Transcripts For CNBC Closing Bell 20240713

Its now been 53 days since the president announced the phase one deal with china was agreed and just waiting to be inked thats 53 days and counting. Joining us for the full first hour of the show, Wealth Management ceo josh, did i pronounce it correctly nailed it todayly rsi, people toss around these terms, overbought, oversold they use them qualitatively. The market went up a lot its overbought. Theres a technical definition to things like being overbought. By any stretch of any way you want to look at it, we were overbought on something called rsi. S p 500 we hit 75, the most overbought weve been technically since january of 2018 and we know what happened after that a very swift 17 selloff. So its not shocking that you have big down 400point day in the dow. The big takeaway for me, to answer your question, is the biggest mistake you can make is go to these extremes of bullishness, bearishness, based on each days action today is the mirror image of yesterday, total reverse tomorrow could be a vee verse of today and Nothing Specific fundamental has to have changed. And i think you have to get yourself in that mode where you accept the fact that not any of these activities are worth extrapolating. New consumer high in staples back on the horse like Nothing Happened yesterday you may see that in banks, too regionals up big today they looked like death yesterday. This is the mentality you need to adopt you cant take each day and completely change how you feel about everything its a money loser. All right a lot more with josh for the next hour plus lets focus in on the big stories were watching today Kayla Tausche has headlines. Mike santoli is kicking off his market dashboard with a look at googles c sweep changes kayla, first to you on trade. Morgan,what a difference between today and yesterday. Exemplary of how quickly the outlook on trade can change. Yesterday President Trump was pessimistic about a preelection deal today everything is fine stopped providing readouts of calls between principles secretary of agriculture sonny purdue said it remains to be seen whether the two side also hold a call before the deadline. China has been buying soy beans from argentina instead of the u. S. And tariffs on those countries are a result of that soy bean suppliers and signing a bill backing hong kong demonstrators, lawmakers want an audit of chinas business scoring system that may penalize u. S. Companies doing business there. All of this is ramping up pressure to try to get china to cave by the 15th, wilf well see how this all shakes out. Kayla, we certainly will. Otherwise the market reacting positively today up. 8 two days away from fridays key job number one metric out this morning raised red flags Steve Liesman is back with that. Big miss on adp, raising concern that fridays job number from the government could come in weaker than expected. Adp saying total payrolls rise at 67,000. Street was looking for 150,000 down from a weak number in september already. Big part of the miss there down 18,000, and nonforeign payroll estimate for friday, 187,000 thats private and Government Employment few, if any, economists actually lowered their forecast in the wake of it several reacted like, quote, adp data for fridays jobs report where we still expect a 190,000 payroll gain why job growth is yet to weaken with Overall Economic growth fell from above 200,000 monthly beginning of the year to south of 150,000, april through july period it is since back up to 167,000 slight miss in the ism Service Sector suggests some miss there. Friday jobs report will give us a clue whether it will slow with the overall economy or keep making its way through these headwinds, as it has, wilf. Steve liesman, thank you. A lot more to watch here the next couple of days. Lets send it over to mike santoli for todays market dashboard. Google as its founders stand back in found money, very popular and famous and successful tech founders lost decade for stock picking around the world compared to the u. S. , a pretty stark chart we have there and seeking a frontier frontier evaluation for the u. S. Market compared to its bull market and finally finding the good some corporate values being conveyed in a conference call. Here we have a chart that tracks alphabet against microsoft, sales force and amazon each of them tracked 15 years since their ipo. Google became public we use the same time period to 15 years, 3 months later for each of these. First thing to say, theres no losers on this list. Alphabet has increased nearly 3,000 compounded fo r more than 15 years, its a tremendous return really also points out microsoft. Can you believe this up almost 60,000 . Bill gates, when did he step down as ceo and step back . Right about there, absolute Perfect Timing on the entire thing. Amazon, no surprise, hasn its founding ceo by the way, guys, microsoft at its ipo was trading, already profitable at about eight times earnings it has everything to do with the era. In 80s we didnt give multiples to tech companies. Thats obviously changed. Its a fascinating snapshot there and how microsoft out drls performs and how small sataya nadellas pullback looks to the foal. Think about that, 600 billion, only a handful that big and that was 20 years ago for microsoft. Mike, thank you very much see you later. Expedia, one of the corporate stories today. Diller is the chairman at iac and expedia. He has deposed both the ceo of iac and expedia. Will oversee daytoday operations until the board works out a longterm leadership plan. Could the shakeup lead to a muchneeded turn around . Bring in daniel colonels very good afternoon to you both. Daniel, ill start with you. What was your take on the outgoing leadership on how theyve been doing you know, its hard to say that theyve been doing a great job. I think wall street was looking for an acceleration in growth and they werent really getting it 2020 after all the investments they made, migrattion to the cloud, theyve got a lot less indexes to hotel than booking. A lot more opportunity rolling out supply in multiple countries across the world all of a sudden out of the blue you get a growth cutout look i think it was a big surprise, almost like the announcement today. So, kevin, i mean, were seeing the stock rally, like 6 , 6. 5 on this news. There are some big ger, potentially much more challenging issues, whether its the seo search, need to push into shortterm rentals. How does that play out and how sustainable is the bounce were seeing in stock today . Thanks, yeah. I think its important to point out that expedia is a healthy company. Theyll do over 110 billion of travel bookings next year. And they do over a billion in operating income, over half of their bookings are in high margin lodging when you look at some of these pressures like declining free google traffic, definitely an issue. Theres also a lot of opportunity. And i think thats why i think thats one of the reasons youve seen the stock react positively today, particularly when it comes to the potential to do some cost cutting, given their low margins today. Daniel, who can run this company . Are there names being tossed around right now or a name you would like to see . Thats a tricky question. I dont know that there are any sort of organic choices within the company. I think externally, its hard to see Somebody Just slotting themselves right in on the longterm outlook here nearterm, since seo was an issue, that could lead to immediate fixes. I dont think youll see any nearterm hiccups, but someone will have to come in to run the longterm plan here. Im not sure someone is earmarked yet for that. Ruthlessness from barry diller, do you love it, hate it . I think barry diller ought to get his way. Its the way weve built the markets and it makes sense to me im curious for either of you gentlemen, are there too many options for booking travel i know theres been some con solidation but maybe not enough. Lets keep in mind they compete directly with airlines and directly with Hotel Booking as well how many of these should there be to right size this market look, i would tell you that you have a lot of options, true. But we havent seen hotel get their act together until maybe the last five years. Theyve tried a bunch of solutions and havent had any traction bookings growth rate across the industry you can see hotel has maybe started to take back a point or two of share. Its not been super meaningful where you see that consolidation is internal lodging. Thats where you get the air bnbs maybe where expedia went wrong was with the vermo rebrand the growth has been very muted there. Internal lodging has a lot of room to consolidate. Core eta, were in a good place there. Recession, counter cyclicality, maybe the story looks different. In the near term i think the player base is about right. Can we see divestiures within the brands no. A number of those brands are owned by expedia and running on a single platform. Hotels. Com, brand expedia, travelocity, orbitz, theyre on the same platform and have realized cost savings there. You wont see them get rid of those. Can you talk about consolidation, you have three huge players and thats expedia, booking. Com and air bnb. Weve seen significant consolidation there. The fact is that consumers like to go to a site where they can compare across millions of lodging options and thats what these sites are providing. Thank you both very much for joining us great to see you. Thanks for having me. Thanks. Opec members get set to meet in vienna. Well break down what to expect with helena croft. Peloton going viral for all the wrong reasons. How is the stock doing after the break . [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 44 minutes left to go in the session. Major averages are higher, snapping a losing streak s p up 23. Reclaiming, regaining all the losses that we saw yesterday as i mentioned, less than 44 minutes to go. Lets check in on individual market movers. Go pro searched up nearly 9 but fell throughout the session now just up 2 nick woodman commenting on the kickoff in a news release, quote, we crushed it a fraction of what it was valued at back in 2014. And it is, as we said, 2 today. Peloton has been in the news because of its strong reactions to its holiday commercial, the company responding in part, quote, were disappointed in how shom have misinterpreted this commercial, sending cnbc pages of positive emails it received about the ad the stock was down 8 or so since monday but surged on black friday on report of strong sales. Well get the price up for you now. Might take on all of these commercials. Theres plenty for it is its poor execution as opposed to necessarily poor targeting they have a very, very expensive product. Theyve got to go after a certain demographic of people. Some of them are pretty cringe worthy poor execution rather than necessarily the wrong target it does remind us, though, its an expensive product theyve got to be focused. Thats not whats offensive, though, about the commercial what people are saying there have been different takedowns, here is my nice peloton in an expensive apartment. Thats one group. Another group is saying its sexist if it were funny, if there were more humor in the commercial people would say i get the joke. Theyre doing this sort of seriously. Yeah. And i guess people dont like to be depicted that way. I know male and female people that are like that with their pelotons. Lots of people. Worthy of scorn, regardless of what gender they are. Like the sorry, not sorry statement. Shares down 2 right now. Lets get out of this segment before i get in trouble. Well keep it movie Parent Company nbc universal, is an investor in peloton. Forget everything i just said love it rising more than 4 today after new data showing unexpected drop in u. S. Oil inventories. Opec is set to meet in vienna, where it will increase Production Cuts. Great to have you, helima. Weve had geopolitical events that could affect crude prices. Yeah. I think all eyes will be on the question of does opec go deeper with their cuts . Iraqi oil minister came out at the end of last week and the earlier this week doubled down on comments that opec was looking potentially to increase their cut by 400,000 barrels and that is expectations that we could get a deeper cut now this deepercut scenario is becoming baked in. And if opec fails to deliver that deeper cut, if they roll over the existing 1. 2 million barrel day Production Cut for six months, thats going to be a disappointment i think theyre working hard right now to come out with something that satisfies the market and provides a selloff. Helima, im interested on your take of the overall theme of some of the highest profile there in the saudis in terms of support they feel they still have from the u. S. And u. S. Allies, given some of the geopolitical things weve seen erupt over the last couple of months, involving turkey and syria or the attack on saudi arabia. I think thats been a big question mark. Not only for saudi arabia, but kuwait, uae. What is the u. S. Role in protecting our key allies in the middle east . What is the u. S. Role in protecting critical gulf infrastructure do we still have the carter doctrine, a doctrine that thes would protect these Energy Assets President Trump has been really clear that a lot of the middle eastern oil is going to asia, not the United States. He does not believe he needs to become as involved in protecting these interests as previous administrations would have been. I think the u. S. Energy story is repositioning its role in the middle east. What does that mean to dig in a little further, here in the u. S. Weve seen rig counts come down, lot of question marks on producers, given the fact that oil prices have been stubbornly stuck in the 50s all year the intersection between u. S. Producers and opec, is it changing no. Thats an interesting question, because i think the u. S. Producers have been given a significant financial lifeline by opec and President Trump has been critical of the organization he has been taking to social media, calling for them to put additional barrels on the market yet if you talk to opec officials they say look, weve helped out u. S. Shale producers for providing this floor in terms of crisis. Now the geo political question for a lot of the opec countries is if we get further attacks on key allies in the middle east i think theres a view that the iranians are not done in terms of causing discontent and problems in the region because they want sanctions removed. If we see more attacks like weve seen since may on critical infrastructure, will the United States do anything to establish the turns again in the region . Josh, whats your take as to whether the broad Sector Performance of energy we might dive into names later, but the broad Sector Performance is overdone this year relative to all the other sectors in the s p. A lot of investors find themselves looking at the energy names as the calendar turns over theyve been trailing. We actually ripped through a ton of charts at the industry level and then some individual stocks. Stay tuned for my last chance trade. Believe it or not, it is energy related. Found a good one. Cliffhanger for you. Like how i did that that was good. Ive been doing this a while. Helima croft thank you for joining us have a good trip join us from the ope krchc summt tomorrow with Brian Sullivan. S p up. 7 nasdaq up. 6 , all snapping threeday losing streaks for the major averages after the break, two firms out with new calls, laying out food names that could be impacted the most were breaking that down next. Later were counting down to a big afternoon of earnings from slack and first report from rh since beshe. Rkir well preview what to expect in todays market zone. Welcome back to closing bell. It is time now to get to word on the street united technologies, best idea for 2020, calling it a stock for all seasons, saying united techs otis and whitney divisions are at cyclical turning points plus liking the raytheon merger which, quote, gives the story additional legs. Shares up 1 maxim group on apple, 190 price target survey data shows declining iphone user retention rates, saying in the last two years, the outflux of iphone users has risen from 9 from 5 . And wheres the beef . Guggenheim out with beef prices in 2020, why they think beef could be a bigger risk than pork they expect restaurants to lean into chicken products, shake shack, habit restaurant, jack in the box and wendys are the most Share Price Movement off the back of that habit and jack in the box down 1. 5 themselves. Whats your take on these restaurant plans still like shake shack despite this beef price warning . I do. Lately ive been getting the chicken shack. Which is excellent. My nutritionist wants me to have more chicken, less burgers. So i have two of those. With a bun and the nice like covering excellent. But these chicken sandwich wars have been a big thing now it seems like maybe theres financial incentive. Chicken sandwich wars were no joke this year i think im ready to crown the winner its chickfila. The deluxe. Chickfila is good. Popeyes one thats good too. But its very fast foodie you feel like you ate fast food after it shack one is less calories you could have plans after dont have to clear your schedule after that. Have you tried the tofurky one . No. You should. Not kosher. Were trying a new product later in the show which im looking to immensely. Im sure you are. Do you do more volume on stocks or burgers . Come on way more volume in stocks. All right 31 minutes left to go. Well take a break in this fast food chain. Here are things driving action. President trump says negotiations with china are going, quote, quite well private payrolls slows and oil having its best day since september, up 4 right now. Its time for the cnbc news update sue herera has it for us hello, sue. Hi, wilf, everybody earlier, President Trump blasted House Intelligence Committee chair adam schiff at a nato news conference. I think its, you know, its a disgrace you have a loser like a stonecold loser has been all his life, adam schiff then you have nancy pelosi, who agreed with what he said, which puts her in real jeopardy. Active shooter locking down Jackson State University in mississippi. The lockdown was soon lifted as School Officials said there was no longer a threat however, the Jackson Police department is investigating a shooting on campus earlier in the day that injured one man this morning. And Sony Music Entertainment has signed an agreement to be the exclusive north american pu purveyor of beatles tshirts and memorabilia, in the growing merchandising market youre uptodate. Thats the news update morgan, ill send it back downtown to you. I know how lucrative the publishing has been. Oh, yeah. For those beatles songs certainly one to watch thank you. You got it. Lets send it over to mike santoli for the second installment of market dashboard. Its been somewhat of a lost decade for global stock pickers, making the rounds today. And i think some nonu. S. Fundamental stock pickers have been dabbing their eyes. It shows you the percentage of stocks over a one or twoyear Holding Period around the world. What percentage of them have beaten the s p 500 over that horizon . What you see from 2009 on, fewer than half for sure recently its really plunged down into the 20 area have some little bit of a comeback for the oneyear Holding Period a clear minority of stocks outperforming the s p. It was similar, by the way, to the late 90s when you had a growthdriven, u. S. Centric global he can with wit markets, pretty much ended with a crash of the tech bubble this is when you outperform if youre a global stock picker value is leading the indexes are underperforming and you had emerging markets, credit and commodities level lifting World Markets well ahead of what the u. S. Did are we heading in for another regime shift here, shift higher . Its very much unclear whats interesting is you see these big, sharp rebounds . Thats after a big global selloff in the Fourth Quarter last year and after the 2011 downturn as well so, kind of sobering, but really quick snapshot of the u. S. Versus the rest of the world stock markets right here it shows you the same picture in a different way. Thats everything but the u. S. And thats the u. S. Over a decade here, guys. Mike, thank you very much for that stock differential and performance there. Weve got 28 minutes left of the session. We are still higher, but just slipping a little bit. Were only up. 7 now on the s p and the dow. Coming up, weve got your last chance trade weve had a tease of which sector its in already. We have up next, amazon about to break into the big leagues well discuss a new report that says amazon could be on the verge of inking a streaming deal with the yankees. As we head to break, check on bonds yields moving heavier following yesterdays big plunge, tenyear yielding around 1. 77 . So what are you working on . Im searching for info on options trading, and look, it feels like im just wasting time. Wasted time is wasted opportunity. Exactly. Thats why Td Ameritrade designed a firstofitskind, personalized education center. See, you just oh, this is easy. Yeah, and thats oh, just what i need. Courses on options trading, webcasts, tutorials. Yeah. Their awardwinning content is tailored to fit your investing goals and interests. And it learns with you, so as you become smarter, so do its recommendations. So its like my streaming service. Well exactly. Well except now, youre binge learning. Oh, i like that. Thank you, i just came up with that. Youre funny. Learn fast with the Td Ameritrade education center. Call 8662967451 or visit tdameritrade. Com learn. Get started today, and for a limited time, get up to 800 when you open and fund an account. Thats 8662967451, or tdameritrade. Com learn. phone ringing a phones offers big button,ecialized phones. And volumeenhanced phones. , get details on this state program. Call or visit and accessoriesphones for your mobile phone. Like this device to increase volume on your cell phone. phone ringing get details on this state program call or visit welcome back now amazon reportedly making another major push into streaming. Julia boorstin has the details. Amazons coverage kicked off last night with two matches, streamed simultaneously for prime members. Part of a deal amazon inked last year to stream 20 soccer matches before the end of this month part of amazons broader investment in live sports. The yankees are working on a Distribution Deal with all of their partners, including amazon, blackstone and sinclair, which bought an 80 stake, considering streaming a limited number of yankees games on amazon prime for 100 a year no comment from amazon or the yankees on this report it comes as mlb ratings decline. Theyre trying to figure out how to reach all those numbers. On the uk side of this. Uk broad band than amazons service itself bigger test for them they have six games streaming as we speak and two further games tomorrow but it shows that entering into this space is perhaps a little odder than some think but also their commitment to live sports overall. Absolutely. Live streaming is always challenging. Its definitely harder to do live rather than ondemand streaming. Soccer or football, as you call it its such a popular league. People want to stream this all over the world its possible they have such a massive audience for this that theyre still figuring out some of the technicalities. The issues are on the broad band side people may not be accustomed to streaming a whole soccer game. This might be more than theyre used to in terms of testing out the strength of their broad band this is a huge market in terms of soccer. It seems like well continue to see amazon push further and further. They already have the nfl thursday night games. Right julia, thank you of course, they only have the rights in the uk for this round of games, not here our colleagues at nbc have that. My husband watched a lot of those soccer games on espn plus too. That would be european soccer. I know. Right now he and everyone else is watching cnbc. Yes a deal on a luxury space seema mody has those details for us. Parent of gucci, kering is holding talks to acquire moncler, best known for its winter coat. According to bloomberg stocks are not trading at the moment, given they trade in Europe Canada goose, which also makes winter coats, is rallying up on this report, seeing consolidation in the Luxury Retail space, acquiring tiffanys for 2. 2 billion this is likely to seen as an attempt by kering to rival them. Canada goose up 3. 65 on news that have rival potential merger 7. 5 on s p, recovering a lot of yesterdays declines every single sector on the s p is higher. Last chance trade featuring joshs trade in the Energy Sector ive been a caregiver for 20 years. No two patients are the same. Predicting the next step for them can be challenging. Today were using the ibm cloud to run new analytics tools that help us better predict and plan a patients recovery. Ultimately, its helping thousands of patients return home. And who doesnt love going home. Dont get mad. Get e trade, dawg. Whai tell clients, etfs can follow an index, but which ones target your goals . Its not about quantity. Its about quality. No trendy stuff. I want etfs backed by research. Is it built for the longterm . My reputation depends on it. Flexshares etfs are designed and managed around investor objectives. So you can advise with confidence. Before investing, consider the Funds Investment objectives, risks, charges and expenses. Go to flexshares. Com for a prospectus containing this information. Read it carefully. Josh, whats your last chance trade some of the oil charts look better than others this is halliburton, should be looking at a oneyear chart any moment focus in on that 22 level that was support throughout the spring and most of the summer. We had a recess and it failed. Were back at challenging that level again. If she breaks through, and im willing to bet that she does, this will be as clean a breakout as you get in the oil space. Risking 7 prs. 60 stock two years ago. Justify the potential risk youll be out of this if youre wrong. You look through a lot of other options. This is the one that stands out for you. Yeah. Its a 15 multiple, which is not the cheapest of the cheap. Its cheap enough. Certainly cheaper than the s p and a 3. 5 dividend yield. Even though it marks time in the low 20s. Risk reward standpoint, looking to take a stock thats been absolutely slaughtered and could turn higher, this would be my play above 22 there are very few sellers. Josh, thanks for that one. You got it. 16 minutes left of the session. We are higher by 180 points on the dow. Well go inside the market zone for uninterrupted coverage of the final minutes of trade when you retire will you or will you just be you, without the constraints of a full time job . You can grow your Retirement Savings with pacific life and create the future thats most meaningful to you. Which means you can retire, without retiring from life. Having the flexibility to retire on your terms. Thats the power of pacific. Ask your financial professional about pacific life today. 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. 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. Welcome back weve got a news alert on the new york mets. Leslie picker has it for us. The Sterling Partners and steve cohen, wellknown Hedge Fund Manager have reached an agreement that will increase the stake. Theyre in talks to have cohens stake go up to 80 of the team back in april, forbes calculated the value of the new york mets at 2. 3 billion. Thats the sixth biggest mlb franchise. And the press release does go on to say that steve cohen will continue as ceo and president at. 72 the hedge fund by which he manages and this stake would be run through his family office, Cohen Private Ventures back to you. Get me out. The knicks just saying. One buyer off the table 11 minutes left now where well head inside the market zone, commercialfree coverage of all the action as we head into the close. Mike santoli is here to break down these crucial moments of the trading day. And today weve got josh brown here as well United Airlines announcing plans to replace aging planes from airbus. A big order and big win for airbus doesnt look good for boeing this is an example of whats going on when you cant bring the planes to market that you expected to, with everything focused on the 737 max united announced this late yesterday. It is a significant one. 50 a321xlr those will be delivered starting in 2024, connecting destinations that are farther apart, opening up a number of new markets in europe these planes, as i mentioned, will be replacing boeing 757s. Why didnt they order boeings to replace those 757s because boeing doesnt have one. They were expected to announce what they called a plane thats not yet named for the middle of the market that would replace the 757. That was widely expected to happen earlier this year but clearly theyve been focussing on other things like getting the 737 max up and running. As a result, you see the difference here. And i hear this all the time from people. Why shouldnt people say, hey, stick with boeing . The stock hasnt sold off as much as you expect thats the difference. Look at the backlog. 721 orders for airbus. Guess what the total is for boeing negative 95. So that tells you everything right there and why those two stocks have split. Yeah, phil. Some key stats right there in terms of boeing, though, actually announcing a replacement for the 757s, is that completely off the table or shelved given everything thats going on with the 737 . It is seen as shelved and when you talk with boeing executives, theyll say were still working on it, were still a assessing the market the bottom line is american, united, frontier, jet blue, 340 planes have been ordered by those airlines, as well as others around the world. They need this middle of the market plane theyre not going to wait for boeing, thats why theyre going with airbus. Is this single aisle or two its a single ail, but its extra long range so its going to be in that 757 target market right there. And really theres no good fit with whats left at boeing to replace that 757 there are some that you can kind of work into some of those routes, but not a perfect fit. Thank you so much uber may be making moves to take on amazons ceo. He revealed his plans to expand ubers food delivery service, uber eats. If you think about a restaurant, a restaurant is a local box that has 30 skus where the inventory never runs out typically. We can extend and we are getting stuff from that box to you within 30 minutes every single time were really nailing that every single time, predictability. You can imagine that we can extend that model to essentially every single local retailer here so that anything you want in your city, we can deliver to you hopefully in under 30 minutes. Interesting here, because we all know the price pressures, the profitability pressures in food delivery, though this could give you an argument, though it pushes back whether theyll be profitable, for the broader economies of scale that uber might be able to deliver down the line. But theyre going after the parts of amazon business that doesnt really benefit much from economies of scale youre delivering every piece discretely its the part that for amazon is cost so i dont know if winning is really winning, even if you do make progress. Exactly, its the last mile and we get those comments, josh, as cutting dozens of jobs and shutting down their Mexico City Office is there ever a point in time in which food delivery becomes profitable even if it became profitable, its not like a highly profitable endeavor. Its like a supermarket margin its nothing that anyone else wants. And then the bigger question is, are these uber employees or are they not and that is not going to be a uniform answer across every municipality and city and state in this country. There are going to be states that say absolutely not. If you have somebody that spends eight to ten hours of their day carrying out tasks for you, guess what you own them which means payroll tax collecting, Social Security tax, Health Insurance in some cases so that is still up in the air i dont think theres going to be an answer to that any time soon that is a cloud that will sit over this stockand lyft for a very long time. I think super longterm bigger picture, is there something that can be created thats like uber prime where essentially you have a subscription to this very wide range of services . And again, is this going to be profitable shares trading higher after larry page announced he will step down and google ceo will take over at ceo of the Parent Company alphabet in addition to remaining ceo of google. Josh i mean, i own it and im not going to say like im happy with the news to me its sort of neutral. Why well, because i always thought of the alphabet as like this collection of potential moon shots and maybe its waymo or drone delivery or who knows what the next mega business is but sundar, for all of his talents, is a search guy so is this google turning back inward and saying were really in the advertising business, its 90 of our revenue, were a search business and thats the future is that what this represents if so, thats not so exciting. However, its still a great business. It might be exciting to people who are invested in it and think that the other stuff is a distraction. Thats exactly what i think there are people that own this and say why cant you just do search and advertising why are you building underwater helicopters . Nobody wants that. And why are you spending the way that youre spending on these other bets so it depends on what kind of shareholder. But clearly the market likes it more than they dislike it. Investors hoping slacks latest results can turn around the recent slide we have a preview of the release coming after the close. Well, the slack versus teams rivalry has been in full swing over the past quarter, so investors are going to want to know what slack is doing in that increasingly competitive environment. Just a few weeks ago microsoft said teams reached 20 million daily active users the latest number we have from slack is 12 million and thats from october and even with the plunge since its direct listing, slack shares are still expensive relative to other companies. The street expecting a loss of 8 Cents Per Share, guys. Dee, thanks so much josh, we got some numbers recently microsoft, 20 million daily active users. Microsoft is playing a little bit of sleight of hand here and i understand why theyre doing it teams is built in and bundled with 365 its the same as when you open your computer you go on safari or chrome and you happen to have logged into facebook at some point, theyll say youre an active user. Are you really an active user . In fact, 70 of the top 50 customers at slack are also using office 365 so that shows that even the microsoft users and again, slack has 65 of the fortune 100 companies. Even hard core microsoft using corporations also have slack, which shows a preference, i think, for the Slack Service so im not telling you there will be a great earnings report. They scared people in the last report but i dont think that microsoft is hurting slack at all. More reporting after the bell, rh. Investors have be bullish on rh, sending it up more than 45 . Investors including Berkshire Hathaway despite concerns with spending, they may signs of fatigue moderated in the Fourth Quarter. The company has boosted its 2019 outlook three times this year and in doing so, rh has shown it has pricing power. Well be watching after the bell to see if that momentum continues, guys. Back over to you. Meg, thank you. Two minutes left to go lets send it over to Rick Santelli or a rick on bonds. If you look at today, 67,000 on adp, the second worst number in nine years or the third lowest in our nonmanufacturing certainly we made the low right after adp but it moved higher and it continued into the range. Weve grabbed back about half of yesterdays drop if we look at a onemonth chart of high yield, the spreads are widening but its still very well behaved. Bertha, good day in the nasdaq stacked right on top of yesterday. Expedia is leading the way after the ceo and cfo resigned over strategic differences the board authorized a 20 million Share Buy Back the worst, workday offering some fairly cautious guidance for some of the street and software today is a little bit soft but i wanted to take a look at pelaton. Down over the last two days, about 11 from an alltime high on monday of 37 a share but take a look at whats happened here. This stock has been on a tear over the last month since it reported earnings with a 68 Short Interest those shorts have gotten squeezed over to bob. And bertha, fairly broad advance today, better than two to one, and defensive names did really well today. I know a lot of people want to talk about the cyclical names. Food stocks with a terrific day. Weve got a new 52week high on campbells, hormel and health care has been doing well recently and not just biotech. So humana, thats been on a tear thats when the earnings came out about a month ago. Merck also a 52week high. Theres the closing bell we did fade a little bit going into the close the dow gave up about 50 points in the last hour, closing up 146 points welcome to the closing bell. Lets check in on where we finished with a little bit of slippage into the close. The s p was up 6. 5 and the dow up 0. 5 , as was the nasdaq materials just fell into the red after the close. They were led by energy, which was up a healthy 1. 6 . Major averages snapping threeday losing steaks with these gains todays well. Were awaiting Quarterly Results from slack and rh and we will bring you those numbers as soon as they are released joining us to talk about the day, josh brown, still with us, along with chief investment strategist good afternoon to you both mike santoli, to you first weve got some softer than expected data today, but trade, trade, trade seems to be driving the action. Trade and i do think the estimation that what we saw was a shakeout the s p closed on friday rather on monday at 31. 13 and we closed at 31. 13 today. So essentially we undid yesterdays drop but i do think it basically tells you that overbought market pulling back, resetting sentiment a little bit we have suspense about the tariffs on the 15th and all the rest of it but i think the bond market did not panic on those soft economic numbers. Yields did not extend or decline from yesterday they actually picked up a bit. That gave the stock market permission to relax a little bit. Do you think the key focus of the market in the shortterm is whatever headline were getting out on trade i think its trade on, trade off, every day all day thats what the market oscillations are all about weve been seeing for months on end that the market has been really held hostage to these trade negotiations and only in the last couple of months with the relief of month further escalations seemingly in sight, that led to the last 100, 150 points on the s p. Obviously the gains have been digested in the pullback over the last couple of days is a reflection of the concern that perhaps the enthusiasm needs to be taken back a little bit but once again it was restored today. So hopefully the case remains that it will go forward in terms of a phase one agreement and that should be enough to allow the market to continue to advance. Josh, the fact that the two indexes that did the best today were the russell 2000 and the transportation average, what do you glean from that . Its not more complicated than that, they were two of the hardest hit. But transports are interesting theyre still in the middle of this range and havent looked good since february. I dont know that this is really a story of the economy, though i think its a store of the sectors that are in the transportation index, having their own issues so i try not to react to it. It looks more like an oscillator than an index. People that look at that, they say wait, its not confirming the dow industrials. Dont worry about that thats from the 1970s. I treat it a little bit more as a side show. What did you make of the performance of the faang stocks today . Amazon to me is conspicuous that it doesnt really get a lot of push behind it at all its still well below its highs. So to me it was much more about that was not the place to focus today. You had industrials up, you had a lot of the beneficiaries of higher yields moving higher and no money interest being tacked on although google, after the news of the founders stepping back did back on 2 . Mark, what do you like in this market right now . I like financials, speaking of a sector that was just mentioned, and industrials in fact, we move to a cyclical overweight in both of those sectors in the last couple of months as of resteepening of the yield curve and some sides that continue to emerge in a positive fashion that developments over assess are going in a right direction finally through the chinese surveys of manufacturing and services, pmis, to now starting to spill over into other countries around the world that collectively i think are indicative of a pattern of better growth thats starting to develop abroad which is helping the multinationals. Look at the candle on jpmorgan, how quickly that stock was bought up. Like everything it gave out. And when you see that in one of the biggest, most important leading stocks in a sector you cant dismiss it the accumulation was so hard and fast in this name and youre seeing echos of that in the big leading stocks of almost every sector i can rattle off all 11 s p sectors. The big stuff that mattered most and how quickly that candle was fixed from the technical damage yesterday. So i think its a positive sign and i continue to look at names like jpmorgan and nike and mcdonalds and disney. These are the stocks that got it done for you this year they continue to even after a tough day and i think thats noteworthy. The fact that up until a couple of days ago, we were seeing really significant swings in the markets volatility, is it back, here to stay its not clear to me that were on an uptrend on volatility, but i think you have these very long periods when the market just keeps ticking higher quietly, gets above the trend and then once you break that pattern, you do have a little bit of jostling around so i think you have to be on guard for it i think a lot of people looked at todays actions and you could basically say thats a resilient market right there others would say it stopped exactly where you would want to short it in in fact you think that we have some more to go so i dont think weve determined anything today, but it wouldnt be surprising the first half of december often does have choppiness before you get a year end lift. The s p will remain under pressure until the Second Quarter of 2020. Thats according to a new report by ubs to help investors hedge against martin security. Its being called the fastest sustainable dividend grows the highest yielders include American Eagle and Restaurant Brands mike, i guess for any kind of shift in the dividend, you need that Sustainable Growth in the dividend for it not to be a value trap as it were. Interesting for some of these stocks like citi, perhaps the biggest factor is management decision of how much theyre going to switch out of buybacks and dividends as opposed to the fundamentals of the company. Its very true and the business just keeps kicking off capital they cant deploy elsewhere. History does show that Dividend Growth is a pretty reliable performance strategy over very long spans of time as opposed to just buying the highest yielders i think it shows you that the client base of wall street constantly craves income ideas. Another name that was in this report is Huntington Ingles industries, which is the Largest Military ship builder in the country. We had the ceo on cnbc yesterday. Defense games or the industrials more broadly, is there stuff that you like there, especially when we are having a conversation about dividends, payers, reliable dividend payers morgan, all of the above. I mentioned earlier that we like industrials. As a sub industry of the industrial sector, defense looks particularly interesting obviously Defense Budgets are expanding both here in the United States and by encourage according to President Trump in nato and elsewhere around the world. As a consequence of that, i think theres a longterm runway associated with that unfortunately, the names are pretty rich from a valuation standpoint, the classics like lock heed and so on. So that is an option as an alternative, to kind of have your cake and eat it, too. So i like it for that reason. Let me throw out on that list, they had bank of new york mellon and to me, this is a name that we almost never talk about gigantic bank, 30 trillion in assets, but the crown joul is per shing. And that now becomes the only ria cuss stowed yoan thats not going to be competing about its clients. It is not doing a directtoconsumer and i think that youre going to see that side of bank of new york mellon get played out more. You make money on trades, you make money on lending and stock lean a lot of pays to get paid for bank of new york mellon through the subsidiary and i think that subsidiary is going to be on fire as trillions of dollars come up for grabs. So 2. 5 yield on this name its about a 12 multiple much cheaper than most of the names on there because its a bank. Its not really a bank. Its an Asset Management company and a scustodian. Its a financial utility. It used to be really high multiple businesses, they traded at a premium but low yields dont help them at all and theyve had some execution. And i get your point in terms of its relative its done nothing. And charlie shaf, it wasnt a great performance and it kind of is glossed over in terms of when he took the wells fargo job. It seems as if the job wasnt perhaps complete before he left. New ceo, new attitude a lot of the business divisions. I think its worth keeping an eye on and if you like cheap stocks that are growing dividends thats on this ubs list, i think its a worthy name. Thank you for joining us. Josh is going to stick around. Im never leaving hopefully slack will deliver for him because we know josh is a shareholder. Up next, slack shares have been slumping find out if its latest quarterly reltcajusrthesus n mpta t stock. I basically said the same thing twice. Were back in 90 seconds [grunting] keep going, keep going. [maniacal laughter] gold right, uh. Thank you, for that, bob. But i think its time we go with gbtc. Its bitcoin exposure through a traditional investment account. Nice rock. Its time to drop gold. Go digital. Go grayscale. Lets get over to mike. Take a look at the valuation here were kind of looking for perhaps what the correct frontier is for the level of the price earnings before the s p 500. This is a simplistic way of looking at valuation, but it does show you over the last ten years we have nudged up against the highest. We always point out, were about 18, a little under 18 right now on a forward basis this right here was when the market was anticipating the tax cut wind faul that the analysts had not yet put into the numbers. I would say the trailing multiple is about 20 when pull markets get to 20 times trailing earnings for the first time they tend to not fall apart right away its kind of late in the game. You have to mute your longer term expectations. Heres a chart that goes the gap Earnings Growth for the s p 500, year over year we always look at operating. Its adjusted, it backs out all the writedowns. And you see in the latest look were down 6 year over year in gap bottom line oldfashioned accountingbased earnings. We did that in 201112 and 201516. It shows you theres a margin between what we report as slight Earnings Growth and the bottom line again, late in a bull market they start to die verge. The wall street journal reported that the s p has had negative performance in the last quarter. I guess we always think about these things with regard to bond rates remain low weve seen a pick up in multiples for theeuropean markets as well. So the s p has always been richer than europe in the last decade theyve both picked up together, so the argument is not being stretched. And the overall valuation is driven by the very large stocks. I think i looked earlier this week and a third of the index is under 15 times earnings. So its a pretty wide divergence. I see were going with a hide and seek theme here with your charts. Kind of looking for things, losing things. Up next, slack results set to hit the tape any minute. Instant analysis to those numbers coming ahead and later, an exodus at expedia. Well speak with a management expert about the big changes at the company and the chairman Barry Dillers strategy. Stocks closed about a half a percent fothr e dow, a little bit more for the nasdaq and s p. 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. Welcome, slack numbers are out. Hi, dee. Slack reporting a loss of two Cents Per Share on revenue of 168. 7 million that is a beat on both the top and bottom lines, and loss of eight Cents Per Share was expected also, slack is announcing a change to its board of directors. It is appointing michael mcna mar ra to the board. Shares are falling 2. 5 in the after hours. They were down as much as 4. 5 revenue and loss outlook for the Fourth Quarter is in line with expectations the call kicks off at 5 00 eastern. Were hoping to here more about the board changes. Also the daily active users as it competes in this environment with Microsoft Teams your initial reaction the board change makes sense. I think he made more sense when a company is earlier staged and more venture back than Public Market back and thats clearly not the case anymore so im fine with that. This is a company thats expected to see Revenue Growth 51 in the next year and then 38 in the following year. Thats the consensus guidance is going to be critical the other thing people are going to be looking at, last quarter when they reported, paid customers jumped 40 theyre going to have to put up a big number in paid customers theres no question that the service is wildly popular and engagement is higher than any competing services the big question is, how many premium users actually made the leap and start paying at an enterprise level so i think those are the things that the street is going to want to see and hopefully they deliver on those metrics. Lets bring in dan romanov for more in the numbers came in in line, why are they down . Thanks for having me. And i think that youve got a high growth stock here, right . So its not really okay to just sort of hit numbers. You have to come in and deliver better than that you have to be clean and you have to have a good outlook. And all of a sudden youre making a board change here, which again, i havent really seen whats going on exactly so im going to want to hear about that on the call that could be one reason thats not a perfectly clean result dan, looking at some of your past commentary, you felt that managements expectations were too high in the past this time around, theyve beaten what consensus estimates were for the quarter. So youre a little surprised to see the stock slip they beat last quarter, too lets be clear it was guidance the street didnt like. Fair point. Dan, whats your take . I think thats correct. They had a nice quarter in terms of metrics and results last quarter. This quarter sounds like its good as well, so i think the street wants to see guidance being bumped up and guiding in line is perhaps not what were looking for. What are the key things you look out for in the year ahead here is it all about the headlines that microsoft is currently managing to get and thats distracting people from slack . I think thats a factor but dan nails it if youre going to come public and sell 20 times revenue or sell 18 times enterprise value, well, then youve got to put up huge growth numbers. And that is not what they have been doing theyve been meeting the number, theyve been gently massaging guidance up or down. Thats not going to work now, you could argue theres a 38. 5 stock and now its 20 so you could argue some of the froth of the expectations have already come out but i dont think the stock can bottom until they can demonstrate that things are back on the upswing and well see what they have to say on the call i think the number is great. Thats fine. I dont know if its good enough for where the stock is right now and guidance is going to be what determines whether it opens tomorrow and what the Analyst Community does she love it at 38, they hated it at 22. To that point, mike, slack ipo price was 26. Its trading at 21 now. Its down 30 over the last three months. Direct listing price. Thank you. You list, you have a brand name, a pretty big market value, and mostly its to get liquidity to the sellers im interesting to see how it trades into a new calendar year. I dont think its all about tax motivated selling or anything like that. But this is a thing that had to find the correct hands to be in. Just being this kind of secular story and its going to be on everybodys screen who has a job for a long period of time, that hasnt been enough to get the stock. Well leave the discussion there. Thanks very much for joining us. And dont miss slacks ceo on tomorrow barry diller is the man in charge, could this be the turnaround the stock has been waiting for . Ckmel discuss when they co ba yes im stuck in the middle with you, and im wondering what it is i should do, its so hard to keep this smile from my face, losing control, yeah, im all over the place, clowns to the left of me, jokers to the right, here i am, stuck in the middle with you no one likes to feel stuck, boxed in, or held back. Especially by something thats supposed to do the opposite like your cloud. Its a problem. But the ibm cloud is different. Its open and flexible enough to manage all your apps and data securely, anywhere, across all your clouds. So it can help businesses take on anything from rebooking flights on the fly, to restocking shelves on demand, without getting in your way. [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. It is time for an update from sue herera. Hello, everyone heres whats happening at this hour bankrupt airline is balling about 1. 4 million drivers side inflaters in the u. S. Because they could explode the recall covers bmb, honda, toyota and mitsubishi made from 1995 to 2000 bmw is telling owners of its older 3 series cars not to drive them George Zimmer man is suing nor damages in the Trayvon Martin case its claiming civil onspiracy, and defamation zimmerman was found not guilty of killing Trayvon Martin in 2012 former pitcher jack wheeler has agreed to a fiveyear 118 Million Contract with the Philadelphia Phillies according to multiple reports. Wheeler has won a hotel of 44 games in its Major League Career and believe it or not, space beer is becoming the new frontier an highser bush has been sending barly seeds to the International Space station. This to be the first beer on mars spacexs up coming reply mission will carry the next step in the brewerys equipment and experiment thats right up your alley, morgan. I have been totally following the story. Im glad that you shared it today. Its a great story. I think its fantastic. Because it makes it tastier or just i think theyre just seeing the fact that all of these private companies and Public Companies are in the space race and eventually we will probably be living on another planet and they want their foot hold in it. You know that we cant have life on a planet if theres no beer i get it. Totally. Thank you. You got it. Rh earnings are out and meg has the numbers. Its a b for rh in the earnings on an adjusted basis, 279 per share, versus an estimate of 2. 23 revenue just about in line 667 million on an adjusted basis compared with 660 million was an estimate. The company is saying that its raising its guidance for the fourth time this year but that guidance basically just in korch operates the beat for the Third Quarter. Additionally in the press release, the company is making commentary about china tariffs saying that they dont expect them to cause them not to achieve their financial goals. And theyve implemented price increases where necessary with little to no impact on their business that was something analysts were watching closely shares are flat, slightly down after hours. Back to you. Great second half of the year. They have lots of physical retail and catalog retail. Its been amazing run. They bought back almost half the company the last couple of years through leverage buyback so its working right now. I just think its pretty high stakes in terms of how the stock trades once we get the numbers for the holiday. Csuite shakeup at expedia group, the ceo and cfo both resigning. Barry diller said in part, quote, ultimately Senior Management and the board disagreed on strategy. The board disagreed with the nearterm outlook as well as the did departing leaderships vision for growth. Strongly believing the company can accelerate growth in 2020. The divergence necessitated a change in management. Lets bring in senior associate at yale school of management very good afternoon to you good to see you, jeff. Good afternoon. So whats your take on this and how rare is it in this sort of modern age to see such a sort of ruthless execution without necessarily knowing what comes next great twist of phrase youre right, it is an execution and how silly of me to say hello, how are you were both doing a lot better than all the turmoil in tech land theres a lot of trouble in tech land and this is an odd execution. Why did they need to fire these guys, sort of kill them at sunset like this unless there was some gross incompetence or some gross misconduct, and nobody is alleging that here but to drive the ceo and cfo out at once is pretty strange with no succession lined up and to use as the explanation we didnt like their strategy for one quarter. The board hadnt signed off on this and the guy who was running most of the business had just been pushed out two months ago. Its hard to see what theyre doing here and barry diller parachutes in here and who am i to criticize a multibillionaire. But if he knew what to do with this business, why did he sell it out of iac . He held it for three years and they cast it out this way. I think theyre lost and i dont think they know what to do with this business. A 78yearold is not incapable of figuring out new things i think joe biden, nancy pelosi, President Trump, and i think that bernie sanders, that theyve got a lot to offer despite their age, but i cant see what barry diller is going to be bringing to this business right now. Who would bring something to the business who do you think could come in and replace the team thats been ousted today i think we should figure out how to consolidate the businesses i would ask you both, i bet your lives on this, that you couldnt tell me right now when you would use trovhotel. Com or cars. Com or trivaguey one versus another its an alphabet soup. Theyre all stapled together at least the ceo and cfo were trying to unify a tech platform and maybe these brands need to be consolidated. And i would swear that anyone watching the show would swear trip adviser is one of them, when in fact theres a competitor they need to consolidate and sell this business to somebody microsoft was smart to sell it years ago. So jeff, it sounds like youre pretty critical of this move by mr. Diller. I am, exactly. How long should he stay in the executive role does he need to act quickly to find someone else . Whats your view on that well, i cant see that hes going to be moving out to seattle to live there. They just moved their fancy headquarters from bell view to fancier headquarters to the waterfront of seattle downtown and i cant see hes going to want to be spending his time there. Theyll elevated two people from the inside, which is interesting in just when morgan asked who should a successor be, it looks like theyre lining up somebody as the cfo who was just the chief Strategy Officer if the strategy was so failed, why did they elevate this guy . And another person theyve given a president of business style business, before she was a president of business solutions. Who knows the difference between all of that . And i see the analysts are saying theres execution risks execution risks . That would be lucky. Theres a vision nobody is going to take any risks until they know who is in charge but theres no vision to execute. Jeff, weve got to get your thoughts on the ceo of alphabet in addition to google stepping aside. If theyre looking for a scapegoat, somebody to blame, i think that brennan and page are honorable guys and brilliant guys im friends with larry paige who wouldnt be friends with somebody who has 60 million but all their businesses i cant see theyve got problems of antitrust issues, privacy issues of course the Digital Advertising business is slowing for them they are creating a great threat theyre cutting into the seo model that was ex speed yas model. Hes a smart engineer and hes got credibility. Theres nobody on the planet better for him than the job. But i do think youve got to worry about 46yearold guys that have 13 of the company and control 50 ownership. And thats not going to go away great to get your thoughts today. Thanks for joining us. Thanks, byebye. Up next, lastminute tax moves, the end of the year is quickly approaching and there are a few key things you can do to help benefit your money in a big way. Closing bell will be right back my parents never taught me anything about managing money. 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. Welcome back the end of the year is quickly approaching and there are a few key things you can do to help benefit your money in a big day. Sharon epperson is here with that. There are a few big changes this year. It may make it a little harder to find tax savings, but heres what you need to know. If you divorced in 2019, alimony payments can no longer be written off and unreimbursed medical expenses now must exceed 10 of your adjusted gross income to take the deduction if you dont have Health Insurance, the tax penalty has been eliminated. So the best way to cut your backs pill is to be proactive right now. Heres what you need to do selling losing investments in your taxable accounts by december 31st will help offset Capital Gains in your portfolio. And if you have an overall net capital loss, you can use up to 3,000 of that loss to offset ordinary income and roll the rest over. Small Business Owners can give themself a gift, buy the vehicle, furniture that you need and put it into service before december 31st. You could get a deduction of up to 1 million. And savers of course should match out their pretax 401 contributions. The 2019 max is 19,000 or 25,000 if youre 50 or older. And there are plenty for yearend tax tips. Go to cnbc. Com your money your future. Thank you so much up next, netflixs new vampire series is giving new meaning to faang socks. Well sit down and get a take on e streaming wars and new whiskey. Thats ahead 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. Most people think as a reliable phone company. But to businesses, were a reliable partner. We Keep Companies ready for whats next. man we weave security into their business. second man virtualize their operations. woman and build ai customer experiences. second woman we also keep them ready for the next big opportunity. Like 5g. Almost all of the fortune 500 partner with us. woman when it comes to digital transformation. Verizon keeps business ready. The final installment of todays dashboard. Finding the good, thats what ceos are trying to help their investors. This is not a market based chart, but it is the frequency with which esg is discussed in Conference Calls this is from the jpmorgan report on investing, but it just shows you that its become more of a corporate priority, esg is environmenting, social and governance concerns. This says more than anything the nature of the investors that these companies have that are on these calls because they obviously are increasingly running assets according to these mandates to go to wellgfed environmentally and socially responsible companies but it shows a little bit of what we were saying, theyre going to deemphasize shareholder value as well. It really speaks to the trend. I know quickly its accelerating here mike, thank you. We have more details from rhs Earnings Release and meg has that for us. Morgan, well, rhceo Gary Friedman talking about wework in the form of a letter he writes as part of presenting the companys earnings, saying essentially, quote, that the view of Growth Without profitability has driven new concepts to launch as digitally native brands. He says chasing internet valuations from markets who have confused an online redill startup with a technology company. Its becoming clear that retail brands desperately need a store life line to survive as many are viending the variable cost of marketing an in visible store an unprofitable path to the future. Not sure why wework is coming up in the earnings, but saying they look the road less traveled and invested in physical stores. What to make of this . Wayfair i think hes basically kind of targeting this at the idea of wayfair was going to take over this world plus as a ceo hes had to answer the question to every analyst saying youre building these big beautiful palaces for Retail Locations and sending out catalogs thats not right for these times. And hes taking a victory lap has wayfair has come on harder times. Rent, using my word to describe it. Its a colorful character, but its interesting to see it because ideally you prove it with the numbers clearly theres been a bit of pain in the past and insecurity and its payback interesting details from meg that she found in the release. Up next, were going inside one of the key faang stocks, t netflix launching a new vampire show well discuss with the star, Ian Somerhalder after the break. Closing bell will be right back 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. Will it feel like the wheend of a journey . P working, or the beginning of something even better . When you prepare for retirement with pacific life, you can create a lifelong income. So you have the freedom to keep doing whatever is most meaningful to you. A reliable income that lets you retire, without retiring from life. Thats the power of pacific. Ask your financial professional about pacific life today. Welcome back the streaming wars and increased competition between platforms has been heating up and that means fierce competition for talent, joining us is one of those talents, Ian Somerhalder and director and producer of star of the new netflix stories v wars dropping tonight at midnight welcome. Thank you. Youve been in a number of hit tv shows whats it like working with netflix versus some of the other prior networks you know, its really been an exceptional and incredible experience because the Nonlinear Television is quite incredible youre just delivering all of these episodes, people are bingeing it and your story structure is different and the way you produce it is different. Its been an amazing journey, one i will never forget. Do you see working for streaming Service Different from a network or as the creator of the content its just about making the best show possible, kind of regardless of who is bought it from you its a much more nimble process. These are much Younger Companies with less corporate wit less corporate governance. Reid i know there is a lot of structure in the in netflix the biggest Entertainment Company in the world. Its more nimble with flexibility. Putting the power into the creator or the Creative Forces behind the show. Two contrasting things you sometime hear. One is that people worry about not being found on netflix depending how its served up on the other hand the data they have is helping you fine the audience have you put a lot of thought into how its delivered. Ive put a lot of thought into the algorithm is crazy process it knows how many eyelashes you have everything about it and its global we launch tonight at 3 01 00 a. M. Eastern time in 197 countries and more than this many languages. I guess the algorithm told you and netflix that vampire stories are where its at and you didnt want to pivot from that genre my team and my wife brought this up. That this was a fivebook series, tremendous amount of i. P. Graphic novels as a story reference. But the genre has so much more to tell. Ive learned a lot about the genre. I love this genre. And im excited to now come at it from a Creative Force behind a show directing pursuing and starring okay you create content and also creating a new bourbon brand as well. Tell us about that and what this process has been involving swl. Its amazing. Paul wesley and i wanted to do this for years we knew we didnt have time. I was getting married would have a child. We wanted to give this our all we also you know the salvatore brothers have a bourbon. Other than Alaina Gilbert and trying not to kill each other, the other thing we are famous for is Bourbon Damon was such a lush he drank at 7 in the morning. The corporate side we want to give back. Agriculture is a big thing for us i know from data that our Climate Crisis can be solved by regenerative agricultural practices. And we will be taking profits from the company and investing them into taking care of our soil and farmers through a movement called kiss the ground, a women that i executive produced with an amazing film maker. Its going to flip the agriculture system on its head and that is i want to drive the necessary initiative with for profit money. And hopefully creating a delicious whiskey in the process. We did that which maybe we can try at a later date sadly not ready yet but you made a wine in the past. Yes. I note for the wine it was focused on china initial zbla china first strategy, yeah. Is that the same for the whiskey, do you feel either way the brand image as a american product has been hurt with the trade wars is there any sign of that with the wine. The wine was swens. We were about to bottle in california and the tariffs came in. We ended up in chile a Free Trade Agreement between chile and china which was helpful. With the bourbon, no, because this is this is a spirit, american, this is this is whiskey, this is bourbon which isky its going to be global. We get to launch it in a fun way globally, paul and i were doing a series of launch parties all over the world and paul and i will be bartending the first say hour of the parties. Ala tom cruise and michael cane. The salvatore brothers behind a bar and slinging boushen we look forward to the show and the whiskey when it comes. Thank you for the time and for doing in. Biogen big moment, the companying reaching a key impasse on thelzim aheer drugs what to watch for when closing bell comes back no two patients are the same. Predicting the next step for them can be challenging. Today were using the ibm cloud to run new analytics tools that help us better predict and plan a patients recovery. Ultimately, its helping thousands of patients return home. And who doesnt love going home. We need a solution. Ut their phones down. Introducing. Smartdogs. The first dogs trained to train humans. Stopping drivers from liking. Selfieing. And whatever this is. Available to the public. Never. Smartdogs are not the answer. But geico has a simple tip. Turn on do not disturb while driving mode. Brought to you by geico. 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. Weve been growing very quickly the last couple of years. One of the things that were really excited about is the customers tell us over half of them are investing for the first time with robinhood. So its taking the market and really growing it substantially. That was robinhood coceos with jim cramer announcing more than 10 million subscribers. Dont miss the interview at 6 00 p. M. Eastern. Lookinged forward to that for huyer. We told you about the rh comments on wework we have wework news in its pef deedra bosa has it for us. Hey, wilf just issuing a press release say going opened a record 52 New Buildings . Cities across the world. With plans to open more by year end. If it sounds strange it reflects buildings and leases already in the pipeline when adam neumann with in the ceo. The strategy Going Forward as we report add few weeks ago including reducing cost and Slower Growth which you are likely to see over the next year or so. Wework saying it signed on more than 280 New Enterprise companies in the past 90 days. It doesnt name any however. Deedra, bosa thank you. A big day tomorrow, the opec mattheiu tomorrow. And aramco setting the final ipo price. Tiffany results kate rogers standing by with that. But a big movement for biogen releasing key Alzheimer Drug data. Biogen shocked investors and the Research Community at the end of the october when it said the thought to be failed Alzheimer Drug was not failed after. It they say it appeared to work to slow declines with alzheimers. Tomorrow is the first presentation of further analysis as a alzheimers conference. They say the compelling presentation and confirmed plan to continue with approval. A mixed or information show could bring them down 10 . Back to you. Meg thanks for that. A preview now of tiffany kate rogers. Investors have been bullish on tiffany lately pushing it up 58 the past three months. Thanks in large part to lvmh confirming it will buy tiffany for 16 billion. The stock trading near alltime highs despite macroeconomic headwinds and slowdown in hong kong the company is expected to post a rise in Third Quarter comps and two straight quarters of declines but any look out the for comments on u. S. China trade talks. Remember they cut the outlike are look this year citing the tensions back to you. Thank you mike, quickly final thoughts. We always watch weekly unemployment claims on thursdays. I think well have to take a closer look given the soft adp jobs number this week. I want to focus on Brian Sullivan coverage this week all the driver of the market today out of time that does it for closing bell. Fast money now. Overlooking new yorks time square im carl quint nila. Tonights on fast oil prices posting the biggest gain in three months will the tomorrow opec meeting add more fuel . Well break it down. Tesla up against service gain for the customers why owners of the original road roadster may not be left in the dust. Shares in slack and company. Rhp how do you trade these. We start with the rebound, the major averaging finally shaking off th