Transcripts For CNBC Closing Bell 20240713

Today. Im at the boeing post, where that stock is rebounding right now. Up 2 . Weve got more on that in the meantime, the rest of the market hovering near alltime highs. Weve got 59 minutes to see if we can eke out a new record. Yeah, but just losing that momentum, morgan, in the last few minutes, now red on the a s p 500. Im wilfred frost. Good afternoon to you. Lets look at whats driving the action some trade pessimism as we got news that phase i of the u. S. Trade deal may not be signed in november, as planned Solid Earnings reports from merck and pfizer helping give the Health Care Sector a boost, but tech has turned lower with disappointing results from alphabet and grubhub, driving the nasdaq lower also to come today in our beyond the bundle series, we will get the details from at t about their new hbo max service and well also speak with one of the disrupters in the mccollum the interview coming up on closing bell. We are just negative for all three of the major indices of course, any positive close for the s p is another record alltime close the nasdaq, we are slipping by about half a percent away as it got close to its own record yesterday. Health care and materials lead the charge joining us for the full hour, steve grasso from stuart frankel. Steven, good afternoon to you. Good afternoon, sir thanks for joining us we slipped the last hour or two, but why was that i think you hit it on the head it was about the trade headline. And weve had an enormous rally in the market. Being as though we couldnt get above alltime highs, we popped above them so theres a high benchmark to keep us moving higher. We need better trade data or we need better trade progress fmoc tomorrow. And we also need to see earnings weech got earnings and any negative headline on trade is going to be perceived as a sell first, ask questions later. And thats what we saw today is that whats hurting apple . Melissa mentioned it just down before handing over. Was up a percent, record alltime highs down 2 . Whats happening there i think its silly to put that much into one headline that we saw today things are still moving forward and you heard the administration say, this doesnt mean that a trade deal is not moving or progressing forward. It just means that maybe its not going to be done as quickly as the market had thought. Its got everyone back on their heels again. Lets focus in on the big stories were watching today phil lebeau has more details on todays boeing hearing bob pisani has a look at what weve learned from earnings season so far, as we reach the halfway mark and meg terrell is covering some big moves in the pharma space. Phil, first to you on boeing the senators blasted Dennis Muilenburg about the culture at boeing and whether or not they had cut corners in the development of the 737 max, but there was also a line of questioning that a number of senators were pursuing, whether or not boeing and the faa have too cozy of a relationship so has the balance gone too far to allowing industry to police itself. Senator, i dont know if i can characterize it that way my sense is that we all have the same objective here. We all want safest industry possible that is our objective and my sense is that we could look at the balance. That there are refinements that would be worthy. So when you look at the max and look at the relationship between boeing and the faa, remember, they need to get this plane certified. Boeings target remains to have it certified by the faa at the end of the First Quarter they have several hurdles to clear before they get to that point. That brings up the question, is there growing pressure on the faa. Remember that boeing, as you take a look at shares of the stock, which did move higher today while Dennis Muilenburg was on capitol hill, they are planning to ramp up production of the 737 max starting in the spring of next year, going all the way up to the end of next year to dramatically more than what theyre making right now. Theyre at 42 a month now, they want to get up to 57 a month by the end of next year phil, whatsyour take as to whether muilenburg today successfully convinced everyone that he and his Company Always put safety first no, i dont think they did that i dont think so you can see, a lot of it was in the commentary from the senators and they werent buying what he was selling now, look, he said time and again that we made mista mistakes, that boeing needs to do better and he believes changes are being put in place so that the company can make the safest plane possible, whether its with the max or future models but you got this sense from listening to the senators that theyre not buying that safety is at the core of what boeing does so this sets up tomorrow, guys, where the house will have a crack at Dennis Muilenburg, and in some ways, the house may be tougher than the senate, because there are a couple of representatives there who have been doing some extensive investigations, and i suspect theyre going to have among the toughest questions for Dennis Muilenburg tomorrow. Phil, if people dont believe that he always put safety first, something that he said in the past he did always do, then is he going to lose another one of his management titles . Youre asking the question, is he going to be replaced as ceo. We asked him that before he went in he essentially said, look, im not going to answer that question im focused on getting the max back in the air. Whether or not that happens, wilf, as i said earlier today, i dont think that thats a question that the board is looking at right now, because that would add more turmoil to what is already a very tumultuous situation with the 737 max. Could it be addressed somewhere down the road . Thats a possibility, as well. What this does do, wilf, this puts greater pressure on the faa. They want to certify this plane once they believe its safe. But they already have egg on their face from what happened back when the plane was grounded around the world and they keep saying, nope, its safe, keep flying it. I think you would see even greater care and perhaps more time being taken with any decision to recertify the max. Phil, thank you, as always lets get some more perspective. Good afternoon to you both richard, starting with you, do these hearings matter from the share price . I think they matter from one perspective. That is, a lot of investors view these types of hearing as close to the end of the process. I think shareholders, you know, are generally inclined to get bullish. I think they would like to get more certainty around when the max is actually going to recertify. But what these hearings essentially do is get a possible negative out of the way and i think one of the things you saw from the hearing today, theres nothing incrementally negative jim, you considered to have a buy rating on the stock. Is that how you see it yeah, i think the most important thing that came out of the hearing today is that he didnt make it worse the stock price reaction shows that he had a calm demeanor, answered all of their questions forthrightly certainly, there is questions as to whether boeing does have a safety culture, but as of now, theyre going to be given the chance to bring this plane back into service and to prove that they do have a safe plane. And i think the fact that the stock reacted today shows that things are not getting worse, at least. Rich, the questions that focused around not just boeing, but the intersection of beoeing and the regulators in the faa and where the maybe safety protocols, the lines have been blurred, was that the most notable thing that came out of the testimony today . I think, clearly. If you looked at what the senators were focused on and writ really resonated, it was on this relationship between the faa and boeing and i think what youre going to see we all know changes are coming, right . But i think the only way we can sum this up is that the relationship has to be more antagonistic you know, the faa has to do more to challenge boeing, more to question boeing, more, et cetera and i think that is what we saw from several of the senators today who were zeroing in on this relationship with boeing. Steven, where do you stand on this share price i think well, if you look at it, its up 8 yeartodate and if you would have put you in a confinement and said all of these negative headlines and not told you what stock it was, you would think the stock would be cut in half or would be underwater we havent seen that so i dont know how much of this is that theres only two Major Players in this arena and that there is a pseudo backstop on this stock and maybe im making that up, but the bottom line is there is a duopoly, so i do believe that this has been the underpinning in this name and it has performed better than anyone would have thought otherwise so, juim, to go back to the question that wilf raed beforisd before, once we see a return to service of the 737 max, do you expect Dennis Muilenburg to continue to be in the ceo role and if not, who would take over . Yeah, i think that as long as the plane does come back out into Service Without undue delays past maybe january, as long as they can get the pr moving to convince the flying public that the plane is safe, get the faa onboard, get Global Regulators onboard, start moving these planes, get all the logjam at their facilities out and start shipping again, and start improving their finances, i think he has a good chance to retain his job obviously, mistakes were made and they acknowledged that, but how they act Going Forward is what matters and i think Going Forward, given the duopoly in the industry, given the huge backlog in commercial orders that boeing has, that they will return to the financial powerhouse that they once were all right, were going to leave it there richard saffron and jim corridor, thanks for joining us today. Turning now to the Broader Market as we reach the Halfway Point in earnings this season, bob pisani is here at the exchange with a look at big takeaways so far a little bit of a split the consumers are doing really well the global cyclicals, not so much heres the poster child for the u. S. Consumer. Mastercard same situation as visa last week great numbers, Revenue Growth, maybe 15 for the year thats up from low teens so the consumers in good shape. Capital one said the same thing. And then you get the big global cyclical names theyve basically been lowering their numbers. Theyve been seeing this weeton. Electrical system, big in europe and asia they lowered their guidance, cummings diesel engines around the world. They lowered their guidance. And we know this is largely on the strike we know the problems with auto productions around the world, as well these lower estimates arent happening with Consumer Staples or health care much more stable Earnings Growth so heres where we are at the first half of the year here. U. S. Consumers have been strong, industrials and materials and energy, coming down. Guys, back to you. Bob, thanks so much for that. Bob pisani on the floor. Earnings from merck and pfizer hitting today before the bell. And they have both helped buoy the Health Care Sector, which leads the sector on the s p 500. Meg has been diving into those results for us hi, meg. Reporter different story for pharma it was a beat and raise for pfizer and merck in the end of the quarter. Keytruda drew more than 3 billion in quarterly sales, topping analyst estimates by 200 million and for pfizer, outperformance came from its Breast Cancer drug ibrance and prevnar 13 merck in favor and pfizer still not yet covered from its july deal with mylan. Wilf, back to you. Hda also performing well today, helping that Health Care Sector higher. After the break, senator mark warner sending a letter to mark zuckerberg, asking him to rethink facebooks controversial political ad policy. Well speak with the senator exclusively about that letter, next plus, its another massive afternoon for earnings with reports ahead from yay, mondelez, amgen, amd and many more were going to bring you all of those numbers as soon as they hit. And as we head to break, heres a check on our data tracker. Poe pending home sales raising and Consumer Confidence missed the mark driverless cars, or trips to mars. No commission. Delivery drones, or the latest phones. No commission. No matter what you trade, at fidelity youll pay no commission for online u. S. Equity trades. At fidelity youll pay no commission Danafarber Cancer Institute discovered the pdl1 pathway. Pdl1. They changed how the world fights cancer. 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. Lets check in on some individual Market Movers lockheed martins f35 joint Strike Fighter program has landed a 34 billion contract with the pentagon, the largest contract yet for the rogram. It covers three production lots, deals for 478 aircraft and the stock is actually trading down slightly, down about 0. 4 , even though the f34a will drop below 180 million, about a year early in terms of that price target heres a check meantime on virginia galactic. That stock losing steam in todays session as well. Its down about 7 after making its public debut here yesterday on the new york stock exchange, becoming the first publicly traded commercial human space Flight Company it popped yesterday. Seeing it come back down to earth, pardon the pun, today but certainly, one to keep an eye on meantime, pressure mounting on facebook after the companys decision to exempt political ads by politicians from Third Party Fact checking, with employees and Congress Calling for change. Virginia senator mark warner is now asking facebook to provide more transparency over its policy and telling the company to hold itself to the same standards as cable networks, stating in a personal letter to ceo mark zuckerberg, quote, facebooks apparent lack of foresight or concern for the possible damages caused by this policy concerns me and going even further to state that transparency itself has, quote, been undermined, at least in part because of the nature, architecture, policies, operation, and platforms of facebook lets bring in senator mark warner for an exclusive interview. So whats wrong with facebooks current policy here . Well, what facebook and lets be clear, were talking about ads sponsored by politicians. First of all, we have no rules at all with those kind of ads. I think there should be basically Disclosure Requirements facebook has moved in that direction. I dont think fully, but they have moved in that direction but this case of saying, if a politician sponsors an ad, that politician can lie with impunity, i think, has enormous repercussions. And i think we even saw that in the testimony last wee member o asked appropriately, well, what happens if someone is running under banner of the American Nazi Party does that by virtue of being a candidate allow that kind of nazi propaganda to be posted on facebook, a facebook that 68 of americans look at on a daily basis, 178 plus americans, and there is going to be no governance at all on that type of political advertising and not only and we can be assured that russia and other nations will intervene in the 2020 election and and someone has announced that theyre running for governor in election, but hes going to go ahead and register for a candidate, so he can start putting up fake ads right away this is not going to improve the quality of our political debate, and i just wish facebook would have thought this through, rather than laying out this policy that i hope theyll rerequester. Senator, as you make clear this this threepage letter that being allowed to lie with impude impunity, seems frankly ridiculous to be something that can be permitted why do you think facebook is doing this why not preempt it do you think theyre just desperate for the dollars in what is going to be a bumper political years . I hope not. Candidly, i think that facebook could have avoided all of this theyre a big enough company, if they would have simply not allowed political advertising, probably the quality of our political debate might improve if that took place they chose not to do that. Thats their business decision but i dont think this is a case of them trying to scrounge out a few more dollars i think there are legitimate First Amendment concerns and clearly, there is a First Amendment right, if you are a broadcast television station, you have an obligation under your fcc license to go ahead and put up that ad facebook has no such obligation. Thats why i think facebook with their region, with the ability to have their platform manipulated by bots, by other foreign influences, much different than a profiter for that matter, cable television. Thats why ive suggested the analogy is better to cable cable is willing to take down a political ad that is demonstrably false it still falls on the obligation of an entity who can prove that the ad is demonstrably false, so thats a pretty high standard. And i think that standard would have worked well for facebook. And my hope is that they will reconsider, because i think the absurdity of their current position, whether its american nazis or people running for governor in california today just so they can put up fake ads and lying ads, the threat that this poses with reinforcing activities of foreign governments, this is going to be a disaster so, senator warner, when you talk about the fact that facebook has no such obligation, it gets right back at the heart of regulation discussion weve been happening and begs the question, why arent lawmakers like yourself, and i know youve put some legislation out there, but why arent lawmakers passing regulations that would require a company like facebook to adhere to some of those obligations that other types of Communications Companies have to, as well . Amen. I couldnt agree with you more there is a Bipartisan Working Group thats working on a privacy bill i think that will be important ive got Bipartisan Legislation that would require if you advertise political ads on facebook, same kind of disclosure if you advertise on cnbc that should be a nobrainer. Ive got Bipartisan Legislation that says, we ought to know what kind of data is being collected on us and what its worth. But why hasnt that moved through congress then . That may be a more me that physical question in terms of i can assure you as someone who works here, i am as frustrated as most of the viewers i do have some optimism that we may see a bill move with privacy. Privacy is necessary, but not sufficient and these other bills, a bill that would allow us to know whether were talking about to a human being or a bot. I dont want to get rid of bots, but we ought to have that transparency i do think and i am hopeful still that we could see privacy move within the next month or so, and then this other legislation attach to it but you ask a very fair, fair question you know, were three and a half years after the russians manipulated facebook in 2016, why dont we have rules of the road in place. Even still, senator, youre still just really talking about political advertising and them taking more responsibility for the authenticity and accuracy of that why not for all posts, when they are making money alongside it. When they are actually promoting those posts, should they not be held accountable, as a publisher in the same cway a cable compan would be for any advertisement, whether its for a drink, whether its for a cleaning product or a political ad. Let me break that into two parts. The first part is, facebook, i will acknowledge, has made progress on this the ads that they are having their current kind of policy standards saying, if its demonstrably false, theyll deal with, would be political ads if theres an ad sponsored by the Republican Party or the Democratic Party or some third party group. So they are taking more responsibility there on the question about why not view facebook the same way we would view any media company, that goes back to the rules that were set up in the late 90s there was something created in the law called section 230 exemption, that basically said these platforms, facebook, google, are not responsible for any other content. That probably made sense in the late 90s. These were nascent industries. But today in america, when 65 of americans get some or all of our news from facebook and google, i think we do need to revisit that the section 230 debate is a complicated one. Theres not a simple answer, but i think its definitely time to roll up our sleeves and look at how we can reform on that. And we already have made reforms. We have, for example, prohibited sex trafficking, child prostitution, bomb making. So there has been some movement around content going further will be something that i think we have to explore yeah. Senator mark warner, thanks for joining us today we appreciate it thank you shares of facebook are up fractionally right now weve got a news alert on the house impeachment inquiry. And eamon javers has got the details for us hi, eamon. Reporter thats right. Democrats up on capitol hill have now released the text of a resolution they say theyre going to vote on on thursday that will authorize public hearings in the impeachment process up on capitol hill so far, all of those hearings that have taken place have been behind closed doors. Democrats keen to suggest this is not the beginning of a process. They say the process has already begun. So theyre saying here that the committees are now being authorized or directed to continue their ongoing investigations as part of the existing house of representatives inquiry into whether sufficient grounds exist for the house of representatives to exercise its constitutional power to impeach donald john trump, president of the United States of america opinion this document will set the rules of the road for those public hearings, which you can imagine will be highly watched across the country. One thing thats interesting here is that they are saying that these will be public hearings and that the republican members, minority members on the hearing will be allowed to question the witnesses for an l equal amount of time, but theyre laying out a set of rules in which the first 90 minutes of the questions and answers session of this hearing will be unlike what a lot of our viewers are used to up on capitol hill, where you see each member going around the dias, each one getting 5 minutes and making a speech rather than asking questions in this case, theyre laying out a case where a Ranking Member and the minority member and a chair will be able to question the witnesses for a total period of 90 minutes before you get into that fiveminute q a from the rest of the members. So there will be a lengthy questioning by a professional staff member or by trahe Ranking Member or chair themselves before you have an opportunity for all the members to get in on a question that might give it more of a coherent fear, rather than the short sort of bbstyle that weve seen from other hearings up on capitol hill a new set of rules here, they say theyre going to vote on all of this on thursday, wilf. Yeah. We were just talking about transparency around facebook, it would be good to see some transparency in the house with this process as well eamon javers, thank you. You bet pmpl after the break, should alphabet be broken up . A new analyst note makes the case for the google parent to lge off youtube wel t the word on the street on that call, next through the at t network, edgetoedge intelligence gives you the power to see every corner of your growing business. From managing inventory. To detecting and preventing threats. To scaling up your production. Giving you a nice big edge over your competition. Thats the power of edgetoedge intelligence. Its got all my favorite shows turn oright there. Boom, i wish my Trading Platform worked like that. Well have you tried thinkorswim . This is totally customizable, so you focus only on what you want. Okay, its got screeners and watchlists. And you can even see how your predictions might affect the value of the stocks youre interested in. Now this is what im talking about. Yeah, itll free up more time for your. Uh, true crime shows . British baking competitions. Hm. Didnt peg you for a crumpet guy. Focus on what matters to you with thinkorswim. 30 minutes left of trade and both the dow and the s p are hugging the flat line right now. Lets send it over to mike santoli for todays market dashboard. Mike morgan, thank you very much first, take a look at not so seamless the Parent Company of seamless Food Delivery Service being torn apart today. Ill put that in some broader context. And a stitch in time might we see a pause in the market as we reach these new record highs see what history has to say about that a new plot thread, old versus new media, one year after the s p Media Communications sector was restructured and then fraying confidence. Thats a couple of different looks at Consumer Sentiment right now. Take a look at this chart of grubhub along with a couple of other, what i would call smaller consumerfacing ecommerce companies, yelp and zillow thats compared to amazon, the dominant ecommerce name. This is over two years you see, yes, grubhub is getting destroyed today, down 34 after they had earnings and poor guidance and a lot of questions about the business model, but these subscale Internet Companies have actually struggled for a while now to figure out what their place is, what the economics of their own businesses are against these very broad set of competitors, as well as, by the way, Consumer Behavior thats pretty fickle and they dont want to pay for anything i think theres something going on here. Reminds me a little bit of what happened with open table, really far off its highs before it was acquired by booking holdings and booking holdings ended up taking a rightdown on the price obviously, a struggle for these small internet names, guys mike, unsurprising to see uber down as well today. Some 3 . Thats right. Albeit lyft is down as well time to get word on the street now Piper Jaffrey initiating slack in overweight. Following a 59 selloff and that revenue could quadruple l to 2. 5 billion by 2024. Wells fargo initiating fedex and u. P. S. At outperform, saying trade challenges are weighing on the shares provide a buy the dip opportunity for investors and that ecommerce trends could provide Growth Opportunities for those stocks Going Forward wells fargo also initiating Railroad Stocks at market weight with canadian pacific, kansas citi southern, and Norfolk Southern as their top picks. And needham out with that new note suggesting alphabet should be should spin off youtube. The firm says youtube could be worth 300 billion alone and that a spinoff would make alphabet smaller, as it faces regulatory pushback from washington needham also says a spinoff would account leadership accountability and provide streaming investors a strong alternative to the likes of netflix and roku an interesting idea that, steve, of the businesses google has, you can see a clearer rationale for spiping off youtube less need for it to be part of the overall pie. Youtube has always been krau called the crowned jewel of google so when you look at this, this has been in the target zone for antitrust this has been in the target zone for d. C. So theres been a weight on google, but its still up 20 yeartodate i think its a buy, either way but you still have a lot of green to get through the government headwinds that youre seeing and they are really going after google in a big way. So be careful with that one. Yeah, its also interesting, something thats been flying under the radar with google is the fact that they are and this was reported on cnbc in the last 24 hours, that theyre looking at logistics possibilities and held a conference around that, as well. So bringing the call on some of those transport stocks and the call on here, google together, it seems like, again, the lines are blurring you know whats interesting really quick of the transport stocks, november, seasonality wise is the best month for u. P. S. And fedex. Not December December is the worst. But for both stocks, even though u. P. S. Has outperformed fedex, transport stocks, november is the month to buy either way, google trading down a couple of percent all of f. A. A. N. G. Just higher by one basis point. But tech certainly suffering today after those disappointing numbers from google last night time nfor a cnbc news update sue herreras got it hello, everyone hong kong chief executive carrie lam has refuted reports that china is considering replacing her as antigovernment protests continue in that territory an article published by the Financial Times claims the Chinese Government have been drafting a plan to install an interim chief. From the beginning of this social unrest until now, the Central Government has been very supportive and remains confident that i, myself, my political and the Hong Kong Asean government but similarly the police will be able to handle the situation an underground car park that was under construction in southwest china collapsed, killing eight people and injureding two others. Three other workers were able to escape and another was immediately rescued. And michigan produce Company North bay produce is voluntarily recalling nearly 2,300 cases and two bulk bins of fresh apples. They may be contaminated with listeria they were sold in plastic bags under the brands great lakes and north bay produce Pure Michigan youre up to date, thats the news update this hour. Guys, ill send it back downtown to you, wilf sue, thank you very much. Well see you again next hour. Still to come here on closing bell, weve got your last chance trade. Also, weve just got word that Johnson Johnson shares have been halted with news pending and we should have that news for you any minute as we head to break, heres a check on bonds u. S. Treasury yields kicking slightly lower today as the fed kicks off its twoday meeting. Closing bell is back after this quick break 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. The amount of Student Loan Debt i have, im embarrassed to even say. We just decided we didnt want debt any longer. I didnt realize how easy investing could be. Im Picking Companies that i believe in. I think sofi money is amazing. Thank you sofi. Sofi thank you, we love you. We have got 21 minutes left to go. The dow is down 20 points right now. Lets send it over to mike santoli for his second dashbo d dashboard. Mike morgan, calling this a stitch in time. The s p 500 kind of pausing today at those record high levels this is a look at what is what has happened on average this bull market after the s p has hit a record high. So this is the average path taken in the 220some times weve hit a record high in the s p 500. This is whats happened beforehand, when you reach the high that was the path on average and then it looks like for about a month or a few weeks, the market has just kind of flattened out, hovered near the highs, gathered itself, and again, on average, gone to about a 5 gain in the subsequent six months this is the number of days before and after the record high, down below so on arch, a pretty positive picture. Not an automatic switchback after you get to a new high. 89 of those periods, once you hit a new high, the market was higher six months later. So mildly encouraging, at least, if history is going to be a guide to what happens next, guys mike, i guess the other question of this would be to what extent does it matter if all of the indices takes part in this or just one of them squeezes out a record high there is a little suspense, right, because we have the dow and nasdaq not really agreeing just yet im not sure exactly how the breakdown was in the prior 220, but im sure they werent all universal in terms of unanimous, rather, in terms of all the indexes. Okay, thanks very much. The Broader Market is lower for all three of the major indices we will have your lastchance trade when we come back. Steve is looking at a social stock thats up more than 160 , yeartodate [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 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. Less than 17 minutes left to go all the major averages are lower. Steve, whats yours last chance trade. Snap. Bought it a couple of days ago right before earnings. And it was an earnings beat. The market was angry at the guide, but you have revenues up year over year, almost 50 Free Cash Flow deficit is actually down. Operating cash flow is up. Its a magnet towards that ipo price of 17 i think youre going to see that and higher relatively soon the stock is up 165 yeartodate how much higher do you think this could actually go right now . I think you probably have another 10 to 20 nearterm in the stock. Youve got to remember, twitter earnings were a weight on the whole space, so its still recovering from that as well and its up since earnings day so i think youre good here. All right snap, theres your lastchance trade. Steve, thanks for joining us. Than up next, what to expect from after the Hours Earnings and we will take you inside the market zone, ene tu wh wrern 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 . What would you like the power to do . Most people think of verizon as a reliable phone company. woman but to businesses, were a reliable partner. We Keep Companies ready for whats next. man we weave security into their business. Virtualize their operations. woman and build ai customer experiences. We also keep them ready for the next big opportunity. Like 5g. Almost all the fortune 500 partner with us. woman when it comes to digital transformation. Verizon keeps business ready. 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. Weve got just under 12 minutes left of the trading day. Were now in the closing bell market zone. Commercialfree coverage mike santoli is here to break down these crucial moments of the trading day. And today, weve got Barbara Duran from bd8 Capital Partners here as well welcome to you both. Boeing ceo Dennis Muilenburg grilled on capitol hill following controversy surrounding his grounded 787 max airliner he was stripped of his title earlier this month, which he weighed in on during the hearing. Whats your process to hold people accountable to make sure this doesnt happen again. Senator, first of all, my company and i are accountable. I believe that accountability starts with me my board took some recent actions regarding my position, which i fully support and will allow me to focus even more on safety so mike santoli, i mean, shares have been trading higher really since he started testifying. We saw them dip down, but now theyre up Something Like 2 on the day. It seemed like there was ant moment in the testimony that would have given investors additional reasons to be concerned about the timetable, about the posture of the government toward the company. There was ant tim sloan moment, right, where you basically had this attack that made it seem like, wait, the company in for a harsher time the stock itself has held the bottom end of the range its been in for a while. It seems a little ten wouous, b its held up okay. Barbara, are you happy with the stock at this level . Yeah, i had mentioned last week, after the texting, it was time to really look at the stock. And i added positions yesterday, but who knows, it could retest its lows but all of the bad information, all the worst cases in the stock, because boeing has not been sitting on its heels. They have been doing lots of internal changes, safety reviews, and what the ceo did today he needed to do, to publicly admit culpability, to apologize, to make amends and to lay out everything they have been doing and will do in the future so this wont happen again. S p 500 is down ten basis points with just under ten minutes left to trade. Any positive close would be another record high. Shares of beyond meat tanking today, despite beating on earnings and raising its fullyear Sales Forecast the companys postipo lockup expiring today, meaning insiders can sell their stock for the first time beyond meat Ceo Ethan Brown appeared on squawk box this morning and he was asked what he plans to do with his shares. Im not doing a thing my focus is entirely on growing this business. People have asked me, do you want to do a partnership with a Larger Company i have no interest in that anymore. What im interested in becoming that Larger Company, have a goal to make this a 40 billion company in terms of revenue. Barbara, how much of this is competition and the fact that there might be more kprecompeti pricing in Grocery Stores and elsewhere . Its an interesting question, because theres definitely a lot of chatter about competition, which is clearly coming in but i think this is really more about the lockup, which suddenly hits today after the, you know, with the stock so i think thats whats going on here. And i think its actually a buying opportunity, some time in the next few days, or week or so because the fundamentals were superb and this is a company that is moving fast and moving hard. And its a giant market. Some 270 billion, so theres room for one or two more players. Look at the volume, its all about the lockup expiring. Theres 36 million outstanding. A lot of that gets churned around more than once per day with all the computers and everything else. But its interesting, because were saying, what went wrong . Its a triple from the ipo price. The fact that it ran up to 240 a share is the anomalous piece of this whole thing. Too much enthusiasm and mania running through this one stock because of the larger concept. Now its just having this very painful reset. Im sure those earlier investor s will be delighted to be able to buy some stock. The Retail Sector getting hit hard today, as well. Lets get to Courtney Reagan who spoke with the ceo of lululemon today. Court . Hi, morgan. And we know there is just sort of a variety of outcomes happening in retail right now. There are winners, there are losers, there are those that are doing well in china and those who are not. I sat down with lululemon ceo Calvin Mcdonald and asked him if the trade war has really changed the trajectory of growth in china. Heres what he said. Weve doubled our store count from a yeartodate basis. Well end the year at 30 we started with 15 the success of our brand, the momentum around the sweat life within china very excited about what the team has done and what our potential is there meantime, you have pvh ceo manny choriko who said not only have the hong kong protests really hurt business there, but so too has the ongoing trade war with china take a listen. Its impacting all business directly were seeing sales down 30 to 40 in the last five or six months where these protests have begun, in an area of the world where business had been, you know, very strong for us there and in china and thats really slowed down, not just a result of the protest, but the trade negotiations that have gone on and chorico then went on to say that hes actually worried about the longerterm impact of American Brands and what the trade war and all of the rhetoric is doing for that, as well as the positions that have been taken on either side of the hong kong protests back over to you courtney, thank you barbara, i mean, certainly, lines drawn in the sand in terms of winners and losers in retail meantime, you know, i realize the Consumer Confidence number was a bit weaker than expected, but still high how do you read through it, as an investor right now . In the Consumer Confidence, the number one a tad off it was really a little nick in future expectations, but present confidence is pretty good, which bodes well for christmas and i think, though, our names like lululemon, which are going gangbusters. He mentioned about china, they are up 70 and are doubling their sales stores youll have find winners where they have growth on all fronts new international, new products that youll continue to see good results from that company. We have over five minutes left to trade. S p and dow down just fractionally weve got some breaking news on j j. Meg terrells got the details. Hi, wilf. Of course, Johnson Johnson stock has been halted. Were just getting the news the Company Contracting with an outside laboratory to test its baby powder. Remember, on october 18th, the fda said it had found trace amounts of asbestos in one bottle of johnsons baby powder. And the Company Initially voluntarily recalled that lot from the market. Now, j j is saying that 15 new tests from that same bottle of baby powder previously tested by the fda finds no asbestos. And the company saying over 60 new tests of the recalled lot conducted by two third Party Laboratories also found no asbestos so theyre saying that the test results could have been possible due to Lab Contamination the fda when it put out its release said they didnt believe there was any sign of cross contamination. This affected Johnson Johnsons stock quite a bit, more than 20 billion in market value. Well see when its stock reopens, what it does today. But theyre saying two independent laboratories saying no asbestos found in that single bottle of baby powder flagged by the fda. Back to you. The stock still halted. Bob is headed to the j j post for us what can you tell us km its not going to reopen. There was an enormous crowd here just about a minute or two ago that has dissipated and there are some technical reasons for this they have to the nyse, under the rules here, has give approval to resume trading by 3 55 if they dont give the approval down here to the florida, the stock doesnt open going into the close. And my understanding is they did not get it out by 3 55 the upstairs did not come down, so the company would call the nyse and says, the news is out, you can begin trading, nyse would call down on the floor downstairs and says, you can start trading the stock. The halts now lifting if it doesnt do that by 3 55, it doesnt reopen. And heres the dmm, the stock is not open its still saying news halted here so theyre not going to open Johnson Johnson here, guys if that changes, ill get back to you we do only have three minutes left to go right now, major averages are slightly lower we are halfway through earnings season after the bell, were going to get results from Electronic Arts lets get over to josh lipton for a preview of that. Josh morgan, for ea, heres whats expected q2 eps of 3. 25. Caught up with pipers mike olson to get his take. He tells me hes going to make a beeline for whats called live services, which includes ingame transactions, advertising, and subscription services. Olsons boggy for the quarter there is 380 million. That would be a jump of 16 year over year, driven in part by ingame transactions from fifa, as well as apex legends. Thats eas answer to the legend that is fortnite. Guys, back to you. Well bring you those results once they cross. Josh lipton, thank you two minutes left to go here. Lets send it over to Rick Santelli for a check on bonds. You know with the fed meeting tomorrow, bank of canada, bank of japan, lots of central banks, we always believe our fed is doing the global heavy lifting, but it might not be the case no matter what they do tomorrow look at the european twoyear since may. European rates are moving higher twoyear rates are at a fivemonth high. Take a look at a chart of r01s. Everyones talking about 190 thats the spike and a one week of the dollar versus the yen the dollar is at a fivemonth high going into their meeting, which is of course tomorrow. Now well go to kate rogers, where the nasdaq has been slip sliding the last few hours right into the close thats right. Were down by just about a half a percent here at the nasdaq tesla is biggest loser in the nasdaq 100 today, followed by names like apple and alphabet on that worsethan expected Earnings Report. Big tech weighing heavily in terms of point impact. Its all of those names, michael, google, microsoft, and amazon all weighing today. And apple shaving off about 20 points ahead of its Earnings Report tomorrow. Well find out how the iphone 11 is selling its amgen, and bioare all adding to those games. Now over to bob pisani at the nyc. And weve been waiting for Johnson Johnson to reopen on their news that there is no asbestos in the baby powder. Its not going to reopen because of internal rules here they needed to call down on the floor by 3 55 and say the halt is lifted, you can begin trading. That did not happen. So Johnson Johnson not reopening on that news overall here, kind of a flattish day. Were ending right near the lows for the day. Big story is u. S. Consumer holding up and some downgrades some commentary from some steep cyclical names an lower guidance theres the closing bell. The Dow Jones Industrial average is closing down 20 points at the lows of the day. S p down three good afternoon, everyone. Welcome to the closing bell. Im wilfred frost. And im Morgan Brennan in for sara eisen, along with mike santoli. Lets check in on how the markets finished, only just in the red for the dow and the s p. Of course, any positive close for the s p would be another record alltime high we were lower by nine basis points a similar decline for the dow. The nasdaq did lag indeed, Communication Services and technology, the worstperforming sectors on the s p. Health care, the top performer worth noting, the s p 500 did set a record intraday high for the second straight day before it moved lower in the afternoon. Were halfway through earnings season coming up, well get results from amgen, mondelez, amd, Electronic Arts, yum china, fireeye, mattel, and edison international. Well show you the numbers as soon as theyre released joining us to talk about the market day, Barbara Duran, senior Portfolio Management at bd8 capital marns. Paul hickey with Bespoke Investment group and mike santoli were going to kick things off with you, because we did end the day lower, but only fractionally kind of a rounding error. I think the real message is the market kind of held firm and steady at the alltime highs, just about whats interesting is apple and alphabet both down more than 2 on the dow s p flat it shows you theres still this ebb and flow, health care and financials taking up some of that slack i think its not surprising, the market would basically be testing its footing right now ahead of the fed tomorrow. We might just be on hold until we get that news bob, whats your take today in terms of the Sector Performance . Tech has been leading us to the new highing t ins the last few g days i think well continue to see this back and forth. Were in a trading range the fed coming tomorrow, its widely expected well cut rates. Pa little bit of a disappointment perhaps on the china trade tariff issue that may be delayed so i think this is going to be normal people looking for a place to put fresh cash to work weve got our first Earnings Report out its amgen and meg terrell has the numbers. Hey, meg the Third Quarter, adjusted earnings per share coming in at 3. 66. Compared with average analyst estimates of 3. 53 revenue at 5. 74 billion, versus analyst average estimates of 3. 35 billion. The company raising its fullyear guidance on revenue and adjusted earnings per share. Revenue now estimated to be 22. 8 to 23 billion and guys, that midpoint, it was raised by more than 250 million, which is more than the beat that they had in the Third Quarter. So that a true raise yet, the midpoint is still below the consensus estimate for the fullyear, guys. Same story for raising its adjusted earnings guidance, and amgen is up 3 in the afterhours. Back to you. Paul hickey, we are seeing amgen trade higher right now on these results, your initial take i havent had a chance to look into the details. But amgen is an incredibly cheap stock and it pays a dividend yield of 2. 8 . It really checks a lot of the boxes for investors and if we did see any weakness, we would be using it definitely as a buying opportunity and mike santoli, i mean, when you look at what outperformed today in the market, bestperforming sector in the s p was health care yes american pfizer had pretty clean quarters before the market opened that gave a little bit of a tailwind amgen, as a stock in general, has been quietly acting a lot better its been working its way higher there were years when it looked cheap and it didnt work i do think youre starting to see a little bit more of an attraction to health care as an alternative to the deep core value stocks just because there is a little bit of a longer term Growth Profile to some of them. Barb, do you see it that way or would you be putting your money to work in other sectors of the s p well, you know i love highgrowth tech, so any of this selloff, i would be there but i think merck numbers were great. Im long merck, i would stay long pfizer was surprisingly good now we have Johnson Johnson. And amgen, im not sure about. I think youre not going to see a lot of upside in the nearterm, but theyve got such a great product line, but its early stage clinical so were not even going to have proof of concept information until next year. But probably not much downside and these numbers were encouraging. Mike, want to come back to the Broader Markets. What happened intraday to apple and the rest of the tech names it didnt seem like there was anything in particular there was a little bit of a general unwind of the megacap tech trade for alphabet, it was a little bit of a static yip quarter and it wasnt received all that well, but it also was at a high. Apple also at an alltime high going into a fed meeting it seemed like a little bit of skimming off the top of stuff that had worked very well. In terms of the Broader Market, certainly all eyes will turn to the fed come tomorrow. But in terms of what made markets drift lower today and into the close, it was really these headlines around u. S. China agreement and whether we could actually see some kind of deal signed or not signed at the chile meeting in november. How much is that continuing to dictate the market right now i mean, i think a little bit here, but i think investors are looking a little bit past this now. Weve seen weve just hit alltime highs yesterday, so weve got to just keep todays modest losses into check here. But i mean, its just whatever you know, anytime you see even a pullback in the market, people start doubting and getting nervous. The day after we just saw an alltime high in the s p 500, we saw in Consumer Confidence that more consumers think the stock market is going to go down than go up. Its very rare to see that kind of pessimism in the same month that the market is sitting at an alltime high. And when you look at those prior periods, its going back to the mid80s. Every single time youve seen an alltime high in the market, in the same month that there were more bears than bulls, the market was higher one year later so i think this kind of skepticism towards the market is healthy if youre a bull mike, we havent really mentioned it much so far fed meeting coming yields sort of holding up certainly towards the long end despite the expectation of a cut. And thats been important sentiment wise they have held up a little bit of the softness today, but still above 1. 8 that is in the high end of its recent range and it seems as if the bond market tentatively is saying, if we get one more cut, quarter point, and the signal is that theyre done for a while, going to wait and see, its probably okay the market is willing to buy into this hope that theres been a successful soft landing and the fed doesnt need to be in that posture of adding more help but well see. Weve actually had a pattern of pretty Adverse Reactions to fed meetings, especially with the market at a high weve got another Earnings Report out its ea and josh liptons got it for us josh ea reporting an eps of 2. 89. That does include 2. 11 of tax benefit. It is not clear, wilf, if that is comparable to the 86 cents the street was looking for revenue 1. 28. Thats a beat. Quickly, looking through the segments here, full game downloads, 180 million, thats up 22 live services, 573 million. That would be ingame transactions, advertising, subscription services, that also would include, by the way, apex legends. Thats the companys answer to fortnite. That was up 39 and thats stronger than what the street was looking for. Mobile, 169 million, that was down 23 this call kicks off at 5 00 p. M. Eastern. Guys, back to you. Josh, thank you mike santoli, i mean, numbers certainly seem to be better than expected here and the stocks moving higher on this. It was pretty beat, down the stock is coming from a position of a little bit of weakness it stabilized well below the highs, but it seems as if good enough given the reduced expectations when you talk about tech stocks q stocks, growth stocks, how closely do you watch the video game stocks . Not that closely. Theyre so hit driven. I know theres a more secular story with it moving to more online, using mobile apps and all of that and youve got more consumer interest, but again, theyre just way too hit driven for my tastes you know, on the ea, you saw a stronger than expected out of apex and then youre seeing the company has been in the penalty box, lower guidance in two of the last three quarters. But last quarter they lowered guidance and the stock went up and when you start to see that rallying on good news, theres a sign that the selling is washed out. And a beat that its looking like today, i think that would bode well for the stock and help it get it out of the funk that its been in got it. Mike santoli, i think it looks like were starting to get some other names roll across the tape here in general, if you had to pick out some themes that are emerging from earnings since we are halfway through the season, what would they be the main theme to me seems to be that investors are willing to look at the whole run of numbers and not extrapolate misses to the Broader Market and theyre saying that its plausible that the Third Quarter was the low for Earnings Growth and trajectory right now, the issue is the guidance keeps going down, the forward estimates for the Fourth Quarter keep going down, but right now, the market is willing to say, we had expectations beaten down enough, its not necessarily a big concern just yet. We have another Earnings Report out it is on mattel frank hollands got that for us. Shares of mattel up almost 13 right now after a beat on the top line, a big beat on the bottom line. The company also announcing that its internal investigation of a whistleblower letter has led to the transition away from its cfo. The company saying in its Earnings Release that the letter, which had been sent to mattels outside auditors, questioned whether there were accounting errors in historical periods and whether mattels outside auditor was, in fact independent. That investigation found that two periods in 2017, one was understate, the other one was overstated again, after a big beat on revenues and eps, mattel shares up more than 13 were going to keep digging into these files right now. Back over to you thanks, frank barbara, we talk about another beat down stock. This is one of them. Turnaround story when you see numbers like this and hear headlines like this with changes. Turnaround is it happening . Is the strategy working . Well, thats whats going to be interesting to see, whats in these numbers. That looks on the surface, they beat on the earnings and revenue, it looks like the turnaround is working, because they have a great franchise. They were trying to refocus on their core brands and also really get the manufacturing in line and get a lot of efficiency, though it looks like its working it will be interesting to see whats behind that this name had missed expectations for quite a while in a row and this secular decline for the category as well as, you know, not being necessarily operationally doing all that well so, obviously, also crowded short, about a fuft of tifth of stock is sold short because people dont think theres an easy way out also, the Third Quarter, interestingly, is the big quarter for mattel retail, its the Holiday Quarter that matters most, but theyre selling into it. So they beat in that one its probably encouraging. But right now this reflex is just bringing that stock back to where it was not that long ago to put it in perspective, stocks up 16. 5 right now on the heels of this results in the afterhours trading. Your thoughts . You know, ie the other guests were saying, its been beating down. I would be interested to see the guidance Going Forward frozen ii merchandise will be coming online in the next few months s that hasbro, and how that will interact with sales of American Girl and barbie, that eare mans to be seen im a father of four girls, so i tend to have a little bit of knowledge in this sector and the daughters are eagerly awaiting frozen ii. God bless you that sounds like its a lot of American Girl dolls, potentially, to be buying outfits for. Paul hickey, Barbara Duran, thanks for joining us today. Thank you still to come, at t unveiling details of its new directtoconsumer streaming service, hbo max, and david far ves tobediin the latest when closing bell returns in 90 seconds. Mini is a different kind of car. Ladies and gentlemen for a different kind of drive. Ladies and gentlemen for the drive to create a new kind of family car, that became a new kind of race car. For the drive to rebel, zag. For the drive thats inside you. And inside us. Thats the drive under the hood of every mini. Because every mini is. For the drive. Welcome back to the closing bell. Mondelez earrings are out and leslie picker has the details for us hi, morgan. Its a beat on the top and bottom line for mondelezs Third Quarter. On the top line, they reported 6 6. 36 billion in revenue that compared with thewas expecting. So slight beat on the top line earnings per share on an adjustedas cents per share. That beat by about 4 cents from what wall street was expecting they also reported some adjusted guidance numbers, expecting organic net Revenue Growth now along the lines of 3. 5 plus percent for 2019, and also adjusted epps growth of 5 to 7 for 2019 so that stock not really moving too much on these results in the afterhours, down about a quarter of a president back over to you leslie, thank you very much for that bank of america out with a new survey on how the upcoming Disney Plus Streaming Service will impact netflix. Just 5 say theyre likely to cancel netflix when disney plus launches 20 says they will subscribe to both, while 22 say they wont subscribe to either. 28 say theyll keep netflix but wont sign up for disney plus. 2 say they dont already have netflix, but will sign up for disney plus. And 12 say theyre unsure about what theyll do. Meanwhile, were less than two hours away from the unveiling of warner medias upcoming streaming service, hbo max david faber is there with a preview. And hell also tell you which bracket of that pie chart we just went through he will fall into it. Just joking. Reporter yeah, wilf, i cant see it, but that was a lot of percentages there. Im glad you got down to that 2 who have no idea what they doing. We know whats going on behind me an hour or so 40 minutes from now, an important moment for at t and warner media led by president , coo, and head of warner, john stanky, who will be joined during this very long presentation where theyre going to be rolling out so many of the details that we are still not in possession of in terms of their streaming service, hbo max, which will be hbo and a lot of other content, including 10,000 areas of library, a lot of expected new shows but the keys will be, will we learn anything new about technology, tieins with the at this point wireless brand, beyond what we assume will be the case and midwest importantly, pricing, which figured so prominently the last time i was at one of these unveilings, which was back in the spring, on the backlot at disney, where they unveiled disney plus, and it was that price, 699, that certainly grabbed a lot of both the attendees there and has resonated in the marketplace ever since so where will this service be priced its expected to be priced far higher, given what the current prices of hbo, and the fact that you have all of the distributors out there, such as our Parent Company, comcast, who are already in the marketplace at that price can you really cut it . Well, probably not how much higher can you go it remain ascii question or are there going to be different ways they can link it to Different Service offerings to bring in a price that is at least something more compelling, perhaps. Because that is and has been the key focus of so many have been waiting for this day but theres going to be a lot more there as well, in terms of content and in terms of new shows. As i said, stanky will be joined by greenblatt, whos running so much of the programming for the new Warner Service and a number of others so we will be attending, we will be watching closely, as will much of wall street. This is seen as certainly, wilfred and morgan, one of the keys for the future of at t, which we spoke a lot about yesterday, given their new targets for 200 basis point improvement in margins and an increase in ebitda of 6 million over the next three years. Theyve got to make sure that warner stays a very strong property and directtoconsumer is one of the keys for that. Cavdavid, you talked a lot au pricing and what thats going to look like and everybody is watching that very closely right now. When you see disney come out and partner up with verizon and basically offer that service, free for a year, i wonder what kind of similar offerings at t and time warner could make with this and whether the bar has basically been set, given the fact that we have already gotten so many details from so many other players in this market i mean, certainly, morgan, theres an expectation that they can and will do something along the same lines of verizon, as you said, and disney did last week when they broke that news, on squawk on the street with us last monday but beyond that are other questions in terms of tieins with directv and in terms of perhaps some sort of new service offerings. Directv, now known as at t now, the hemorrhaging of subscribers both at direct and at t, what will be wrapped in there is another question but, yes, they do see it not just as important, obviously, for warners future business, but as you point out, for the wireless business. They have stuck with this idea that you can by offering this kind of a surface continue to decrease churn thats another question that some people are still wondering whether the answer is yes to yeah. I think it said time warner, but you know what i meant. David faber, thanks for joining us were looking forward to all of these details as you get them. David faber. Lets send it over to mike santoli for his third dashboard of the day, which is looking at media stocks yeah, picking up right there, morgan actually call it an new platform the market has been following this for little over a year. It was actually about 13 months ago, the s p reshuffled its sectors and created the Communication Services mix, which mashed together old media, new media, telecom this has been the performance of the sector itself, thats the xlc, as well as disney, at t, netflix, google. What you see as a rule is, netflix has really lost what part of the huge premium it has been given and to varying degrees, the incumbents like disney and hbo have picked up some of the slack. It really seems as if the market is saying, yes, the market is big enough, streaming is, for multiple players, but netflix will have to lose some of that head start value that it was granted all that time. Now, if we dial back a few more years, netflix is still way ahead of the game. Its obviously built up a tremendous amount of value, but right now, its considered a little more of an even fighter or free for all. Fireeye earnings are out as well the earnings alert continues shares of fireeye down about 4 after it reported a beat on revenue and eps, exactly 1 cents above the estimate of 1 krcents for earnings and also reported higher fullyear revenue guidance however, the stock has been trading down afterhours and all day on reports its struggling to find a buyer. Reports are it hired Goldman Sachs in pursuit of that sale. No buyer as of yet shares of fireeye are down about 4 frank, thanks very much for that amend, and eric chemis got it for us amd numbers basically in line 18 cents are the earnings. The revenue a slight miss, 1. 08 billion, versus the 1. 18 billion that the stock was looking for that stock up 3. 2 that stock has doubled in the past few months. Continuing to stay strong, amd earnings eric chemi, thank you stocks up 2. 5 right now in the afterhours trade. J j is rallying in afterhours trading, as well after new testing found no asbestos in baby powder that was previously tested by the fda you can see those shares are up 3. 5 well discuss the outlook for the stock straight ahead and later, the false political ads controversy at faceokhen bo wwe speak exclusively to facebook cofounder, Andrew Mccollum do you have concerns about mild memory loss related to aging . Prevagen is the number one pharmacistrecommended memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. [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 welcome back to closing bell. Johnson johnson just reopening moments ago. The stock was halted last hour and remained halted through the close on the news that the Company Found no asbestos in its baby powder after 15 new tests in a bottle previously conducted by the fda the company also says it conducted 48 new tests from the recalled lot of baby powder through two Third Party Labs and found no asbestos. Joining us now to discuss on the phone is jeffries analyst jared holt thanks for being with us today stocks trading higher right now afterhours. Your thoughts on this . Morgan, whats going on i mean, this is viewed as a significant positive i think just in light of what weve seen the stock do the past few times that theres been a talcrelated headline, every time the stock gets hammered so the stocks value or the equity value is lost Something Like 40 to 45 billion, you could argue, on this one issue alone, and clearing by third parties is very significant in my mind. I think the stock should react really well tomorrow its up about 4 , jared, in afterhours trade. Do you think its traded lower my more than that relating to this issue recently . Of course, theres been a lot of question marks for the stock of late definitely. I mean, you go back to last december and look at how poorly the stock traded on the initial headline that the company knew about the issues related to talc, there have been a couple of subsequent headlines over the past couple of months. And now you have this event, who should get the stock back up this lost 10 billion to 15 billion in market cap last week. And i would think it gets rou roughly that back. I know its still going to have an overhang on it until all the cases are resolved, but this is a Huge Positive in my mind soy reali i realize there ara number of different thing going on with j j in general right now, jared, but the baby powder piece itself the fact that youve had some of these negative headlines theres been litigation, fears, its one of those things thats been hard to quantify the impact it would have on consumer awareness. Would you expect that those types of tests are going to be just as effective in terms of consumers understanding that theres not an issue here as the negative headlines were . I think it should help, morgan i think if you look at the results that theyve put up recently in consumer, theres been a lot of improvement over the past year, as far as consumer segment growth at j j, i think consumers are already coming back to the brand we put out something last week from the trading desk here suggesting that until these issues were resolved, given the fact that the stock traded off every time, maybe the company would be best off recalling it completely and putting it back on the market until the fda or another third party had inspected it now, theyre getting a clearance today, so its happening fairly quickly within one week, but all of this should help to resolve the situation and get consumers back onboard with the brand. All right jared holtz, thanks for joining us j j stock is up nearly 4 in the afterhours trading. Boeing ceo was grilled on capitol hill earlier today why didnt we react why didnt we ground that aircraft a lot sooner so another tragedy wouldnt happen . What these chief pilots described as egregious and crazy. You should take, you know, offense to the fact that people say its a Great Company not being run correctly. Up next, well have more highlights and how the testimony could impact boeing and the future of ceo Dennis Muilenburg. Were back in a couple of minutes. 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. Im not really a, i thought wall street guy. Ns. 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 welcome back time for a cnbc news update with sue herrera. Hi, sue. Hello, wilf hello, everyone. Heres whats happening at this hour republicans and democrats in the senate are closely watching the house impeachment inquiry. The house is expected to vote on the inquiry resolution on thursday this speaker is going to lay out a process which will outline what the house is going to do. Well all be looking at that to see if it meets the normal due process standards that we would expect to be provided to the president and his Team Donald Trump may want to shut down the government again because of impeachment an impeachment inquiry he always likes to create diversions i hope and pray he wont want to cause another government shutdown, because it might be a diversion away from impeachment. Jimmy carter with Teach Sunday School this weekend the mirantha Baptist Church originally said the former president would take the weekend off, but mr. Carter changed his mind and decided he felt well enough to teach. And were glad to hear that. Thats the news update this hour guys, ill send it back downtown to you, morgan we are glad to hear that, sue. Sue herrera. The earnings have been coming in fast and furious after the bell. Electronic arts higher after higher than expected sales amd matching on the bottom line and missing on the top line. Mondelez and amgen both lower despite better than expected earnings and mattel soaring after a big earnings beat. The toy maker also announcing a new cfo and an end to its whistleblower investigation into accounting issues and you can see right there, the stock is up well now about 2. 5 , it looks like. Boeing ceo came under fire from lawmakers today, after the safety of the 737 max came into question once again. Phil lebeau was at the hearing and he joins us now with more. Wilf, one of the big themes today is whether or not boeing has been forthright when it comes to the 737 max and there were more than a few senators who would have either come out and say, pointblank, no, you have not been, or suggested that boeing has been hiding truth about the max for several months you have told this committee and me halftruths over and over again, including in that meeting. This is why im so upset you have not told us the whole truth. And these families are suffering because of it. Those families, they were relatives and friends of victim who died in the two 737 max crashes. They were there in the Senate Hearing room today with posters showing the faces of those who were victims in one of the two crashes for the 737 max. Dennis muilenburg for his part stuck to his script, essentially saying, boeing is committed to safety and oversight you all know the people of boeing these are 150,000 people that every day come to work, because they have an Important Mission they are honest, they are resolute in their efforts. They are committed to safety thats our culture and every employee at boeing, thats just how we think about the work we do and were going to continue to improve as a company im not saying you know, weve done everything right, as ive noted today, weve gotten some things wrong we will hear much the same from Dennis Muilenburg tomorrow when he goes in front of another committee. This time with the house take a look at shares of boeing, guys his testimony today did not knock the shares down. In fact, theyre up today, what, more than 2. 3 and thats largely, i think, because people are saying, look, the backlog is not changing on this plane its still, you know, a bad story for boeing, but theyre going to get these planes eventually delivered thats the belief amongst investors. All right phil lebeau, thank you yum china earnings are out now as well and were going to get to frank collin for those. Frank . Shares of yum china up pretty much flat right now after the Company Reported a misson the top line and a beat on the bottom line. Comparable store sales fell more than a percent below estimates its kfc franchises in china falling below estimates, almost a percent. Its Kentucky Fried Chicken excuse me, pizza hut franchise is falling about half a percent below estimates. The company also says that higher labor costs and chicken costs impacted margins again, shares of yum china pretty much flat after a miss on the top line and a beat on the bottom line. Back over to you frank, thank you. Up next, facebook cofounder Andrew Mccollum discusses the changing media landscape and whether there is enough demand for all of the new streaming services set to launch 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. Owning and running the biggesta Small Business is finding the right people. In hiring our first recruiter, we decided to post a job on linkedin. They had to have worked. At a recruiter firm and be bilingual. When we saw ana marias profile. She had a ton of experience in hr. The interview went really well. And she seemed like someone who could really sell mckenzie to perspective employees. We found the best person to find the best person for us. Post a job today at linkedin. Com grow welcome back to the closing bell. It is a parade of earnings after the bell today, in the past 39 minutes. And you can seep all of those movers right now on that television screen. Electronic arts is up was about 1 right now amd has actually just turned lower. Thats down about half a percent. Mondelez is also trading about 1 lower amgen is down fractionally the biggest mover right now on the heels of earnings is mattel after a beat announcing a new cfo. Also, the end to that whistleblower situation at the toy maker, one to watch, especially, as we go into another trading day tomorrow it is a big week for media, with the hbo max investor day kicking off in less than two hours. The company is expected to unveil more details about the streaming service, including the price. Were also counting down to the launch of appletv plus this friday joining us now to discuss the changing landscape in media is Andrew Mccollum, philo tv founding member. Its a skinny tv bundle that also includes some 50 channels thanks for joining us, andrew. Thanks for having me. So i know i was told this earlier. Is it feelo or filo . Its filo. My apologies. Essentially, its a bundle of traditional tv channels just delivered over the top as opposed to down a cable. Hows it going for you and do you think that means that everything will be once again bundled up, but even though theres been some disruption in between . Yeah, things are going very well for us. I think what youre seeing play out in the marketplace today is that, you know, actually tv has never been better. Were in a golden age of c television the content is better thats its ever been whats really broken is the price, the packaging, the product. And thats where were trying to innovate and offer something new. We offer a selection of 58 channels theyre all entertainment lifestyle, knowledgefocused, no sports, no broadcast so a dramatically lower price. Its only 20 a month. And so its a really deferent option out there for people who are looking for Something Different from what traditional tv has given them. And it also, you know, works on any device you have. You can sign up in under ten seconds. It gives you an unlimited dvr. So its sort of like tv with superpowers. This week, were talking all about the new launches, whether its hbo max, disney plus, of course, the ongoing battles between the likes of netflix and amazon prime do you think all of those competitors will one day perhaps one day soon, be offered in bundles together, even though right now, were focusing on this fierce rivalry between them i do think that over time, youll see a trend towards more bundling you know, i think the past five years in the tv landscape youve seen a lot of fragmentation, and there really is a limit to how Many Services consumers are willing to sign up for individually and have separate apps and separate logins and separate billing details and also, the marketing cost of marketing all of those separate services is a huge expense that will either lead to higher prices or make them unattractive as businesses. So, we really believe that bundling can be valuable to both consumers and content providers, as long as youre doing it in an intelligent way, as long as youre offering content that makes sense together and giving people access to more for a reasonable price so i think even with these services, you know, i think theres a good chance in the future they will become part of, you know, part of bundles themselves, or at least available within other services. Now, i know philo doesnt offer or create content, i should say, and weve seen content costs skyrocket in general. How important do you think original programming is to this landscape, overall, especially as all of these new Services Launch i think if youre trying to go it alone with a true directtoconsumer model, where you are creating the app and delivering all the content endtoend and trying to market and attract subscribers for that service, that original programming is really vitally important for attracting attention. And thats why youre seeing this escalating battle between the new sspot entry in this space, trying to attract more interesting content. Its very different in the traditional world for a series like ours, where the brands and channels we carry are very we wellknown to people it creates a slightly different incentive model. For us, we have a different approach were trying to build the best platform and the best technology to deliver the best content experience, no matter where the content comes from and so i think at least you do it a different approach. I think the escalating war over original content is going to reach a head soon. And andrew, lastly, before we lets you go, as a cofounder of facebook, i have to get your thoughts on that company weve seen some of the other cofonders and early employees of the company, we talked about this on our air yesterdaybe a little more critical of facebook, especially given all the scrutiny its facing and all these issues that its trying to wrap its arms round right now. How do you see it . I really think this is something the entire Tech Industry is sort of getting their arms around now, which is for a period of time, theyre really its fair to say, was not a lot of scrutiny on some of these companies. They were a lot smaller, they were growing, and they werent necessarily seen as a giant powerful forces in our society that weve seen today. I think in the last several years, youve seen that change theres been a lot more scrutiny and look at what the effect really and how much and the power that they have and i think its a productive conversation its hard to know where it will lead, but i think its good that, you know, were having it. And engaging in that do you still own a lot of stock yourself, or have you sold out fully . Well, you know, i still am a big believer in the company and the folks that lead it, so i would say that okay, fair enough, andrew thanks so much for joining us. Appreciate your time thanks. Still to come here on closing bell in the week ahead, well move to the content side, live interviews with hollywood producer brian grazer. And friday, a special one. Legendary media mogul, logan roy. Well, actually, the actor brian cox, who plays him in the Media Business in reallife, the one depicted, of course, in the show secession. Youre so excited about this, arent you i am, although im rather sad that i wont actually be here on friday but i will be watching for sure, lws, when im not here closing bell, back in a couple of minutes we call it the mother standard of care. Its how we bring hope to our patients like viola. Her team treated her cancer and strengthened her spirit. So viola could focus on their future. Cancer Treatment Centers of america. Appointments available now. If yothe medicare enrollment up. Deadline is only weeks away. Having the wrong plan may cost you thousands of dollars out of pocket. Thats why i love healthmarkets your insurance marketplace. With their new fitscore, they compare thousands of plans from National Insurance companies, to find the right medicare plan that fits you. In minutes you can find out if your current plan is the right fit. Does your plan have 0 copays, 0 deductibles, and 0 premiums . If not, maybe its not the right fit. Does it include dental and vision coverage . 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The market, given the fact that the market itself is at a record high these are nonprofessionals, so its a more contrarian signal than a confirming one for the market mike, thank you still ahead, big tech on deck. Both facebook and apple set to report after the bell tomorrow the key things every investor needs to know when closing bell returns. When you look at the world, what do you see . Where others see chaos, we see patterns. Connections. Relationships. When you use location technology, you can see where things happen, before they happen. With esri location technology, you can see what others cant. Well bang. We have a market flash op edison international. Erick chemy has. On the Earnings Call right now, saying that the local Fire Department outside of los angeles of Ventura County Fire Department says its equipment was most likely the reason for the woolsey fire outside of los angeles a year ago costing billions of dollars in damage. Thats why the stock dropped about 20 before rallying. Down about 4. 5 right now. Thats from the Earnings Call it does think its responsible for a marilyn fire in los angeles a year ago back to you, which will of. Thank you for that erik we will watch the stock price after hours. Up next a huge day for earnings with apple and facebook top the list of for things to watch. A preview of the reports when closing bell comes back. Each day a little sweeter. Adp simplifies hr, benefits, and payroll for magnolia bakery, so employees like sarah can achieve what theyre working for. Fidelity has zero commissions for online u. S. Equity trades and etfs, plus zero minimums to open a brokerage account. With value like this, there are zero reasons to invest anywhere else. Fidelity. 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 . What would you like the power to do . Stand up if you are first generat crowd cheering ent. Stand up if youre a mother. If you are actively deployed, a veteran, or youre in a military family, please stand. The world in which we live equally distributes talent, but it doesnt equally distribute opportunity, and paths are not always the same. Im so proud of you dad. [man] i will tell you this, Southern New Hampshire university can change the whole trajectory of your life. uplifting music looking ahead to tomorrow, the fed wrapping up the to you High Pressure day meeting with a the crucial decision on rates. Also earnings from apple, facebook, starbucks and lyft and more lets start with a preview of apple. Josh lipton has that. Here is what we expect from apple. Q 4 eps of 2. 84 on revenue of 63 billion. Flat year over year on the top line investors want guidenens for the Holiday Quarter. Right now the street at 83 billion. A jump of 3 year over year. Finishing if the red today but soared this year np up 70 from the low in early january become to you. Interesting intraday action today. Josh well watch it. Facebook reporting tomorrow. Jewelyia with a preview that have. Which will of investors expect facebook to move past headlines about regulatory scrutiny for the company to expand user base while instagram is expected to help it grow the advertising revenue. Revenue for the quarter projected to grow over 6 to over 26 to 17. 4 billion while earnings are expected to return to growth of nearly 9 to 1. 91 per share. Now facebook shares are down 6. 5 since the alltime high the stock hit ahead of the last earnings remember last quarter the Company Announced a second charge no discover cover the fine and throes the ftc investigation. Back to you. Julia, thank you for that were minder closing down 8 backups on the s p pop nasdaq down 6 points. That does it for closing bell. Fast money begins right now. Live from the Nasdaq Market site over looking new york citys times square this is fast money. Our trieders are pete naerjen. Brian kelly pb dan nathan and guy adami. Grub flub, shares melting more than 40 the desk will grab yap kins see if there is anything left. The highly anticipated decision day, jami bianca says the fed playing with fire. We discuss but we begin with boeing ceo Dennis Muilenburg grilled by