper and paper towel, he says its just a better retail environment than theyve seen in recent years, not just in the u. S. But globally thats been a story, i mine the stock was up 17 going into earnings so it was one of the favorites. Yeah, and clearly up less than cocacola is today but the theme very important from both stocks and giving impetus to the broader markets that the consumer is strong, domestically in places like china where its more structural growth for them than cyclical. You wouldnt be able to pass on these kind of price increases if you dont have a strong consumer environment i mean what do you think of the staples . Usually seen as defensive, they pay dividends,theyre safe in tough environment yet you see a kimberly and coke and seeing some growth. And the p g that has been able to deliver. We own were not overweight the group but it isnt a bad place to be particular which with the dividend growth. Up 0. 7 the staples sector today, utilities, the only sector thats lower as we stand and we are set at the moment of just off it again on the dow but were certainly close to record closing high areas and the s p remains above 3000 weve got your last chance trade coming up next 14 minutes left. And we are gearing up for a big earnings after the bell. Well tell you what investors can expect from snap, chipotle, Texas Instruments and visa when texas inst[leaf blower]isa when announcer Market Movers sponsored by payden rigel. And you should be mad your smart fridge is unnecessarily complicated. But youre not mad, because you have e trade which isnt complicated. Their tools make trading quicker and simpler. So you can take on the markets with confidence. Dont get mad. Get e trade and start trading today. Your but as you get older,hing. It naturally begins to change, causing a lack of sharpness, or even trouble with recall. Thankfully, the breakthrough in prevagen helps your brain and actually improves memory. The secret is an ingredient originally discovered. In jellyfish. In clinical trials, prevagen has been shown to improve shortterm memory. Prevagen. Healthier brain. Better life. [student] my degree from snhu has helped me tremendously. lively music the flexible class schedules allow me to run my catering business and be a mom and parent. Breakthrough at snhu. Edu. Here, hello starts with hi mple. How can i help . A data plan for everyone. Everyone . Everyone. Lets send to everyone [ camera clicking ] wifi up there . Ahhh. Sure, why not . Howd he get out . a camera might figure it out. That was easy glad i could help. At xfinity, were here to make life simple. Easy. Awesome. So come ask, shop, discover at your xfinity store today. 12 minutes left of trade nancy, whats the last chance trade. Wilf, i dont like to trade in front of earnings so recommending a stock that recently records, broadcom has a 3. 7 yield multiple of 13 1 2 up quite a bit but this is a Management Team on our theme of great Management Teams can make a difference this is a Management Team that we think we want to be what about the broader chip sector is that part of this well, thats kind of already run and i think there are some concerns when Texas Instruments reports today that maybe the good news is priced in but broadcom is a bit of a different story and its a much lower multiple stock with a history of growing the dividend and a Management Team that does a great job on mergers and acquisitions even though there were questions about that last one. There were and thats when we began buying so i think it wasnt wall streets idea so they were mad. I think its an opportunity for longterm investors. Nancy, thank you. Thank you. Lets preview what we will have after the bell. Big earnings Julia Boorstin has a look at snap julia. Well, sara, there is a key number to watch to see if snaps investments in new content tools and Gaming Platform are paying off and thats naps daily active user. Analysts looking for over 192 million that would be a new high after a year of stagnating growth now, snaps revenue is expected to grow 37 . Losses are expected to narrow to 10 Cents Per Share whether they beat or misses, that stock is likely to move with the Options Market projecting a 14 swing wilf, over to you. Julia, thank you. We look forward to those numbers. Kate roger has a preview of chipotle kate. Hey, wilf investors are looking for 3. 74 for the Second Quarter now, samestore sales expected to increase by 8. 3 . Digital, of course, will be in focus. Last quarter it grew 100 thanks to initiatives like Digital First offerings of lifestyle bowls and chipotle rewards were launched so any updates on that which had 3 million members at last count will be key the stock up over 70 year to date best restaurant name so far, guys, back over to you. Josh lipton monitoring Texas Instruments. Josh what, can we expect q2 eps of a 1. 22 that would imply a drop of 10 on the top line rbcs mitch steves tell me hell make a beline for q3 guidance looking for 3. 8 billion from the company down close to double digits has a neutral rating because he doesnt think the companys big end market, automotive and industrial, will recover quickly. Wilf, back to you. Josh, thank you a preview of visa. Wilf, visa has been on a tear so expectations are very high. Anything short of what the street is expecting, eps of 1. 22 could lead to a sharp drop an indication of Consumer Spending and thus the health of the economy. If Bank Earnings were any indication numbers should come in positive. As for future growth theyre looking for b2 b space and updates on initiatives here and might be looking for news on libra if and how facebooks crypto currency could disrupt the payment space, back to you okay, dei, thank you very much i know you dont like buying them but what are you expecting . Anything stand out. I think chipotle is going to be interesting the multiple is pretty rich for us but we are owners of Texas Instruments and im eager to hear what they have to say about china and the industries that theyre exposed to i think this earnings season has been interesting because weve seen revenue raises and weve seen margin expansion. The earnings drought that were in is somewhat expected given the year over year comparisons im very encouraged. Do you think theres too much gloom going in, talk of earnings recession . Today i think we counted five companies raised their guidance. Yeah, and the beats have been at a higher level. Its usually 2 3 and in the 80 ra range. Thanks for joining us we are on record close watch not quite there as it stands, we need another 20 points or so in the dow up 170 at the moment and we will be covering all the angles of the market in our closing countdown when we come back and with bank of america and merrill, the benefits you get can grow, too. As a preferred rewards member, you can enjoy Priority Service and exclusive discounts. So your growing life can be more rewarding, too. What would you like the power to do . What would you like the power to do . I had a few good tricks to help hide my bladder leak pad. Like the old tunic tug. But always discreet is less bulky. And it really protects. cause it turns liquid to gel. So i have nothing to hide. Always discreet. You should be mad they gave this guy a promotion. You should be mad at forced camaraderie. And you should be mad at tech that makes things worse. But youre not mad, because you have e trade, whos tech makes life easier by automatically adding technical patterns on charts and helping you understand what they mean. Dont get mad. Get e trades simplified technical analysis. Announcer closing bell sponsored by etrade the original place to invest online. Under four minutes left to go time for the closingcountdown. Were at 167 at the moment whats pushed higher today trade headlines . Made a new intrahigh and going into the bell were watching earnings and specifically Health Care Earnings as the groups been a laggard all year with the overhang from the president ial election coming up medicare for all the Health Care Providers and the pharma complex have both been weighing on the group while biotech and medtech have been delivering strong results. We think you got a decent setup going into and health care offers defensive characteristics and think the group can certainly show some relative outperformance sahackman we, thanks for joig us. The index is a respectable rally but some on alert for erosion. Take a look of the chart of the number of s p 500 or percentage of s p 500 stocks above their tenday average. It rolled over and shows you raggedness below the surface a similar look this is from newton advisers looking at the percentage of New York Stock Exchange listings above their 200 haf day average. If you look at a relative to a few years ago, only about 52 . Thats not so strong relative to past rallies, you want to make sure that maybe gets up there. A selective market, not the broadest market. New lows and heist on the nasdaq stuff to keep on your radar as we approach potentially new highs. Rick about bonds thanks, mike. If you look at intraday of 10 its really choppy out there as a matter of fact at 10 00 eastern we dropped the weakest july read on Richmond Fed Manufacturing fed index since 2013 but the market came back. Oneweek chart you could see were up towards top of the threeday range and the key resistance around 214. The big star today was the dollar index look at this chart were closing at the best levels since the end of may and it really is a trifecta of strength on the indexes today that helped yields, bertha, nasdaq was right with the hunt with the other two indices today. Yeah, and what were seeing here today is that some of the Earnings Companies that reported earnings, biggest gainers, hasbro hitting an alltime high after better than expected results and biogen better than expected the Semiconductor Index within a hairs breadth of a fresh alltime high. Alltime highs for kle tencorps and Texas Instruments right now is within pennies of closing at an alltime but netflix continues to be the Stranger Thing down for nine Straight Days bob. Two to one advancing to declining stocks cyclical led on strong guidance from United Technologies poor guidance from coke and kimberlyclark the trend may hett a wall. Caterpillar reports this could be a tough one mine something a tough business. Half their business is construction and thats been weaker energy and transportation, tough quarter in asia too. Down a quarter of their business, tough selling American Products in china right now. Nice gains closing off the high, the Dow Jones Industrial up 172 points welcome, everyone to closing bell. Im sara eisen. Im will fred fros wilfredt how the markets closed in order to get a record alltime close looking for 27,359 closed 9 points shy of that. We got a leg up in the afternoon. Positive trade headlines and that played out in terms of the Sector Performance we had industrials and materials at the top, also financials doing well, slight steepening of the yield. I think coke allowed people to reinterpret all the earnings weve already seen put a slightly more positive spin and Goldman Sachs up 2. 5 also high on the dow. I think there is a message from the coke earnings i want to hit that is important for this market and that is it is a better Global Growth environment than feared. Coke had underperformed all year long on this idea that they actually put out kind of a gloomy forecast for the year back in february on Macro Economic concerns James Quincey, the ceo today told us he didnt he saw the storm coming but the storm never came and things look a lot better and raised their revenue guidance and i think that was an Important Message for all of wall street. Earnings set the tone, no question bit trade talks helped kick it into high gear. On global points strong day in asian markets and european markets. Oil prices also up another percent but over 2 for the week as a whole dollar strong up a full half of 1 now, part of that sterling weakness today but the euro was the most pronounced euro down over half of 1 . We are on earnings watch this hour. Slew of Big Name Companies set to report any minute well bring you results as soon as they wheat gem. Our reporters are standing by. Joining us to talk about the market, david kelly with us, chief global strategist at Jpmorgan Funds and ian hamilton is back. First up, though, mike santoli on what you took away from the market action. Obviously resilient the market, s p took back about four days worth of mild losses and obviously were in that oneweek lead up to a fed meeting. Tends to be a slight positive bias headline on trade, vague, nonspecific, repetitive to what we already knew and yet had a positive effect and showed you traders looking the fact theyre going to have a facetoface meeting. Reported elsewhere it would happen next week and struck the market at the right spot at the right time the reaction matters more than what the news stub stance was which told you looking for an excuse to buy. More new lows than highs on 9 nasdaq rotational and big industrials really were too negative on guidance three months ago and now correcting for that and so i think net positive picture. Ian, despite positive trade headlines youre still pocused on the fed more than anything. Yeah, i still continue to think that thats whats driving the rally. People continue to, you know, rotate into the stock market because incrementally it just makes more and more sense from a risk perspective and the fed is what going to keep any china issues in check for the near term and, again, that whole tina argument weve heard for years is what its all about david kelly, weve had a slew of positive earnings and not just earnings, but improved guidance is it too early to say that, you know, maybe wall street got too gloomy on the earnings forecast this season . Not really. We are cracking positive in terms of surprises but you got to look at the levels. Basic lsd market, low single digit to Earnings Growth and i think thats where were going to be all of this year, next year, even if we avoid a recession so the level is great. But actually the growth in earnings is not spectacular. I think this really is about the fed. What weve got is monetary medicine for the markets even though we dont have an economic disease. I think thats what is pushing the market higher. I guess lsd can still lead to new highs, david well, it can induce euphoria or so im told do you think were a stretch then is that your implication. Yes, yeah, it is to some extent if you look at how low bond yields are and the fact that p es are above the average levels as a 50year low in the Unemployment Rate had very high margins this isnt an expensive market there are cheap areas within the market and cheaper overseas and not a lot thats cheap in the broad sectors of the equities market. An alert on Texas Instruments. Its surging in after hours. Josh with the results. Josh sara, Texas Instruments reporting eps of 1. 29 a beat the street was at 1. 22 on revenue 3. 67 billion the street had been looking for 3. 6 billion. Q3 revenue guide given a range of 3. 65 and 3. 95 billion and forecast 3. 8 billion and in terms of their segments the biggest one analog revenue coming in at 2. 5 billion for the quarter. On the call here want to hear a lot more about end markets, automotive and industrial, about china, about 5g and well be on that call. Back to you, guys. Okay, thanks very much, josh. Up 5. 7 . Both lines particular en the eps line and stock, of course, has already done well with the broader chip rebound mike, this suggesting that that rebound was not overdone at all. No, not in the short term although keep in mind we are rallying to highs on the semiconductors with year over year declines in revenue right . So we told you the market is eager i trying to anticipate that true turn back to stronger growth in top line, maybe the markets got it right and right now the Texas Instruments numbers certainly seem to ratify it you have to at least recognize that maybe theres a chance that some names will have proven premature. A beat off low expectations. Relatively low expectations but just saying on absolutely levels and absolutely alltime high in the stock and revenues are lagging the old highs. Core business declined 6 , embedded processing declined 16 . So that read across for texas onto other chip stocks. I mean it certainly is a read across to the entire economy and certainly a good sign. I think to mikes point, its multiple expansion i mean the earnings were pretty good and they were in line it wasnt anything, you know, great but youre going to continue to get multiple expansion as long as theres no other alternative and on top of that now youve got some fiscal stimulus because they just agreed to take off the debt ceiling and spend like drunken sailors again. How do you feel about the chip names, david . Have you missed the move theyre up more than 35 from their 52week lows. Well, i do think its important to distinguish between the business which is not growing fast because of a slow Manufacturing Sector around the world and what the stocks are doing because of very low Interest Rates but i on the fiscal deal lets be clear the longterm trend is bad because ever since, you know, weve been building this deficit to gdp ratio but what happened yesterday they didnt add a ladder but removed a snake all that will happen is Discretionary Spending will grow by 2. 5 , half a percent the following year so isnt a lot of extra fiscal stimulus here but removed a cliff thats been bigger in every year and removed that yesterday good to have an agreement on it but theres no major stimulus involved in disagreement. But there are beneficiaries, arent there, in terms of Industries Like defense. Well, i suppose to some extent but if you look at the overall tract, the growth track in Discretionary Spending isnt that large what really happened we removed the potential for a big decline in federal spending next year which really was never going to happen but i dont want to over just because we talk about big number, the problem is were at high levels of the deficit but the deficit itself is not growing that rapidly and therefore not adding that much stimulus to the economy. But, dave, when does that come back to lucent us you look at earnings today and outlook from Companies Like that, are you encouraged weve got another couple years left of this growth rate well, i think weve got we could have more than a couple of years of slow growth i think the u. S. Economy will decelerate to 2 i think well see that by the end of the week. A good indicator thats whats going on here but the expansion could keep going for quite a while here on the deficit, though, you know, we are spending beyond our means and means we must spend below it tomorrow. We should not be running a deficit of 4 1 2 at good luck with that with this congress. You dont hear austerity from either party dave, trying to figure out how youre positioned based on what youre saying. Low single digit growth in earnings fed focused market low growth where are you . The problem, of course, is the cash yields are about to turn negative in real terms again so you have to be in longterm investments. I think within the u. S. Stock market look at sectors which are genuinely cheap based on a valuations becauseat some stag you will have a big Market Correction and when this market is ruled by nightmares rather than by dreams, thats when valuations count and there are big discrepancies in valuations which i think Portfolio Managers can see the market is kind of ignoring that right now but i think there will be opportunities later when things get worse. Were going to dive into which ones but first an earnings alert on visa. Deirdre sosa after hours beating on the bottom line by five cents adjusted eps coming in at 1. 37 versus 1. 32 which is what the street was expecting revenue at appoint 84 billion versus 5. 7 billion forecast as i mentioned. The stock is trading up just slightly but, remember, that this is a stock that has risen nearly 40 year to date. So it really was priced for perfection going into this still lagging its arch rival mastercard which surged nearly 50 . Purchase volume growth, an indication of card spending and thus the economy, payment volume was up 9 adjusting for currency year over year in the quarter. Guidance also looking good full year net Revenue Growth in the low double digits and eps guidance looking strong above expectations on the call, guys which kicks off shortly the street will want to hear about executives Economic Outlook how it is moving beyond traditional payments and perhaps libra whether kelly sees that as a disrupter. Im sure we will hear comments about libra thanks, dei. 2. 7 billion capital returned to shareholders mike this, stock has been very, very strong. Fast, steady, low drama growth its just serving a huge market. Its a virtual duopoly so i think thats why it gets so much credit 30 times earnings is a very high hurdle but its a great Business Model and the entire world knows it so its one of those things where its not surprising its not moving much on results its surprising it can move 30 on a year to date basis when not much changes. The amazing thing for credit cards even when you have apple launching a new system with a bank thats not offered this before, Goldman Sachs, whats it based on, a credit card. The backbone of all the new payment systems. Because of that as deidre points out, julia has numbers snap beating expectations on every metric the company reporting stronger than expected revenue of 388 million versus expectations of 359. 7 million. Earnings were better than expected as well the company reporting a loss of 6 Cents Per Share. Thats a narrower loss and the ten cent per share loss and better than the 14 cent per share loss in a year ago quarter and that daily active user number beating expectations coming in at 203 daily active users thats 13 more than the prior quarter and higher than expectations of 192 million. So looking across the different regions, they added 3 million users in north america, so thats better than expected. Also a big beat in terms of users around the rest of the world. Guidance also strong, revenue guidance higher than expected for the Third Quarter as is guidance for operating income. So looks like some great trends here and well continue to dig through it and be back to you with more. I want to note the stock is up 8 right now and whats particularly notable before earnings today is gained 5 so a significant gains day. Back over to you. Wall street had sniffed out that improvement and they certainly got it julia, thank you beyond the shrinking bosses and the, what, almost 50 Revenue Growth its the daily user growth up 7 to 203 million. Second quarter in a row we have seen that which is important psychologically. Its sort of getting understood, i think, or believed on the street that obviously this is its got a place in the industry i think it reminds me a ton of Twitter Twitter went from a postipo of the 70s into the teens and slowly you got belief out of that the stock, 275 snap in less than two years and now revived. Listen, now with this move as well its up 180 year to date so fantastic turnaround. Dont want to put scorn on that but clearly lossmaking and still below the ipo price. 20 billion market value. Got another one, chipotle and kate has the numbers wilf, a strong q2 for chipotle eps 399 adjusted analysts looking for 3. 76 revenue is 1. 43 billion that is also a slight beat samestore sales a huge number double digits up 10 for q2. Analysts were expecting an increase of 8. 3 the company also had another really big digital number here digital up 99. 1 accounting for over 18 of sales. The company said they opened 20 new restaurants in the quarter closed one restaurant margins just over 20 . Thats about right in line they also raised their guidance high single digit comps growth for the full year, 2019 as can you see. The stock up over 4 the Conference Call kicks off at 4 30 well bring you any headlines we get after that. 100 digital growth another quarter too another example of a company that has run up so much this year what, 70 and is getting after hours its actually an alltime high which i dont think a lot of people thought it would ever see that 2015 high right before all the issues. I also say 100 digital growth which is now i think kate said 19 of total which is if it can keep that going its a couple years away. It gets the benefit of being late to a lot of things. They Just Launched rewards so get the benefit of already operating well in the core business and people buying back in and paying a huge multiple for the growth and now they have the kicker of theyre going to revamp the business according to a lot of these technologies. Digital offering works very smoothly i can attest to it. David kelly, so we got visa, weve got chipotle weve got snap all of them with tremendous runups into these earnings and all of them having some nice moves here higher after hours. What does that tell you. Lsd. Well, wilf, some of these companies are doing a little better than low Single Digits although some obviously have low negative digits but the bigger point is the u. S. Consumer is doing pretty well and you can see that in some of these areas here things are doing pretty well i still think were talking about a slow Global Economy and whats going on here, very low Interest Rates are just helping Capital Markets or helping stocks, theyre helping bonds and real estate so what were seeing is a growth in Financial Assets relative to the economy and that can go on for a long time and i think it will continue this year but at some point when people get scared about the economy itself, then that does mean you have a little further to fall so i think investors oath to be careful here these are good, you know, these are Companies Beating expectations but the actual raw numbers arent that great in terms of the growth rate and this is fundamentally slow growing economy both in terms of Economic Growth and earnings. David, just a quick final question you guys altering your expectations of percentage chance of no deal brexit now that Boris Johnson is in at number 10 . Well, i think that i think he no, i think were still going to get a deal. I think that first of all Boris Johnson will try mightily to get a deal and hell accept, you know, perhaps less alteration than people think to theresa mays deal to get that i dont know if that will work out or not. I dont think the europeans want to negotiate that much but if he wants to go ahead with a no deal brexit hell run into a firestorm with the parliament and could end up with a british general election because of that so ultimately the british want to avoid a no deal brexit and i suspect they will. Okay. David, thanks very much. Ian winer, thanks also for joining us. Thank you. Up next snap keeps surging after reporting strong results as we discussed and well have two analysts join us with their take driverless cars. All ground personnel. Or trips to mars. 4. 95. Delivery drones or the latest phones. 4. 95. No matter what you trade, at fidelity its just 4. 95 per online u. S. Equity trade. No matter what you trade, at fidelity stand up if you are first stand up if youre a mother. If you are actively deployed, a veteran, or youre in a military family, please stand. I will tell you this, Southern New Hampshire university can change the whole trajectory of your life. At comcast, we didnt build the nations largest gigspeed network just to make businesses run faster. We built it to help them go beyond. Because beyond risk. Welcome to the neighborhood, guys. There is reward. Beyond work and life. Who else could he be . There is the moment. Beyond technology. There is human ingenuity. Every day, comcast business is helping businesses go beyond the expected, to do the extraordinary. Take your business beyond. Welcome back its been a very busy after Hours Earnings session texas instrument, visa, chipotle and snap all beating on both lines. Visa is now slightly trading lower though lets get back to julia for more on snap which was surging last time we looked wilf, it continues to surge the company posting its prepared remarks for the Earnings Call saying they expect the underlying growth trend in User Engagement to continue in q4 guiding for q3 they expect daily active users of 205 million to 207 million noting this is a 10 to 11 growth year over year and thats acceleration in terms of percentage growth from q2 to 3 and two key numbers that show how the companys investment in content is working audience as well as engagement for their discover section back to you. Julia, thank you. Thats four for four on the beats after hours. For more lets bring in ali from morni morningstar and ed lee is it user growth that wall street is i think user growth clearly they stemmed the bleeding from a few quarters ago and are doing better and wanted to point out what julia was getting at discover platform is where theyre shining because ultimately, you know, in order to generate the added ad dollars you need people to stick around and look at stuff beyond snapping photos and accepting to each other thats the key measure i think from what im seeing here, audience watching content has grown 35 year over year thats pretty significant. So once upon a time snap liked to call itself a camera company. Its a Media Company not during the ipo race. Whats your take, ali i think theyre impressive. The dau growth was certainly imblessive and, of course, as you can see by the reaction pretty surprising. That growth acceleration may not last long. Their guidance is pretty impressive but the reason their growth may not accelerate that long, mainly it was driven by the android revamp so thats not going to continue and, of course, you know, dont forget these guys main competitor is Facebooks Instagram and their User Base Continues to grow too. But overall very positive. Ed, yesterday had this question and ive been wondering about the proliferation of tiktok, how fast its grown. Hes obsessed with it. Im obsessed with it as a phenomenon i absolutely am. If a competitor can come out of nowhere that fast and guetta popular does it ratify the snap approach or mean these guys dont have a lock . I think tiktok is a great exam toll bring up because of how fast it came out of nowhere and quickly a lot adopted it especially the very people that snap and also instagram have claimed which is young people so i think the fact that a new social media platform can come out of nowhere and get popular shows you the overhang, shows you sort of the some of the risks to being in this space generally at the same time again ill point to the content play because if you have content, people will come back regularly speaking, thats what theyll stick with, right . That and plus their friends sending messages so you need to program it right now tiktok is popular because its new and designed around programming youre uploading these short videos, you know, tuned to music. Its a really nifty gimmick but, again, its like you cant youre always relying on your user base to program it. Where are you on valuation . On valuation going into earnings we had it at 14 a share which weve had it for over 14 months the stock has performed well so well have to review our numbers and look to see what adjustments may be needed but going back to what your other guest was saying, i do think that another thing to look at is the already established wide user base that its main competitor instagram or lets say facebook already has which is over 2 billion. So certainly the newcomers, we dont think, will be that much of a threat as facebook with 2 billion users. Ali mogharabi and ed lee, thank you. Iplechot well discuss and how you should trade the stock coming up. Welcome back earnings alert on irobot hey, wilf thats right missing on the top line, the stock down 15 blaming the u. S. china trade war and new tariffs saying that will restrain the companys domestic growth hurting the second half of 2019. The company dropping its revenue estimates by about 80 million operating income expectations cut by about 20 million and the big eps cut with a midpoint of the range coming down 50 crepes a share. Back to you guys eric, thank you so much down some 15 . One of the few disappointments from earnings. Breaking the streak we have a news alert on u. P. S. Frank with the detail. U. P. S. Will offer sevenday service to residential and business customers starting on january 1st. Fedex making that same move in may. U. P. S. Announcing a partnership with Michaels Craft stores expanding their Access Point Network to 21,000 locations including css and advanced auto parts to capitalize on the market u. P. S. Making a drone delivery announcement saying its applied for faa approval to fly over people at nighttime and even out of sight of the operator major restrictions there u. P. S. Is testing medical deliveries in North Carolina and says it will focus on drones for through 2020 estimating there is a 3 billion to 5 billion market in the u. S. For medical deliveries ecommerce deliveries from droughnss is years away. Time for a cnbc news update with sue. Heres whats happening. By a 972 vote, the senate has passed a bill to extend authorization for the 9 11 Victims Compensation fund through the year 2092. That bill which passed in the house earlier this month now goes to President Trump for his expected signature on friday a group of democratic lawmakers blasting Senate Majority leader Mitch Mcconnell for refusing to bring legislation to the floor to protect the 2020 election against foreign meddling when it comes to Election Security, republican leader Mitch Mcconnell is not afraid of the russians hes afraid of the United States senate a Republican Controlled Senate hes afraid to bring any measure to the floor on Election Security from what might happen on the floor of the United States senate. And a rare tornado touched down on cape cod today and it left a mess behind for homeowners and businesses. There were no immediate reports of any injuries from the storm although guests at the cape sands inn got quite a scare when a section of the roof was ripped off. Mother nature. Thats the news update this hour, guys ill send it back downtown to you, sara, wilf. Sue, thanks up next a csuite shakeup at Td Ameritrade outgoing ceo tim hockey here to explain why he will step down in february. As we head to break another checkin on the afterHours Earnings movers. Much more to come after the short break. Announcer cnbc newsup date sponsored by comcast business. Beyond fast. Odays expenses. While helping plan, invest and protect for the future. So theyll be okay . I think theyll be fine. Voya. Helping you to and through retirement. Its been a busy afterhours session. Big stock moves after several quarterly reports just to catch you up on where we stand Texas Instruments, visa, chipotle, all beating wall street earnings estimates although visa shares are lower after missing payment volume expectations, initially a little higher snap posting a smaller than expected loss thanks to strong daily active user growth topping 200 million. That stock which was already up, what, more than 150 so far this year jumping another almost 12 after hours. Similar story for visa trading already near a record high chipotle had a very strong runup into results as well so mostly impressive. Moving on to Td Ameritrade which beat earnings estimates after the bell yesterday but thats not what caught the streets attention. President and ceo tim hockey announcing hell leave the company in february of 2020. Tim hockey joins us for a first on cnbc interview. Welcome, tim this caught a lot of people off guard. You havent been there very long why are you leaving. Well, its a nice intro, thanks very much listen, these are conversations that boards have over the time with their management and in the last little while weve been having our quarterly board meetings and after lots of discussion about the way forward and the decision on how to best move forward we decided it was time to part ways and so i announced yesterday that i would be stepping down and that the board would immediately start searching for a new ceo and i would be remaining in the seat until either the ceo comes on board or until february of 2020 so ill be here next quarter to talk about earnings. Some people are reading into this on wall street that it could have implications for the firms m a youve been integrating the scott trade deal anything to read into here i dont think theres anything to read in it as i said theres a bunch of reasons this is not about. Its not about me deciding to spend more time with my family although i will say my wife is thrilled about that being a nice byproduct its not about my health its not about many of the things you often see in these changes. This is no one thing its a culmination of a lot of conversations with my board about the best way forward im glad you mentioned the scott trade deal something that my team and i are proud of and it does allude to the fact there is continuing consolidation in our industry but thats not what this is about. Its about putting the next leader in for the right next phase of Td Ameritrade. Tim, though, would that represent a rethink of the strategy i mean if it obviously is not about all those outside factors or m a, anything you would anticipate would change in terms of approach of the business whether its, you know, technology approach, focus on active traders, any of those components of the strategy its a great question, mike, in fact, the board and i discussed exactly that it is a Winning Strategy and its a board approved strategy so my team and i continue to or will continue to move that agenda forward until my last day and so were actually quite pleased with it. Its actually winning. We had the benefit of reporting this last quarter after our competitors and so we were quite pleased with our relative performance and our market share gains in this quarter both year over year and quarter. We think well stay the course and we think well hopefully improve our advancement against the competition. Yeah, you have outperformed your competitor, still the stock is down over the last 12 months and everybody else is, you know, Charles Schwab down double digits etrade, i guess fee pressures continue to hurt this industry how do you see growth prospecting Going Forward. I think what youre see in terms of the relative performance and absolute performance of our sector more a reflection of the yield curve. As you know much of what the earnings that come in for Online Brokers and Wealth Managers generally is earnings on cash and when you had such a dramatic shift in the yield curve thats been reflected in the stock prices were not happy about the absolute level of performance but were certainly happy about the relative level of performance. And what would you say, tim, at the moment about just the feel from clients in general right now . I mean it seems like, you know, daily average trades have not really been growing on a year over year basis, at least not recently what about engagement of customers with the markets the last quarter was certainly slow its always a slow Second Quarter. Its probably tax season ourselves and our competitors saw the same phenomenon which is weak inflow, money in motion in april and think that was actually a byproduct of the effects of the tax changes that might have caught investors off guard. But after that may and june got stronger and stronger. The trading levels are a bit muted. Obviously the vix is down and all are scratching our heads and youre in this every day about why there isnt more volatility with the news coming out of the strait of hormuz it seems to have been more recently. Wanted to ask you about this idea thats being floated certainly from certain Democratic Candidates like Bernie Sanders on a financial transaction tax. Is that realistic ask what would it do for trading volumes if we saw someone go through with that if they got elected . We think that is not a wise strategy and certainly is one thats topical there have been countries in europe that have tried this over the last number of decades and theyve had quite dramatic impacts on things like trading levels if you think about the cost of the trade to a Retail Investor is anywhere between 5 and 8 call it in the marketplace, if you actually add in what is proposed as a transaction tax, the cost of that trade can be, you know, well over 100 if you actually factor in the cost of the tax against the absolute size of our average trade so it is not a small amount. It might look small in basis points but when you multiply it by the size of the trade its a big impact on retail consumers. Tim hockey, thank you for joining us. Thanks for having me. See you next quarter. Off earnings, the out going now ceo of Td Ameritrade up next, shares of chipotle, higher after just reporting results and analysts reaction to that straight ahead. Later earnings mania what to expect from boeing, facebook, tesla and more when closing bell returns lively music [student] my degree from snhu has helped me tremendously. The flexible class schedules allow me to run my catering business and be a mom and parent. Breakthrough at snhu. Edu. Breaking news out of washington ylan mui has details dow jones is reporting that there is a antitrust review into big tech firms that could encompass google, facebook, amazon and apple now, previously the department of justice and the ftc had agreed to splitting up some of these companies as they began their inquiries into whether their dominance in the marketplaces was keeping out competitors. The department of justice had taken over jurisdiction for google and for apple but now it seems that their review is going to encompass all of big tech, according to dow jones review is designed to go above and beyond the recent plans for scrutinizing the tech sector that were crafted by the ftc and that the focus of this inquiry will be on the size and might have the firms and how theyve expanded their reach into additional businesses and how theyve leveraged the power of having Large Networks of users, so, again, the department of justice according to dow jones now beginning a very broad antitrust inquiry into big tech. Back over to you was this expected at all, ylan there were some rumblings this could be coming down the pike or perhaps some sort of announcement we knew the department of justice was looking into google and knew it was looking into apple. The question is, is this going to be even bigger than that and how is that going to overlap with the ftcs efforts i suspect that all of this will only amount to even more scrutiny of these Big Tech Companies in washington and that youre going to see, perhaps, some turf battles in that process. Are the Companies Named in the report that the doj is looking into specifically . What dow jones has reported so far is that the dojs inquiry is into dominant tech platforms so one assumes, of course, that would encompass all of these big players but we will see what that inquiry actually finds. Now, its important to note they did not say that this is an investigation. They said that this is a review and so i think that will be important Going Forward in terms of how significant the scope of potential action could be. All right, ylan, thank i. Seeing declines across the board. Facebook, amazon, apple less so, google more so but less than 2 . I mean, are you surprised were not seeing bigger declines now that the doj is looking more seriously at that. I wouldnt say surprised. Its understandable we get this reflex move. Facebook especially, amazon certainly so its sort of a step back. Do investors have no fear of this i think dough meant know ho quantify it. I think the things first of all there is a Chilling Effect on additional acquisitions if you thought they had to be aggressive, probably not going to happen and the bundling of products and services. Amazon privileging its own, you know, its own inhouse brands or Something Like that. Google, you know, if i do a mobile search on a movie and google, google wants to give me the google rundown as opposed to some third party, imdb owned by amazon thats what i wonder about google wasnt mentioned in the list of names this is just additional reports but one would imagine it might be in the spotlight as well. For sure. Now, chipotle stock hitting an alltime high in afterhours trading. After reporting a beat on earnings and samestore sales its up about 4 for more steven anderson, consumer analyst and good evening to you fantastic numbers, it seem, particularly on the digital side. Great numbers and drilling a little deep are into the digital side that accounts for now 18 of the total sales and for some perspective that was only 13 of sales at the end of 2018 so big growth in that ren view i would call chipotle 2. 0. Thats probably one of the two things that new ceo relatively new ceo Brian Nichols in addition to restoring the companys culture. How do you value this stock right now . Right now i would say that the companys valuation is a little stretch at this point when you consider the companys margins running right around 21 and if you figure the peak before the e. Coli crisis in 2015, the stock was generally generating 26 , 27 restaurant level margins with similar valuations at this point, i would not be surprised to see the stock maybe start to pull back but the company did give upside guidance to same restaurant sales of high Single Digits for the full year however we think thats where the street was estimating comps for the full year stephen anderson, thank you thank you up next on the show the first of the f. A. N. G. S facebooks results on the docket three key things you need to watch in that report welcome back lets have another check on big tech, facebook, amazon, appal and pta bet moving lower on a report from the wall street journal, but the doj will open an antitrust review focusing on whether they harm online lets send it to mike santoli, final dashboard of the day. I googled falling style, i saw it was toy story. Did you google this i didnt. Im a simple retired investor on a pension, said roth from godfather 2 who was a gangster great movie best ever. Some of those Pension Funds are struggling a little bit. This is an index of the percentage of pensions that are funded or the percentage of funded status among large Corporate Pensions it is obviously down off the highs. It is here in the sort of high 80 . Now, why does this matter to the markets . This is because of lower bond yields largely, because it lowers expected returns in the large fixed income portfolios, but a lot of Companies Taking advantage of the bond market like fedex yesterday, so they could put a billion dollars in their underfunded pension plan why does it make sense for fedex . If you are underfunded for a certain degree the Pension Benefit Guarantee Corporation puts pa fee of 4 point something percent on the under fundedness. You can pay 3 if you are high like fedex and fund the pension and you are saving on different fronts and you are putting the money into bonds this is one of the factors i think is creating or encouraging the insatiable demand for yield products everywhere. The lower yields go, the more yield type stuff these funds have to buy and it is a big part of the dynamic. How tight are to have could nacould how tight are the covenants . I believe it is set by the boards i believe unfortunately, the returns are still too high i think most are assuming something close to 7 longterm annual returns when you own a lot of bonds at these yield levels you are probably not going to get there without taking a bunch of risk. Mike, thank you very much the wall street look ahead, the key reports every investor nights to have an eye on when we ome back. Future. Rivaled network to wor. The United States Postal Service makes more ecommerce deliveries to homes than anyone else in the country. When a plan stops being a plan and gets set into motion. Todays merrill can help you get there with the people, tools, and personalized advice to help turn your ambitions into action. What would you like the power to do . Whai tell clients, etfs can follow an index, but which ones target your goals . Its not about quantity. Its about quality. No trendy stuff. I want etfs backed by research. Is it built for the longterm . My reputation depends on it. Flexshares etfs are designed and managed around investor objectives. So you can advise with confidence. Before investing, consider the Funds Investment objectives, risks, charges and expenses. Go to flexshares. Com for a prospectus containing this information. Read it carefully. The department of justice now officially announcing it is reviewing the practices of online platforms, saying in a press release just moments ago, quote, the review focuses on practices that create or maintain structural impediments to greater competition and user benefits it does not name any names specifically it says it is looking at social media, retail and Online Search services lets bring in webb bush managing director dan ives on the cnbc news line dan, what do you do if you are a shareholder of a facebook, an amazon, an alphabet or google, all moving lower after headlines on this . This is no longer background noise. It made it more of a real threat with the beltway looking at big tech most threatened the amazon and google, apple, but i think it is not just rhetoric within the beltway is shown by this. Do you think microsoft will be under threat also i think microsoft, you know, they obviously have those scars in terms of going through this in the doj, you know, many years ago. I think theyre least threatened here, which i think continues to be in the eyes of investors a good thing for microsoft i think most exposed is amazon and facebook as well as google, and apple obviously is in there as well as we saw last week with the hearings look, this is something where it is going to be more noise but ultimately it makes it now something from a risk perspective it is going to start to get factored into the stocks in terms of what could happen. I mean amazon is down a percent after hours. It was down a little more than that just a minute ago when you say threatened, what do you mean what are we talking about here fines, breakups, a change in bus practices . I mean europe has been doing this for a while and they result in fines and investors just brush it off. Yes ultimately we think when it is all said and done fines or tweaks to Business Models could be the result. But the bigger worry is from the antitrust perspective, how significantly they press these companies in terms of going down the path thats why i think in the eyes of investors, the ones most focused on facebook, amazon, it is most of a fine. It creates a risk for the names and something they have to manage, especially going through the beltway and into 2020 election. Dan, thanks for joining us. Thank you now to our wall street look ahead. Another big day for earnings tomorrow cap, boeing and facebook are reporting. What can we expect from caterpillar . In may the industrial giant told shareholders it expects tariffs to cost the company between 250 and 350 million this year, but with no trade deal in sight the street will want to know if it is sticking to these range or are the costs rising further and if price increases are keeping margins steady caterpillar which makes everything from engines to tractors says china represents only 5 to 10 of the revenue, so commentary on china will be key. Back to you. Thank you boeing set to report before the bell tomorrow. Phil lebeau has a preview. Sarah, some of the news came out last week with a warning on boeing, but remember most of the news will be focused on 737 max, not only on the impact on the Second Quarter but also on the impact on the company. There was the 4. 9 billion charge they will take in the Second Quarter and a lot of questions on ramping up production and delivery. Remember, they have more than 160 of the planes that are parked that ultimately need to be delivered guys, the numbers come before the bell tomorrow morning. Phil, thank you facebook results that will be our headliner tomorrow right now at this time. Julia boorstin has a preview for us julia. Thats absolutely right, sarah. After a quarter of negative headlines three issues are in focus. First, how much will Revenue Growth slow. We are looking to see the impact of the company shift away from the news feed and a search for new revenue. Second, user growth and engagement are in focus, especially u. S. Activity users which barely budged in two years. Third, investors are watching for facebooks expense outlook as the Company Faces a range of regulatory challenges including the latest from the doj. Back to you. Thank you we are out of time here. That does it for closing bell. Fast money picks it up right now. Fast money starts right now. Live from the Nasdaq Market site overlooking new york citys time swear im million. Tim seymour, karen finerman, marc tepper and guy adami are on the desk check out the after hour action. Chipotle, snap and Texas Instruments on the move. We will break down the headlines for you. Ups is upping the delivery game, what the Company Announced that could deliver big time for investors. To infinity and beyond, beyond meat hitting another record high in todays session can anything stop the stock . We are digging in. We begin with breaking news out of washington, the Justice Department launching a