Decade, peloton tracking lower thats straight ahead. Stephanie is back. Some encouraging signs on the economy particularly in housing. We talk about this endlessly about the consumer being strong, manufacturing being weak really benefiting from low Interest Rates home sales at a 32 month high. Thats impressive. The other thing is nasdaq is up. This is where the momentum is in our economy. People are wondersing about the consumer i think its a very good sign. I own dr horton, home depot, stanley, black and decker. Im in this trade for sure dr horton is the home builder. We were talking about valuations youre talking about 12 times earnings, one and a half times book value i think theres a lot of pent up demand especially if rates stay low. You have the whole new generation, millennials starting to buy more. S p and dow down 0. 1 russell and nasdaq down more lets go to the ipos we went to peloton wild week for Companies Looking to go public and some names have already recently hit the market. Breaking moments ago adam w newman after driving the company down a rocky road. All these moves we were preparing for an ipo down the road now its very unlikely to happen we want some momentum we think we generally left something on the table in the operation. My cfo said we dont want to be dollar smart we hope the price is up. It did take a while to get open normally you wouldnt hear this when the stock opened lower. You per stock lost a third of its value since its debut. Markets want growth but not at any cost they want discipline growth lets get straight to our reporters covering all angles of the ipo landscape. P peloton, hitting lows in the sector the company had a range of 26 to 29 dollars priced at the top of the range managed to raise 1. 8 billion but never hit that mark and opened lower it becomes with that slide here today now down off nearly 14 . The second worst debut this year, first day of trading after smile direct which debuted just two weeks ago, that stock, by the way is now off about 38 since its debut. One of the worst performers among the unicorns which also managed to raise more than a billion dollars in its ipo back over to you so is that a bad marriage overall when its down 38 certainly doesnt make for a very sweet honeymoon if were going to continue to beat that yeah. No divorce yet. Still time to turn around. Something to fight for. Peloton around 25 a share. Cnbc Parent Company comcast universal, Nbc Universal is an investor in peloton. Is it Company Specific or is something broken with the ipo market it speaks to risk nobody wants these kind of companies that wont make money. This company wont make money until 2023 growth is there. I have no doubt. The total market could be 92 million subscribers. Thats very real this valuation making no money, i think theres a lot of question marks obviously these other deals have proven the same. I see it slightly the other way. Despite the headlines, this ipo has got away successfully. Raising 1 billion. They didnt have to change their structure. Yes its down 13 on day one but the point being for the company its got a way, a pretty do you have environment ipo with a steep valuation. The bankers will be pleased. Investors are not pleased i said this a lot to you guys both ipos take a while to settle out especially when they break price. Let it settle. The Growth Market is there so theres got to be a point of valuation where it makes sense obviously didnt make sense at 29 peloton just the latest name to run into a market road block. Bob pisani has more. Reporter the peloton ipo is part of a really larger problem. Skyhigh valuations and money losing companies the public is essentially saying here the prices for ipos are too hot even if the companies are built around sounds concepts so why is this happening a lot of people are pointing to the bankers. Essentially being more loyal to private investors than public buyers but the private valuations are way out of sync what the public is willing to pay. Its now at the lowest since february the other stats of 120 ipos this year, 22 broke their ipo price on the first day of trade. Pretty high. Half of trading below their initial price. This is one example. Datadog. Up 26 when it went public now its down 6 this week this is very typical of a lot of software poiz. The company got 29 but the bank suffered some Reputational Risk when you have a decline like this on the first day of trading. Thank you very much lets the turn to you per which is trading well below its may ipo price. Reporter perhaps you can call uber the elephant unicorn in the room. Biggest ipo of the year and most highprofile shares have languished todays product event was a story how it will touch every part of transportation investors not buying i asked the ceo cadara khosrowshahi why you have to let a couple of quarters go. Markets are definitely sending a signal being more risk averse and there is an appropriate amount to invest to grow but markets definitely in this kind of an environment that is getting more risky, more uncertain, president ial tweets going out were getting the message. Reporter guys, i also asked him what happens if three years ago if uber still isnt profitable he wouldnt say where the company would scale back he only told us he would be very disappointed back to you. Great interview. Thanks very much for that. For more on the moods in recent ipos lets bring in president of j and p securities mark great to speak with you is this a successful ipo for the company or given its trading down today its a blow well, i think they are going to think it was successful to get the kind of capital that they needed. They dont want to see it trade below price. There will be a lot of people, companies, buyers that bought it on the ipo who will have second thoughts hard to judge six hours in trading what people think. This is not a great thing for everybody. They want to see this thing trade up and its not. Is there a Common Thread here, peloton, uber, lyft, is it a pricing issue in the private kmarkt how do you characterize it its a combination of things. Historically the last round is just a benchmark for where the next price is. The next price is always higher. We havent had a great one like you described several companies experiencing lower price i havent seen a tempering in the private market yet well see if that happens over the next three to six months the bigger issue is where these valuations are coming in and what is the public willing to pay information. Right now its lower than the last round and we have to recalibrate and i expect us to do that. Could they have done more damage than it has so far. Do you see that as one Company Specific issue because peloton did manage to get away and ipo investors bought the ipo towards the top end of the range the more instances we have where there are companies that trade below their price, well have more emphasis on whether that does more damage. I think one is not a good sample size well have some over the next three or four months people will accelerate some ipo timelines, surprisingly given whats going on in the political arena. Youll get another couple of examples of unicorn to want to go public this year versus 2020. Thats when you start to make broader assessments of the market but hard to do with a small sample size we have. So far datadog successful. Lets wait to have more sample and then well know more you said you like to wait a few quarters are any of the valuations looking enticing now the only one is escaler thats because i believe in the cloud story and i believe they have a unique franchise. And theres not a lot of competition to them. In what they do specifically but even that is trading 11 times revenue and thats still expensive for someone like me who is more of a value for a portfolio manager. What do you make of the fact they got away with the two class share Structure Despite issues following the rework issues . I think this is a company that had a lot of momentum going into the ipo there clearly were buyers around the pricing, and bankers, obviously, who priced writ they did, had enough of an audience that didnt care enough about the duel class structure the more examples you have stocks break price and duel class structure comes up this will be a waning this is an issue for some people thats why the stock is suffering today. I mean finally, mark, do you see this at all as indicative of where we are in the cycle, the fact that we couldnt even get out of the guest and its kind of been spiraling losses in terms of public investors for money losing companies listen, we clearly have had a year with more unicorns this year pricing ipos than before. I think its a very special example. I think it will be a great case study for a very, very long time it is later in the cycle, just by arithmetic. So many more companies are staying private that potentially with the Public Markets i hasten to make a big determination without a couple of other examples i dont think ate valid sample size i think there will be some Great Companies that test the market in the next three or four months so lets have a conversation after that thank you very much tensions ramping up in washington as the acting director of National Intelligence was the on capitol hill over a whistleblower complaint against the president. We go washington for the latest. Reporter dni josef maguire is still briefing senators in a closed door session here on capitol hill he already spent three hours in a public hearing this morning before the House Intelligence Committee where he fielded some pointed questions from lawmakers over why he didnt hand over the whistleblower complaint sooner. Why, director, when the president called the whistleblower a political hack and suggested that he or she might be disloyal to the country, why did you remain silent when i saw that i anticipated having to sit in front of a subcommittee some time to discuss it reporter maguire argued he didnt have the authority to turn over the complaint and the complaint didnt rise to the Legal Definition of an urgent matter were now hearing from both democrats and republicans who say they want to protect the whistleblower but want to hear from him or her directly the questions and the reactions is it still dividing quite clearly down partisan lines . Reporter yes and no. There was an interesting moment in which one republican said that the comments by the president or the rough transcript of the call seemed to be inappropriate were hearing from some Senate Republicans who say that they are troubled by what they know so far, that they feel like the president s comments should not have included joe biden when he spoke to the leader of ukraine so there is on the senate side some hesitation in going too far in defending the president but certainly republicans, both in the house and senate say that impeachment is a bridge too far. Thank you very much we are 36 points on the dow with 45 minutes left of trade. Shares of carnival sinking after slashing its profit forecast well speak with the Ceo Arnold Donald about his outlook an exclusive interview with carol ghosn. Final reading of Second Quarter gdp coming in at 2 . Initial jobless claims rising by 3 the,000 to 213,000 last week stay with us closing bell will be right back dow down 38. I get it all the time. Have you lost weight . Of course i have ever since i started renting from national. Because national lets me lose the wait at the counter. And choose any car in the aisle. And i dont wait when i return, thanks to drop go. At national, i can lose the wait. And keep it off. Looking good, patrick. I know. vo go national. Go like a pro. 42 minutes left of trade lets go toe mike santoli. Heres what we got. First of all in lower gear thats what corporate profits have been operating in well take a look at that trend as we come towards the low of the quarter. Feeling the burn looking at other fitness and wellness related stocks. A mixed picture for a handful of stocks that exist beyond pell the tennessee. Skipping a beat, looking at the market today but also a day in the past where we got a very fleeting market scare. Then mind over matter. Little bit of test of the sentiment of the market gauge, different aspects of that. Look at the trend here of earnings forecast for 2019 and 2020 according to facts. This is the consensus for the s p 500. Very steady downturn heres whats interesting one year ago people thought they were going to be 180 or thereabouts for the year 2019. Right now analysts say it will be about 180 for next year. Clearly we pushed ahead when well have revival of Earnings Growth we had the flattening estimate for 2019 in the last couple of months the down scaling of expectations has moderateed a little bit. Companies typically will beat this by a few percent. This is the s p 500 against the trend in this quarters consensus earnings forecast. Here you see, heres the earnings forecast sliding down 3 in the last few months. S p 500 has held there you know why when youre in a lower gear you have to pedal faster and lower yields enabled the market to stay aloft as well as early next year they will be in revival in profit growth. Thats q3 earnings estimates. Just q3 the market is not today priced off of this particular quarters earnings i was going to say that hasnt slipped much but in the near future. Mike, thank you. After the break one firm out with a bearish note on apple saying its valuation no longer looks attractive President Trump highlighting one chip company in his u. N. Speech this week micron produces memory chips used in countless electronics. Through advance chinese five Year Economic plan, a Company Owned by the Chinese State allegedly stole microns designs. Well get Earnings Results from micron after the bell and well see if china trade comes up in the release. Stay with us were back in a couple of minutes. Not again. Limu thats your reflection. Only pay for what you need. Liberty, liberty, liberty, liberty frstill, we never stoppedss wmaking it stronger. E. Faster. Smarter. Because to be the best, is to never ever stop making it better. The 2020 cclass family. Lease the c 300 sedan for just 429 a month at your local mercedesbenz dealer. Mercedesbenz. The best or nothing. What do advisors look for dont just track an index, help me meet a clients need. Is the fund built to sell or built to last . Etfs are only part of a portfolio. So make it easy to explain. Give me a quality fund that helps me get clients closer to their goals. 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. Liberty mutual customizes your car insurance, so you only pay for what you need. I wish i could shake your hand. Granted. Only pay for what you need. Liberty. Liberty. Liberty. Liberty. Servicenow put our this changes everything. Youre right sir. Everything. No not everything, i mean youre still blatantly sucking up to me gary. Brilliantly observed, sir. Always three steps ahead. Six steps ahead. Sixteen. So many steps. You done . A million steps ahead. Servicenow. Works for you. Welcome back. Brokers are getting hit that Interactive Brokers is offering a Light Commission that offer unlimited trades on u. S. Stocks and etf. Td ameritrade hit session lows good for investors to trade. This is such a hard Group Trading group in general very high data you need a steep yield curve everything is going wrong. Now you have pricing pressure. Avoid. Absolutely avoid they are not cheap time now for word on the street. Starting with keybanc, apples valuation no longer attractive keybanc maintaining a sector rate waiting cowen naming target on its conviction buy it used target as best in class merchant raising its price tar get 130 a share from 120 a share. Also positive on walmart citigroup calling cigna one of the most compelling stocks the firm sees a potential 40 upside for the stock in the next 18 to 24 months. What do you think about that very positive. Cigna is a great company. One of the best ceos trade at eight times earnings. The problem is if Elizabeth Warren continues with momentum and you have medicare for all fears and every single day the hmos have been going down. The ceo is buying stock himself. The Health Care Sector is challenge. What about the call onapple and the valuation has run up despite some trends including user growth going down analyst missed 38 move its up that much year valuation is trading at 17 times. Not as cheep as it used to be. You have a new iphone cycle, 5g and services added last week. I actually think this stock is very defensive it acts for defensive than some of the software and i have been putting more money into apple. That point knows services which is talked about so much and big recent launch doesnt increase the earnings in the next couple of years i think they said 12 times theres other companies out there in the tech space which you have a higher top line growth other Technology Companies have higher Revenue Growth but i disagree with that analysis. If they continue to grow double digits in services, say 13 to 17 thats a higher margin business and i think thats actually a way that they can see operating leverage and actually underappreciated they dont put a price target on it. They have a bear case and a bull case bear case 153, bull Case Scenario 252 sector weight hes neutral. Okay well agree to disagree. Apple is down a third of 1 still to come we got your last chance trade carnival sinking today on the rck of earns and weak guidance. Wee talking to the companys ceo right after the break. See thats funny, i thought you traded options. Im not really a wall street guy. Whats the hesitation . Eh, it just feels too complicated, you know . Well sure, at first, but jj can help you with that. Jj, will you break it down for this gentleman . Hey, ian. You know, at Td Ameritrade, we can walk you through your options trades step by step until youre comfortable. I could be up for that. Thats taking options trading from wall st. To main st. Hey guys, wanna play some pool . Eh, im not really a pool guy. Whats the hesitation . Its just complicated. Stepbystep options trading support from Td Ameritrade filmgate is growing really staffing a small bquickly and. Is challenging. I needed to fill a production coordinator role. I was looking for someone with specific skills. So i posted a job on linkedin. Maribel had all the skills i was looking for. And looking at her profile. I saw shared connections. That was a plus. But the most important thing. Is the ability to connect to people and she had it. And i knew. She was the one. Post a job today at linkedin. Com grow 30 minutes until the close reporter moments ago s p downgrading its Credit Rating on wework to b minus. This puts wework into junk territory. Negative outlook reflects the uncertainty tied to the companys Capital Raising ability. The negative look also captures the pivot in corporate leadership newman stepping down uncertainty around the companys future direction with respect to its operating strategies and its growth plans this is just the latest hit in a series of very disappointing events for weworks executive which newman stepped down and raises a lot of questions about how does wework continue to get cash to grow the company into next year. Cant tap equity markets now the debt market is looking increasingly difficult to tap as well future of the company is uncertain at this point. B minus better grade than what you have to give them for the ipo case which was fail. In that sense a little bit better here are the key things driving the action we got just under 30 minutes more impeachment headlines acting negligence chief was the in congress as the whistleblower complaint is released new data out today showing stronger reads on the labor Housing Market yields have slipped slightly and ipo woes with peloton trading lower following its debut. Time now for cnbc news update with sue herera heres whats happening at this hour. During a News Conference in new york secretary of state mike pompeo commented on the whistleblower complaint he said hes confident people in his department acted appropriately. To the best of my knowledge, from what ive seen so far, each of the actions that were undertaken by state Department Official was entirely appropriate and consistent with the objective that weve had certainly since this new government has come in to office weve tried to use this opportunity to create a better relationship between the United States and ukraine a los angeles businessman was sentenced to four months in prison for paying 400,000 to get his son into Georgetown University as a fake the tennis recruit. He was also sentenced to two years of supervised release, 500 hours of Community Service and 100,000 fine. According to a report from the National Business group on health, employers and workers will shell out more cash for Health Insurance in 2020 Large Companies predict the total cost coverage to reach an average of 15,375 next year up from 14,642 in twine you are up to date thats news update this hour ill send it back downtown to you guys i didnt expect prices to go down so there you go. Thank you very much lets get back over to mike for the second installment feeling the burn. Thats what pelotons ipo is doing right now today. I thought it was interesting to look at the existing publicly traded companies in the fitness and wellness area. By the way, there are not very many pure plays. Peloton is neither fish nor fowl very generous ipo price. None of these stocks are near there except Planet Fitness which has been the most successful Planet Fitness old weight watchers, they are down 17 . Club is the old new York Sports Club Parent Company and nautilus, exercise equipment company. I put those up how trivial the market value is in this area medifast, thats nutritional substitute stuff theres not a tremendous profit pool that public investors have access into the this general area of fitness and exercise, but see if that sort of comes to the rescue of peloton in the coming days. Mike a lot of the other big Fitness Companies are still private then well, they are or its kind of a local business or really just the equipment area. Its fold within Larger Companies so i dont think its necessarily you have the pure plays out there that are really focused on exactly one mode of exercise okay, mike. Thank you. I just want to show you the dow its positive after being negative most of the day were getting some headlines on the wire from chinese officials, at least, talking up trade negotiations peace maybe between the u. S. Headline here. China willing to buy more u. S. Products so look things are moving in the right direction towards a deal saying the u. S. Has shown goodwill by waiving tariffs and china is willing to buy more this is from the Chinese Foreign minister if its true its good news this is like the yoyo weve been on for more than a year i think, you know, i said it for a while. You dont trade on this news unless youre a day trader you pick your spots. Find good fundamental companies with good Balance Sheets, great Management Teams, good market shares and when they fall on news that trade isnt going to happen you dip and buy and, you know, you just have to play it that way encouraging positive intraday low on the dow was 167 points at about 11 30 a. M. Now positive. Several Companies Issuing profit warnings today including an education group, ing and Carnival Corporation carnival down citing weather, policy changes and slip delivery delay. Carnival corporation Arnold Donald joins us now. Arnold, good afternoon to you. Thanks for joining us. Good afternoon to both of you. Lets touch on the guidance first, if we can decent quarter looking backwards, i know but the guidance Going Forward weighing on the shares today. Talk to us about the reason for the cut. We did have a nice beat for the quarter in terms of earnings but the guidance was slightly reduced. Driven primarily by the spike in fuel costs but also theres we waived off quite a few things malaise in germany and italy, europe in term of the economy. A number of noise things we had hurricane sharp turn disruptions in itinerary we had to cancel people, rebook them so a number of noise factors that led us to primarily because of the spike in fuel prices to lower guidance a little bit. A lot of disruption external disruptions, arnold, between weather and cuba ban last quarter is that really all thats gone on because your stock has underperformed the rest of the industry i think clearly the noise is there. And we always have challenges every year theres always upsets and Different Things this year theres been a plethora of them and the nature of them the instantaneous shut off of cuba well see how the other companies do speaking for ourselves were still delivering very close to the guidance we gave in june were still going to have comparable earnings to last years record earnings 5 billion in cash. That well generate. Still the strongest Balance Sheet in the industry. Expand a bit on your comments on the consumer. Is it the Consumer Outlook in europe youre worried about or anywhere else including the snus i would say theres clearly some surprises versus early in the year when we first gave guidance with regards to Consumer Confidence in the uk and germany and persistent economic malaise in Southern Europe all of those things impact us. Again, we have low penetration in these markets as an industry. We have high Guest Satisfaction with the product as an industry. We have great value relative to land base Vacation Center as an industry and as a company we have scale and we have, as i mentioned, the strongest Balance Sheet. So if we do go into a sustained recession, were positioned for it but we did not give guidance yet for 2020 this was just going into the Fourth Quarter so what can you tell us about consumer demand and how much consumers are willing to spend on the ships right now what i can tell you is our on board revenue is up in the european segment and u. S. Segment. So for the year well be up in on board revenues on both. We had substantial capacity increase and a number of trades in alaska, elsewhere, the caribbean is extremely strong as a market across our brands and for the industry theres lots and lots of positives. Even in germany our team outperformed the travel market and rest of the cruise in germany. Were able to grow earnings despite the fact they had 20 almost capacity increase in a market that was contracting with slowing Consumer Confidence. Since going back to saras question, quickly, why underperformed your peers so much we look at a 12 month chart is it such a steady trend ever decline despite all this upbeat spin youre giving us. I think the reality is, first of all, from an earnings performance and performance in the market and guests and stuff were not under performing the other companies in the cruise industry if you look our return on Investor Capital over time were there but one reason youll see a difference in the stock is were much more heavily invested in europe. We have as much as ten times the number of cruise guests exu. S. As and three times as royal would have were more impacted by europe than the other brands would be but in terms of actual performance, return of Investor Capital, the real metrics, were performing very well Arnold Donald, thanks for coming in. Good quarters and bad. Still to come facebook is facing more pressure from washington up next well talk to a top analyst how the crackdown on big tech is impacting the stock. Plus well talk to the creator of p90x. Well be right back. [leaf blower] you should be mad at leaf blowers. [beep] you should be mad your neighbor always wants to hang out. 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. As a principal i can tell you this. When one student gets left behind, we all get left behind. This is a problem that affects each and every one of us. Together with ibm, we created a whole new kind of School Called ptech. Within six years, students can graduate with a high school diploma, a college degree, and a pathway to a competitive job. You know whats going up today . My poster. Today, there are more than a hundred thousand ptech students around the world. Its a game changer. Markets. The business of trading goods and services. Nasdaq operates among the largest markets in the world. And our Technology Powers markets from indonesia to chile. Great markets are built on a foundation of trust and integrity, forged through leading Edge Technology and a smart regulatory framework. As technology advances, regulation must keep pace to allow the markets to evolve. Today we see an opportunity to modernize regulation, to make markets more accessible to investors and entrepreneurs of all sizes. From the graduate buying her first stock, to an institution investing in thousands. The markets belong to everyone and stand as a symbol of economic advancement, social progress and limitless opportunity. Thats the tomorrow that we envision and to get there, well have to rewrite it today. P90x. We got 50 minutes left to go of trade mcdonalds will test a plt sandwich made with beyond meat plant based patties, lettuce and tomato that stock up 11 . This is what were waiting for absolutely. Im impressed mcdonalds reacting very quickly relative to the size. They do a lot of testing im pleased. Also for all of the possible existing Food Companies that we said for a while where they launch their own version of this you see alot of the market being taken out whether its impossible going into burger king and its not like they have much time to react and grab of some of what will be the biggest accounts duelling it out between two companies. Facebook under pressure as washington cracks down on big tech and according to a new cnbc survey it could have the most to lose when an antitrust review arrives. Jon fortt has more reporter facebook has a new investigation and Technology Executives are not surprised the tec is more than 100 top level Technology Executives from Companies Across a variety of industries we asked their opinion about investigations into big tech more than 55 of respondents say facebook is the company most likely to face punishment as a various of antitrust proeks, 7 say google and another 7 said Amazon Council members are executive leaders at Companies Across all sectors of the economy how do they feel about the big tech crackon overall 47 say they support the investigation. 28 oppose you can see all of those results from this quarters survey at cnbc. Com tec thank you. We got under 15 minutes to go of trade. Doj is circling facebook including in its larger antitrust investigation. Take a look at the this chart. How does this weigh on facebook . Facebook, amazon, google all up double digits. Stock least antitrust exposure is netflix what exactly is the market and investors pricing in, in terms of scrutiny from an antitrust perspective on facebook, mark . Okay. I was surprised by the results of your panel. I would think that of those Companies Google is probably the company that faces the most antitrust competition examination risk i think facebooks issues are different. I think they have to do a lot more with privacy, data privacy concerns they have somewhat checkered history when it comes to that. So anyway whats happened, those is theres three big risks maturity, competition and regulation regulation has become as big of a risk in the last three years whats happened investors have taken down their target multiples by a turn or two prior to all of this breaking out, you had facebook getting around 25 times earnings the market is saying were not going to put that on bus we dont know what the breakup potential risk is. Well take it up to 22, 23 times earnings thats what happened to the stocks this Regulatory Risk has trimmed the multiples. But if facebook is selling off today because of fears of an antitrust investigation, do you think thats overdone . Yeah. Im going on record on this. I do think its overdone ill make two point. One break up risk is actually very small based on the legal experts weve talked with. I think that facebook would actually be forced to divest in instagram or whats app acquisitions that have been cleared in the past. Few precedence that would make that a probability as investors, what impact does this regulation, these examinations having on the companys fundamentals look weve had a chance to test this we had a year and a half to watch the biggest regulation impact these fundamentals. Thats gdpr out of europe. It has not had an impact on advertiser demand for facebook nis agram, google nor on user demand youve seen almost extremely youve seen extremely consistent growth rates out of facebook and google over the last year and a half facebooks growth rate has accelerated about a point a quarter. They are still growing twice as fast as internet advertising i havent seen the fundamentals of these names in terms of demand when you see these trade offs its a buying opportunity. I realize theres overhang related to regulation may be there for a while. I have a question when do you think fundamentals are going to matter . I mean i think that these stocks will have a struggle in outperforming if you have these headlines in the news every single solitary day. So, when do you think well be able to put this aside and really focus on double digit growth, operating margin expansion, operating leverage and that sort of thing yeah. I think you would know the answer to that question as i would or even better my guess is that this is going to take some time. These are unchartered waters youll have these kind of dip in rallies in the stocks and youll have prints where the companies show fundamentals arent impacted growth rate can sustain. Google will go 39 quarters of 20 plus ad Revenue Growth thats what theyve done up through this last quarter. Facebook will have the to show it can keep sustaining 30 growth when investors can see that a breakup is probably not going to happen, distinct slow probability and fundamental trends arent impacted investors will wade back into these stocks step back. These companies are trading at 19 and 20 times. Thats not times sales thats earnings facebook and google. Facebook you can buy the discounted growth rate when the market wants to get more risk on, growth on, facebook is one of the assets the market will return to. Thanks so much for joining us up next we got your last chance inr clivd later ouexuse terview of carole ghosn. Liberty mutual customizes your car insurance, so you only pay for what you need. I wish i could shake your hand. Granted. Only pay for what you need. Liberty. Liberty. Liberty. Liberty. Tv aas many safety features powas the rx, the new. The lexus rx has met its match. If theyre talking about you. You must be doing something right. Experience the style, craftsmanship, and technology that have made the rx the leading luxury suv of all time. Lease the 2019 rx 350 for 399 a month for 36 months. Experience amazing at your lexus dealer. So servicenow put your workflows immhm. Cloud, huh . Your employees must love you. Thank you. Ah, you could say that. So how are things with you guys . Great. Thank you. Thank you, sir. Lunch next week . Terrific. Say hi to the team. Will do. Call my office, i will. Sounds good. Alrighty. Servicenow. Works for you. You should be mad that this is your daily commute. You should be mad at people who forget theyre in public. And you should be mad at simple things that are unnecessarily complicated. But youre not mad, because youre trading with e trade, which isnt complicated. Their app makes trading quick and simple so you can strike when the time is right. Dont get mad, get e trade and start trading today. Five and a half minutes left of trade time for last chance trade vf corp they will grow 7 to 8 revenue. Theyve yield 2. 4 thats very attractive got great brands so i really like the Brand Strategy international opportunities. They are going to generate a Million Dollars in Free Cash Flow and buy back stock and give you a dividend too i like the stock a lot probably a good day as it should. The analysts were very positive. Its understand appreciated. It fell off the radar screen they did stumble for a while with the rest of retail and apparel. I like their brands and the Management Team is top notch five minutes to go in todays session. Time for the closing countdown mike lewis joins us now. And, you know, mike, what can you tell us about the drivers in todays session and whats picking up steam here as the dow falls 78 points. Not a lot has changed you still have youve got fundamentals versus what people are expecting, what our positioning is when you look at the ipo markets recently they underperformed the s p pretty significantly the momentum created baskets pain for people as well. Then you see the backdrop over the private stuff without mentioning anybody in particular, youve seen valuations likely come in significantly too. A lot of public valuations are psychologically and tactically linked to private valuations with all of this in the marketplace right now and youre heading in to earnings and trade wars will continue to show what we saw with fedex and other people who have been signalling what it might look like in earnings i think the direction is still to the down side and last thing about that, do you have the fed kind of expanding the Balance Sheet for the first time in a while. The dip is up more shallow but just heading in to earnings and position to be more crowded i expect to see more of the same pain across the board. Performance overall is probably starting to really lag the s p which is still up about 20 on the year as performance lags and heading in to earnings i expect some draw downs on the s p thanks so much for joining us lets get over to mike santoli skipping a beat, the market has shown a little give but not given away the s p 500 puts the feel position in view here. Were holding above that august range. Holding above the lows from a couple of weeks ago in the s p softened up. Obviously a little bit listless. Low energy no damage. Staying in the zone at least for now. Looks natural, neutral and sideways in terms of a lot of inputs you would watch in terms of trend i do want to dial it back. Today in history, stock market history 1955, september 26th, one of the biggest one day losses in the history of the dow jones average. President eisenhower had hearing. Thats what the loss is attributed to. It was a flash crash resumed from there but actually an interesting perspective that even 64 years later we dont know what happened that day except the sentiment and news combined in such a way caused a bit lower. Didnt end the bull market lets get out to Rick Santelli reporter today was all about auctions 113 supply september 30th last day of the quarter. Look at this chart that starts at the end of august hovering at the midpoint of that extreme 190 is a correction. The bigger move started at the end of july. Big story today second day in a row the dollar index has fresh closes at highs going back to a comp of may 2017 bertha, nasdaq not one second green territory today. Reporter down for the fourth day in fire. Whats interesting is if people are thinking that maybe the impeachment situation in washington will mean that the legislature will not move on drug prices. Well investors in biotech arent feeling it thats the big drag. Weve seen a little bit of modest gains when it comes to tech tesla best performer on reports they may have a strong Third Quarter output and finally, of course, the ipos today just a sad story. Livongo, smiledirect, adaptive biotechs all hit lows as peloton disappoints. Reporter important thing here moving towards the lows here in the last half hour or so, United Health had a tough day, down 6 a real drag on the dow those recent ipos, enormous news fairly flat. A lot of them are significantly off their recent highs theres the closing bell Dow Jones Industrials average shifted, closing at welcome to closing bell. Lets check in on where the markets finished the dow slipped closing down some 75 points, well off the loss of the session, it was down at 167 at 11 30 this morning s p and nasdaq and russell down. Housing for highlight look at the home builder after another beat on the housing data pending hole sales come after starts, new home sales look better than expected for all of this we say if the Federal Reserve does have ammunition, lowering Interest Rates doesnt stimulate the economy or protect us against a trade war heres a place where it does. Lower mortgage rates, lower Interest Rates stimulated this spurt in buying in the Housing Market long end of the cut came down before the 25 basis cut. I get your point the sector constructed today so energy i just put a dollar index, edging higher up 0. 8 . Intraday we did touch a two year high just something to keep an eye on not great today not great in general in the last month or so off its lows joining us to talk about the market today, stephanie is still here and mike, lets go out to you in terms of catalyst and headlines. A little bit on china. Little data. Kind of a soft day kind of a slow moving day an indecisive period what was interesting in the morning we kind of fell to the lows once the ten year bond yield fell then it ticked lower didnt go much lower then we come back on this vague china headline and what happens. Ten year goes above 1. 7 on that headline thats what the index is doing, outsourcing its worry function to the bond market bond market says worry about a slow down or risk aversion then the stock market cant make any progress at least on an intraday basis. Are you still bearish for the rest of this year . Yes, i am i havent changed my view. Im sticking to my guns. Our narrative has been tale of two hats strong half fold by a weak second half. In terms of the fundamental data its been tracking globally and now to some extent to the u. S. To our bearish they circumstance more than i would have expected. Part of the transmission mechanism to the u. S. Is through the yield curve, banks tend to be less willing to lend when loans are less profitable which is what happens when the yield curve flattens and inverts as it has now. Then were also seeing data in the u. S. When we look at things like trucking and container volumes. If we look at inflows to the port of long beach they are shrinking now. The internals of the Business Climate and fedex had a great report on that i dont think its a function of the trade war but a broader slow down due to other issues as weve discussed. We got an earnings alert on micron josh lipton with the numbers reporter micron reporting numbers here 56 cents for expectation of 49 cents and 4. 87 billion versus expect jays of 4. 75 billion. In terms of a forecast, the guidance they are delivering is 46 cents plus or minus 7 cents revenue 5 billion police or minus 2 billion. Ceo saying micron delivered Fourth Quarter results ahead of expectation capping fiscal 2019 in which the Company Executed well and what he calls a challenging envelope and significantly improve its Competitive Position stock is down here right now in after hours, it was up more than 50 , remember, yeartodate heading to this print on the call investors want to hear more about the companys end market smart from your pcs, 5g. Remember micron ceo on cnbc tomorrow as well be sure to tune in for that interview as well. Guys, back to you. Strong performer, particularly strong the last couple of months tough set up decent quarter basically the story right there. I think its all about the semis micron excepted they the relative valuation with hopes you would get better evidence of cycle turn micron, yes, up big yeartodate but may of quite when the whole group topped it was a huge wimpy stock. How do you see micron i think the guidance on the call will be important about memory have we seen any kind of bottoming there . Thats what everyone is waiting for. Will it be this color or next quarter. Any kind of color on that is important. Cap x, boeing of 7 million we have to see what they say about that lets move on and talk about peloton which closed down 11 on its first day of trade after a couple of wonky couple of months. The stock is 30 lower than its ipo price. Ceo john if you reca the ceo answered that. Peloton is 58 a month with zero down and 0 financing its 29 per live in adult its an insane value if youre riding the bike. Weve looked at the last 15 years of fitness and even in 2008 and 2009 there was increased spend. Effectively recession proof recession proof easy no problems. I mean, mike, i dont know about the announcers but this is an expensive product. Absolutely. Despite this spin off on how it will be financed. 2,200 for a mike the 4,000 for a treadmill hes talking about some sort of financing youre not going to be outlaying 2,000 on a bike if youre in a recession. That obviously what that gets to you is some estimate of what the real adjustable market is. How big can they get how much turn do you have to undergo get whatever the limits they are face. The reception today, those is really part of this pattern where these companies that come at a generous valuation, where in their current phase its not really about profitability, i think the market is not swallowing various invested variations which there is not at that lot much froth in terms of emerging Growth Stocks what does it say about support for existing Company Valuations out there. Peter how are you guys reading peloton and what weve seen now as a trend for some of these recent ipos . Yeah. I would completely agree with mikes sentiment when we look at peloton, smile direct, ubers performance whats interesting is that ipo volumes really when you look at the number of companies ipoing or proceeds generated are down about 25 yearoveryear, yeartodate from 2018 so you would think given the fact that supply has not been that robust that people would be more interested in these deals clearly investors have become a lot more discerning. Not necessarily buying stories they want to see profitability and asking companies to show me rather than just believe the story thats being offered by management that recession proof narrative for peloton is interesting in and of itself and investors just arent buying those sort of narratives they might have a year ago i think its quite telling peter, do you think this affects some of the other already established listed Tech Companies and what you make either way of the softness today . Its interesting. As you were alluding to, fang has started to underperform the market not like it did in 2018 but for the Broader Market turn. Its a different set to some extent of investors in fangs versus unicorn ipos. But, again, i do think it speaks to the caution generally in sentiment that i think has started to present itself in markets. And, again, its more of a show me attitude near highs with valuations as full as they are so, again, i think its in support to some extent of my cautious stance relative to whats been happening in those names. Do you think its further confirmation on this trends were seeing where value is starting to outperform growth if you look at the russell 1000 value over russell 1000 growth youre seeing that gap widen 100 . Its also defense led market as well we talked about this endlessly whats leading the market. Utilities, staples, health care up until the last couple of days those have been the leaders. Defensive market and you got this rotation on top of that and then you have this no appetite for not profitable company. So i dont think that this company i really think long term its a good story i think we have to wait and let it settle out. Let the dust settle on all of these things i would make one quick distinction between fang and these poiz the reason fang became fang these companies were winner take most, defensive nobody could take them on it wasnt taking a flyer on an unproven Business Growth massive Profit Margins theres one comparison you could make thats not across fang but one or two names. These are Companies Listing without a pe multiple. Netflix still has that aspect. Right because its all on that guys, well leave it. Thanks very much for joining us. Thank you still to come Morgan Stanley chief economist will tell us how much of a risk a tdera war with china is to the economy. China is to the economy. Well be back in 90 seconds. in dutch its happening. just ok is not ok. Especially when it comes to your network. At t is americas best Wireless Network according to americas biggest test. Now with 5g evolution. The first step to 5g. More for your thing. Thats our thing. Liberty mutual customizes your car insurance, hmm. Exactly. So you only pay for what you need. Nice. But, uh. Whats up with your. Partner . Not again. Limu thats your reflection. Only pay for what you need. Liberty, liberty, liberty, liberty china said the u. S. Showed goodwill by waiving some tariffs and buying more goods. Heres the biggest risk facing the u. S. Economy trade is the biggest issue. Global trade war has expanded quite a bit compared to what people might have expected i think its going to take quite a while to get to agreements i think the chinese might have incentive to wait out this administration and see what happens at the election. That is slowing the global economy. That could come back to bite the u. S. Economy for more lets bring in chetan ahya chief economist and global immediate of economics at Morgan Stanley based on your previous sort of bearish views on the economy, you would think youre more in the bullard camp worries about trade and how that will affect the snus absolutely. Youve already seen a lot of slow down in motion. And the most important number that we are watching is what is happening to Business Investments, not justin u. S. But also globally. That continues to take down. We dont see corporate sectors to feel confident and do Business Investment. Unless you see that confidence coming back we think this slow down is set in motion not just in u. S. But every where else in the world. To what extent is the yield curve an issue with you. We had a good discussion with bullard on that point. If longer rates were higher, would you not be calling for a shortened cover. I would put it this way theres concern about Global Growth outlook im going to the root cause of it which is this confidence issue which is the trade policy issue. Were trying to take the call on that at this point in time, we still dont see any sign of a comprehensive deal being done. You can have a temporary pause but unle and until you get that comprehensive deal i dont think corporate sector will come back to doing Business Investment mind you,youve seen 127 basis points around Global Growth. Demand is weak trade policy issues, concern now demand is not there. So it is a concern theres attention in the upturn, some numbers globally coming in better than expected is it because forecast got beaten down . Also we saw that in europe, for example and then in turned down with one data point so badly we backed away before the surprise started i think, yeah, youll probably see some stabilization of growth if trade reduces, either theres no further escalation. Thats how were taking it were taking it all to trade policy if you get a pause, youll get some stabilization that isnt significant policy easing that will help. But you need completely for proper full sustained recovery if businesses are hungered down on uncertainty around trade why hasnt it shown up in the employment data. Do they still have an appetite for hiring theres a problem the first one is aggregate hours worked first they are cutting the numbers of hours worked. The other one is the absolute number of jobs addition which is also slowed down significantly hours worked has come down from 2. 9 to 0. 9 right now and in terms of the jobs momentum youve seen it come down from 235,000 a year back to about 145,000. So weve seen a significant loss of momentum in jobs. The monthly number is even lower than that at 125 with privatesector below 100 where do you stand on the debates clearly youre pointing to trade wars is one of the big concerns of the economy, the Interest Rates are the best way to rectify that as a concern and instead cause more problems down the line and have to be unwound. We have a view trade rates are a policy most importantly will prevent potential so it has to move down think of that from that supremacist credit markets is the biggest risk when theres a slow down. The credit market behaves in a way where trade tensions are hitting profitability. The neutral rate is going down and fed needs to take rates lower. Its necessary and helpful reducing that Monetary Policy has a role to play in this but for getting the corporate sector to feel confident, to go ahead and do investment you need to do that trade policy issue to be you need that issue to be resolved what do you expect this year, how many cuts . We expect one more rate cut in october thank you for joining us. The chief economist at Morgan Stanley. Up next well break down the charts how Investor Sentiment can affect the next move the well ask the creator of p90x if peloton is a fitness fad or the future of exercise only pay for what you need. Liberty. Liberty. Liberty. Liberty. Liberty mutual customizes your car insurance, hmm. Exactly. So you only pay for what you need. Nice. But, uh. Whats up with your. Partner . Not again. Limu thats your reflection. Only pay for what you need. Liberty, liberty, liberty, liberty welcome back news alert on Lockheed Martin. Reporter big buy back boost here we got shares of lockheed up maybe a quarter of 1 postmarket on 12,000 shares of volume Lockheed Martin announces a 1 billion addition to their Stock Buy Back Program that brings their total repurchase authorizationto 3. Billion. Investors seem to like it. Back over to you lets get over to mike for the final installment of the peloton themed dashboard pell the tennesse peloton lets look at measures of Investor Sentiment the stock market is only a couple percent over all time low. Measure of equity exposure by naaim. Tactical investors on a weekly basis this is reported this is about sort of a modest down trend in exposure you got really low here, in the Fourth Quarter of last year. You havent rebuilt that much. This can go above 100. Neerds they can use leverage basically i would call this roughly neutral. These other two measures the first one will show you somewhat professional Investment Advisors maybe we dont have it basically the Investors Intelligence poll has 55 bulls and 17 bears. Right. Basically bullish consensus. Individual investors Something Like 29 bulls 30 ears. They dont like the headlines or political intrigue and that probably tells you were not over in terms of sentiment this is institutional Investment Advisors professional investors running real money in a tactical kind of short term way as always thanks. Peloton shares falling sharply on its debut well speak to a pair of analysts and see if this stock is fit for you later carole ghosn discusses her husband to settle charges of fraud with the sec and more. Oh, wow. You two are going to have such a great trip. Yeah, have fun thanks to you, we will. Aw, stop. This is why voya helps reach todays goals. All while helping you to and through retirement. Um, you guys are just going for a week, right . Yeah thats right. Can you help with these . Oh. Um, were more of the plan, invest and protect kind of help. Sorry, little paws, so. But have fun send a postcard voya. Helping you to and through retirement. Should always be working harder. Thats why your cash automatically goes into a Money Market Fund when you open a new account. Just another reminder of the value youll find at fidelity. Open an account today. Of the value youll find at fidelity. Servicenow put our this changes everything. Youre right sir. Everything. No not everything, i mean youre still blatantly sucking up to me gary. Brilliantly observed, sir. Always three steps ahead. Six steps ahead. Sixteen. So many steps. You done . A million steps ahead. Servicenow. Works for you. Classical Music playing throughout Liberty Mutual customizes your car insurance, so you only pay for what you need. I wish i could shake your hand. Granted. Only pay for what you need. Liberty. Liberty. Liberty. Liberty. Time now for cnbc news update with sue herera hello, everyone heres whats happening that hour in his Weekly Briefing House Minority leader Kevin Mccarthy took aim at democrats. What we witnessed today was the perfect example of this democrat majority and how reckless they have handled this significant responsibility in fact, i want to use chairman schiffs own words a parity. At a News Conference, rouhani denied his country was behind the attack on Saudi Oil Facilities speaking through a translator he demanded the u. S. And european governments back up those accusations that tehran was responsible claiming they had nothing to do with it. There are 805 confirmed vaping lung injuries in 46 states and the u. S. Virgin islands. Thats according to the cdc. Thats an increase from the 530 cases reported just last week. At least 12 people have died in 11 states. You are up to date thats the news update at this hour sara, back to you. Coming up, carole ghosn tells us when her husband carlos ghosn former ceo of nissan could go on trial in japan mcdonalds is testing a beyond meat in canada. Will customers love it thats coming up on closing bell. Cistrecommended memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. Liberty mutual customizes your car insurance, hmm. Exactly. So you only pay for what you need. Nice. But, uh. Whats up with your. Partner . Not again. Limu thats your reflection. Only pay for what you need. Liberty, liberty, liberty, liberty a new kind of credit card. Created by apple, not a bank. With a better way to track where you spend. A new level of privacy and security. Daily cash you get back every day. And no fees. Not even hidden ones. Oh, and if you happen to be somewhere that doesnt accept apple pay yet, theres this. Nice. This morning ceo john foley talked about the Company Pricing above its range. We want some momentum we think generally left something on the table in pricing. My cfo said we dont want to be dollar smart lets bring in analysts very good to you all tony, ill start with you do you think peloton will prove to be just a fad i think it will be all right. 1. 2 million subscribers is a pretty substantial number. I enjoy the piece of equipment and i think the fan base is going to continue to grow. People seem to love it i think its priced right. You get what you pay for whit comes to that piece of equipment. I worked out the music licensing issue. That will be fine as well. This is a little blip. First day. Im not worried because people love it. Michael, you have done research into the stock. This was a valuation issue why do you think it had this kind of performance . Yeah. I was honestly very surprised by what it did. You know when it opened up and i think its been a banner year for ipos and i dont know if theres fatigue there and investors are being more choosey in what they participate in. But, you know, maybe the lack of profitability overshadowed their very robust growth p. M. Tony i want to ask about that trend of working out at home is that got further to run, do you think, versus traditional kind of gym membership i think it depends on the individual a lot of people who are getting older, the baby boomers are a massive demo graphic and got kids they dont have the time to get in the car and drive to the gym and deal with that i sold billions of dollars of at home fitness from p90x now im working with gaiatv. Those will be out on prime channels that market is massive if you look at the peloton, do you that right there your kids are next to you. Its super convenient. That connected fitness and a Company Called tonal will keep growing. Beach body on demand, those subscribers continue to grow easy, convenient and tons and tons of variety and people want variety more than anything in your note ahead of the ipo you did flag the concern about star instructor concentration rift how big of a factor was that and what do you mean by that again, this is essentially Something Like what people look at spotify and look at what happens if Justin Bieber pulls all his songs out. Justin bieber is not asking you to work out on peloton, but the instructors, they have 39 or 30 instructors, a couple of instructors they are adding every quarter. Some are superstars, stars on instagram. This is just one of the many risks this company has but, again, this is something that the company would need to keep in mind like almost half of their subscription calls are to these instructors. Something to keep track. What if one of those very popular instructors leaves and that leaves a bad taste in a lot of peoples mouths tony mentioned that variety is something that this market has always gone to is that a risk for peloton can hear the question your microphone the question, michael was to you about variety and the fact that tony said the consumer likes variety, peloton really only has two machines. Is that a threat theyve done a great job with peloton digital adding yoga and boot camp and meditation and things like that if they can continue to introduce compelling product and new splints and new nodalities that should be enough to keep, you know, consumers engaged at least for right now. Well leave it there. Thank you very much. New story out right now on cnbc. Com, wall street and big business democrats out with a big warning for their own party namely they are willing to sit out the president ial Campaign Fundraising cycle or if senator Elizabeth Warren wins the nomination Brian Schwartz has that story and joins us now from headquarters so i dont think youre naming any names. Tell us more about the kind of people youre talking about and what the fear is here with warren reporter weve been working on this story for a few weeks and engaging people on wall street these are people that work at big banks, these people work in private equity and hedge funds on wall street in the finance community. They really are kind of sending alarm bells here with senator Elizabeth Warren as she surges in the polls what they were telling us privately in a variety of different encounters, meetings, is that they are if they are planning at least at this point if she goes ahead and captures this nomination over people like former Vice President joe biden, they are saying that they are threatening to sit out the election and not help with fundraising or even go as far as potentially helping President Trump. And those are some pretty bold words coming from people who are leaders on wall street, people who have a ton of pull in the finance community and can make a finer point here these are democrats or people who lean in the Democratic Party, lean towards the Democratic Party theyve been involved in fundraising for years and thats what they are saying clearly they are concerned with warren surging shes been very vocal critic of the big banks and finance community as a whole shes got a ton of plans out saying how shes going regulate them in some way, shape or form if she becomes president we list them on cnbc. Com in a story we wrote today thats kind of where were at, at this point from wall street how they are looking at Elizabeth Warren making her way up the polls at almost virtually tied with joe biden. I just wonder if it matters is the money for her coming from somewhere else is she taking it from lobbyists. I know shes campaigning against that but youve written in the past how shes taken it shes taken money from lobbyists in the past. On the other hand she has this pledge out that says she wont be involved in any big money fundraisers that only goes up to the primary. The question for her will this matter for her that type of pledge if she goes on to win the primary, gets in the general election against President Trump who has a ton of donors from all walks of Different Industries who are very wealthy people. He is ahead in that, really on alpha sets on that side. One could argue that shes doing very well with grassroots donors. Well have to see how big of an impact that will have if she wins the nomination. Thanks very much. Up next, would you like fries with that . Mcdonalds giving a test run with its beyond meat well discuss that and much more the ncome on. Y glc. [ cars honking ] its so late. Yay. It fights traffic. No parking. I told you. Oh, a spot hold on. It fights tension. Seriously, did you take my phone . Passenger light on. It even fights. Fighting. Innovation that keeps people together. The 2020 glc. Lease the glc 300 suv for just 479 a month at your local mercedesbenz dealer. Through the at t network, edgetoedge intelligence gives you the power to see every corner of your growing business. From finding out whats selling best. To managing your fleet. To collaborating remotely with your teams. Giving you a nice big edge over your competition. Thats the power of edgetoedge intelligence. Shares of beyond meat jumping today after mcdonalds announced it would partner with the doe test a new vegan burger. The plt short for planet, lettuce, tomato, pronounced has given me much grief all day. The sandwich which uses beyond meat pattys will be sold for 12 weeks in canada. Not everyone is bullish analysts saying in a note this morning that alternative beef is unlikely to see a National Roll out due to supply issues and fake chicken will be a much more profit driver. Lakefront week we interviewed Patrick Brown about his whopper partnership with Burger King Burger king roll out is going great. Hugely successful for them they are, they are incredibly invested in this and its been great for us selling extremely well in 7800 restaurants, and, you know, its just been total success. So beyond meat shares closed up 11. 5 on a day where recent ipos faltered. Obviously being partnered with mcdonalds is bullish but how bullish is at a stock thats trading where is the valuation. 60 times or so. Interesting because this was the one that everybody who was bullish on beyond meat was looking for. You could almost say it was only up 11. 5 meaning not only rationally it should be up more. But seems a pretty contained reaction the if it becomes the kind of dult plant based burger thats great i would challenge people, who are the other suppliers to mcdonalds that we talk about as these multibillion bonanza companies. Its great but not necessarily the case that its going to be some wonderful long term profitable grant the question will be are they exclusive. Almost certainly not if they come out with a new product at a cheaper price i dont know about this trend lasting or is at it fad . The jury is still out. There are questions about how healthy they are keep in mind the did you think dunkin expert. Up next carole ghosn wife of carlos ghosn speaking out. Our exclusive sit down when cnbc comes back i want to know what im paying upfront. Yes, absolutely. Do you just say yes to everything . Hm. Well i say no to kale. Mm. Yeah, they say if you blanch it its better, but that seems like a lot of work. No hidden fees. No platform fees. No trade minimums. And yes, its all at one low price. Td ameritrade. Could another come aroundot, the corner. Or could it play out differently . I wanted to help protect myself. My doctor recommended eliquis. Eliquis is proven to treat and help prevent another dvt or pe blood clot. Almost 98 of patients on eliquis didnt experience another. And eliquis has significantly less major bleeding than the standard treatment. Eliquis is fdaapproved and has both. Dont stop eliquis unless your doctor tells you to. Eliquis can cause serious and in rare cases fatal bleeding. Dont take eliquis if you have an artificial heart valve or abnormal bleeding. If you had a spinal injection while on eliquis call your doctor right away if you have tingling numbness or muscle weakness. While taking eliquis, you may bruise more easily. And it may take longer than usual for bleeding to stop. Seek immediate medical care for sudden signs of bleeding like unusual bruising. Eliquis may increase your bleeding risk if you take certain medicines. Tell your doctor about all planed medical or dental procedures. Whats around the corner could be your moment. Ask your doctor about eliquis. We got news alert on delta reporter this is a big deal. Delta buying 20 stake in land American Airline for 1. 9 billion. Delta is expanding its presence in latin america for a long time latin america was not dominated but big presence down there from the u. S. Airlines was american this will certainly change things up. It latino latam will continue american had filed and was waiting for approval at a joint venture between american and latam. No word on what that will happen i imagine that will fade away. All right phil thank you nissan and its former Ceo Carlos Ghosn reaching a settlement with the sec nearly a year after ghosns initial arrest in november in japan for alleged financial misconduct involving his executive compensation and misuse of company funds. Nissan will pay 15 million while ghosn will pay 1 million. A Statement Reads mr. Ghosn settled this action without admitting or denying the secs allegations. It permits mr. Ghosn to continue and to contest and deny the factual and legal allegations against him in the criminal proceedings in japan and mr. Ghosn intends to fully do so carole ghosn has been barred from speak with her husband since april and she joins us now for an exclusive interview thank you for speaking out so why did you settle for a Million Dollars with the sec because he wants to focus on his case in japan now that this is out of the way. He could focus completely on the criminal case in japan and just to remind everyone that the sec press release, they stated clearly that carlos did not take any money but the allegation was that he withheld the information of his full salary because he didnt want japan and france to know about it. It could be interpreted in many ways. I hear a lot oh, your you had band took the money. My husband did not take any money. About withholding information. Yes do you worry this could impact the criminal charges in japan having the sec back this well, yes, of course. I worry about the criminal charges in general in japan because i think my husband doesnt look like hes going to get a fair trial the way they are behaving, the way they are treating him compared to japanese, you know, like the ceo last week he admitted to taking unearned compensation. This is the new ceo at nissan yes and he gets and he gets to resih dignity. And he said he is going to repay the money. And he apologizes, and he goes home to his wife while i cant even talk or see my husband so i think there is a double standard there is discrimination the way my husband got treated and my husband did not take any money this one admitted to taking money. So youre saying subl double standard why, because carlos is a foreigner. Absolutely, i think we see the dark side of japan, inc, where we see in inward closing culture that is biased to foreigners. The other significance of the s. E. C. Complaint is that it really is the first government institution, government outside of japan in the tokyo prosecution to accuse carlos of this fraud, of covering up how much he made so im wondering how you guys are processing that and how you intend to fight that if the s. E. C. Charges come to light in japan . Well lets make it clear, it was the japanese prosecutors that gave all the documents to the s. E. C. And they told them, look into this obviously they settled if there was something very serious they wouldnt be settling and the amount that was settled from what i hear it was not a huge amount. They wanted to put it behind them, the s. E. C. , and carlos wanted to put this behind them to focus on the criminal case in jape now are you feeling about this case that you have been making very publicly and the public has been making that carlos is at the center of a nationalistic plot against him in japan well, it is a plot. You remember when i last saw you i told you its a plt. Now every day we see the truth come out more and more in fact the wall street journal this monday, there was a reporter who said that the general counsel of nissan himself was very concerned that he feels there is a conflict of interest the way the investigation was handled and that this investigation he has doubts about it, about ethically how it was done, because certain people who made a plea bargain with the prosecutors are still in the company and making legal decisions for nissan. So more and more were seeing its a plot. And then the way seiko was treated and my husband was treated. This man did more than my husband. Why didnt he go to jail i dont think he should go to jail but why are they treating him differently him and greg kelly why did they ambush at the airport not ask questionsen tro him in solitary confinement. Do you worry he is cooperating against carlos. We dont know our legal team asked the judge and prosecutors and refuse to answer the question. But obviously there is a double standard obviously because my husband and greg kelly are not japanese they get treated differently. So what do you know about your husbands condition he is on house arrest, after being in sol material confinement. He is combative and he wants to prove his innocence. He knows he is innocent. Thats why he didnt confess to any allegations even though he was in solitary confinement for 130 days and and now he just wants he wants to fight this in court, however they still haventset trial date. I was wondering if you knew when that was happening. They havent set it yet, they said maybe april, maybe after the olympics and it makes sense they dont want International Condemnation about the limp beings about the treatment of my husband how he is trying to globalize japan and he has this thing going on with carlos which doesnt look good. I think they are trying to push him to the side. And we still dont have the evidence we still its been almost a year and they still have not shown us the evidence. How can my husband defend himself . How can he get a fair trial if any havent shared this with us. Have you received any support from foreign governments that you have lobbied and other organization that is you have tried to. Well the Human Rights Watch is you know shocked on our side. There are two governments trying to help out. We want to see more help we want to see concrete evidence it hasnt happened yet its very slow its you know, its cruel its inhumane whats happening the idea that i havent seen my husband in almost six months or spoken to him. Over what . By the way i have nothing to do with the case. I was cleared. Why cant i see him . The only reason i feel is they want to punish him they want to break him they want him to confess to something he didnt do so. I mean its just so sad. Well, thank you for updating us on this story were going to continue to follow it. Thank you. Carol ghosn, the wife of carlos ghosn. Thank you very much for that. Up next the key things every investor needs to watch heading into a new trading day back in a couple of minutes. On ] pilot were going to be on the tarmac for another 45 minutes or so. It also has the highest growth in manufacturing jobs in the us. Its a competition for the talent. Employees need more than just a paycheck. You definitely want to take advantage of all the benefits you can get. 2 3 of employees said that the workplace is an important source for personal savings and protection solutions. The workplace should be a source of financial security. Keeping your people happy is what keeps your people. Thats Financial Wellness. Put your employees on a path to Financial Wellness with prudential. So servicenow put your workflows immhm. Cloud, huh . Your employees must love you. Thank you. Ah, you could say that. So how are things with you guys . Great. Thank you. Thank you, sir. Lunch next week . Terrific. Say hi to the team. Will do. Call my office, i will. Sounds good. Alrighty. Servicenow. Works for you. Well back. Time for the wall street look ahead. Endeavor stet to the make the ipo and Samsung Galaxy fold getting ready for preview. Talent sports, endeavor updating the ipo paperwork today. Lowering the expecting range for pricing to 27 a share. It was so 30 to 32 cutting the number of shares at the range it would raise at 154. Values at about 7 billion. There is rebust dman more the stock at price levels below expect aches thats a according to a source familiar with the plans. The expect aches is this deal will perform well with the main variable what the price its done no doubt potential investors wachgt with peloton stock earlier today back to you wilf. Now back in april we held a special moment of remembrance for the bendable galaxy fold announced to much fan mayor fair and pulled after multiple review units broke. Here is tauz hazleton. I remember it you broke it. I dont think i personally broke it but it broke soon after i held it. Anyway it was live on air. And it it soon broke moments later whether that was my fault or feuds fault and comes back tomorrow whether. It has to go through the wilfred test strong hands. And tomorrow, mike, i mean intraday recovery but closed at off the moment zblum still idling here. And i think we get drat data in the morning. We are out of time. Thats do it for closing bell. Have great night, everyone. Fast money begins right now. Live from the Nasdaq Market site over look new york citys times square this is fast money im melissa le traders are tim seymour, karen finerman, dan nathan and steve grasso feeling the burn investoring slamming the brakes on peloton as it debuts. Is the ipo market showing signs of cracking we din are dig in we have the earnings alert on micron moving lower after earnings alert were we break down the headlines. Beyond loving it micky ds sinking teeth in the meetless craze we have all the juicy details. Dw you write
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