Transcripts For CNBC Closing Bell 20240713

Headlines are moving stocks much higher were going to dig into those. And driving the action this week, media disruption well get the Details Behind hbo max, friday is the launch of appletv plus, and disney plus launches next friday so all of this week on closing bell, were going to take a deeper dive into the strategies, investments, and personalities behind the changes happening in media. Today, well talk to billionaire, ted leansus, the owner of Washington Wizards and capitals about the value of live sports thats all coming up after the bell its going to be a very big show here today and joining us for the hour is stephanie link fr stephanie, it looks like today is kind of steady as she goes, it seems like we have a deescalation of the trade war and fundamentals of earnings actually moving some stocks. You hit it perfectly, actually good start to the week trade tensions seem to be easing a bit. Earnings so far, 50 of the s p 500 have reported. Theyre beating by 2 , i know against a very low bar, but theyre still beating. And most importantly, 2020 guidance, only coming down about 1 and that represents about 11 year over year growth. So can you imagine going from flattish growth this year to 11 growth i dont think the market is pricing that in. Im not sure were going to do 11 growth, but anything better than flattish growth, i dont think is necessarily priced into the market so we have a lot to get through, guys, this week. Its going to be very busy starting on wednesday, with the nonfarm payrolls so a lot to tackle im not doing much sold some dr horton today. Bought a little amazon and a little bit of my last chance trade thats right. Thats a teaser 140 Companies Reporting this week, too, besides all the things you went through. A lot to get through this week and the next hour, including whether or not well have record alltime closing hi highs. On the s p 500, it looks highly likely it is touch and go, the dow wont make it today. Julia boorstin is covering at ts earnings. Josh lipton has details on microsofts big cloud contract win. Robert frank is watching one Luxury Retail mogulsed bid to expand his empire. Julia, lets start with you on at t wilf, thats right. At t shares rising about 4. 5 today on stronger than expected guidance for next year through 2022 also on progress with activist eliot management, which says it supports the approach unveiled by at t, including reviewing the portfolio, the commitment to making no more major acquisitions, the addition of two new directors and a plan to break up the ceo and chairman roles. Revenues falling short of estimates with earnings beating estimates by a penny per share the company did lose at nearly 1. 4 million subscribers between tv and streaming, which was more than expected. Guys, back over to you julia thank you very much, julia. Sorry, wilf. Were very excited its going to be a big show. It is microsoft is beating out amazon and a slew other competitors for a major government cloud contract. Josh lipton has more in San Francisco. Hi, josh reporter so courtney, the contract known as jedi could be wort as much as 10 billion over a decade microsoft today jumping to a new alltime high. No surprise, amazon not happy. Says it was surprised about this conclusion tech analyst Patrick Moorhead says this is a big deal for satya nadella, in part because its a powerful Marketing Tool and nadella can reassure Companies Working in highly regulated industries from banks to hospitals that his tech is secure enough for the u. S. Military, so surely its good enough for them as well. But the fight might not be over. Amazon is reportedly considering a challenge to this award. Guys, back to you. Josh, thanks so much for that stephanie, unsurprising to see microsoft breaking out higher on the day the s p 500 is probably going to close at a record alltime high. And the sector construct today is tech leading the charge its nice to see. Tech is leading the earnings charge, too. Thats whats fueling the better than expected results. But im impressed that amazon has actually snapped back. I would tell you earlier, that i actually added to it, because i thought the quarter was better than the underlying kind of reports. But in terms of microsoft, the numbers initially on are not that big a million for the first two years, could be a billion per year depending whats more important, theres 30 billion more from the department of defense, down the road and so if they can do a good job with this contract, as a single source, that actually is very positive eventually for more money down the road. Is this a bigger win for microsoft or a bigger loss for amazon i think its a bigger win for microsoft, because the rumors were it was going to be dual sourced. So the fact that theyre single sourced, now, i think amazon probably will appeal well see what happens but i do think this is much bigger for microsoft, for sure interesting to see how google does they report after the close tonight. Billionaire Luxury Retail mogul making a bid to buy one of americas most wellknown jewelry brands robert frank is diving into that story for us hi, robert he is known as the wolf in cashmere clothing for his skillet hunting acquisition targets, Bernard Arnault making a 14. 5 billion play for tiffany whose stock is now above that bid. Arnault has become the third richest man in the world by buying up brands and expanding them around the world. Lvmh stock price up almost 50 in the past year, giving him a net worth of almost 100 billion. Lvmh has over 60 brands from Louis Vuitton to dom perignon and fenty by rihanna adding tiffany would help grow his jewelry business, especially in china where tiffany has struggled, but remains a highly popular brand, guys, back to you. This is very interesting as well, because the ceo of tiffany does have a history with mr. Arnault. He does in fact, the ceo, alex boleioio worked for bulgari and theres a board member on it haveny who was a board member of ball garni when he bought it. This would be round two and for bulgari, it worked out really well, so that could be a precedent. Steph, whats your take on this and any read across for how long luxury is at the moment luxury is definitely strong, definitely has momentum. I think the price is too low 15. 2 times ebitda, the deals on average has been 20 times ebitda and theres precedent. Some companies have paid even higher than that if you were to put a 22 multiple on ebitda on tiffanys, i think it can do much higher. And i think the contribution is great. Lvmh is an innovator and tiffany has the global brand name. I think its a good combination. I just think the price needs to come up. I think its kind of interesting, clearly, all of these Luxury Brands are global in nature. But the european one, where the consumer is meant to be week is the one thats acquiring the u. S. On whether the u. S. The meant to be strong sales, of course, globally, but you would havent expected that on the surface of Consumer Companies right now. But tiffanys has stumbled in the last several years theyve really been struggling with sales and margins have really been contracting substantially. So theyre in turnaround mode. And i have no doubt that this management can do it, its just taking longer. So i dont blame lvmh for taking advantage. Theyre a wonderfully run company. It would be a very powerful combination. And lvmh is a dealmaking machine. I dont doubt this will go through now that both companies have acknowledged that at least have been approached i think the price is the big question mark and the street agrees with you, obviously, because look at the stock price today, well above that 120 a share reported price lets turn now to Virgin Galactic, thats moving higher today as well, on its first day of trade here at the New York Stock Exchange Morgan Brennan has details for you. A big day in your space. A big day in my stays, in space. Virgin galactic marking a milestone, becoming the Space Tourism company to go public i sat down with founder sir richard branson, investor, and ceo George Whitesides earlier in a first on cnbc interview to discuss this debut i think its a very big milestone. If the public wanted, you know, to take a little double a little bit in a space, or own a little bit of a space, they can now do so. We got off to a great start, having the share price went up 11 on friday and another 5 today. And yeah, weve managed to completely fund Virgin Galactic through to when it breaks even now, galactic merging with social capital ahead of sophia, which is a special acquisition vehicle. A socalled spat, to raise that capital and go public through this nontraditional direct approach, making him not only chairman of this space company, but a major investor i think the profitability of this business is going to look as good as one of the best Software Companies around. And thats why i was so excited. Youre in the business of hardware, but it looks Like Software and that is very different than many of the other technologyoriented Hardware Companies that have gone public recently so this is a business that at scale will have almost 70 operating margins, which is incredible so in terms of how big this market is, how many people will pay 250,000 for a flight to the edge of space, ceo George Whitesides also saying they think 2 Million People can experience this over the coming year at this price point theyve already got 600 signed up, remember and over time, as they reduce that price, the market will actually be capacity constrained, even with the Space Tourism competitor Jeff Bezos Blue Origin also getting ready to offer their own suborbital flights. Thats over the next couple of years. Longer term, this is a company thats looking at hypersonic travel basically, pointtopoint travel around the earth something that could be a much bigger, greater, longerterm disrupter to things like airplane travel. Morgan, that i particularly look forward to. I bet you do. And i enjoyed your conversation with him about that but back to your point in terms of 2020 target and how many flights to space they expect at that 250 grand price point i guess it hasnt gone through the traditional ipo process to get that forecast of what its trading on right now, but what rough estimates are those valuation multiples in terms of how much the companys worth, based on the listing and some of those expectations for when theyre going to start to see revenue pouring in and i was doing some Light Reading of the almost 600 pages of the amended s4 just yesterday afternoon, going through some of these numbers. Now, keep in mind, service has not begun. Theyre targeting next year. But as you heard those comments from pal happahapatia, its rea about the gross margins, which currently based on the flights they have actually done, they have done some test flights and taken some payloads to the edge of space versus what the cost of those flights are, youre talking margins that are, in the First Six Months of this year, i want to say around 43, 45 but theyre expecting that as this company gets to scale, youre looking at margins of 7 , which is why there is this path to profitability, why they have these forecasts in place and why, quite frankly, even though service hasnt begun, the stock is trading up 2 today after popping when the merger closed friday afternoon. Morgan, thanks so much for that steph, quick question, do you think this is buoyed by the fact that it is this sexy space stock episode anything else . Yes its a niche and its early and i think if hes right on 70 operating margins over time, thats huge. And you want to get in on the ground floor but pick very, very carefully. Because this is very early stages stages very early. Now weve got a news alert on boeing ahead of ceo Dennis Muilenburgs testimony tomorrow in front of congress, phil lebeau has the details wilf, we have the Opening Statement from boeing ceo Dennis Muilenburg whowill be on capitol hill over the next couple of days this is from his Opening Statement that will be delivered tomorrow morning at 10 00 a. M. In front of the Senate Commerce committee. Among the quotes that we have, as we read through this statement, one that stands out is when Dennis Muilenburg says, we have learned from this incident, this accident, the two boeing 737 maxes he says, i can assure you that we have learned from this and will continue learning we have changed from this and will continue changing as you take a look at shares of boeing, guys, i was just at a briefing, a pen and pad briefing with representative Peter Defazio from oregon, who is on the House Committee that will have a chance to question Dennis Muilenburg on wednesday. Theyre not happy with the state of whats happening with the 737 max, with boeing, with the faa and i asked him pointblank, do you believe that there may be some criminal actions here and he said, we just dont know. There are a lot of people we want to talk to who have said, well talk with your committee after we talk with the doj because, remember, the doj, the department of justice is investigating this entire situation with the boeing 737 max. Guys, back to you. Phil, im also just trying to skim read this set of testimony for tomorrow of course, the testimony is one part of it the questions and i think thats more important, wilf. I think the questions are far more important most of what weve read here, weve heard a lot of these statements in the past from Dennis Muilenburg or from boeing yes, they feel responsibility for the 346 lives that have been lost in these two accidents. Dennis muilenburg says in this statement, we own it, thats a phrase we have heard from boeing for almost a year. Tomorrow is the oneyear anniversary of the lionair crash. Whats going to be more important is whether or not we see a level of contrition from Dennis Muilenburg that we havent seen in the past if you go back to the annual meeting, a lot of people felt that Dennis Muilenburg came off as cold and indifferent. Now, from talking with executives at boeing, and when i talked to Dennis Muilenburg, they said, thats not the case at all we completely understand the magnitude of the situation and Dennis Muilenburg does feel contrition but hes got to show that. And if he doesnt show that tomorrow, wilf, you can bet that the senators on the Commerce Committee who are going to be questioning him, theyre going to go after him hard regardless, theyre going to go after him hard, but theyre really going to go after him if he doesnt show a level of contrition phil, its stephanie link you dont think he sounded better this past Conference Call versus the prior two better, but im not sure if hes gone far enough, stephanie. Now, part of that is, and i know dennis fairly well over the years from interviewing him and talking with him, thats his demeanor it doesnt mean that hes not caring and that he doesnt understand the situation here. But the analogy that i use for people is, goback to the gm ignition switch hearings on capitol hill the first time mary barra came to capitol hill, she gave correct answers, very succinct and straightforward answers, but she was it was a terrible, terrible performance in front of those who were questioning her, because she did notcome across as sincere enough. And i understand people will say, look, this is all theater what really matters is whether or not boeing is changing things well, the fact of the matter is, that does matter and whether or not you come across as sincere. And when mary barra came back the second time, guys, much different tenor and tone from her than the first time around so it will be interesting to see how Dennis Muilenburg handles this, not only tomorrow with the senate, but wednesday with the white house. Phil, thank you very much we look forward to your coverage of that. Phil lebeau. Stai still ahead here on closing bell, the busiest week of earnings season, with google, beyond meat, tmobile coming up. Plus, were looking beyond the bundle this week on closing bell with a deep dive on the recently changing media sector ahead, well take a closer look at the lucrative sports media market with monumental sports ceo and nba, wnba and nhl team owner, ted lye leonsis is the monolithic view of emerging markets obsolete . At pgim, we see alpha in the trends driving specific sectors of outperformance. Where a rising middle class powers a booming auto industry. A leap into the digital era draws youthful populations to mobile banking and ecommerce. Trade and travel surge between emerging markets. Every day, our 1,100 investment professionals around the world search out opportunities for alpha. Partner with pgim, the Global Investment management businesses of prudential. Welcome back to the closing bell. Just about 40 minutes left to go and we could see a record close on the s p 500 were going to watch it careful, so the level were all watching to beat is 3025. Lets get a check on individual market mover spotify, reporting an earnings and revenue beat this morning monthly active users were up 30 versus one year ago. Outperforming the guidance the increase was driven by growth in latin america and southeast asia, as well. Spotify is on pace for its best day ever shares up more than 16 . Lets get over to mike for todays market dashboard hi, mike hi, wilf. We have the s p at a new record, as you guys have been talking about. At the same time, the market almost universally expects the fed this week to cut Interest Rates. Is there a contradiction in there . Some are suggesting perhaps there is but if you look at the history of what you would call mini easing cycles. These are midcycle easing cycles, three rate cuts each time from the mid90s and the late 90s, its not very incongruous. Here we are, 1994 into 1995, the fed realized it had tipghtened too much this week, if we get a cut, it would be the third time. And each tim, the market was at or very close to an alltime high this was a soft patch in the u. S. Economy that was firmed up as the fed eased three times now, lets look at the 1998 example. Its somewhat similar, although it came right around the crux of a Global Financial panic this is right here three cuts, as well, before they went on hold for a little while. And this is an alltime high so essentially, theyre just below a high on the third cut. Of course, we know 1999, things blew off to the upside so if you remember, the fed characterized what they were doing as perhaps a midcycle adjustment the market at first didnt like it, but now the market has kind of bought into this potential scenario midcycle adjustment, many easing cycles. Thank you, mike. After the break, a new trend among teens could spell trouble for Makeup Companies well tell you what the visco girls are. If you dont know already, youll get an education, and the impact that could have on the industry and shares of Richard Bransons Virgin Galactic moving higher on its first day of trading. Well talk to the man in the middle of this photo about opportunities in the commercial space race were back in a couplef nus. O so servicenow put your workflows in the cloud, huh . Mmhm. 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. Doprevagen is the number oneild mempharmacistrecommendeding . Memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. Each day our planet awakens but with opportunity comes risk. And to manage this risk, the world turns to cme group. We help farmers lock in future prices, banks manage Interest Rate changes and airlines hedge fuel costs. All so they can manage their risks and move forward. Its simply a matter of following the signs. They all lead here. Cme group how the world advances. Welcome back to closing bell. Time to get word on the street bank of america initiating roku with a buy and a price target of 154 the firm says negative impacts expected from competitors new streaming services are overestimated and that roku will continue to benefit from increasing consumer demand for affordable smart tvs using rokus operating system. Its up some 10 today what a move citi downgrading lululemon from buy to neutral the firm says Market Expectations of a flawless Third Quarter earnings leaves little room for disappointment and a pickup in promos could lead to merchandise margins coming in weaker than expected and Piper Jaffrey downgrading estee lauder from buy to neutral. The firm citing a softening cosmetic Market Driven by teens wearing minimal to no makeup as part of the visco girl trend others include lip glosses such as carmax as well as vans, crocks with tube socks ive been talking about this for years. It was so obvious that this was happening. Youre a visco girl and we didnt even know it. I do carmax, thats why i was confused crocs crocs, im not a big fan of but this makes sense to you, in reality, because of the trends that you have observe i have a genz myself and she has taught me a lot in terms of s, huge. Gies and products they on friday nights, theyll put facial stuff on them, they have no interest in makeup. But i thought they didnt like they want masks, they dont want the skin care skin care versus so you dont need makeup. That sounds sensible. And thats the whole reason why of the downgrade of estee lauder, because they have more makeup versus skin care. And they have more exposure to that trend i dont know about its extrapolating a lot for estee lauder, but the fact is its expensive. Its had a nice run, but im all with the visco girls and its interesting that the timing of the downgrade. This visco girl trend and that Piper Jaffrey teen survey didnt come out a few weeks ago and these were observed trends we saw estee lauder and ulta, last quarter, last two quarters we saw skin care was better than makeup it was an interesting trend. Well see if it lasts. But my genz likes it. Estee lauder down 1. 3 today. Still to come, millions of californians facing Power Outages as wildfires burn across the state. Well get a live report on the latest to control the blazes, coming up. And heres a quick check on bonds. Rates are on the rise with the u. S. Treasury yields moving higher to quick off the week on this monday. Yields on the tenyear note visiting around 1. 847 closing bell will be right back when i lost my sight, my biggest fear was losing my independence. Mmm. Good. So ive spent my life developing technology to help the visually impaired. We are so good. We built a guide that uses ibm watson. To help the blind. It is already working in cities like tokyo. My dream is to help millions more people like me. [spokesman] if youve tried colleg group cheering shed, snhu lets you transfer up to 90 credits toward you bachelors degree. [woman] it doesnt matter how old you are, you can do it, you can finish. [spokesman] finish your degree at snhu. Edu doprevagen is the number oneild mempharmacistrecommendeding . Memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. 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. Welcome back weve got just under 30 minutes left to go of trade and were heading for a record alltime close for the s p 500. Here are the key things driving the action the deescalation of china tension, as both sides remain optimistic on the timetable for signing a deal corporate earnings overall continue to beat low expectations and some companyspecific m a headlines moving stocks higher we will dig into all of those coming up. As we said, as we approach a record alltime closing high for the s p. It is time now for a cnbc news update with sue herrera hi, sue hello, courtney hello, everyone. Heres whats happening at this hour President Trump says the Justice Department will begin a stronger crackdown on Violent Crime in the u. S. He spoke at the International Association of chiefs of Police Conference in chicago. Attorney general barr will announce a new crackdown on Violent Crime, which i think is so important, targeting gangs and drug traffickers in highcrime cities and dangerous rural areas. Some chicago students marching in the street to call attention to the chicago teachers strike now in its eighth day they marched several blocks to city hall, most Holding Signs in support of the striking chicago teachers union. And robert evans, the producer of chinatown, who also helped bring the godfather, serpco, and rosemarys baby to the screen has died he was married seven times, including to actress ali mcgraw as well as former miss america, Phyllis George robert evans was 89 years old. You are up to date thats the news update this hour wilf, ill send it back downtown to you sue, thank you so much. Now, shares of pg e dropping as wildfires in Northern California force nearly 200,000 people to evacuate lets get to jane wells for more hi, jane reporter hi, wifflfred. Im here in healdsburg where the destruction is terrible, but actually its these intentional Power Outages that are affecting more people than the fires are and earlier today, we were talking about a lot of people wanting to maybe get these energy packs, these battery packs for their home, for their energy systems, because even if you have solar, youre still usually connected to the grid. Well, tesla sells a power wall product, which to get with a pair of two for your house, which i guess is the standard package, is well over ten grand. These are expensive programs, especially if you want to add solar. This afternoon, though, however, elon musk tweeted, if youre directly affectedby wildfire Power Outages, tesla is reducing solar plus power wall prices by 1,000 as of today he then added, we dont make much money on this product, so 1,000 actually means a lot. And guys, last i checked, tesla shares were down just a smidge on the day back to you. Thank you, jane at least hes doing that 1,000 for those immediately impacted but still a very expensive proposition. Weve got about 27 minutes left to go. Lets send it over to mike santoli for his second dashboard. Hi, mike courtney, hi. Weve been talking a lot about this rotation toward more cyclical, some economically geared sectors, and it has been happening, both today and in recent weeks take a look at this chart from jim paulison he points out that the cyclical sectors of the s p 500, thats financials and industrials, Consumer Discretionary materials, now represent a relatively small portion of the overall index. You can see the weighting right here, its around 34 . That really compares to really kind of almost bear market lows in previous episodes so what hes basically saying is its almost a scarcity of cyclical stocks to buy, maybe the upside for those, therefore, is higher if we get a lot of confidence that the economy is reaccelerating another way to look at it, though, those stocks themselves will have a hard time driving the overall s p 500. Because you have the defensive, the yield stocks, the cyclical Growth Stocks that really represent a heavy proportion of the benchmark now, guys. Mike, thanks so much. Mike santoli there much more from him to come we are on record close watch for the s p 500. The record we want to beat to get there is 3025. Right now, as you can see, we are well above that at 3042. Coming up next, weve got your last chance trade. Plus, Virgin Galactic becoming the first ever publicly traded commercial space Flight Company. Coming up next, well talk about the future of the space race with a top investor in the field. Announcer cnbc sector sort is sponsored by sector spider etfs 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. As your life grows, so do your needs. 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 . Virgin galactic becoming the first ever commercially traded public space Flight Company today. For more, lets bring in peter deamandis, longterm space investor through his fund, bold Capital Partners thank you for joining us good afternoon to you. Its a pleasure really exciting today. Indeed. And Virgin Galactic stock trading up both friday and today, off the back of this. Do you believe the projections that they will make commercial space flight a reality for many travelers by next year well, this was the whole purpose of the xprize foundation, the original xprize, 10 million for the first privately built spaceship and Virgin Galactic as a result of spaceship one, and that was the mission. To drive the regulations to change, bring capital in and open up private space flooiightr everybody. And Virgin Galactics seat price is something that a lot of people can afford. So rather than just a couple of people privately per year, we hopefully will see hundreds, eventually thousands going you know, peter, obviously, theres a lot of interest in this area. Its very exciting for a lot of reasons, science and otherwise, but are these Companies Truly investable companies for most people so, people invest for different reasons, right you invest because you want to be part of the adventure and you invest because you want the value of your investment to go up i think everything we hold of value on earth, metals, minerals, energy, real estate are near infinite quantities in space. I truly believe the next trillion narrow arie trillionaires will be made there. Its the equivalent of the pioneers coming to the americas and looking for Business Opportunities and whether its the equivalent of land or tobacco or lumber, these are, you know, for me, the earliest elements of space are going to be tourism those of us like myself who grew up in the 60s, passionate about opening up the space frontier will have a chance to go and do it ourselves so one of my companies, zero g did weightless flights, he took steven hawking up, but the idea of going into space is what Virgin Galactic holds the promise for. So thats whats exciting. And i think there are millions of people who would love to have that adventure and the price is, you know, within reach and will hopefully come down over time, as we fly more and more. And then youll have other companies, spacex, blue origi l and others that begin, but i do believe that Virgin Galactic will be the first to fly people. Ive got my ticket and im excited to go. But peter, do you think, really, that number is correct millions and millions of people that want to go into space, just purely for the sake of it, or does things have to evolve a little bit more before likes of Virgin Galactic have truer, wider, longterm purpose there was some discussion today about hypersonic travel from placetoplace on earth, or of course, as you mentioned, some of those other Space Companies who want to actually get to another planet altogether. So, what i think the numbers are like 50 million millionaires on the planet, maybe the number is higher than that so the question is, what percentage want to have the chance to go on a unique adventure . And its going to be the price point and what people can afford i do believe that eventually, millions of people will be going into space i think that is its difficult for us to believe that now, but if you went back a hundred years ago and said, listen, tens of millions will be in the air at any one time, we would not have believed that i think we have to go from Adventure Travel to practical travel and yes, pointtopoint travel or getting what spacex wants to do to get to the moon, get to mars, destination locations, but its the beginning it truly is the opportunity for us to start becoming a multiplanetary species. So those of us who remember apollo and the space shuttle, this is our chance, finally. So im excited about it. And well see what businesses flow as a result of this in the years and the decades ahead. But thats why we started the xprize in the first place, to make it possible this is our first xprize team to actually have a public exit. Were super happy that a 10 million prize drove 100 million in team expenditures and now a multibillion dollar industry. Thank you for being with us here today peter deamandis, what a day for space. Its exciting by the way, our next xprize, were hoping, since im here in california, already a wildfire xprize, to put these fires out faster and cheaper than ever before, instantly. Thats the goal. That is something that definitely needs to be solved. Thank you, peter well, about 18 minutes left to go. Here we are, stephanie, what is your last chance trade the f corp. Ive pitched it before, but the stock is down 10 in two days after an Earnings Report that was mixed, admittedly, but i dont think the longterm story changes at all in terms of global brands, led by vans, which we were just talking about. Also the northface, and the earnings algorithm has not changed at all 7 to 8 Revenue Growth over the longterm, 8 billion Free Cash Flow so in that same space, youre now getting at a discount to the group. So im going to buy it i bought it this morning, i bought it on friday. Ill probably continue to buy it i like it. I was surprised to see the vans trend weakening a little bit. 16 versus 23 last quarter however, they did say on the call, as im sure you heard, september and october saw a pickup in acceleration i dont think that brand is dead by any means you dont want to worry about that got it thank you, stephanie here we go, we have about 17 minutes to go before that opening before the closing bell, rather the s p is on pace for a record close. We are at 3040 and change. Coming up next, uninterrupted coverage of the final minutes of trade. Well take you inside the rk zone. Thats when closing bell comes right back you should be mad at airports. Excuse me, where is gate 87 . You should be mad at nonseasoned travelers. And they took my toothpaste away. And you should be mad at people who take unnecessary risks. How dare you, hes my emotional support snake. But youre not mad, because you have e trade, whose tech helps you understand the risk and reward potential on an options trade its a paste. Its not liquid or a gel. And even explore whatif scenarios. Wheres gate 87 . Dont get mad. Get e trade and start trading today. Washington ylan mui has those details the house will now vote on thursday on its impeachment inquiry into President Trump this move comes as a reversal for House Speaker nancy pelosi who just about two weeks ago said that impeachment inquiry vote would not be needed, is not required by the constitution now she is saying that she wants to vote to affirm this impeachment inquiry. She said that they are taking the step to eliminate any doubt as to whether the Trump Administration may withhold documents, prevent witness testimony, disregard duly authorized subpoenas, or continue obstructing the house of representatives she said no one is bf the law. Now, taking this vote does allow the house and democrats to combat a key talking point that President Trump and Congressional Republicans have had, which is that theyre doing this impeachment inquiry in secret this vote would also lay out the procedure for opening up hearings in the future, as the house continues its investigation. Now, House Speaker nancy pelosi setting up a pivotal vote in congress on thursday on the impeachment inquiry. Guys thank you very much, ylan, for that Important News alert. Here we go we have less than 12 minutes left in this trading day we are now in the closing bell market zone. This is commercialfree coverage of all the action going into the close. Cnbc senior markets commentator mike santoli is here to break down the crucial moments of the day and we have stephanie link from nuveen here as well. We are on record alltime cloegs watch for the s p 500. Bob pisani is here on the Stock Exchange floor new highs for the s p, but not a lot of big breakouts a small smattering banks have been doing well since yields bottomed a few weeks ago. Earnings have been out here, pnc financial, new high every day. Bank of america, jpmorgan, but thats about it. Im waiting for some of the other regionals to break out, not happening yet. Small smattering of industrial stocks at new high illinois toolworks just out with their earnings a short while ago. Thats a new high. Cummings, dover, Sherwin Williams at new highs. I dont think were going to get a lot of breakouts here unless we get a breakout on the china trade talks. Then youll see a lot of those industrials at new highs very small group of tech stocks breaking out here. Semiconductor Capital Equipment stocks have been doing well. Lam research had a terrific report last week kal 10 copper had a new high apple has to hit a high virtually every day. That has been the new high Market Leader now for the past two weeks. Guys, back to you. Thank you, bob. Still under 250 a share, but getting close for apple. Tiffanys stock is also popping, hitting a fresh 52week high today and leading the s p 500. Reports suggest 120 a share and nearly 14. 5 billion is trading up 31 at 129 per share this would be the largest acquisition to date by lvmh, which is owned by frances richest man, Bernard Arnault diamond signature jewelers is up slightly today, moving in symphony with stiffnys stock. But other names are moving as well perhaps, mike, i dont know, theres some hope that theres consolidation coming and other deals to be announced with these other names moving up. It seems a little bit of a connect the dots move. Although, theres also so many specific factors, it seems, by this potential bid by lvmh, some relationships with tiffany and people there it seems like a relatively weak asset. Im not sure exactly what it says but it does say at least in some quarters, ceo confidence is fine if youre willing to take a bet on a company as leverage to the consumer and highend consumer as tiffanys is, it shows a little bit of confidence thats a good point and its not a small acquisition, should it actually happen weve got eight minutes left to trade at the moment, the s p 500 set for a record alltime closing. The nasdaq a point or two away from one itself. Lets get to josh lipton, whos been looking at the story of fitbit, which is surging today so, wilf, cnbc confirming that alphabet did make an offer to buy fitbit and fitbit is soaring on that news it isnt clear how much the offer was for, but the deal would make alphabet a player in wearable fitness tracking, competing against bigname rivals like apple. As for alphabet earnings after the close here, were looking for q3 eps of 12. 42 suntrusts youssef sully says add searching trends remain very strong in the quarter, so he expects net Revenue Growth of more than 20 . But also emphasizes this company is on investment mode on everything from the cloud to sel selfdriving cars. He sees eps dropping 9 year over year. Josh, are they already a player in the Fitness Software space . Google so the big deal here, wilf, would be that they obviously licensed their os, their operating system to other players. But this would be a whole new ball game for them to get into smart watches for this way for fit bit, a big move, too that stock has been under a lot of pressure as that stock tries to compete with apple. You get a bigname company with the kind of cash that alphabet has behind you, its a whole different story, obviously josh, thank you steph, whats your take on this one . Its not a bad concept on wearables, but i would much rather see them make a big acquisition in cloud thats only 8 billion in a run rate revenue basis right now so theyre definitely a distant number three in cloud. Thats why i want to see the m a for this company but right now, its all about sites revenue 20 higher, and margins, we know theyre coming down are they going to be down more than 200 basis points . That is the key. A lot of things to watch in that report, especially for alphabet and that vivid news gave us one more thing to watch out. Shares of at t hitting a 52week high in todays session after reporting earnings this morning. Julia boorstin has more on that. Hi, julia. Courtney, thats right. At t shares rising off the companys betterthanexpected guidance through the year 2022 at t unveiling a threeyear financial and Capital Allocation plan thats drawn support from activist eliot management. The stock up 4. 5 while revenue fell short of projections, dropping from a year earlier, while earnings beat expectations by a penny per share at t did lose more streaming and tv subscribers than expected, down by nearly 1. 4 million in the quarter. Now, coming up after the bell, well see how tmobiles Subscriber Base is faring. It is expected to grow revenue by about 4. 5 and earnings 3 from the yearago quarter. And analysts project the company will add nearly 1. 4 million mobile subscribers back over to you julia, thanks very much mike, i would guess at t giving tmobile that little bit of a tougher setup today ahead of its numbers. Yes, it would, obviously. Theres sort of oneoff factors with tmobile anyway, but i think the gesture of at t of financial discipline or refocusing on some of the things that matter to investors are part of what youre seeing in the stock. We are about five minutes left from the close. We are on record close watch s p looks set to hit one nasdaq just shy of it at the moment coming up after the close, well also get results from beyond meat and leslie picker is having a look at a preview of that. Leslie not a bad day to report analysts are expecting beyond meat to turn a profit of about 3 Cents Per Share with revenue of 82 million. That stock, though, has faced some pressure, cut in half frits july peak on concerns about additional share supply hitting the market, which hampers beyond meats scarcity value. The last time beyond meat reported quarterly numbers, if you recall, the stock took a nosedive after the Company Announced a secondary offering tomorrow, beyond meat will release nearly 49 million shares from their lockup agreement. The company may need a Strong Enough beat today to compensate for some of those share supply concerns although that stock up about 4 heading into the close, guys thank you very much, leslie that stock has been up its been down but of course, like sht about in half from its highs, at least. I fear if you have a good quarter, youll have sellers into it. If you dont have a good quarter, you might have the sellers wait for a little bit. Im not sure what im rooting for at this point. I want to hear about some of the deals like with mcdonalds and wendys and the other companies. Thats going to be more important from the longterm strategy is profitability important at this point if it turns that or if it doesnt . Its a good sign, for sure. But the expectations are that they will. Next year is the bigger jump from this year, for sure all right well, Mirati Therapeutics is gearing up to present the first data on its cancer drug this afternoon. Meg terrell has more details on this this is a classic biotech potentially binary event Mirati Therapeutics is developing a cancer drug that competes with one from amgen and the stock has traded largely on reactions from amgens data going back to the big conference in june. Today at 4 20 p. M. Eastern, well see miratis first big conference on its drug le leerink has the biggest potential moveses up 70 on good news, down 60 on bad. Just a few minutes away and well bring that to you. We have three minutes left of trade and we are just off a record alltime closing high for the nasdaq the number to keep an eye on for the nasdaq, 8330 we are just four points below that at the moment the s p comfortably set for a record alltime closing high the dow still around a percent or so from its own level mike has been looking at the market sbernls the index has been levitating all day but breadth has lagged a little bit take a look at New York Stock Exchange up and down stocks, its not that far above halfan half which shows you theres a lot of the recent winners being sold. If you looked at the stocks in the red today, its a lot of defensive stocks, home builders, some of the stuff thats really been a winner. And now also take a look, just in terms of style. The high beta against low volatility these etfs are an interesting Risk Appetite gauge. Really outperforming today as well as over the last week that tells you the flavor. But also, the vix has been stubborn its right around 13 it has not given you new lows for this run, even as the s p is hitting a new record it shows you, people are a little wary of the idea that this new high might not be something to buy with both hands. Well see how that goes. We have two minutes left to go and well send it over to Rick Santelli with a check on the bond market for us twoyear note yields are up two basis points, but tens settled at 180 on friday, theyre up four basis points as a matter of fact, look at the oneweek chart finally we broke above that 180. If you look at the chart starting at the last fed meeting, we were at 176 when the fed eased. We are now higher, as are 30s. Final, monthtodate of bunds, they started at minus 57, they closed at minus 33 they have been firm and moving higher frank holland, we were flirting with history, we just couldnt seal the deal. Hey, there, you know, youre right. The nasdaq on pace for its fourth positive day, just this close from a record close. Microsoft, the best performer after securing that 10 billion jedi Cloud Computing contract from the pentagon. However, amazon is expected to challenge it chips and tech stocks really trading higher today in fact, the smh hit an alltime high today and other tech stocks like align, lmd, kla also getting a boost. Transports on the other side of things csx, one of the worst performers in the nasdaq 100 after reporting lower weekly skrooumg volu volumes. We closed friday at 1179. Got as high as 12. 93 and its well off of that right now 11. 89 so a little bit above where we were on friday regardless, the public loves space in general a lot of retail interests, and they like richard branson, as well youll hear a lot more about space in the coming months and years. And theres the closing bell. The s p 500 closing at a record high, 3039 s p 500 up 127 points. Good afternoon. Welcome to the closing bell. Im wilfred frost. And im Courtney Reagan in for sara eisen, along with mike santoli, cnbc senior markets commentator. Lets check in on where the market closed, at record alltime highs for the s p 500, eclipsing the 3025. 9, that was the most recent record high hit on the 26th of july this year. The nasdaq, just a couple och points off its own record high the dow and the russell still a little way from their levels about half a percent of gains for the dow and s p, the nasdaq up a full percent, tech and Communication Services the bestperforming sectors. Its going to be quite an hour youll want to make sure to stick with us, because well get earnings from alphabet, beyond meat, and tmobile well break down those numbers as soon as they cross. Joining us to talk about the market day, stephanie link, head of Global Equities research at nuvee next shes still with us, along with sylvia debelanski. Mike, here we go, a record closing high in the s p, not quite for the nasdaq a record for the s p and also, it did it in the way this rally has proceeded all the way around very orderly, i dont want to call it a meltup, but its essentially a relaxation of some of the concerns that we were in late summer. Earnings, just fine. I mean, not great, but definitely plausible that this is a trough in earnings. Growth might reaccelerate. Youll get a third federate cut, most likely this week. And that, i think the market is now saying, might be enough to kind of allay these fears that were at the end of a cycle. Stephanie, whats your take in terms of the fact that tech has led this higher once again today . Will that have to be the case to see us push higher again for the rest of the year i think it has to participate for sure it cant crumble, thats for sure its 26 of the s p 500 in terms of market cap, market weighting. But ifthese other cyclical sectors continue to improve, i think thats a very healthy rotation and will lead to a healthy market environment one interesting thing about earnings so far, weve seen capex grow 3 . I think capex numbers have bottomed and thats a very positive development in the marketplace. Thats something you were watching along with i. T. Spending zplp thats exactly right. A key look for you for some time thats a positive. Sylvia, what about seasonality. Were in this period of time where the market does tend to go higher what from i understand, the last couple of days, among the strongest days of the year seasonality is a big factor now, and were seeing that in tech and the Consumer Discretionary, like amazon the shoppers are out there spending and i think its going to show up in Apple Earnings and some of the other big tech names, as long as as well as some of the Consumer Discretionary names, as well. You wrote earlier, a subtraction of all fears nothings positive, in their own right, but none are negative probably not the most exciting movie but we were worried about the yield curve being upside down. Were worried about these signs that recession was right around the corner even the trade thing, its kind of gone to the side. I dont think you needed a big deal in detail, but you just needed a deescalation those things have essentially drained away from the market and its allowed some of the more beaten up parts of the market to come back. I dont think it makes sense to think about it as a zerosum game its either growth in defensives or value cyclicals a lot of things can work, and i think you have very low volumes, but also no real selling intensity. I put all of that up against the pattern of hitting a new high with a fed meeting the breakouts to new highs have not lasted very long i think thats the history that has to be proven wrong if this is going to last you should mention that beyond meat is trading lower after hours. Well have those earnings in just a moment. Tmobile eps looks like a beat sylvia, sum up your take on earnings season thus far i think its as mike said, i think its just fine weve definitely seen some standouts in earnings season and i think today will be really interesting. Well see if some of these some of the positive momentum comes into tmobile and comes into apple Going Forward but its been just fine. It shows us were probably not heading into a recession the economy is plugging around china trade tariffs are looking a little bit more positive and i think thats keeping things going through the rest of the year sylvia, as we looked at the movers in october, some of the big contributors for the s p 500, tech and banks. Do you think those are going to be the names that are going to continue the leadership . I think tech is looking pretty good to continue the leadership you know, we heard this news about microsoft getting their defense spending bill for 10 billion. They had the 11 dividend, the 40 billion buyback. You know, apple is hitting alltime highs again, the iphone 11 is looking pretty good. Some of these tech names are just continuing to rally and push up the index. So we have to keep looking at it and expecting positive results mow. Alphabet out now is trading down 2. 5 . Looks like an eps miss well have all of those Earnings Report, a deep dive into each of them in just a moment. Mike, the other factor for the market today, you mentioned it, with the expectation of a rate cut is a steepening of the yield curve. In the longer end, yields are staying up and banks have enjoyed a bit. Absolutely. Banks are definitely taking part in that. And if you got some kind of message from the fed that theyre on hold and no more rate cuts to come in the foreseeable at least several months, banks will probably take that well and implicitly, the bond market is saying, we think that they maybe stuck the landing here, because longer term yields are suggesting were going to get a redeceleration in growth this all can change. It just changed over the last two months but right now, thats pretty much the takeaway. Lets get alphabet numbers. Josh lipton has been diving into them for us. Josh alphabet reporting eps here of 10. 12. The street was at 12. 42 revenue, though, 40. 5 billion analysts had modeled 40. 3 billion. Google properties revenue, about 20. 6 billion. Google ad revenues, 23. 9 billion. Google other revenues, around 941 million about 22 of google ad revenues. Paid clicks looks like it jumped year over year, 18 . Cost per click down about 2 guys, back to you. Okay, josh, thanks so much for that mike, looks like a slight miss in the properties reverences, but clearly the bigger miss is on the eps line and thats probably whats moving the shares without a doubt that eps estimate had come up over the course of the quarter, too. So i do think that maybe in that respect, people were leeng in the direction of, it was in the bag. But, yeah, you have to look below the surface always, though but if you look and adjust for the uber markettomarket, thats a 1 to 1. 5 billion hit. So the headlines earnings numbers will look worse. If you adjust for it, it looks a lot better what i want to know is about the margins. I think sites are fine, but the margins are a big deal i think that headline is a little its a little misleading and cloud, i think josh was saying, the segment that includes cloud, 6. 4 billion last quarter, was at 6. 18 all the reason they have to do acquisitions in cloud because they are falling behind for sure. Microsoft is at amazons at 35 billion. Microsofts at 20 billion and google, alphabet, is at 8 billion. They have to do something and they have the cash to do it. They do thats the frustrating part but fit bit, they definitely have the cash to buy as well sylvia, whats your take on this i think we are looking for a 4 growth in eps and we didnt see that, so thats a little bit disappointing. But ewe have to see what comes out now. They could announce a big repurchase i think were hoping to see that google would take more of amazon and microsofts business with the defense announcement this morning, they sort of didnt get that so i think it remains to be seen theyve had awesome growth in cloud, with youtube, with ads, although its not as high as expected, it is going up so it remains to be seen how it is for the rest of the year. I believe we now have tmobile earnings. Those are out and Julia Boorstin has the numbers for us hi, julia. Reporter hi, courtney. Earnings beating estimates coming in at 1. 01 per share thats 5 cents better than analysts estimates. Revenues missing estimates revenues 11. 06 billion versus estimations of 11. 33 billion. This is a key metric of customer growth, well better than expected 1. 7 million net customer additions versus 1. 37 million, which was projected and the company also raising its guidance for the full year saying for the full year 2019, they expect between 4. 1 and 4. 3 million net additions. Also raising the bottom end of the earnings guidance. It looks like the guidance for q4 is strong thank you very much, julia. Steph, what do you make of these results. The guidance is pretty good, both for the net additions you have to wait to see what happens there. Because if it doesnt happen, theres only a 30 to 40 chance it doesnt get approved, fit doesnt, does that mean that tmobile a takeout candidate stock is up 29 on the year. Its had a nice run, too so for it to just hang in here today, thats very telling eps and net ads very strong, but it was up already off the session of at t doing similar positive upgrades to guidance, which is what tmobile matched today. Lets get to beyond meat beyond meat reporting its firstever quarter of positive negative income here eps of about 6 cents per diluted share versus the 3 cents that analysts were estimating about double on the bottom line. On the revenue front, 92 million also a beat, compared with 82 million that analysts were expecting here. They also raised their guidance for fiscal year 2019 now theyre expecting net revenue to be in the range between 265 million to 275 million. That compares with the 240 million that was their previous expectation. They say they dont provide guidance on net income, but clearly moving toward profitability for this company, or now have reported profitability. But as you can see, the stock is down more than 6 in afterhours trading. Were digging through the filings or the Earnings Release to figure out exactly what is causing some of this selloff but as you know, this has been a big performer since its ipo, so we get back to you with what we learn. Back over to you leslie, thanks very much for that mike, been a big performer since the pullback of late the headline comes out, fullyear guide, 6 to 6. 5 million market cap even a reminder that if its made a little bit of a positive net income, its valuation is extreme. If the stock has to sink or swim based on the actual numbers that you have right out in front of you, its not going to work it has to be the size of the overall opportunity. I would also point out, you say a pullback, it was 250 or something at the highs it has been a little bit of immune to the new kind of distribution and partnership announcement, so i do think theres a little fatigue in the story, mostly because of the expectation of new supply of shares coming out. Thats probably where its trading off more than anything else but it seems like a pretty moderate response all in all a reminder, of course, that the lockup expires, allowing some sort of 80 of ipo shares coming out there have been other good announcements recently tesco in the uk taking them on as well. But its just the valuation, from where its i think its exactly what mike just said, fatigue is the perfect word for it. We have heard all of these partnerships, the stock has done well, its impossible to valuate this company they only have a 2 market share anyway you know theres a great addressable market, but its got to take time its got to grow into its valuation. Its got to grow substantially sbi into its valuation to be justified. Its a concept stock, a cult stock, and those are dangerous sometimes. Sylvia, there is only one real competitor at this point. Impossible foods does that give you any room to get excited about this stock i think it depends. Well see what happens tomorrow when the backers cash out, if they cash out and the stock price goes down, it might be a good time to get in. It is three times the ipo price. So it is one of the more successful ipos. I think what it will come kodown to, is it better than impossible foods . Does the faux meat patty taste better than the other one and will people adopt it into their diets. Its at mcdonalds, kfc, marriott, tesco. Lets see if its a shortlived thing, whereas if its actually a revolution or evolution of eating these meatless patties. Steph, top thing youre looking out for in the call for google i want to know what theyre doing with their cash. I want to know, are they going to up their buyback. They did last time and they have a very good valuation going on right now. Whatter th are they going to doh their cash m a and buyback. Google is down, dragging facebook down about 0. 8 afterhours, as well stephanie links, sylvia, thanks both very much for joining us. Up next within an alphabet shareholder will join us to react to those results which are dragging down the share price. And later, tech entrepreneur, ted leonsis, the owner of the capitals and the wizards joins us to discuss sports, media, and streaming. Were back in 90 seconds [spokesman] if youve tried college but never finished, group cheering snhu lets you transfer up to 90 credits toward you bachelors degree. [woman] it doesnt matter how old you are, you can do it, you can finish. [spokesman] finish your degree at snhu. Edu welcome back shares of alphabet trading lower by 3 after reporting earnings moments ago. Lets bring in ali mugalai and tripp miller for their reactions. Ali, why is it trading lower probably a miss on the bottom line thats probably only thing that i can see. What i would say is the revenue was very strong. Youre talking about a 20 growth, which many actually doubted after q1 it looks like their advertising remains strong and the other bets so i think theyre having a pretty theyre pretty successfully, actually monetizing youtube further and capitalizing on that mobile search i think it looked pretty good from the top line. Tripp, your take . Its very similar we think that they did excellent on the top line. Its a bottom line story it looks like it was heavily affected by the change in uber on the valuation there but were pretty pleased with what ive seen so far, from a segment standpoint we think theres a lot of opportunity in health. And i think thats something thats been underreported, is how much theyve bulked up on the leadership side of their health business. Thats coming into view a little bit with their stories on fit bit. But at the end of the day, you know, its a rounding error when you look at 120 billion in cash and 20 plus billion in Free Cash Flow. We would like to see them do more with that cash, ramp up the buybacks, 20 billion authorization last quarter we think theres a lot of opportunity to return value to shareholders and hopefully tomorrow, if the stock is down, theyll go and buy back some more stock pretty aggressively trip, what about using some of that cash to make some plays in the cloud space is that something you would like to see the company do . We do we would love to see them grow that we think theres a tremendous opportunity among the players in that space you saw last week, both microsoft and amazon slow down a little bit in their growth rates. But versus the rest of the businesses that they have, this is a segment thats still growing fairly rapidly and we see a big opportunity not only over the years, but over the next decade there. We think strategically they could deploy their capital, a lot more wisely than just sitting in cash. But cash is oftentimes a very nice thing to have and we believe longterm, that theyll do right things with that cash. Ali, how are they doing in cloud compared to amazon and microsoft . Well, compared to them, of course, theyre still the number three player, but in terms of market share gains, in terms of taking market share away from the two other players, we still think they have a long way to go but as your other guest mentioned, i think its a very attractive mark. We actually have them growing at a 45 the next few years. So we think theyll make some traction on that in terms of acquisitions, on the cloud front, were actually waiting to see these guys continue to invest to enhance their sales force on the Cloud Business i think thats the most important thing. They brought tom over and theyre bringing on traditional former Enterprise Software executives and salespeople so i think thats in our opinion, thats the best way to strengthen their cloud side of the business and then after that, hopefully, you know, a few years down the road, hopefully allocate a little bit more capital towards allocation of Cloud Businesses trip, theres a been a little bit of a theme running through the research and commentary on alphabet, that it should be viewed on a sum of the parts basis, whether you want to take youtube. Some of the other bets, cloud, add it all together, put it, a market pure multiple on it all of a sudden, you have a higher stock price is that valid at all, with really no clear line to an idea that google might ever really split itself apart in that way i think its one way to value the business and it certainly helps to look at a business multiple ways when you consider investing in it certainly on the sum of the parts, we think a Division Like youtube is heavily undervalued and there are other bets thats burning through several billion dollars a year in cash we think at some point could pay off bigtime for them. So when you think about the business that way, theres a lot of value in it we tend to look at the Free Cash Flow of the business thats growing and very compelling, although as value investors, we tend to not want to go buy stocks at 52week highs like we saw earlier today. For us, its another way to look at the business, youre correct on a breakup value, but we tend to really focus on the Free Cash Flow when thinking about a business like google ali, how much political and Regulatory Risk is priced into the stock at the moment . Thats actually tough to say. I would say, because it really depends on how the previous or how the antitrust acts are actually interpreted these days. As you know, the sherman act and the clayton act. So if the judgment is going to be sticking with precedence, which basically says, you know, we dont want to see any indications of too much pricing leverage and at the same time, lower quality of service, then thats in favor of alphabet and google because they certainly have enhanced their quality of services and theyre certainly not charging us anything so from that standpoint, i think its positive. But that remains to be seen. I just wanted to make one comment about the sum of the parts that you mentioned lets not forget that i did agree with most of the things that your guests mentioned, but lets not forget that nearly everything that google is providing runs on one platform so if youre breaking up these different assets and or these different services, some of the parts would be one way to value it but we should also take into consideration any value destruction that may take place. Because, again, most of these are being operated on one platform thank you both for joining us, gentlemen. Were going to have to leave it there. Ali and trip coming up next, much more on beyond meats latest results the company beat, but the stock is now down almost 8 . How should you be okg loinat that stock were going to break it down after this break welcome back weve got breaking news on Mirati Therapeutics. Meg terrell has the details. These were highly anticipated Clinical Trial data out of a Cancer Research conference theyre coming in and mirati stock is higher on these results. People were especially looking for how this drug did in nonsmall cell lung cancer. In that, they are talking about just six patients that they have so far in this trial and three of those six showed whats known as a partial response. Not going to go into the details of that, except to say that is similar to the data weve seen so far from a competing drug from amgen, and that is generally the benchmark that investors were looking for here in order to consider that a positive result from mirati. And the stock is up about 18 there. Additionally, some initial responses im getting from folks on the street now say, it doesnt appear theres any major safety concerns with the drug, too, so that looking good for mirati well, shares of beyond meat sliding around after reporting earnings moments ago the stock has been on a roller coaster this year since it debuted in may, down more than 60 since its summer highs, but still up more than 300 since its ipo. For more, lets bring in brain davidson and kate cox prp if you look at this quarter, they did turn a profit and so many of these ipos, thats been the problem. Weve seen this rocket higher growth when it comes to revenue, but no profit. How much does that mean to you here for beyond meat i dont think its insignificant. Certainly came in ahead of expectations, including my own the profitability ramp is certainly something to be encouraged about although i would say, it was largely expected, given the number of new account wins and tests that have evolved over the course of the quarter. But i think going into this mornings earnings call, the folks will be focused on the Competitive Landscape and the lockup which expires today kate, it seemed like for a while there, we were hearing about a new partnership every day or every other day for beyond meat. How do you evaluate those Business Opportunities i mean, what does that really mean for beyond meat to have that distribution . Well, i think its important in the sense that it increases customer awareness and market ubiquity but its also kind of worth remembering that not every partnership that is piloted a beyond product has end up putting it on the menu as an item officially. Tom hortons would be one of those partnerships and back in the summer, i said that mcdonalds was the holy grail of partnerships with beyond meat and we didnt know what was going to happen last month, mcdonalds announced that it was going to, in fact, pilot a beyond product and thats a big deal, but its not a slam dunk. We dont know what will officially happen, if it will become an official menu item, if it will become region specific the more people can get access and make their own decisions about it, thats a good thing. But there are far more competitors in the landscape than there were even three months ago so whats your point . Things are going well for them or badly for them . I think things are going well as long as were talking about this just as a single product. But i think what were seeing in some of the volatility on the stock is people are beginning to ask, whats the long game here this sector is projected the plantbased food sector in general is projected to hit between 15 and 40 billion over the next decade. So where do you go after three quarters with saa single product or a few products . Is there more to the beyond story, beyond that is there more to beyond and beyond brian and kate, thank you very much. Thank you still to come, its a busy season for media disruption with new entry from apple to disney well have a live interview with ted leonsis, who was an early investor in aol and google and now the billionaire investor owns the capitals and the wizards and well get his take on the value of live sports in the media ac aspe,mongst many other topics thats moments from now. When i lost my sight, my biggest fear was losing my independence. Mmm. Good. So ive spent my life developing technology to help the visually impaired. We are so good. We built a guide that uses ibm watson. To help the blind. It is already working in cities like tokyo. My dream is to help millions more people like me. Welcome back time for a cnbc news update. Sue herreras got it for us. Hi, sue. Hello, wilf. Hello, everybody in a letter to fellow democrats, House Speaker nancy pelosi says the house will vote on thursday on a resolution affirming the trump impeachment inquiry. It will establish procedures for public hearings in the investigation and will set Due Process Rights for the president and his counsel. Defense secretary mark esper says the u. S. Will reposition forces to secure oil fields in syria. This after the u. S. Forces raided the syrian compound of isis leader, Abu Bakr Al Baghdadi over the weekend. Esper says the oil fields funded al baghdadis terrorism. At the height of their rain, these oil fields funded its terror u. S. Troops will remain positioned in this strategic area to deny isis access to those vital resources. And an historic win for new England Patriots coach Bill Belichick on sunday. He became just this third nfl head coach to win 300 or more games, which includes both the regular season and the playoffs. George halas won 324 games, don shula logged 347 wince congratulations to him that is the news update this hour wilf, back downtown to you sue, thank you very much. Grub hub shares plunging after missing wall streets estimates. What are you looking at with these numbers . Theres been a controversial stock. They also had pretty poor cash flow guidance for the coming quarters its been a little bit of a case among short sellers and there are a lot of them in grub hub. Its about 22 of the shares are short, that its really not a scaleable business the economics of this food delivery kind of goes to the customers and the restaurants, not as much to the delivery service. Of course, uber eats is in there. Its very locally competitive and i think the company has more or less confirmed that that the competition in this area has become more intense delivery is the big war space for a lot of those restaurants that stock down more than 20 . Alphabet also under pressure after a huge profit miss beyond meat beating wall streets earnings estimates, but the stock sharply lower because investors were disappointed by its fullyear sales outlook. And tmobile beating on the bottom line but missing revenue expectations shares of beyond meat down about 7. 5 lets get back to josh lipton for more on alphabets results hi, josh so, courtney, just got off the phone with alphabets ceo providing a little bit more color about the quarter. She described this as a noisy quarter. Said in her words, there were some unusual items and she called out a couple. For example, she said their 545 million expense related to a legal settlement in france, that was one item she also noticed some unrealized losses related to certain venture investments, as well i did ask her which ones, is it uber or slack, but she declined to specify on m a, google like so many other big tech companies, certainly on the radar of regulators and i asked her if thats going to make it tougher to do big, meaningfully accusations in the future. We know there are at least reports that u. S. Antitrust enforcers are now reviewing that nearly 3 billion acquisition of looker ruth porat says were happy to engage with questions they may have asked her about competition as well we just heard from amazon, their burgeon online ad business growing very strongly. I asked her whether she considers amazon a rival her view that the market as a whole is growing she doesnt think there has to be one winner in that market cnbc did confirm that alphabet did make this offer for fitbit we dont have a price, but weve confirmed an offer was made. Good stuff, josh. Shares of alphabet down about a percent now after hours. Coming up next, well break down the charts to say why history says this market could be heading even higher aer tfthe s ps record close today stay with us p 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. 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So why not use that appreciation for anything you need maybe its some home repairs, or updates to make it more comfortable so you can stay in the place you love. Its a viable effective way to support your other investments long into the future, and another way aag is working to make your retireme. Better. Dont wait. Get your info kit now welcome back to the closing bell. Lets send it over to mike santoli with his third dashboard of the day one of these big issues, people trying to figure out just exactly what are investors collectively positioned for in the way of the Economic Outlook . Well, here are two ways of viewing that first of all, the ism composite, so just showing the trend in the economy right now. You see this plunge in the ism composite recently so that shows you that the outlook for the economy has darkened or at least the coincidence indicators are not looking great. And here you see in blue, this is equity positioning by big investors. So in other words, just exactly how much exposure investors have to equities. And you see, its a little bit above neutral. Now, the Deutsche Bank Asset Management folks are probably pointing out that this is a pretty big gap right there maybe it suggests that investors, even though theyre neutral or just better than that, are expecting a little too much out of the economy. I would immediately look at this one, though. Right here is another instance where you have positioning right around the same levels and you had a pretty poor ism outlook. That was in late 2016. And that was another period that was analogous to this one. Very low bond yields you had a recession scare and an earnings slowdown, but not a recession. That is the optimistic take on this basically, investors dont necessarily have it wrong in this instance, court Equity Investors felt good today, pushing that s p to new highs, as well thank you, mike. Coming up next, were going beyond the bundle. Its a big week for media with the unveiling of hbo max tomorrow and the unveiling of apple plus on friday well be looking at the changing landscape all week and today well focus on sports and streaming with internet pioneer and owner of the capitals and wizards, ted leonsis thats coming up next. Fights cancer. Hanged hod blocking the pdl1 protein, lets the immune system attack, attack, attack cancer. Pdl1 transformed, revolutionized, immunotherapy. Pdl1 saved my life. Saved my life. Saved my life. What we do here at danafaber, changes lives everywhere. Everywhere. Everywhere. Everywhere. Everywhere. Itso chantix can help you quitd slow turkey. Along with support, chantix is proven to help you quit. With chantix you can keep smoking at first and ease into quitting. Chantix reduces the urge so when the day arrives, youll be more ready to kiss cigarettes goodbye. When you try to quit smoking, with or without chantix, you may have nicotine withdrawal symptoms. 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Almost all the fortune 500 partner with us. woman when it comes to digital transformation. Verizon keeps business ready. Welcome back to some big movers in the afterhours session. Alphabet, grubhub and beyond meat all lower on earnings, though alphabet is well off its lows its down over 3 . Its now down over 1. 25 and Mirati Therapeutics getting a big boost on drug trial results. The stock is now up nearly 30 content in afterhours trade its a big week in the world of media and streaming, and here on closing bell, were launching a new series called beyond the bundle where well dive into the shifting landscape of the entertainment universe. Julia boorstin has more. Hi, julia. Well, courtney, the streaming wars are certainly heating up this week with at t giving details on its big streaming play, hbo max, at an Investor Presentation late tomorrow investors and consumers are hoping to learn the price of its service, which is expected to include the assets of hbo now, which cost 15 a month, plus Additional Library content and programming. Then on friday, appletv plus launches for 5 a month or free to anyone who buys an apple device also on friday, netflixs the irishman is opening in limited release in theaters before it will start streaming on netflix on november 27th netflix, appletv plus, hbo max along disney plus, which launches in two weeks, are chasing subscribers by teaming up with distributors disney is working with verizon to give away a year to 50 million verizon customers, at t giving hbo max to 10 million of its customers, while tmobile is partnering with quibi, which launches next year of all of these, apple has the biggest head start with the prediction that 280 million apple devices will sell in the next year. And then the question will become how many of those who get a free or subsidized trial convert to longtime subscribers . Wilf julia, thank you very much for that and for more on this new media environment, were joined by ted leonsis, monumental sports and entertainment chairman and ceo, monumental sports owns a number of teams, including the nhls Washington Capitals and the nbas Washington Wizards a very good afternoon to you thanks so much for joining us. Thank you for having me were in detroit at the forbes under 30 for all the entrepreneurs here and i just came out of meetings with all heads of marketing for all of the teams here in detroit. And i think everyone is very, very bullish about content and the assets that we own in professional sports leagues. Well, lets explore that a little more, if we may, ted. I mean, ratings for some highprofile sporting events in the last five years have been up and down as opposed to just on the up do you think that means that the value of live sports rights has peaked no, wii think just the opposite live sports is still the greatest way to convene a larger audience both on a national and local basis. And washington, d. C. , the nationals winning the world series and obviously sold out every game, 45,000 people, and another 45,000 people outside, but their ratings, i think, for the last three nights were in the 15 and 20 range. And if you go down the list of the top 100rated shows, its still sports programming and live events. The big challenge for us and why i think the apples and the netflixes will be very, very interested is how do you get a new consumer who perhaps wont ever get on to the cable plan . Who wont subscribe to cable and theyre looking for this new directtoconsumer ott, and we know how to place a value, we know what it costs to get into a game we know what you spend on merchandise and the like and so sharing that data and working with partners, so my belief is that amazon prime, a netflix one day will become large, large buyers of our content. Amazon for prime, i think is going to be the biggest next generation Cable Company theyre already doing movies, but live events that can bring people together and then youre able to sell advertising around it, not just a subscription. Thats the route that nbc and comcast is going more towards. How can they extend their audience to people outside of the plant and make it advertiser friendly and that because amazon and netflix as well also have these builtin audience bases. You have disney and apple that are beginning their new streaming services here coming up in coming days. Is that something that is way down the line when youre considering sports streaming on a platform like the newer two . Well, youre talking about redefining a bundle. And i think that thats a really, really smart thing no longer will the bundle be just take telephoney, take data access, take unlimited video, i think youre going to see realworld things. And thats what amazon did they took delivery as the killer app and now theyve been bundling in lots of otherthing and streaming media is very, very important but to be able to bring live sporting events and access to tickets using all of their infrastructure and touch points, i think the same with apple. And were starting to see our businesses and buildings themselves really become big streaming media platforms. We in washington, d. C. , weve just spent about 40 million this summer in making big screens. We installed 25,000 square feet of new pixel we will be doing streaming, well be doing realtime gaming i think that gaming and the gameification of sports and betting will really drive the value of our sports programming and help engagement. Youll be watching the game until the very end we just did a big deal with william bell, as you know, here in washington, d. C i also think esports, nba 2k, the nhl is about dom out with its esports, as well. Ted, thank for being here with us on this big week as the media landscape continues to change ted leonsis. Thank you well, up next, alexa, pay my bills. Amazon announcing early today that its tapping into the payments scepa well hear from the head of amazon pay, coming up. [spokesman] if youve tried college but never finished, group cheering snhu lets you transfer up to 90 credits toward you bachelors degree. [woman] it doesnt matter how old you are, you can do it, you can finish. [spokesman] finish your degree at snhu. Edu welcome back amazon tapping into bill payments with alexa. Deirdre bosa is with us now with the head of amazon pay dee, over to you. Hey, court, thanks for that patrick, vp of amazon pay, thanks for being with me today. My pleasure. Courtney mentioned this announcement youre going to allow customers to use alexa devices to pay for their bills. What indication do you have that customers want this, especially since buying products through alexa has been slow. Its broader than just pay. What we found through research is in the u. S. 68 of consumers actually choose to not be on auto pay last year 14. 7 billion invoices for utility were sent. 68 of those customers want to feel they have the control over when and how to pay for it as we dug, we realized the reason why people do it, they want to understand their consumption and they also want to have the choice of when to pay. And many, many people have experienced i open the bill, put it on the Kitchen Table and i forget about it. So we thought we could do good about that alexa is about fixing everyday problems and we thought we could do that. I want to talk to you about amazon and the payment space at large. Amazon at large is seeing slowing growth in ecommerce you see other Companies Like ebay make a big play in payments, youre seeing facebook and apple. What is amazons end game . Youre doing it sort of piece by piece with lending, with cash, with amazon pay. Whats the end game . Well, you know, at amazon we always, always start from identifying customer problem whether that customer problem is a merchant, or whether its consumer and removing friction where customers are buying or are contemplating purchases. So the end game for amazon, if there is such a thing, is always about raising the bar for the customer experience. And what may look like disparate moves, when you put it into that context, is absolutely consistent in terms of our goal. How closely are you looking at the space, and developing either inhouse or acquiring companies that would enable you to serve the customer better through payments starting from customer pain points and working backwards, were constantly looking at the things that we should be building and where we should be partnering for instance, earlier this year we partnered with world pay in order to reach more merchants. Our announcement for alexa and bill pay is with a Company Called paymenta. So its natural to go through this should we bill this or should we partner. Its a constant part of how we approach the opportunity okay. Well, we look towaforward to heg more i know you havent updated those amazon pay numbers since the end of 2016. We want to keep you on edge. Guys, back over to you at the Stock Exchange. Thank you very much for that. Nice try i wish we got a little more information from them too. Still to come here, its the busiest week of earnings but veornes another key story insts ed to watch tomorrow the details coming up. Rt of a cy of problem solvers. We make ideas grow. From an everyday solution. To one that can take on a bigger challenge. From packaging tape. To tape that can bond materials to buildings. And planes. One idea can unlock a breadth of solutions. At 3m, we are solving problems that improve lives. One idea can unlock a breadth solutions. Weveryone, looknk isntat your phones. The design thinking, the digital engineering, security, blockchain, and we will be first to market yes. When we do we launch . Unfortunately, in 2 or 3, hours. Why the delay . Cognizant is helping banks use Digital Technologies at scale to advance speed to market. Its been a wild earnings, alphabet under pressure. Beyond meat beating estimates and tmobile beating on the bottom line but missing revenue expectations all of those stocks trading lower after hours. Its another big day of earnings tomorrow. Well hear from bp, general motors, kellogg, amgen, electronic arts, yum china and many, many more. 140 this week. Something else we are watching, the boeing ceo is headed to capitol hill phil lebeau is here with a preview of what to expect. Hi, courtney. Dennis mullen berg is likely to get hammered tomorrow when they question him about the 737 max three areas people are focused on first of all, what kind of pressure did boeing engineers feel when they were developing the max. Was there pressure from the higherups and did boeing mislead regulators and will Dennis Muilenburg show contrition tomorrow . He has said in the past we own it he just released his tcestimony remember, tomorrow, guys, is the oneyear anniversary of the lion air 737 crash in the java sea. Guys, back to you. Phil, thanks very much. We look forward to that. Mike, final thoughts record alltime close for the s p and the nasdaq just a hair from its own. Were benefitting from the fact that not many people were positioned for this market to take off the way it has. I also think negative earnings responses have not really bled over to others im seeing facebook bid slightly higher on alphabets miss today. If that pattern stays intact, its probably decent for the market. We are out of time. Thanks for watching that does for it closing bell. Live from the Nasdaq Market site overlooking new york citys times square, this is fast money. Im melissa lee. The s p 500 closing at a fresh alltime high, boofsted by the promise of china trade progress and strong earnings. Shares are down by more than 1 . Weve got full Team Coverage gene munster is in minneapolis to give us his take on the quarter but we kick things off with josh lipton live in San Francisco with details on the